MBank S A : Costs of legal risk related to foreign currency loans

The Management Board of mBank S.A. ("Bank") informs that in connection with the decision taken on January 13, 2023 by the Bank, the costs of legal risk related to foreign currency loans in CHF recognized in Q4 2022, amounted to PLN 430.1 million. These costs result mainly from the inclusion of costs of final court verdicts, the costs of the settlements and the update of market parameters utilized in the model.

The Bank also recognized a deferred tax asset in the amount of PLN 198 million, which results from the settlement program addressed to the CHF loan borrowers. At the same time, the Bank informs that the net result achieved by mBank Group in Q4 2022 was positive, while the net result in 2022 was negative, which was announced in the current report No 48/2022 dated September 27, 2022.