Euro zone banks to cut dividends by two thirds due to pandemic -ECB
The European Central Bank expects euro zone banks to cut their dividends by two thirds this year compared to their usual payouts to cope with losses caused by the coronavirus pandemic, the ECB’s top supervisor Andrea Enria said on Wednesday.
The ECB lifted a de facto ban on dividends and buybacks this week but capped payouts, still bracing for a new wave of unpaid loans this year as the economy struggles with the outbreak and the ensuing restrictions.
Enria said supervisors expected dividend payments worth between 10 billion euros and 12 billion euros ($12.2 billion-14.6 billion) through next September, when they intend to lift the cap.
Wuermeling sees German banks halving dividends (Combines Enria, Wuermeling)
FRANKFURT, Dec 16 (Reuters) - The European Central Bank expects euro zone banks to cut their dividends by two thirds this year compared to their usual payouts to cope with losses caused by the coronavirus pandemic, the ECB’s top supervisor Andrea Enria said on Wednesday.
The ECB lifted a de facto ban on dividends and buybacks this week but capped payouts, still bracing for a new wave of unpaid loans this year as the economy struggles with the outbreak and the ensuing restrictions.
Enria said supervisors expected dividend payments worth between 10 billion euros and 12 billion euros ($12.2 billion-14.6 billion) through next September, when they intend to lift the cap.