Bank of Valletta has decided to make payment of dividends conditional to a reassessment of the situation once the uncertainties caused by COVID-19 disappear.

In a statement on Wednesday, the bank recalled that on March 18 it had proposed a final gross dividend of €0.026 per share (equivalent to a final net dividend of €0.017 per share) for last year.

"In light of the COVID-19 pandemic and following a strong recommendation of the European Central Bank (ECB) of 27 March 2020 on dividend distributions applicable to all European banks, BOV has decided to keep the initial proposal for distribution of the dividend but make the actual payment conditional to the reassessment of the situation once the uncertainties caused by COVID-19 disappear, the earliest of which, in line with the ECB’s recommendation, would be 1 October 2020," BOV said. 

It said it entered 2020 with a robust capital base and strong liquidity buffers. It is closely monitoring the situation and constantly assessing the impact of the COVID-19 pandemic.

The bank said it is committed to supporting its clients, business and private, and the Maltese economy by offering a range of supports in a responsible and prudent way.  

Banks across Europe have been foregoing their dividend plans for the year, to ensure they keep liquidity during the coronavirus pandemic. 

Financial regulators in Norway and Sweden have asked the government to order banks not to issue dividends this year.  

Britain's banking sector on Wednesday scrapped billions of pounds in shareholder dividends and share buybacks after the Bank of England requested the move to boost liquidity and help cope with the coronavirus crisis.

The British central bank said in a statement that its Prudential Regulation Authority division had asked lenders to stop the payments until the end of the year.

It also said it expected them not to pay any cash bonuses to top staff.