Recommendation of the Polish Financial Supervision Authority concerning the additional capital requirement related to the portfolio of foreign currency loans and mortgage loans

Getin Noble Bank S.A. (the “Bank”) informs that on 13 November 2019, it received a decision from the Polish Financial Supervision Authority (the “Authority”) containing a recommendation to maintain own funds to cover the additional capital requirement to hedge the risk arising from foreign currency loans secured by mortgage to households at the level of 1.32 p.p. above the total capital ratio (TCR), referred to in Article 92 paragraph 1 point (c) of Regulation No 575/2013.

The additional capital requirement should be composed in at least 75% of Tier I capital (corresponding to capital requirement of 0.99 p.p.) and in at least 56% of Tier I common equity (corresponding to capital requirement of 0.74 p.p.).

Until now, in accordance with the current report No 93/2018 of 17 October 2018, the Bank used to implement, on an individual basis, the Authority’s recommendation on the maintenance of own funds to cover the additional capital requirement in order to secure the risk arising from foreign currency loans secured by mortgage to households, amounting to 1.29 p.p., which consisted in at least 75% of Tier I capital (corresponding to capital requirement of 0.97 p.p.) and in at least 56% of Tier I common equity (corresponding to capital requirement of 0.72 p.p.).

The Bank informed about the Authority’s previous recommendations issued in this regard in the following current reports:

• No 47/2015 of 24 October 2015
• No 145/2016 of 20 October 2016
• No 129/2017 of 24 November 2017
• No 93/2018 of 17 October 2018

The current requirement for a combined buffer on an individual basis for the Bank is, respectively:

• total capital ratio (TCR) of 14.82%;
• Tier 1 capital ratio (T1) of 12.49%;
• Tier 1 common equity (CET1) of 10.74%.

Legal basis: Article 17 paragraph 1 of MAR