Current Report 

Drafted on:

27.03.2018

Current report No

12/2018

Abbreviated issuer’s name

mBank

Contents: 

With reference to the current report No. 70/2017 of November 27, 2017 related to the conditional agreement concluded by mBank S.A. with the registered office in Warsaw ("Bank") and and Bank's subsidiary mFinanse under which: (i) the Bank is obliged to sell and transfer 100%, i.e. 100,000, shares in Latona S.A. to Phoebe IVS with its registered office in Denmark ("Investor") and (ii) mFinanse is obliged to thereupon sell and transfer an organised part of the enterprise of mFinanse to Latona S.A (the "Agreement"), the current report No 5/2018 of February 28, 2018 related to fulfilment of the conditions precedent to execution of the transaction, and current report No 11/2018 of March 26, 2018 related to the sale of 100% shares in Latona S.A., the Management Board of the Bank hereby announces that in performance of the Agreement in the scope indicated in point (ii) above, on March 27 mFinanse sold and transferred an organised part of the enterprise of mFinanse to Latona S.A.

The maximum value of remuneration on account of the transaction is approx. PLN 491 million.

As a result of the re-performed analysis of the accounting approach towards the recognition of the result on the transaction mBank Group will recognize in Q1 2018 a one-off net profit on the transaction in the amount of PLN 177 million. Due to the nature of the transaction the recognition of the part of the remuneration in the future will depend on the performance of the business sold. This may lead to the additional net profit of up to maximum PLN 192 million over the period of approximately 6 years from the closing of the transaction.

Director of the Compliance Department

Agata Rowińska 27.03.2018