Abak Spolka Akcyjna

Capital/Financing Update • Dec 30, 2022

Decision of Polish Financial Supervision Authority concerning therecommendation for mBank S.A. on the consolidated level to maintain anadditional capital requirement related to FX mortgage loan portfolio

The Management Board of mBank S.A. ("Bank_quot;) informs that on 30 December2022, the Bank received the decision of the Polish Financial SupervisionAuthority ("PFSA_quot;) dated 30 December 2022 concerning the level of theadditional own funds requirement at the consolidated level over theamount calculated in accordance with the detailed rules defined in theRegulation of the European Parliament and of the Council (EU) No575/2013 of 26 June 2013 on prudential requirements for creditinstitutions and investment firms and amending Regulation (EU) No.648/2012 ("Regulation no 575/2013).

The PFSA recommended 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 1.76 p.p. over 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 1.32 p.p. over the Tier 1 capital ratiocalculated in accordance with Article 92 item 1 letter b of theRegulation no 575/2013) and at least in 56% by Common Equity Tier 1capital (which corresponds to a capital requirement of 0.99 p.p. overthe Common Equity Tier 1 capital ratio calculated in accordance withArticle 92 item 1 letter a of the Regulation no 575/2013).

This decision, based on the article 11.2 item 21 of the Banking Law, hasthe power of a final administrative decision and is immediately in force.

Previously the Bank on the consolidated basis maintained own funds forcovering the additional capital requirement related to risk of foreigncurrency mortgage loans for households at 2.12 p.p. which consisted ofat least 75% of Tier 1 capital (equivalent to 1.59 p.p.) and at least of56% of Common Equity Tier 1 capital (equivalent to 1.19 p.p.). The Bankinformed about these requirements in the current report no 60/2021 dated25 November 2021.

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.