Bank Polska Kasa Opieki S.A. (the “Bank”) hereby informs that on 21 February 2024, it received an individual recommendation of the Polish Financial Supervision Authority (the “PFSA”) regarding the Bank's dividend policy.

As at 31 December 2023, in terms of the basic criteria set out in the PFSA's position of 14 December 2023 on the dividend policy for 2024, and taking into account the quality of the Bank's loan portfolio, measured by the share of non-performing receivables in the total portfolio of receivables from the non-financial sector, including debt instruments, Bank met the requirements qualifying for the payment of dividend up to 50% from the Bank's profit generated in the period from 1 January 2023 to 31 December 2023.

The PFSA recommended the Bank not pay a dividend from profit earned in the period from 1 January to 31 December 2023 in the amount higher than 50%, with the maximum payout amount not exceeding the amount of annual profit diminished by profit earned in 2023 already included in  own funds.

In accordance with the PFSA’s decision of 23 August 2023, the Bank included in its own funds a part of the Bank's net profit for the first half of 2023 in the amount of PLN 808,755,262.19.

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 and share buybacks, without prior consultation with the supervisory authority.

On 7 February 2024 Bank received a letter from the PFSA in which PFSA indicated that it does not raise any objections to the possibility of paying, in 2024, the undistributed profit for 2019 in the amount of PLN 1,685,057,618.28 in the form of a dividend, as Bank informed in current report no. 1/2024 of 7 February 2024.

Legal basis: Art. 17 of (1) MAR – inside information