Abak Spolka Akcyjna

Capital/Financing Update • Jun 14, 2023

Decision of Polish Financial Supervision Authority on the decrease ofthe additional capital requirement related to risk of foreign currencymortgage loans for households on the consolidated basis

The Management Board of mBank S.A. ("Bank_quot;) informs that on 14 June2023, the Bank received the decision of the Polish Financial SupervisionAuthority ("PFSA_quot;) dated 14 June 2023 concerning the change of thedecision of PFSA regarding the level of the additional own fundsrequirement at the consolidated level above the amount calculated inaccordance with the detailed rules defined in the Regulation of theEuropean Parliament and of the Council (EU) No 575/2013 of 26 June 2013on prudential requirements for credit institutions and investment firmsand amending Regulation (EU) No. 648/2012 ("Regulation no 575/2013).

The PFSA requires the Bank to maintain on the consolidated basis ownfunds for covering the additional capital requirement related to risk offoreign currency mortgage loans for households at 1.18 p.p. above theamount of the total capital ratio (TCR) calculated in accordance witharticle 92 item 1 letter c of the Regulation no 575/2013, which shouldbe covered at least in 75% by Tier 1 capital (which corresponds to thecapital requirement of 0.89 p.p. above the Tier 1 capital ratiocalculated in accordance with Article 92 item 1 letter b of theRegulation no 575/2013) and at least in 56.25% by Common Equity Tier 1capital (which corresponds to a capital requirement of 0.66 p.p. abovethe Common Equity Tier 1 capital ratio calculated in accordance withArticle 92 item 1 letter a of the Regulation no 575/2013).

Previously, in accordance with the PFSA's decision of 30 December 2022,the Bank on the consolidated basis maintained own funds for covering theadditional capital requirement related to risk of foreign currencymortgage loans for households at 1.76 p.p. which consisted of at least75% of Tier 1 capital (equivalent to 1.32 p.p.) and at least of 56.25%of Common Equity Tier 1 capital (equivalent to 0.99 p.p.). The Bankinformed about these requirements in the current report no 68/2022 dated30 December 2022.

The decision of the PFSA translates into the decrease of the additionalcapital requirement related to risk of foreign currency mortgage loansfor households on the consolidated basis by 0.58 p.p. for TCR and by0.43 p.p. for the Tier 1 capital ratio.

At the date of this current report, the Bank fulfils the PFSArequirements related to the minimum capital adequacy ratios on both theindividual and consolidated levels.