BRD grants 48m-euro dividends. SIFs set to collect 12m euros

BRD-SocGen, the second largest bank on the domestic market, proposed a dividend of 0.2795 RON/share to its shareholders, down over 60% from last year. The total value of dividends stands at 195m RON (48m euros) and accounts for 25% in the net preliminary income reported for last year, which reached 792m RON. These are the lowest dividends BRD has distributed in the past five years. French Societe Generale group, controlling the majority stake of 60% in BRD stock, will cash in around 117m RON (28.5m euros), while financial investment companies (SIFs), holding together 25%, will receive almost 49m RON (12m euros). Despite the lower proposed dividend, BRD shares were yesterday traded on the Bucharest Stock Exchange at around the price of the previous day, of 15.2 RON. Investors were, however, expecting a cut in BRD dividend, given that most banks and listed companies are trying to retain as much cash as possible and strengthen their capitals.