Sale of performing loans portfolios – update

In reference to the current report No 26/2021 of 17 November 2021, Getin Noble Bank S.A. (“Bank”) informs that based on results of an analysis of the received materials, it will discontinue the process of selling portfolios of loan agreements granted to housing associations (“Portfolios”), due to unsatisfactory improvement of capital ratios that would be achieved after the sale of the assets in question on terms offered.

Changes in the macroeconomic environment of the Bank after the end of the stage of collection of binding sales offers, i.e. interest rate increases which translated into an increase in the Portfolios’ profitability, also had a significant impact on this decision. Given these conditions, the sale of the Portfolios – in the Bank’s opinion – has become economically unjustified.

In view of the above, the Bank has started preparing for a more economically justified transaction of synthetic securitization of the Portfolios, which will allow both to achieve the expected effect of lower capital requirements and to retain the majority of the profits generated from the Portfolios.

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