Dividend policy

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.

On June 24, 2021 PFSA published a set of new relaxed dividend recommendations, allowing banks, upon meeting certain criteria, pay-outs from 2020 profits, among others. The Bank’s Management Board did not revisit the merits of a dividend pay-out given, among others, fairly symbolic net profit posted in 2020, and the Bank’s AGM on March 23, 2020, unanimously voted for a 100% retention of 2020 profit.

The Bank posted a net loss in 2021, hence there are no grounds for a dividend pay-out. Consequently, the Management Board does not intend to recommend shareholders a dividend pay-out in 2022.