UBS Group AG (SWX:UBSG) has announced that, at an Extraordinary General Meeting (EGM) held earlier today, its shareholders approved the Board of Directors’ proposal to distribute the second tranche of the 2019 dividend of $0.365 per share.

The payment of the dividend will be made on 27 November 2020 to holders of shares on the record date of 25 November 2020. The shares will be traded ex-dividend as of 24 November 2020.

The second distribution of US$0.365 per share will be paid out of the special dividend reserve established for this purpose at the 2020 AGM. At the 2020 AGM (held in April), a decision was made to split the distribution of the 2019 dividend into two equal installments of USD 0.365 per share, consistent with a request by FINMA to Swiss banks in light of the uncertainty caused by COVID-19.

Half of this second distribution will be paid out of the capital contribution reserves and 50% will be paid out of retained earnings (same as with the first distribution in May 2020). The portion paid from retained earnings is subject to a 35% Swiss withholding tax.

The payment of the second tranche of the dividend was indicated by UBS when it reported its financial results for the third quarter of 2020. In the third quarter of 2020, Foreign Exchange, Rates and Credit revenues increased by USD 156 million, or 41%, to USD 533 million, supported by increased client activity levels, particularly in credit and Forex product lines.