Banks expected to cut dividend payouts

PHILIPPINE banks are likely to cut their dividend payouts or issue more stock than cash dividends going forward in order to meet the capital adequacy ratios (CAR) required by the Bangko Sentral ng Pilipinas (BSP).

Rolando Avante, president of Philippine Business Bank (PBB), said Philippine banks, particularly those that are implementing branch expansion programs, are likely to either “lessen” their dividend payouts or issue stock rather than cash dividends to be able to maintain a 10 percent car.