Dividend Policy

Pursuant to the Faroese Companies Act, a general meeting must authorise the distribution of dividends on the basis of the adopted annual financial statements for the most recent financial year. The shareholders in the general meeting cannot authorise a payment of dividends exceeding the amount recommended by a company’s board of directors.

 

Effective from 2016, however, the Board of Directors will target an ordinary dividend of approximately 40% of net profit. In addition to ordinary dividends, BankNordik will aim to optimize its capital structure through the conduct of share buy-backs and extraordinary dividends. These measures will take into consideration BankNordik’s growth outlook, the CET1 capital ratio target of 13% and the solvency target of 16.5%.

 

Going forward, BankNordik will continuously monitor the regulatory landscape to anticipate and adapt to impending capital requirements. As such, the Group is likely to re-evaluate its dividend policy and capital ratio targets once the requirements related to the MREL will become known.