EFG International is following the recommendation of the Swiss financial market regulator and will align its dividend policy with the current economic conditions.
EFG International, a Zurich-based private bank, will adjust the dividend proposal for the annual general meeting due on April 29. Instead of paying the dividend of 0.30 franc per share in one go, it will divide it into two equal parts. The proposed dividend split is in line with the recommendations given by Finma, the financial market supervisor as well as with current market practice.
Marc Branson, the head of Finma, in recent weeks urged banks to be prudent in their dividend policy, given the likely financial repercussions the financial market may see as a consequence of the economic slowdown.
Two Installments
UBS and Credit Suisse, Switzerland’s two largest banks, earlier in April heeded the call from Finma and announced their intention to pay the dividend in installments and private bank Julius Baer followed suit earlier this week.
The board of EFG International will propose a cash distribution of 15 cents per share out of reserves. It also intends to propose a second cash distribution of 15 cent per share to an extraordinary general meeting in the fourth quarter of 2020, subject to market and economic conditions.
