Current Report no. 42 (2019)

The Polish Financial Supervision Authority letter regarding individual criteria for the dividend policy 2020 for Santander Bank Polska S.A.

The Management Board of Santander Bank Polska S.A. ("Bank") hereby reports that on 24th December 2019 received the letter from the Polish Financial Supervision Authority ("PFSA") referring to the criteria for the dividend policy for 2020.

Criteria for dividend payment up to 50% and 75% from the profit earned in the previous year are identical to criteria published on 3 December 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 in 2020.

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 was set at 1.24 p.p. for Santander Bank Polska S.A.

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 - 2021). The results of stress tests, including the supervisory adjustments and full implementation of IFRS 9, were taken into account for determining the ST indicator.

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