[서울=뉴스핌] Reporter Lee Jung-yoon = Woori Financial Group, in response to the recommendations of the financial authorities, reduced its dividend payout ratio (the ratio of cash dividends to net income) to 20% last year.
Woori Finance announced that it had reduced its dividend payout ratio to 20% in 2020 at a board meeting on the 5th. The dividend per share of common and preferred stock is 360 won, and the total dividend is 260 billion won. This is a 7 percentage point (p) decrease from the 27% dividend, the largest among the four major financial holdings in 2019. Therefore, the total dividend amount decreased by 2456 billion won compared to the previous year.
Earlier, the Financial Services Commission held a plenary meeting in January and decided on a’Recommendation for Capital Management of Banks and Banking Holdings for Corona 19 Response’, which stated that the total dividend should be lowered to 20% of net profit. If the economic recession prolongs due to Corona 19, the soundness of banks may also decrease.
Accordingly, KB, Hana, and Woori Finance set their dividend payout ratio to 20%, and Shinhan Finance decided to 22.7%, exceeding the recommendations of the authorities. Citibank Korea, a foreign bank, also kept the dividend payout ratio of 20%. NH Nonghyup Finance and SC First Bank plan to determine the payout ratio at the general shareholders’ meeting held at the end of this month.
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.
Meanwhile, the dividend set on this day is paid through a general shareholders’ meeting. The general shareholders’ meeting of Woori Finance is scheduled for the 26th.
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| (Photo = Woori Finance) |