Current Report no. 28 (2024)

9 may 2024

etter from the Bank Guarantee Fund regarding the minimum requirement for own funds and eligible liabilities (MREL) for Santander Bank Polska Group.

The Management Board of Santander Bank Polska S.A. ("the Bank") hereby advises that on 9 May 2024 it received a letter from the Bank Guarantee Fund ("Fund") with information about the joint decision taken together with the resolution college of Santander Group set up by the Single Resolution Board ("SRB") on the minimum requirement for own funds and eligible liabilities ("MREL") for the Bank's Group, which is 15.38% of the total risk exposure amount ("TREA") calculated in line with Article 92(3)-(4) of Regulation (EU) 575/2013, and 5.91% of total exposure measure ("TEM") calculated in line with Article 429 and 429a of Regulation (EU) 575/2013.

The Bank is also obliged to meet the minimum MREL subordination requirement of 15.02% of TREA and 5.91% of TEM.

Pursuant to Article 98(1) of the BFG Act, the MREL requirement for the Bank was determined at the consolidated level. Bank is obliged to fulfill it immediately after receiving information about the adoption of the joint decision on MREL.

At the same time, in accordance with Article 19(2)(3), Article 21(3)(3), Article 42(3) and Article 48(3) of the Act on macro-prudential supervision, which transposes Article 128 of the CRD, CET1 instruments held by the Bank for the purpose of the combined buffer requirement are not eligible for the MREL requirement expressed as a percentage of the total risk exposure. This rule does not apply to the MREL requirement expressed as a percentage of the total exposure measure (MRELTEM).