Interim report
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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF THE BANK OCHRONY ŚRODOWISKA GROUP AND CONDENSED INTERIM FINANCIAL STATEMENTS OF BANK OCHRONY ŚRODOWISKA S.A. FOR THE SIX MONTHS ENDED 30 JUNE 2025 Warsaw, August 2025
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 1 Contents I. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF THE BOŚ GROUP ...................................................5 Interim consolidated statement of profit or loss of the BOŚ Group ......................................................................................................5 Interim consolidated statement of comprehensive income of the BOŚ Group .......................................................................... 6 Interim consolidated statement of financial position of the BOŚ Group .......................................................................................... 7 Interim consolidated statement of changes in equity of the BOŚ Group ........................................................................................ 9 Interim consolidated statement of cash flows of the BOŚ Group ......................................................................................................... 11 Notes to the condensed interim consolidated financial statements ................................................................................................. 13 1. General information – Bank Ochrony Środowiska S.A. and the Bank Ochrony Środowiska Group ....................... 13 1.1. Bank Ochrony Środowiska S.A. ................................................................................................................................................................... 13 1.2. Shareholding structure of Bank Ochrony Środowiska S.A. ..................................................................................................... 14 1.3. BOŚ Group – consolidated entities .......................................................................................................................................................... 15 1.4. Effect of changes in the entity’s structure in the six months ended 30 June 2025, including changes resulting from business combinations, acquisition or disposal of subsidiaries, long-term investments, restructuring or discontinuation of business.................................................................................................................................... 15 1.5. Authorisation of the financial statements .......................................................................................................................................... 15 1.6. Seasonal or cyclical nature of the business in the reporting period ................................................................................. 15 2. Significant events in the six months ended 30 June 2025 ................................................................................................................. 16 2.1. General Meeting of Bank Ochrony Środowiska S.A. ................................................................................................................................ 16 2.2. Allocation of the Bank’s net profit for 2024 ................................................................................................................................................... 16 2.3. Changes in the composition of the Management Board and Supervisory Board of BOŚ S.A. .................................. 16 2.4. Annual contribution to BFG’s resolution fund in 2025 .............................................................................................................. 18 3. Going concern .................................................................................................................................................................................................................. 18 4. Statement of accounting policies ........................................................................................................................................................................ 19 4.1. Reporting period and comparative data ............................................................................................................................................. 19 4.2. Compliance with International Financial Reporting Standards .......................................................................................... 19 4.3. Entities covered and reporting currency ............................................................................................................................................ 20 4.4. Standards, interpretations and amendments to standards first applied in 2025 ................................................... 20 4.5. Standards, interpretations and amendments thereto issued and endorsed by the European Union, which are not yet effective and have not been adopted early by the BOŚ Group ................................................. 20 4.6. Standards, interpretations and amendments thereto issued but not yet endorsed by the European Union, which have not been adopted early by the BOŚ Group ........................................................................................... 21 4.7. Benchmark reform ............................................................................................................................................................................................ 22 5. Corrections of prior period errors ....................................................................................................................................................................... 24 6. Significant estimates and judgments ............................................................................................................................................................. 24 7. Type and amounts of non-recurring items affecting the assets, equity and liabilities, net profit/loss or cash flows, which are unusual due to their type, size or frequency ........................................................................................................ 25 8. Legal risk associated with foreign currency-linked residential mortgage loans ................................................................ 26 9. Legal and administrative proceedings............................................................................................................................................................ 29 10. Segment reporting ........................................................................................................................................................................................................ 31 Notes to the condensed interim consolidated statement of profit or loss .................................................................................... 36 11. Net interest income ...................................................................................................................................................................................................... 36
