The Dividend Policy establishes the Bank's intention to maintain a dividend payout ratio of 20%+ of the Bank's IFRS net profit (RUB 10.8 bn for FY 2020). The dividend amount is approved by the General Shareholders Meeting, as recommended by the Supervisory Board.
However, the 2020 coronavirus pandemic’s impact on the economic environment is significant. It creates a necessity to maintain extra capital. In these conditions, following global market tendencies and in line with the regulator’s measures aimed at strengthening Russian banks’ capital, the Bank’s Supervisory Board decided to recommend AGM not to pay out dividends on ordinary shares for 2019.
Conditional on the economy stabilization the Bank communicated an intention to consider the issue of dividends in the second half of 2020.
In accordance with its promises and taking into account the stable financial position of the Bank, as well as the limited impact of the pandemic on its activities compared to the initial expectations in spring 2020, on October 22, 2020, the Supervisory Board decided to recommend to the Extraordinary General Shareholders Meeting of PJSC “Bank “Saint-Petersburg” to pay dividends.
BSPB summed up the results to the Extraordinary General Shareholders Meeting of Bank Saint Petersburg held on November 30, 2020 in a form of remote voting, following the regulator’s recommendations.
Bank’s shareholders took a decision regarding the order of dividend payout. Dividends will be paid out in the amounts as follows (the dividend payout amount calculated based on 20% of IFRS FY 2019 net income):
The source of payout is retained earnings. Total dividend payout amounts to RUB 1.6 bn.