2021 EU-Wide Stress Test Results for Bank Pekao

UNOFFICIAL TRANSLATION

30.07.2021 - Report 29/2021: 2021 EU-Wide Stress Test Results for Bank Polska Kasa Opieki S.A.

Bank Polska Kasa Opieki Spółka Akcyjna ("Bank") was subject to the 2021 EU-wide stress test conducted by the European Banking Authority ("EBA"), in cooperation with the Polish Financial Supervision Authority, the European Central Bank ("ECB"), and the European Systemic Risk Board ("ESRB").

The Bank notes the announcements made on 30 July 2021 by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise.

The 2021 EU-wide stress test does not contain a pass fail threshold and instead is designed to be used as an important source of information for the purposes of the supervisory review and evaluation process (SREP). The results will assist competent authorities in assessing Bank's ability to meet applicable prudential requirements under stressed scenarios.

The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2021-2023). The stress test has been carried out applying a static balance sheet assumption as of December 2020, and therefore does not take into account future business strategies and management actions. It is not a forecast of Bank profits.

Based on the results of the exercise and under the supervisor's control, the Bank will take possible management actions for mitigating the impact under the adverse scenario; assess the impact of the results on Bank's forward looking capital plans and its capacity to meet applicable prudential requirements; and determine whether any additional measures or changes to the Bank's capital plan are needed.

According to the EU-wide stress test results, the Common Equity Tier 1 (CET1) ratio of Bank' Group would be in 2023 at the level of 17.74% under the baseline scenario and at 15.49% under the adverse scenario. CET1 ratio of Bank's Group reflecting the full IFRS9 effect would be at the level of 17.74% and 15.41% respectively.

Bank's EU-wide stress test results attached.

http://www.rns-pdf.londonstockexchange.com/rns/1519H_1-2021-7-30.pdf

Legal basis: Article 17 (1) MAR - inside information