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Malaysian banks unswayed by moves to cut dividends

Bloomberg Published on Mon, Apr 13, 2020 / 3:17 PM GMT+8

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KUALA LUMPUR (Apr 13): As banks elsewhere scrap or defer dividend payments, investors in Malaysian lenders can still expect their usual cash rewards.

Malayan Banking Bhd., the biggest lender by market value, plans to keep its payout ratio of as much as 60% its profit after tax and minority interests, on top of paying a 2019 interim dividend on May 6, its spokesperson said. CIMB Group Holdings Bhd. is more cautious, saying dividend payments will depend on profits and liquidity needs even if banks currently have enough capital.

Regulators from the U.K. to Vietnam have advised lenders to cut or delay dividends to ensure they have enough buffers to weather an expected economic downturn. Malaysia has imposed no such guidance, with analysts expecting banks to maintain their dividend policy. Combined, the nation’s three biggest lenders announced 12.6 billion ringgit ($4.1 billion) in payouts last year.