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16.07.2021 - Report 27/2021: Dividend recommendation of the Polish Financial Supervision Authority and statement that the condition for dividend payment is fulfilled

Content of the report:

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby announces that on 16 July 2021 it received an individual recommendation of the Polish Financial Supervision Authority relating to the Bank's dividend policy in the second half of 2021 (the "PFSA Recommendation"). In accordance with the PFSA Recommendation, the Bank, as at 31 March 2021 (Bank's quarterly data on own funds) and as at 31 May 2021 (the Bank's monthly data on the receivables portfolio), in terms of the basic criteria of the dividend policy, met the requirements qualifying for the payment of up to 100% of the dividend from the Bank's profit generated in the period from 1 January 2020 to 31 December 2020. Additionally, the Polish Financial Supervision Authority recommended the Bank not taking, without prior consultation with the supervisory authority, other actions, in particular those outside the scope of its current business and operational activities, which could result in a reduction of its capital base, including possible dividend payments from undistributed profit from previous years (i.e. from 2019 and previous years) and share buybacks.

At the same time, with reference to current report No. 21/2021 dated 11 June 2021 concerning the resolution of the Ordinary General Meeting of the Bank on the distribution of the Bank's profit for 2020 (the "Profit Distribution Resolution") and current report No. 26/2021 dated 30 June 2021 concerning the supervisory letter informing about the position of the Polish Financial Supervision Authority on the dividend policy in the second half of 2021 and the results of the stress test mark-ups for the Bank, the Bank informs the public that on 16 July 2021 the Management Board of the Bank, pursuant to § 5 (1) of the Profit Sharing Resolution, adopted a resolution regarding the individual Dividend Conditions set out in the Profit Sharing Resolution (the "Board Resolution").

In the Board Resolution, the Management Board of the Bank stated that:

1)       the 75% Dividend Payment Condition set out in the Profit Distribution Resolution has been fulfilled,

2)       in connection with the fulfilment of the Dividend Payment Condition of 75%, the following have not been fulfilled: 50% Dividend Payment Condition  and 25% Dividend Payment Condition set out in the Profit Distribution Resolution.

In view of the above, the method of distribution of the Bank's net profit for 2020 set out by the Ordinary General Meeting of the Bank in § 1 of the Profit Distribution Resolution applies, which means that:

1)       74.8% of the Bank's net profit for 2020, i.e. the amount of PLN 842,528,809.14 (in words: eight hundred and forty-two million five hundred and twenty-eight thousand eight hundred and nine zlotys 14/100), was allocated to dividends;

2)       the amount of PLN 283,895,459.96 (in words: two hundred and eighty-three million, eight hundred and ninety-five thousand, four hundred and fifty-nine zlotys and 96/100) shall be allocated to reserve capital;

3)       the amount of dividend per share is PLN 3.21 (in words: three zlotys 21/100) gross.

Pursuant to § 6 of the Profit Distribution Resolution, the dividend date falls on 10 September 2021 and the dividend payment date falls on 29 September 2021.

Legal basis: Art. 17 of (1) MAR - inside information