EFG Revises Dividend Payout Plans
The Swiss private bank follows similar moves by Julius Baer, UBS and Credit Suisse, after calls by Finma to preserve capital for crisis times.
EFG International will stagger its dividend payout over two tranches, the Zurich-based private bank said in a statement on Wednesday.
The bank originally planned to pay 0.30 CHF ($0.31) per share to investors, but under the new proposal, this will be distributed in two equal installments, with the latter to take place after a proposal during an Extraordinary General Meeting in the fourth quarter of the year, subject to market and economic conditions.
«The Board of Directors remains committed to maintaining the bank's continued strong capital and liquidity position, whilst acting in the best interest of all stakeholders,» the bank said in the statement.
Move Follows Other Swiss Banks
Other Swiss banks have already announced amendments to their dividend payouts: UBS was to pay $0.73 per share but is instead proposing a $0.365 per share payout next month, and then a special dividend reserve in the same amount at year-end, it said in a statement on Thursday.
Credit Suisse's proposal is similar: instead of the 0.2776 Swiss francs per share, it will pay 0.1388 francs per share now, half from profits and half out of the capital contribution reserves, and the other half in the fall, subject to conditions.
Julius Baer will split its payout of 1.50 francs ($1.55) over two payments: in May and – provided no «drastic change in circumstances» – in November.
Regulator Intervenes
Mark Branson, the head of the Swiss Financial Market Supervisory Authority (Finma) previously urged banks and insurers to rein in shareholder payouts, warning of a «ferocious» storm ahead.
He said financial services firms to do more to cushion against economic havoc, especially with the Covid-19 pandemic wrecking havoc on the global economy.
