Board of Directors publishes adjusted dividend proposal for the 2020 Annual General Meeting
On March 25, 2020, Credit Suisse Group AG published the invitation to this year’s Annual General Meeting (AGM). In light of the COVID-19 pandemic and in response to a request by the Swiss Financial Market Supervisory Authority FINMA (FINMA), the Board of Directors today announced an adjusted dividend proposal to shareholders.
In response to a request from FINMA, the Board of Directors is submitting a revised dividend proposal for this year’s AGM. Instead of a total dividend of CHF 0.2776 gross per share as originally announced on March 25, 2020, a total of CHF 678 million[i], the Board of Directors is proposing a cash distribution of CHF 0.1388 gross per share, with half being paid from retained earnings[ii] and half out of the capital contribution reserves[iii]. In the Autumn of 2020, the Board of Directors intends to propose a second cash distribution of CHF 0.1388 gross per share, which would be presented for approval at an Extraordinary General Meeting at that time, subject to market and economic conditions.
While the Board remains of the opinion that Credit Suisse’s financial strength would have continued to support the original dividend proposal made to our shareholders, we believe that this response to FINMA’s request, in alignment with the similar decisions made by our peers, is a prudent and responsible step to preserving capital in the face of the challenges posed by the COVID-19 pandemic and will allow for a fuller evaluation of the extent of the economic impact of this crisis later in the year. Subject to confirmation following this assessment and the subsequent approval by our shareholders, the resulting aggregate dividend in 2020 would be in line with our intention to increase the dividend by at least 5% per annum.
To implement this update, the Board of Directors further adjusted its proposals with regard to the dividend related agenda item to be submitted to the 2020 AGM on April 30, 2020 as follows:
All other proposals of the Board of Directors remain unchanged.
Shareholders who have already issued instructions and do not wish to change them do not need to take any additional action. Their respective instructions to the independent proxy are deemed to also be valid for the adjusted dividend proposal. Shareholders who have already issued instructions to the independent proxy and want to change such instructions can do so by requesting by April 21, 2020 a new proxy form or new access data to the shareholder portal through the share register of Credit Suisse Group AG. Any changes to instructions issued to the independent proxy must be submitted until Monday, April 27, 2020.
An updated AGM invitation reflecting the adjusted dividend proposal and further information can be found at www.credit-suisse.com/agm.
Credit Suisse is scheduled to announce its results for the first quarter of 2020 on April 23, 2020.
In the interim, we confirm the summary given in our trading update on March 19, 2020 together with the further comments on current trading and outlook provided in our Annual Report on March 25, 2020.