KUALA LUMPUR: Affin Bank Bhd has announced a special dividend amounting to RM400.21 million or 18.09 sen per share, the highest ever paid by the banking group, following the completion of the bank's disposal of its 63 per cent equity investment in Affin Hwang Asset Management Bhd (AHAM).
President and group chief executive officer Datuk Wan Razly Abdullah said the approved special dividend, combined with the interim dividend of RM100.2 million, or around 4.53 cent per share announced earlier, will see Affin shareholders receiving a total of RM500 million in dividends in December 2022.
"With the successful divestment of AHAM, this special dividend rewards our shareholders for their continued support and enables them to further participate in the bank's growth.
"Payment of these dividends will be made by the end of December 2022 to the shareholders," he said after the banking group's extraordinary general meeting (EGM) here today.
At an EGM held today, shareholders of Affin Bank unanimously voted to approve the proposed special dividend.
Wan Razly said the completion of this deal paves the way forward and puts Affin Bank in a better position to realise the aspirations of its A25 strategic plan.
He said the bank aims to achieve a 10 per cent return on equity (ROE), drive revenue growth and double its customer base to 2 million.
"Affin Bank will achieve the said growth through the retail banking and small and medium enterprise (SME) segments, supported by its Islamic banking service, Affin Islamic, which recorded a compounded growth of between 16 and 17 per cent year on year," he said.
In addition, Wan Razly said Affin Bank would launch its new mobile banking application within a few weeks as part of its latest initiative to deliver the best customer service.
He also said the bank plans to allocate about RM400 million for capital expenditure (capex) in 2023.
"Next year, we expect to increase that capex amount, which is RM400 million, with 80 per cent of the capex going for our internet technology (IT) investment.
"Moving forward, although the market environment is expected to be challenging, there are still growth opportunities, especially in the retail and SME segments.
"We are confident that Affin Bank has the agility required to seize the opportunities out there," he added.