Introduction to mBank

The most successful organic growth story in

AUGUST 2021

1 mBank Group in a snapshot

General description Key financial data (PLN M) ✓▪ Set up in 1986, mBank is Poland’s fourth largest universal 2017 2018 2019 2020 H1 2021 banking group in terms of total assets and it keeps the fifth Total assets 131,424 145,781 158,353 178,872 198,471 position by net loans and deposits at the end of June 2021. Net loans 84,476 94,766 104,980 108,567 116,241 Deposits 91,496 102,009 116,661 137,699 156,584 ✓▪ Servicing 4.45 million retail clients and 30.4 thousand Equity 14,292 15,171 16,153 16,675 16,694 corporate clients in Poland and more than 1.0 million retail Total income 4,454 5,080 5,524 5,867 2,982 clients in Czech Republic and Slovakia. Net profit 1,092 1,303 1,010 104 426 ✓▪ The offer includes retail, SME, corporate and investment Net interest margin 2.5% 2.6% 2.7% 2.3% 2.1% banking as well as other financial services such as leasing, Cost/Income ratio 45.9% 42.6% 42.2% 41.1% 41.8% factoring, commercial real estate financing, brokerage, Cost of risk 0.61% 0.78% 0.79% 1.19% 0.70% wealth management, distribution of insurance, corporate Return on Equity 8.3% 9.4% 6.6% 0.6% 5.1% finance and advisory in the scope of capital markets. Tier 1 capital ratio 18.3% 17.5% 16.5% 17.0% 15.2% Total Capital Ratio 21.0% 20.7% 19.5% 19.9% 17.6% ✓▪ Profitable and efficient business model, operating with C/I NPL ratio 5.2% 4.8% 4.5% 4.8% 4.4% ratio at 41.8% in H1 2021. Well-capitalized bank with a strong Coverage ratio 59.2% 62.5% 60.7% 58.3% 58.3% funding profile and balanced business mix between retail and corporate segments. Attractive client base supporting Main product lines market share development. CORPORATES ▪ Rated ‘BBB’ by Standard & Poor’s and ‘BBB-’ by Fitch. RETAIL BANKING ✓ AND FINANCIAL MARKETS ✓▪ Listed on the Stock Exchange since 1992 with a market value of ~EUR 3.0 billion, a member of WIG-30 index. A wide range of modern Fully fledged offering: financial services for • Corporate banking ✓▪ A strategic shareholder, Germany’s , owns mass market, affluent • Transactional banking 69.28% of mBank’s shares. and private banking • Investment banking clients as well as entrepreneurs • Brokerage ✓▪ In line with its ESG strategy, mBank Group intends to • Leasing Czech Republic conduct the business in accordance with the principles of Poland • Factoring sustainable development (we want to educate, take care of and Slovakia the climate and the environment and promote prosperity). 5,463 thou. clients 30.4 thou. clients

Introduction to mBank Group 2 From a specialized corporate bank to a large universal bank

Brief history mBank Group’s market shares in Poland as of 30.06.2021 8.1% 8.2% 1986 Founding of Bank Rozwoju Eksportu (Export Development 7.6% 7.7% 7.3% Bank) as a joint-stock company

Debut on the

1992 An agreement on strategic partnership singed with Commerzbank AG

1994 The bank launches its Private Banking Bank starts operations in the retail banking segment, 1995 total assets loans deposits leasing factoring launching, in just 100 days, mBank – the first Internet bank in Poland of the sector non-financial sector 2000 Bank launches its second retail arm, MultiBank, brick-and- mortar bank aimed at servicing demanding and affluent 2001 clients Composition of total income of mBank Group (H1 2021)

Foreign expansion of bank’s retail operations, first outlets established in the Czech Republic and Slovakia Other 2007 Launch of new mBank transactional platform; rebranding Retail of the Group under mBank name Banking

Establishment of mAccelerator – a fund aimed at investing 58% 2013 in FinTech start-ups Corporate 38% Strategic partnership with the Great Orchestra of Christ- and 2017 mas Charity (WOŚP); e-commerce services via mElements Investment Banking 2018 Adjustment of processes and offer innovations during the COVID-19 pandemic; systematic increase of Renewable 2020 Energy Sources (RES) financing Total income: PLN 2,982 M in H1 2021

