Natixis press release
Natixis’ Board of Directors met today and decided to follow the recommendations made by the European Central Bank (ECB) on March 27, 2020 with regards to dividend distribution in the context of uncertainties regarding the financial impacts of the COVID-19 crisis.
As such, during the Annual General Meeting scheduled for May 20, 2020, the Board of Directors will not put up for vote the approval to pay a €0.31 dividend per share for the fiscal year 2019 and this distribution will be removed from the resolution proposal submitted by the Board of Directors to the meeting regarding the appropriation of 2019 earnings.
Consequently, Natixis will release the FY19 dividend that was so far deducted from its CET1 ratio for prudential purposes, having a positive ~100bps impact on Natixis’ capital position. Besides, in line with the current ECB recommendations, no dividend accrual will be carried out throughout 2020 from a prudential standpoint.
Natixis’ Board of Directors will reconsider this decision after October 01, 2020 in order to allow for a potential distribution depending on the prevailing situation at that time.
François Riahi, Natixis Chief Executive Officer said: “In today’s challenging circumstances related to the COVID-19 outbreak, our teams are fully mobilized to support our clients, in every business line. It is our priority today and this is why we are following the recommendations made by the European Central Bank to keep all our resources available to them over the coming months. Shareholder return remains a key feature of our asset-light model but this unprecedented context justifies taking a prudent approach and making a temporary exception to our dividend policy.”