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BackAug 14, 2014
Type Announcement
Subject OTHERS
Description Economic Profit and Loss Statement for the period ended 30 June 2014

Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for the period ended 30 June 2014.

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE PERIOD ENDED 30 JUNE 2014

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 2014=1.396

4th Quarter 2013=1.414

2nd Quarter 2013=1.400


(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 2014=4.113%

At 31 December 2013=3.765%

At 30 June 2013=3.700%

(iv) The market risk premium is assumed at 4.76%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1

30 Jun 2014

6months (Unaudited) RM’000

 

 

31 Dec 2013

12 months    (Audited) RM’000

Group profit after taxation

429,589

 

 

597,568

Less: Cost of capital employed

(167,174)

 

 

(216,183)

Economic profit

262,415

 

 

381,385

This announcement is dated 14 August 2014.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name MBSB    
Date Announced 14 Aug 2014  
Category General Announcement
Reference No MB-140814-44790