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Investor Presentaiton

mBank Hipoteczny key financials Summary of Key Financials: Profit and Loss Accounts in PLN M 2016 2017 2018 2019 2019 H1 2020 H1 - NII Net Interest Income 130.1 156.0 176.3 186.1 91.7 83.3 Decrease in NII due to interest rate policy of NBP - NFC Net Fee & 1.5 (5,7) (2.5) (8.2) (3.4) (3.5) Commission Income Total income¹) 134.1 146.9 171.7 180.8 92.4 80.0 Total costs²) (65.7) (67.5) (63.6) (67.89) (39.6) (37.5) Cost/Income Ratio 48.96% 45.99% 36.78% 36.81% 43.83% 49.45% LLP Loan Loss Provisions (21.6) (20.2) (16.71) (20.0) (8.34) (17.57) Increase in LPP as a consequence of COVID-19 Operating result 46.9 59.2 88.3 91.3 43.0 19.9 Taxes on the balance sheet Profit before income tax (16.7) (24.4) (27.6) (32.2) (16.1) (15.5) 30.2 34.7 60.7 59.1 26.8 4.4 Net profit 23.4 27.8 41.2 37.1 17.2 1.2 Net Interest Margin (NIM) 1.37% 1.36% 1.44% 1.40% 1.38% 1.24% TCR 14.54% 15.79% 16.25% 18.23% 17.43% 18.52% Net profits impacted by LPP, balance sheet tax and lower NII Increased capitalisation due to larger share of residential low risk loans Cost of Risk LLP 0.26% 0.20% 0.19% 0.19% 0.13% 0.32% - ROE Return on Equity (gross) 3.62% 3.46% 5.85% 4.95% 4.66% 0.70% - ROA Return on Assets 0.31% 0.30% 0.49% 0.44% 0.41% 0.07% (gross) 1) total income (defined as net interest income + net fee and commission income + net trading income + other operating income - other operating expenses) 2) total cost (overhead costs + amortisation and depreciation) Source: IFRS Financial Statements of mBank Hipoteczny m mBank Hipoteczny Covered bonds Cover Pool Polish Economy Real Estate Market 19 Legislation
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