Polish regulator sets 2023 dividend policy for banks

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FILE PHOTO: Logo of Poland's KNF regulator is pictured on their headquarters in Warsaw

WARSAW (Reuters) – Poland’s financial regulator KNF has adopted a new dividend policy for banks for 2023, allowing them to pay out a percentage of their net profit to shareholders depending on meeting specific criteria, it said on Tuesday.

To qualify to pay up to 50% of 2022 net profit, banks will need a leverage ratio higher than 5% and sufficient capital buffers.

Banks that can pay up to 75% will have to meet the capital criteria for a 50% payout, taking into account their sensitivity to negative macroeconomic scenarios.

To pay out 100% of profit in dividends, banks must meet all the criteria set for lower payouts and their loan portfolio has to be of good quality, with non-performing loans not higher than 5%.

All the criteria have to be met both on consolidated and non-consolidated levels, the regulator said.

The allowed dividend paid will also depend on the level of foreign currency mortgages.

(Reporting Anna Koper and Pawel Florkiewicz; Editing by Mark Porter)

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