KUALA LUMPUR (May 5): Public Bank Bhd (KL:PBBANK) is targeting to maintain its dividend payout ratio at around 60% for this year.

“For financial year 2026, the bank is targeting a dividend payout at around the level of 60%,” said chief executive officer Tan Sri Tay Ah Lek during the bank’s annual general meeting on Tuesday.

However, Tay stressed that dividend decisions will always be subjected to the group’s financial performance, capital conservation and regulatory approval. This includes the prospect of a special dividend.

The upcoming Basel 3.1 transition provides banks such as Public Bank to have additional headroom, potentially paving the way for special dividends, said CIMB Securities in its report last month.

“The bank will provide more information on this specific capital management plan in due course... at the current juncture, our dividend payout guidance of around 60% is a healthy level,” Tay noted. 

The cautious stance comes despite expectations that the revised capital rules could unlock additional capital headroom. Tay said that retaining sufficient capital remains important to support long-term growth. 

The bank has consistently maintained stable dividend payouts over the years, with its payout ratio rising from 47.9% in 2018 to 60.5% in 2025, according to Tay.

The bank paid a dividend of 22.5 sen per share in the financial year ended Dec 31, 2025 (FY2025), translating to a total dividend payout of RM4.37 billion.

Tay added that the bank has been consistently maintaining stable dividend payout to shareholders despite rising challenges.

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