18.01.2019

Letter from the Polish Financial Supervision Authority regarding individual assumptions of the 2019 dividend policy for mBank S.A.

Current Report 

Drafted on:

18.01.2019

Current report No

02/2019

Abbreviated issuer’s name

mBank

Contents: 

The Management Board of mBank S.A. ("Bank") informs that on January 18, 2019, the Bank received a letter from the Polish Financial Supervision Authority ("PFSA") regarding the assumptions of the dividend policy for 2019.

 

The criteria for dividend payment up to 75% of the profit generated in the previous year are in line with the criteria published in the PFSA's position of January 15, 2019 regarding the dividend policy assumptions for commercial banks, cooperative and associative banks, insurance and reinsurance companies, brokerage houses, investment fund companies and universal pension fund companies in 2019.

 

Criteria for dividend payment up to 100% of the profit generated in the previous year, additionally take into account the bank's sensitivity to the unfavorable macroeconomic scenario (ST parameter).

 

The Bank's sensitivity to the unfavorable macroeconomic scenario was defined as a difference between the total capital ratio (TCR) in the reference and shock scenarios at the end of the forecast period (2020). The indicator was determined on the basis of the results of stress tests, taking into account supervisory adjustments. Due to the stability of the balance sheet assumed this year, i.e. the inability of the banks to react to the adversely changing external environment, the ST indicator has been reduced by the current level of the capital conservation buffer of 2.5 p.p. valid from January 2019.

 

The PFSA informed the Bank that as a result of the stress tests carried out, the ST's individual add-on, measuring the Bank's sensitivity to an unfavorable macroeconomic scenario, amounts to 5.05 pp. After deducting the capital conservation buffer, the ST parameter for the Bank stands at 2.55 pp.

 

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Deputy Director of Compliance Department

Andrzej Jakubiak 18.01.2019