KUALA LUMPUR: The Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) are the clear winners from top four Malaysian banks’ financial performance in 2018.
The country’s two largest fund managers are expected to net a dividend windfall of close to RM5 billion, based on the numbers announced by the banks and analysts’ estimate.
PNB is expected to receive a total dividend of about RM3 billion from Malayan Banking Bhd (Maybank), RHB Bank Bhd and CIMB Group Holdings Bhd.
EPF, on the other hand, may receive some RM1.8 billion dividend from the three banks and Public Bank Bhd.
PNB has the largest stake in Maybank with 45.55 per cent. It also has some interests in RHB (8.50 per cent) and CIMB (three per cent).
EPF has stakes in all four banks with RHB being the largest shareholding at 40.62 per cent, followed by CIMB (13.84 per cent), Maybank (12.85 per cent) and Public Bank (11.77 per cent).
Stock market analyst Nazarry Rosli said the generous payout in their dividend payment showed that banks were in healthy condition and willing to share their good earnings with the shareholders.
“This will also make their share prices more stable as the big institutions are expected to hold to their portfolios in these banks,” he told NST Business.
Both Maybank and RHB posted record net profits for 2018. They also expect to maintain the momentum this year.
As a result, the former was generous in its dividend payout at RM6.3 billion while the latter raised the policy to above 30 per cent.
RHB will be paying 36 per cent of its 2018 net profit for dividend this year, the highest since 2003.
Public Bank’s net profit for 2018 came slightly below estimate but has announced a total dividend of RM2.7 billion, representing 47.9 per cent payout ratio.
CIMB Group, which is set to announce its financial performance for 2018 today (Thursday), may announce a dividend payout of RM2.42 billion, according to Bloomberg, based on estimated net profit of RM4.746 billion and a payout ratio of 51 per cent.
EPF has RM833.76 billion total assets under management. By industry sector, its largest equity exposure is in the financials.
EPF's top holdings based on current market value are Maybank, Public Bank, Tenaga Nasional Bhd, RHB and CIMB.
PNB invests in in the local stock market and public equities through among others Amanah Saham Bumiputera, Amanah Saham Wawasan 2020, Amanah Saham Malaysian and Yayasan Pelaburan Bumiputera.