Dividend Yields Comparison Between Malaysian Banks

BanksDividend Yield (%)PEROE (%)
Affin Bank3.236.315.23
Ambank6.336.138.47
BIMB4.657.846.23
CIMB8.118.736.23
Hong Leong Bank3.7610.849.64
Maybank7.2310.8010.05
Public Bank4.7710.7812.64
RHB Bank9.638.383.95
Average5.968.737.81

Analysis

  1. CIMB has the highest dividend yield but low ROE and whether the dividend yield is sustainable in the long run.
  2. Maybank has 7.23% dividend yield which is commendable with ROE of 10% but with higher than average PE.
  3. Ambank has 6.33% dividend yield with PE of 6.13 which is below average which is good and above average ROE.
  4. Public Bank has highest ROE of 12.64 means it is very efficiency in using its capital vs other banks but it has very low dividend yield.

Conclusion

Based on the numbers, without evaluating its long term business, I would buy Ambank it has 6.33% dividend and take only 6 years to recover the capital.

However on safe side, it is better to buy Maybank shares as it is innovative in digital area for example first to introduce online banking and digital payment which I think is the new disruption in banking sector.

Notes

Total dividend amount declared for financial year ended 2018-12-31

  • Bank Islam
  • Affin Bank
  • CIMB
  • RHB Bank
  • Maybank

Total dividend amount declared for financial year ended 2019-03-31.

  • Ambank

Total dividend amount declared for financial year ended 2019-06-30.

  • Hong Leong Bank

source: MalaysiaStock.biz