25.11.2021

Decision of Polish Financial Supervision Authority concerning an additional capital requirement related to FX mortgage loan portfolio imposed on mBank S.A on the consolidated level

Current Report 

Drafted on:

25.11.2021

Current report No

60/2021

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: 

With reference to the Current Report No 55/2021 of 2 November 2021, the Management Board of mBank S.A. (“Bank") informs that the Bank received a letter from the Polish Financial Supervision Authority (“PFSA") dated 24 November 2021 concerning the level of the additional own funds requirement at the consolidated level of the Capital Group above the amount calculated in accordance with the detailed rules defined in the 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 and amending Regulation (EU) No 648/2012 (“Regulation No 575/2013”). The PFSA required the Bank to maintain, at the consolidated level, own funds for covering the additional capital requirement related to risk arising from foreign currency mortgage loans for households at 2.12 p.p. over the amount of the total capital ratio (TCR) referred to in article 92 item 1 letter c of the Regulation No 575/2013. The additional own funds requirement should be covered at least in 75% by Tier 1 capital (which corresponds to the capital requirement of 1.59 p.p. over the Tier 1 capital ratio referred to in Article 92 item 1 letter b of the Regulation No 575/2013) and at least in 56% by Common Equity Tier 1 capital (which corresponds to a capital requirement of 1.19 p.p. over the Common Equity Tier 1 capital ratio calculated in accordance with Article 92 item 1 letter a of the Regulation No 575/2013). The PFSA decision has the power of a final administrative decision and is immediately in force.

 

Previously, the additional capital requirement for mBank S.A. on the consolidated level amounted to 2.82 p.p. for the total capital ratio, 2.11 p.p. for the Tier 1 capital ratio and 1.58 p.p. for the Common Equity Tier 1 capital ratio. The Bank informed about these requirements in the report No 83/2020 dated 18 December 2020.

 

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

 

 

SIGNATURE OF THE PERSONS REPRESENTING THE COMPANY

Vice-director for investment supervision, Compliance Department

Maciej Mołdawa 25.11.2021