18.01.2024
Contents:

1. REPORT

3. INFORMATION ABOUT THE ENTITY

4. SIGNATURE OF PERSONS REPRESENTING THE COMPANY

POLISH FINANCIAL SUPERVISION AUTHORITY
REPORT No 1 / 2024
Date of issue: 2024-01-18
Short name of the issuer
mBank S.A.
Subject
Costs of legal risk related to foreign currency loans
Official market - legal basis
Art. 17 ust. 1 MAR - informacje poufne.
Contents of the report:
Costs of legal risk related to foreign currency loans The Management Board of mBank S.A. ("Bank") informs that on January 18, 2024 the Bank decided on additional costs of legal risk related to loans indexed to foreign currencies in the amount of PLN 198,9 million. These costs result from the inclusion in the model parameters of the decision of the Court of Justice of the European Union dated January 12, 2024 in case C-488/23 concerning the question of the admissibility of a claim against a consumer for compensation consisting in the judicial valorisation of the capital paid out in the event that a credit agreement is declared invalid. As a result of the above and after updating the balances as at December 31, 2023, the total legal risk costs related to loans indexed to foreign currencies recognized in Q4 2023 amounted to PLN 1476,0 million. Consequently, the coverage ratio of outstanding mortgage loans indexed to CHF with the total legal risk costs related to loans indexed to CHF as at December 31, 2023 is estimated to be close to 100%. The Bank informs that the estimated preliminary net result for Q4 2023 will be negative or around zero. At the same time, the Bank informs that in Q4 2023, positive results in the core business continued. Assuming no other negative unforeseen events, the expected gross result for 2023 will be positive and net result will be positive or around zero. The mBank Group Tier 1 Capital Ratio and the Total Capital Ratio for Q4 2023 are expected to be similar to those reported for Q3 2023. At the same time, due to the expiry of the additional capital requirement related to risk of foreign currency mortgage loans for households, as announced by the Bank in the current report No. 73/2023 dated 20 December 2023, consolidated capital requirements for mBank Group have been reduced and currently amount to 9.15% for the Tier 1 capital ratio and 11.15% for the Total Capital Ratio. Thus, the surpluses above the capital requirements for Q4 2023 are expected to be higher than the levels reported for Q3 2023, when they amounted to 4.6 p.p. over Tier 1 Capital Ratio and Total Capital Ratio. The liquidity ratios significantly exceed the regulatory requirements.

INFORMATION ABOUT THE ENTITY    >>>

SIGNATURE OF PERSONS REPRESENTING THE COMPANY
Date Name Position / Function Signature
2024-01-18 Cezary Stypułkowski Prezes Zarządu