Ending dividend 1,500 won per share… Financial sector “seems to pass the stress test”
Shinhan Financial Group decided to pay more or less dividends than the level recommended by the financial supervisory authorities.
Shinhan Financial Group announced on the 3rd that it held a board of directors the day before and decided the dividend at the end of 2020 to be 1,500 won per share.
The total dividend of common stock was 7738 billion won, and the payout ratio (total dividend/net profit for the current period) was 22.7%.
This is lower than the dividend payout ratio in 2019 (25.97%), but higher than the level recommended by the Financial Services Commission to pay dividends within 20% of net profit.
The Financial Services Commission issued such a recommendation as it determined that it was necessary for financial holding companies and banks to expand their ability to absorb losses by reducing dividends compared to previous years as economic uncertainty increased due to the prolonged corona19 crisis.
In response to Shinhan Financial’s decision, the financial sector observed that “the authorities left the dividend policy of financial institutions that passed the’stress test’ assuming a prolonged economic downturn to voluntary, but it was decided based on that standard?” Is coming out.
Among the five major financial holdings, KB and Hana Financial Group, which had already decided to pay dividends last month, cut their dividend per share by 16-20% and decided their payout ratio to 20% as recommended by the authorities.
On the 2nd, Citibank Korea, a foreign bank, also set its dividend payout ratio to 20%.
/yunhap news
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution