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One bank declared dividend already. Wondering about all other banks.

After reporting profits for the financial year ending 31st Dec 2020, Maybank has declared dividend (single-tier interim dividend) of 13.5 sen. Yes, I start to wonder how will all other banks be reacting to this. By the way, from all the reports I read, I have not read about any bank suffering huge losses because they provided the 6 months moratorium which has also been extended to 9 months and now some may have extended it further.

COVID-19 pandemic has not been kind to many companies. This included the banks too. Thus, their stock price has been battered hard. Let’s not go into numbers but suffice to say, it’s RED when compared to their prices prior to COVID-19’s arrival. Yes, I owned stocks in one bank starting with C. Haha. Hopefully they will also declare dividends too though that’s not the main purpose I bought the stock in the first place. News as below.

declared dividend
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Article in themalaysianreserve.com Maybank is the first local bank to offer a full dividend for the year despite COVID-19 pandemic. Other banks such as Public Bank Bhd, CIMB Group Holdings Bhd and Affin Bank Bhd has not yet declared any dividend for the year despite posting IMPROVED profits.

For its 3Q ended Sept 30, 2020, Maybank’s net profit declined 2% year-on-year (YoY) to RM 1.95 billion or 17.37 sen per share from RM1.99 billion or 17.78 sen per share in the same quarter last year, due to the continued impact from the pandemic. However, this was partly offset by reduced overhead expenses and a decline in impairments. Do read the full report here: Article in themalaysianreserve.com

Important note

We are fortunate that Bank Negara Malaysia (BNM) has been very strict with the banks and thus when COVID-19 pandemic came, our banks were generally on a strong footing. Thus, the moratorium was able to be carried out easily. Imagine if the banks’ fundamental were wobbly and we ask them to extend the moratorium again and again. The banks’ employees may be the ones who will suffer the most when this happens. Luckily, the banks remain profitable and we have one who has announced a quarterly dividend. That’s really a good sign.

Conclusion

If the banks continue to show an improvement, their current share prices do look very attractive yeah. This is especially if they start declaring dividends based on their current share prices and it may be double or triple the yields from keeping our money in the fixed deposit for 12 months and getting just 2%. Not asking anyone to buy any stocks, this decision is for everyone to make. Do take care and stay safe.

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Next suggested article: Are banks still resilient in Malaysia. Who says what?

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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