Pursuant to the Resolution No. 7/2014 of 26 June 2014 The Ordinary General Shareholders’ Meeting of PKO Bank Polski SA, as a result of profit appropriation of PKO Bank Polski SA for the financial year 2013 and of covering an undistributed loss from previous years, according to the Bank’s Management Board’s recommendation, allocated PLN 937 500 thousand as a dividend for shareholders, which constitutes PLN 0.75 gross per share.
The General Shareholders’ Meeting set the dividend day (the day of acquisition of rights to dividend) at 18 September 2014 and the dividend payment date at 3 October 2014.
All shares of PKO Bank Polski SA were entitled to dividend.
The dividend from the profit of PKO Bank Polski SA for the financial year 2013 was paid out on 3 October 2014.
On 2 October 2014 the Management Board of PKO Bank Polski SA adopted a resolution on the distribution of the net profit that PKO Bank Polski SA achieved for the period from 1 January 2014 to 30 June 2014. As per this resolution the Bank’s Management Board resolved that in the Management Board’s recommendation on distribution of the net profit achieved by the Bank in 2014 addressed to the Ordinary General Shareholders’ Meeting approving the Bank’s financial statements for 2014, the net profit achieved for the period from 1 January 2014 to 30 June 2014 in the amount of PLN 1 679 300 thousand will be taken into account in a way that assumes allocation of the amount of PLN 675 000 thousand out of that net profit as a dividend for shareholders. This amount constitutes 40.2% of the Bank’s net profit achieved in the first half of 2014.
The adoption of the aforementioned resolution was aimed at including 59.8% of the net profit achieved in the period from 1 January 2014 to 30 June 2014, after deduction of the expected charges and dividends, to Tier 1 basic capital of the Bank. The aforementioned allocation of net profit ensured maintenance of the capital adequacy measures at a safe level and provided the Bank’s further development. Pursuant to Article 26 item 2 of the Regulation (EU) No. 575/2013 of the European Parliament and Council, inclusion of the profit for this year in own funds is possible only with the prior permission of the Polish Financial Supervision Authority (the PFSA) and after verification of profits by independent persons responsible for the auditing of the financial statements.
The Bank obtained the aforementioned permission of the PFSA and indicated in the current report No. 71/2014 as of 2 October 2014, that accumulation of a part of the net profit for 2014 is required in order to ensure safe level of capital adequacy for its developing operations. The key factors determining this decision of the Bank were conducting the transaction of acquisition of the Nordea Group assets, the changing regulatory environment as well as the process of establishing a mortgage bank (as a subsidiary of the Bank).
The aforementioned level of dividend of the net profit achieved for the period from 1 January 2014 to 30 June 2014 was solely a declaration to recommend a payment out of the net profit for the indicated period. The part of the net profit achieved in 2014, which in the Management Board’s opinion should be allocated as a dividend, will be recommended to the Ordinary General Shareholders’ Meeting approving the Bank’s financial statements for 2014, by the Bank’s Management Board in compliance with a relevant procedure, prior to the convening of this Ordinary General Shareholders’ Meeting, and the final amount of the dividend will be determined by the General Shareholders’ Meeting.