KUALA LUMPUR (Sept 22): Malayan Banking Bhd (Maybank) shares were up by 0.3% to RM8.08 at 10.37am this morning as its first interim dividend payment goes ex, valuing the stock at RM94.6 billion.

The shares had earlier risen to a high of RM8.12.

Maybank opened five sen or 0.6% higher at RM8.10 against yesterday’s adjusted closing price of RM8.05. 

During the morning trade, a total of 2.18 million shares changed hands, where sell volume was higher than the buy volume. 

Notably, the banking group had on Aug 26 announced its first single-tier interim dividend for the financial year ending Dec 31, 2021 (FY21) or 28 sen per Maybank share. 

The board of the banking group had also determined that the dividend reinvestment plan (DRP) will apply to the first interim dividend, where an electable portion of 14 sen per Maybank share held can be elected to be reinvested into new Maybank shares and the remaining portion of 14 sen per Maybank share held will be paid in cash. 

Today, the banking group announced that the issue price of the new Maybank shares to be issued pursuant to the DRP has been fixed at RM7.80 per new Maybank share. 

This works out to be a 28 sen, or 3.4%, discount to the current share price. 

For the second quarter of FY21, the banking group saw net profit doubling to RM1.96 billion from RM941.73 million a year ago on the back of rising loans, expansion of net interest margin from a more cost-effective funding mix and as impairments came in lower than the previous year. 

Earnings per share rose to 17.05 sen from 8.38 sen. 

However, its quarterly revenue declined slightly by 3.87% to RM11.34 billion against RM11.79 billion previously. 

The 28 sen per share first interim dividend declared to its shareholders will be payable on Oct 21, 2021.