VTB Supervisory Council issues dividend recommendation


VTB Supervisory Council recommends the Annual General Shareholders’ Meeting of the Bank to approve the distribution of 15% of the Bank’s 2018 Net Profit under IFRS as total dividends for 2018, and retain the remaining part of the Net Profit to support its capital adequacy. The decision came as a response to higher capital adequacy requirements set by the Bank of Russia for systemically important banks in line with introduction of Basel III standards.

Thus the Supervisory Council recommended to the Annual General Shareholders’ Meeting to pass a resolution to pay dividends in the amount of RUB 26.8 billion including:

  • RUB 14.2 billion for ordinary shares, or c. RUB 0.001099 per one share with a nominal value of RUB 0.01;
  • RUB 5.2 billion for Type 1 preference shares, or c. RUB 0.0002413 per one share with a nominal value of RUB 0.01;
  • RUB 7.4 billion for Type 2 preference shares, or c. RUB 0.002413 per one share with a nominal value of RUB 0.1.

The above dividends for each share type for 2018 were calculated based on concept of equal dividend yield for all three categories of shares, the dividend yield for 2018 was fixed at 2.4 per cent. Dividend yield on ordinary shares was calculated based on average daily price on the Moscow Exchange in 2018, while for preference shares it was calculated based on the nominal value for both types of preference shares.

VTB’s undistributed Net Profit for 2018 in the amount of RUB 192.5 billion will be utilized to support business growth and capital adequacy levels in line with the requirements of the Bank of Russia.

The Supervisory Council also recommended to the Annual General Shareholders’ Meeting to set 24 June 2019 as the record date for determining the list of persons eligible for 2018 dividend payment.

First Deputy President and Chairman of VTB Bank Management Board Dmitriy Olyunin said: “This year, VTB intends to scale down dividends and retain most of its 2018 profits to strengthen our capital base against the backdrop of stricter regulatory requirements. We strongly believe that this decision will ensure further robust business growth and higher profitability, and will ultimately pave the way towards a substantial increase of dividend flow in the years to come.”