Abak Spolka Akcyjna

Legal Proceedings Report • Jun 23, 2023

Costs of legal risk related to foreign currency loans

The Management Board of mBank S.A. (_quot;Bank_quot;) informs that as of June 23,2023, costs of legal risk related to foreign currency loans in CHFestimated for Q2 2023, amount to PLN 1,512.9 million. As a result, thetotal value of provisions created for legal risk related to foreigncurrency mortgages as of June 23, 2023, amounts to PLN 7.52 billion.These costs result mainly from inclusion of the impact of the ruling ofthe Court of Justice of the European Union in case C-520/21 on thefuture jurisprudence of Polish courts in cases involving foreigncurrency loans in CHF and the costs of the settlement program as well asthe update of other parameters utilized in the model.

At the same time, the Bank informs that in Q2 2023 the positive resultsin the core business continued. Assuming no other negative unexpectedevents, the net result achieved by mBank Group in Q2 2023 is expected tobe close to zero and the gross result is expected to be positive. As aconsequence, the gross and net result achieved by mBank Group in H1 2023is expected to be positive.

The mBank Group Tier 1 Capital Ratio and the Total Capital Ratio for Q22023 are expected to be higher than the levels reported for Q1 2023. Thecurrent capital requirements for mBank Group are 10.0% for the Tier 1Capital Ratio and 12.3% for the Total Capital Ratio. The surpluses abovethe capital requirements for Q2 2023 are expected to be higher than inQ1 2023. The liquidity ratios significantly exceed the regulatoryrequirements.