Issuers in Russia's financial sector could return to paying dividends if capital, reserves are secured - Chistyukhin

YEKATERINBURG. Feb 17 (Interfax) - Issuers in Russia's financial sector could return to paying dividends if their respective amounts of profit allow for remitting payments to shareholders without risks to capital, and this should assist in restoring investor confidence in the market, Russian Central Bank First Deputy Governor Vladimir Chistyukhin told reporters at the Cybersecurity in Finance forum in Yekaterinburg.

"In general, when we are dealing with public joint-stock companies, one of the most significant criteria for retail and institutional investors to invest in a company's capital is the prospect of receiving dividends. Naturally, from this point of view, restoring the usual practice of paying dividends, if possible, when all risks are accounted and when the necessary profit is allocated to capital in order to cover additional risks - then it seems to me correct to pay the profit as dividends if there are balances," Chistyukhin said during an interview with reporters when discussing the prospects of companies in the financial sector rendering dividend payments.

"This allows investors to regain confidence in the Russian equities market, and it demonstrates that a corporation is operating stably and is fulfilling its obligations to shareholders," Chistyukhin said.