Letter from the Bank Guarantee Fund

Report 37/2019: Letter from the Bank Guarantee Fund containing information on establishing the minimum requirement for own funds and eligible liabilities (MREL) for Bank Polska Kasa Opieki S.A.

Bank Polska Kasa Opieki Spółka Akcyjna ("Bank") informs that on 16th December 2019 the Bank received a letter from the Banking Guarantee Fund ("BFG") containing information on establishing the minimum requirement for own funds and eligible liabilities ("MREL").

BFG set consolidated MREL requirement at the level of 14,325% of the sum of total liabilities and own funds ("TLOF"), which corresponds to 21.533% of the total risk exposure ("TRE"). MREL for the Bank based on standalone data at the same date is 13,738% in relation to TLOF, which corresponds to 21,535% in relation to TRE. The above mentioned requirement should be met by the Bank by 31st December 2022.

BGF set a path to reach the above described limits both on standalone and consolidated basis. On consolidated basis as of 31st December of 2019, 2020 and 2021, MREL in relation to TLOF should reach 9,313%, 10,984% and 12,655% respectively, which corresponds to 13,999%, 16,510% and 19,022% in relation to TRE respectively.

On standalone basis as of 31st December 2019, 2020 and 2021, MREL in relation to TLOF should reach 8,938%, 10,538% and 12,138% respectively, which corresponds to 14,011%, 16,519% and 19,027% in relation to TRE respectively.

MREL requirements have been set on the basis of consolidated and standalone data as of 31st December 2018.

In reference to the discussed BFG letter the Bank additionally informs that as of 30th September 2019 the Bank meets the minimum requirements set by BFG for 31st December 2019, both at standalone and consolidated basis.

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