KUALA LUMPUR: More than seven decades after it began as a building society helping civil servants own homes, MBSB Bhd has evolved into a diversified financial services group.

But turning that transformation into stronger and more sustainable earnings remains a challenge.

Chairman Datuk Wan Kamaruzaman Wan Ahmad acknowledged that legacy financing issues, integration challenges and fierce competition continue to weigh on earnings, despite improvements in the group's funding position and expansion of its financial services.

He said the group is likely to fall short of some of its targets this year, particularly on profitability.