Norm for the Distribution of Profits of Financial Institutions

Page 1 of 3 RESOLUTION CDMF-XXV-2-25 Dated July 16, 2025

NORM FOR THE DISTRIBUTION OF PROFITS OF FINANCIAL INSTITUTIONS

The Monetary and Financial Board,

CONSIDERING

I

That Article 25 of Law No. 561, "General Law of Banks, Non-Bank Financial Institutions and Financial Groups," reformed by Law No. 1237, "Law of Reforms and Additions to Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups," published in La Gaceta, Official Gazette No. 37, of February 25, 2025, establishes that profit distribution may only occur with prior authorization from the Superintendence, provided that the requirements established in Chapter II "Capital, Reserves and Profits" of Title II and other conditions that the Superintendence may establish have been met.

II

That in accordance with the consideration stated above and based on the authority granted by Article 17, letter A, numbers 1) and 3) and letter C, numbers 1) and 7), of Law No. 1232, "Law of the Administration of the Monetary and Financial System," published in La Gaceta, Official Gazette No. 241, of December 30, 2024.

In exercise of its powers,

HAS ISSUED

The following:

NORM FOR THE DISTRIBUTION OF PROFITS OF FINANCIAL INSTITUTIONS

CHAPTER I GENERAL PROVISIONS

Article 1. Concepts.- For the purposes of this norm, the terms indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:

a) Financial institution: Refers to banks, financial societies established in Article 134 bis of the General Law of Banks, and branches of foreign banks established in the country, which, in accordance with the aforementioned law, may capture resources from the public.

b) General Law of Banks: Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, reformed by Law No. 1237, "Law of Reforms and Additions to Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups," published in La Gaceta, Official Gazette No. 37, of February 25, 2025.

Page 2 of 3 c) Superintendence: Superintendence of Banks and Other Financial Institutions. d) Superintendent: Superintendent of Banks and Other Financial Institutions.

Article 2. Object and Scope.- The purpose of this norm is to establish the conditions that financial institutions must meet to obtain the non-objection of the Superintendent regarding the distribution of profits.

CHAPTER II AUTHORIZATION FOR THE DISTRIBUTION OF PROFITS

Article 3. Non-objection.- Financial institutions that decree the distribution of profits may not make such distribution effective under any modality until they have obtained the express written non-objection of the Superintendent.

Article 4. Conditions.- Financial institutions may not distribute profits if they:

a) Do not meet the required minimum capital coefficient. b) Do not meet the minimum share capital. c) Do not meet the capital conservation reserve, the countercyclical capital buffer reserve, and the systemic risk reserve, as applicable, required by the General Law of Banks. d) Are in a transitional regime regarding the constitution of provisions for any asset, that is, those to which the Superintendent has approved gradualness or deferral to create their provisions, whether resulting from their own calculations or from Superintendence inspections. e) Have pending registration of adjustments ordered by the Superintendence, or determined by themselves, whether these are interests to be cleaned up or various accounts from the balance sheet. f) The opinion of external auditors regarding the audit performed at the end of the period includes qualifications that could affect the financial situation of the institution. g) Instability in the financial system is present, or economic and financial conditions are tight. h) The Superintendence identifies risks that have not been mitigated. i) Other situations that, in the judgment of the Superintendent, warrant restricting the distribution of profits.

Financial institutions that are not subject to any of the above conditions may distribute a maximum of 20% of their retained earnings. Without prejudice to the foregoing, financial institutions may only distribute the percentage or amount of cash profits that the Superintendent authorizes in accordance with the authority established in Article 25 of the General Law of Banks.

Page 3 of 3 CHAPTER III FINAL PROVISIONS

Article 5. Repeals.- The following norms are repealed:

a) Norm for the Distribution of Profits of Financial Institutions, contained in Resolution No. CD-SIBOIF-1016-2-SEP19-2017, dated September 19, 2017, published in La Gaceta, Official Gazette No. 187, of October 3, 2017. b) Temporary Norm for the Constitution of Extraordinary Capital Reserve, contained in Resolution No. CD-SIBOIF-1084-1-NOV22-2018, dated November 22, 2018, published in La Gaceta, Official Gazette No. 238, of December 7, 2018.

Article 6. Validity.- This norm shall enter into force upon notification by the Superintendence of Banks and Other Financial Institutions. It shall be published on the website of the Superintendence.

(f) Legible, Ovidio Reyes R., President of the Board; (f) Illegible, Luis Ángel Montenegro Espinoza, Vice President of the Board; (f) Illegible, Bruno Gallardo, Minister of Finance, Proprietary Member; (f) Illegible, Roberto Rivas, Non-executive Proprietary Member; (f) Illegible, Hugo Ortega, Non-executive Proprietary Member. (End of Resolution text). (f) Illegible, Ruth Elizabeth Rojas Mercado, Secretary of the Board.