Maybank to stop coal financing

KUALA LUMPUR (Bernama) -- Malayan Banking Bhd (Maybank) will stop financing new coal activities as part of its sustainable agenda.

Currently, coal financing makes up 0.2 per cent of the bank’s total portfolio.

Group president and chief executive officer Datuk Abdul Farid Alias said the bank aimed to transition together with its borrowers to achieve sustainable renewable energy mix in the medium and long term.

"There’s no new coal financing going forward for Maybank,” he told reporters after the bank's 61th annual general meeting here today.

He said No Deforestation, No New Peat, and No Exploitation (NDPE) stance was approved by the board in January 2020, which applies to all relevant sectors including but not limited to palm oil, forestry, logging, construction and real estate.

Abdul Farid said Maybank has also launched its next five-year business strategy (2021-2025), known as M25, that focused on three outcomes -- attaining sustainable return on equity, achieving top-rated customer experience through digital and hybrid services and becoming a regional leader in environmental, social and corporate governance.

He said by end-2025, the group aimed to achieve a return-on-equity of 13 to 15 per cent, cost-to-income ratio of less than 45 per cent, earnings per share of more than 100 sen per share and dividend payout ratio of between 40 to 60 per cent.

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