The Polish Financial Supervision Authority (KNF) has outlined dividend payout rules for commercial banks in 2024, allowing payouts of up to 75% of profits under specific conditions, while maintaining a general threshold of 50%.
Banks may distribute 50% of their profits if they:
Are not implementing recovery plans.
Achieve a Supervisory Review (BION) score of 2.5 or better.
Maintain a leverage ratio above 5%.
Meet minimum capital requirements, including CET1, Tier 1, and TCR ratios.
For payouts up to 75%, banks must also demonstrate a high-quality loan portfolio, with non-performing loans (NPLs) below 5%.
Banks with significant foreign currency housing loan portfolios face stricter dividend adjustments, ranging from 20 to 100 percentage points based on loan concentration and historical risk factors.
The KNF also mandates consultation for actions impacting capital, such as dividend payments from retained earnings or share buybacks, to ensure sector stability.
Source: biznes.pap.pl