What is BRK?

BRK = Berkshire Hathaway

Actually most bank (MAYBANK, PBBANK, HLBANK, CIMB) can achieve a net return (equity gain + dividend) of more than 16% CAGR over the past 10years without need to limit new investment.

I assume Bank Rakyat already stop accepting new investment since 10y ago and its NAV remain the same.
Bank Rakyat net return is actually worst than most other bank above. The published yield of 16% is very misleading. If MAYBANK were to introduce a similar scheme, it can easily achieve 25-30% yield.

This post has been edited by Singh_Kalan: Apr 7 2018, 12:44 PM

that is a very insightful info that you gives....

Bank Rakyat is a cooperative bank. Unlike Maybank.

But if Maybank could produce better yield than BRakyat with similar scheme, why wouldn’t the bank do that?

maybe because they does not want to limit new investment?

as per earlier post.....

"Actually most bank (MAYBANK, PBBANK, HLBANK, CIMB) can achieve a net return (equity gain + dividend) of more than 16% CAGR over the past 10years without need to limit new investment."

Based on the article,

1. Bank Rakyat is not listed
2. There is no market price for its share
3. Hence the par value (usually RM1) is used as the base to calculate the dividend rate
4. Applies to all sdn bhd companies when they declare dividend
Eg. When RM0.20 is declared as dividend, the dividend rate is 0.20 / 1.00 = 20% of par value

5. As compared to listed banks, when dividend is declared, investors use market price as the base to calculate dividend yield. Eg. Maybank declare RM0.50 dividend, the dividend yield is 0.50 / 10.00 (market price) = 5% of market price (ie dividend yield)
6. Should Maybank is not a listed company, then the dividend rate would be 52% (2016 total dividend / par value RM1)

So, the 16% is actually meaningless if you are not the shareholder. Because it is based on par value, which the intrinsic share price would have been much higher. To the original shareholders who actually paid only RM1.00 to buy its share, then yes, their return is 16%

To see whether Bank Rakyat is a better money making machine than other banks, you should compare using Profitability Ratios. Like ROA, net interest margin, loan-to-asset ratio.

IMO, the “16% dividend” looks juicy, but you have to dig deeper and compare against other banks using common ratios to know whether BR is generating profit above or below industry standard

Well said. The published 16% dividend is quite meaningless. I guess they r trying to mislead the public to invest in their UT products. Shame on u bank rakyat !!!

This post has been edited by Singh_Kalan: Apr 9 2018, 04:19 PM

the 16% dividend is meaningless? why, the shareholders did no get the benefits out of it?
Bank rakyat got their own UTs products? they have their own entities to manage UTs?
or they are just a reseller/agent to UTs products that are managed by other fund houses?

This post has been edited by MUM: Apr 9 2018, 09:29 PM

its 15% dividend for 2017.

i dont understand why it is meaningless. for RM100k share, one gets RM15k dividen.

how do they give out so much in dividend??

Bank rakyat is dumb. last time they open to buy their share. All 4 members of my family went to buy and they only approve 500 bucks. We wanted to max out, 100k or 200 k can't remember. They didn't approve that amount. Only Rm 500. So every year 80 bucks only. Need to take out the dividend also. otherwise they say it's unclaimed dividend.

They will approve high amount only if you got connection inside. otherwise it's RM 500 only.

Yes, a multi-billion company with hundred of millions of asset is dumb as compared to rando on the internet.

NO news yet on the dividen for 2018.

Yes, very keen to know the dpu for 2018 too,....

how much did pbbank pay out for dividend in the last few years?

other than dividend,...how much has the price of the stock appreciated plus the right issues it offered over the last few years too?

This post has been edited by MUM: Apr 2 2019, 01:38 AM

What I'm sure....
Its won't be like ASB 2 rate announced recently..

Yes. I know its not apple to apple comparison.. But many always does that.. And the pool of investors / holders also have some similarities 😊 if u know what I mean...

tick tock tick tock...another TH kind of surprise? LOL

download klse screener app. all is there.

similar to the response above. klse screener app. all your answers there.

I believe the dividend is now automatically deposited into your Bank Raykat savings account?

On the side note, just sell your shares to me.