SpareBank 1 SMN: Directors recommend dividend reduction to meet the cumulative effects of the crisis
The board of directors of SpareBank 1 SMN recommend revising the dividend payout from last year’s profit from 53.5 per cent to 41.2 per cent. New dividend is recommended at NOK 5.00 per equity certificate.
SpareBank 1 SMN’s board of directors is following the crisis in the Norwegian economy closely, and is taking the consequences for our region seriously. The board considers the recommended change in the payout ratio to reflect a good balance between the need for stability and predictability for the bank’s owners and investors on the one hand, and the group’s social responsibility towards its customers and local communities in Central Norway on the other. This recommendation further bolsters an already strong financial position, enabling SpareBank 1 SMN once again to keep its cool and to accompany personal customers and firms alike safely through the crisis.
The economic ripple effects of the crisis could be far-reaching. SpareBank 1 SMN has capital and liquidity that puts the group in a solid position, well-prepared to meet these challenges. The bank’s equity capital is well in excess of government requirements, and provides scope to absorb future losses. This robustness enables the bank to initiate immediate measures for customers experiencing problems as a result of the crisis. For example, the bank is opening the way for mortgage payment holidays and for advances of unemployment benefit. The group’s solid position enables it to maintain normal lending activity in a demanding market.
Finanstilsynet (Norway’s FSA) has asked all Norwegian banks to reappraise their distribution of net profit in light of the economic crisis that has arisen. The board has accordingly revised its original recommendation for distribution of last year’s net profit.
The original assessment was made on 5 February, before the consequences of the crisis for the Norwegian economy had arisen. At that point a dividend payout of NOK 6.50 per equity certificate was recommended, corresponding to a payout ratio of 53.5 per cent of the group’s net profit. NOK 474 million was allocated to social dividend, comprising NOK 200 million to dividend payout and NOK 274 million to the foundation Sparebankstiftelsen SMN.
In their reappraisal of the payout ratio, the board of directors emphasise that SpareBank 1 SMN should be even better prepared to safely negotiate a long lasting crisis. At the same time, the board takes heed of the government’s expectations of reduced dividend, and upholds the bank’s most important social mission which is to ensure an ample supply of capital to people and businesses in the region.
SpareBank 1 SMN also aims to be a sound investment for its owners and investors by delivering the best possible results and pursuing an attractive and prudent dividend policy. The board accordingly considers it appropriate to reduce the dividend payout to NOK 5.00 per equity certificate. This provides a payout ratio of 41.2 per cent, which is equivalent to a 23 per cent reduction on the original recommendation.
The social dividend is reduced from NOK 474 million to NOK 364 million, in keeping with the bank’s dividend policy. The reduction in the payout ratio of about NOK 300 million strengthens the bank’s financial position by about 0.3 percentage points.
CFO Kjell Fordal, phone +47 905 41 672
Head of Communications Hans Tronstad, phone +47 941 78 322
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
Nordisk næringsliv fokuserer på innovasjon og forbedring av kundeopplevelsen27.1.2020 10:00:00 CET | Pressemelding
Rapporten ISG Provider Lens™ viser at selskaper i regionen henvender seg til leverandører av digitale forretningstjenester for hjelp med analyse, kunstig intelligens og andre teknologier STOCKHOLM i Sverige, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Næringslivet i de nordiske landene fokuserer på å forbedre kundeopplevelsen og innovasjonen, og kontakter leverandører av digitale forretningstjenester for å nå målene sine. Dette viser en ny rapport som ble publisert i dag av Information Services Group ( ISG ) (Nasdaq: III ), et verdensledende teknologisk forsknings- og rådgivningsselskap. Rapporten 2019-2020 ISG Provider Lens™ Digital Business – Solutions and Service Partners for Norden viser at bedrifter i regionen omfavner teknologier som dataanalyse, kunstig intelligens, tingenes internett og blokkjeder for å levere kvalitetstjenester til kundene sine og for å skille ut seg fra konkurrenter. «Nordiske bedrifter søker transformasjonstjenester fra IT-leverandører for ikke bare å bli veiledet gje
UPM commits to UN Business Ambition for 1.5°C to mitigate climate change27.1.2020 10:00:00 CET | Press release
