Update as regards predictions of the pandemic’s impact on the Bank’s activities and financial results

In reference to the current report No 10/2020 of 17 April 2020 and the current report No 17/2020 of 2 June 2020, Getin Noble Bank S.A. (the “Bank”) informs that on 27 August 2020, it decided to recognise an additional impairment loss of PLN 90 million due to the expected increase in the credit risk arising from the consequences of the COVID-19 pandemic. The impairment loss will reduce the financial result of the Bank in Q2 of 2020 on a consolidated and stand-alone basis.
The amount of the impairment loss was estimated based on the best knowledge of the Bank’s Management Board at the time of publication of this report as regards the potential impact of the COVID-19 pandemic on the deterioration of the quality of the Bank’s loan portfolio.

The recognition of the impairment loss is an extraordinary measure and the amount of the impairment loss was calculated based on the conclusions of the analyses covering three areas, i.e. the impact of the COVID-19 pandemic on the potential deterioration of the loan quality for the portfolio covered by moratoria at 30 June 2020, the impact of the worsened macroeconomic forecasts on the expected changes in the portfolio quality taking into account the impact of the support schemes for borrowers, and scenario analyses for the corporate portfolio taking into account the sectors of the borrowers’ activity.

The impairment loss will have no material impact on the current capital ratio of the Bank and the Group. In accordance with Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic, the value of the impairment loss will be substantially neutralised in the Bank’s own funds and accounted for in accordance with the depreciation path indicated in the Regulation in the future years.

Until the end of the review of the financial statements for the first half of 2020, the above data may change. The planned date of publication of the interim report is 11 September 2020.

Legal basis: Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 (MAR).