On 16 December 2020, the Polish Financial Supervision Authority announced its position regarding the dividend policy of commercial banks in 2021. The Authority deems necessary that commercial banks suspend their payment of dividends in the first half of 2021.
The Polish Financial Supervision Authority also expects than no other actions will be taken, in particular outside the scope of current business and operating activities of the banks, which could result in a reduction of their capital base without prior consultation with the supervision authority. This also applies to any potential dividend payment from earnings retained in previous years and repurchase of own shares. The PFSA expects that any such actions would be subject to a prior consultation with the Authority and its approval at all times.
The position of the Polish Financial Supervision Authority regarding the dividend policy of commercial banks in the second half of 2021 will be announced separately after the financial situation of the banking sector in the first half of this year is analyzed.
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 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.
1) 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)
2) 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)
3) 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.
