Current Report no. 2 (2019)

The Polish Financial Supervision Authority letter regarding individual criteria for the dividend policy 2019 for Santander Bank Polska

The Management Board of Santander Bank Polska S.A. ("Bank") hereby reports that on 18th January 2019 has received the letter from the Polish Financial Supervision Authority ("PFSA") referring to the criteria for the dividend policy for 2019.

Criteria for dividend payment up to 75% from the profit earned in the previous year are identical to criteria published on 15th January 2019 in the PFSA statement of the supervisory body regarding the criteria for the dividend policy of commercial banks, cooperative and associative banks, insurance and reinsurance companies, brokerage houses, investment fund companies and general pension societies in 2019.

Criteria for dividend payment up to 100% from the profit earned in the previous year, additionally take into account the bank's sensitivity to the unfavorable macroeconomic scenario.

The PFSA informed the Bank that as a result of stress tests conducted, the individual add-on (ST) measuring the sensitivity of the Bank to unfavorable macroeconomic scenario, after reduction by the conservation buffer at the level applied from January 2019, was set at 0.92 p.p. for Santander Bank Polska.

Bank's sensitivity to an unfavorable macroeconomic scenario is defined as the difference between total capital ratio ("TCR") in the baseline scenario and TCR in the stress scenario (at the end of forecast - 2020). The results of stress tests, including supervisory adjustments, were taken into account for determining the ST indicator. Due to the assumption regarding the stability of the balance sheet, in this year the ST indicator is additionally reduced by the conservation buffer at the level in force from January 2019, i.e. 2.5 p.p.

Legal basis:
art. 17 of (1) MAR - inside information