21 Dec 2017 17:08
18.12.2017 - Report 66/2017: Information from the Polish Financial Supervision Authority regarding minimum levels of capital ratios in 2018 and an individual mark-up measuring the sensitivity of the Bank to an unfavorable macroeconomic scenario determined for the purposes of the Bank's dividend policy in 2018.
UNOFFICIAL TRANSLATION
The Management Board of Bank Polska Kasa Opieki Spółka Akcyjna (hereinafter: "the Bank") hereby informs that on December 15, 2017 it received a letter from the Polish Financial Supervision Authority (hereinafter "KNF") regarding the minimum levels of capital ratios in 2018, published by KNF on November 24, 2017.
KNF instructed the Bank to meet an additional own funds requirement to cover the risk of mortgage-secured loans denominated in foreign currency to households at Bank's Capital Group level in the amount of 0.01 pp. resulting from exposure of Pekao Bank Hipoteczny S.A.
Moreover, in the abovementioned letter, KNF referring to the criteria for the banks' dividend policy for 2018 published on November 24, 2017, informed the Bank that as a result of stress tests conducted by KNF, the Bank individual mark-up (ST) measuring the sensitivity of the Bank to unfavorable macroeconomic scenario, defined as the difference between the total capital ratio (hereinafter: "TCR") in the reference scenario and TCR in the stress scenario including supervisory adjustments, amounts to 1.27%.
Taking into account all of the above and assuming buffer of other systemically important institution at the level of 0.5% as stated by KNF and positively opinioned by the Financial Stability Committee, which Bank's Management Board reported in Current Report No. 62/2017 of November 29, 2017 and the Report Current No. 64/2017 of December 7, 2017, minimum capital ratios for the Bank's Capital Group to pay up to 100% of dividend are 16.78% for TCR and 14.78% for Tier 1 capital, in accordance with the dividend policy published by KNF.
Legal basis: art. 17 of 1 MAR - inside information