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MBSB – lower returns as an Islamic bank

Before becoming an Islamic banking group in 2017, MBSB was mainly a property financier. This changed with the acquisition of Asian Finance Bank in 2017 as this propelled MBSB into Malaysia’s second-largest standalone Islamic Bank.
But as can be seen from the return charts, this also resulted in reducing its returns from both the ROE and ROA perspective.
MBSB – lower returns as an Islamic bank
Of course this was the combination of lower bottom line with more assets and equity. The point is that if you were a shareholder prior to the transformation, you got lower returns. This is not exactly exciting news for MBSB shareholders.
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