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 2 12. Net fee and commission income ........................................................................................................................................................................38 13. Dividend income ............................................................................................................................................................................................................38 14. Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) ....................................................................................................................................................................................................................... 39 15. Gain (loss) on investment securities .................................................................................................................................................................. 39 16. Other income and expenses ................................................................................................................................................................................. 40 17. Effect of legal risk of foreign currency mortgage loans ....................................................................................................................... 41 18. Net loss allowances ...................................................................................................................................................................................................... 42 19. Administrative expenses .......................................................................................................................................................................................... 43 20. Income tax expense .................................................................................................................................................................................................... 44 21. Earnings per share ....................................................................................................................................................................................................... 45 Notes to the condensed interim consolidated statement of financial position ........................................................................ 46 22. Amounts due from banks ....................................................................................................................................................................................... 46 23. Financial assets and liabilities held for trading ......................................................................................................................................... 47 24. Investment securities ................................................................................................................................................................................................. 48 25. Amounts due from clients ...................................................................................................................................................................................... 49 26. Amounts due to clients .............................................................................................................................................................................................. 53 27. Liabilities arising from issue of securities ...................................................................................................................................................... 53 28. Subordinated liabilities.............................................................................................................................................................................................. 54 29. Provisions ............................................................................................................................................................................................................................. 55 30. Deferred income tax .................................................................................................................................................................................................... 59 31. Other liabilities .................................................................................................................................................................................................................. 61 32. Common equity .............................................................................................................................................................................................................. 62 33. Issue, redemption and repayment of debt and equity securities ................................................................................................ 63 34. Contingent assets and liabilities ......................................................................................................................................................................... 64 35. Hedge accounting ......................................................................................................................................................................................................... 65 35.1. Hedge accounting policies ........................................................................................................................................................................... 65 35.2. Cash flow hedge accounting ...................................................................................................................................................................... 65 35.3. Fair value hedge accounting ...................................................................................................................................................................... 