mBank Group net profit for 2024 will be around PLN 2.2bln

The Management Board of mBank S.A. (_quot;Bank_quot;) informs that mBank Group netprofit for 2024 will be around PLN 2.2 billion. The positive results inthe core business were continued in the fourth quarter. They were alsoimpacted by extraordinary items which in aggregate had a positive impacton net profit.

The positive impact of the recognition of a deferred tax asset, whichwas carried out by the Bank in Q4 2024, on mBank Group's net profit,amounted to approximately PLN 390 million. The recognition of thedeferred tax asset is a consequence of a change in the methodology formeasuring the tax effects of invalidating mortgage loan agreementsindexed to a foreign currency (mainly CHF) in connection with courtjudgments, and the ongoing settlement program addressed to clients withforeign currency loans in CHF due to the extension of the validity ofthe regulation of the Minister of Finance introducing the cessation ofcollection of corporate income tax in 2025 and 2026.

The Bank recognized additional costs of legal risk related to foreigncurrency loans beyond those detailed in current report no 63/2024 dated30 December 2024. The impact of the additional costs on Q4 2024 mBankGroup net profit amounted to PLN -25 million.

mBank Group Tier 1 Capital Ratio and the Total Capital Ratio for Q4 2024are considerably higher than the required levels, which for mBank Groupamount to 9.1% for the Tier 1 Capital Ratio and 11.1% for the TotalCapital Ratio. The liquidity ratios significantly exceed the regulatoryrequirements.

The unaudited financial results of mBank Group for the fourth quarter of2024 will be disclosed in the form of a current report due to beannounced on 6 February 2025.