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Credit Suisse (CS) Shareholders Approve Second 2019 Dividend

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Credit Suisse’s (CS - Free Report) shareholders have approved payment of the second and final dividend of CHF 0.1388 per share for 2019, despite the coronavirus pandemic-induced economic uncertainty.  

The payout will be made half out of retained earnings and remaining from the capital contribution reserves. The payment of the cash distribution will be made from Dec 7, 2020.

Urs Rohner, chairman of the board of directors at Credit Suisse, said “Based on our proven strategy, strong capital position and well-executed crisis response, and in line with our intention to increase the dividend by at least 5% per annum, we had proposed to approve the second distribution of the 2019 dividend, to allow for the full distribution of the dividend for the financial year 2019.”

This April, on a request from the Swiss Financial Market Supervisory Authority, amid the continuous spread of coronavirus in Switzerland, Credit Suisse had agreed to pay the dividend of CHF 0.2776 for the financial year 2019 in two instalments. The bank had paid CHF 0.1388 in May.

However, the bank suspended its CHF 1.5-billion share buyback plan for 2020 in April as the pandemic continued to disrupt economic conditions.

UBS Group (UBS - Free Report) too paid dividend in two installments and was the first European bank to pay the full-year 2019 dividend after receiving the approval of majority shareholders.

Among others, Barclays (BCS - Free Report) , Royal Bank of Scotland , HSBC Holdings, Standard Chartered and Lloyds Banking Group also suspended their outstanding 2019 dividend payments when the pandemic was at its peak in March and April.

Shares of Credit Suisse have gained 39.8% over the past six months compared with the industry’s growth of 28.2%.

Currently, the company sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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