GOMBAK: Malaysia Building Society Bhd (MBSB) sees more growth opportunities in affordable housing this year, which will boost its project financing for the sector close to RM1.9 billion.
This in a way defies analysts’ prediction as the bank expects its merger with Asian Finance Bank Bhd (AFB) to contribute to the earnings this year, some of which will come from Islamic financing for affordable housing.
Its merger with AFB would result in it becoming a full-fledged Islamic bank.
Some research houses forecasted that the RM644.95 million merger will only contribute to MBSB’s earnings two years after it is completed, estimated to be on February 7.
MBSB chief executive officer Datuk Seri Ahmad Zaini Othman said the bank sees its merger with AFB to be positive to the earnings this year and will contribute to its full-year profitability in 2019.
“That (earnings will come in two years after the merger completion) is not quite true. We will put in more products under the banking platform which we did not have in the past,” he said at the official signing ceremony between the bank and Hektar Aneka here for Federal Territories Affordable Housing scheme (Rumawip) project.
“On our profitability, we see that the impairment loss is also over this year, so MBSB should be a ‘clean’ entity,” he added.
On affordable housing, he said, the bank will finance another eight more Rumawip projects with financing facilities of RM700 million.
“Whenever we look at projects or any development, we will look at their marketability. Like in Rumawip projects, they fall under the affordable range. We think the market is going to be good, there will be enough take-up rates and everybody will be qualified for the loans.
“We will not finance any development if we think the market is going to be weak. For Rumawip projects, we are also looking at end financing for home buyers. It is a package deal,” he said.
MBSB has so far financed nine Rumawip projects with total approved facilities amounting to RM1.17 billion.
Zaini said MBSB will be the sole financier for the ninth Rumawip project, to be developed by Hektar Aneka Sdn Bhd, with Islamic financing facility amounting to RM161.345 million.
“This collaboration with Hektar Aneka is very much in line with our increase in business focus for the affordable housing segment,” he added.
Hektar Aneka will be contributing 2,400 units to the Rumawip scheme once its condominium project, Residensi Hektar is completed in three years’ time.
project, situated next to the Pasar Besar Gombak along Jalan Gombak and to be built on Malay Reserve Land is now opened for registration to eligible parties, individuals or married couples.