Report No. 35/2022

Legal basis:

Article 17. 1 of the MAR Regulation

The Report:

The Management Board of PKO Bank Polski S.A. ("Bank") informs that the Bank received a letter from the Bank Guarantee Fund ("BGF") dated 2 December 2022, regarding the minimum level of own funds and eligible liabilities subject to write down or conversion ("MREL", the minimum requirement for own funds and eligible liabilities).

The BGF determined the target MREL TREA requirement for the Bank on a consolidated data at the level of 15.36%, which should be met by own funds and eligible liabilities meeting the subordination requirement at the level of 13.96% TREA by 31 December 2023.

The MREL TEM requirement for the Bank on a consolidated basis has been set at 5.91% TEM and should be met by own funds and eligible liabilities meeting the subordination requirement of 5.65% TEM by 31 December 2023.

The TREA and TEM levels were adjusted for exclusion from the consolidation of PKO Bank Hipoteczny S.A.

At the same time, the Bank informs that the BGF exempted PKO Bank Hipoteczny S.A. from the requirement to maintain a minimum level of its own and eligible liabilities.

In addition, the BGF has set the path to reach the target MREL requirement:

MREL TREA mid-term requirement as at 31.12.2022 – 11.68%

MREL TREA subordinated interim requirement as at 31.12.2022 – 10.98%

MREL TEM interim requirement for 31.12.2022 – 4.46%

MREL TEM subordinated interim requirement as at 31.12.2022- 4.32%