KUALA LUMPUR (Feb 12): Dividend upsides will likely come from larger-to-mid-sized banks, as smaller banks are constrained by their aggressive business development, according to MBSB Research. It said smaller banks’ need to retain more capital to support growth, and is likely to limit their ability to raise dividends. At the same time, loan growth has been weaker than expected, largely dragged by weakness in business loans. Even with slower loan growth, MBSB Research remains positive on the sector, saying how banks manage their capital is becoming the main driver of share price gains. MBSB Research views this structure as a more effective and regulator-friendly mechanism for capital distribution compared with dividend reinvestment plans.

Source: The Edge Markets February 12, 2026 02:28 UTC