Introduction to mBank Group 3 Poland’s largest organically developed retail banking franchise

Number of mBank’s retail clients (thou.) Financial snapshot of Retail Banking segment

without Kompakt Finanse Loans (PLN B) Deposits (PLN B) 66.0 98.0 +5% 60.0 A drop in Q1 2021 77.7 48.1 52.9 CAGR 5,660 due to closing of 65.9 5,350 5,601 5,463 inactive accounts 55.7 4,775 4,981 1,003 with arrears 4,469 924 959 1,015 CAGR: CAGR: 869 905 797 +11.1% +20.7%

2017 2018 2019 2020 2017 2018 2019 2020 4,426 4,643 4,657 4,448 mBank CZSK 3,672 3,906 4,076 mBank PL PLN M 2017 2018 2019 2020 CAGR ’17-20 Total income 2,676 3,185 3,385 3,545 +9.8% 2015 2016 2017 2018 2019 2020 06/21 Operating profit 1,137 1,410 1,436 1,356 +6.0%

mBank Group’s market shares in Poland - Households Number of retail service locations 8.2% 8.9% current deposits 8.0% 7.8% -15 mBank CZSK 4.9% term deposits 7.7% 7.5% 390 383 7.3% 358 368 mFinanse 333 37 41 7.0% 33 43 7.6% 44 42 6.7% 6.9% 7.4% 7.5% 33 41 40 mKiosks 7.2% 7.2% 7.3% 41 7.0% 166 161 Advisory centres 123 143 149 6.5% 6.6% mortgage loans 8.0% Light branches 10 12 14 14 15 non-mortgage loans 6.9% 24 34 40 34 34 (in shopping malls) mBank’s outlets 102 95 89 91 87 (standard format) 06/19 09/19 12/19 03/20 06/20 09/20 12/20 03/21 06/21 2017 2018 2019 2020 06/21 LoansLoans DepositsDeposits

Introduction to mBank Group 4 Development of leading mobile banking offer for individuals

easiest way to manage Well-designed functionalities for client convenience your finances

fully remote account opening with a selfie and agreement approved via a text message pace of spending ✓

recent logging in with a PIN code, transactions ✓ fingerprint or Face ID

contactless payments with Google Pay and useful shortcuts ✓

express transfers using telephone 4.7 4.8 4.1 ✓ numbers and the system

reminders from Payment Assistant and scanning of data to the transfer form from the invoices Mobile application to Junior Account ✓ designed for children below 13 years old and suited to their needs benefits (mDiscounts) for retail buyers and seamless mBank was awarded as Best Private Bank in CEE shopping experience with one-click financing options in Digital Portfolio Management category by (quick cash loan up to pre-approved limit) Professional Wealth Management magazine ✓

Introduction to mBank Group 5 mBank as a front-runner in mobile banking adoption

Active users of mBank’s mobile application in Poland by the share Number in thousand of mobile users average +148 #1 in total active growth per year 2,423 customer base 2,274 +342 1,895 1,484 by the number 1,181 854 of mobile app 565 #2 users among Polish banks 2015 2016 2017 2018 2019 2020 06/21

Active users of mBank’s mobile application outside Poland Growing importance of mobile channel in daily banking Number in thousand Share of mobile application Usage of Apple Pay, in the sale of non-mortgage Google Pay, Garmin Pay Czech Republic Slovakia loans (by volume) and Fitbit Pay

+71 +24 +3pp Mobile payment cards number at the end of Q2/21 228 100 22% 23% 210 93 20% 1,404 thousand 76 158 +95,000 QoQ Contactless mobile transactions number in Q2/21 60.5 million 2019 2020 06/21 2019 2020 06/21 Q2/20 Q1/21 Q2/21 +36% QoQ

Introduction to mBank Group 6 Premier transactional bank with digital DNA

Constant growth of non-cash transactions with mBank’s payment cards

Number of transactions (million) Value of transactions (PLN B)

Market share Market share CAGR CAGR in 2020: 12.0% in 2020: 12.2% +17.0% +17.2% 737.8 733.4 46.6 49.5 597.7 38.2 484.9 31.5 391.8 397.4 26.2 27.3

