UNITED BULGARIAN BANK TO SKIP DIVIDEND FOR 2010
United Bulgarian Bank (UBB), the country's third largest lender in terms of assets, has announced it will not pay dividend for 2010, making it a seventh consecutive year that the bank decided to recapitalise its profit.
At a meeting held on August 10, the bank's shareholders approved the motion to retain the net profit of 64 million leva. The shareholders also decided to add to UBB's reserves undistributed profits from previous years to the amount of 905 900 leva.
Following the capitalisation, the bank's own capital now totals 1.09 billion leva. UBB is 99.9 per cent owned by National Bank of Greece.
Over the past two years, most banks in the country have been following a "prudent dividend policy", as the Bulgarian National Bank (BNB) says in its analysis, by retaining their profits. That way, financial institutions have formed capital buffers to absorb potential losses.
