PKO BP shareholders have approved, at the AGM yesterday, a dividend of PLN 0.8 per share, which equals to a dividend yield of 2.2% and a payout ratio of 45.5%. The record date was set for July 10 and the dividend will be paid on August 1.
The shareholders have also agreed to cut the number of supervisory board members from 9 to 7. The AGM has also called off 7 supervisory members and had 5 new members appointed. As a result, 6 out of 7 members are political appointees. According to Polish daily Parkiet, Pawel Szalamacha, deputy treasury minister, has stated that the new supervisory board should assess management board work before taking any decision on personnel changes.
Separately, Andrzej Podsiadlo, the CEO of the bank, stated after the AGM that the 1Q06 results should be better than 1Q05 when the bank earned PLN 415.8m. As this earnings guidance is very vague, we do not expect any trading impact.