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The bank cites two reasons why the general meeting is postponed, in part the health situation where it is difficult to hold a meeting with thousands of shareholders in times of the crown. It is not known when it will take place, but the bank suggests in June, definitely last June, according to the rules that apply.
The second reason is of greater importance: the Board of Directors notes that the previous proposal for a dividend may be reduced, even though there is no such decision now.
“To create even more space for SEB to act in the interests of customers and shareholders, the SEB Board of Directors will analyze and evaluate the situation and then evaluate the proposed dividend for 2019,” writes SEB in a press release.
Time to spend
Press chief Frank Hojem describes it as a time lapse. The Board now has more time to assess the economic crisis affecting society.
We see very strong demand from the bank’s clients, for liquidity and capital, and that is increasing, he says.
And to create even more leeway, the bank is now awaiting the situation.
And then we create a mental break. The board creates a time until June and evaluates the dividend proposal, says Hojem.
For banking analyst Andreas Håkansson at Danke Bank, the message came unexpectedly, despite the crown crisis.
I think it’s a little surprising. I think SEB was well capitalized enough to pay its dividend and it is quite possible that it will too, just because it wants to wait and see a little neighbor, he says.
It may be a healthy decision to be conservative, but I really don’t think it was necessary, he continues, adding that pressure from the finance minister, the Riksbank and the media may have been pressing.
Give footprints
The crown crisis will leave a mark on banks’ credit losses. Banks must now take changing circumstances of this kind into account when making assessments, according to financial analyst Peter Malmqvist.
There is nothing unique about SEB’s situation. However, SEB is more exposed to corporate loans than Swedbank and Handelsbanken, for example.
TT: What is your assessment, will they establish the dividend?
No, I can’t imagine that. On the other hand, they reduce the dividend to mark new conditions and meet in the barns for new times.
No new date has been decided for the Annual General Meeting. Originally, the date was set for March 23.
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