Bank Polska Kasa Opieki Spółka Akcyjna (“the Bank") informs that in the consolidated financial results of the Bank’s Group (“the Group”) for the fourth quarter of 2024 will be included creation of a provision for legal risk of foreign currency mortgage loans in CHF in the amount of PLN 370 million (the amount of impact on the gross and net financial result), which results mainly from the update of the forecast of the future inflow of lawsuits from borrowers. The Group recognized also the deferred tax asset in the amount of PLN 103 million, which results from the expected invalidations of foreign currency mortgage loans in CHF.

In addition, the Group informs about a change in the presentation of interest accrued and recognized in the gross carrying amount of purchased or originated credit impaired assets in the consolidated financial statements. Previously the Group recognized contractual interest in the gross carrying amount, appropriately taking into account such accrued interest in the calculation of expected credit losses in the statement of financial position. After introducing the change in the presentation, the Group recognizes in the gross carrying amount interest accrued on the carrying amount, adjusted for the original credit risk assessment of the exposure at the time of initial recognition. The change results in a decrease in the value of the NPL portfolio by approx. PLN 0.8 billion, without affecting the level of consolidated equity and consolidated results of the Group.

Detailed information on the above events will be presented in the consolidated financial statements of the Group for the year ended on 31 December 2024, which are planned to be published on 27 February 2025 in accordance with the Bank’s report No. 48/2024 dated 20 December 2024.

Legal basis: Legal grounds: Art. 17 of (1) MAR – inside information