Current Report No. 32/2017

19 Dec, 2017

PFSA letter imposing on Bank Zachodni WBK S.A. the amount of an additional capital requirement for the Bank's Group

The Management Board of Bank Zachodni WBK S.A. ("Bank") hereby reports that on 15 December 2017 received the letter from the Polish Financial Supervision Authority ("PFSA") concerning imposing on the Bank the amount of an additional capital requirement over the amount calculated in accordance with detailed rules defined in Regulation (EU) No 575/2013 ("Regulation") for the Bank' Group.

The PFSA imposed the additional capital requirement covering the risk of the foreign currency mortgage loans for households, at Bank's Group level at amount 0.44 p.p., for the amount calculated in accordance with article 92 item 1 letter c of the Regulation , which should be covered at least in 75% by Tier I funds (equivalent to own funds requirement of 0.33 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation) and at least in 56% of the common equity Tier I capital (equivalent to own funds requirement of 0.25 p.p. over the amount calculated in accordance with art. 92 clause 1 letter a of the Regulation no. 575/2013).

In addition, PFSA informed the Bank that following the analyses performed by the KNF as part of stress tests, the individual add-on applied by commercial banks in their dividend policy to measure sensitivity to adverse macroeconomic scenarios and defined as the difference between total capital ratio ("TCR") in the baseline scenario and TCR in the acid scenario including regulatory adjustments, was set for Bank Zachodni WBK S.A. at 0.71 pp.

At the date of this current report, the Bank fulfills the PFSA requirement related to the minimum capital adequacy ratios on both the individual and consolidated levels.

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

Santander Bank Polska S.A. with its registered office in Warsaw, al. Jana Pawła II 17, 00-854 Warszawa, registered by the District Court for the capital city of Warsaw, 12th Commercial Division, set up under regulation of the Council of Ministers of 11 April 1988 on setting up Bank Zachodni in Wrocław (Journal of Laws of 1 July 1988, No. 21, item 142), registered under KRS number 0000008723, REGON 930041341, NIP 896 000 56 73, share capital of PLN 1,020,883,050 paid-up in full. Helpline: 1 9999 – fee as per the operator’s tariff.

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