Will pandemic-hit banks dividends this financial year?

Strong footing: According to Bank Negara’s Financial Stability Review report, all banks remained well-capitalised throughout the first half of 2020, with aggregate capital buffers amounting to RM121.6bil as at June 2020, just a shade below the amount as at December 2019.

FOLLOWING the release of the Financial Stability Review report for the first half of this year by the central bank this week, it is safe to say that it’s been a tough first six months for financial institutions.

The report notes that banks reported a “marked decline” in earnings from domestic banking activities during the first half of the year, weighed down by further margin compression and higher provisions for credit losses.