\\\\\ The Management Board’s Report on the activities of BNP Paribas Bank Polska S.A. Group in the first half of 2021 1 Content 1. The Capital Group of BNP Paribas Bank Polska S.A. ...................................................................................... 4 1.1. Brief overview of the Group .......................................................................................................................... 4 1.2. Structure of the Capital Group and consolidated entities ......................................................................... 5 1.3. Business model ....................................................................................................................................... 5 1.4. HR management ...................................................................................................................................... 7 2. Major events in the BNP Paribas Bank Polska Capital Group ........................................................................ 11 2.1. Major corporate events in the Capital Group ......................................................................................... 11 2.2. Awards and distinctions ......................................................................................................................... 12 2.3. Impact of the COVID-19 pandemic on the activity and performance of the Bank and the Group in the first half of 2021 ....................................................................................................................................................... 14 3. External factors affecting the Capital Group’s operations ............................................................................... 16 3.1. Macroeconomic conditions ..................................................................................................................... 16 3.2. Performance of the banking sector ........................................................................................................ 19 3.3. Stock market and investment situation .................................................................................................. 23 4. Strategy and prospects ................................................................................................................................... 25 4.1. Strategy of BNP Paribas Bank Polska S.A. ............................................................................................ 25 4.2. Execution of the strategy in the first half of 2021 ................................................................................... 25 4.3. Factors which may affect the performance of the Bank’s Capital Group ............................................... 28 5. Financial situation of the Capital Group of BNP Paribas Bank Polska S.A. .................................................... 31 5.1. Consolidated statement of profit and loss .............................................................................................. 31 5.2. Statement of comprehensive income ..................................................................................................... 41 5.3. Statement of financial position ............................................................................................................... 42 5.4. Own funds and capital ratios.................................................................................................................. 47 5.5. Financial ratios ....................................................................................................................................... 49 6. Operations of the BNP Paribas Bank Polska S.A. Capital Group Polska ....................................................... 51 6.1. Distribution channels .............................................................................................................................. 51 6.2. Bank Transformation Programme .......................................................................................................... 56 6.3. Retail and Business Banking ................................................................................................................. 60 6.4. Personal Finance Banking ..................................................................................................................... 66 6.5. Operations of the Brokerage House of BNP Paribas Bank Polska S.A. ................................................ 69 6.6. Small and Medium Enterprise Banking .................................................................................................. 70 6.7. Corporate Banking ................................................................................................................................. 73 6.8. Agro area ............................................................................................................................................... 77 6.9. Corporate and Institutional Banking ....................................................................................................... 79 6.10. Other banking activity ........................................................................................................................ 80 6.11. IT and cybersecurity .......................................................................................................................... 81 6.12. Operations and business support area .............................................................................................. 83 6.13. Cooperation with financial institutions ................................................................................................ 83 6.14. Entities of the BNP Paribas Bank Polska Group in the first half of 2021 ............................................ 84 7. Key risks management ................................................................................................................................... 88 7.1. Risk management system ..................................................................................................................... 88 7.2. Key risks ................................................................................................................................................ 90 8. Investor information ...................................................................................................................................... 101 8.1. Shareholder structure and share prices of the Bank ........................................................................... 101 2 8.2. Share prices......................................................................................................................................... 104 8.3. Statutory bodies of the Bank ................................................................................................................ 106 8.4. Ratings ................................................................................................................................................ 109 8.5. Investor relations ................................................................................................................................. 109 9. Other information .......................................................................................................................................... 110 9.1. Legal cases ......................................................................................................................................... 110 9.2. CSR (corporate social responsibility) and sustainable development ................................................... 114 9.3. Sponsorships ....................................................................................................................................... 123 9.4. Subsequent events .............................................................................................................................. 123 9.5. Statements of the Management Board of BNP Paribas Bank Polska S.A. .......................................... 124 3 1. The Capital Group of BNP Paribas Bank Polska S.A. 1.1.Brief overview of the Group BNP Paribas Bank Polska S.A. (hereinafter referred local economy. The Bank and its subsidiaries form to as the "Bank") is a universal bank with a the BNP Paribas Bank Polska SA Group. (hereinafter comprehensive product offer for Polish and referred to as the "Group"), which is the sixth largest international corporations, SME segment, farmers group in Poland in terms of the balance sheet total. and retail clients. It is present in local communities, The Group employs 8,702 people (FTE). but has global reach. The Bank has a leading position in the agri-food and consumer segments, as well as The Group provides services through a nationwide in the sector of large companies and international branch network and alternative distribution channels, corporations. including online and mobile banking for individual and corporate customers. The mission of the Bank is to responsibly deliver innovative financial solutions which enable the The Bank's shares are listed on the Main Market of customers change their world and which support Warsaw Stock Exchange. The Bank operates within the leading international banking group BNP Paribas. In Poland, the BNP Paribas Group operates in many areas of financial services, such as: banking, investment funds, custody services, factoring, leasing, insurance, real estate and car fleet management. BNP Paribas Bank Polska Group in figures in first half of 2021 PLN 124,023