01.07.2021

The supervisory letter regarding position of the Polish Financial Supervision Authority with respect to dividend policy in H2 2021 and an additional add-on related to the Bank's sensitivity to an adverse macroeconomic scenario

Current Report 

Drafted on:

01.07.2021

Current report No

26/2021

Legal basis: 

§ 17 Regulation (EU) No 596/2014 Of The European Parliament And Of The Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

Contents: 

The Management Board of mBank S.A. ("Bank") hereby informs that, the Bank received a letter from the Polish Financial Supervision Authority ("PFSA") dated 30 June 2021 specifying the dividend policy criteria for commercial banks in the second half of 2021. The criteria are consistent to those published on 24 June 2021 in the PFSA’s statement regarding the dividend policy criteria for commercial banks in the second half of 2021.
Furthermore, in the above mentioned letter the PFSA informed, that  
- the Bank's sensitivity to an adverse macroeconomic scenario ("ST1 parameter"), measured by supervisory stress tests and determined as the difference between Total Capital Ratio (TCR) in the reference scenario and the TCR in the shock scenario at the end of the forecast period (2021), including supervisory adjustments was set at the level of 2.11 p.p.
- the Bank's sensitivity to an adverse macroeconomic scenario ("ST2 parameter"), measured by supervisory stress tests and determined as the difference between Total Capital Ratio (TCR) in the reference scenario and the TCR in the shock scenario at the end of the forecast period (2021), including supervisory adjustments, with the reservation that the T1 and T2 capital issues assumed by the Bank are not taken into account in the shock scenario was set at the level of 2.90 p.p.
The position of the PFSA concerns only the dividend payment from the profit generated in 2020. According to the letter, the PFSA’s additional position on retained earnings, including the profit for 2019, will be presented at the end of 2021 along with the dividend policy for 2022. The Bank will receive an individual recommendation regarding both the possibility of dividend payment and other actions that may result in a reduction of the capital base.

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice-director for investment supervision, Compliance Department

Maciej Mołdawa 01.07.2021