OSK Research is maintaining a "buy" recommendation on Malaysia Building Society Bhd (MBSB) with a fair value of RM2.70, in line with the company efforts to grow its loans book aggressively
while keeping its asset quality intact.

In a note today, the research house said MBSB was channeling greater efforts into generating more fee-based income via bancassurance and other products.

The company, which has been innovative in bundling its products, also planned to roll out another bundled product, it said.

OSK Research said it continued to like MBSB's diversification and
innovativeness in growing its business moving forward.

It said other key rerating catalysts of the stock were higher-than-expected loans growth, a further upgrade in civil servants' salaries, continuous improvement in asset quality, and a sustainable dividend policy.

At mid-day break, MBSB's share fell two sen to RM2.11. -- BERNAMA