By Olivia Bugault

UniCredit SpA said Sunday that it has withdrawn its 2019 dividend proposal as recommended by the European Central Bank, while also postponing its share-buyback program.

The Italian bank had previously announced a dividend of 0.63 euros a share ($0.70) from profit reserves and the launch of a share buyback of up to EUR467 million.

The decision to postpone both resolutions planned for the annual general meeting on April 9 "was taken following the ECB's recommendation on March 27 to not pay dividends until at least October 2020," it said. As a consequence of the ECB recommendation, Unicredit has also canceled its share buyback, it added.

Unicredit said it is offering to shareholders of the territorial foundations--that are also shareholders of the bank--interest-free loans up to the amount of dividends.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

March 30, 2020 01:22 ET (05:22 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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