Malaysia Building Society Bhd (MBSB) achieved a record pre-tax profit of RM135 million for the first nine months in 2010, an increase of 53 per cent from RM88 million in the same period last year.

'Our group's improved performance for the nine months of 2010 is in line with current business strategies on retail products undertaken,' said chief executive officer Datuk Ahmad Zaini Othman.

This contributed to improved net earnings per share of 19.0 sen and annualised return on equity of 34 per cent, MBSB said in a filing to Bursa Malaysia today.

On a quarterly basis, however, the group recorded a lower pre-tax profit of RM42.3 million for the third quarter as compared to the second quarter pre-tax profit of RM49.5 million due to loan loss allowance made for impaired loans.

'The sustainability of our profit for the current quarter is due to the right strategies adopted in taking MBSB to the next level,' Ahmad Zaini said.

'Commitment and hard work from our staff and continued support from our business associates are our greater strength in sustaining the profitability,' he said.

As at Sept 30, 2010, net loan, advances and financing stood at RM10.5 billion, an increase of 30 per cent from RM8.1 billion as at Dec 31, 2009.

Ahmad Zaini said expansion of the personal financing sector was the main reason for the impressive growth.

MBSB, he said, would continue to provide funding to the civil servants at reasonable costs. -- Bernama