Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
MBSB Bhd, the financial holding company for MBSB Bank Bhd and Malaysian Industrial Development Finance Bhd (MIDF), reported a significant 34.5% drop in its net profit for the second quarter ended June 30, 2024 (2QFY2024). The company’s net profit fell to RM54.83 million from RM83.7 million in the same period last year, primarily due to increased operating expenses (opex) and higher impairment allowances.
Key Points:
Increased Costs and Impairments: MBSB's operating expenses rose to RM241.7 million in 2QFY2024, while impairment allowances surged to RM98.5 million. The higher impairment allowances were particularly notable, especially following significant write-backs in the previous quarter (1QFY2024). This led to a reduction in earnings per share, which dropped to 0.67 sen from 1.17 sen in 2QFY2023.
Revenue Growth: Despite the drop in net profit, MBSB's quarterly revenue grew by 35% to RM960.85 million, up from RM711.53 million a year earlier. This increase was driven by higher financing income and contributions from the integration of MIDF. Pre-impairment net income also saw a substantial rise, jumping 53.2% to RM435.92 million from RM284.57 million.
First Half Performance: For the first half of FY2024 (1HFY2024), MBSB's net profit fell 15.6% to RM133.17 million from RM157.82 million in 1HFY2023. However, revenue for the same period increased by 34.7% to RM1.85 billion, reflecting the strong income growth despite the profit decline.
Strategic Focus and Outlook: Looking forward, MBSB plans to focus on raising current accounts and savings accounts (CASA) levels to improve funding costs. Following the completion of the MIDF acquisition in October 2023, the group aims to leverage synergies with MIDF to enhance service offerings, particularly targeting small and medium enterprises (SMEs) and retail customers in the mass affluent segment. The strategy will emphasize continuous improvements in digitalization to streamline banking operations for customers.
Stock Performance: MBSB’s shares remained unchanged at 84 sen on Tuesday, giving the company a market value of RM6.91 billion. The stock has gained 18.31% year-to-date, reflecting positive market sentiment despite the recent profit decline.
In summary, while MBSB faced challenges with higher costs and impairments leading to a drop in net profit for 2QFY2024, the company continues to grow its revenue and is focused on leveraging its recent acquisition of MIDF to drive future growth, particularly through enhanced digitalization and improved customer service.
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