19. Dividends

On 11 June 2021, the Bank’s Ordinary General Meeting passed a Profit Distribution Resolution.

The Profit Distribution Resolution provided that the distribution of the Bank’s net profit for 2020 will take place in one of four manners, depending on the fulfilment or non-fulfilment of the Dividend Payment Conditions, making the payment of dividends dependent on Polish Financial Supervision Authority (‘KNF’) Position relating to the dividend policy of commercial banks in the second half of 2021 and KNF Recommendation relating to the Bank’s dividend policy in the second half of 2021.

Profit Distribution Resolution defines three Dividend Payment Conditions:

1. 75% Dividend Payment Condition – the condition will be met when the KNF Position and KNF Recommendation allow to allocate for dividend – from the Bank’s net profit for 2020- at least the amount of PLN 842,528,809.14
2. 50% Dividend Payment Condition – the condition will be met when the KNF Position and KNF Recommendation allow to allocate for the dividend – from the Bank’s net profit for 2020- at least the amount of PLN 561,685,872.76, but less than the amount of PLN 842,528,809.14,
3. 25% Dividend Payment Condition – the condition will be met when the KNF Position and KNF Recommendation would allow to allocate for the dividend  – from the Bank’s net profit for 2020 – at least the amount of PLN 280,842,936.38, but less than the amount of PLN 561,685,872.76 .

In case:

1. the 75% Dividend Payment Condition is fulfilled – the amount of PLN 842 528 809.14 will be allocated to dividend,
2. if the Dividend Payment Condition of 50% is met – the amount of PLN 561 685 872.76 will be allocated to dividend,
3. if the Dividend Payment Condition of 25% is met – the amount of PLN 280 842 936.38 will be allocated to dividend,
4. if none of the Dividend Payment Conditions (i.e. 75% Dividend Payment Condition, 50% Dividend Payment Condition, 25% Dividend Payment Condition) is met, no dividend will be paid for the year 2020.

Paragraph 5 (1) of the Profit Distribution Resolution requires the Management Board of the Bank will adopt a resolution on the fulfilment or non-fulfilment of the individual Dividend Payment Conditions by 2 September 2021 at the latest, with the proviso that if no KNF Position or KNF Recommendation has been issued by 31 August 2021 (inclusive), none of the Dividend Payment Conditions are met.

The Management Board of the Bank on 16 July 2021, pursuant to § 5 (1) of the Profit Distribution Resolution, in connection with the KNF Position and KNF Recommendation, adopted a resolution on the Dividend Payment Conditions. It stated therein that: the Dividend Payment Condition of 75% set in the Profit Distribution Resolution was fulfilled, therefore the following conditions were not fulfilled: Dividend Payment Condition 50% and Dividend Payment Condition 25%. The above means that: 74.8% of the Bank’s net profit for 2020, i.e. the amount of PLN 842 528 809.14 was allocated to dividend. The amount of the dividend per share was PLN 3.21. The dividend day was 10 September 2021 and the dividend payment date was 29 September 2021.