The banks is not going to return to distributing dividends in accordance with their regular dividend insurance policies, and can once more suffice with diminished dividends. Supervisor of Banks Daniel Hahiashvili despatched a letter immediately to the heads of the banks telling them to contemplate the implications of the safety scenario in setting their dividends. So whereas, on common, the banks normally distribute 40% of their quarterly earnings, they’re anticipated to maintain their dividends at 20% of earnings for the second successive quarter.

“The current geopolitical situation makes necessary continued conservative and rational examination of capital planning, dividend distribution policy, and share buybacks, taking into consideration actual capital ratios and the capital cushions required in the various possible scenarios,” Hahiashvili writes. He provides, nevertheless, that “alongside the uncertainty in our region, the banking system continues to show financial strength.”

Published by Globes, Israel enterprise information – en.globes.co.il – on May 16, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

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