Banku Handlowego w Warszawie S.A.

Capital/Financing Update • Dec 3, 2021

Current Report No. 39/2021

Subject: Letter from theBank Guarantee Fund regarding the minimum requirement for own funds andeligible liabilities (MREL) for Capital Group of Bank Handlowy wWarszawie S.A.

Legal basis:Art. 17 of the Regulation (EU) No 596/2014 of the European Parliamentand of the Council of 16 April 2014 on market abuse (MAR).

The Management Board of Bank Handlowy w WarszawieS.A. ("the Bank"), announces that on December 3, 2021 the Bank receiveda letter from the Bank Guarantee Fund ("BFG") on the minimum requirementfor own funds and eligible liabilities ("MREL").

The MREL requirement for the total risk exposureamount TREA for the Bank, based on consolidated data, was set at 15.36%TREA, and should be met by own funds and eligible liabilities that meetthe subordination requirement by 31 December 2023. MREL requirement TEMfor the Bank, based on consolidated data, was set at 5.91% of the totalexposure measure (TEM), and should be met by own funds and eligibleliabilities that meet the subordination requirement at 5.87% TEM by 31December 2023.

The BFG defined the mid-term targets that the Bankshould meet by the end of each calendar year, in the period of reachingthe target MREL level.

These targets in relation to TREA are respectively11.68% by 31 December 2021 and 13.52% by 31 December 2022. The mid-termtargets for TEM are 3% by 31 December 2021 and 4, 46% by 31 December2022.

At the same time, pursuant to Art. 19 par. 2, par. 3,Art. 21 par. 3, par. 3, Art. 42 point 3 and Art. 48 (3) of the Act onmacroprudential supervision, instruments of Tier I capital (CET1)maintained by the Bank for the purposes of the combined bufferrequirement cannot be included in the MREL requirement expressed as apercentage of the total risk exposure amount (MREL TREA).