Report No. 33/2014

Legal basis:

Article 56 par. 1 pt. 1 of the Act on Public Offerings and the Conditions for Admitting Financial Instruments to the Organised System of Trading and on Public Companies of 29 July 2005 read together with Article 154 par.1 of the Act on Trading in Financial Instruments of 29 July 2005 and Paragraph 38.1.11 of the 19 February 2009 Ordinance of the Minister of Finance on current and periodic information published by issuers of securities and on conditions under which such information may be recognised as being equivalent to information required by the regulations of law of a state which is not a member state.

Content of the Report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (the “ PKO Bank Polski”) announces that on 29 April 2014 it adopted a resolution and decided to submit a recommendation to the Ordinary General Meeting of the PKO Bank Polski on payment of a dividend for the year 2013 in the amount of PLN 937,500 thousand  (i.e. 31.65% of the sum of net profit for the year 2013 and unappropriated loss amounting PLN 271,242 thousand) that is, PLN 0.75 gross per share. 

Unallocated loss of previous years which resulted from the PKO Bank Polski having introduced a retrospective change in the accounting policies on the recognition of income and expense from fees charged and paid by the PKO Bank Polski on account of its clients/customers having entered into insurance policy agreements linked to its offered banking products.

The recommended dividend is to be paid in cash.

The Management Board proposed 18 September 2014 to be the dividend day and 3 October 2014 to be the dividend payment date.

The decision on the recommended distribution of profit for 2013 is in accordance with the dividend policy declared by the Management Board and the Supervisory Board, which provides for stable payments to shareholders out of net profit in the long term in amount equivalent to capital surplus over the adopted minimum capital adequacy ratios (published in the current report No. 22/2012 on 4 April 2012). Dividend payout realised at the proposed value will ensure retention of the capital adequacy measures at a safe level, consistent with the that expressed in the position of the Polish Financial Supervision Authority („PFSA”), and will ensure continued development of PKO Bank Polski’s lending operations. The PKO Bank Polski’s dividend policy is consistent with the general recommendations of the PFSA on the payment of dividends out of profits of the year 2013; as addressed to the bank presidents. 

In accordance with a letter from the PFSA dated 10 December 2013, a bank may recommend payment of a dividend if:

• the bank is not covered by a recovery proceedings program;
• it has a capital adequacy ratio above 12 per cent;
• its Tier 1 ratio is above 9 per cent;
• the capital adequacy ratio forecast for the end of 2014 in test scenario of extreme conditions (reference) is above 12%;
• the Tier 1 ratio forecast for the end of 2014 in test scenario of extreme conditions (reference) is above 9%;
• the general SREP (BION) is better than 2.5;
• the SREP (BION) with respect to the level of capital is better than 2.5.