KUALA LUMPUR (Sept 29): The restructuring of Vantris Energy Bhd (KL:VANTNRG), formerly known as Sapura Energy Bhd, could add as much as 2.3% to its creditor banks’ earnings this year, according to MBSB Research.
In a note on Monday, the research house said creditor banks including Malayan Banking Bhd (KL:MAYBANK), CIMB Group Holdings Bhd (KL:CIMB) and RHB Bank Bhd (KL:RHBBANK), which emerged as major shareholders under the scheme, are expected to recognise earnings contributions from settlement shares issued at 80 sen apiece.
At Vantris’ current market price of 53 sen, the proceeds translate into an uplift of between 1.5% and 2.3% of net profit this year, with Maybank likely to see the largest absolute impact.
“Most banks were already guiding for stronger recoveries in 2H2025 (second half of 2025) — hence these proceeds are likely embedded in most banks’ guidance. Regardless, this is a step in a positive direction,” MBSB Research said.
Despite banks having been guiding for larger recoveries in 2H2025, the full writebacks from the oil-and-gas firm’s proceeds are unlikely, said MBSB Research.
“A clear-cut writeback based on the value of the proceeds is unlikely, as most banks are likely to retain a fair chunk of their provisions amid economic volatility,” it noted.
Bright spots for dividends
The banking outlook, meanwhile, remains resilient with “extremely attractive” dividend yields, MBSB Research flagged, as it kept its “positive” stance on the sector.
“There are hints of higher dividend payouts at year’s end,” MBSB Research said, adding that wealth management, bancassurance and debt capital markets are expected to drive non-interest income (NOII) growth in 2025.
Most lenders also maintain elevated liquidity coverage ratios, giving them room to offset net interest margin (NIM) compression, following the recent overnight-policy-rate (OPR) cut.
MBSB Research named RHB Bank and Hong Leong Bank Bhd (KL:HLBANK) as its top picks, due to their high dividend yields, resilient asset quality, and strong NOII growth.