Erste Group has to adjust dividend for 2019
10.02.2021Company: Česká spořitelna, a.s.
On 10 November 2020, the Annual General Meeting of Erste Group had resolved to pay a dividend of EUR 0.75 per share for the financial year 2019. The condition agreed upon at the time: there must be no regulatory recommendation or legal restrictions in place on 8 February 2021 that would counteract this decision.
However, that is now the case: this past December, the European Central Bank (ECB) asked banks to suspend or limit dividend payments until 30 September 2021. According to the ECB, dividend payments may neither exceed 15% of accumulated profits for 2019 and 2020 nor exceed 20 basis points of the CET1 ratio.
Erste Group CFO Stefan Doerfler: "We stick to our belief that our shareholders should receive an appropriate dividend. They have believed in us by investing their money in us. Accordingly, we will propose a dividend payment in line with regulatory recommendations at the AGM in May 2021."
Once the ECB recommendation is revoked, Erste Group will -- taking into account its capital and profitability performance -- reevaluate how to remunerate shareholders appropriately. Further details will be provided along with publication of preliminary FY2020 results on 26 February 2021.
Tags: Finance |
