KUALA LUMPUR (May 26): MPHB Capital Bhd's net profit plunged 53% to RM7.54 million or 1.05 sen per share for the first quarter ended March 31, 2016 from RM16.02 million or 2.24 sen per share in the previous year's corresponding quarter, on lower contribution from its insurance division.

The decline in profit was despite a 13% increase in revenue to RM101.38 million from RM90.04 million a year earlier.

"In 1Q 2016, the pre-tax profit of the insurance division at RM14.78 million was RM7.47 million lower than the pre-tax profit of RM22.25 million achieved in 1Q 2015 due to decrease in underwriting profit, higher provision for bad and doubtful debts as well as lower investment income," it said.

Meanwhile, its credit division posted higher pre-tax profit of RM4.45 million, quadrupling its pre-tax profit of RM1.11 million in the previous year, while its investments division saw a narrower pre-tax loss of RM2.34 million compared to RM2.83 million.

Going forward, MPHB said its insurance division plans to grow its market share in the general insurance business, via its strategic partnership with Generali Asia N.V.

The group will also continue to expand its credit business, eyeing opportunities to finance select clientele, while its investments division will continue to focus on unlocking the value of its land bank.

"Investments division will continue to focus on unlocking the value of land bank either through joint ventures with reputable, established and reliable partners with minimum risk exposure to the group or outright disposal at the right price to potential buyers to achieve optimum returns," said the group.

MPHB fell one sen or 0.71% to close at RM1.39, for a market capitalisation of RM993.85 million.