Malaysia Building Society : Audited Financial Statements for Financial Year Ended 31 December 2022

MALAYSIA BUILDING SOCIETY BERHAD (197001000172 / 9417-K)

(Incorporated in Malaysia)

FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

MALAYSIA BUILDING SOCIETY BERHAD (197001000172 / 9417-K)

(Incorporated in Malaysia)

Contents	Page
Directors' report	1	- 6
Statement by Directors		7
Statutory Declaration		8
Independent auditors' report	9	- 15
Statements of financial position	16	- 17
Statements of profit or loss and other comprehensive income	18
Statements of changes in equity	19	- 20
Statements of cash flows	21	- 25
Notes to the financial statements	26	- 201

MALAYSIA BUILDING SOCIETY BERHAD (197001000172 / 9417-K)

(Incorporated in Malaysia)

Directors' Report

for the financial year ended 31 December 2022

The Directors have pleasure in presenting their report together with the audited financial statements of the Malaysia Building Society Berhad ("the Company") and its subsidiaries (together referred to as "the Group") for the financial year ended 31 December 2022.

Principal activities

The Company is principally engaged in investment holding. The Company had ceased providing new financing, but continues to manage its remaining conventional loans and advances.

Financial results

Group Company

RM'000 RM'000

Profit for the year

460,188

219,746

Dividends

The dividends on ordinary shares paid or declared by the Company since 31 December 2021 were as follows:

	RM'000
In respect of the financial year ended 31 December 2021:
- single-tier interim dividend of 3.0 sen per ordinary share on 7,171,483,803
ordinary shares declared on 17 December 2021 and paid on
12 January 2022	215,145

On 20 March 2023, the Company announced a single-tier interim dividend of 8.50 sen net per ordinary share in respect of the financial year ended 31 December 2022. Based on the number of shares in issue of 7,171,483,803 ordinary shares as at 31 December 2022, the dividend payable would be RM609,576,123.

The financial statements for the current financial year do not reflect the dividend above. This dividend will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2023.

Reserves, provisions and allowances

There were no material transfers to or from reserves or provisions or allowances during the financial year other than those disclosed in the financial statements and notes to the financial statements.

Issue of shares and debentures

During the financial year, there were no changes to the issued and paid-up ordinary share capital.

On 15 April 2022, MBSB Bank Berhad ("MBSB Bank") issued Sustainability Sukuk Wakalah with nominal value of RM300,000,000.

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MALAYSIA BUILDING SOCIETY BERHAD (197001000172 / 9417-K)

(Incorporated in Malaysia)

Bad and doubtful debts and financing

Before the financial statements of the Group and of the Company were prepared, the Directors took reasonable steps to ascertain that proper actions had been taken in relation to the writing off of bad debts and financing and the making of allowance for doubtful debts and financing and satisfied themselves that all known bad debts and financing had been written off and that adequate allowance had been made for doubtful debts and financing.

At the date of this Report, the Directors are not aware of any circumstances which would render the amount written off for bad debts and financing, or the amount of the allowance for doubtful debts and financing in the financial statements of the Group and of the Company, inadequate to any substantial extent.

Current assets

Before the financial statements of the Group and of the Company were prepared, the Directors took reasonable steps to ascertain that any current assets, other than debts and financing, which were unlikely to realise in the ordinary course of business, including the values of current assets as shown in the accounting records of the Group and of the Company had been written down to an amount which the current assets might be expected so to realise.

At the date of this Report, the Directors are not aware of any circumstances which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading.

Valuation methods

At the date of this Report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

Contingent and other liabilities

At the date of this Report, there does not exist:

1. any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or
2. any contingent liability of the Group or of the Company which has arisen since the end of the financial year other than those arising from the normal course of business of the Group and of the Company.

No contingent or other liability in the Group or the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Group and of the Company to meet their obligations as and when they fall due.

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MALAYSIA BUILDING SOCIETY BERHAD (197001000172 / 9417-K)

(Incorporated in Malaysia)

Change of circumstances

At the date of this Report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company, that would render any amount stated in the financial statements misleading.

Items of an unusual nature

In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial year ended 31 December 2022, have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report.

Directors

The Directors of the Company who have held office during the financial year and during the period from the end of the financial year to the date of this report are:

Encik Mohamad Abdul Halim bin Ahmad

Ir. Moslim bin Othman

Puan Lynette Yeow Su-Yin

Encik Sazaliza bin Zainuddin

Dr. Loh Leong Hua

Encik Lim Tian Huat (retired on 9 June 2022)

Datin Hoi Lai Ping (appointed on 1 March 2022)

Tan Sri Azlan bin Mohd Zainol (deceased on 12 January 2023)

The Directors of the Company's subsidiaries who have held office during the financial year and during the period from the end of the financial year to the date of this report (not including those Directors listed above) are:

Datuk Azrulnizam bin Abdul Aziz

Datuk Johar bin Che Mat

Encik Kamarulzaman Ahmad

Encik Arul Sothy Mylvaganam

Encik Ho Kwong Hoong

Lim Choon Seng

Ms. Rupavathy a/p A.V. Govindasamy

Encik Asrul Hazli Salleh

Ms. Ng Jui Shan (appointed on 28 April 2022)

Encik Jesleigh Johari (appointed on 15 February 2022)

Encik Hazim Yahya (appointed on 15 February 2022)

Encik Ramanathan Rajoo (appointed on 15 February 2022)

Puan Azlina Mohd Rashad (resigned on 15 February 2022)

Encik Aw Hong Boo (retired on 9 June 2022)

Kew Thean Yew (resigned on 30 April 2022)

Encik Edmund Lee Kwing Mun (resigned on 28 April 2022)

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