UNOFFICIAL TRANSLATION

14.02.2022

Report 2/2022: Polish Financial Supervision Authority's recommendation on the level of an additional capital requirement (P2G) imposed on Bank Polska Kasa Opieki S.A.

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") informs that on the 14 February 2022 it received a recommendation from the Polish Financial Supervision Authority ("PFSA") in which the PFSA recommended the Bank to limit the risk occurring in the Bank's operations by maintaining both at the standalone and at consolidated basis own funds to cover the additional capital add-on in order to absorb potential losses resulting from the occurrence of stress conditions (P2G). The add-on was determined at 0.80 p.p. over the total capital ratio, described in the Article 92 Section 1 Letter c of the regulation (EU) No. 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions, increased by the additional own funds requirement referred to in Article 138 Section 2 Point 2 of the Banking Law and by the combined buffer requirement referred to in Article 55 Section 4 of the Act on macro prudential oversight. The additional capital requirement should be made up of Tier 1 funds only.

The Bank's total capital add-on recommended to absorb potential losses arising from stress conditions is comprised of:

·    primary capital add-on recommended under Pillar II, in the amount of 0.27 p.p.,

·    supplementary capital add-on recommended under Pillar II, in the amount of 0.53 p.p.

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