KUALA LUMPUR, Feb 24 — Malayan Banking Bhd (Maybank) anticipated its return on equity for the financial year ending December 31, 2022 (FY2022) to be similar to that of FY2021, despite the expectation of overall sustained economic recovery this year.

Group president and chief executive officer Datuk Seri Abdul Farid Alias said the bank has set a headline key performance index (KPI) of between 9.5 per cent and 10 per cent, taking into consideration the impact from the higher one-off Prosperity Tax announced by the government.

"Global economies rebounded in 2021 arising from the impact of significant monetary and fiscal support, coupled with the gradual reopening of economic activity facilitated by Covid-19 mass vaccinations, following the pandemic-induced recession in 2020.

"The trajectory of recovery was uneven among countries due to the diverging pace of vaccination rollouts as well as a resurgence in infections from the emergence of new variants, resulting in the reintroduction of restriction and containment measures,” he told a virtual media briefing on the bank’s FY2021 performance today.

Commenting on the group’s performance Abdul Farid said the group’s ability to deliver a better set of results in 2021 was underpinned by the risk posture to be prudent from the onset of the pandemic in terms of credit and risk management, pursuit of responsible growth and maintaining good shareholder returns.

"Our financial strength and resilience has been a result of our focus in building strong capital, liquidity, credit and risk management practices group-wide over the years, which has helped us overcome this pandemic and enabled us to support our customers in need.

"While lingering Covid-19 concerns remain in 2022 due to the recent rapid increase in cases, the upside is that many have been fully vaccinated and we are learning to live with the new virus variants. Maybank will remain steadfast in pursuing its M25 ambitions to enable meaningful and lasting value creation,” he said.

Overall, he said a better outlook is expected for 2022 driven by broader and sustained economic re-openings, easing of border controls and higher vaccination rates.

"Maybank group remains committed in supporting the economic recovery across our home markets by enabling access for financial support to our customers to strengthen their financial positions and capitalise on emerging growth opportunities.

"As more customers experience an easing of cash flow pressures on sustained recovery, the group will continue to proactively engage with customers on a targeted basis to extend additional support for those in need and as part of our robust asset quality management process.

With expectations of improved mobility, he said Maybank will also look to defend its low-cost deposits’ base to maintain its net interest margin position.

Concurrently, he said the group will continue to drive fee-based income growth through wealth management, global markets, investment banking, asset management and insurance segments.

"Maybank will leverage its extensive digital ecosystem and domestic franchise strength to deepen market penetration and capture underserved segments. The group will invest strategically in its digital infrastructure and sustainability commitments in line with its M25 ambitions.

As part of the M25 strategic priorities, he said Maybank will focus its efforts on driving greater financial inclusion, offering more sustainable financing and solutions as well as supporting the move towards a responsible transition to a low carbon economy.

The bank also has declared a single-tier second interim dividend of 30 sen per share, comprising an electable portion of 7.5 sen per share under its Dividend Reinvestment Plan, bringing the full-year dividend to 58 sen per share, which translates into a payout ratio of 84.5 per cent or RM6.84 billion in total. — Bernama