MBSB BANK (1171) THE UPCOMING ISLAMIC BANK WITH EDGE & POTENTIAL, Calvin Tan Research

Bimb?

I asked Encik Hanifi, the Branch Manager of Mbsb Bank today whether investing in Bimb Bank better or Mbsb Bank better

This was how he replied

"Why invest in an old man like bimb when it is so grown up. Invest in the youth of mbsb Bank before it blooms"

2019-08-30 00:05

cheoky

there is a reason encik umur 45+ is still only a branch manager. not the ceo.

aggressive lending is a time bomb.

2019-08-30 00:20

Yes, MBSB is trading below its book value. Many big listed Chinese banks in Hong Kong are trading below their boik values.

OTOH PBB and HLB are trading above their book values.

The question calvin did not answer is, why is MBSB trading below its book value? He has written so many lines on MBSB but failed in answering the mist obvious ans important question.

:-)

2019-08-30 07:34

There was a time in i3 forum
People in hengyuan forum were talking about crack spread in oil refining margin

THE game changer for mbsb to Mbsb Bank is the

Interest spread secret weapon to profits

Last time the borrowing cost was from Tier One Banks through Bank Negara guidance and instructions. The rate of borrowed funds was about 3% cost

Now that it is a full Islamic bank it can collect deposits directly from the Malaysian Public

THE Pool of monies drawn in by promotion of lucky draws are

1. FD rate 3.8% yearly rate
2. Savings Acc.. 1.5%

Now the cost of capital is as low as 1.5%

Imagine the interest rate spread from 1.5% to 7%
The differential gain will balloon up to 5.5%

If loan tenure is 30 years then it will be

30x5.5%

Think of the wonder of compounding which is the 8th wonder of the world according to Albert Einstein

2019-08-30 08:40

Why 3iii always look at the rear mirror while driving

Mbsb trades below book value was history

It's cost of funds was 3% last time

So it has to loan out at higher interest of 6% to 7%

How to compete with Tier One bank like public, Hong leong, Rhb or maybank which gave out loans at 4.2% to 5.5% then?

Now the game changer is the acquisition of Asia Finance Bank

As such its cost of funding is the same level playing field like public or maybank

So now it can really compete

2019-08-30 10:06

A banking license in Malaysia is like a passport to print money

There is the highest barrier to entry unlike selling milk by dutchlady

Any Tom, Dick or Harry can start a milk factory or import milk product or in the case of Taiwan milk tea that mushroom everywhere

BUT a banking license not only has a high barrier to entry

THE door is shut tight by bank negara

AND Malaysian authority comes down hard on any illegal money deposit agency by giving huge fines or send violates to jail

So Mbsb Bank has joined the elite club

Banks and finance are at the forefront of monetary growth

Berkshire has a bank in Wells fargo

AND Financial centers like new York, London, Singapore are some of the wealthiest places

2019-08-30 10:13

SDNBHD

hhahaaha stu[id write up ... make comparison between msbs and pbb.

2019-08-30 10:20

Of course now that public bank is so popular the price is reflected as such

BUT public bank was a different story in year 1998 when it was only 80 sen due to the Asian Financial crisis

AT that bleak time only 3 were supported

Ttm every day

Ttm stands for

T = Telekom
T = Tenaga
M = Maybank

Those who had lived through that time knew Govt only supported maybank while out of 49 financial institutions more than 40 failed or were taken over

Not many people dare to buy public bank even at 80 at that time

Even maybank with all the support was sold down to Rm2. 50

2019-08-30 10:25

Post removed.Why?

2019-08-30 10:32

Hahaha

Same was said when Calvin bought rcecap at 27.5 sen

Naysayers caused sell down in rcecap because they thought Govt servants borrowed less from rcecap

As it turned out Calvin bought rcecap at the bottom and made 100% chun chun

2019-08-30 10:44

A misunderstood overlooked gem like mbsb Bank with changing fundamental is another great discovery by Calvin Tan Research

2019-08-30 10:46

SDNBHD

Calvin Tan research is trash. crap ! useless. kinder garden kid's write up puik...geli

2019-08-30 15:20

SDNBHD

MBSB is hidden trash. better dont dig it out. forever not breaching 1.50! take my word. im SDNBHD!

2019-08-30 15:24

Produce all your reason here if you can proof differently

Last time hjey condemned pm corp
After pm Corp gave 8 sen cash payout he disappeared

2019-08-30 15:44

ITreeinvestor

>>

what if most of the cost is from fd?
from 3% to 3.8%

>>
THE Pool of monies drawn in by promotion of lucky draws are

1. FD rate 3.8% yearly rate
2. Savings Acc.. 1.5%

Now the cost of capital is as low as 1.5%

Imagine the interest rate spread from 1.5% to 7%
The differential gain will balloon up to 5.5%

2019-08-30 16:25

ITreeinvestor

in fact if you look at recently operating income/revenue, it is going down from 45% to 41%

2019-08-30 16:28

Good latest quarter results just out

Revenue, profits and Nta all 3 up in unison

Clap
Clap
Clap

2019-08-30 19:01

Calvin has not enlighten us why this financial institution is trading at below its book value.

