The Management Board of Bank Peako recommended the distribution of the net profit for 2020 in the amount of PLN 1,126,424,269.1, assuming the allocation of PLN 283,895,459.96 (approx. 25% of the bank’s net profit for 2020) for reserve capital, the bank said. The bank’s management board also decided to propose to the ordinary general meeting of the bank that the remaining part of the net profit for 2020 in the amount of PLN 842,528,809.14 (approx. 75% of the bank’s net profit for 2020) should remain undistributed.
“The justification for the above method of profit distribution and leaving the undistributed part of the profit is the recommendation of the Polish Financial Supervision Authority (KNF) regarding:
1.the bank withholds the payment of dividends in the first half of 2021 (including the undistributed profit from previous years),
2. in the first half of 2021, without prior consultation with the supervisory authority, the bank will not undertake other activities that are outside the scope of current business and operating activities, which may result in a reduction of the capital base, including buyouts of own shares “- the release reads.
The reason for leaving the undistributed part of the net profit for 2020 is the bank’s intention to pay it in the future in the form of a dividend, provided that the relevant recommendations or positions of the Polish Financial Supervision Authority indicate such a possibility, also indicated.
The bank also took into account the current situation in Poland related to the state of the coronavirus epidemic, including its potential impact on the bank and the banking sector.
The proposal to distribute the profit and to keep the undistributed part of the profit was positively assessed by the bank’s supervisory board, and was completed.
Bank Pekao is part of the PZU group – the largest financial group in Central and Eastern Europe. Since 1998, the bank has been present on the Warsaw Stock Exchange. The bank’s total assets amounted to PLN 233 billion at the end of 2020.
Source: IBSnews and Bank Pekao