2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021

Significant role of digital channels in mBank’s acquisition and product sales

Customer acquisition by channel, 2018 Sales mix by channel, 2018 9% 2% 1% 22% 17% 35% 31% 3% 30% 3% 41% 4% 4% 1% Digital 68% 4% 5% 2% Contact 3% 88% 75% centre 76% 64% 66% 60% 3rd party 8% 54% Branches 24% mBank Average for Average for Average for mBank Average for Average for Average for Polish Banks CE Banks WE Banks Polish Banks CE Banks WE Banks

Source: mBank’s internal data and comparison based on external benchmarking study, June 2019. Note: Data in terms of quantity of products sold (completed sales process). Introduction to mBank Group 7 Strong presence and leading expertise in corporate banking

Number of mBank’s corporate clients Financial snapshot of Corporates & Financial Markets segment

Corporate customers split: Loans (PLN B) Deposits (PLN B) 30,417 +8% 29,083 47.8 46.0 38.1 39.2 2,347 K1 44.2 34.6 35.3 CAGR 26,476 2,358 annual sales 37.9 23,706 2,319 over PLN 1 B 22,048 9,335 and non-banking 20,940 2,193 8,862 19,562 2,093 financial institutions 2,123 8,211 CAGR: CAGR: 1,983 7,520 +6.6% +4.3% 6,067 7,088 K2 5,748 annual sales PLN 50 M to PLN 1 B 2017 2018 2019 2020 2017 2018 2019 2020 18,735 15,946 17,863 12,750 12,867 13,993 K3 11,831 annual sales PLN M 2017 2018 2019 2020 CAGR ’17-20 below PLN 50 M and full accounting Total income 1,727 2,366 2,152 2,333 +10.5% 2015 2016 2017 2018 2019 2020 06/21 Operating profit 744 349 979 823 +3.4%

mBank Group’s market shares in Poland - Enterprises Number of corporate service locations as of 30.06.2021

11.7% 11.3% 11.2% 11.4% 11.1% 11.3% 2 2 10.5% Pomorskie 1 2 2 Warmińsko- Zachodnio- Mazurskie 1 1 9.9% Pomorskie 2 1 29 Podlaskie 9.4% mBank’s branches, Kujawsko- Pomorskie 4 2 incl. 13 advisory centres 2 2 2 Mazowieckie Lubuskie Wielkopolskie 1 8.8% Łódzkie 1 8.7% 8.6% 8.6% 8.6% 8.6% 8.7% 2 1 8.4% 8.5% 14 mBank’s offices Lubelskie Dolnośląskie 1 1 Opolskie 4 1 Świętokrzyskie Śląskie Podkarpackie 2 1 1 1 06/19 09/19 12/19 03/20 06/20 09/20 12/20 03/21 06/21 Małopolskie

LoansLoans DepositsDeposits

Introduction to mBank Group 8 Development of best digital banking services for corporate clients

company's finances First-class digital banking offer for companies always at hand

entirely digital onboarding process, ✓ with no in-person contact and printouts required

advanced mBank CompanyNet transactional ✓ system, allowing for high level of personalization

remote access and constant control via enhanced ✓ mBank CompanyMobile application

Administrator Centre for self-managing user ✓ permissions and authorisation schemes CompanyMobile CompanyNet electronic sending of documents, ✓ signing of agreements

mBank was named “World’s Best mAuto.pl online platform with an Corporate/Institutional Digital Bank in CEE 2020” offer of new and used cars, financed by Global Finance magazine ✓ by leasing or long-term rental

Introduction to mBank Group 9 Development of complete solutions for e-commerce segment

mBank’s unique payment gateway Comprehensive value proposition for e-merchants

the 1st Polish payment integrator in the cloud Online payment processing solution (BLIK, pay-by-link, card) and a core of mBank’s offering We are strengthening mBank's position… for e-commerce merchants …as first-choice partner for e-commerce (SME and corporate clients)

developed to provide a delightful digital shopping experience 2nd edition of special campaign and contest “Digital Revolutions” for the customer and the merchant to support microfirms and SMEs in e-commerce expansion

