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 of the Act on Trading in Financial Instruments of 29 July 2005 and Clause 38 par. 1 pt. 11 of the Regulation of the Minister of Finance on Current and Periodic Information by Issuers of Securities and on the Conditions for Recognising Information as Equivalent to That Required by the Provisions of Law of a State Which is Not a Member State of 19 February 2009.
Content of the Report:
The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (“PKO Bank Polski” or the “Bank”) announces that on 9 May 2012 it adopted a resolution and decided to submit a recommendation to the Ordinary General Meeting on payment of a dividend for the year 2011 in the amount of PLN 1,587,500,000 that is, PLN 1.27 per share.
The recommended dividend is to be paid in cash. The Management Board proposed 12 June 2012 to be the date relevant establishing the right to the dividend (dividend day) and 27 June 2012 to be the dividend payment date. In the opinion of the Management Board, the decision on the recommended distribution of profit for 2011 is in accordance with the Bank’s dividend policy published in the current report No. 22/2012 on 4 April 2012.
A dividend payment in the recommended amount will guarantee that the capital adequacy ratio is maintained above 12 per cent and that the Tier 1 ratio is maintained above 9 per cent, while maintaining the necessary capital buffer. A dividend payment in the recommended amount will allow the Bank to maintain its good capital and liquidity position. The proposed dividend level is in line with the recommendation of the Polish Financial Supervision Authority (“PFSA”) with regard to strengthening banks’ capital bases. In accordance with a letter from the PFSA dated 29 December 2011, a bank may recommend payment of a dividend if:
- it has a capital adequacy ratio above 12 per cent;
- its Tier 1 ratio is above 9 per cent;
- it receives a BION rating of at least 2.5;
- the share of foreign currency loans to private individuals in its loan portfolio for private individuals does not exceed 50 per cent.
PKO Bank Polski meets all the above criteria such that the Management Board may recommend a payment of a dividend. The Management Board’s recommendation on payment of a dividend was considered by and obtained a positive opinion of the Supervisory Board in accordance with Clause 9 par. 2 of the Statute of the Bank. In accordance with Article 395 par. 5 pt. 2 of the Commercial Companies Code and Clause 34 of the Statute of the Bank, the recommendation will be submitted for consideration by the Bank’s Ordinary General Meeting approving the financial statements for the financial year ending on the 31 December 2011.