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BackFeb 16, 2015
Type Announcement
Subject OTHERS
Description Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for the year ended 31 December 2014.

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 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
4th Quarter 2013=1.41

2nd Quarter 2013=1.40

4th Quarter 2014=1.26


(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 31 December 2013=3.77%

At 30 June 2013=3.70%

At 31 December 2014=3.92%

 

(iv) The market risk premium is assumed at 6.07%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1

31 Dec 2014 

12 months (Audited) RM’000

31 Dec 2013    

12 months   

 (Audited) RM’000

Group profit after taxation

1,015,029

597,568

Less: Cost of capital employed

(396,698)

(216,183)

Economic profit

618,331

381,385

This announcement is dated 16 February 2015.

 


Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD  
Stock Name MBSB    
Date Announced 16 Feb 2015  
Category General Announcement
Reference No MB-150216-52166