KUALA LUMPUR: MBSB Bhd is exploring further acquisitions, including mortgage portfolios, credit card businesses and takaful operations, as it seeks to expand its domestic presence and achieve greater economies of scale.
Chairman Datuk Wan Kamaruzaman Wan Ahmad said the group is considering acquiring financial institutions or selected assets from other industry players as part of its longer-term growth strategy.
"We are looking at all those possibilities and angles," he told Business Times in an interview.
Wan Kamaruzaman said MBSB is particularly interested in exploring mortgage portfolios, while a credit card business could be established organically or acquired from an existing operator.
Its wholly owned banking subsidiary, MBSB Bank Bhd, currently offers debit cards but is not listed as a credit card issuer by Bank Negara Malaysia, making the segment a potential new avenue for growth.
Takaful operations are another potential area of expansion, said Wan Kamaruzaman.
He said any potential acquisition would have to complement MBSB's existing operations and strategic requirements, with the group's Islamic banking focus limiting its options to Syariah-compliant businesses.
Nevertheless, he said opportunities existed among smaller, specialised financial services providers, including operators whose shareholders might be looking to exit their investments.
Asked whether MBSB would consider acquisitions overseas, Wan Kamaruzaman said the group would remain focused on Malaysia for now, with no immediate plans to expand abroad.
He said the group would consider international expansion only when it had achieved sufficient size and financial strength.
The potential acquisitions form part of MBSB's efforts to build greater scale in an increasingly competitive banking industry.
"Banking is about scale. And when you don't have scale, you need to know your niche," he said.
Wan Kamaruzaman said MBSB has the potential to grow its asset base to between RM100 billion and RM120 billion over the longer term.
He said a larger balance sheet would allow the group to benefit from economies of scale, improve operating efficiency and generate better returns.
MBSB's total assets stood at RM69.1 billion as of end June.
Still, Wan Kamaruzaman said the group would remain cautious in expanding its financing portfolio to avoid accumulating further impaired financing.
The group's gross impaired financing improved slightly to 6.23 per cent as of end June, from 6.33 per cent as of end of 2025. However, this was higher than the 5.33 per cent as of end 2024.
It is also higher than the banking industry level of around two per cent.
MBSB has the backing of its major shareholders, the Employees Provident Fund and Permodalan Nasional Bhd, an important advantage in pursuing its longer-term ambitions.
The potential expansion comes as MBSB prepares a new four-year strategic plan covering 2027 to 2030, as its existing FLIGHT26 transformation programme comes to an end.
MBSB previously expanded through the acquisition of Asian Finance Bank in 2018, which established its Islamic banking platform, followed by the acquisition of Malaysian Industrial Development Finance Bhd in 2023.
The group is still working to improve integration and operating efficiency following those acquisitions.
Wan Kamaruzaman said MBSB's next phase of growth would require a combination of scale, prudent financing decisions and a clear focus on businesses where it could compete effectively.
© New Straits Times Press (M) Bhd