The increased dividend announced today (Tuesday) by BNP Paribas, upon publication of its 2016 results, comes as good news for the Belgian budget. Belgium is a significant shareholder in the French banking group.
Via Belgium’s Federal Holding and Investment Company, as at 30 June 2016, the Belgian state has a shareholding of nearly 10.3% of BNP Paribas’s capital. This amounts to some 128 million shares.
The BNP Paribas Board of Directors is proposing payment of a dividend of €2.70 per share, payable in monetary form for the 2016 financial year. It has been revealed that this compares to €2.31 in the previous year. The Belgian state can thus bank upon a dividend in excess of €345 million.
Further good news for the Belgian state is that BNP Paribas anticipates, as part of its new strategic plan for 2017-2020, to increase its dividend by an average of 9% per year.