ZURICH (Reuters) - UBS Group (S:UBSG) is maintaining its previously announced dividend for 2019, the Swiss bank said on Monday, despite guidance from markets supervisor FINMA to reconsider payouts to shareholders as the coronavirus threatens the world economy.
The bank plans an ordinary dividend of $0.73 in cash per share. Voting rights at the annual general meeting on April 29 can only be exercised through the independent proxy, as shareholders will not be able to physically participate in the meeting, it added.
A week ago, FINMA Chief Executive Mark Branson said banks should use restraint with payouts, given they may need more cash later depending on the intensity of the coronavirus's economic hit.
"It is not a ban, it is an appeal," Branson said, as the Swiss government announced a 20 billion Swiss franc (16.86 billion pounds) lending program for coronavirus-hit businesses. "We are asking the boards to decide who needs the money more - Swiss clients or international and institutional investors."
Reached Monday, UBS declined to comment.
Earlier this month, Chief Financial Officer Kirt Gardner said the largest Swiss bank was comfortable with its liquidity despite market drops amidst the coronavirus pandemic.
