Bank of Valletta has taken the advice of the European Central Bank and recommended postponing paying a dividend to shareholders for the financial year 2019

In a statement, the bank said it is withdrawing a proposed final gross dividend of 2c6 per share.

Bank of Valletta said it will reassess the situation during the first quarter of 2021 as recommended by the European Central Bank.

BOV's board of directors had decided to recommend for approval the payment of a final gross dividend of 2c6 per share (net dividend of 1c7 per share) which, if approved by the annual general meeting, would have made for a total gross dividend for the year of €15,384,615.

The bank later decided to make the actual payment conditional to the reassessment of the situation once, as stated by the ECB in its recommendation of March 27, the uncertainties caused by COVID-19 disappear, the earliest of which would be October 2020.

BOV said on Tuesday it considered the overall situation and the ECB’s subsequent recommendation of July 31, that until January 1, no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial years 2019 and 2020, and decided to withdraw its recommendation.