Legal basis:

Article 17 section 1 of the Market Abuse Regulation

Report content:

The Management Board of PKO Bank Polski S.A. („Bank”) hereby informs that on 18th of March 2021, the Bank adopted a dividend policy for the Bank and the Bank’s Group (“Dividend policy”).

The objective of the Dividend policy is to optimize the capital structure of the Bank and the Bank's Group, while considering the return on equity, the cost of capital and the capital needs for development, and maintaining an appropriate level of the capital adequacy ratios.

The Dividend policy takes into account the Bank’s intention to provide stable dividend payments in the long term, in accordance with the principle of prudent management of the Bank and the Bank's Group.

In line with the adopted Dividend policy, an additional tool for capital redistribution is the purchase of own shares aimed at their redemption, which may be carried out when the book value of shares is higher than their current market price, and only after obtaining the required approval of the Polish Financial Supervision Authority (“PFSA”).

The conditions for the Bank's ability to pay dividends have been adjusted according to the PFSA’s requirements in the Recommendation Z. These requirements also apply to the purchase of own shares by the Bank.