LEMBAGA Tabung Angkatan Tentera (LTAT) has announced a dividend of 2% for its members for the financial year (FY18) ending December 31, 2018. 

Speaking at a media conference today, LTAT chief executive Nik Amalizan Mohamed said the dividend was based on the earnings obtained for FY18 despite a substantial decrease of 51.9% to RM221 million. 

“The significant decline for FY18 was a result of various factors dating back two financial years.

For FY17, LTAT registered a positive retained earnings of RM38.7 million compared with an accumulated losses of RM170.8 million for FY16,” she said. 

She added that the restatement premature income recognition of RM238.8 million in FY16 from two uncompleted land sales which resulted in the requirement to restate LTAT income for FY16 from RM595 million to RM356.2 million. 

In addition, a premature account recognition of RM202.7 million due to two other uncompleted land sales in FY17 resulted in the income restatement for FY17 from RM662.2 million to RM459.5 million. 

“There has also been an overpayment of dividend for FY16 and FY17, which has impacted the return earnings which caused it to nosedive from RM384.7 million to RM65.9 million in FY16. 

“Retained earnings for FY17 further dropped to an accumulated loss of RM170.8 million from positive retained earnings of RM65.9 million previously,” she said. 

Asked if LTAT was planning to dispose of any of its core assets to boost cash flow, she said that it is premature to conclude, citing any decision would be made in the best interest of its members.

As of December 31, 2018. LTAT’s total asset under management was RM9.4 billion. – September 30, 2019.