Banku Handlowego w Warszawie S.A.

Capital/Financing Update • Dec 27, 2022

Current report No. 36/2022

Subject:Imposition by the Polish Financial Supervision Authority of a capitaladd-on recommended under Pillar 2 (P2G)

Legal basis:Article17 (1) of Regulation (EU) No 596/2014 of the European Parliament and ofthe Council of 16 April 2014 on market abuse (MAR).

The Management Board of BankHandlowy w Warszawie S.A. (_quot;Bank_quot;) hereby informs that it received aletter from the Polish Financial Supervision Authority (_quot;PFSA_quot;) dated 23December 2022 regarding the imposition of a capital add-on recommendedunder Pillar 2 (P2G). As a result of the Bank's supervisory assessmentprocess, its sensitivity to possible materialization of stress scenariosaffecting the level of own funds and risk exposure was assessed as low.

At the same time, PFSA recommendsmitigating the risk of the Bank's operations by maintaining atboth stand alone and consolidated level, own funds to cover a capitaladd-on in order to absorb potential losses that may arise from stressconditions; the add-on should be maintained at 0.11 p.p. above the totalcapital ratio referred to in Article 92 (1)(c) of Regulation (EU) No575/2013 of the European Parliament and of the Council of 26 June 2013on prudential requirements for credit institutions and investment firmsand amending Regulation (EU) No 648/2012, increased by the additionalown funds requirement referred to in Article 138 (2)(2) of the BankingLaw Act and the combined buffer requirement referred to in Article 55(4) of the Macroprudential Supervision Act. The additional add-on shouldbe made up of the core capital Tier 1 only.