(UPM, Helsinki, 27 January 2020 at 11:00 EET) – UPM commits to the United Nations Global Compact’s Business Ambition for 1.5°C, joining leading companies in a promise to pursue science-based measures to limit global temperature rise to 1.5°C. UPM will strive to mitigate climate change and drive value creation through innovating novel products, committing to a 65% CO2 emission reduction and by practicing sustainable forestry. The 1.5°C ambition is a response to increasing concern about the severe consequences of a failure to stop global warming. UPM is among the first global forest industry companies making this commitment. “UPM has a unique opportunity to make a positive impact and contribute to mitigating climate change by tangible actions. We innovate climate-positive products and turn them into growing businesses. At the same time, we limit risks from climate mitigation policies and physical impacts of changing climate. This is important for the long-term value of the company,” says
Valmet to supply a board machine rebuild to Umka in Serbia27.1.2020 10:00:00 CET | Press release
Valmet Oyj’s press release on January 27, 2020 at 11:00 a.m . EET Valmet will supply a board machine rebuild to Umka Cardboard Mill in Serbia. The main target of the rebuild is to increase the customer’s production capacity. The start-up of the rebuilt paper machine PM 1 is scheduled for the second half of 2021. The order is included in Valmet's orders received of the fourth quarter 2019. The value of the order will not be disclosed. The total value of an order of this type is typically around EUR 15-20 million. "This rebuild is one of the most important strategic decisions we have made in the course of 80 years long history of the mill. We are pleased that this project is going to be completed by Valmet, a global leader in the supply of process technology in the paper industry. I strongly believe in the success and bright future of Umka Cardboard Mill, with planned capacity of over 200,000 tonnes, further quality improvements and wider product portfolio,” says Milos Ljusic, Managing D
Nordic Enterprises Focus on Innovation and Improving Customer Experience27.1.2020 10:00:00 CET | Press release
ISG Provider Lens™ report finds companies in the region turning to digital business services providers for help with analytics, artificial intelligence and other technologies STOCKHOLM, Sweden, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Enterprises in the Nordic countries are focused on improving customer experience and enhancing innovation, and they are turning to digital business service providers to achieve their goals, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2019-2020 ISG Provider Lens™ Digital Business – Solutions and Service Partners Report for the Nordics finds enterprises in the region embracing technologies such as data analytics, artificial intelligence, the Internet of Things and blockchain to deliver quality services to their customers and to differentiate themselves from competitors. “Nordic enterprises are seeking transformation services from IT providers to not only ta
Nordiska företag fokuserar på innovation och förbättrar kundupplevelsen27.1.2020 10:00:00 CET | Pressemelding
Rapport från ISG Provider Lens™ visar att företag i regionen vänder sig till leverantörer av digitala företagstjänster för hjälp med analys, artificiell intelligens och annan teknik STOCKHOLM, Sverige, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Företag i Norden är inriktade på att förbättra kundupplevelse och innovation, och de vänder sig till leverantörer av digitala företagstjänster för att uppnå sina mål, enligt en ny rapport publicerad idag av Information Services Group ( ISG ) (Nasdaq: III ), ett ledande företag inom global teknikforskning och -rådgivning. Rapporten Digital verksamhet – lösningar och servicepartners2019–2020 från ISG Provider Lens™ för Norden visar att företag i regionen anammar teknik som dataanalys, artificiell intelligens, sakernas internet och blockkedja för att leverera kvalitetstjänster till sina kunder och för att utmärka sig bland konkurrenterna. ”De nordiska företagen söker transformationstjänster från IT-leverantörer för att inte bara ta dem genom sina digitala r
Roche submits supplemental Biologics License Application to the FDA for Tecentriq in combination with Avastin for the most common form of liver cancer27.1.2020 07:00:00 CET | Press release
·Application is being reviewed under FDA’s Real-Time Oncology Review pilot programme Basel, 27 January 2020 – Roche (SIX: RO, ROG; OTCQX: RHHBY) today announced the completion of a supplemental Biologics License Application (sBLA) submission to the US Food and Drug Administration (FDA) for Tecentriq® (atezolizumab) in combination with Avastin® (bevacizumab), for the treatment of people with unresectable hepatocellular carcinoma (HCC) who have not received prior systemic therapy. The FDA is reviewing the application under the Real-Time Oncology Review pilot programme, which aims to explore a more efficient review process to ensure safe and effective treatments are available to patients as early as possible. In July 2018, the FDA granted Breakthrough Therapy Designation for Tecentriq in combination with Avastin in HCC based on data from an ongoing Phase Ib trial. “Liver cancer is the most rapidly increasing cause of cancer-related death in the United States. In the IMbrave150 study, Tece