Bank BPH : Supervisory recommendation on additional capital requirement associated with the portfolio of foreign currency mortgage loans

Supervisory recommendation on additional capital requirement associated with the portfolio of foreign currency mortgage loans

21 October 2016

Bank BPH SA ('Bank BPH') announces that on 21 October 2016 it received decision from the Polish Financial Supervision Authority ( 'PFSA') concerning recommendation to maintain the Bank BPH own funds to cover the additional capital requirement for hedging the risk arising from foreign currency mortgage loans to households at the level of 3.28 percentage points higher than the value of the total capital ratio. The additional capital requirement shall consist of at least 75% of Tier I capital (which corresponds to a capital requirement at the level of 2.46 percentage points), and at least 56% of the share capital Tier I (which corresponds to a capital requirement at the level of 1.84 percentage points). Therefore, Bank BPH should maintain capital ratios at the level not lower than 12.71% for Tier 1 capital ratio and 16.53% for the total capital ratio.

On the day of the report, Bank BPH meets the levels of capital ratios recommended by the PFSA.

Legal basis: Art. 17 of 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.