PARIS – Renault Group will receive a roughly 931 million-euro ($1.1 billion) infusion from its finance arm after the European Central Bank lifted restrictions on dividend payments that were enacted early in the pandemic.
The payout from retained earnings generated by the automaker’s wholly owned RCI Bank and Services is in line with intentions Renault communicated earlier this year, according to a statement. After the payment, capital ratios will return to pre-pandemic levels.
The financial-services company has been an important source of cash for Renault in recent years amid struggles for the carmaker and its alliance partner Nissan. RCI was forced to pause payments to Renault last year when the ECB issued a de facto ban, and then cap, on payouts by lenders.
The ECB decided in July not to extend the restrictions beyond September.
Renault, which recorded a record loss of 7.29 billion euros in the first half of 2020, reported an operating margin of 2.8 percent for the first half of the year and is aiming for a similar full-year margin.
