Societe Generale’s Romanian subsidiary reconsiders dividend distribution
French financial group Societe Generale, which owns 60.2% of BRD - Groupe Societe Generale (BRD), Romania’s third-biggest lender, has decided to keep the entire profit achieved by BRD in 2019 (some EUR 320 million) in the reported result…
Romania Insider · Journalist
· Updated · 1 min read
French financial group Societe Generale, which owns 60.2% of BRD - Groupe Societe Generale (BRD), Romania’s third-biggest lender, has decided to keep the entire profit achieved by BRD in 2019 (some EUR 320 million) in the reported result account.
A proposal with this end was submitted in the view of the general shareholder meeting of April 23. BRD’s shares plunged by nearly 6% in half an hour after the opening of the trading in Bucharest and the loss deepened through the day.
Initially, BRD’s management had proposed a dividend equivalent of a 14% gross yield calculated for the price of the bank’s shares before the announcement on Wednesday, April 1.
Societe Generale explained its proposal was due to the high uncertainty regarding the long-term economic consequences of the Covid 19 pandemic and BRD’s strong commitment to support Romania’s economy during this difficult period.
BRD’s market value on the Bucharest Stock Exchange was about EUR 1.7 billion at market closing on Wednesday, EUR 100 mln lower than the previous day.
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