Report No. 21/2019

Legal basis:

Article 17(1) of the MAR Regulation

Content of the Report:

Acting pursuant to Article 17(1), Article 17(4) and Article 7 of MAR Regulation, in connection with the cessation of premises of delay of disclosure of inside information (Bank’s Supervisory Board approval to Bank’s strategy), the Management Board of the PKO Bank Polski S.A. (“Bank”) hereby discloses the following inside information concerning the fact of approving by the Bank’s Management Board the strategy for years 2020-2022.

Content of the inside information delayed on 8 November 2019 under Article 17(4) of MAR: “The Management Board of PKO Bank Polski S.A. (“Bank”) hereby announces that on 8 November 2019 it approved the strategy for years 2020-2022 (“Strategy”) and it intends to request the Bank’s Supervisory Board approval of this motion.

The Bank’s financial targets defined for 2022 are as follows:

• net profit above PLN 5 billion in 2022;
• ROE 12 % as a target in 2022;
• C/I around 41 % in 2022;
• cost of risk in 2022 0.60 % - 0.75 %;
• capacity to pay out dividend.

Furthermore, the Bank hereby announces that these strategic objectives and targets are not a forecast or estimate of results, including financial results, and concern only the intended directions of Bank’s activities in 2020-2022.”.

In relation to approving the Strategy by the Supervisory Board, the Bank decided to publish the inside information as a result of cassation of premises to more further delaying the publication of the information.

In the opinion of the Bank’s Management Board, the delay of disclosure of the inside information of 8 November 2019 was justified because the immediate publication of such information was unjustified in view of the chance that the Bank’s Supervisory Board could not express its position on the Strategy which could mislead the public.

Furthermore, the Bank announces that the delay of disclosure of the inside information did not mislead the public and that the Bank has taken all measures necessary to ensure the confidentiality of that information.

In accordance with Article 17(4) third paragraph of MAR Regulation, the Bank will inform the Polish Financial Supervision Authority about the delay of disclosure of the inside information immediately after the publication of this report by presenting a written explanation of how the conditions set in Article 17(4)(a)-(c) of MAR Regulation were met.