At the share price a day before the proposal, dividend yield is 5%, while ex-date is 17 June 2024.

The shareholders of Triglav approved the initial proposal of the Management Board regarding the  dividend payment. To be specific, the approved dividend is EUR 1.75 per share. The total amount of dividends amounts to EUR 39.8m. We note that the company has been a consistent dividend payer prior to the pandemic, paying out EUR 2.5 per share for 5 consecutive years (as visible on the graph below). However, this year was influenced mainly by the price regulation of supplemental health insurance and CAT claims, resulting in net profit that was below the original plan. Taking everything into account, the appropriate level of capital adequacy is maintained with the proposed dividend amount.

At the share price a day before the proposal, dividend yield is 5%, while the ex date is set for 17 June 2024. The payment date is set for 19 June 2024.

Dividend per Share (EUR) and Dividend Yield (%) (2014 – 2024)

Source: LJSE, InterCapital Research

By the end of April 2024, the Croatian pension funds recorded a NAV of EUR 21.1bn, decreasing slightly by 0.1% MoM, but growing by 15% YoY.

According to the latest data released by the Croatian Financial Services Supervisory Agency, i.e. HANFA, the Croatian pension funds NAV decreased by 0.1% MoM, but grew by 15% YoY in April 2024, amounting to EUR 21.1bn.

Unlike mutual funds where net redemptions are also possible, due to the way that the Croatian pension system is organized, pension funds have stable inflows into them. In April, the net contributions into the funds amounted to EUR 124.6m, with the majority, or 83.8% going towards the B Category of the pension funds, followed by 10.3% into the A Category, and 5.9% into the C category. Meanwhile, in the last twelve months ending in April, the net contributions amounted to EUR 1.34bn. If we look at the absolute change in the NAV of the funds, on the MoM and YoY basis amounted to EUR -28.7m and EUR 2.76bn, it is apparent that on the monthly basis, the decline came from the change in the underlying value of the assets in the funds, while on the YoY basis, the net contributions made up 49% of the growth in NAV.

Net contributions into the Croatian pension funds (January 2019 – April 2024, EURm)

Source: HANFA, InterCapital Research

In terms of the change in the value of the assets of these funds, on the MoM basis, the largest increase was recorded in deposits and cash, which grew by EUR 151m, or 20%. Following them there are bonds at EUR 118m, or 1%. On the other hand, the largest decrease was recorded in the receivables category, which declined by EUR 211.5m, or -84%, followed by a decrease in inv. funds at EUR 64m, or -6.5%, as well as shares at EUR 64m, or -1.3%.

Meanwhile, on an annual basis, the largest increase was recorded in bond holdings, which grew by 13.7%, or EUR 1.57bn, followed by shares at 18%, or EUR 974m, deposits and cash, which grew by 29%, or EUR 206m, as well as investment funds, which increased by 6.3%, or EUR 126m. On the other hand, money market holdings decreased by EUR 51m or 20% YoY.

Croatian mandatory pension funds AUM structure change (January 2018 – April 2024, EURm)

Source: HANFA, InterCapital Research

Turning our attention to securities and deposits, in total they amounted to EUR 16.3bn, growing by 0.3% MoM, and 12% YoY. Breaking these down into domestic and foreign securities and deposits, on a monthly basis, domestic securities and deposits increased by 0.6%, or EUR 91m, while foreign securities and deposits declined by 2.5%, or EUR 50m. Meanwhile, on an annual basis, domestic securities and deposits increased by EUR 1.43bn, or 11%, while foreign securities and deposits grew by EUR 317.5m, or 12%.

Lastly, taking a closer look at the current asset structure of the pension funds, bonds still account for the largest share in the total assets at 61.6%, growing by 0.64 p.p. MoM, but declining by 0.71 p.p. YoY. Next up, there are shares at 23.2%, recording a decrease of 0.27 p.p. MoM, but an increase of 1.81 p.p. YoY, as well as investment funds at 10.1% of the total, with a decrease of 0.69 p.p. MoM, and 0.84 p.p. YoY.

Current AUM of Croatian mandatory pension funds (April 2024, % of the total)

Source: HANFA, InterCapital Research