Italy's UniCredit puts 2019 dividend, share buyback on hold after ECB recommendation
Reuters
Published Mar 29, 2020 05:44PM ET
MILAN (Reuters) - Italy's biggest bank, UniCredit (MI:CRDI), said on Sunday it was putting on hold plans to pay dividends on 2019 results and to buy back shares to meet regulatory calls to preserve capital to support the economy against the coronavirus.
The European Central Bank told euro zone banks on Friday to skip dividend payments and share buybacks until the start of October at the earliest and use profits instead to boost capital and their ability to withstand losses and to lend.
UniCredit said it was withdrawing a proposal to shareholders, who are due to meet on April 9, to approve a dividend of 63 euro cents per share and authorize a share buyback for up to 467 million euros ($520 million).
The bank said it reserved the right to submit again to shareholders the same proposals after Oct. 1 depending on the ECB review of its recommendation.
The bank's core capital is set to rise by 0.37 percentage point following the decision not to distribute part of last year's profits as dividends, it said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.