Rabobank is not going to pay a dividend for the time being, and is responding to the call from the European Central Bank (ECB), De Nederlandsche Bank (DNB) and large investors to keep money in its own cash during the corona crisis, the bank said on Sunday.
Rabobank will not pay any fees on the Rabobank Certificates in March, June and September.
"As a cooperative bank, we want to make every effort to support the economy and help our clients through the crisis. Our priority, together with the banking sector, government, regulators and other stakeholders, is to support our clients, who are now hit so hard by the corona pandemic, "said Bas Brouwers, Chief Financial Officer at Rabobank.
By scrapping dividend payments, European banks could keep tens of billions of euros in cash, ECB President-in-Office Andrea Enria said in a blog post.
Large investors also called for Saturday to postpone or even completely suspend dividend payments. The appeal is remarkable, because dividend payments are normally an important asset for shareholders. Due to the economic consequences of the corona virus, these are not normal times, big investors argue.
The coronavirus outbreak is slowing economic activity and even threatening to overturn companies. The dividend payment costs a lot of money and could therefore weaken companies even worse. It is therefore in their own advantage if the dividend is not paid for the time being.