The ability to pay out dividends is provided for in the “mobile Bank” strategy of mBank Group for 2016-2020 and remained valid in the strategy for 2020-2023. However, in its decision recommending the dividend payment to the Supervisory Board, the Management Board of mBank mainly considers current recommendations of the Polish Financial Supervision Authority concerning dividend payments by banks.
Taking into account the above criteria, the dividend yield for mBank was 5% of the net profit for 2019. In March 2020, due to the state of the epidemic announced in Poland and possible further negative economic consequences of this state, the Polish Financial Supervision Authority, however, recommended the banks to retain all profit generated in previous years, which is why mBank withdrew its decision to pay out a dividend of 5% of the net profit for 2019. In addition, in December 2020, the KNF announced its position on the payment of dividends in 2021. Due to the significant uncertainty as to the further developments related to the COVID-19 pandemic, the temporary nature of solutions used by banks to improve the capital situation during the pandemic, the continued cautious supervisory positions in the EU regarding dividend restrictions and other forms of lowering capital resources, and also the amendment of the EBA guidelines extending the moratoria, the KNF deemed it necessary for commercial banks to suspend the payment of dividends in the first half of 2021.