▪ quick and easy integration with ▪ tools for opening and running an professional merchant’s online shop e-shop in cooperation with Sky-Shop accounting ▪ high processing capacity, especially Choose payment method (incl. an option to set up an online services for businesses for peaks in payment volumes (up to store for a 14-day free trial period) BLIK ▪ 200 transactions per second) Enter 6-digit code from the phone free-of-charge accounting helpline ▪ convenient management through for e-commerce mBank’s transactional service or Card payment ▪ dedicated webinars, articles and blog panel adapted to mobile devices Enter data from the card for firms starting sales and already operating in Internet ▪ no fee for activation and attractive Online transfer pricing thereafter Choose the bank and pay ▪ mOrganizer to handle invoices

Processed payments volume Already 6,500 of clients took has been growing dynamically, advantage of mBank’s e-commerce offer, with PLN 29 M per month in Q2/21 including +1,000 in Q2/21

Introduction to mBank Group 10 Focus on sustainable and responsible banking

External ESG assessment Our ESG activities are centred around 3 aspects in line with sustainable development strategy

15.9 ESG Risk Rating ✓ mBank educates ✓ mBank promotes prosperity low risk by Sustainalytics as of 19.04.2021 ▪ We support the develop- ▪ We support organisations ment of mathematical skills that work for social welfare and equalize educational We play together opportunities for the young ▪ We are accessible to MSCI clients with disabilities A ESG Rating ▪ We teach how to (inclusive banking) use online and mobile ▪ We ensure diversity banking safely and equal opportunities

Membership in ESG indices ✓ mBank cares about the climate and the environment Bloomberg GEI We limit our indirect impact Gender-Equality Index ▪ Credit policy regarding industries relevant in the context of EU climate policy ▪ Eco-supportive products in each customer segment FTSE4Good ▪ PLN 4 billion dedicated for Renewable Energy Sources financing Index Series ! We limit our direct impact Customers choosing WIG-ESG index virtual cards saved nearly ▪ Measurement and reduction of our carbon footprint on WSE in Poland 250 kilograms of plastic ▪ Waste segregation and recycling with us in H1 2021 ▪ Selection of suppliers by ESG standards Green Bond framework

Introduction to mBank Group 11 Supportive demographic profile of mBank’s retail client base

Distribution of Polish banks by attractiveness of customer base in terms of age and education

% of customers Poland Highest share of the under 30 years old average Young (<30 years old) 30% mBank’s clients are expected to reach their 28% highest personal income levels in the future

26%

24% Poland 22% average

20%

18%

16%

14%

12% % of customers with higher education 10% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64%

Source: mBank based on declarative answers from Target Group Index by Kantar MillwardBrown, June 2019, 20.1k customers. Introduction to mBank Group 12 Highly efficient platform underpinning solid financial results

Total income (PLN M) & net interest margin (NIM) Total operating expenses (PLN M) & Cost/Income ratio (C/I)

Net interest income Net fee income Net trading and other income Personnel costs Material and other costs BGF contribution

+8.1% +5.3% Starting from 2017, margin on FX CAGR 5,524 5,867 one-off regulatory costs CAGR 2,411 transactions recognised in NFC 5,080 2,164 2,329 4,454 251 349 1,963 2,043 298 4,295 325 180 256 68 1,271 1,508 151 11 180 556 1,249 1,258 1,245 906 2,982 1,031 1,054 1,138 153 925 960 921 178 4,003 4,009 3,136 3,496 568 2,833 877 903 952 1,019 975 1,908 499 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021 NIM 2.3% 2.5% 2.6% 2.7% 2.3% 2.1% C/I 45.7% 45.9% 42.6% 42.2% 41.1% 41.8%

Loan loss provisions (PLN M) & cost of risk (COR) Net profit (PLN M) & return on equity (ROE)

Retail Banking Corporates and Financial Markets Reported net profit Banking tax Provisions for legal risk of FX loans

