Report No. 15/2015

Legal basis:

Art. 56 section 1 point 1 of the Act of 29 July 2005 on the Public Offering, the Conditions Governing the Introduction of Financial Instruments to Organised Trading, and on Public Companies in connection with Article 154 of the Act on Trading in Financial Instruments of 29 July 2005

Content of the report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (“PKO Bank Polski” or the “Bank”) hereby informs that on 31 March 2015 the Bank’s Management Board adopted the new “Principles for managing  the capital adequacy and the internal capital in PKO Bank Polski SA and in the PKO Bank Polski Capital Group” („Principles”), including among others the dividend policy.

The general assumption of the Bank’s dividend policy is to maintain a stable level of dividend payments in the long term, in compliance with the principle of prudent management of the Bank’s and the Bank’s Capital Group and with consideration of the financial capacity of the Bank and the Bank’s Capital Group as determined on the basis of the adopted criteria. The aim of the dividend policy is an optimization of the own funds of the Bank and the Bank’s Capital Group, taking into account the return on capital and its cost, capital needs for development, while ensuring an appropriate level of capital adequacy ratios. The dividend policy assumes the possibility of the Bank’s net profit distribution to shareholders in the long-term perspective in the amount of the surplus of capital above minimal capital adequacy ratios considering the additional capital buffer. The dividend policy takes into account factors related to the operations of the Bank and the Bank’s Capital Group companies, in particular, the requirements and supervisory recommendations concerning capital adequacy. Capital adequacy ratios specifying the criteria for the dividend payment are as follows:

• total capital ratio above 12,5 per cent and
• common equity Tier 1 ratio above 12  per cent.

The enforcement of the abovementioned Principles is conditional under the Bank’s Supervisory Board approval.

The Management Board informs that on 31 March 2015 the Bank also received from the Polish Financial Supervision Authority (“PFSA”) the recommendation to withhold the entire net profit earned by PKO Bank Polski for the period from 1 January 2014 till 31 December 2014  - until the supervision authority determines the additional capital requirement for the Bank (“Recommendation”).

The PFSA expects the statement of the Bank’s Management Board and Supervisory Board position. The decided positions will be published by the Bank in separate reports.