BCP cancels dividends and pays 5.3 million to employees
Bank led by Miguel Maya was going to pay a "conservative" dividend but cancelled shareholder remuneration due to the impact of the coronavirus. It will compensate employees with 5.3 million euros.
As ECO advanced firsthand, BCP decided to cancel the shareholder remuneration, justifying the decision with the recent crisis caused by the outbreak of the coronavirus in the country. Despite this, the bank announced that it will compensate workers with 5.3 million euros for salary cuts between 2014 and 2017.
“Due to the potential impacts and uncertainty associated with the pandemic situation, and even though the bank is part of the group of financial institutions without specific regulatory limitations regarding the distribution of dividends, the Board of Directors decided to propose to the Annual General Meeting the retention of results for the financial year 2019,” informed the bank in a press release sent to the Securities Market Commission (CMVM).
“Such a proposal aims to ensure that the bank is better prepared to face the present context of uncertainty, and the board of directors has reiterated its determination to once the crisis is over and as the bank and the national economy begin to recover, resume the approved dividend policy,” the bank adds.
From the retained earnings, the bank’s administration will propose that 14.9 million euros be transferred to the bank’s legal reserve.
In February, when Miguel Maya reported profits of 302 million euros for the 2019 financial year, he revealed that the proposed dividend would be “very conversational” and “prudent” in the face of the uncertain environment that reigned at the time. This scenario has worsened in recent weeks, with the Covid-19 pandemic closing countries and putting a serious brake on the world economy, including the Portuguese one.
Workers with compensation of 5.3 million
Even though the company has cancelled the shareholder remuneration, the bank decided to maintain the compensation to workers that, between June 2014 and June 2017, accepted a temporary reduction in salaries in order to make the bank’s recovery process feasible.
It will pay up to 1,000 euros to workers who haven’t been fully compensated with the results distributed in 2019. The bank has 5.28 million euros to give.
The proposals will be presented and put under consideration of the shareholders at the general meeting scheduled for May 20th.