Loan loss provisions & FV change for 2020 included PLN 341 M of negative impact 1,293 +1.7% related to the Covid-19 pandemic CAGR +37.1% 1,857 1,739 1,657 CAGR 1,548 794 662 1,467 388 694 329 415 375 459 1,027 508 283 1,022 365 238 393 315 165 80 630 159 1,219 1,092 1,303 286 456 510 1,010 531 285 343 234 426 104 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021 COR 0.46% 0.61% 0.78% 0.79% 1.19% 0.7% ROE 10.1% 8.3% 9.4% 6.6% 0.6% 5.1%

Introduction to mBank Group 13 Well-balanced growth of business volumes, strong capital position

Total gross loans (PLN B) Total customer deposits (PLN B)

Individual clients Corporate clients Public sector Individual clients Corporate clients Public sector

156.6 +7.3% 119.9 CAGR 112.2 +10.8% 137.7 0.8 108.2 0.2 CAGR 97.8 0.4 0.2 116.7 0.5 49.1 84.6 87.4 102.0 0.6 49.6 91.4 91.5 0.9 39.2 1.5 1.3 47.8 46.0 0.7 44.2 0.5 1.2 38.1 37.9 35.3 34.2 37.4 34.6 98.0 106.7 60.0 66.0 70.1 77.7 48.9 48.1 52.9 53.5 55.7 65.9

2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021

mBank Group’s capital ratios and TREA (PLN B) Wholesale funding (PLN B) & loan-to-deposit ratio (L/D)

calculated in accordance with Basel III rules Due to banks Issued debt securities Subordinated debt 21.0% 20.7% 20.3% 19.4% 19.9% 2.7% -6.7% 3.0% 3.2% 2.9% 17.6% 2.9% CAGR 2.4% 25.1 23.6 21.6 21.1 3.9 2.5 19.0 2.2 2.5 18.4 2.6 2.8 17.3% 18.3% 17.5% 16.5% 17.0% 12.7 15.2% 14.3 18.0 17.4 14.0 13.1 8.5 5.1 3.1 1.2 2.4 2.5 2016 2017 2018 2019 2020 H1 2021 2016 2017 2018 2019 2020 H1 2021 TREA 65.31 68.0 76.2 84.1 88.5 97.6 L/D 89.4% 92.3% 92.9% 90.0% 78.8% 74.2%

1 Due to the adjustment of the application of the regulatory floor to the requirements of article 500 CRR and the extensions of the AIRB approach Introduction to mBank Group 14 New segmentation to show genuine performance of core business

Summary of financial results for mBank’s core activity and run-off portfolio in H1 2021 Separation of FX mortgage loan portfolio ▪ PLN million Core Business Non-core1 mBank Group In order to present the genuine and undistorted performance of mBank Group, Net interest income 1,843.5 65.0 1,908.4 the new segmentation was introduced. The non-core part, comprising of FX mortgage Net fee, trading and other income 1,107.0 -33.8 1,073.1 loans, was separated from the total business. Total income 2,950.4 31.1 2,981.6 ▪ Non-core assets were defined as all residen- tial mortgage loans granted to individual Total costs -1,235.8 -9.1 -1,244.9 customers in Poland that at any point in Loan loss provisions and fair value change 2 -403.6 10.6 -393.1 time were in another currency than PLN. In addition to the FX mortgage loan portfolio, Costs of legal risk related to FX loans 0.0 -314.8 -314.8 associated provisions for legal risk arising Operating profit 1,311.0 -282.2 1,028.8 from these contracts are also allocated to the segment. Taxes on the Group balance sheet items -258.3 -27.6 -286.0 Profit before income tax 1,052.6 -309.8 742.8 The capital allocated to the non-core unit Net profit 735.6 -309.8 425.8 amounted to PLN 2.9 B as of 30.06.2021. Total assets 185,136 13,335 198,471 It is calculated primarily based on: ▪ risk weight of the portfolio under AIRB method; Net interest margin 2.16% 2.07% ▪ individual FX ML add-on imposed on mBank Group (actual or expected level); Cost/Income ratio 41.9% 41.8% Provisions for legal risk are currently divided into: Cost of risk 0.82% 0.70% ▪ PLN 1,468.5 M reflected through a deduction Return on equity (ROE) 10.7% 5.1% from gross assets; Return on assets (ROA) 0.83% 0.44% ▪ PLN 220.5 M included in the bank’s liabilities;

1 Equivalent of ”FX Mortgage Loans segment” in the financial statement 2 Sum of ‘Impairment on financial assets not measured at fair value through profit or loss’ and ‘Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss’ related to loans Introduction to mBank Group 15 mBank has to fulfil one of the highest capital requirements

Regulatory capital requirements for mBank Group as of 30.06.2021

13.86% Countercyclical Capital Buffer (CCyB) is calculated as the weighted average of the 0.50% 0.04% countercyclical buffer rates that apply in the countries where the relevant credit exposures of the Group are located.

