Exclusive: Saudi banks may suspend dividend payouts for H1 2020 | ZAWYA MENA Edition:
Earnings calls this week revealed that Saudi Arabia’s listed banks may withhold dividends for the first half of 2020.
Although some banks like Al Rajhi and Banque Saudi Fransi, which had their earnings calls on Monday, made no direct mention of withholding dividends, they indicated as much.
“Banks stated that while they were not given direct instructions to hold H1 dividends, they were asked by SAMA [the Saudi Arabian Monetary Authority] to exercise prudence when taking the decision. Banks hinted that the decision will be revisited towards year-end, implying that it is a postponement rather than a cancellation. It will then be a function of how developments evolve in H2,” Sara Boutros, Senior Analyst at Egypt-based CI Capital told Zawya.
On Sunday, rumors were rife in the market that bank dividends would be withheld on a directive from SAMA, the central bank, in lieu of the stimulus package that has been allocated to the lenders.
No comments:
Post a Comment