Current Report 

Drafted on:

18.12.2017

Current report No

74/2017

Abbreviated issuer’s name

mBank

Contents: 

With reference to the Current Report No. 67/2017 of 22 November 2017, the Management Board of mBank S.A. ("Bank") informs that the Bank received a letter from the Polish Financial Supervision Authority ("PFSA") dated 15 December 2017, concerning the level of additional own funds requirement over the amount calculated in accordance with detailed rules defined in the Regulation (EU) No 575/2013 (“Regulation”) for the Group level.

In the above letter the PFSA recommended mBank to maintain own funds for covering the additional capital requirement related to the risk of the foreign currency mortgage loans for households at the Group level at 3.53 p.p. over the amount of the total capital ratio (TCR) calculated in accordance with art. 92 item 1 letter c of the Regulation, which should be covered at least in 75% by Tier 1 capital, which corresponds to the capital requirement of 2.65 p.p. over the Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter b of the Regulation and at least in 56% by Common Equity Tier 1 capital, which corresponds to a capital requirement of 1.98 p.p. over the Common Equity Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter a of the Regulation. At the date of this current report, the mBank fulfils the PFSA requirement related to the minimum capital adequacy ratios on both the individual and consolidated levels.
In addition, the PFSA informed the Bank, that as a result of stress tests conducted by the PFSA, an individual add-on (ST) for mBank S.A. used in the commercial banks' dividend policy, measuring the bank's sensitivity to an unfavorable macroeconomic scenario, defined as the difference between the TCR in the reference scenario and the TCR in the shock scenario including supervisory adjustments, amounts to 0.00%.

President of the Management Board

Cezary Stypułkowski 18.12.2017