2019-08-31 08:29

A P/B ratio less than one is seen as buying opportunity by some market participants.

But, MANY a time, it also suggests that the company is earning weak or negative returns on its assets, or the assets are overstated.

2019-08-31 08:45

Post removed.Why?

2019-08-31 08:51

stockraider

Value wise and appreciation potential is very much higher than PBB loh..!!

MBSB has margin of safety PBB has none loh...!!

U buy on fundamental undervalue MBSB compare to u invest on overvalue PBB based on brand loh....!!

Value investor invest chose invest base on fundamental undervalue the foundation of all value investment mah...!!

Posted by 3iii > Aug 31, 2019 8:45 AM | Report Abuse

A P/B ratio less than one is seen as buying opportunity by some market participants.

But, MANY a time, it also suggests that the company is earning weak or negative returns on its assets, or the assets are overstated.

Posted by 3iii > Aug 31, 2019 8:51 AM | Report Abuse

Of course, the price-to-book ratio is only one of many things to consider when picking bank stocks. Investors must also consider the timeline for greater profitability to support higher values.

2019-08-31 12:04

Investors must consider the time line for greater profitability

Think of mbsb before securing a full fledged deposit taking license and AFTER a deposit collecting license

THE cost of capital before was high

THE cost of capital is low now

AND that makes all the difference to a better future!

THE game changer that makes mbsb Bank outstanding and outshining now

2019-08-31 13:26

Warren Buffet said don't drive a car looking at the rear view mirror

You cannot look at mbsb past years performance when it was working under unfavourable conditions

So you must look in front

THE years ahead

What will they bring

How will things unfold

Optimism is in the air!

EPF is bullish on mbsb bank

Directors are bullish on mbsb bank

A new dawn has come!!!

2019-08-31 13:29

Hi guys

Latest article in Focus Magazine put Mbsb Bank the newest top growing bank in Malaysia

Go get a copy of Focus Mag and read up mbsb bank potential

2019-08-31 20:36

Added Calvin tan mbsb stock selection to his portfolio list. Please advise which of the stocks in your followed lost that you are no longer into so I can edit and adjust your performance. If you have free time, also do advice the percentage of Holdings for each of your held stocks so we can understand your confidence level and belief in each stock.

2019-09-03 06:13

The portfolio list is here, with the data of his promotion.

https://klse.i3investor.com/servlets/pfs/123029.jsp

2019-09-03 06:14

If I may answer 3iii simple question for Calvin tan to educate him, when I look at Banks for investment I use this mental model as the basis. How many people give me money to borrow ( which determines how strong I am when there is a crisis), who and what forms of lending am I giving ( which determines how safe my loans are), and how high are my non performing loans ( which determines how much real income I actually make, as banks love to delay putting npl losses on their books as it affects profit and loss).

In mbsb case, their biggest customer group is the b40 segment. In latest quarterly financials, they are borrowing 20 billion for PERSONAL FINANCING, 9.9 billion for corporate loans and financing, 5.7 billion for property loans and mortgage financing and 208 million for auto financing. Basically the safest segments property and mortgage is only 5.7 while the riskiest segment is 20 billion.

20 billion in outstanding loans to b40 individuals for PERSONAL FINANCING. Does Calvin tan needs a dictionary to define what personal financing means? In times of crisis, how much of this 20 billion can we collateralise? What is the NPL ( borrowers run away, declare bankruptcy, or straight up not pay) for this 20 billion. Please just don't look at the profits, we need to look at the loan portfolio risk.

Then touch your heart and ask yourself sincerely, if a bank gives you fixed deposit rate of 3.8% and uses it for loans to this group instead of the corporate loans (like lending to topglove,ql,hartalega, Sunway, hapseng, etc), would you really feel comfortable putting money here instead of into backs like Hong Leong, Maybank and public Bank?

>>>>>>>>>>>

3iii Calvin has not enlighten us why this financial institution is trading at below its book value.
31/08/2019 8:29 AM

2019-09-03 06:39

On the non performing loans ration, as a comparison, mbsb is at 1.3%, while Hong Leong as an example is at 0.87%.

What did this mean? Taken as an example

Mbsb total 36 billion of loans, non performing is around 468 million every year. 1.3%

Hong leong total 137 billion of loans, non performance of 0.87% is around 1.19 billion.

Using the same ratio, if mbsb grew its b40 loan book ( which is almost impossible to grow further without increasing the NPL and seriously undermining the business).

If you think banks are a guaranteed pot of gold, I invite you to look at the list of defunct and BANKrupt banks in the history of Malaysia and Singapore, and the exact reasons as to what happened. The reason are all the same, foolhardy loans to foolhardy individuals done at greedy rates which exploded when they least expected it.

Good luck in your investing life Calvin.

