Official says VTB can pay 15% of IFRS net profit in 2018 divs

MOSCOW, Apr 23 (PRIME) -- The supervisory board of Russia’s second largest lender VTB has decided to allocate 15% of the net profit under International Financial Reporting Standards (IFRS) to dividends for 2018 and the rest in increase capital adequacy, Board Chairman Anton Siluanov told reporters on Tuesday.

“The supervisory board of VTB has decided to exclude from the general principle of allocation to dividends of 50% of profit under IFRS when deciding on 2018 profit distribution,” he said. “As a result, 15% of VTB’s net profit will be channeled towards dividends, the rest of the profit will be used to increase capital adequacy.”

He said that the capital increase by 450 billion rubles in 2017–2019 is required to meet the Basel III standards.

The official said that a new strategy of development for 2019–2022 envisages a return to payment of 50% of the net profit under IFRS in dividends for 2019.

“In accordance with the development strategy of the bank approved on April 23, it is foreseen that the bank will return to the practice of payment of 50% of the net profit in dividends to the shareholders on the results of 2019 and will fully meet all caoital standards,” Siluanov said.

(63.7860 rubles – U.S. $1)

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