Hong Kong, Malaysian and Singapore banks have higher regulatory capital buffer than peers at status quo.
As the interest rate outlook and growth becomes more uncertain in Asia, shareholder returns in the form of dividends and, in the view of analysts, share buybacks, are likely to be increasingly key in stock selection for banks.
According to a JP Morgan report dated April 18, banks’ ability to increase shareholder returns would depend on their capital buffer, internal capital generation capability and potential regulatory changes on capital management.