11.15% 2.50% Systemic Risk Buffer (SRB), originally set at 3.0% in Poland, was reduced to 0% starting from 19.03.2020; for mBank it applies only to domestic exposures. 0.50% 0.04% Other Systemically Important Institution (O-SII) Buffer imposed by an administrative decision of the PFSA, in which mBank has been identified as other 2.82% 2.50% systemically important institution; its level is reviewed annually. Conservation Capital Buffer (CCB) is equal for all banks in Poland as introduced by the Act on Macroprudential Supervision Over the Financial System and Crisis 2.11% Management in the Financial System; it was implemented gradually and raised from 1.25% to 2.5% starting from 01.01.2019. Individual additional Pillar 2 for risk related to FX retail mortgage loans (FXP2) imposed as a result of risk assessment carried out by the 8.00% PFSA within the supervisory review and evaluation process (“SREP”); its level is 6.00% reviewed annually. CRR Regulation minimum level (CRR) based on Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Tier 1 Capital Ratio Total Capital Ratio

Introduction to mBank Group 16 mBank Group’s Strategy for 2020-2023

WhatWhat will will mBank mBank be be like like in in thethe horizonhorizon ofof thethe strategystrategy for 20202020--2023?2023?

…… continue continue mBank’smBank’s organicorganic growth growth, based, based on on the the acquisition acquisitionof youngof young clientsclientsandand dynamic dynamic companiescompaniesfromfrom prospective prospective industries. industries.

… accompanyaccompanyourour clients clients throughout throughout their their lifecycle lifecycleandand development development, , designingdesigning our products, platforms,platforms, accessaccess channelschannels andand serviceservice model model accordingaccording toto theirtheir needsneeds. .

… remainremain thethe mostmost convenientconvenient transactional transactional bank bankby byproviding providing our our customerscustomers withwith easeease andand speed speed of of use use, high, high security security standards, standards, We will… advancedadvanced platform,platform, personalisation personalisationandand a bonusa bonus for for loyalty. loyalty. We will… …… build build our our offer offer and and solutions solutions based based on on the the mobile mobile first firstparadigm,paradigm, increasingincreasing the shareshare ofof salessales and and service service in in the the digital digital sphere sphere. .

… intensify optimisation, automation and digitalisation of internal processes what will translate into savings for the organisation and enhanced operational efficiency.

… be systematically improving our profitability due to rising revenues, decent cost discipline and prudent approach to risk management, while more favourable balance sheet structure will result in higher margin.

Introduction to mBank Group 17 mBank Group’s Strategy for 2020-2023

In the strategy for 2020-2023, mBank Group focuses on 4 areas

Client Platform Acquisition & Ecosystem & long-term relations user experience

Four pillars of the strategy for 2020-2023 correspond to the key components of mBank’s business model

Employees Efficiency & organisation culture Operational advantage

Introduction to mBank Group 18 mBank Group’s Strategy for 2020-2023

Corporate Social Responsibility and Sustainable Development Strategy of mBank

Be among top three leaders of social responsibility in the banking Top aim sector

Direction guidelines Sustainable Development Goals (SDGs) set by the United Nations

mBank cares about the mBank educates mBank promotes prosperity climate and the environment ▪ We support the development ▪ We limit our indirect impact. ▪ We support organisations that work of mathematical education for social welfare. and equalize educational credit policy regarding industries relevant cooperation with WOŚP opportunities for young people. in the context of EU climate policy ▪ We are accessible to clients with national competitions and grant programmes mBank in the disabilities (inclusive banking). ESG Index (GPW) ▪ We act ethically. ▪ We teach how to use online and ▪ We limit our direct impact. Code of Conduct 2.0 mobile banking safely. We make customers more measurement and reduction ▪ We communicate with sensitive to cybercrime threats in of our carbon footprint our customers in a fair, clear and the banking area. reduction of energy transparent way. consumption social (educational) saving water, paper ▪ We ensure diversity and equal campaigns and office supplies opportunities.

