Malaysian banks stick with dividend payouts

The regulator has yet to order a delay in doing so.

Unlike its peers, Malaysian banks are planning on continuing their dividend payouts, reports Bloomberg.

Maybank wants to retain a payout ratio of as much as 60% of its profit after tax and minority interests in addition to a 2019 interim dividend, whilst CIMB will base its payouts on profit and liquidity needs.

Malaysian regulators have not yet ordered a cut or delay in dividends, and analysts are expecting banks to maintain their dividend policies.

“We opine that Malaysian banks are facing the current crisis in a position of strength,” said Imran Yassin Yusof, senior analyst at MIDF Amanah Investment Bank Berhad. “This is due to the fact that Malaysian banks are well capitalized and we believe that they will be able to weather the current crisis.”

Here’s more from Bloomberg.