Bank Pekao S.A. -2018 EU-Wide Stress Test Results

UNOFFICIAL TRANSLATION

02.11.2018 - Report 27/2018: Bank Pekao S.A. - 2018 EU-Wide Stress Test Results

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby informs that the Bank was subject to the 2018 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Polish Financial Supervision Authority (KNF), the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).

The Bank notes the announcements made today by the EBA on the EU-wide stress test. The Bank fully acknowledges the outcomes of this exercise.

The 2018 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the supervisory review and evaluation process (SREP). The results will assist competent authorities in assessing Bank's ability to meet applicable prudential requirements under stressed scenarios.

The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2018-2020). The stress test has been carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account future business strategies and management actions. It is not a forecast of Bank profits.

Based on the results of the exercise and under the supervisor's control, the Bank will assess the impact of the results on the Bank's forward looking capital plans and its capacity to meet applicable prudential requirements; and determine whether any additional measures or changes to the Bank's capital plan are needed.

According to the EU-wide stress test results, the consolidated Common Equity Tier 1 (CET1) ratio of Bank would be in 2020 at the level of 16.50% under the baseline scenario and at 15.47% under the adverse scenario. Consolidated CET1 ratio of Bank reflecting the full IFRS9 effect would be at the level of 16.14% and 14.55% respectively.

Bank's EU-wide stress test results attached.

http://www.rns-pdf.londonstockexchange.com/rns/2605G_1-2018-11-2.pdf

Legal basis: Article 17 (1) MAR - inside information