KUALA LUMPUR (April 27): Affin Bank Bhd is reclassifying its final dividend for the financial year ended Dec 31, 2019 (FY19) as an interim dividend, while also cutting the initial seven sen declared to five sen per share.

It noted that in view of the Movement Control Order (MCO), there is uncertainty in determining when it should convene its annual general meeting seeking to seek shareholders’ approval for the proposed final dividend, and thus facilitate timely dividend payment.

Affin added that it aims to continuously provide a base level of return for its shareholders with the newly classified interim dividend, as well as maintain its capital and liquidity.

“The board, after taking into consideration the prevailing economic situation, took a prudent stance and resolved to revise the quantum of the interim dividend from 7 sen to 5 sen, amounting to a dividend payable of RM99,301,006 in respect of FYE 2019,” Affin added.

The bank’s dividend reinvestment plan (DRP) will be applied to its new interim dividend, with shareholders having the ability to invest the entire dividend received into new shares in the bank at a discount to market price, which will be announced at the price-fixing date.

Shareholders at its upcoming AGM were initially slated to approve the final dividend declared on Feb 27, 2020, the DRP for the final dividend and the issuance of 96.5 million new shares under the DRP.

Shares in Affin closed 0.65% or one sen lower at RM1.53 per share, giving it a market capitalisation of RM3.04 billion. It saw 263,900 shares traded.