XTB wants to pay record dividends and buy back its shares. It all depends on KNF

According to preliminary estimates, the company’s net profit for 2022 will amount to about PLN 761.6 million. XTB’s board of directors recommends a 50 percent payment to shareholders. last year’s earnings in the form of dividends, a total of about PLN 381.5 million, Which corresponds to a dividend of 3.25 PLN per share and a dividend yield of 9.28%. for Tuesday price. In addition, XTB wants to allocate about PLN 188.7 million to buy back and redeem its shares, the company said in a press release.

“The above recommendation and buyback of shares of the Company is subject to obtaining permission from the Polish Financial Supervisory Authority to buy back up to 5,683,635 of its shares (representing 4.84% of the total number of shares/votes in the Company) by December 31 ( December) 2023., the purpose of which was to retrieve them, ”- stated in the official statement.

The company mentioned it In the absence of possible approval from KNF To repurchase private shares or extend the period for obtaining such approval based on the intention of the Board of Directors 75% will be paid to the shareholders. The profit achieved in 2022, which would equate to PLN 4.86 in dividends per share. then The dividend yield will be 13.87 percent. at Tuesday’s closing price.

Either way it will be Record-breaking nominal dividends paid by XTB From the beginning of listing on the stock exchange. The company paid out a dividend of PLN 1.5 per share from the 2021 earnings, but has so far paid out the largest amount of dividends for 2020, when PLN 1.79 per share went to shareholders. Then the dividend rate was 9.9 percent, so only 75 percent was paid out. Profit will allow to overcome this level. After the information, XTB’s share price increased by more than 5%. It reached a historic peak of PLN 36.90.

“The above recommendation of the Company’s Board of Directors is in line with XTB’s dividend policy, which assumes that the General Assembly recommends the payment of dividends at the level of 50 – 100% of the Company’s standalone net profit for a given financial year, taking into account factors such as the need to ensure an appropriate level of interest rates. The adequacy of the company’s capital and the necessary capital for the development of the group, as well as taking into account the guidelines of the Polish Financial Supervisory Authority.

Michael Kopecky