PKO Bank Polski, Poland's largest lending institution, has said it does not plan to undertake any changes to its promised dividend payout proposal. This statement comes after it had purchased the Polish unit of Swedish Nordea for 2.83 billion zlotys or US$887 million.
According to PKO CEO Zbigniew Jagiello during a news conference, "The shareholder's meeting is next week and it will decide about the dividend, but we do not change our recommendation."
In early 2013, the bank had proposed a dividend totalling 2.25 billion zlotys or about 1.80 zlotys per share. This accounts for 61% of the 2012 net profit and residual earnings from the previous years.
With increasing competition from foreign banks and lenders, the purchase is intended to expand the financial services platform of PKO. The sale included the Nordea Bank, its financing and life insurance units operating in Poland. Nordea retains its mortgage portfolio and would be participating in risk of the loans that stand to lose their velues.
The said takeover, which would still be subject to regulatory approval, stands to increase the asset portfolio of PKO by 16% to 229 billion zloty. It would also expand its reach with an additional 136 outlets.
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