Page 67 - RusRPTFeb20

8.3.2 ​ Dividends dynamics
● Oil & gas
Lukoil's shareholders approved an interim dividend of RUB 192/share
($3.00/share). The dividend record date is 20 December. Lukoil's EGM also approved a tender offer to acquire 25mn Lukoil shares (3.5% of the share capital) at RUB 5,300/share for the purpose of cancelling them.
● Banks
Russia’s biggest lender Sberbank confirmed plans to pay 50% of the net profit under International Financial Reporting Standards (IFRS) in dividends for 2019​, Deputy CEO Alexander Morozov said at an analyst day on December 11 reported Prime. “We confirm our intent to attain a dividend level of 50% right from the next year, starting with the dividends for 2019,” Morozov said. He said that Sberbank does not consider reduction of dividend payments below 50% of the IFRS net profit in the future. “The dividend policy for the next three years will become an integral part of our strategy for the next three years. And it will be presented in November–December next year. Until then, I would not like to comment but it is clearly evident that we are not thinking about reduction of (dividend payments) beyond 50% (of the IFRS net profit),” Morozov said. The current dividend policy of Sberbank envisages payment of 50% of the IFRS net profit in dividends if capital adequacy is above 12.5%.
Russia's second largest bank VTB Bank could pay 50% of its net profit in dividends already for 2019​, Interfax reported on January 21 citing the head of the bank Andrei Kostin.Previously the bank planned about RUB200bn in net profit for 2019, rising to RUB230bn in 2020, RUB270bn in 2021, and RUB300bn in 2022. For 2018 VTB paid only RUB26.8bn in dividends, which made only 15% of IFRS net profit, with the rest booked as capital. But in the end of 2019 Kostin admitted its capital reserves were still thin, and it ​could have to recapitalise in 2020​.
67​ RUSSIA Country Report​ February 2020 ​ ​www.intellinews.com