Should You Buy Bank Shares After The Fall? A Fund Manager Says Dividend Yields Are At 6-7%

Esther Teo of AHAM Capital says some bank shares may pay more than 1.5 times fixed deposit rates. Unlike deposits, though, share prices can fall, and the KL Financial Index is down nearly 5% this year. That makes bank shares something to weigh against deposits, not a replacement for them.

The Rakyat Post Jake Lim · News & blogs · 16 hr ago

Key points

At that rate, RM10,000 in bank shares would bring in RM600 to RM700 a year in dividends if banks pay as expected.
She said foreign investors have been selling Malaysian shares as bond yields rise.
Banks are on track for 3% earnings growth this year, supported by a solid domestic economy.

Sentences selected automatically from the original article by The Rakyat Post.

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Some top-tier Malaysian bank shares now offer prospective dividend yields of 6-7%, said AHAM Asset Management Berhad deputy managing director and chief fixed income officer Esther Teo.

In an interview with The Rakyat Post, Teo said valuations look reasonable after the recent drop in bank shares, which could be attractive to Malaysian investors who are weighing this against saving in fixed deposit accounts.

A prospective yield uses today’s share price and the dividend a bank is expected to pay.

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Published: October 26, 2026 at 3:21 AM UTC
By: Jake Lim
Section: Malaysia
Format: Article
Original: therakyatpost.com ↗

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The Rakyat Post Should You Buy Bank Shares After The Fall? A Fund Manager Says Dividend Yields Are At 6-7% (this story)

Should You Buy Bank Shares After The Fall? A Fund Manager Says Dividend Yields Are At 6-7%

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