NST Business
KUALA LUMPUR: All Malayan Banking Bhd shareholders are getting a RM3.5 billion windfall soon. This follows Maybank’s decision not to proceed with the implementation of the 16th Dividend Reinvestment Plan given the current softer equities market which has affected its share price.
Maybank today said its shareholders will now receive an all-cash final single-tier dividend of 32 sen per share for the year ended December 31, 2017.
The final dividend, totalling some RM3.5 billion, will be paid to all shareholders on July 6, which is the payment date announced for the final cash dividend on May 23, 2018.
Shareholders who had opted for the DRP and paid the RM10 stamp duty would be reimbursed the RM10 fee.
Maybank group president and chief executive officer Datuk Abdul Farid Alias said the decision was taken by the board after careful deliberation over what would be in the best interest of its shareholders well as the group’s capital requirements at this time.
“Given that the prevailing market price of Maybank shares throughout the DRP election period from June 11 to June 26, 2018 that has been lower than the price of the new Maybank shares to be issued pursuant to the 16th DRP at RM10 each, the board is of the view that a full cash dividend would offer shareholders better value at this point of time.
“The board remains assured that this decision is also in line with our mission of humanising financial services which calls us to do the right thing at all times, including being equitable to all shareholders,” he said in a statement.
Farid said the cancellation of the DRP will not have any material impact to the performance of the group or its capital structure and/or requirements, nor its issued share capital, earnings per share, net assets per share, gearing and substantial shareholders’ shareholdings of the company.
“Maybank remains among the region’s best capitalised banks with its CET1 (Common Equity Tier 1) ratio at 13.37 per cent and total capital ratio of 18.12 per cent (after final cash dividend) as at end March 2018, which is more than sufficient to support its growth and regulatory requirements,” he said.
Farid added that while the DRP had been cancelled on this occasion, it will remain an integral part of the group’s strategy for sound capital management and would continue in the future where relevant, given that it offers sufficient flexibility to shareholders as well as the group.
“We are firmly committed in ensuring a market-competitive dividend for our shareholders complemented by strategic planning of our capital requirements, which are essential in creating the next chapter of growth.
“Our stature as one of the leading regional banking groups is founded on and strengthened through our relevance and value created for our stakeholders consistently over the years,” he said.