Pursuant to the Faroese Companies Act, a general meeting must authorize the distribution of dividends on the basis of the adopted annual financial statements for the most recent financial year. The shareholders at the general meeting cannot authorise a payment of dividends exceeding the amount recommended by a company’s board of directors.
Effective from 2018, the Board of Directors will target an ordinary dividend of 20-40% of net profit. In addition to ordinary dividends, BankNordik will aim to optimize its capital structure through share buy-backs. Any such measures will be subject to BankNordik’s growth outlook, the CET1 capital ratio target of 17% and the total capital target of 20%.