THE Armed Forces Fund Board (LTAT) announced a 5% dividend for 2023, matching the rate of the previous year with a slightly higher payout. The distribution totalled RM485.08 mil, up from RM476.45 mil in 2022, benefiting 123,380 depositors.
Defence Minister Datuk Seri Mohamed Khaled Nordin affirmed the move, citing the fund’s strong financial position.
“We wouldn’t announce dividends like this if we didn’t have a strong and solid financial position,” the minister said at a press conference following the dividend announcement.
This announcement follows concerns raised by the auditor general regarding deficits in reserves from 2020 to 2022. LTAT reported negative reserves of RM338 mil in 2022, RM258 mil in 2021 and RM376 mil in 2020.
Despite these challenges, LTAT’s assets grew to RM10.77 bil. The net profit for 2023 surged 24% to RM537.80 mil compared to RM432.47 mil in the previous year. Retained earnings post dividend also saw a substantial increase, rising 52% to RM756.81 mil.
Khaled noted the dividend declaration as a testament to LTAT’s solid financial standing. The combined reserves surged to RM450.3 mil, doubling the amount from 2022.
LTAT is committed to maintaining its book solvency ratio above 100% to ensure it can fulfil its financial obligations consistently.
Moreover, the fund faced challenges in 2018 when it declared its lowest-ever dividend of 2% due to a halved net profit. An investigate audit by Ernst & Young in 2019 revealed mismanagement and irregularities spanning several years.
In response, LTAT implemented a five-year strategic plan, gradually increasing dividend rates to 2.5% in 2019, 3.5% in 2020, and 4.1% in 2021. – April 4, 2024
