Subsequent events

On 26 January 2017, the Supervisory Board of PKO Bank Polski SA selected KPMG Audyt Spółka z ograniczoną odpowiedzialnością spółka komandytowa as the entity authorized to audit and review the financial statements of the Bank and consolidated financial statements of the PKO Bank Polski SA Group for 2017 - 2019.

On 2 January 2017, Raiffeisen-Leasing Polska SA received a call from Raiffeisen Bank Polska SA for the early redemption of the bonds issued by the Company and held in the portfolio of said bank. On 31 January 2017, the Company conducted an early redemption of bonds with a nominal value of PLN 227 million. The redemption was financed from funds received from PKO Bank Polski SA in the form of a loan, based on an agreement signed in December 2016.

In January 2017, PKO Bank Polski SA acquired 100% of shares in ZenCard Sp. z o.o. and took up shares in the increased capital of the Company. ZenCard Sp. z o.o. is a technology company which has built a platform for retailers enabling them to create discount and loyalty programs which also allows the virtualization of loyalty cards. The platform is integrated with a POS terminal and makes it possible to resign from many separate loyalty cards or separate applications installed on a phone and replace them with a single card which is also a payment card. CEUP eService Sp. z o.o., one of the largest clearing agents in Poland, is the Company’s strategic partner. The Bank is interested in using the Company’s know-how in the area of developing the solutions produced and using the Company’s products in the Bank’s Group.

On 2 February 2017, PKO Bank Hipoteczny SA issued mortgage bonds denominated in EUR with a value of EUR 25 million and a redemption period of 7 years from the date of issue. Mortgage bonds were taken up under a non-public issue. The mortgage bonds issued will be listed on the Luxembourg Stock Exchange.

On 2 February 2017, PKO Bank Hipoteczny SA concluded with PKO Bank Polski SA the Agreement for a revolving working capital loan in the current account up to the limit of PLN 1500 million, to be made available in instalments. The loan was granted for the period to 2 February 2020. On 2 February 2017, PLN 600 million was made available as part of the loan.

On 6 February 2017, PKO Bank Hipoteczny SA acquired another portfolio of receivables of mortgage-secured housing loans in the amount of PLN 337.6 million under the Framework Receivables Sale Agreement concluded on 17 November 2015 with PKO Bank Polski SA.

An Extraordinary Shareholders Meeting was convened for 13 March 2017 to consider, among other things, draft resolutions submitted by the State Treasury represented by the Minister of Development and Finance executing the rights from shares in PKO Bank Polski SA held by the State Treasury, on the rules for determining the remuneration of the Management and Supervisory Boards. These resolutions are intended to adapt the existing rules for remunerating members of the Bank’s Management and Supervisory Boards to the provisions of the Act on determining the remuneration of persons managing certain companies.

The proposed remuneration of the Members of the Bank’s Management Board and Supervisory Board was determined in accordance with the provisions of the Act on the principles for determining the salaries of persons managing certain companies. The designed remuneration principles are to replace the principles of remunerating Members of the Bank’s Management and Supervisory Board Members currently in force which had been determined by the Bank’s Supervisory Board and the Ordinary General Shareholders’ Meeting respectively.