Kuwait Central Bank allows lenders to distribute 2020 dividends
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Kuwait Central Bank allows lenders to distribute 2020 dividends

Kuwait Central Bank allows lenders to distribute 2020 dividends

The Kuwait Banking Association said in June that there would be no distribution of dividends to shareholders for 2020

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Kuwaiti lenders will be allowed to distribute cash profits based on their 2020 financial results, the Central Bank of Kuwait said on Saturday.

“In light of the financial data of Kuwaiti banks, that showed strength and solid levels of capital adequacy, and due to not using their provisions during 2020, they can distribute dividends to shareholders in line with their results and net profits, in a way that doesn’t affect the required capital adequacy,” the bank said in a statement.

The Kuwait Banking Association said in June that there would be no distribution of dividends to shareholders for 2020.

The decision was taken to enable the banking sector to operate normally and ensure liquidity “until current extraordinary circumstances created by the coronavirus pandemic cease to exist,” state-run KUNA news agency reported at the time, citing the association.

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