Poland will not force dividend revenue target should PKO BP withhold payout

By bne IntelliNews April 21, 2015

The Polish government hopes to meet its target of PLN4.5bn (€1.13bn) in revenue from dividends in 2015, unless the risks overhanging the banking sector knock it off track, the treasury minister said on April 21.

Wlodzimierz Karpinski said Warsaw will not seek other avenues to make sure it meets the target should PKO BP be ordered by financial watchdog KNF not to pay a dividend. The regulator has said it will "recommend" lenders with high exposure to Swiss franc loans do not pay out on 2014 results. PKO, Poland's biggest bank, is amongst the list of the most exposed lenders.

"The plan of sporting PLN 4.5bn in dividend receipts does not seem to be threatened, although we do not treat it as a regime that needs to be met," Karpinski told journalists in Katowice, according to PAP. Should PKO not pay a dividend, Warsaww will not look to hike payouts from other state-controlled companies, Karpinski indicated.

At the beginning of April, PKO BP received a recommendation from the KNF to withhold paying out dividend from 2014 profit until the KNF determines additional capital requirements for the bank so as to reduce risks of exposure to Swiss franc mortgage loans.

Poland’s target of €1.13bn from dividend payouts from state controlled companies was agreed in mid-2014, several months before the Swiss franc’s sudden appreciation against the zloty that followed the Swiss National Bank’s removal of the Swiss currency’s cap on the euro. This caused repayments of some 550,000 Swiss franc-denominated loans to shoot up, increasing risk for lenders. 

Related Articles

Turkish central bank releases $500mn of liquidity via new deposit swaps market

The Turkish central bank on January 18 provided around $500mn of liquidity with a maturity of one-week to Turkish lenders at the first auction held under the scope of the newly launched FX ... more

Azerbaijan's IBA doubles authorised capital to €640mn after share issuance

The International Bank of Azerbaijan, the country's largest lender, has doubled its authorised capital to AZN1.24bn (€640mn) through the issuance of shares on the domestic stock exchange, ... more

Poland preparing to push lenders into conversion of forex loans

Poland is preparing a set of “supervisory and regulatory mechanisms” to push banks into restructuring their forex loan portfolios, the National Bank of Poland (NBP) said on January 2. A ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss