EBKDY Ersta Group Bank AG (PK)

   By Joshua Kirby 
 

Erste Group Bank AG said Monday that it won't pay a conditional dividend for 2019, as doing so would run contrary to European Central Bank recommendations set at the end of last year.

The Vienna-listed bank's annual general meeting in November agreed to pay a share of 75 European cents a share for 2019, to be paid on February 15. However, in December the ECB asked banks to refrain from or limit dividends until Sept. 30, with a limit within the bottom 15% of cumulated 2019-20 profits, the bank said. The proposed dividend wouldn't be within this limit and therefore won't be paid.

However, Erste Group said it will make a dividend payment that complies with the ECB's limits following approval at the AGM in May. Once the ECB's recommendations are withdrawn, the bank will make dividend payments "appropriately, depending on capital and profitability performance."

Further details will be provided alongside preliminary 2020 results on Feb. 26, the company said.

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

(END) Dow Jones Newswires

February 08, 2021 05:27 ET (10:27 GMT)

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