Report No. 46/2017

Legal basis:

Article 17.1 MAR Regulation

Contents of the Report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski S.A. (“Bank”) hereby reports that on 15 December 2017 received the letter from the Polish Financial Supervision Authority (“PFSA”) concerning imposing on the Bank the amount of an additional capital requirement over the amount calculated in accordance with detailed rules defined in Regulation (EU) No 575/2013 (“Regulation”) for the Bank’ Group. The letter refers to the decision of the Polish Financial Supervision Authority (“PFSA”), about which Bank informed in the report no. 42/2017).

The PFSA imposed the additional capital requirement covering the risk of the foreign currency mortgage loans for households, at Bank’s Group level at amount 0.61 p.p., for the amount calculated in accordance with article 92 item 1 letter c of the Regulation , which should be covered at least in 75% by Tier1 funds (equivalent to own funds requirement of 0.46 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation).

Moreover PFSA informed Bank about additional add-on related to Bank’s sensitivity to the adverse macroeconomic scenario, about which Bank informed in the report no. 43/2017, in the amount of 2.86 p.p.

At the date of this current report, the Bank fulfills the PFSA requirement related to the minimum capital adequacy ratios on both the individual and consolidated levels. The Bank informs that on 30.09.2017 it fulfils all the criteria for the dividend payment for 2017 up to 75% of the net profit before the deductions of K1 and K2 criteria.