Dividends are the portion of a company’s net profit that is distributed to shareholders. Its amount is proposed by the Board of Directors then voted by the Shareholders’ Meeting after the approval of the accounts of the last year.
Dividends must be paid to shareholders, in proportion to the number of shares that they hold, within nine months of the end of the company’s financial year. Dividends are most commonly paid in cash, i.e. in euros. Also, they can be paid in newly-issued shares if this option is approved by the Shareholders’ Meeting.
To have the right to receive dividends, you must own one or more shares on the day before the reloval of coupon.
Receiving dividends requires no special action on your part. Cash dividends will be credited directly to your securities account by your financial intermediary.
After approving the financial statements for the year ended 31 December 2017, the General Shareholders' Meeting of Crédit Agricole S.A. decided to distribute a dividend of EUR 0.63 per share and a loyalty bonus of EUR 0.063 per share for eligible shareholders. This is the last loyalty dividend to be paid by Crédit Agricole S.A., in view of the deletion of the statutory article on loyalty dividends decided by the General Shareholders Meeting.
The dividend will be paid in cash only. The ex-dividend date will be 22 May 2018 and the dividend payable date will be 24 May 2018.
Compensation for shareholders eligible for the loyalty dividend
On 20 December 2017, Crédit Agricole S.A. announced it would submit a proposal to the General Meeting of Shareholders to be held on 16 May 2018 to remove the loyalty dividend clause from its articles of association. The European Banking Authority (EBA) has ruled that the payment of a loyalty dividend constitutes a “preferential distribution” in breach of the Capital Requirements Regulation (CRR). This ruling has been upheld by the European Central Bank (ECB).
To compensate beneficiaries, Crédit Agricole S.A. will award eligible shareholders one new ordinary share for 26 registered shares entitled to a loyalty dividend in respect of the 2017 fiscal year*. Given the weighted average price of the Crédit Agricole SA share observed over a 60-day trading period completed on the evening of 12 February 2018 (€ 14.55), the value of the compensation amounts to approximately 56 cents per share. The compensation amount was determined in an independent appraisal by Ledouble, which calculated the amount payable to compensate eligible shareholders for the removal of the loyalty dividend based on three main factors: projected future dividends, the estimated average holding period of loyalty shares, and discounted cash flows. At its meeting on 13 February, the Board of Directors set the compensation amount within the price range proposed by Ledouble at between €0.45 and €0.63 in order to achieve a balance between the interests of eligible shareholders and other shareholders.
The removal of the loyalty dividend clause and the terms of compensation for beneficiaries is subject to approval by a special meeting of eligible shareholders that will be held on 4 April 2018 and by the Extraordinary Annual General Meeting to be held on 16 May 2018.
* Only Crédit Agricole SA shares held in registered form continuously from 31 December 2015 through to the dividend payment date for the 2017 financial year are eligible for the loyalty dividend for 2017.
Last update: February 2018