Shareholders are expected to approve a gross dividend of RON0.1267 per share which, relative to the current trading prices of RON2.5 per share, ensures a dividend yield of 5%, in line with calculations by Ziarul Financiar daily. The proposed registration date is June 6 and the proposed date for the payment of dividends is June 16.
The lender also plans to increase its share capital by issuing 765 million shares with a nominal value of RON1 per share, through the capitalization of reserves from the net profit for 2021, to the benefit of the shareholders registered with the Shareholding Register held by the Central Depository at the registration date that will be established by the general meeting of shareholders (proposed date of July 13, 2022), namely, 12 free shares for 100 held shares.
In 2021, Banca Transilvania reported a net profit of RON1.8 billion, on an individual level, and of RON2 billion on a group level.
Shareholders’ agenda also includes the approval of the revenue and expenditure budget and the investment plan for 2022 (business plan for 2022) and the election of the Board of Directors for the 2022 – 2026 mandate. The lender also targets a buyback program for up to 40 million shares, which translates into almost RON100 million relative to the current trading prices, and a maximum price of RON4 for the stock option plan for the purpose of implementing a remuneration program and a personnel incentive program for a period of at least three years, as well as the payment of fixed remuneration, and the granting of a mandate for the Board of Directors for the enforcement of this resolution, the report reads.
“Approval of the consolidation of the nominal value of a share at Banca Transilvania SA, from 1 RON/share to 10 RON/share, by increasing the nominal value of the shares simultaneously with the reduction of the total number of shares (10 shares with a nominal value of 1 RON/share = 1 share with a nominal value of 10 RON/share), while also establishing by the GSM a price for compensating the fractions of shares resulting from the application of the algorithm and rounding of the results, according to the legal terms, and granting a mandate to the Board and individually to its members for the implementation of this decision, including for the approval of the specific documentation”, in line with the report.
Banca Transilvania has a stock market capitalization of RON16 billion and its shares have gained 16% over the last 12 months.