Current Report no. 8 (2018)

Adoption of a resolution by the Management Board of Bank Zachodni WBK S.A. on the intent to establish a mortgage bank.

The Management Board of Bank Zachodni WBK S.A. ("Bank") informs that on 7 March 2018 it adopted a resolution on the intent to establish a mortgage bank within the Bank's Group structure, operating as BZ WBK Bank Hipoteczny S.A. with the registered office in Warsaw ("Bank Hipoteczny"). The share capital of Bank Hipoteczny will be PLN 22,000,000. The Bank will be the sole shareholder of Bank Hipoteczny.

Bank Hipoteczny will:

• specialise in handling mortgage home loans for retail customers,
• purchase receivables arising from mortgage home loans of retail customers to its own portfolio on the basis of a strategic cooperation with the Bank,
• issue mortgage covered bonds.

Thanks to the establishment of Bank Hipoteczny, the Bank will acquire a stable, long-term source of financing for the Bank's mortgage loans in the form of mortgage covered bonds. The establishment of Bank Hipoteczny will enhance stability and security of the Bank's Group, and indirectly, it may support stability and security of the entire banking sector.

The establishment of Bank Hipoteczny requires an approval of the Bank's Supervisory Board and regulatory permissions, i.e. permission of the Polish Financial Supervision Authority (KNF) to: (i) establish Bank Hipoteczny and (ii) commence Bank Hipoteczny's business operations.

The Bank will release relevant reports when the aforementioned permissions are obtained from the Polish Financial Supervision Authority (KNF).

Legal basis:
Article 17 (1) of the Regulation (EU) no. 596/2014 of the European Parliament and of the Council (MAR).