Decisions of the Polish Financial Supervision Authority on the update of the recovery plan and the appointment of a trustee             

Getin Noble Bank S.A. ("Bank", "Issuer") informs that it received a decision of the Polish Financial Supervision Authority ("PFSA") regarding the PFSA's refusal to approve the update of the Recovery Plan of the Getin Noble Bank S.A. Group ("Recovery Plan”), adopted by resolution of the Issuer's Supervisory Board No 63/2021 of 21 June 2021 ("Decision No 1"). On the basis of Decision No 1, the PFSA requested the Bank to submit a new Recovery Plan within 4 months from the date of its receipt.

At the same time, the Bank informs that it also received a decision of the Polish Financial Supervision Authority concerning the appointment, as of 27 December 2021, of a trustee, pursuant to Article 144 section 1, section 1a, section 6 of the Banking Law Act ("Decision No 2").

Pursuant to Article 144 section 6 of the Act, the Polish Financial Supervision Authority entrusted the function of a trustee to the Bank Guarantee Fund (“BGF”).
Decision No 1 was issued on the basis of Article 141q section 7 in connection with Article 141q section 1 and Article 141m section 4 in connection with Article 141n section 5 of the Act, following examination of the Bank's request dated 15 January 2021 for approval of the Recovery Plan update.

In the justification of Decision No 1, the PFSA stated that the Bank's capital ratios were at that time below the minimum regulatory levels (TCR and Tier 1) and that, in the supervisory authority’s opinion, the assumptions and methods presented in the updated Recovery Plan with regard to achieving the required level of capital ratios were not sufficiently plausible.

In the summary of Decision No 1, the PFSA also indicated that the new Recovery Plan document should focus on the presentation of the Bank's financial situation in the context of the current market conditions (including int. al. an estimation of the impact of the interest rate hikes introduced by the National Bank of Poland (NBP) – the Bank informed about the positive impact of the two hikes in its current report No 24/2021 dated 10 November 2021), taking into account the potential costs of materialisation of the main risks inherent in the Bank's operations, as well as the substantiation of actions that significantly increase the Bank's capital base and ensure the immediate reconstruction of capital ratios to a level that meets at least the minimum regulatory requirements and creation of a safety buffer for extraordinary events and threats resulting from the economic environment, including the changing market situation.

In connection with Decision No 1, the Issuer's priority is to submit the new Recovery Plan to the PFSA as soon as possible, but not later than within 4 months.

In the justification of Decision No 2, the PFSA stated int. al. that the applied measure in the form of the appointment of a trustee is an element of the PFSA’s and the BGF’s support for the Bank's authorities in their efforts aimed at improving the Bank's financial situation, including ensuring the effectiveness of implementation of the Bank’s Recovery Plan or its update.

The selection of the trustee in the form of the BGF is dictated by the Fund's experience in restructuring activities and is also meant to enable effective and efficient self-recovery. In the PFSA’s opinion, the BGF guarantees the protection of the Bank's interests, plus it has the qualifications and professional experience as regards the organisation and rules of banks’ operations.

The appointed trustee is not a governing body of the Bank and its activities do not limit the powers of statutory bodies.

The appointment of the trustee will not affect the provision of services by the Bank to its clients.

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