KUALA LUMPUR (Sept 30): Lembaga Tabung Angkatan Tentera (LTAT) has today declared its lowest-ever dividend of 2%, compared with a minimum of 6% paid over the past four and a half decades.
"A point to make is that no entity should pay dividends without funds to do so in place," LTAT chief executive Nik Amlizan Mohamed told reporters at a press conference here today.
When asked if LTAT could return to giving out dividends of at least 6% this year, its chairman General Tan Sri Mohd Zahidi Zainuddin said: "We would definitely work hard and be responsible to ensure that our soldiers get the right returns in the future. Of course it will take some time. 2019 will be another challenging year for us. But I think come 2020 we should be plain sailing."
"I wish we could announce higher dividends, but it is much better than announcing dividends that we cannot afford to pay," he added.
Meanwhile, LTAT's gross income was down 19.8% at RM423.9 million in the financial year ended Dec 31, 2018 (FY18), from RM528.4 million in FY17. Its unaudited net profit for FY18 stood at RM221 million, 51.9% lower than FY17's RM459.5 million.
LTAT registered positive retained earnings of RM38.7 million for FY18, compared with accumulated losses of RM170.8 million for FY17.
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