The Swiss regulator earlier this year required the country's major banks to smooth out dividend payments to avoid putting capital under pressure amid the global pandemic. Banks in other parts of the world have also dialled back payments for similar reasons.
Credit Suisse shareholders have approved the bank’s proposal to distribute a second round of dividends, at SFr0.1388 ($0.15) gross per registered share, allowing the full sum of SFr0.2776 per share to be paid in the 2019 financial year.
As previously reported, shareholders approved a split in distributions after Swiss regulator FINMA asked banks to spread out such payments amid the COVID-19 pandemic.
The latest payment will be made from 7 December, the Zurich-listed bank said in a statement on Friday. The distribution will be paid half from retained earnings and half from the capital contribution reserves.
“Based on our proven strategy, strong capital position and well-executed crisis response, and in line with our intention to increase the dividend by at least 5 per cent per annum, we had proposed to approve the second distribution of the 2019 dividend, to allow for the full distribution of the dividend for the financial year 2019,” Urs Rohner, Credit Suisse chairman said.
For a story about Julius Baer and other banks splitting dividends at the regulator's request, see here.