Belfius said on Monday it is changing its capital structure and dividend policy ahead of a planned sale of up to 20% of the Belgian state-owned bancassurer.
The group, wholly owned by the Belgian state through the Federal Holding and Investment Company (SFPIM), has argued for several years in favour of a partial privatisation.
The plan regained momentum under the government led by Bart De Wever, and the government has now reached an agreement on a potential sale of up to 20% of Belfius’s capital.
The federal government hopes the transaction could raise up to €2 billion.
Against that backdrop, Belfius said it had held talks with its shareholder to reshape its capital structure and dividend policy in order to strengthen its flexibility and appeal to investors.
As part of the changes, the bancassurer plans to distribute 50% of its profits as dividends, up from 40% previously.
It also intends to pay an interim dividend of €375 million before the end of 2026, up €125 million from last year.
A second exceptional dividend, also worth €375 million, will be paid to SFPIM once the capital opening has been formally approved and signed.
Belfius will also lower its target range for its CET1 ratio, a key measure of core capital strength, to 14.5% to 15%, down from 15% to 15.5%.
At the same time, it plans to issue €500 million in additional tier 1 capital instruments, known as AT1.
Belfius said the measures remain subject to confirmation and formal signing of the capital opening.
