At the current share price dividend yield is 15%.
Addiko Bank proposed their first dividend payment since their public offering last year on the Vienna Stock Exchange. The bank proposed a payment of EUR 40m, which translates into a dividend of EUR 2.05 per share, which is in line with the company’s initial dividend policy. Such a dividend was proposed as the regulator cuts SREP P2R capital add-on to 4.1% (20bp reduction from the draft SREP). Note that as of 2019, the company operates with a CAR of 17.7%
At the current share price, dividend yield is 15%, which is quite higher yield when compared to regional banks.
The dividend is subject to approval at the GSM which will be held of 21 April 2020.
Dividend Policy for 2020
Addiko announced that they reconfirm their initial guidance to distribute another EUR 40m for the year 2020, and an annual dividend payout of 60% of net profit in the following years. The distribution of any excess capital will follow the annual SREP decision (drat expected in autumn 2020) and will be included in the dividend proposal to the AGM for the respective financial year. Addiko further states that they continue to pursue its capital optimization by issuing eligible capital instruments (AT1, Tier 2) reflecting the development of future capital requirements.