2019-09-03 07:01

SEE WHAT i3 FORUM WRITEUP ON MBSB BANK

Business Background
Malaysia Building Society Bhd is a Malaysia-based company. The company operates through four major segments: a financing business, which grants loans on the security of freehold and leasehold properties and offers retail financing and related services; a property development business, which develops residential and commercial properties; a business that leases real property, which leases out office buildings; and a hotel operation business, which leases hotel rooms, in addition to retail and other related business. The company also operates a business in project management and investment holding. It generates the majority of its total revenue from the financing business, and conducts business solely in Malaysia.

2019-09-03 07:27

Let's Highlight what i3 investor Forum Team has quoted about MBSB

The company operates through four major segments: a financing business, which grants loans on the security of freehold and leasehold properties

HAS PHILIP CHECKED WITH THE MANAGEMENT OF MBSB?

WHY THEY SAID

(((The company grants loans on the security of freehold and leasehold properties )))

THERE ARE THOSE WHO BOUGHT HOUSES ARE GOTTEN LOANS AND THERE ARE THOSE WHO USED HOUSES ARE COLLATERAL FOR PERSONAL LOANS

SO THE LOANS ARE SECURED

READ AGAIN

Business Background
Malaysia Building Society Bhd is a Malaysia-based company. The company operates through four major segments: a financing business, (((which grants loans on the security of freehold and leasehold properties))) and offers retail financing and related services; a property development business, which develops residential and commercial properties; a business that leases real property, which leases out office buildings; and a hotel operation business, which leases hotel rooms, in addition to retail and other related business. The company also operates a business in project management and investment holding. It generates the majority of its total revenue from the financing business, and conducts business solely in Malaysia.

2019-09-03 07:32

Read deeper into the financial statements, don't get fooled by the nice sounding business introduction or the nice looking covers. For a annual report/qr the important points has always been the last few back pages, the balance sheets, the notes and the errata.
Why don't you read again properly, how much of the loan book breakdown is like. How many percent is loans for corporate financing, how much is for house loans, how much is for personal financing.

READ AGAIN THE NOTES IN DETAIL. HOW SECURE IS THE 20 BILLION IF PERSONAL FINANCING LOANS.

The automative land of 200 million yes secure.

The corporate financing and projected yes secure.

The housing loans yes secure.

The personal financing? I SUGGEST MR CALVINTANENG TO DO MORE STUDY, OTHERWISE HE WILL END UP EAT MORE TALAMT KUEH AT 9 CENTS TO 3.5 CENTS, KPS DROP AND DROP AND DROP AFTER DIVIDEND, AND UZMA FROM 89 CENTS DOWN DOWN DOWN.

WHY DON'T YOU ASK PROPERLY WHAT SECURITY THEY HAVE FOR THE 20 BILLION IN PERSONAL FINANCING LOANS, THE QUALITY OF LOANS AND IS AFFECT ON THE INTRINSIC BOOK VALUE OF MBSB?

if you want the truth do you listen to your pastor Kong hee, management of city harvest? Or the audited accounts of city harvest itself?

You need to use your eyes, ears and brains to invest wisely.

I'm sure the management of city harvest church is right and the entire 99% Singapore government is wrong.

I hope your church members still visit you in the penitentiary.

2019-09-03 14:28

First of all I detest being associates with Kong Hee who is a fraud cheating people to promote his wife

Be it far from me to endorse such ungodly set up

As for mbsb personal loans I just called Mbsb Bank again to calify

These are like rcecap modus operant I give Govt and Swasta people with salary deduction locked in

There is no loans for outsiders just like rcecap

Any default will cause these borrowers to be sued and blacklisted just like Rcecap

So just like rcecap mbsb bank is a legalised ah long

2019-09-03 14:52

I not assioctes

I detest from being associated with Kong hee

I think you should be called the father in law of musangking

2019-09-03 14:54

Mbsb loan locked in by salary deduction is like rcecap
Better than both rcecap and aeon credit as mbsb bank source its fund direct from depositors

2019-09-03 15:27

Salary deduction guaranteed? No collateral as long as government worker is a safe bet? Many have said and many have been broken.

False assumptions to equate government workers as a guaranteed high quality resource.

If you assume just because it's a government worker then definitely will be a safe bet no need to worry no need collateral, then you deserve to lose every cent of you're investment.

2019-09-03 16:49

Hahaha

Rcecap is an example of doubting stupidity

2019-09-03 16:54

Same was said about rcecap at 27.5 sen when Calvin and Datuk Hashim the Ambank boss bought

Same now as EPF, Mbsb director and Calvin bought

2019-09-03 16:56

https://klse.i3investor.com/servlets/pfs/123029.jsp

Your track record.

2019-09-04 21:15

huawei19

be careful of this Calvin!!....his hard core promoted stock may take you to HOLLAND. Good example is KPS, nonstop bleeding from RM1.65 to RM0.71 now..

2019-09-04 21:19