Tuesday, May 15, 2012

MIDF Maintains 'Neutral' Call On MBSB Due To Limited Upside Potential

Source From (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=666055

Published: Monday May 14, 2012 17:56 PM

KUALA LUMPUR, May 14 (Bernama) -- MIDF Research Sdn Bhd has maintained its "neutral" call on the Malaysia Building Society Bhd (MBSB) due to the limited upside potential from the current share price.

"We make no adjustment to our forecast as earnings are within expectations," it said.

MBSB's net profit was higher year-on-year but dropped on a quarterly basis.

"The increase in yearly basis is due to higher income from Islamic banking operations as a result of personal loans expansion," it said in a research note.

MIDF said MBSB's non-interest income for the first quarter financial year 2012 was lower by 6.7 per cent quarter-on-quarter to RM28 million due to lower fee income as a result of promotional transfer packages for personal loans disbursed in the quarter under review.

-- BERNAMA

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