PARIS (dpa-AFX) - Credit Agricole Group (CRARF, CDA.L, ACA), comprising Crédit Agricole S.A. and Regional Banks, Thursday said its intention to pay out dividends on 2019 results is no longer compatible. The company noted that the European Central Bank has asked banks not to pay dividends as long as the coronavirus crisis persists and 'at least until the beginning of October 2020'.
The Board of Directors on February 13 had set the dividend proposed at the General Meeting for the year 2019 at 0.70 euro, up 1.4% from last year.
Due to Crédit Agricole Group's structure, 55.9% of the dividends distributed by Crédit Agricole S.A. are paid to the Regional Banks, which retain a significant part of their earnings, in order to support the economies of their territories.
Further, Crédit Agricole S.A.'s Board of Directors has decided to propose to the General Assembly of May 13 the allocation of the entire profit of 2019 to the reserves' account. This measure will improve the CET1 ratios by around 20 basis points for Crédit Agricole Group and around 60 basis points for Crédit Agricole S.A.
In Paris, Credit Agricole shares were trading at 6.53 euros, up 2.87 percent.
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