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EFG International has become the recent Swiss bank to comply with FINMA’s suggestion and revise its dividend payout proposal amid the Covid-19 pandemic.
The private bank originally planned to pay its 2019 dividend of CHF0.30 per share at once.
Now it will pay the dividend in two equal tranches.
In the annual general meeting scheduled on 29 April 2020, the bank will propose a distribution of CHF0.15 per share out of reserves.
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By GlobalDataThis will be followed by a second cash distribution of equal amount that will be proposed in an extraordinary general meeting in Q4 2020.
The bank stated: “With the proposed amendment, which is supported by EFG International’s two main shareholders, the Board of Directors of EFG International follows similar decisions taken within the financial industry and supports the prudent coronavirus (COVID-19) approach of capital preservation.
“The Board of Directors remains committed to maintaining the bank’s continued strong capital and liquidity position, whilst acting in the best interests of all stakeholders.”
Recently, Julius Baer adopted a similar approach and agreed to split its 2019 dividend of CHF1.50 into two tranches.
The bank made the revision while stressing that it has strong capital, funding and liquidity position.
UBS and Credit Suisse also bowed down to regulatory pressure and agreed to pay their 2019 dividends in installments.
