Croatia’s government is urging Hrvatska poštanska banka (HPB) to distribute 60% of its net profit as dividends, according to reports from Poslovni dnevnik.
The state-owned lender is set to hold its general assembly this Friday, where shareholders will vote on the payout proposal alongside other agenda items.
The proposed 60% payout ratio is significant for a bank, potentially impacting its ability to self-fund future growth or absorb unexpected losses without external capital injections.
The push for a higher dividend yield reflects the government's urgent need to generate revenue while adhering to strict fiscal targets.
The move underscores the tension between corporate capital retention and state fiscal requirements in the region.
With the Croatian government focused on keeping the budget deficit within Maastricht Treaty limits, extracting value from state-owned enterprises has become a priority.
The proposed 60% payout ratio is significant for a bank, potentially impacting its ability to self-fund future growth or absorb unexpected losses without external capital injections.