The big banks UBS and Credit Suisse cut originally for this spring proposed a dividend of 2019 – at least for now. The second half of the dividend is to be paid out in the fall. The reduction of the dividend is under pressure from the Swiss financial market Supervisory authority (Finma).
UBS and Credit Suisse announced the Dividend halving practically at the same time. Both institutions have indicated in their communications that you make with your decision to the requirements of the Finma result, and that the capital and liquidity would have allowed situation, there is also a distribution in the previously planned height.
The reduction we consider in the light of the challenges of the Covid-19 pandemic, but, nevertheless, as a prudent and responsible step to the capital protection, i.e., for example, in the media release of the CS. In this way, the CS is a more comprehensive evaluation of the extent of the economic consequences in the further course of the year possible.
Second half in the autumn
more Specifically, Credit Suisse, the General Assembly requested now, a cash distribution of 0,1388 Swiss francs gross per share. The second half of the originally planned dividend should then be provided in the fall of 2020 – market and economic conditions by means of a second cash distribution to be made. This proposal must be approved by an extraordinary General meeting of shareholders.
UBS is in principle the same as the CS: she writes, although not explicitly, they will hold on to the originally planned distribution of 0.73 US dollars per share. This spring, paid only 0,365 dollars should be. In addition, a special dividend will be created a reserve of 0,365 dollars per share, as it says in the Communiqué. And their distribution will decide after the publication of the results of the third quarter, then an extraordinary General meeting of shareholders.
Finma welcomes the halving
the dividends of the big banks last week, has kindled a debate, because banks will be granted due to the corona crisis of the Finma certain facilities at the capital requirements, the so-called “Leverage Ratio”,. Specifically, the banks have to temporarily store their balance sheets with less own funds to the own funds requirements.
The Finma welcomed the UBS and CS announced Dividend halving. You can see in the precaution of the two institutions in a way that responsibly with the large uncertainties of the Covid-19-crisis and with shareholder expectations deal. This step fits in to a common and internationally co-ordinated effort by all Stakeholders to meet the challenges of the crisis, writes the Finma.
UBS expects to strike out with a 1.5 billion net income
As that one is quite able to pay, despite the corona of a crisis the shareholders a dividend, reported the UBS, a first indication of the result of the first quarter. Current we expect to record a net profit in the amount of $ 1.5 billion and with a “strong operational Performance” in all areas of the company, this is also taking into account value adjustments for credit risks, and valuation adjustments of own credit risk.
in Addition, a hard core capital ratio and a Leverage Ratio (CET1) in accordance with the objectives and significantly above the regulatory requirements is to be expected, writes UBS more. Credit Suisse made no concrete details about the business performance in the first three months of the year. (SDA/pbe)