Komercni Bank's AGM has approved a dividend of CZK
150 per share (down 40.0% y/y, compared to a dividend of CZK
250 per share last year), which equates to a payout ratio of some 62.9% and a dividend yield of 3.75%. The dividend can be claimed as of 25 May 2007 and the payout date is June 25.
Separately, the bank's AGM maintained its buyback policy (implemented last year) of buying back up to 3.8m (or 10%) of shares with the price limit of CZK
The approved dividend is in line with recent management proposal and the buyback policy is maintained for next 18 months. We expect the news to have a neutral trading impact.