PZU sees the potential to make the space for dividend payment in ’23 “very attractive”

PZU does not plan to pay an advance dividend from PZU Życie in 2022, but sees the potential to make the space for dividend payment in 2023 “very attractive”. The dividend may also include the amount of PLN 1.3 billion previously allocated to supplementary capital, informed Tomasz Kulik, member of the PZU management board.

“We are not considering such an extraordinary dividend (a dividend from PZU Życie this year – PAP), but we see the potential for the dividend payout space from 2022 in 2023 to be very attractive without such measures,” said Kulik.

“Assuming that the KNF’s recommendation regarding dividend payments would be the same as in 2021, we would then be able to reach for everything that was transferred to the supplementary capital (PLN 1.3 billion) and this implies a dividend of approx. 1.5 PLN per share. (…) In the second half of the year, we will receive the declared dividend from Pekao SA (…) this will be combined with – I hope – high insurance performance, high profitability of the main portfolio and the situation in the banking segment (. ..) and it will create quite an attractive dividend space, which, combined with this undivided result, could be an attractive tool in this relationship “- he added.

In June, the Ordinary General Meeting of PZU decided to allocate PLN 1.68bn for dividends, which translates into PLN 1.94 dividends per share. The record date is September 29, and payout will take place on October 20. The amount of the dividend corresponds to 83 percent. PZU SA’s profit generated in 2021 and 50.2 percent. PZU Group’s net profit attributable to the shareholders of the parent company.

Pursuant to the decision of the Ordinary General Meeting of Shareholders, the amount of PLN 1.3 billion of profit for 2021 was allocated to supplementary capital.

The current strategy of the PZU group for 2021-2024 assumes the payment of annual dividends from at least 50 percent. up to 100 percent consolidated net profit. The possible retention of a part of the profit is to be conditioned by the needs related to organic development or mergers and acquisitions.

A year ago, PZU paid out PLN 3.50 per share dividends.

Kulik did not rule out the necessity to consider recapitalization of PZU’s business in Ukraine on Thursday.

PZU announced on Thursday that as a result of the analysis of the impact of the war in Ukraine on the group’s operations and due to the lower rating of Ukraine, it decided to include in the consolidated result impairment losses on assets held by companies in Ukraine: increased write-offs due to expected credit losses for investment financial assets (PLN 53 million) and impairment losses on receivables (PLN 41 million). (PAP Biznes)

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