Dividend

Dividend policy aimed at self funding business growth and paying excess capital to shareholders:

  • Target Total Capital ratio level of 15%, well above the SREP requirements
  • Earnings of the period retained to maintain the 15% Total Capital ratio target and pay-out the portion of the net income of the year in excess of the 15% TC ratio threshold
  • No obligation to pay a minimum DPS or pay-out ratio every year
  2016* 2017 2018 2019
DPS € 42.400 € 0.492 € 0.539  

Pay-out ratio (DPS/EPS**)

99.98% 87.59% 99.50% 76.02%
Cash dividends accrued in the year (€m) 72.13 83.69 91.75 70.87***
Ex-dividend date 13/03/2017 09/04/2018 01/04/2019  

Average closing price of BFF share in the year

- € 5.383 € 5.293 € 5.063

Closing price of BFF share before ex-dividend date

- € 5.880 € 5.425  

Dividend yield (DPS/Average price in the year)

- 9.1% 10.2% 8.2%

Dividend yield (DPS/Price before ex-dividend date)

- 8.4% 9.9%  

 

* The number of issued shares was 1,701,074.

** EPS is calculated on the consolidated reported net income.

*** As indicated in the press release issued on 31st March 2020, the Board of Directors of BFF resolved to comply with the recommendations of the European Central Bank (ECB) and Bank of Italy (addressed to all Italian banks) to refrain from making any irrevocable commitments for dividend payments for the financial years 2019 and 2020, and, in any case, to not distribute dividends prior to 1st October 2020, after the reassessment of the COVID-19 emergency. The Board resolved to adopt Option 1 indicated by the ECB, namely confirming the dividend policy, but making the 2019 dividend distribution proposal conditional to the resolution of the COVID-19 emergency. Therefore, the €70.9m of 2019 Expected Cash Dividend have not been included in the regulatory capital calculations for both FY19 and 1Q20.