17.03.2016

Polish Supervisory Authority review of additional capital requirements for mBank S.A. on consolidated basis and recommendation for mBank S.A. dividend policy

Current Report
Drafted on:	17.03.2016
Current report No	20/2016
Abbreviated issuer’s name	mBank

Contents:

With reference to the current report No. 6/2016 dated 9 February 2016 Management Board of mBank S.A. (Bank) informs that on 16 March 2016 Bank received a letter from the Polish Supervisory Authority (KNF) with information that additional capital requirements resulting from risk of foreign exchange mortgage loans for households were reviewed on consolidated basis as follows: for Tier 1 capital ratio down from 3.29 p.p. to 2.79 p.p. and for total capital ratio down from 4.39 p.p. to 3.72 p.p. In accordance with the above the Bank’s capital ratios on consolidated basis should be at least at the following levels: at the end of 2015 Tier 1 capital ratio – 11.79% and total capital ratio – 15,72%. From 1 January 2016 the Bank’s capital ratios on consolidated basis should be at least at the following levels: Tier 1 capital ratio – 13.04% and total capital ratio – 16.97%. Capital ratios on individual basis for mentioned periods remain unchanged and should be at least a the following levels: at the end of 2015 Tier 1 capital ratio – 12.29%, total capital ratio – 16.39% and from 1 January 2016 Tier 1 capital ratio – 13.54%, total capital ratio – 17.64%. As of 31 December 2015 the KNF’s requirements are met by the Bank, both on individual and consolidated level. Additionally KNF recommended that Bank increases its own funds by retaining the whole profit generated in the period from 1 January 2015 to 31 December 2015.

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice President of the Management Board

Hans-Dieter Kemler 17.03.2016