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.
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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102126893 : Recently, there was a major management change. Let's take another look