On 1 March 2019 the Supervisory Board has approved the ING Bank Śląski S.A. Dividend Policy as recommended by the Bank Management Board.

The Dividend Policy endorses:

• a long-term stable process of dividend payout in adherence to the rules of prudent management and any and all regulatory requirements which the Bank shall comply with;
• the option to pay dividend from the capital surplus over the minimum capital adequacy ratios and over the minimum capital ratios set for the Bank by the PFSA for dividend payout purposes:
  • minimum common equity Tier 1 (CET1) at the level of 4,5% + combined buffer requirement¹ + 1,5%,
  • minimum Tier 1 (T1) at the level of 6% + combined buffer requirement¹ + 1,5%,
  • minimum total capital ratio (TCR) at the level of 8% + combined buffer requirement¹ + 1,5%.

¹ Combined buffer requirement binding in the year of dividend payout from the profit of the previous year.

When determining the recommended dividend payout amount to the General Meeting, the Bank Management Board review in particular the following terms and conditions:

• the current financial standing of the Bank and the Bank Group, including limitations in the case of sustaining financial loss or low profitability (low ROA/ROE),
• Bank's and Bank Group’s assumptions of the management strategy and risk management strategy,
• Polish Financial Supervision Authority’s stance on the banks’ dividend policy, including – within capital criteria – the sensitivity of the Bank to unfavourable macroeconomic scenario (ST parameter),
• limitations under Article 56 of the Act on macroprudential supervision over the financial system and crisis management in the financial system of 05 August 2015,
• the need to adjust profits of the present period or unapproved annual profits recognised as own funds with foreseeable dividends, according to art 26 of the Regulation EU 575/2013.