KUALA LUMPUR (Feb 14): IHS Markit expects the Malaysian banking sector’s mixture dividends to extend by 26% year-on-year (y-o-y) to US$3.43 billion (about RM14.37 billion) for monetary yr 2021 (FY21) after a 27.8% plunge for FY20 resulting from Covid-19.

In a observe on Monday (Feb 14), IHS Markit analysis analyst Tanisha Bhardwaj stated the dividend payouts for FY22 are forecast to develop 4.6% y-o-y, supported by robust liquidity and capital buffers.

Nonetheless, she stated there’s a combined image for dividends in FY21.

Bhardwaj stated AMMB Holdings Bhd determined to carry dividend payouts till the tip of the yr owing to cautious capital administration, whereas CIMB Group Holdings Bhd is anticipated to spice up its year-end dividend greater than threefold in comparison with the earlier yr.

She stated Malayan Banking Bhd (Maybank) and Public Financial institution Bhd will proceed to be the highest dividend contributors.

Bhardwaj stated the Malaysian banking sector outlook for FY22 is secure as financial exercise is anticipated to return to pre-Covid-19 pandemic ranges, resulting in extra jobs and better wages, in addition to a gradual improve in rates of interest that may assist banks enhance internet curiosity margins and profitability.

“Nonetheless, there are nonetheless uncertainties across the Covid-19 pandemic and extended provide chain disruptions, in addition to pure catastrophe dangers, akin to flood.

“The upbeat pattern is aligned with the regional sentiment throughout Southeast Asia.

“Banks in Thailand, Singapore and Indonesia are poised for regular development within the new yr,” she stated.

Bhardwaj stated banking dividends for all 4 markets are anticipated to rise by 9.25% on common for FY22.