CIMB Group Holdings Bhd is implementing a share buyback program as part of its RM2 billion capital return strategy. Since September 21, the bank has repurchased 20.76 million shares. The buybacks have cost RM163 million.
So far, shareholders have received RM700 million of the planned capital return through special dividends. Market speculation suggests CIMB may increase its total capital return commitment to make the buyback initiative more appealing to investors.
The strategy is being closely watched as a potential trendsetter for other major Malaysian banks. The buyback aims to support earnings per share, return on equity and dividends per share.