65 36. Fair value of financial assets and liabilities ...................................................................................................................................................67 37. Classification of financial instruments measured at fair value based on the fair value measurement method applied .............................................................................................................................................................................................................. 69 Notes to the statement of cash flows ...................................................................................................................................................................... 73 38. Cash and cash equivalents ...................................................................................................................................................................................... 73 39. Related-party transactions ...................................................................................................................................................................................... 73 39.1. Key management personnel ..................................................................................................................................................................... 74 39.1.1. Loans to and deposits from members of the Management Board and the Supervisory Board of the Group.................................................................................................................................................................................................................. 74 39.1.2. Remuneration of the key management personnel of the Bank ............................................................................... 74 39.2. Executive compensation policy at the Bank .................................................................................................................................... 75
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 3 40. The variable remuneration for 2024 has not yet been determined or awarded. Dividends paid (aggregate or per share), separately for ordinary shares and other shares ....................................................................................................... 75 41. Risk and capital management .............................................................................................................................................................................. 75 41.1. Credit risk .................................................................................................................................................................................................................. 75 41.1.1. Amounts due from banks .............................................................................................................................................................................76 41.1.2. Amounts due from clients ............................................................................................................................................................................ 77 41.1.3. Classification of amounts due from clients by measurement category, by segment: ....................................... 78 41.1.4. Concentration of exposures to industries and geographical markets, with assessment of the concentration risk .......................................................................................................................................................................................................... 81 41.1.5. Debt securities ......................................................................................................................................................................................................83 41.2. Financial risk in the banking book and the trading book, and risk limits ................................................................... 84 41.2.1. Liquidity risk .......................................................................................................................................................................................................... 84 41.2.2. Interest rate risk .................................................................................................................................................................................................. 86 41.2.3. Currency risk.......................................................................................................................................................................................................... 88 41.2.4. Other market risks ............................................................................................................................................................................................. 89 41.3. Non-financial risk ................................................................................................................................................................................................ 90 41.3.1. Operational risk ................................................................................................................................................................................................... 90 41.3.2. Compliance risk ................................................................................................................................................................................................... 90 41.4. Model risk .................................................................................................................................................................................................................. 91 41.5. ESG risk ....................................................................................................................................................................................................................... 91 41.6. Capital adequacy ................................................................................................................................................................................................. 92 41.6.1. The BOŚ Group's capital adequacy measures were as follows: ........................................................................................... 93 42. Prudential consolidation .......................................................................................................................................................................................... 94 42.1. Basis for preparing consolidated financial data taking into account the principles set out in Regulation 575/2013 on prudential requirements for credit institutions and investment firms (prudential consolidation) ............................................................................................................................................................................. 