Malayan Banking Bhd (Maybank) is set to acquire the remaining stake in Maybank Ageas Holdings Bhd, fully consolidating its insurance arm, Etiqa, into the group.
The move is expected to increase the lender's earnings by approximately 2% and improve its overall return on equity (ROE), according to reports from New Straits Times.
The acquisition eliminates the minority interest previously held by Ageas, allowing Maybank to capture the full profit stream from its insurance operations.
For investors, the transaction represents a tangible step in the bank's strategy to optimize its capital structure and enhance shareholder returns through vertical integration.
The projected lift in ROE suggests that the insurance segment is viewed as a value-accretive asset once fully owned.
This development aligns with a broader trend among Asian financial institutions to streamline their joint venture structures and bring key growth engines under direct control.