UBS has gone ahead with the decision to distribute the second tranche of its 2019 dividend, thereby becoming the first major bank in Europe to approve a full dividend for the year amid the economic slowdown triggered by the Covid-19 crisis.
The proposal of the second tranche amounting to $0.365 per share received the green light from 99.49% of the shareholders at an extraordinary general meeting.
The dividend will be distributed on 27 of this month.
The amount will be paid out of the special dividend reserve launched at this year’s annual general meeting for this purpose.
The bank said: “50% of this second distribution will be paid out of the capital contribution reserves and 50% will be paid out of retained earnings.
“The portion paid from retained earnings is subject to a 35% Swiss withholding tax.”
UBS and its rival Credit Suisse decided to delay paying out a portion of their 2019 dividends in April this year after succumbing to regulatory pressure due to the pandemic.
Julius Baer too followed the footsteps of its peers by planning to split its 2019 dividend payout into two tranches. The bank’s shareholders have already given their nod to the proposal.
In a separate development, UBS Global Wealth Management recently introduced the Athletes and Entertainers Strategic Client Segment to meet the financial needs of entertainers and professional athletes.
The new group will work alongside UBS Financial Advisors that has been providing office to clients across sports and entertainment sectors since long.
Former professional football player Adewale Ogunleye will spearhead the new segment, which targets clients in the Americas.
Ogunleye noted: “Far too often we see stories of athletes and entertainers making poorly guided financial decisions, which leads to a loss of personal wealth and trust in those who can provide sound financial advice and guidance.
“Our main priority is to change that narrative and help athletes and entertainers build a path to long-lasting financial success.”