28 Jan 2019 07:00
UNOFFICIAL TRANSLATION
Report No. 2/2019:
The PFSA letter regarding individual criteria for the dividend policy for Bank Pekao S.A in 2019
Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby informs that on January 21, 2019, the Bank received a letter from the Polish Financial Supervision Authority (the "PFSA") regarding individual criteria for the commercial bank dividend policy in 2019. Highlighted in the abovementioned letter, the criteria for dividend payment of up to 75% of the profit earned in 2018, as well as the adjustments for dividend payment for the banks with the exposure to foreign loans are consistent with the criteria published on January 15, 2019 in the PFSA statement of the supervisory authority regarding the criteria for the dividend policy of commercial banks, cooperative and associative banks, insurance and reinsurance companies, brokerage houses, investment fund companies and general pension management companies in 2019.
The criteria for dividend payment of up to 100% of the profit earned in 2018, additionally incorporate the bank's sensitivity to the adverse macroeconomic scenario (ST add-on). The sensitivity to the adverse macroeconomic scenario was defined as the difference between total capital ratio (TCR) in the reference scenario and TCR in the adverse scenario at the end of forecast period (2020).
The results of stress tests, including supervisory adjustments, were taken into account in determining the ST add-on. Due to the assumption of the stability of the balance sheet in force this year, which is reflected by the banks' lack of ability to respond to adverse changes in external environment, the ST add-on was reduced by the conservation buffer at the level of 2.5 p.p., in force from January 2019.
According to the PFSA letter, the ST add-on for the Bank was set at the level of 6.78 p.p. After the deduction of the conservation buffer, the ST add-on amounts to 4.28 p.p.
In line with the abovementioned information, the Bank is required to maintain CET1 ratio at the level of 12.27%,Tier 1 ratio at the level of 13.77%, and TCR at the level of 15.77%, in order to meet criteria for dividend payment of up to 75% of the 2018 net profit. In order to meet criteria for dividend payment of up to 100% of the 2018 net profit, the Bank is required to maintain CET1 ratio of at least 16.55%, Tier 1 ratio at the level of 18.05%, and TCR at level of 20.05%.
Legal basis: Art. 17 of (1) MAR - inside information
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