KUALA LUMPUR (May 6):  Malaysia Building Society Bhd (MBSB) has proposed a single-tier final dividend of 3 sen per share for the financial year ended Dec 31, 2019 (FY19), lower than its dividend payout in the previous year of 5 sen per share.

In a local bourse filing, MBSB said the total amount payable for the proposed dividend would be approximately RM201.4 million. This translates to a payout ratio of 27.34%.

The bank added that the Dividend Reinvestment Plan (DRP) shall apply to the entire portion of the proposed dividend to its shareholders, pending approval at the coming Annual General Meeting (AGM).

Correspondingly, the books closure date in respect of the proposed dividend will be announced after the AGM.

At end-Feburary, the bank reported a net profit jump of 202% to RM356.6 million for the fourth quarter ended Dec 31, 2019 (4Q19) from RM117.9 million recorded a year ago, mainly due to an impairment write-down of RM211.67 million in 4Q19.

MBSB said the favourable write-down was mainly attributable to refinement on the expected credit loss model for loans, financing and advances.

Revenue for 4Q19 improved 15.3% to RM784.14 million from RM680.36 million a year ago, while revenue for the 12 months of 2019 (FY19) stood at RM3.01 billion, which is a marginal growth from FY18’s RM2.86 billion, driven by treasury income from financial investments.

During the release of its latest quarterly results, MBSB group president and chief executive officer Datuk Seri Ahmad Zaini said: “We take cognisanze of unfavourable factors currently affecting the economy, especially the COVID-19 outbreak and the political landscape.

“We have taken the necessary steps to manage these risks, as well as putting in place initiatives to accommodate customers who are distressed by the negative impact of COVID-19,” he said.

MBSB Bank is also well on its way to achieve its three-year technology transformation plan and will launch its e-wallet soon.

Shares in MBSB traded 0.5 sen or 0.8% higher at 65 sen, valuing the bank at RM4.36 billion market capitalisation.