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Polish insurer PZU calls on Pekao to pay dividend from 2020 profit

GDANSK, June 10 (Reuters) - Poland’s state-run insurer PZU has called on banking group Pekao, in which it has a 20% stake, to pay a dividend from its 2020 profit, Pekao said on Thursday citing PZU’s draft resolution for the bank’s shareholder meeting scheduled for Friday.

Pekao, also state-run, has previously said that it would not recommend paying a dividend for 2020. But last month Chief Executive Leszek Skiba said he would like the bank to pay a dividend for 2020 later this year if financial market regulator KNF agrees.

The financial regulator urged banks to suspend dividends in the first half of 2021 partly because of uncertainty created by the coronavirus pandemic.

PZU in its draft resolution proposed that, pending KNF’s approval, Pekao should pay a dividend of up to 3.21 zlotys per share.

If the regulator does not agree to Pekao’s dividend payment, PZU proposed that nearly 284 million zlotys from 2020 profit should go to bank’s capital reserves, whereas the remaining part, 842.5 million zlotys, should be retained in line with Pekao’s recommendation.

Reporting by Anna Banacka. Editing by Agnieszka Barteczko and Jane Merriman

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