Banks Another Finnish bank defies the ECB’s dividend recommendation: Aktia now also pays around EUR 37 million in dividends

The European Central Bank has recommended that banks not pay dividends. In a severe recession, banks ’credit losses tend to increase because not all of their customers are able to repay their loans.

Finance company Aktia’s Board of Directors announces that it has decided, based on the authorization of the Annual General Meeting, that a dividend of EUR 0.53 per share will be paid for the 2019 financial year. The total amount of dividends to be paid is EUR 36.9 million.

The decision is special in the sense that The European Central Bank has recommended banks not to pay dividends. In a severe recession, banks ’credit losses tend to increase because not all of their customers are able to repay their loans.

Dividend is the profit share attributable to shareholders, which is usually calculated from the last line of the income statement, ie the net result

Aktian The Board of Directors announces that it has reduced the dividend to the lower end of the company’s dividend policy, ie to 60 percent of the profit for the financial year. According to the Board of Directors, Aktia’s solvency and cash would have made it possible to pay the dividend in full under the authorization of the Annual General Meeting.

The Annual General Meeting had authorized the Board of Directors to decide on a dividend of EUR 0.63 per share, which would mean 71 percent of the profit for the financial year.

In accordance with its dividend policy, Aktia aims to pay a dividend of 60–80 percent of the profit for the financial year.

“Aktia’s Board of Directors has taken note of the Financial Supervisory Authority’s updated recommendation on the distribution of profits of credit institutions on 18 December 2020 and, after careful consideration, has decided to pay a dividend to its shareholders at the bottom of its dividend policy. The recommendation of the Financial Supervisory Authority is understandable in this exceptional situation, but Aktia is a solvent bank and has long been a reliable dividend payer, ”the government states in a press release.

At the beginning of January, the Bank of Åland announced that it would distribute a dividend for 2019.

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