KUALA LUMPUR (March 6): Malaysian banks are expected to deliver stronger dividends in 2026, underpinned by solid capital buffers and steady earnings growth, according to RAM Ratings. “System capital ratios moderated but remain comfortably above regulatory requirements and closer to pre-pandemic norms,” Wong Yin Ching, a senior analyst at RAM Ratings, said in the statement. Malaysian banks have announced their plans to step up capital distributions at a time of strong capital positions. Smaller rival Public Bank Bhd (KL:PBBANK) is preparing to raise its dividend payout ratio guidance to 60% for 2025, while AMMB Holdings Bhd (KL:AMBANK) seeks to double payouts within five years. In addition, banks operating under the so-called Standardised Approach for credit risk are expected to benefit from capital savings once the Basel III international capital standards come into effect in July 2026, RAM Ratings noted.

Source: The Edge Markets March 06, 2026 04:24 UTC