The management board of PKO BP has recommended a dividend of PLN 0.98 per share (up 22.5% y/y, compared to a dividend of PLN 0.80 per share last year) that equals to a payout ratio of some 46.3% and a dividend yield of 2.1%.
Our view: We expect only a slightly positive market reaction, as this is in line with recent press comments and the dividend policy of the bank. However, in our opinion, given a core capital adequacy ratio of 11.8% at year-end, the bank could well afford to exceed last year’s payout of 46%.