BBVA will seek shareholder approval to reduce capital by up to 10%
MADRID (Reuters) – Spain’s BBVA said on Monday it would seek shareholder approval to reduce the bank’s share capital to 10% in order to proceed with the previously announced share buyback.
“Once this agenda item has been approved by the AGM (April 20), the board of directors may or may not proceed with the repurchase and subsequent reduction of shares, in one or more times,” said BBVA said in a statement.
In January, the bank announced plans to repurchase around 10% of its shares, worth around € 3.1 billion ($ 3.70 billion) at current market prices, following the the sale of its US operations for $ 11.6 billion to PNC in November.
The lender clarified that this buyout would not take place before the closing of the sale of its US unit, expected in mid-2021.
BBVA also announced that it will propose to pay a gross cash dividend of 5.9 cents per share in April, in line with the 15% dividend ceiling set by the European Central Bank compared to 2020 results.
Regarding 2021, BBVA has announced that it will propose a first interim cash dividend of up to 35% of consolidated profit for the first half of 2021, subject to the lifting of regulatory restrictions.
($ 1 = € 0.8383)
Report by Jesús Aguado; Editing by Sonya Hepinstall