Current Report no. 25 (2015)
Recommendations of the Financial Supervision Commission about the risks of the portfolio of foreign currency mortgage loans to households – inside information
Management Board of Bank Zachodni WBK S.A. („the Bank”) informs that on 23rd October 2015 it received the following recommendations from the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego):
- Bank Zachodni WBK SA to maintain own funds to cover the additional capital requirement at 0.72pp to secure the risk arising from FX mortgage loans for households that should be composed at least in 75% from Tier 1 capital (equivalent of 0.54pp), and
- Bank Zachodni WBK SA to retain at least 50% of the profit made between 1st January 2014 to 31st December 2014, in relations to the risk of the portfolio of foreign currency mortgage loans to households.
Management Board of the Bank informs that Annual General Meeting of the Bank on 23rd April 2015 decided on allocation over 50% of Bank’s profit made between 1st January 2014 to 31st December 2014 to the reserve capital (ref. current report no. 11/2015 dated 23rd April 2015, Resolution no. 5).
In Bank’s opinion after taking into account additional capital requirement indicated in item 1 above, Bank’s capital position remains strong and meets legal criteria and recommendations of Polish Financial Supervision Authority.
Legal basis:
Article 56 sec. 1 item 1 of the Act dated 29 July 2005 on Public Offering, the Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies (amended and restated: Journal of Laws of 2009, No. 185, item 1439, as amended).