UniCredit puts dividend on hold
The bank will offer its shareholder foundations interest-free loans equal to the amount of the planned dividends
Stocks impacted: UniCredit SpA (UNCRY)
Italy’s biggest bank suspended a dividend payment and a share buyback after the European Central Bank on Friday recommended that lenders restrict payouts until at least October amid the coronavirus pandemic that weighs on markets. UniCredit said it was withdrawing a proposal for shareholders to approve a dividend of 63 euro cents per share and authorize a share buyback for up to 467 million euros. At the same time, the lender reserved the right to submit again to shareholders the same proposals after October 1 depending on the ECB review of its recommendation. The bank highlighted that it will offer its shareholder foundations interest-free loans equal to the amount of the planned dividends. Today, ING followed suit and said it would suspend any payment of dividends until at least October 1 as well. UniCredit stocks are trading over 5.5% lower, and ING shares are losing 8.6% on Monday.
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