According to the recommendations of the financial authorities, Woori Financial Group decided to set the dividend payout ratio (the ratio of the total dividend to the current net income) to 20% in accordance with the recommendations of the financial authorities.
Woori Financial Group held a board meeting on the 5th and made such a resolution.
The dividend per share of common and preferred stock is 360 won, and the total dividend is 260 billion won.
Earlier, the financial authorities advised financial holding companies and banks to have a dividend payout ratio of 20% or less, saying that it is necessary for financial holding companies and banks to expand their loss-absorbing capacity by reducing dividends compared to previous years as uncertainties increase due to the prolonged coronavirus outbreak.
Among the five financial holdings that were recommended, KB and Hana Financial Group cut their dividend payout by 16-20% by reducing their dividend payout ratio to ‘20%’, despite the fact that they achieved’the largest ever’ net profit, and Citibank Korea, a foreign bank. Also, the dividend payout ratio is set at a 20% level.
Only Shinhan Financial Group decided the dividend payout ratio at 22.7%, exceeding the recommendations of the financial authorities.
However, Woori Financial Group made an additional resolution on the’reduction of capital reserves’ at this board of directors.
This means that capital reserves (capital surplus based on separate financial statements) will be transferred to retained earnings to expand dividendable profits of about 4 trillion won.
Woori Finance explained, “It is intended to promote various market-friendly shareholder return policies within the scope of maintaining capital adequacy when COVID-19 is stabilized by improving capital structure as well as reducing excessive dependence on subsidiaries.”
/yunhap news
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