Report Content Currentreport 40/2025
Subject:Revaluation of deferred tax asset value due to changes in corporateincome tax rates
Legalbasis:Article 17 Section 1 of Regulation (EU) No. 596/2014 of the EuropeanParliament and of the Council of 16 April 2014 (MAR Regulation).
The BankHandlowy w Warszawie S.A. ("Bank") hereby informs that following thesigning the Act of 17 October 2025 amending the Corporate Income Tax Actand the Act on Tax on Certain Financial Institutions by the President ofthe Republic of Poland, which includes an increase in income tax ratesfor banks, the Bank has verified the impact of this change on the valueof the net deferred income tax asset ("net asset") determined inaccordance with IAS 12.
Inaccordance with paragraph 47 of IAS 12, deferred tax assets and deferredtax liabilities are measured using the tax rates that are expected to beapplied to the period when the asset is realized or the liability issettled, based on the tax rates (and tax laws) that have been enacted orsubstantively enacted by the end of the reporting period.
As aconsequence of the revaluation of the net asset which results from anincrease in the tax rate from 19% to the rate applicable at the expectedtime of realization of temporary differences (respectively: 30% in 2026,26% in 2027 and 23% in subsequent years), the Bank estimates that thepositive impact on Bank's net income for 2025 will amount toapproximately PLN 120 million (of which PLN 52 million relates to thereduction of the net loss associated with the exit from the ConsumerBusiness ).
The abovevalue is an estimate of the impact based on the data and components ofthe net deferred tax asset for the first three quarters of 2025.
Further tothe current report as of May 27, 2025, the Bank informs that the impactof the tax rate change in 2026 will reduce the net loss from thetransaction of Consumer Business exit to approximately PLN 329 million.
Thepositive impact resulting from the revaluation of the net deferred taxasset will affect the Bank's financial results in Q4 2025 and is of anone-off nature.