Maybank Share

Summary

• Maybank’s Total Shareholder Return (TSR) for FY2011 was 28.1%, outperforming the benchmark FBM KLCI TSR of 24.8% but lower than the KL Finance Index TSR of 32.9%.
• Maybank share price experienced an overall upward trend, reaching to a high of RM9.29 in November 2010. The share rose 18.3% compared to the previous financial year.
• Total dividend of 60 sen per share was declared for the financial year, an increase of 9.1% year-on-year.
• Two Dividend Reinvestment Plans (DRP) were successfully implemented with high reinvestment rate of 88.6% (1st DRP) and 91.1% (2nd DRP) respectively, reflecting shareholders’ confidence in Maybank.

Total Shareholder Return (TSR)

TSR is the measure of our enhancement of value to our shareholders. It consists of capital gains (share price increase) and dividends.

In terms of TSR, Maybank outperformed the FBM KLCI Index by 3.3% by registering a return of 28.1% compared to the broader index’s 24.8% rise. However, Maybank’s TSR is lower compared to the KL Finance Index which
rose 32.9%

Dividend and Dividend Reinvestment Plan

• The Group adopts a high dividend policy with a Dividend Payout Ratio based on reported earnings attributable to shareholders for the year of 40-60%.
• For FY2011, the Board of Directors proposed a gross dividend 60 sen which is 9.1% higher compared to the previous year as a result of a second successive record net profit. This translates to a dividend payout ratio of 74.9%, exceeding our payout ratio policy.
• We continue to reward shareholders with a high dividend payout ratio but at the same time being prudent with capital management. Hence, the introduction of Dividend Reinvestment Plan (DRP), which rewards shareholders while preserving capital. Through our DRP, eligible shareholders have the option of reinvesting their electable dividend portion into Maybank shares at a discount of up to 10%. Both the first DRP and second DRP achieved high reinvestment rate of 88.6 and 91.1% respectively, reflecting shareholders’ confidence in Maybank. The Dividend Reinvestment Plan (DRP) will continue to be an integral part of Maybank’s strategy to preserve equity capital whilst providing healthy dividend income to shareholders.

Refer to page 52 for history of dividends and page 240 for capital management.

Gross Dividend (sen) and Payout Ratio (%)

Shareholder Analysis

• With over 60,000 shareholders around the globe, Maybank has a diversified shareholder base.
• Analysis of the shareholder structure showed that 84.21% of the shareholding emanates from Asia, followed by 4.72% from North America, 2.06% from UK, 1.06% from Europe (excluding UK), and 7.95% from other geographical locations.
• Maybank shares are mostly held by institutional investors at 91.36% while private investors hold the remaining 8.64%
• Foreign shareholding rose to 13.49% in June 2011 from 12.66% a year ago.

Shareholding by region

Shareholding by type

Note: Private investor figure is based on assumption of the remaining figures not analysed

Economic Profit

Khazanah’s Transformation Programme for Government-linked Companies (GLCs) is an initiative to develop high-performing entities for the future prosperity of the country. Being part of the transformation programme, Maybank has tracked the performance of its Economic Profit since 2005. Economic Profit is a key measurement of value creation to shareholders by showing a company’s return over and above its cost of capital.

For FY2011, Maybank’s Economic Profit increased 28.1% to RM1.75 billion from RM1.36 billion in the previous year. The increase was attributable to higher profit for the year despite the expanded equity base.