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BackJul 31, 2013
Type Announcement
Subject OTHERS
Description Economic Profit and Loss Statement for the year ended 30 June 2013
Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for the period ended 30 June 2013

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed. The economic profit and loss statement set out in Table 1 is disclosed on a voluntary basis.

The assumptions used in computing the economic profit/loss are set out below:

(i) The cost of equity is calculated based on the following formula:

Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate

(ii) The Beta used in the calculation is the 5 years adjusted Bloomberg Rate:

Quarterly Period Beta
2nd Quarter 2013=1.400

4th Quarter 2012=1.510
2nd Quarter 2012=1.510

(iii)The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:

Risk Free Rate
At 30 June 2013=3.700%
At 31 December 2012=3.490%
At 30 June 2012=3.480%

(iv) The market risk premium is assumed at 6.01%, which represents the market return in excess of the return earned on risk free asset.


TABLE 1
30 Jun 2013 6 months (Unaudited) RM’000
31 Dec 2012 12 months (Audited) RM’000
Group profit after taxation 331,299 446,651
Less: Cost of capital employed (105,495) (199,935)
Economic profit 225,804 246,716

This announcement is dated 31 July 2013.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name MBSB    
Date Announced 31 Jul 2013  
Category General Announcement
Reference No MB-130731-35698