By Pietro Lombardi 
 

Raiffeisen Bank International AG may review its dividend for 2019 following a recommendation from the European Central Bank.

The Austrian banking group, which also postponed its shareholder meeting, said late Wednesday that the dividend "may be reviewed when the financial impact of Covid-19 is more clear."

A number of European banks 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 braces for a sharp economic slowdown caused by the pandemic. For this reason, it asked banks not to pay dividends for 2019 and 2020 at least until Oct. 1, adding that lenders should also avoid buybacks.

Raiffeisen has proposed a dividend of 1 euro ($1.09) per share for 2019.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

April 09, 2020 01:49 ET (05:49 GMT)

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