At the current share price, the advance dividend payment translates to a dividend yield of 2.1%. Ex-date will be on 4 March 2020.

Ad Plastik published a document on the Zagreb Stock Exchange announcing that the company’s Management Board brought a decision on advance dividend payment in the amount of HRK 4 per share, which will be paid from the part of the net profit generated in 2019. Compared to the last year, the advance dividend is higher by HRK 1 per share. At the current share price, the advance dividend payment translates to a dividend yield of 2.1%.

Ex-date will be on 4 March 2020, while the advance dividend will be paid on 12 March 2020.

In the graphs below, we are bringing you a historical overview of the company’s dividends per share and dividend yield.

In 2019, HPB recorded an increase in net banking income of 10.8% and a decrease in net profit of 9%.

Hrvatska Poštanska Banka (HPB) published their FY 2019 results. According to the report, net interest income observed an increase of 1.2%, amounting to HRK 545.5m. Such an increase could be attributed to the solid loan growth in 2019.

Net fee and commission income observed a slight increase of 0.8%, amounting to HRK 214m. Meanwhile net banking income observed a high increase of 10.8%, amounting to HRK 842.6m. Such a high increase of net banking income could mainly be attributed to gains from financial assets held for trading which went up by HRK 59.4m. Although the bank does not give much explanation in their report to why this item went up, one can assume that such a rise came from an increase in pricing of debt securities.

Operating expenses of the bank amounted to HRK 548.2m, representing a solid increase of 9.2% YoY. Such an increase mostly came on the back of higher amortization (+67% or HRK 31m) coupled with a rise in administrative expenses by 3% or HRK 11.79m.  As a result, CIR stood at 62.6% (-2.2. p.p. YoY), which is still a bit higher compared to other regional banks.

In 2019, provisions recorded a sharp increase from HRK -16.2m to HRK 81.8m. Such a high rise came solely in Q4 when bank recorded provisions of HRK 91.65m, which resulted in a lower performance of the bottom line.

When observing net profit, one can notice that HPB recorded a decrease of 9%, amounting to HRK 141.97m.

Turning our attention to the balance sheet, as of end 2019, the company operates with total assets of HRK 22.84bn (+3.2% YoY). Of that, loans to customers account for roughly 64%, which observed strong growth of 12.5% or HRK 1.7bn. On the liabilities side, deposits amounted to HRK 20.94bn (+0.8%), accounting for 97.5% of the total liabilities. As a result of such a high loan growth L/D ratio decreased by 7.6 p.p. and stood at 73%.

In 2019, the company recorded an increase in sales of 17.5%, increase in EBITDA of 4.7% and a decrease in net profit of 1.7%.

Končar D&ST published their preliminary 2019 results on the Zagreb Stock Exchange. According to the report, the company recorded an increase in sales of HRK 1.01bn, representing an increase of 17.5% YoY. Meanwhile, operating revenues observed an increase of 13.7%, amounting to HRK 1.07bn.

Operating expenses amounted to HRK 1.02bn, representing an increase of 14.4%. Such an increase could be attributed mostly to higher material costs by HRK 85.2m and changes in inventories of work in progress and finished goods by HRK 29.3m.

In 2019, EBITDA stood at HRK 70.54m showing an increase of 4.7%. Such a result puts the EBITDA margin at 6.9% (-0.9 p.p. YoY). Going further down the P&L, operating profit amounted to HRK 48.8m, up by 1.5% YoY.

The company’s net financial result stood at HRK -0.1m, compared to HRK 1.4m in 2018, mostly as a result of lower FX gains in 2019.

As a result of such a net financial result, net profit observed a 1.7% decrease, amounting to HRK 47.8m. Such a result puts the profit margin at 4.5% (-0.7 p.p. YoY).

At the current share price dividend yield would be 4.8%, while the ex-date is 9 June 2020.

Fondul Proprietatea published the Convocation to the GSM which will be held on 28 April 2020. In the convocation, the company proposed the approval of a dividend of of RON 0.0642 per share corresponding to the 2019 financial year profit. The proposed dividend is 29% lower than the dividend paid out in 2019. At the current share price, this translates to a dividend yield of 4.8%.

Note that the ex-date is 9 June 2020, while the payment date will be 1 July 2020.

The dividend is subject to approval at the GSM.

In the graph below, we are bringing you historical overview of the company’s dividends.

Dividend per Share (RON) & Dividend Yield (%) (2018 – 2020)

In 2019, the Group recorded an increase in net banking income of 17% and an increase in net profit of 46.6%.

Banca Transilvania published their FY 2019 report. According to it, the bank recorded net interest income of RON 3.07bn, representing a strong growth of 11.8% YoY. Such an increase could be attributed to a solid loan growth. Meanwhile, net fee and commission income went up by 5.5% amounting to RON 820.3m. As a result, net banking income witnessed a strong increase of 17% YoY, amounting to RON 4.61bn.

When observing operating expenses, they amounted to RON 2.19bn (+7.7%), which mostly came on the back of higher amortization by RON 148.7m. The increase in amortization was partially offset by lower personnel expenses, which amounted to RON 1.04bn (-2.5% YoY). Consequently, the bank’s CIR stood at a comfortable 47.1%.

Going furhter down the P&L, the Group recorded a net profit of RON 1.85bn, representing a strong increase of 46.6%. Note that such a strong performace throughout the P&L could be partially attributed to the merger with Bancpost.

Turning our attention to the balance sheet, at the end of 2019 Banca Transilvania’s total assets reached RON 91.7bn. Of that loans amounted to RON 40.35bn showing an increase of 6.71%. In 2019, the Group granted roughly 223,000 loans to companies and individuals. The Bank’s new loan production was over RON 10.5bn for company clients. Meanwhile the number of active customers increased by 15%, reaching about 3.3m, following the bank’s merger with Bancpost. Note that the Group’s NPE ratio currently stands at 4.36%

On the liabilities side, deposits amounted to RON 77.04bn, which recorded a strong increase of 18.23%. Of that, retail deposits account for RON 51.67bn. Thus, L/D ratio stood at a relatively low 52.4% (-5.7 p.p. YoY), showing room for further loan growth.

As of end 2019, Banca Transilvania’s capital adequacy ratio without 2019 profit stands at 17.74%, while including the 2019 profit it would stand at 21.2%.

Dividend Proposal

Besides the financial results, Banca Transilvania published the proposal of a dividend, which is subject to approval at the GSM. The Board of Directors proposed to the shareholders the distribution as cash dividend of around 60% of the distributable retained earnings related to 2019 results.

Assuming a 60% payout ratio, the compay’s dividend would amount to RON 0.212 per share, which translates into a dividend yield of 8.6%. Such a dividend would be 25% higher compared to the one paid out in 2019.

In the graph below, we are bringing you historical overview of the company’s dividends.

Dividend per Share (RON) & Dividend Yield (%) (2016 – 2020)