NIBC AGM update in relation to COVID-19Press Release -
Today at 10am CET, NIBC’s Annual General Meeting (AGM) is taking place. As a result of the COVID-19 measures the AGM is held using digital alternatives in order to provide all stakeholders with the same transparency of information in a safe and health-conscious manner.
At the AGM, NIBC will provide a brief update on COVID-19 and the way it is impacting our business. At the time of this press release, the AGM 2020 presentation is also published on our website.
The COVID-19 outbreak continues to have an impact on the global economy at large, our clients and our company. While we expect the COVID-19 outbreak to impact our 2020 financial performance negatively, NIBC is, at this stage, unable to quantify the magnitude and duration of such impact. Although NIBC has not issued guidance or targets specifically for 2020, NIBC foresees in the current circumstances that it will not achieve its previously formulated medium term objective of 10 – 12% for Return on Equity (ROE) over 2020. NIBC’s ambitions towards its medium term objectives remain unchanged once market conditions normalise.
Today, at the AGM the dividend 2019 proposal is on the agenda. As previously announced on 31 March 2020, NIBC has decided to maintain the proposal to declare the dividend for the financial year 2019 but to pay out such dividend in the second half of 2020 and only if in the opinion of the Management and Supervisory Boards of NIBC at such time, payment is feasible and appropriate in light of the impact of COVID-19 on the business.
NIBC has a strong capital position with a reported CET1 ratio of 17.7% at year-end 2019, after proposed profit distribution 2019. Consequently, NIBC has a significant buffer above its minimum capital requirements to weather the challenging market conditions due to COVID-19. Supported by our strong capital and liquidity position and our role in the Dutch economy, NIBC has several measures in place to support clients affected by the COVID-19 virus, which can be found on the NIBC website.