(Alliance News) - Bank of Ireland Group PLC said Monday it is cancelling its 2019 final dividend, and will review any further shareholder payouts later in 2020.
The Irish lender said it is following advice from the European Central Bank, which recommended not paying dividends during the Covid-19 pandemic.
Following the 17.5 euro cent dividend cut, Bank of Ireland said it will review its dividend policy in October, at the earliest.
"The group has entered 2020 maintaining a strong financial position and robust capital base. We are committed to supporting customers through the Covid-19 pandemic and we are offering a range of supports, in a responsible, prudent and sustainable way, to both business and personal customers. We recognise the critical role we play in supporting all stakeholders including shareholders," the lender added.
Bank of Ireland said the ongoing pandemic is "complex and evolving" and will "materially" hurt the bank. As a result, it is withdrawing its 2020 guidance.
Shares in Bank of Ireland were 6.8% lower in London on Monday at EUR1.84 each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Bank Of Ireland (BIRG)