Govt expects VTB Bank to pay 10% of profit in dividends for 2019

MOSCOW, Aug 5 (PRIME) -- The Russian government expects the country’s second largest bank VTB to pay 10% of its net profit calculated under International Financial Reporting Standards (IFRS) in dividends for 2019, according to a ruling published on the website for disclosure of legal information on Wednesday.

“While preparing draft orders to representatives of Russia for participation in an annual general meeting of shareholders and in a meeting of the supervisory board of VTB Bank, the Finance Ministry and the Federal State Property Management Agency … while considering an agenda issue about distribution of the profit … for 2019 to stipulate that the sum of dividend payments should account for 10% of the net profit of VTB Bank … for 2019,” the ruling read.

VTB paid 26.8 billion rubles, or 15% of the net profit under IFRS, in dividends for 2018. Dmitry Pyanov, a member of the management board, said in February that the bank planned to continue paying 50% of the IFRS net profit in dividends after 2020, maintaining the yield on ordinary and preferred shares equal.

The Federal State Property Management Agency owns 60.93% of the bank’s ordinary shares, while the rest is in free float. The Finance Ministry and the Deposit Insurance Agency (DIA) own all preferred shares of type 1 and type 2, respectively, so the combined government ownership of the bank’s shareholder equity amounts to 92.2%.

(73.3806 rubles – U.S. $1)

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