Information on important events which impacted Group’s activity
- As previously reported, as member of Visa Europe Ltd the Bank is among the beneficiaries of the transaction concluded on 2 November 2015 between Visa Inc. and Visa Europe Ltd. In result of the conversion the Bank received EUR 59.2 million in cash, 21 493 preference shares and is entitled to a deferred payment of approx. EUR 5 million minus adjustments. The closing of the Visa transaction took place on 21st June 2016, and had a significant positive influence on the results of the Bank in the 1st half 2016: the gross impact on revenues totalled PLN 283 million. In order to determine the fair value of deferred payments and preferred shares, the time value of money, the time line for conversion of preferred stock in common stock of VISA and adjustments resulting from litigations (on-going or potential) against VISA and the Bank were considered. In the fourth quarter of 2016, taking into account the practice adopted by the banking sector, as well as probability of potential litigations, the Bank reassessed the fair value of VISA transaction settlement. As a result deferred payment component was adjusted by PLN 22.6 million. Following the above, the Bank recognized income from the change in fair value of a deferred payment component which increased gross revenue on VISA settlement recognized in the first half of the year by additional amount of PLN 22.6 million.
- On October 28th 2016, the Bank received from the Bank Guarantee Fund resolution concerning contribution of PLN 7.1 million to BGF to pay guaranteed funds to depositors of Bank Spółdzielczy in Nadarzyn.
- On October 10th 2016 Bank received the decision of Polish Financial Supervision Authority (KNF), regarding identification of the Bank as other systematically important institution and imposing on the Bank and on the Group the other systematically important institution buffer in the equivalent of 0.25% of total amount of the risk exposure (only on common equity Tier 1 capital). This decision was issued on the basis of article 39 section 1 and 3 in connection with art. 5 of the Act of 5.08.2015 on macro-prudential supervision of the financial system and on crisis management in the financial system.
- In October and December 2016, Bank and Group received from KNF a recommendation to maintain own funds for the coverage of additional capital requirements at the level of 3.09 p.p. (Bank) and 3.05 p.p. (Group) in order to secure the risk resulting from FX mortgage loans granted to households, which should consist of at least 75% of Tier 1 capital (which corresponds to 2.32 p.p. in Bank and 2.29 p.p. in Group), and should consist of at least 56% of common equity Tier 1 capital (which corresponds to 1.73 p.p. in Bank and 1.71 p.p. in Group). That recommendation replaces the previous one, to maintain the Banks’s own funds for the coverage of additional capital requirements at the level of 3.83 p.p., which should have consisted of at least 75% of Tier 1 capital (which corresponded to 2.87 p.p.).
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