Russia's VTB may pay 50% of net profit in 2020 dividends on ordinary shares, sources say

50% of its net profit in dividends on last year results


MOSCOW- Russia's second biggest bank VTB may pay 50% of last year's net profit in dividends on ordinary shares but the payout for preferred shares may come slightly lower, three sources familiar with the talks told Reuters on Thursday.

VTB's ordinary shares are owned by the state property management agency, or Rosimushestvo, and minority shareholders, while preferred shares of two types are held by the Deposit Insurance Agency and the finance ministry, respectively.

Sources said that VTB's management board is set to recommend paying 50% of last year's net profit in dividends on ordinary shares, delivering on its earlier promise, while payments on the both types of preferred shares may come a little lower.

The supervisory board is set to discuss dividend payments at its meeting on Friday, and discussions with the government over dividends on preferred shares are ongoing, sources said.

VTB declined to comment and the finance ministry did not reply to Reuters requests for comments.

(Reporting by Tatiana Voronova; Writing by Katya Golubkova; Editing by Edmund Blair and Bernadette Baum) ((; +7 495 775 1242;))

More From Equities