economy

AMAR, The First Digital Bank In 2024, Is Optimistic About Its Continuous Growth As It Plans To Distribute Dividends

PT Bank Amar Indonesia Tbk, also known as Amar Bank (IDX: AMAR), a digital bank serving retail and MSME segments, has announced a cash dividend distribution of Rp 55 billion or equivalent to a 31% Dividend Payout Ratio of the company's net profit in 2023 amounting to Rp 177.9 billion.

This announcement was made based on the decision of the 2024 Annual General Meeting of Shareholders (AGM) of Amar Bank held on Wednesday, May 29, 2024. This announcement also makes Amar Bank the first digital bank in 2024 to distribute dividends amidst the dynamics of the domestic digital banking industry, marking the company's optimism to continue growing in 2024 and the following years.

The company will distribute dividends amounting to Rp3.03 per share to shareholders who are entitled to receive cash dividends. Cash dividend payments will be given to shareholders whose names are listed in the company's Shareholder List entitled to cash dividends, with cum dividends in the regular market and negotiations to be completed no later than Thursday, June 6, 2024.

Amar Bank's President Director, Vishal Tulsian, stated, "As a pioneer in digital banking, we are proud that Amar Bank is the first digital bank to distribute dividends in 2024. This is especially significant given the competitive dynamics of the digital banking and fintech industry over the past two to three years.

The company has managed to improve its performance and profits throughout 2023 and early 2024 by continuously focusing on innovating to serve the retail and MSME segments through our various flagship products and services. This dividend distribution also serves as a commitment to our investors and shareholders, reflecting our confidence in future growth."

Furthermore, here is the schedule for the cash dividend distribution for the 2023 fiscal year that has been published through the company's website and the Indonesia Stock Exchange website.

- Cum Dividend in the Regular and Negotiation Market: June 6, 2024

- Ex Dividend in the Regular and Negotiation Market: June 7, 2024

- Cum Dividend in the Cash Market: June 10, 2024

- Ex Dividend in the Cash Market: June 11, 2024

- Recording Date for Shareholders Eligible for Cash Dividends: June 10, 2024

- Cash Dividend Distribution: June 28, 2024

The company's optimism is also based on its performance in 2023 and early 2024, which reflects significant business growth amidst macroeconomic dynamics and geopolitical turmoil. The company has successfully disbursed loans totaling Rp 2.74 trillion throughout the first quarter of 2024, with 52% of these loans targeted towards SMEs.

This performance reflects the expanding business segment of Amar Bank, especially with an average of 33.61% of fintech lending loans directed towards new productive sectors based on OJK data in March 2024.

Separately, Leonardo Lijuwardi, Equity Research Analyst at NH Korindo Sekuritas, provided an interesting assessment of Amar Bank's strategic moves supported by solid fundamentals. "When compared to some well-known competitors in the digital banking industry, AMAR is able to distribute dividends after successfully achieving a turn-around performance. This step is also reinforced by impressive NIM growth and healthy asset quality."Previously, Amar Bank recorded a net profit of Rp 177.9 billion throughout 2023, growing by 214.5% year-on-year. This positive performance continued in the first quarter of 2024 with solid financial results. AmarBank achieved a net profit of Rp 48.86 billion in Q1 2024, growing by 41.9% year-on-year, making it the best first quarter performance compared to previous years.