MKB sets minimum dividend payout ratio at 25% of Bank's IFRS net income
MKB’s Supervisory Board approved a new Dividend Policy with changes regarding the determination of dividend size and sources of funds applied to dividend payment.
According to the new Policy, dividends are linked to the Bank's IFRS net income and are to be distributed to shareholders pro rata to the number of their shares. The Bank seeks to maintain minimum dividend payout ratio at 25% of the Bank’s IFRS net income. Recommendations to the General Shareholders’ Meeting whether to pay any dividends and in what amount are to be formulated by the Supervisory Board. In doing so, the Supervisory Board evaluates the factors set out in clause 3.6 of MKB’s DIVIDEND POLICY .
"We have decided on two issues at once: firstly, we have replaced RAS net income with IFRS net income as the basis for dividends. Secondly, we have increased the minimum payout ratio from 10% to 25%. This substantial change in our dividend payout approach stems from our willingness to adopt generally accepted international practice. This step should make MKB shares more attractive for investors and broaden the ranks and geography of our shareholders," – commented Vladimir Chubar, Chairman of the Management Board.