KUALA LUMPUR (May 8): Public Bank Bhd (KL:PBBANK), Malaysia’s third largest bank by assets, said on Thursday it is raising its dividend payout target for 2025.
The company plans to distribute 60% of its net profit as dividend this year compared with 57% of net profit in 2024, chief executive officer Tan Sri Tay Ah Lek said at the bank’s annual general meeting. The dividends however will be subject to the usual factors, including regulatory approval, he noted.
"The bank remains committed to sustaining a healthy dividend payout while ensuring sufficient capital buffers to support future business growth."
However, buybacks or share issuances are not on the table currently, he said.
Public Bank’s dividend payout ratio has been rising steadily from 47.9% in 2018.
Tay also said a stake sale by the family of its late founder will be gradual and carefully implemented as the bank also took into account dividend payout timing to minimise any impact on Public Bank’s share price.
Diona Teh Li Shian, the youngest daughter of Tan Sri Teh Hong Piow, announced in October 2024 a restricted offer for sale that would see the Teh family reducing its shareholdings in Public Bank to 10%.
The corporate exercise will be conducted over five years in compliance with the Financial Services Act. The Teh family currently holds a 22.28% stake in Public Bank, with 21.64% held through Consolidated Teh Holdings Sdn Bhd and 0.64% via the estate of the late Teh.