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Philippines slashes dividend rates for 2 state-run banks

Philippine President Rodrigo Duterte on Sept. 2 signed an executive order to reduce dividend rates of two state-run lenders, Land Bank of the Philippines and Development Bank of the Philippines, to improve their capital position, Sun Star reported.

Land Bank of the Philippines' dividend rate was adjusted to 0% and 10% of annual net earnings for 2016 and 2017, respectively, from the current 50%, while Development Bank of the Philippines' dividend rate was cut to 0% for 2017 from 50%.

The country's laws require corporations owned and controlled by the government to remit at least half of their earnings as dividends to the national government. The laws, however, authorize the country's president to make adjustments to such dividends.