Report No. 60/2024

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 26 November 2024, regarding the minimum level of own funds and eligible liabilities ("MREL", the minimum requirement for own funds and eligible liabilities).

The designated MREL TREA requirement for the Bank, based on consolidated data, is 15.36% TREA and the MREL TEM requirement is 5.91% TEM. The Bank should comply with both requirements simultaneously, with the respective subordination requirement, as soon as it is informed of the BGF designated MREL TREA and MREL TEM levels.

In addition, as the Bank's resolution  group as at 31 December 2023 exceeded €100 billion in total assets, it was recognized as a Top Tier Bank, as it met requirement set in art. 97h point 1 Act on Bank Guarantee Fund. Consequently, the Bank is obliged to comply with the MREL subordination requirement designated for a Top Tier Bank from 1 January 2027.

The MREL TREA requirement for the Bank on a consolidated basis should be fulfilled by own funds and eligible liabilities meeting a subordination requirement of 14.56% TREA from 1 January 2027. Until then, the Bank is required to maintain own funds and eligible liabilities meeting a subordination requirement of not less than 13.90% TREA. The Bank's MREL TEM requirement on a consolidated basis should be fulfilled by own funds and eligible liabilities meeting a subordination requirement of 5.91% of TEM from 1 January 2027. Until then, the Bank is required to maintain own funds and eligible liabilities meeting a subordination requirement of not less than 5.62% of TEM.

The adopted TREA and TEM levels have been adjusted to exclude PKO Bank Hipoteczny S.A. and Kredobank from consolidation.

MREL requirements are subject to annual updates.