Posted: 08 Jan 2010 07:37 PM PST

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) aims to disburse RM3bil in personal finance this financial year ending Dec 31.

Personal finance sales and marketing head Azman Aziz said the target was achievable going by the phenomenal response to the companys personal finance business, which recorded RM1.4bil last year.

The company currently has 50,000 personal finance account holders.

Our personal finance business started slow in the first three months of last year but with the change in top management, MBSB was able to grow its business quickly in the remaining nine months to register record growth, he said.

Azwan was speaking to reporters after the launch of the companys MBSB PF-1 Bonus Berganda Contest 2010 yesterday.

The personal finance division currently contributes about 30% of MBSBs total business while the balance 70% comes from home mortgages.

Azman said MBSBs core business would remain in home mortgages but the company aimed to grow its personal finance business as well.

The personal finance business holds good growth potential as there are over 1.5 million civil servants. We have only scratched the surface. Currently, we have about RM150mil in disbursements per month, he said.

On its strategy to achieve the RM3bil target, Azman said MBSB planned to strengthen its distribution channels and beef up its sales force.

Last year, we targeted our personal finance products to specific groups such as the police force, teachers, our staff and civil servants, he said.

Azman said that this year, MBSB would continue to target specific groups, including civil servants and the private sector.

On its latest personal finance product, he said the package was highly competitive, offering 4.9% interest rate per annum for individuals taking out a facility of 15 years and 4.2% interest rate for loans of 20 years.

The personal finance taken out by an individual can range from RM3,000 to RM200,000, depending on the applicants salary.

Azman said MBSB had aggressively gone into the personal finance market to help individuals access funds, in part due to the governments call to focus on the well-being of the people, especially those in the low-income bracket.

MBSB : [Stock Watch] [News]

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MBSB to disburse RM3b personal financing (Sabah Daily Express)

Posted: 09 Jan 2010 12:25 AM PST

Kuala Lumpur: Malaysia Building Society Bhd (MBSB), a government-linked company, expects to disburse RM3 billion through its personal financing division this year.

Its chief financial officer Tang Yow Sai said the target was set after the division had succeeded in meeting its last year's target of RM1 billion.

"We managed to break the target by recording RM1.1 billion in disbursement last year," he told reporters after launching MBSB's "Bonus Berganda" Contest 2010. "The reason for the higher expectation is that starting from this year, we are trying to diversify the areas of disbursement," he said.

MBSB, which currently offers personal financing to government servants only, is going to extend the programme to selected government-linked companies, statutory bodies and public-listed companies, Tang said.

Assistant general manager of the personal financing division, Azman Aziz, said the company had focused in offering loans to the police force, Health Ministry staff and teachers last year.

Asked whether the latest target was achievable, he said it was possible as the company was increasing its sales distribution force and MBSB was also trying to take over some cooperatives and companies currently involved in providing personal financing to government agencies.

"The target this year might be a high jump from last year but still our market share is very small if compared to other personal loan providers," Azman said.

"Malaysia's monthly personal financing market's disbursement is RM1.7 billion and our distribution monthly is an average of RM150 million," he said MBSB expects to manage 150,000 government servant accounts this year, an increase of 100,000 accounts from the current 50,000 under its management, Azman said. - Bernama

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17. MBSB aims to give out RM3bil in personal finance (The Star)

Posted: 08 Jan 2010 04:05 PM PST