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MBSB Announces Financial Period Ended 3rd Quarter 2007 Headline Kpis And Economic Profit/loss.

BackOct 31, 2007

Malaysia Building Society Berhad ("the Company') wishes to announce its headline Key Performance Indicators ("KPIs") and economic profit for the third quarter ended 30 September 2007. Please be informed that the information is disclosed on a voluntary basis.

1. ECONOMIC PROFIT AND LOSS STATEMENT

Economic profit or loss is amount earned for a period by a business after deducting the operating expenses and a charge for the opportunity cost of capital employed.

2nd QTR 2007
3rd QTR 2007
RM ‘000
RM ‘000
Profit after taxation (Group)
19,675
25,053
Less: Cost of capital employed
(22,571)
(33,945)
Economic Profit/ loss
(2,896)
(8,892)
The Economic Loss is higher as compared to the 2nd Quarter 2007 due to lower profit growth registered in the 3rd Quarter 2007 compared to the previous quarter.


2. THE HEADLINE KPIs

The headline KPIs represents the corporate targets or aspirations set by the Company and should not construe as being forecast. The financial period ended 30 September 2007 performances are as follows:
Headline KPIs
TARGET
ACTUAL
Variance
FY 2007 KPI
3rd Quarter 2007
(Annualized)
Return on Equity ("ROE")
7%
7.76%
0.76%
Revenue Growth
15%
14.95%
-0.05%
Retail Loans Growth
25%
28.73%
3.75%


2.1 Return on Equity
For the financial period ended 30 September 2007, the Group managed to post pretax profit of RM25.130 million which was resulted higher average Return on Equity.

2.2 Revenue Growth

The revenue posted slightly lower growth of 14.95% against target of 15%.

2.3 Retail Loan Growth

In terms of retail loans growth, the Company has surpassed its 3rd Quarter 2007 KPIs for retail loan growth of 28.73% against target of 25%.