Guidelines regarding distribution of net profit

UNOFFICIAL TRANSLATION

19.11.2018 - Report 29/2018: Defining of guidelines regarding distribution of the net profit of Bank Polska Kasa Opieki S.A. for the years 2018-2020

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby informs that on 19 November 2018, the Bank's Management Board adopted a resolution specifying the following guidelines regarding distribution of the Bank's net profit for the years 2018-2020:

(i) allocation of at least 90% of the Bank's net profit for 2018 for the dividend for 2018; additionally if Bank's net profit for 2018 will be at least the same as the Bank's net profit for 2017, amount of dividend for 2018 will not be lower than amount of dividend paid for 2017,

(ii) allocation of 60% -80% of the Bank's net profit for 2019 for the dividend for 2019,

(iii) allocation of 50% -75% of the Bank's net profit for 2020 for the dividend for 2020.

Guidelines regarding the distribution of the Bank's net profit for the years 2018-2020 may change, and the Bank's Management Board may recommend the distribution of net profit for a given year during this period that is different than the payout indicated above, in particular depending on:

(i) recommendations of the Polish Financial Supervision Authority ("PFSA") regarding the distribution of net profit or stance of the PFSA regarding the distribution of net profit,

(ii) significant change in the growth rate of risk-weighted assets,

(iii) significant deterioration of the macroeconomic and financial markets conditions in Poland or globally,

(iv) introduction of regulations that have or could have a significant impact on the capital adequacy of the Bank or the capital group of the Bank,

(v) imposition additional capital buffers on the Bank.

Guidelines for distribution of the Bank's net profit for the years 2018-2020 received a positive assessment of the Bank's Supervisory Board on 19 November 2018.

Legal basis: Art. 17 (1) MAR - confidential information