Dividend

The Dividend Policy of Alior Bank S.A. relies on the following principles:

• The Bank strives to manage the capital efficiently and maximise the capital rate of return for its shareholders while preserving the capital surplus above the minimum capital thresholds required by law and in consideration of the pursuance of the development objectives of the Bank and its capital group;
• the level of dividend shall be each time proposed by the Management Board of the Bank;
• in accordance with the plans of the Management Board of the Bank as well as its own assessment of the risks and solvency, the Bank’s own funds, following the declaration to pay or payment of dividend, shall remain at the level that ensures satisfaction of the terms and conditions referred to in the Capital Management and Capital Planning Policy at Alior Bank S.A.;
• in determination of the dividend, the recommendations of the supervisory authority on dividend shall be taken into account;
• The Bank shall consider the aforementioned criteria both at the unitary and consolidated level.

In their recommendations, the Management Board of the Bank shall take account of the following:

• current economic and financial standing of the Bank and of the Group as well as the strategy of the Bank and of the Group and the ensuing plans for developing their operations and need for own funds;
• risk strategy which enables to ensure capital security for the Bank and the Group, that is, ensuring the Tier 1 ratio, solvency ratio and internal capital coverage ratio with own funds at the levels not lower than the ones resulting from supervisory regulations and internal minimum levels while considering Article 26 (2) of the CRR Regulation and Article 2 of the Own Funds Regulation;
• Recommendations of PFSA;
• Opinion of PFSA on dividend-related policy of financial institutions;
• limitations under the Act on Macro-Prudential Supervision;
• BGF guidelines regarding MREL limits;
• relevant provisions of the CCCP being currently in effect, in particular Article 348 (1) of the CCCP providing that the amount to be distributed among the shareholders cannot exceed the profit for the last financial year increased by undivided retained earnings and share premium and reserves carried forward and set up from profit, which may be appropriated for payment of the dividend. This amount must be reduced by uncovered losses, own shares and amounts, which according to the Act or by-laws, should be contributed from the last financial year’s profit to share premium or reserves;
• principles referred to in the Best Practices Collection pertaining to the dividend payment, in particular the principle no. 4.14; 
• macro-economic standing as well as the standing on financial markets in Poland and abroad. 

Regulation content:
Update of the Dividend Policy of Alior Bank S.A.
Dividend Policy of Alior Bank S.A.