At the current share price, the dividend yield is 3.8%.

Earlier this morning, NLB Group published the convocation to the GSM according to which the Management and the Supervisory Board proposed a dividend distribution of EUR 50m. This translates into a dividend of EUR 2.5 per share, indicating a dividend yield of 3.8% per share.

We note that the ex-date is 24 June, while dividends shall be paid on 28 June 2022 to the persons who are registered as the shareholders of NLB with the Central Securities Clearing Corporation on the day that is 5 working days after the day of the General Meeting that adopted this resolution (27 June 2022, Cut-Off Day). The dividend is subject to approval at the GSM which will be held on 20 June 2022.

We note that the Company has published its 2022 outlook in 2021 FY results where it expects to pay out EUR 100m as a dividend that is subject to legal remedies against the adopted Swiss francs law and its potential impact on the capital position.

The Bank is aware of the importance of dividend payments as the chosen method of returning capital to owners, so it intends to continue to communicate planned dividend payments in a clear, reasoned, and timely manner. The proposed change in the frequency of pay-outs does not in any way alter the Bank’s intention to pay out EUR 100m 2022, at the same time allowing corporate actions to be adjusted to market conditions at a given time.

NLB Management Board and NLB Supervisory Board propose to the General Meeting the payment of dividends of EUR 50m. In addition, the shareholders shall decide on the payment of the remaining EUR 50m at a new General Meeting, presumably in the last quarter of 2022. The planned EUR 100m for dividend payment from the profit generated in 2021 is not included in the capital base and the payment will not affect the NLB Group capital ratios.

NLB Dividend Per Share (EUR) and Dividend Yield (%) (2019 – 2022)