PETALING JAYA: Malayan Banking Bhd (Maybank), which posted a 10.39% decrease in net profit for the first six months of financial year 2022 (H1’22), will pay an interim dividend that is above its long-term dividend payout ratio policy.
The bank, which is looking “to grow responsibly”, has declared a first interim dividend of 28 sen per share – 21 sen in cash and 7 sen in dividend reinvestment – which translates into a dividend payout ratio of 85.9%, exceeding the group’s 40% to 60% dividend payout based on reported net profit attributable to shareholders.
Maybank group president and CEO Datuk Khairussaleh Ramli said the bank can afford the dividend payout and that “it is always good to underpromise and overdeliver”.
“At the moment, we can afford to pay more (than the 60% dividend payout policy). If we can pay more, we certainly will pay more. But we also have to manage the ability to pay consistent dividend payout,” he told a press conference after announcing its financial results in Kuala Lumpur today.
Maybank recorded 5.4% lower net profit for the second quarter ended June 30, 2022 to RM1.86 billion from RM1.96 billion in the same quarter last year due to weaker net fee-based income (7.7% decrease) across most business segments as markets continued to be volatile.
Revenue fell to RM11.20 billion from RM11.34 billion previously.
For the first half ended June 30, 2022, Maybank’s net profit fell 10.39% to RM3.90 billion from RM4.35 billion due to higher net impairment charges, while revenue was flat at RM23.12 billion versus RM23.56 bilion in the same period last year.
Given expected headwinds and market volatility, Maybank said, capital and liquidity conservation remain key priorities. Moving forward, it will selectively grow its loan book across its key markets while defending the low-cost deposit base. It will continue to look for fee-based income opportunities within the wealth management, global markets, investment banking, asset management and insurance segments.
Maybank’s other segments performed well. Its net fund-based income grew 6.1% year-on-year (y-o-y) as the net interest margin rose 4 basis points y-o-y on higher interest rates. Group current account saving account (Casa) grew 8.5% while group loans expanded 6.2%, led by strong performance across all home markets.
Maybank said it will focus its efforts on driving greater financial inclusion, offering more sustainable financing and solutions as well as supporting the move towards a responsible transition to a low carbon economy.
It is maintaining its headline KPI of return on equity of between 9.5% and 10% for FY22, factoring in the impact of the one-off Prosperity Tax.
As customers’ behaviour has changed, Maybank is highly focused on going digital, chairman Tan Sri Zamzamzairani Mohd Isa said.
“We are very aware of digital banking, we are indeed looking at the way we can make sure that we are in the game. But we are big, therefore we need to put in resources and investments to make sure that we cover the front end, middle office, and the back office,” he added.
