Bank Millennium’s dividend policy assumes distribution of between 35% to 50% of its net profit, provided that recommendations of the PFSA regarding the payment of dividends are met.
On December 16, 2020, the PFSA published its recommendation on the dividend policy of commercial banks in 2021. Taking into consideration significant uncertainty related to further developments in conjunction with COVID-19 pandemic, temporary character of solutions adopted by banks to improve their capital positions during the pandemic, EU’s maintained cautious regulatory stance with regards to dividend payments and the change of EBA’s recommendations extending credit moratoria, PFSA found necessary to withhold dividend payments by commercial banks in the first half of 2021. On January 13, 2021, the Bank received from the PFSA an analogous individual recommendation on withholding a dividend payment in the first half of 2021.
Given the above recommendations and the PFSA’s stance, uncertainty with regards to business conditions related to the COVID-19 pandemic, existing legal/operational risks as well as taking into account the need to provide the required capital support for the growth of the scale of business, the Management Board of the Bank will recommend the Annual General Meeting a motion to retain all of the 2020 net profit in the Bank’s capital.