mBank S.A.

Regulatory Filings • Jan 18, 2019

Letter from the Polish Financial Supervision Authority regardingindividual assumptions of the 2019 dividend policy for mBank S.A.

The Management Board of mBank S.A. ("Bank") informs that on January 18,2019, the Bank received a letter from the Polish Financial SupervisionAuthority ("PFSA") regarding the assumptions of the dividend policy for2019.

The criteria for dividend payment up to 75% of the profit generated inthe previous year are in line with the criteria published in the PFSA'sposition of January 15, 2019 regarding the dividend policy assumptionsfor commercial banks, cooperative and associative banks, insurance andreinsurance companies, brokerage houses, investment fund companies anduniversal pension fund companies in 2019.

Criteria for dividend payment up to 100% of the profit generated in theprevious year, additionally take into account the bank's sensitivity tothe unfavorable macroeconomic scenario (ST parameter).

The Bank's sensitivity to the unfavorable macroeconomic scenario wasdefined as a difference between the total capital ratio (TCR) in thereference and shock scenarios at the end of the forecast period (2020).The indicator was determined on the basis of the results of stresstests, taking into account supervisory adjustments. Due to the stabilityof the balance sheet assumed this year, i.e. the inability of the banksto react to the adversely changing external environment, the STindicator has been reduced by the current level of the capitalconservation buffer of 2.5 p.p. valid from January 2019.

The PFSA informed the Bank that as a result of the stress tests carriedout, the ST's individual add-on, measuring the Bank's sensitivity to anunfavorable macroeconomic scenario, amounts to 5.05 pp. After deductingthe capital conservation buffer, the ST parameter for the Bank stands at2.55 pp.