Motions to KNF for consent for recognition of 1H 2020 net profit as a part of Common Equity Tier 1 capital
current report no. 31/2020
date: 8 September 2020
The Management Board of BNP Paribas Bank Polska S.A. ("the Bank") hereby announces that on 8 September 2020 it made a decision to apply to the Polish Financial Supervision Authority ("KNF") for consent for recognition of a stand-alone net profit for period from 1 January 2020 to 30 June 2020 in the amount of PLN 329,799,009.75 (in words: three hundred twenty nine million seven hundred ninety nine thousand nine zlotys seventy five groszy) as a part of the Bank's Common Equity Tier 1 capital as well as a motion for consent for recognition of consolidated net profit for period from 1 January 2020 to 30 June 2020 in the amount of PLN 334.127.286,63 (in words: three hundred and thirty four million one hundred and twenty seven thousand two hundred and eighty six zlotys and sixty three groszy) as a part of the Bank's Common Equity Tier 1 capital on a consolidated level.
It means that the Bank's Management Board does not intend to recommend any dividend payment from the 1H 2020 net profit.
Pursuant to Article 26, item 2 of 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 competent authority shall grant permission where the following conditions are met:
a) those profits have been verified by persons independent of the institution that are responsible for the auditing of the accounts of that institution;
b) the institution has demonstrated to the satisfaction of the competent authority that any foreseeable charge or dividend has been deducted from the amount of those profits.
Recognition of the 1H 2020 net profit as a part of the Bank's Common Equity Tier 1 capital shall improve: Common Equity Tier 1 ratio (CET 1), Tier 1 Capital Ratio and Total Capital Ratio (TCR) calculated on a stand-alone basis by 0.40 pp each, based on data as at 30 June 2020. Capital adequacy ratios calculated on the consolidated basis would improve by 0.39 pp each.
Legal basis
Article 17, item 1 of the Market Abuse Regulation (MAR)