Politico: Total dividends of Greek banks at 840 million euros

According to an article in Politico, citing Greek banking sources, the European Central Bank is expected to give the go-ahead in June for the four systemic lenders.

Greek banks are expected to get the ECB’s approval for €840 million in dividends, ending a wait of 15 years for shareholders since their last payout, a Greek banking source told Pro Morning Central Banker (MCB) Europe.

NBG payouts will be capped at 20 to 25 percent of the lenders’ 2023 profits, Piraeus Bank is expected to return 10 percent of its profit to shareholders, Alpha Bank 20 percent and Eurobank 25 percent, all in line with the banks’ own guidance, the source said. National Bank of Greece shareholders will have to lower their expectations, as the ECB is only likely to let it pay out 25 percent of its profits, below the 30 percent the bank guided for in March.

The payouts of the four systemic lenders will be smaller than for most of their European peers, as the supervisor still has concerns about the quality of their capital. Around 40 percent of the groups’ capital is in the form of deferred tax credit (DTC), which the ECB sees as lower-quality equity.

The banks haveubmitted their three-year plans to the ECB, which will evaluate them before giving them the green light. A final decision will be communicated in June, a second source familiar with discussions told MCB.