mBank S.A.

Capital/Financing Update • Nov 30, 2018

The letter from the Polish Financial Supervision Authority concerningthe recommendation for mBank S.A. to maintain an additional capitalrequirement related to FX mortgage loan portfolio at the Group level

With reference to the Current Report No. 52/2018 of 17 October 2018, theManagement Board of mBank S.A. ("Bank") informs that the Bank received aletter from the Polish Financial Supervision Authority ("PFSA") dated 29November 2018, concerning the level of additional own funds requirementover the amount calculated in accordance with detailed rules defined inthe Regulation (EU) No 575/2013 ("Regulation") for the Group level.

In the above letter the PFSA recommended mBank to maintain own funds forcovering the additional capital requirement related to the risk of theforeign currency mortgage loans for households at the Group level of3.64 p.p. over the amount of the total capital ratio (TCR) calculated inaccordance with art. 92 item 1 letter c of the Regulation, which shouldbe covered at least in 75% by Tier 1 capital, which corresponds to thecapital requirement of 2.73 p.p. over the Tier 1 capital ratiocalculated in accordance with Article 92 item 1 letter b of theRegulation and at least in 56% by Common Equity Tier 1 capital, whichcorresponds to a capital requirement of 2.04 p.p. over the Common EquityTier 1 capital ratio calculated in accordance with Article 92 item 1letter a of the Regulation.

Previously, the additional capital requirement for mBank S.A. on theconsolidated level amounted to 3.53 p.p. for total capital ratio, 2.65p.p. for Tier 1 capital ratio and 1.98 p.p. for Common Equity Tier 1capital ratio.

At the date of this current report, mBank fulfils the PFSA requirementrelated to the minimum capital adequacy ratios on both the individualand consolidated levels.