How exactly is the amount of interim profit to be included in Common Equity Tier 1 calculated according to Article 2(2) to (4) of the Regulation (EU) 241/2014 when the interim dividend has already been paid out and yet no final divided has been formally decided or proposed to the institution’s relevant body?
Please see document attached
Article 2(3) of the Regulation (EU) 241/2014 stipulates that any foreseeable dividend which can be expected to be paid out from the interim profit has to be deducted from the amount of interim profits included in Common Equity Tier 1. Where no formal decision or proposal for the distribution of dividends has been taken by the management body, the amount of foreseeable dividends to be deducted according to Article 2(4) of this Regulation corresponds to the interim profit multiplied by the payout ratio.
In the case where the interim dividend has already been paid, if the interim dividend amount represents less than the result of the interim profit multiplied by the payout ratio, the difference should be considered as foreseeable dividend in the sense of Article 2(3) of the Regulation (EU) 241/2014.
Therefore, the correct calculation is Option B, i.e.