The dividend policy is based on the balance of interests of the Bank and its shareholders. It is also based on the need to increase the investment attractiveness of Ak Bars Bank and its shareholder value.
The Charter of the Bank and the Statute of AK BARS Bank Dividend Policy describe the main principles of the Bank’s dividend policy, the right of shareholders to receive dividends, the protocol of deciding to pay out dividends, and the process of their payment.
The decision to pay out (announce) dividends, including their size and form, is taken by the Bank’s Yearly General Shareholders’ Meeting based on the recommendations of the Board of Directors. These recommendations take into account the interests of both the shareholders and the Bank itself from the point of view of ongoing commercial development.
The Board of Directors defines a recommended sum of dividend payments based on the financial results of the Bank’s activity at year end, but as a rule, this amounts to no less than 10% of net profit. The Bank’s Board of Directors, while defining the recommended dividend size for the general shareholders’ meeting, is also guided by net profit metrics. These metrics are calculated based on consolidated financial statements of the Bank and its subsidiaries and composed in accordance with the International Financial Reporting Standards (IFRS).
In 2018, the Yearly General Shareholders’ Meeting of the Bank decided not to pay out dividends for ordinary shares of Ak Bars Bank following the results of 2017.