Shareholders of Credit Suisse Group AG (SWX:CSGN) today approved the Board of Directors’ proposal for a second distribution of dividends of CHF 0.1388 gross per registered share.

The vote will allow for the distribution of the full dividend amount of CHF 0.2776 gross per registered share for the financial year 2019, as originally proposed. The distribution will be paid half from retained earnings and half out of the capital contribution reserves. The payment of the cash distribution will be made from December 7, 2020.

In April of this year, at the Annual General Meeting, shareholders approved the first distribution of CHF 0.1388 gross per registered share for the 2019 dividend.

The split into two distributions was proposed to shareholders following a request by the Swiss Financial Market Supervisory Authority (FINMA) and amid economic challenges of the COVID-19 pandemic.

Urs Rohner, Chairman of the Board of Directors of Credit Suisse Group, commented:

“Based on our proven strategy, strong capital position and well-executed crisis response, and in line with our intention to increase the dividend by at least 5% per annum, we had proposed to approve the second distribution of the 2019 dividend, to allow for the full distribution of the dividend for the financial year 2019. On behalf of the Board of Directors, I would like to thank our shareholders for approving our proposal. We value your continued trust and support.”

Mr Rohner noted:

“I would, at this juncture, also like to point out that we are already making accruals for a 2020 dividend, in line with our intention to increase our dividend by at least 5% per annum.”

He confirmed that Credit Suisse plans to launch a share buyback program at the beginning of the first quarter of 2021 – subject to market and economic conditions – of up to CHF 1.5 billion for the calendar year 2021, with at least CHF 1.0 billion expected for the full year.

The company therefore expects – subject to market and economic conditions – that a total distribution of between approximately CHF 1.8 billion and CHF 2.3 billion should be payable to its shareholders, in 2021.