Banku Handlowego w Warszawie S.A.

Regulatory Filings • May 26, 2023

Current Report No. 14/2023

Re:Letterfrom the Bank Guarantee Fund on setting the TLAC requirement for BankHandlowy w Warszawie S.A.

Legal basis:Article17(1) of Regulation (EU) No 596/2014 of the European Parliament and ofthe Council of 16 April 2014 on market abuse (MAR)

The Management Board of BankHandlowy w Warszawie S.A. (hereinafter the "Bank")announces that on May 26, 2023 the Bank received a letter from the BankGuarantee Fund (hereinafter "BFG") indicating that, in theopinion of the BFG, the Bank is a resolution entity that is part of aglobal systemically important institution (G-SII)_#160;in accordance with the definition contained inArt. 4 (136) of the Regulation (EU) No 575/2013 of the EuropeanParliament and of the Council of 26 June 2013 on prudential requirementsfor credit institutions and investment firms (hereinafter "CRR").

According to Art. 92a CRR,institutions identified as resolution entities and that are part of aG-SII shall at all times satisfy the following requirements for ownfunds and eligible liabilities:

a)_#160;_#160;_#160;a risk-based ratio of 18 %, representing theown funds and eligible liabilities of the institution expressed as apercentage of the total risk exposure amount (TREA);

b)_#160;_#160;_#160;a non-risk-based ratio of 6,75 %, representingthe own funds and eligible liabilities of the institution expressed as apercentage of the total exposure measure (TEM).

In accordance with the provisions of the CRR, theamount of the Total Loss-Absorbing Capacity (TLAC) requirement for theBank is 20.79%, while the Bank's Total Capital Ratio (TCR) as of the endof March 2023 was 17.9%.

The above means the need to supplement the TLAC tothe level required by the CRR provisions.

In the opinion of the Bank, in accordance withapplicable regulations, the Bank can meet the TLAC requirement byissuing financial instruments or retaining interim profits.

In accordance with Art. 26 (2) CRR institutions mayinclude interim or annual profits in Common Equity Tier 1 capital. Theinclusion of profit, before the institution takes a formal decisionconfirming the final financial result of the institution in a givenyear, can only take place after obtaining prior permission of thecompetent authority, provided that the following conditions are met:

a)_#160;those profitshave been verified by persons independent of the institution that areresponsible for the auditing of the accounts of that institution;

b)_#160;the institutionhas demonstrated to the satisfaction of the competent authority that anyforeseeable charg_#233; or dividend has been deducted from the amount ofthose profits.

Bearing in mind the necessity to immediately meet theTLAC requirement indicated by BFG, the Management Board of the Bank willcontact the Polish Financial Supervision Authority to obtain permissionfor inclusion of appropriate portion of the interim profits to CommonEquity Tier 1 capital on the basis of the audited results of the Bankfor the first half of 2023.