21.10.2016

Decision of Polish Financial Supervision Authority concerning the amount of an additional capital requirement for mBank S.A. related to FX mortgage loan portfolio

Current Report 

Drafted on:

21.10.2016

Current report No

88/2016

Abbreviated issuer’s name

mBank

Contents: 
The Management Board of mBank S.A. (“Bank") informs that it received the decision of the Polish Financial Supervision Authority (“PFSA") on 20 October related to fulfilling the amount of an additional capital requirement by the Bank over the amount calculated in accordance with detailed rules defined in Regulation of the European Parliament and of the Council (EU) No 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms, amending Regulation (EU) No. 648/2012 (OJ L 176 of 27 June 2013, p. 1 with additional amendments, “Regulation No. 575/2013").

The PFSA recommended to mBank S.A. to fulfil the additional capital requirement for covering the risk related to the foreign currency mortgage loans for households at 3,81 p.p. on the individual basis, over the amount calculated in accordance with article 92 item 1 letter c of the Regulation No. 575/2013, which should be covered at least in 75% by Tier 1 capital (equivalent to own funds requirement of 2,86 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation No. 575/2013) and at least in 56% by Common Equity Tier 1 capital (equivalent to own funds requirement of 2,13 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation No. 575/2013). This decision, based on the article 11.2 item 21 of the Banking Law, is immediately in force.

Previously, as the Bank informed in the report no 86/2015 published on 24 of October 2015, mBank S.A. was obliged to maintain own funds for the coverage of additional capital requirement at the level of 4,39 p.p. on the individual basis, which consists of at least 75% of Tier 1 capital (equivalent to 3,29 p.p.).

At the date of this current report, mBank S.A. fulfils the PFSA requirements related to the minimum capital ratios on both the individual and consolidated levels.

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice-President of the Management Board

Christoph Heins 21.10.2016