Current Report no. 37 (2019)

12 november 2019

Letter from the Polish Financial Supervision Authority confirming the expiration of the decision regarding the maintenance by Santander Bank Polska S.A. own funds to cover the additional capital requirement to secure the risk arising from foreign currency mortgage loans to households.

Management Board of Santander Bank Polska S.A. ("the Bank") informs that on 12 November 2019 it received the decision of the Polish Financial Supervision Authority ("PFSA") regarding the expiry of a decision issued by PFSA dated of 15 October 2018 in the subject of maintain own funds to cover the additional capital requirement to secure the risk arising from FX mortgage loans for households at over the amount calculated in accordance with the detailed rules set in Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012). Thus, the Bank is not obliged to keep the additional capital requirement indicated in the expired decision.

Until now, the level of additional capital requirement of the bank, referred to above, was 0.51 pp. over the amount calculated in accordance with art. 92 clause 1 letter c of the Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms that should be composed at least in 75% of Tier I capital (equivalent to own funds requirement of 0.38 pp over the amount calculated in accordance with art. 92 clause 1 letter b of the Regulation no. 575/2013) and at least in 56% of the common equity Tier I capital (equivalent to own funds requirement of 0.29 pp over the amount calculated in accordance with art. 92 clause 1 letter a of the Regulation no. 575/2013).

At the date of the report the Bank fulfills the Polish Financial Supervision authority requirement related to the minimum capital adequacy ratio on both the individual and consolidated levels.

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