Current Report No. 4/2023

Subject:Individual recommendation of the Polish Financial Supervision Authorityregarding the fulfilment of the criteria for the dividend payout fromthe net profit generated in 2022 and information on the proposeddistribution of the 2022 net profit

Legal basis:Article 17 (1) of Regulation (EU) No 596/2014 of the European Parliamentand of the Council of 16 April 2014 (MAR).

The Management Board of BankHandlowy w Warszawie S.A. (_quot;Bank_quot;) hereby announces that on March 17,2023 it received a letter from the Polish Financial SupervisionAuthority (_quot;PFSA_quot;) with a dividend recommendation for the Bank.

According to the letter, as atDecember 31, 2022, in terms of the basic criteria on the dividend policyof commercial banks for 2023, the Bank met the requirements qualifyingit for the payment of up to 100% of the dividend from the Bank's profitgenerated in the period from January 1, 2022 to December 31, 2022.

In the letter, KNF also indicatesthat taking into account the quality of the Bank's credit portfolio,measured by the share of non-performing receivables in the totalportfolio of receivables from the non-financial sector, including debtinstruments, the rate of possible dividend payout, due to good creditquality, remained at 100%.

At the same time, taking intoaccount the uncertainty regarding the macroeconomic situation, with theaim of ensuring the stability of the Bank's operations in subsequentperiods, as well as its further development, the PFSA recommended theBank to reduce the risk in its business activity by way of notundertaking, without prior consultationwiththe supervisory authority, any actions outside the scope of the currentbusiness and operating activities, which could result in a reduction ofthe own funds, including possible dividend payments from undistributedprofit from previous years and share buybacks.

Taking into account theexpectations of the PFSA, dynamic changes in the banking sectorenvironment and regulations regarding the minimum requirement for ownfunds and eligible liabilities (MREL) for the Capital Group of BankHandlowy w Warszawie S.A., the Management Board of the Bank, on March17, 2023, adopted a resolution on the proposed distribution of the netprofit for the year 2022.

The Management Board of the Bankrecommended a 75% dividend payout of 2022 stand alone profit, whichtranslates into distribution of the net profit for 2022 in the amount ofPLN 1,569,309,967.45 as follows:

1) dividend: PLN1,175,936,400.00, i.e. 9.00 per share

2) reserve capital: PLN393,373,567.45

The Management Board of the Bankproposed to set the dividend date for May 8, 2023 (the dividend day) andthe date of dividend payment for May 15, 2023 (the dividend paymentdate).

The above recommendation of theBank's Management Board will be submitted to the Supervisory Board forconsideration and assessment, and then to the General Meeting foradoption of a resolution. The final decision on the distribution of thenet profit for 2022 will be made by the General Meeting of the Bank.