94 42.2. Prudentially consolidated statement of profit or loss ................................................................................................................ 95 42.3. Prudentially consolidated statement of financial position .................................................................................................... 96 43. Additional information .............................................................................................................................................................................................. 98 44. Events after the reporting date ........................................................................................................................................................................... 98 II. CONDENSED INTERIM FINANCIAL STATEMENTS OF THE BANK ..................................................................................................... 100 Interim statement of profit or loss of the Bank ............................................................................................................................................. 100 Interim statement of comprehensive income of the Bank ..................................................................................................................... 101 Interim statement of financial position of the Bank ................................................................................................................................... 102 Interim statement of changes in equity of the Bank ................................................................................................................................ 104 Interim statement of cash flows of the Bank ...................................................................................................................................................106 1. General information on Bank Ochrony Środowiska S.A. .................................................................................................................. 108 1.1. Authorisation of the financial statements ....................................................................................................................................... 108 1.2. Reporting period and comparative data .......................................................................................................................................... 108 2. Going concern ................................................................................................................................................................................................................109 3. Corrections of prior period errors ....................................................................................................................................................................... 110
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 4 4. Net interest income ...................................................................................................................................................................................................... 111 5. Net fee and commission income ....................................................................................................................................................................... 113 6. Dividend income ........................................................................................................................................................................................................... 113 7. Net loss allowances ...................................................................................................................................................................................................... 114 8. Earnings per share ....................................................................................................................................................................................................... 114 9. Amounts due from clients ...................................................................................................................................................................................... 115 10. Provisions ............................................................................................................................................................................................................................ 119 11. Other liabilities ................................................................................................................................................................................................................ 121 12. Contingent assets and liabilities ......................................................................................................................................................................... 121 13. Related-party transactions .................................................................................................................................................................................... 123 14. Seasonal or cyclical nature of the business in the reporting period ......................................................................................... 126 15. Type and amounts of non-recurring items affecting the assets, equity and liabilities, net profit/loss or cash flows, which are unusual due to their type, size or frequency ...................................................................................................... 126 16. Type and amount of changes to estimates reported in previous interim periods of the current financial year or in previous financial years, where they have a material effect on the current interim period .............. 126 17. Issue, redemption and repayment of debt and equity securities .............................................................................................. 126 18. Dividends paid (aggregate or per share), separately for ordinary shares and other shares ..................................... 126 19. Capital adequacy .......................................................................................................................................................................................................... 126 19.1. The Bank's capital adequacy levels ...................................................................................................................................................... 127 20. Additional information ............................................................................................................................................................................................. 128 21. Events after the reporting date .......................................................................................................................................................................... 128
