Current Report no. 11 (2016)

The proposal regarding dividend

Bank Zachodni WBK S.A. (the “Bank”) hereby informs that the Bank’s Management Board tabled the following proposal that has been approved by the Supervisory Board:

• to allocate PLN 587,564,899.06 from the Bank’s undivided net profit for 2014 and
• to allocate PLN 702,484,042.94 from the Bank’s net profit for 2015 to dividend for shareholders, for which means that the proposed dividend per share will be PLN 13,
• to set the dividend registration date for 29th April 2016, while the dividend pay-out date for 16th May 2016.

The Management Board and Supervisory Board will submit the above proposal along with the recommendation to the Annual General Meeting of Bank.

Bank’s Management Board recommendation regarding proposed dividend payment.

The following are arguments to support the notified proposals, i.e. paying dividends from the undistributed net profit of the Bank for the year 2014 representing 29.5% of the annual profit of 2014 and the allocation to the dividend payment of 40% of net profit from 2015

The Management Board would like to present following arguments, supporting this proposal. The following indicators achieved on the day 31.12.2015 confirm the good capital standing of the Bank and the Group of Bank Zachodni WBK S.A.

• Tier I capital ratio of the Bank 15,40%
• Total capital ratio TCR of the Bank 15,80%
• Tier I capital ratio of the Group 14,10%
• Total capital ratio TCR of the Group 14,62%

Capital ratios on an individual and consolidated basis are above the minimum capital ratios resulting from decisions and recommendations of Polish Financial Supervision Authority (PFSA)

The Management Boards considers that:

• level of retained profits is sufficient to conduct the strategy of the Bank/Group and provides adequate balance between efficient capital utilisation and growth.
• accumulated capital base reflects prudent approach to acceptable risk level associated to current and future Bank business and ensuring safeness of placed deposits.
• The Bank fulfils the recommendations issued by the Polish Financial Supervision Authority of 15th December 2015 on the principles of the dividend policy of banks in 2016 and the individual recommendations issued on 10th March 2016 for Bank Zachodni WBK S.A

Legal basis:
§ 38 sec. 1 it. 11 of the Finance Minister’s Ordinance of 19 February 2009 re. current and periodic reports published by the issuers of securities and the rules of equal treatment of the information required under the laws of non-member states.