Proposed distribution of the net profit for 2018

UNOFFICIAL TRANSLATION

25.02.2019 - Report 4/2019: Information on the proposed distribution of the net profit for the financial year 2018 and the proposed method of covering the undistributed loss from previous years

Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby informs that on 25 February 2019 the Bank's Management Board adopted the motion regarding distribution of net profit for the financial year 2018, assuming the allocation of:

a) the amount of PLN 1 732 302 224.40 for dividend payment, which translates into a dividend payout ratio of 75% of the unconsolidated net profit for the financial year 2018, and

b) the amount of PLN 578 297 347.77 for the Bank's reserve capital.

The proposed dividend per share amounts to PLN 6.60.

The proposed dividend payout ratio of 75% of the unconsolidated net profit for the financial year 2018 is lower than the ratio presented in the guidelines regarding distribution of the Bank's net profit for 2018-2020 published in the Current Report No. 29/2018 dated 19 November 2018. The lower payout results from the inclusion by the Bank's Management Board of recommendations of the Polish Financial Supervision Authority ("PFSA") regarding the criteria of the Bank's dividend policy, which the Bank published in Current Report No. 2/2019 dated 21 January 2019, as well as from the inclusion of the PFSA's individual recommendation regarding divided for 2018, which the Bank published in Current Report No. 3/2019 dated 25 February 2019.

The dividend day proposed by the Bank's Management Board is 10 July 2019, and the dividend payment date is 30 July 2019.

Simultaneously, the Bank's Management Board adopted a motion regarding the covering, in the full amount from the Bank's reserve capital, undistributed losses from previous years in the amount of PLN 936 747 994.04, resulting from changes in accounting principles in connection with the application for the first time of International Financial Reporting Standard No. 9 ("Financial Instruments").

On 25 February 2019, the Bank's Management Board motions regarding the proposed distribution of net profit for the financial year 2018 and the proposed method of covering the undivided loss from previous years were positively assessed by the Supervisory Board of the Bank. These motions will be submitted to the Ordinary General Meeting of the Bank.

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