Introduction to mBank Group 19 mBank Group’s Strategy for 2020-2023

Financial targets of mBank Group for 2020-2023

Measure Target level Current level

Profitability in 2023 2020 (recurrent) Net interest margin (NIM) ~3.0% 2.3% Cost/Income ratio (C/I) ~40% 41.1% Return on equity (ROE net) ~10.5% 0.6% (6.8%1)

Stability every year 31.12.2020 Loans/Deposits ratio in a range of 92-94% 79.8% Tier 1 ratio exceeded regulatory year-end level min 1.5 p.p. above Capital ratios requirement by 5.8 pp and TCR by 6.0 PFSA requirements pp Annual dynamics compared with Growth CAGR 2019-2023 2019: Dynamics of loans ~6% 1.9%2 Dynamics of deposits ~6% 18.0% Dynamics of total revenues ~8% 6.2% Dynamics of total costs ~5% 3.5%

Our goal is to pay 50% of net profit as a dividend. 1 excluding the provisions for legal risk related to foreign currency loans 2 net of FX effect . Introduction to mBank Group 20 COVID-19 pandemic caused first recession in Poland ever

GDP growth in Poland (% YoY) Inflation rate (YoY) and the path of interest rates

mBank’s forecast 5% 12 11.3 4% Source: NBP, GUS 9 Source: GUS 6.8 5.5 5.2 5.3 5.4 5.3 4.8 5.1 5.1 5.1 4.4 4.9 3% 6 4.3 3.6 3.1 3.4 2.8 2.9 1.9 2% 3 1% 0 0% -3 -1.5 -0.9 -2.8 -1% -6 -8.4 -2% -9 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20 Q3/20 Q1/21 Q3/21 2015 2016 2017 2018 2019 2020 2021

Investment Net exports Consumption Repo rate CPI inflation Core inflation Inventories GDP YoY (%) Repo rate forecast CPI forecast Core CPI forecast

Flexible exchange rate Key economic indicators for Poland

4,80 2020 2021P 2022P Source: Bloomberg 4,60 GDP growth (YoY) -2.7% 5.7% 5.3%

4,40 Domestic demand (YoY) -3.8% 7.4% 6.4%

4,20 Private consumption (YoY) -3.0% 5.8% 6.2%

4,00 Investment (YoY) -8.4% 13.0% 8.8%

3,80 Inflation (eop) 2.4% 5.2% 4.0%

3,60 MPC rate (eop) 0.10% 0.10% 1.00% Jan.19 Apr.19 Jul.19 Oct.19 Jan.20 Apr.20 Jul.20 Oct.20 Jan.21 Apr.21 Jul.21 CHF/PLN (eop) 4.22 4.04 3.87 EUR/PLN CHF/PLN USD/PLN Source: Bloomberg EUR/PLN (eop) 4.56 4.45 4.30 Source: Central Statistical Office (GUS), National , Bloomberg, mBank’s estimates as of 23.07.2021.

Introduction to mBank Group 21 Demand for credit to pick up but huge liquidity a damping factor

Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted)

30% 14% Source: NBP 25% Source: NBP 12% 20% 10% 15% 8% 10%

5% 6%

0% 4%

-5% 2%

-10% 0% Jan.13 Oct.13 Jul.14 Apr.15 Jan.16 Oct.16 Jul.17 Apr.18 Jan.19 Oct.19 Jul.20 Apr.21 Jan.13 Oct.13 Jul.14 Apr.15 Jan.16 Oct.16 Jul.17 Apr.18 Jan.19 Oct.19 Jul.20 Apr.21

Corporate deposits Corporate loans Corporate investment loans Household deposits Household loans Mortgage loans

Deposit base is high and unlikely to be reversed. Growth rates of Consumers acquired substantial liquidity buffers (also in cash). Growth outstanding credits are negative. Yet, the inflection point is visible. Overall rates of outstanding credits are clearly turning higher. It applies both to volumes set to return to positive growth territory by the end of the year. mortgage and consumer loans (both see strong demand).

