mBank S.A.

Capital/Financing Update • Dec 2, 2020

Decision of Polish Financial Supervision Authority concerning therecommendation for mBank S.A. to maintain an additional capitalrequirement related to FX mortgage loan portfolio

The Management Board of mBank S.A. ("Bank") informs that the Bankreceived the decision of the Polish Financial Supervision Authority("PFSA") dated 25 November 2020 concerning the level of the additionalown funds requirement over the amount calculated in accordance with thedetailed rules defined in the Regulation of the European Parliament andof the Council (EU) No 575/2013 of 26 June 2013 on prudentialrequirements for credit institutions and investment firms and amendingRegulation (EU) No. 648/2012 ("Regulation no 575/2013).

The PFSA recommended the Bank to maintain on the individual basis ownfunds for covering the additional capital requirement related to risk offoreign currency mortgage loans for households at 3.24 p.p. over theamount of the total capital ratio (TCR) calculated in accordance witharticle 92 item 1 letter c of the Regulation no 575/2013, which shouldbe covered at least in 75% by Tier 1 capital (which corresponds to thecapital requirement of 2.43 p.p. over the Tier 1 capital ratiocalculated in accordance with Article 92 item 1 letter b of theRegulation no 575/2013) and at least in 56% by Common Equity Tier 1capital (which corresponds to a capital requirement of 1.81 p.p. overthe Common Equity Tier 1 capital ratio calculated in accordance withArticle 92 item 1 letter a of the Regulation no 575/2013).

This decision, based on the article 11.2 item 21 of the Banking Law, hasthe power of a final administrative decision and is immediately in force.

Previously the Bank on the individual basis maintained own funds forcovering the additional capital requirement related to risk of foreigncurrency mortgage loans for households at 3.62 p.p. which consisted ofat least 75% of Tier 1 capital (equivalent to 2.71 p.p.) and at least of56% of Common Equity Tier 1 capital (equivalent to 2.02 p.p.). The Bankinformed about these requirements in the report no 47/2019 dated 8November 2019.

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