Banks OP will pay the deferred interest on its income shares on Monday

A total of EUR 95 million in dividends previously banned by the European Central Bank will be distributed.

Financial group The OP Bank Group says that it will pay interest on its income units from last year to investment product holders next Monday.

A total of EUR 95 million will be distributed, the finance group says in its release. The interest rate to be distributed on Monday is in line with the return target of 3.25% for yield shares.

The distribution of OP interest income shares was postponed due to the European Central Bank’s (ECB) recommendation restricting the distribution of banks’ profits, in the same way as Nordea’s distribution of record dividends.

Read more: The biggest dividend pot in the history of the Finnish stock exchange is being distributed these days: “Nordea’s dividends will continue to be very high.”

In its recommendation, the ECB effectively banned banks from distributing their profits due to the crisis caused by the interest rate pandemic. The ECB considered that banks should use profit-sharing money to finance businesses and households in order to alleviate the interest rate crisis.

The ECB recommendation expired on Thursday.

OP Bank Group was able to distribute interest on income shares for 2019 in February this year. At that time, the group paid a total of EUR 97 million in interest.

OP says that in the future it will return to its normal dividend payment schedule in its profit distribution, where the previous year’s interest will be paid in June of the following year.

Yield shares are equity investments made by the OP Bank Group’s customer owners in member banks, with which the banks have strengthened their solvency.

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source https://pledgetimes.com/banks-op-will-pay-the-deferred-interest-on-its-income-shares-on-monday/