Corporate volumes – YoY 2020 2021P 2022P Household volumes – YoY 2020 2021P 2022P

7.3% 4.5% 5.6% Corporate loans -4.8% 4.7% 9.5% Mortgage loans Non-mortgage loans -3.8% 4.8% 9.1% 19.0% 9.7% 5.7% Corporate deposits Retail deposits 10.7% 5.6% 5.2%

Source: National Bank of Poland, mBank’s estimates as of 23.07.2021.

Introduction to mBank Group 22 Polish banking sector is stable and well-capitalized

Loan penetration: key credit categories to GDP (%) in Poland) Capital adequacy and Funding: capital and L/D ratios

2005 2010 2015 2020 Total Capital Ratio Loan-to-deposit ratio 21.0% 94.8% 20.9 20.6 92.3% 90.2% 18.2 19.0% 19.0% 19.1% 15.6 15.8 79.5% 14.1 12.1 9.5 8.2 7.2 5.1 5.7

Corporate loans Housing loans Consumer loans 2017 2018 2019 2020 2017 2018 2019 2020

Asset quality: development of NPL ratios by segment) Efficiency and Profitability: C/I ratio and ROE

Impact of IFRS9 introduction Cost-to-Income ratio Return on Equity 13% 7.1% 12% 58.0% 6.4% 6.7% 56.3% 56.3% 55.6% 11% 10% 9% 8% 3.5% 7% 6% 5% 4% 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18 12/19 12/20

Non-financial sector - Total Households Non-financial corporations 2017 2018 2019 2020 2017 2018 2019 2020

Source: mBank calculations based on data published by the Polish FSA, National Bank of Poland. Note: Ratios (C/I, ROE) impacted by banking tax in 2017-2020.

Introduction to mBank Group 23 Key challenges for profitability and operations of Polish banks

Discussions concerning Ongoing discussion concerning foreign currency mortgage loans, including the proposal of the Chairman of the foreign currency PFSA to convert these loans into PLN as well no unified line of jurisprudence with respect to court cases related to mortgage loans CHF loans constitute a major factor influencing banks’ functioning and their growth plans.

After three cuts, by 0.5% in March 2020, another 0.5% in April 2020 and 0.4% in May 2020, the reference Low interest rate rate is currently at 0.10%, the lowest level ever recorded in Poland. The consequences of COVID-19 pandemic make it environment unlikely for the Council to rise the NBP interest rates in the nearest future.

Aid measures provided to the clients affected by the economic implications of COVID-19 pandemic, such as loan Uncertainty concerning moratoria and new funding backed by the guarantees of the Bank Gospodarstwa Krajowego, as well as transfer of financial implications government aid to the corporates, were aimed at supporting liquidity and financial resilience of companies and of COVID-19 pandemic individuals. Long-term results of the pandemic might potentially have an impact on the quality of loan portfolios in the banks. Any regulatory measures with this respect need to be observed.

In October 2016, the Act on the Bank Guarantee Fund, Deposit Guarantee Scheme and Resolution entered into force. Charges to the Bank Consequently, in 2017 two new funds – Deposit Guarantee Fund and Resolution Fund – were created as well as a Guarantee Fund calculation of banks’ contributions were changed (no longer based on TREA). The amount of payment is set by the BFG annually, and might differ significantly between years

Starting from February 2016, banks, other credit institutions and insurers have to pay a special tax. In case of banks, Tax imposed of assets above PLN 4 billion are taxed, with own funds and government bonds deducted from the tax base. Banks financial institutions under recovery proceedings are not to pay the tax. The monthly tax rate is set at high 0.0366%.

Despite the temporarily decreased systemic risk buffer in Poland (to 0% since March 2020), local minimum capital Additional capital levels remain to ensure sector’s stability and adequate loss absorption capacity. Moreover, individual additional capital requirements requirements imposed by the Polish FSA on banks most exposed to FX mortgage loans have been still in place.

Introduction to mBank Group 24