mBank S.A.

Capital/Financing Update • Oct 17, 2018

Decision of Polish Financial Supervision Authority concerning theamount of an additional capital requirement for mBank S.A. related to FXmortgage loan portfolioThe Management Board of mBank S.A.("Bank") informs that it received the decision of the Polish FinancialSupervision Authority ("PFSA") on 17 October 2018 related to fulfillingthe amount of an additional capital requirement by the Bank over theamount calculated in accordance with detailed rules defined inRegulation of the European Parliament and of the Council (EU) No575/2013 of 26 June 2013 on prudential requirements for creditinstitutions and investment firms, amending Regulation (EU) No. 648/2012(OJ L 176 of 27 June 2013, p. 1 with additional amendments, "RegulationNo. 575/2013").

The PFSA recommended to the Bank to fulfil on the individual basis, theadditional capital requirement for covering the risk related to theforeign currency mortgage loans for households at 4.18 p.p. over theamount calculated in accordance with article 92 item 1 letter c of theRegulation No. 575/2013, which should be covered at least in 75% by Tier1 capital (equivalent to own funds requirement of 3.14 p.p. over theamount calculated in accordance with article 92 item 1 letter b of theRegulation No. 575/2013) and at least in 56% by Common Equity Tier 1capital (equivalent to own funds requirement of 2.34 p.p. over theamount calculated in accordance with article 92 item 1 letter a of theRegulation No. 575/2013). This decision, based on the article 11.2 item21 of the Banking Law, is immediately in force.

Previously, as the Bank informed in the report no 67/2017 published on22 November 2017, mBank S.A. was obliged to maintain own funds for thecoverage of additional capital requirement at the level of 4.10 p.p. onthe individual basis, which consisted of at least 75% of Tier 1 capital(equivalent to 3.07 p.p.) and at least of 56% of Common Equity Tier 1capital (equivalent to 2.29 p.p.).

At the date of this current report, the Bank fulfils the PFSArequirements related to the minimum capital ratios on both theindividual and consolidated levels.