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 5 I. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF THE BOŚ GROUP Interim consolidated statement of profit or loss of the BOŚ Group Continuing operations Note for 3 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2025 unaudited for 3 months ended 30 Jun 2024 unaudited for 6 months ended 30 Jun 2024 unaudited Interest and similar income, including: 370,156 740,795 350,562 713,931 financial assets measured at amortised cost 242,626 482,752 261,823 533,422 assets measured at fair value through other comprehensive income 122,455 247,646 83,153 168,956 financial assets measured at fair value through profit or loss 5,075 10,397 5,586 11,553 Interest expense and similar charges, including: - 168,367 - 336,801 - 150,824 - 311,511 financial liabilities measured at amortised cost - 168,367 - 336,801 - 150,824 - 311,511 Net interest income 11 201,789 403,994 199,738 402,420 Fee and commission income 45,784 90,803 40,835 84,343 Fee and commission expense - 13,342 - 25,711 - 11,003 - 20,683 Net fee and commission income 12 32,442 65,092 29,832 63,660 Dividend income 13 11,778 11,780 120 12,185 Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) 14 26,855 41,581 3,984 24,114 Gain (loss) on investment securities 15 21,426 21,426 29 29 Gain (loss) on hedge accounting - 419 - 986 - 651 - 962 Gain (loss) on foreign exchange transactions 2,013 2,062 6,976 6,357 Gain (loss) on derecognition of financial instruments 200 315 106 309 Other income 16 8,342 15,997 11,241 21,837 Other expenses 16 - 21,841 - 41,991 - 33,275 - 46,063 Effect of legal risk of foreign currency mortgage loans 17 - 27,357 - 59,484 - 57,083 - 107,523 Net loss allowances 18 - 10,747 - 27,824 - 10,668 3,468 Administrative expenses 19 - 156,257 - 324,713 - 138,997 - 291,020 Profit before tax 88,224 107,249 11,352 88,811 Income tax expense 20 - 20,345 - 27,528 - 7,004 - 38,580 Net profit 67,879 79,721 4,348 50,231 Earnings per share attributable to owners of the parent during period (PLN) 21 67,879 79,721 4,348 50,231 basic 0.86 0.54 diluted 0.86 0.54 The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 6 Interim consolidated statement of comprehensive income of the BOŚ Group Continuing operations for 3 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2025 unaudited for 3 months ended 30 Jun 2024 unaudited for 6 months ended 30 Jun 2024 unaudited Net profit 67,879 79,721 4,348 50,231 Items that may be reclassified to profit or loss: 13,294 32,598 1,569 - 3,160 Fair value of debt financial instruments measured at fair value through other comprehensive income, gross 16,412 40,244 1,937 - 3,901 Deferred tax - 3,118 - 7,646 - 368 741 Items that will not be reclassified to profit or loss: - 3,259 - 3,259 1 2 Fair value of equity instruments measured at fair value through other comprehensive income, gross - 4,023 - 4,023 1 2 Deferred tax 764 764 - - Other comprehensive income 10,035 29,339 1,570 - 3,158 Total comprehensive income 77,914 109,060 5,918 47,073 of which attributable to owners of parent 77,914 109,060 5,918 47,073 The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 7 Interim consolidated statement of financial position of the BOŚ Group Assets Note 30 Jun 2025 unaudited 31 Dec 2024 Cash and cash equivalents 38 5,263,736 4,302,437 Amounts due from banks 22 193,571 14,397 Financial assets held for trading, including: 23 119,033 145,732 equity securities 20,978 16,568 debt securities 861 18,809 derivative instruments 97,194 110,355 Derivative hedging instruments 1,059 8,693 Investment securities: 24 6,977,458 7,351,554 equity securities measured at fair value through other comprehensive income 108,715 112,743 debt securities measured at fair value through other comprehensive income 4,948,374 5,268,798 debt securities measured at amortised cost 1,790,167 1,843,978 debt securities measured at fair value through profit or loss 130,202 126,035 Amounts due from clients, including: 25 10,074,623 10,104,635 measured at amortised cost 10,074,616 10,104,603 measured at fair value through profit or loss 7 32 Intangible assets 95,089 106,839 Property, plant and equipment 81,663 91,438 Right of use – leases 51,608 48,684 Tax assets: 134,702 148,318 current 1,885 89 deferred 30 132,817 148,229 Other assets 488,128 395,768 Total assets 23,480,670 22,718,495 The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 8 Liabilities Note 30 Jun 2025 unaudited 31 Dec 2024 Amounts due to central bank and other banks 165,237 244,519 Financial liabilities held for trading, including: 23 38,951 58,175 equity securities 1,470 1,032 derivative instruments 37,481 57,143 Amounts due to clients 26 19,773,919 19,100,807 Liabilities arising from issue of securities 102,709 199,762 Subordinated liabilities 28 199,871 102,838 Provisions 29 357,393 362,978 Tax liabilities: 11,085 14,744 current 10,688 14,744 deferred 30 397 - Lease liabilities 47,154 45,351 Other liabilities 31 445,705 359,735 Total liabilities 21,142,024 20,488,909 Equity Note 30 Jun 2025 unaudited 31 Dec 2024 EQUITY ATTRIBUTABLE TO OWNERS OF PARENT Common equity: 32 1,461,036 1,461,036 Share capital 929,477 929,477 Treasury shares -1,292 -1,292 Share premium 532,851 532,851 Revaluation surplus 79,894 50,555 Retained earnings 797,716 717,995 Total equity 2,338,646 2,229,586 Total equity and liabilities 23,480,670 22,718,495 The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 9 Interim consolidated statement of changes in equity of the BOŚ Group Equity attributable to owners of the Bank Total equity Common equity Revaluation surplus Retained earnings Share capital Treasury shares Share premium Other statutory reserve funds Other capital reserves General risk fund Undistributed profit (loss) As at 1 Jan 2025 929,477 - 1,292 532,851 50,555 694,252 23,605 48,302 - 48,164 2,229,586 Net profit - - - - - - - 79,721 79,721 Other comprehensive income - - - 29,339 - - - - 29,339 Total comprehensive income - - - 29,339 - - - 79,721 109,060 Profit distribution, including: - - - - 97,386 - - - 97,386 - Transfer of net profit to reserves - - - - 97,386 - - - 97,386 - As at 30 Jun 2025 unaudited 929,477 - 1,292 532,851 79,894 791,638 23,605 48,302 - 65,829 2,338,646
