Bank BGZ BNP Paribas : Capital adequacy ratios of Bank BGŻ BNP Paribas S.A. and the Bank BGŻ BNP Paribas S.A. Group

Capital adequacy ratios of Bank BGŻ BNP Paribas S.A. and the Bank BGŻ BNP Paribas S.A. Group

current report no. 11/2017

date: 29 May 2017

The Management Board of Bank BGŻ BNP Paribas S.A. ("the Bank") hereby informs you that on 29 May 2017 it became aware that as at the end of April 2017, the consolidated Tier I Capital Ratio of Bank BGŻ BNP Paribas S.A. Group calculated on 29 May 2017 based on available real underlying data received from the Group entities and verified in the formal internal reporting was equal to 10.90%, i.e. 0.11 p.p. below the level resulting from the Polish Financial Supervision Authority's ("KNF") letter dated 23 October 2015, as well as administrative decisions issued by the KNF in 2016, which is currently equal to 11.01%. The consolidated TCR calculated according to the abovementioned rules was equal to 14.02%, i.e. 0.16 p.p. below the indicated level which is currently equal to 14.18%. The estimated amount of own funds needed to reach the recommended level of the consolidated Tier I Capital Ratio is equal to around PLN 61.1 million (EUR 14.6 million) and for the consolidated TCR around PLN 85.5 million (EUR 20.4 million).

As at the end of April 2017, the standalone Tier I Capital Ratio and the standalone TCR were above the levels resulting from the Polish Financial Supervision Authority's ("KNF") letter dated 23 October 2015 as well as administrative decisions issued by the KNF in 2016 and were equal to 11.26%, i.e. 0.23 p.p. above the indicated level which is currently equal to 11.03%, and 14.49%, i.e. 0.28 p.p. above the indicated level which is currently equal to 14.21%, respectively.

At the same time, the standalone as well as consolidated Tier I Capital Ratio and TCR were above the levels resulting from the Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.

The required consolidated Tier I Capital Ratio and TCR levels resulting from the abovementioned regulation are currently equal to 8.01% and 10.18%, respectively. The required standalone Tier I Capital Ratio and TCR levels resulting from the abovementioned regulation are currently equal to 8.03% and 10.21%, respectively.

The Bank meets the combined buffer requirement as set forth in Article 60 of the Act on Macroprudential Supervision over the Financial System and Crisis Management in the Financial System of 5 August 2015 as well, both at the consolidated and the standalone level.

Considering the abovementioned data and business assumptions of the Bank development, as well as the process of the conservation buffer increase and systemic risk buffer implementation, the Bank will perform actions aimed at capital ratios improvement.

Legal basis

Article 17, item 1 of the MAR Regulation