GAM Holding AG Proposes Not to Pay Dividend for the Year 2018; Expects to Pay Dividend for the Year 2019; Provides Earnings Guidance for the Full Year of 2018 and First Half and Full Year of 2019; Provides Impairment Guidance for the Full Year of 2018
Given the significantly lower average AuM and revenues expected for 2019 compared to 2018, and with the savings related to the restructuring programme only fully reflected in the 2020 results, the company expects the financial results for the first half and the full year 2019 to be materially below those of the first half and the full year 2018.
The company expects goodwill impairment charge for the group of approximately CHF 885 million for the year 2018.
Recognizing the company's expected 2018 results and the profit outlook for 2019, the board of directors remains focused on re-building capital buffers and expects to propose to shareholders that no dividend will be paid for 2018 to accelerate the Group's capital rebuild.
For 2019 and beyond, GAM will target a minimum dividend pay-out of 50% of underlying net profit to shareholders.