Moscow Exchange lowered the minimum threshold for dividend payments to 50% of net profit

The Moscow Exchange has approved a new dividend policy. Now the minimum limit for dividend payments is set at 50% of the Moscow Exchange’s net profit according to international financial reporting standards (IFRS). By 2028, the group wants to increase net profit to 65 billion rubles, Chairman of the Board of the Moscow Exchange Yuri Denisov told reporters, reports Frank Media.

According to Mr. Denisov, the new strategy of the Moscow Exchange until 2028 defines the target level of dividend payments as the amount of free cash flow on equity capital (taking into account the target regulatory capital of the group, capital expenditures, mergers and acquisitions, evolution of regulatory capital requirements, stress tests , as well as restrictions on the attraction and use of borrowed funds).

According to the previous policy, the minimum threshold for dividend payments by the Moscow Exchange was set at 60% of net profit under IFRS, provided that the group does not need additional capital for capital investments, and also taking into account regulatory requirements for the exchange and its subsidiaries.

At the same time, in the spring of this year, the supervisory board of the Moscow Exchange proposed send for the payment of dividends for last year 11 billion rubles, which amounted to only 30% of the record net profit. The reason for abandoning the dividend policy was not explained at Moscow Exchange. According to partially disclosed IFRS statements for 2022, the Moscow Exchange group received a net profit of 36.3 billion rubles. This result is a record during the existence of the united exchange (since 2011).

Erdni Kagaltynov