By Pietro Lombardi
Raiffeisen Bank International AG said late Wednesday that it will propose to its shareholders the cancellation of the dividend for 2019 following a recommendation from the European Central Bank.
A number of European banks have canceled or suspended the payment of dividends after the ECB asked the region's banks not to pay dividends or buy back shares during the coronavirus pandemic.
The ECB wants banks to boost their ability to absorb losses and support the economy as the eurozone faces the economic impact of the pandemic.
The Austrian banking group said that shareholders will vote on the proposal at an Oct. 20 meeting. However, early next year the bank may consider a possible distribution out of the 2019 profits.
The bank had proposed a dividend of 1 euro ($1.18) per share for 2019.
Write to Pietro Lombardi at email@example.com; @pietrolombard10