Current Report no. 5 (2022)

Individual recommendation of the Polish Financial Supervision Authority regarding the fulfilment of the criteria for the payment of dividends from the net profit generated in 2021.

The Management Board of Santander Bank Polska S.A. (the "Bank"), hereby announces that on February 23rd, 2022, it received an individual recommendation of the Polish Financial Supervision Authority (the "PFSA") regarding the Bank's dividend policy.

As at 31 December 2021 (Bank's quarterly data on own funds and Bank's monthly data on the receivables portfolio), in terms of the basic criteria set out in the PFSA's position of 9 December 2021 on the dividend policy of commercial banks for 2022 (the "Dividend policy"), met the requirements qualifying for the payment of up to 100% of the dividend from the Bank's profit generated in the period from 1 January 2021 to 31 December 2021.

After applying additional criteria specified by the PFSA in the Dividend policy for the portfolio of foreign currency housing loans for households held by the Bank, the dividend rate at the individual and consolidated level was adjusted by a total of 70 p.p.

Consequently, the maximum dividend yield after applying additional criteria may amount up to 30% of the nett profit generated in 2021.

The PFSA recommended the Bank not to pay a dividend of more than 30% from the profit generated in the period from 1 January to 31 December 2021.

In addition, the PFSA recommended the Bank not to take other actions, in particular those outside the scope of current business and operating activities, which could result in a reduction of the own funds, including possible dividend payments from undistributed profit from previous years (i.e. from 2020 and previous years) and share buybacks.

Legal basis:
Art. 17 ust. 1 of MAR.