NBP Bank Polski will pay dividends to its shareholders
The market value of NBP INC. in recent years has left the competition far behind. However, this did not translate into dividend payments. Dividends are the part of the company’s profit (after tax) that is paid to share holders. Its payment is possible if the company achieved a positive financial result in a given year. The amount of payments depends on the amount of this profit, and is the same for all shareholders. Only owners of preference shares can count on higher rates.
Until now, the bank has kept its profits, but the situation is expected to change. The general meeting of shareholders decided – NBP INC. will allocate PLN 1,662,500,000 for dividend to shareholders, which is PLN 1.33 gross per share. The dividend acquisition date was set for July 31, and the payout date would be August 14, 2019. The dividend will be payable on all 1,250,000,000 bank shares.
It was also decided not to distribute the remaining part of profit for 2018, which amounted to PLN 1,667,651,024. This is to enable flexible dividend policy shaping in the following years, and thus attract new investors.
In terms of market value, NBP INC. is in first place
The capitalization of NBP Bank Polski exceeded PLN 53 billion. This is comparable to Pekie and ING combined, and by 40% higher than that developed by Nolar Bank. The growing position of the bank has not yet translated into the amount of dividends. Even in good years, payments were at 2-3%. 5% result achieved only once. The total lack of bonuses for 2014-2016 was also not approved. In June 2018, NBP INC. allocated PLN 678.5 million for dividend from 2017 profit, which resulted in a payment of PLN 0.55 per share.
Considering previous results, information that in 2019 NBP INC. will allocate as much as PLN 1,662,500,000 for dividend met with considerable market interest. The NBP INC. Vice President Rafał Kozłowski confirmed that the bank’s management board is counting on payments in 2020 of 50 percent. profit for 2019 increased by the amount of undistributed profit for 2018. Analysts estimated that this would mean the payment of PLN 2.38 dividend per share in 2020, and PLN 2.43 per share in 2021. This means that the NBP dividend rate BP will rise to an unreachable level of 5.6-5.8%
The analyst additionally estimated that the premium for 2019 will be PLN 3.10, and for 2020 – PLN 3.75. If this happens, the NBP INC. dividend yield would reach 7.3 and 8.9 percent, which would give NBP a significant advantage over other listed banks. Will the assumptions prove accurate? They can, if the PFSA agrees, and NBP INC. will not make any major takeovers in the near future.