Handelsbanken Proposes to Return $1 Billion to Shareholders
By Joe Hoppe
Svenska Handelsbanken said Tuesday that it intends to propose an
extra dividend for its shareholders by distributing shares in
Industrivarden, corresponding to around 8.7 billion Swedish kronor
($1.0 billion), or SEK4.42 a share.
The Swedish bank said that on the back of stable earnings and
capital growth, along with good credit quality, its current
capitalization is well above its target ratio level and as such it
will propose an extra dividend of shares as a dividend-in-kind.
The company said it will distribute around 30.5 million Class A
shares in Industrivarden to shareholders, taken from
Handelsbanken's pension foundation. Taking the shares from the
pension foundation will also reduce volatility in the pension
management, increasing the long-term stability of the bank's
capitalization, it said.
Following the dividend, Handelsbanken expects its capital equity
Tier 1 ratio--a key measure of balance-sheet strength--to reduce to
around 19.4%, from 20.5%.
The dividend is subject to shareholder approval at an
extraordinary general meeting on Oct. 21.
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(END) Dow Jones Newswires
September 21, 2021 12:44 ET (16:44 GMT)
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