mbsb Announcements

Economic Profit and Loss Statement for 2nd Quarter 2009
Aug 11, 2009

General Announcement
Reference No MB-090811-55405

Company Name:
MALAYSIA BUILDING SOCIETY BERHAD

Stock Name:
MBSB

Date Announced:
11/08/2009

Type:
Announcement

Subject:
Economic Profit and Loss Statement for 2nd Quarter 2009

Contents:
Malaysia Building Society Berhad (“MBSB” or “the Company”) would like to announce its Economic Profit and Loss Statement for 2nd Quarter 2009.

Announcement Details :
ECONOMIC PROFIT AND LOSS STATEMENT FOR THE 2ND QUARTER 2009Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed.

The economic profit and loss statement set out in Table 1 is disclosed on a voluntary basis.The assumptions used in computing the economic profit/loss are set out below:

(i) The cost of equity is calculated based on the following formula:Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate

(ii) The Beta used in the calculation is the 5 years
adjusted Bloomberg Rate:
Quarterly Period Beta2nd Quarter 2009=1.4411st Quarter 2009=1.3834th Quarter 2008=1.373

(iii)The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:Risk Free RateAt 30 June 2009=4.340%At 31 March 2009=3.850%At 31 December 2008=3.170%

(iv) The market risk premium is assumed at 5.2%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1
30 June 2009

(Unaudited) RM’000

Group profit after taxation
14,233

Adjustments
- Deferred tax assets
8,000

Adjusted Group profit after taxation
22,233

Less: Cost of capital employed
(29,440)

Economic loss
(7,207)