Last week, Banca Transilvania OGSM & EGSM were held, during which the cash dividend of RON 1.252 DPS was approved, as well as the stock dividend of 14.8 new shares per 100 existing shares held. When combined, this would imply a DY of 19.3% at the share price before the initial proposal. In this overview, we give you the details.

Starting off with the cash dividend, during the OGSM held last week, Banca Transilvania’s shareholders approved a cash dividend of RON 1.252 DPS, which at the share price before the announcement would imply a DY of 4.5%. In total, this would mean that the dividend payment would amount to RON 1bn, from the net profit reserves of the year 2023. The ex-date is set for 11 June 2024, while the payment date is set for 26 June 2024.

Banca Transilvania dividend per share (RON) and dividend yield (%) (2019 – 2024)

Source: Banca Transilvania, InterCapital Research

Furthermore, during the EGSM, the shareholders approved the share capital increase of the Bank. This will be done through the capitalization of reserves from the net profit of the year 2023, in the amount of RON 1.18bn, by issuing 118.2m shares with a nominal value of RON 10/share. These shares will be granted to shareholders, in such a way that for every 100 existing shares held, 14.8 shares will be awarded. As such, this could be considered a stock dividend, with a DY of 14.8% at the share price before the announcement. The ex-date for this resolution is set for 18 July 2024.

When the cash and the stock dividend are combined, we get a DY of 19.3% at the share price before the announcement, also making it the largest DY currently offered by the BET constituents. If you would like to read more about this news, as well as the other resolutions, you can click here.