BRD opts for low dividend payout ratio after 37% profit drop in 2020
Romania's third-biggest lender by assets, BRD-Societe Generale, proposed shareholders to distribute dividends worth only RON 52 million (EUR 10.6 mln), namely 5.5% of the RON 951 mln (EUR 195 mln) net profit reported for 2020. Therefore,…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Romania's third-biggest lender by assets, BRD-Societe Generale, proposed shareholders to distribute dividends worth only RON 52 million (EUR 10.6 mln), namely 5.5% of the RON 951 mln (EUR 195 mln) net profit reported for 2020. Therefore, the dividend yield will be only 0.5%.
The bank's shares dropped by 2.4% - more than double the drop in the blue chips' index BET - on February 10, when BRD announced the proposed dividend.
The bank's management pointed to the central bank's recommendations that the dividends should not exceed 20% of the banks' Tier 1 own funds.
BRD-Societe Generale reported a net profit of RON 952 mln last year, 37% lower than RON 1.5 bln in 2019.
Its operating revenues fell to RON 2.9 bln (EUR 595 mln) in 2020, from RON 3.1 bln in 2019.
Net interest income decreased slightly, by 2.9%, to RON 2.08 bln, being mainly influenced by the lower interest rates and the thinner origination of loans during the period of restrictions, BRD-Societe Generale's report reads.
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