Current Report no. 40 (2019)

Letter 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 18 December 2019 it received a letter from the Bank Guarantee Fund with information about the joint decision of the resolution authorities, i.e. the Single Resolution Board, the Bank Guarantee Fund and the Bank of England, which had decided that the minimum requirement for own funds and eligible liabilities (MREL) for the Bank's Group would be 15.87% of the total liabilities and own funds ("TLOF"), which corresponds to 22.146% of total risk exposure (TRE). This requirement should be met by 1 January 2023.

At the same time, the Bank received mid-term MREL targets. Their values at the end of 2019, 2020 and 2021 in relation to TLOF are 10.37%, 12.202% and 14.035%, respectively, and in relation to TRE are 14.474%, 17.031% and 19.588%, respectively.

MREL was set on the basis of the data as at 31 December 2018, while the values of the required buffers are stated as at 1 January 2019. BFG also noted that in accordance with Article 3 Section III b of the joint decision, BFG may inform the Bank about changes in the methodology of calculating MREL in connection with the expected implementation of the BRRD2 and CRDV provisions, and the entry into force of CRR2 and SRMR2.

Legal basis:
Article 17(1) of the Market Abuse Regulation