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.
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 and meeting the minimum requirement for own funds and eligible liabilities (MREL).
In line with the adopted Dividend policy, an additional tool for capital redistribution is the purchase of own shares aimed at their redemption. The Dividend policy indicates that the General Meeting shall consent to the acquisition of own shares by the Bank, after prior approval of the Supervisory Board, specifying the terms of the acquisition, including the maximum number of shares to be acquired, the period of authorization to acquire shares, which may not exceed five years and the maximum and minimum amount of consideration for the acquired shares, if the acquisition takes place for consideration. Purchase of own shares for redemption in each case requires the Bank to obtain the prior consent of the Polish Financial Supervision Authority. The acquisition of own shares may also be made in a situation in which the book value of shares is lower than their current market price.
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.
1) From reserve capital
2) Pursuant to the decision of the AGM, the amount of PLN 1 629 138 013.50 was allocated to reserve capital for the payment of dividends, including interim dividends
3) Loss resulting from changes in the assessment methodology and quantification of the legal risk related to the intention of signing agreements with consumers by PKO Bank Polski S.A. who concluded with PKO Bank Polski S.A. loan agreements or mortgage-secured loans indexed to foreign currencies or denominated in foreign currencies and establishment of a special fund to cover the specific balance sheet losses that arise from recognizing the financial effects of the settlements with consumers
4) Net profit for distribution incl. the bank's net profit for the year 2014 (PLN 3 079 471 000) and unappropriated profits (PLN 132 793 000)
5) Net profit for distribution incl. the bank's net profit for the year 2013 (PLN 3 233 762 000) and unappropriated loss of previous years (PLN -271 242 000)
6) Net profit for distribution incl. the bank's net profit for the year 2012 (PLN 3 592 617 000) and unappropriated profits (PLN 88 533 000)
Source: Current reports of PKO Bank Polski S.A.
