Credit Suisse (NYSE:CS) will split its dividend into two separate payments, it says, and it’s confirming current guidance.
In response to a request from Switzerland’s Financial Market Supervisory Authority, Credit Suisse’s board is proposing that instead of a total dividend of 0.2776 Swiss francs per share as it announced on March 25 (678M francs in aggregate), it will distribute 0.1388 Swiss francs/share (half of that from retained earnings, half from capital contribution reserves).
It plans to propose a second equally sized cash distribution in the fall, subject to approval of a special meeting at that time.
The board thinks the company’s financial strength would have supported the original proposal but are moving as a “prudent and responsible step” amid the COVID-19 pandemic.
It’s also confirmed its summary guidance from a March 19 trading update and its March 25 annual report (it noted overall private banking revenues in Wealth Management are up year-over-year on higher transaction revenues, and teams across the Markets businesses have delivered “significantly higher” sales and trading revenues quarter-to-date).