Credicorp Ltd. (NYSE:BAP) is a Bermuda-incorporated holding company, and the leading financial holding company in Peru.
It is composed of Banco de Credito del Peru (BCP), Atlantic Security Holding Corporation (ASHC), Grupo Pacifico Seguros, Prima AFP, and Credicorp Capital, which are among Peru’s top-rated brands. Credicorp is mainly involved in banking (commercial & investment banking and retail banking, including SME and micro-lending), insurance (including property and casualty, life and health insurance), pension funds (private pension fund management services) and brokerage services (including trust, custody and securitization services, asset management and proprietary trading and investment).
On 26 October 2016, Credicorp Ltd. announced to its shareholders and to the market that the Board of Directors of the Company had approved a new Dividend Policy for Credicorp Ltd.
As its new Dividend Policy, the Company intends to declare and pay dividends in cash of at least 25% of the Company’s consolidated net profits based on the last audited financial accounts.
The Board of Directors have decided that they shall take into consideration the following at the time of decision making to distribute dividends:
- There being dividends declared and received from the Company’s subsidiaries.
- The declaration and payment of dividends should not cause the Company to breach any applicable laws or adversely impact on the equity growth requirements of the Company or its subsidiaries.
- Financial performance of the Company.
- General business and economic-financial conditions affecting the Company.
- Any other factors which the Board may deem relevant.
Notwithstanding the foregoing, under Bermuda law, any dividend may only be declared and paid if the Company is able to (i) pay its liabilities as they become due and (ii) the realisable value of its assets is not less than the aggregate value of its liabilities, issued share capital and share premium accounts.
The Board of Directors may in its sole discretion declare and pay a dividend below 25%, if any of the above mentioned conditions are not met.
Subject to the foregoing, it is expected that dividend payment shall be made once a year within ninety calendar days of the meeting held by the Board to approve the dividend declaration.
No interim dividends shall be paid.
This policy shall be in force as from the financial year 2016 until amended or rescinded by the Board of Directors.