Ministry suggests raising Sberbank divs to 50% of IFRS net profit

MOSCOW, Jul 11 (PRIME) -- The Finance Ministry has suggested raising dividends of Russia’s top bank Sberbank to 50% of its net profit calculated under International Financial Reporting Standards (IFRS) from 25% of the net profit it paid for 2016, as seen by PRIME in materials of the ministry on Tuesday.

“It is suggested that the minimum threshold for dividend payments of 50% of the IFRS net profit cover all public companies with participation of the state, including Sberbank,” the ministry said in a draft of main directions of the budget, tax, customs, and tariff policies for 2018–2020.

The higher dividend payments will improve quality of distribution of deficit resources in the economy and expand its potential, and create equal competitive conditions, the ministry said.

On June 30, Vedomosti business daily reported citing a source close to Sberbank that the bank paid 25% of the net profit in dividends for 2016 only as it received a record net profit in the year and the supervisory board gave in to requests of the shareholders.

Previously, Sberbank CEO German Gref said that the payment of even 30% of the net profit in dividends will bear risks for the bank as it has to form a lot of reserves in 2017. Several officials told the business daily that Gref earlier had to bargain hard so that the dividends for 2016 do not exceed 25% of the net profit.

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