Email This Print This News

Others

BackFeb 24, 2016
Type Announcement
Subject OTHERS
Description
Economic Profit and Loss Statement for the year ended 31 December 2015

Malaysia Building Society Berhad ("MBSB" or "the Company") would like to announce its Economic Profit and Loss Statement for the year ended 31 December 2015.

ECONOMIC PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

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=1.40

4th Quarter 2014=1.26

2nd Quarter 2015=0.92

4th Quarter 2015=1.13


(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=3.70%

At 31 December 2014=3.92%

At 30 June 2015=3.87%

At 31 December 2015=4.14%

(iv) The market risk premium is assumed at 5.63%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1

31 Dec 2015                     12 months (Unaudited) RM’000

 

31 Dec 2014     12 months    (Audited) RM’000

Group profit after taxation

257,592

 

1,015,029

Less: Cost of capital employed

(501,310)

 

(396,698)

Economic (loss)/profit

(243,718)

 

618,331

This announcement is dated 24 February 2016. 





Announcement Info

Company Name MALAYSIA BUILDING SOCIETY BERHAD
Stock Name MBSB
Date Announced 24 Feb 2016
Category General Announcement for PLC
Reference Number GA1-24022016-00145