June 12, 2020 / 7:28 AM / 2 months ago

Nordea chairman says capital strength would motivate 0.4 euro/share dividend - DI newspaper

STOCKHOLM, June 12 (Reuters) - Nordea Bank would be able to pay a 0.4 euros per share dividend this autumn but will follow any instructions from the European Central Bank, the chairman of the Nordic region’s biggest bank said in a newspaper interview.

The ECB has asked banks to hold off on dividends and buybacks until October, but the European Systemic Risk Board (ESRB) said earlier this week the moratorium should last at least until the end of the year.

Nordea Chairman Torbjorn Magnusson told Swedish business daily Dagens Industri that the statement from ESRB was a general one, aimed to reduce dividends regardless of a bank’s capital strength.

“... one could think that is a bit unlogical. Nordea is very far above the capital requirements,” he was quoted as saying.

Nordea said in April it would decide on a dividend payment of a maximum 0.4 euros per share and that it would follow the recommendations adopted by the ECB.

“We have a capital strength which, as it looks right now, would motivate that we can pay out the 40 cents per share we had planned for,” Magnusson told the newspaper. (Reporting by Helena Soderpalm; editing by Niklas Pollard)

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