DIVIDEND POLICY

The Dividend Policy establishes the Bank's intention to maintain a dividend payout ratio of 20%+ of the Bank's IFRS net profit (RUB 7.9 bn for FY 2019).

The dividend amount is approved by the General Shareholders’ Meeting, as recommended by the Supervisory Board. In 2016, dividends amounted to RUB 464 mln, in 2017 – RUB 811 mln, in 2018 – RUB 1.8 bn. According to the results of 2019, the Bank plans to allocate RUB 1.6 bn for the payment of dividends.

However, 2020 Coronavirus pandemic’s impact on economic environment is significant. It creates necessity to maintain extra capital. In these conditions, following global market tendencies and in line with regulator’s measures aimed on Russian banks’ capital strengthening, the Bank’s Supervisory board took a decision to recommend AGM not to pay out dividends on ordinary shares for 2019.

Conditional on the economy stabilization the Bank intends to consider the issue of dividends in the second half of 2020.