Management board of PKO BP (4,4 GBP, -0,08%) has recommended DPS of PLN 1.8 which implies dividend yield of 5.26%. Management recommendation amount to PLN 2.25bn and consist of 61.12% of 2012 net profit and PLN 88.5m unappropriated profits. Dividend day has been proposed at 19 September and payment day at 4 October. Proposed dividend has been approved by the supervisory board of the bank. Our view: We believe the news is positive as proposed dividend per share was set above both consensus expectations of PLN 1.4 and our expectations of PLN 1.44. However given recent comments from the State Treasury Ministry about maximizing dividends from state owned companies, the market can still speculate about dividend being raised to 75% of net profit (maximum recommended by PFSA). This would lift DPS above PLN 2.1, dividend yield of 6.1%. AGM is scheduled for June. PKO BP share price (-0.29%) has outperformed the WIG 20 index (-1.94%) yesterday.