HISTORIC bank Rothschild & Co has said it won't propose a dividend at its 2019 annual general meeting, and warned that the coronavirus pandemic will hit its results as the virus batters businesses and markets across the world.

Rothschild yesterday said it would pay out the planned €0.85 per share for 2019 "when appropriate", but became the first major French lender to bow to pressure from the European Central Bank (ECB) to suspend dividends during the crisis.

In an update, the private bank and asset manager said there was still "considerable uncertainty" over how the outbreak would develop and the degree to which it would impact its 2020 results, but said it was clear it would have a "materially detrimental" effect.

The ECB has urged lenders to show restraint on bonuses and dividends until October in order to preserve capital and maximise lending amid the economic downturn.

(c) 2020 City A.M., source Newspaper