According to an official statement management board of the OTP Bank has proposed a dividend of HUF 144 per share (versus HUF 197 per share last year), which equals to a dividend payout of some 21% and dividend yield of 1.7%. This dividend is a subject for approval of the AGM (to be held on April 28). Dividend payment will start on June 11, 2007.
Our view: Proposed dividend is somewhat lower than recently stated 30% payout ratio by Sandor Csanyi, the CEO of OTP Bank. However given the expansion/restructuring plans of OTP Bank we would not expect any strong negative reaction of the market.