Societe Generale sticks to no-dividend policy at Romanian subsidiary

French financial group Societe Generale rejected the proposal for dividends made by the management of its Romanian subsidiary BRD-SocGen.

The group decided that, in line with the European Central Bank's recommendations, BRD should keep the entire net profit registered in 2019.

The shareholders of BRD-SocGen approved on Thursday the proposal to allocate the 2019 net profit in the amount of RON 1.53 billion (EUR 315 mln) to the retained earnings account, the bank said in a press release at the Bucharest Stock Exchange, local Ziarul Financiar reported.

The BRD board of directors had proposed a gross dividend of RON 1.64 per share, similar to that paid in the last two years, which would have resulted in a dividend yield of 14.3%, based on the current market price. The proposal was rejected, however.

Societe Generale holds 60% of BRD's shares.

(Photo source: Shutterstock)