21.12.2023
Contents:

1. REPORT

3. INFORMATION ABOUT THE ENTITY

4. SIGNATURE OF PERSONS REPRESENTING THE COMPANY

POLISH FINANCIAL SUPERVISION AUTHORITY
REPORT No 74 / 2023
Date of issue: 2023-12-21
Short name of the issuer
mBank S.A.
Subject
Costs of legal risk related to foreign currency loans
Official market - legal basis
Art. 17 ust. 1 MAR - informacje poufne.
Contents of the report:
Costs of legal risk related to foreign currency loans The Management Board of mBank S.A. ("Bank") informs that in connection with the decision taken on December 21, 2023 by the Bank, the costs of legal risk related to loans indexed to foreign currencies recognized in Q4 2023, amounted to PLN 1208.5 million. These are mainly due to the updated cost of the settlement program, the projected distribution of court verdicts and amendments of other model and market parameters. The Bank informs that the estimated preliminary net result for Q4 2023 will be either positive or around zero. At the same time, the Bank informs that in Q4 2023, positive results in the core business continued. Assuming no other negative unforeseen events, the expected net result for 2023 will be either positive or around zero. The mBank Group Tier 1 Capital Ratio and the Total Capital Ratio for Q4 2023 are expected to be somewhat lower than those reported for Q3 2023. At the same time, with reference to the current report No. 73/2023 dated 20 December 2023, consolidated capital requirements for mBank Group have been reduced by the Polish Financial Supervision Authority by 0.89 p.p. for the Tier 1 Capital Ratio and 1.18 p.p. for the Total Capital Ratio due to the expiry of the additional capital requirement related to risk of foreign currency mortgage loans for households. Current consolidated capital requirements for mBank Group amount to 9.15% for the Tier 1 capital ratio and 11.15% for the Total Capital Ratio. Thus, the surpluses above the capital requirements for Q4 2023 are expected to be similar to the levels reported for Q3 2023, when they amounted to 4.6 p.p. over Tier 1 Capital Ratio and Total Capital Ratio. The liquidity ratios significantly exceed the regulatory requirements.

INFORMATION ABOUT THE ENTITY    >>>

SIGNATURE OF PERSONS REPRESENTING THE COMPANY
Date Name Position / Function Signature
2023-12-21 Marek Lusztyn Wiceprezes Zarządu