10/14/2021 | Press release | Distributed by Public on 10/14/2021 05:17
Prague, Oct 14 (CTK) - Czech bank Komercni banka (KB) proposed a Kc4.535bn dividend payout or Kc23.86 per share from retained profits for 2019 and 2020 and shareholders will vote on the proposal online between Oct 18 and Nov 2, according to information KB made public today.
"Such amount had been expected as it is a maximum level permitted by the then rules of the Czech National Bank (CNB)," Cyrrus analyst Tomas Pfeiler told CTK.
The stricter rules of the central bank will not be in place next year and KB should pay out higher dividend, possibly Kc42 per share, he said.
Komercni set the dividend based on the CNB's rules made public this March. The total dividend amount should constitute about 15 percent of the banking sector's profit for 2019 and 2020. In 2019, the net profit of the banking sector was a record Kc90.9bn and a year later it was Kc47.51bn.
The restriction of dividend payouts from the 2019 and 2020 profits was one of the anti-coronavirus measures aimed at mitigating the impact of the large-scale lockdowns during the pandemic on the banks' results and at preserving their capitalisation to maintain the stability of the domestic banking sector.
Komercni, 60.35 percent owned by France's Societe Generale, netted Kc14.9bn in 2019 and Kc8.2bn in 2020. It ranks among leading banks in the Czech Republic and in the Central and Eastern European region. KB's shares are listed on the Prague Stock Exchange.