Banku Handlowego w Warszawie S.A.

Capital/Financing Update • Feb 14, 2022

Current Report No. 2/2022

Subject:Pillar 2 (P2G) add-on imposed by the Polish Financial SupervisionAuthority

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 11February 2022 with a recommendation on mitigating the risk of the Bank'soperations by maintaining, at both non-consolidated and consolidatedlevel, own funds to cover a capital add-on in order to absorb potentiallosses that may arise from stress conditions; the add-on should bemaintained at 1.25 p.p. above the total capital ratio referred to inArticle 92 (1)(c) of Regulation (EU) No 575/2013 of the EuropeanParliament and of the Council of 26 June 2013 on prudential requirementsfor credit institutions and investment firms and amending Regulation(EU) No 648/2012, increased by the additional own funds requirementreferred to in Article 138 (2)(2) of the Banking Law Act and thecombined buffer requirement referred to in Article 55 (4) of theMacroprudential Supervision Act. The add-on should consist in full ofCommon Equity Tier 1 capital.

The Bank's total capital add-onrecommended to absorb potential losses arising from stress conditions iscomprised of: (i) the basic add-on of 0.77 p.p. recommended under Pillar2 and (ii) a supplementary add-on of 0.48 p.p. recommended under Pillar2.