KUALA LUMPUR, April 27 — Affin Bank Bhd (ABB) has resolved to reclassify the proposed final dividend in respect of the 2019 financial year to an interim dividend to ensure its timely payment to shareholders amid the movement control order (MCO).

At the same time, it is also revising the quantum down to five sen per share from seven sen previously to preserve the bank’s capital and liquidity.

On February 27, ABB’s board had proposed a final dividend of seven sen per share for the financial year ended December 31, 2019 (FY19), subject to shareholders’ approval at an annual general meeting (AGM) to be convened.

In a filing with Bursa Malaysia today, the bank said there was uncertainty in determining when it should convene its AGM, so a reclassification would facilitate timely dividend payment.

“The board, after taking into consideration the prevailing economic situation, (also) took the prudent stance and resolved to revise the quantum of the dividend from seven sen to five sen, amounting to a dividend payable of RM99.30 million in respect of FY19,” it added.

Under the earlier proposed dividend of seven sen a share, the dividend payout would have amounted to RM139.02 million.

However, despite being reduced to five sen per share, the dividend rate is the same as the previous year’s final dividend.

ABB said its board aimed to continuously provide a base level of return for its shareholders with the newly classified dividend while preserving its capital and liquidity.

It also noted that dividend reinvestment plan (DRP) would be applied to its new interim dividend, and  shareholders could elect to reinvest the entire dividend received into new shares.

This DRP, it said, would also give the shareholders option to reinvest all or part of the interim dividend in the form of new shares based on an issue price which will be at a discount of ABB shares’ market price at the price fixing date to be announced.

Shareholders at its upcoming AGM were initially slated to approve the final dividend declared on February 27, 2020, the DRP for the final dividend and the issuance of 96.5 million new shares under the DRP. — Bernama