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 10 Equity attributable to owners of the Bank Total equity Common equity Revaluation surplus Retained earnings Share capital Treasur y shares Share premium Other statutory reserve funds Other capital reserves General risk fund Undistributed profit (loss) As at 1 Jan 2024 929,477 - 1,292 532,851 49,245 599,609 23,605 48,302 - 33,177 2,148,620 Net profit - - - - - - - 79,656 79,656 Other comprehensive income - - - 1,310 - - - - 1,310 Total comprehensive income - - - 1,310 - - - 79,656 80,966 Profit distribution, including: - - - - 94,643 - - - 94,643 - Transfer of net profit to reserves - - - - 94,643 - - - 94,643 - As at 31 Dec 2024 929,477 - 1,292 532,851 50,555 694,252 23,605 48,302 - 48,164 2,229,586 As at 1 Jan 2024 929,477 - 1,292 532,851 49,245 599,609 23,605 48,302 - 33,177 2,148,620 Net profit - - - - - - - 50,231 50,231 Other comprehensive income - - - - 3,158 - - - - - 3,158 Total comprehensive income - - - - 3,158 - - - 50,231 47,073 Profit distribution, including: - - - - 94,643 - - - 94,643 - Transfer of net profit to reserves - - - - 94,643 - - - 94,643 - As at 30 Jun 2024 unaudited 929,477 - 1,292 532,851 46,087 694,252 23,605 48,302 - 77,589 2,195,693 There were no non-controlling interests in the six months ended 30 June 2025 or in 2024. The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 11 Interim consolidated statement of cash flows of the BOŚ Group Indirect method for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 107,249 88,811 Total adjustments: 723,935 -1,379,148 Amortisation and depreciation 40,706 38,580 Interest income on investing activities -110,374 -129,796 Loss on investing activities -114 - Interest income on financing activities 13,862 17,418 Dividends received: -4,602 -6,157 on securities held for trading 129 128 on investment securities 4,473 6,029 Change in: amounts due from banks -179,174 -1,812 assets on securities held for trading 13,538 -29,033 assets and liabilities from measurement of derivative and hedging financial instruments 1,133 7,645 investment securities 356,506 -302,743 amounts due from clients 30,012 -24,007 other assets and income tax -94,552 99,744 amounts due to central bank and other banks -79,282 207,111 amounts due to clients 673,112 -1,202,200 liabilities arising from securities held for trading 438 -766 provisions -5,585 44,308 other liabilities and income tax 88,534 -81,771 Income tax paid -24,825 -21,826 Net cash flows from (used in) operating activities 831,184 -1,290,337
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 12 CASH FLOWS FROM INVESTING ACTIVITIES Inflows 164,303 627,509 Cash receipts from sale of property, plant and equipment 118 - Cash receipts from redemption of securities measured at amortised cost 66,396 490,000 Interest received on securities measured at amortised cost 97,789 137,509 Outflows -9,082 -28,653 Payments for acquisition of securities measured at amortised cost - -11,679 Payments for acquisition of intangible assets -7,460 -12,086 Payments for acquisition of property, plant and equipment -1,622 -4,888 Net cash flows from (used in) investing activities 155,221 598,856 CASH FLOWS FROM FINANCING ACTIVITIES Inflows - - Outflows -25,106 -28,941 Interest paid on bonds issued by the Group, including: -12,596 -17,026 subordinated bonds -4,389 -17,026 Lease payments, IFRS 16 -11,531 -10,279 Lease interest paid -979 -1,636 Net cash flows from (used in) financing activities -25,106 -28,941 TOTAL NET CASH FLOWS 961,299 -720,422 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,302,437 4,024,053 CASH AND CASH EQUIVALENTS AT END OF PERIOD 5,263,736 3,303,631 Restricted cash and cash equivalents 659,535 584,586 The notes presented on the following pages are an integral part of these financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 13 Notes to the condensed interim consolidated financial statements 1. General information – Bank Ochrony Środowiska S.A. and the Bank Ochrony Środowiska Group 1.1. Bank Ochrony Środowiska S.A. Name of the reporting entity or other identification data Bank Ochrony Środowiska Group Explanation of changes to the name of the reporting entity or other identification data since the end of the previous reporting period - Registered office ul. Żelazna 32, 00-832 Warsaw Legal form Joint Stock Company (spółka akcyjna) Country of registration Poland Address 00-832 Warsaw, ul. Żelazna 32 Principal place of business Poland Principal business activity The Bank's primary objective is to effectively manage the shareholders’ equity and clients’ funds, ensuring the profitability of its business and the security of the funds entrusted. The Bank's business consists in banking activities, including accumulating funds, granting credits, effecting cash settlements, performing other banking services as well as providing financial consulting and advisory services. Name of the parent Bank Ochrony Środowiska S.A. Name of the ultimate parent of the group Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (National Fund for Environmental Protection and Water Management) The Bank Ochrony Środowiska Group (the “BOŚ Group” or the “Group”) is a group of entities linked through equity in which Bank Ochrony Środowiska S.A. is the parent. For a list of subordinated entities, see Note 1.3. Bank Ochrony Środowiska S.A. (the “Bank”, “BOŚ S.A.”, the “Company”), with its registered office at ul. Żelazna 32 in Warsaw, was established by Decision No. 42 of the Governor of the National Bank of Poland 15 September 1990, and a notarial deed of incorporation of 28 September 1990. The Bank is entered in the National Court Register of the District Court for the Capital City of Warsaw, 12th Commercial Division, under No. KRS 0000015525, and has Industry Identification Number (REGON) 006239498. According to the Polish Classification of Business Activities (PKD), the Bank's activities are classified as PKD 6419Z.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 14 The Bank was established for an indefinite period. The Bank's mission: Providing comprehensive support for the green transition. The Bank pursues its mission mainly by: • providing banking services to retail and institutional clients, in particular those implementing environmentally- friendly projects or operating in the environmental protection and water management sectors, and to people who value eco-friendly lifestyles, • participating in the distribution of funds for environmental protection projects and sustainable development in Poland. Since 24 January 1997 the Bank shares have been traded on the Warsaw Stock Exchange and listed in the finance/banking segment of the market. 1.2. Shareholding structure of Bank Ochrony Środowiska S.A. Shareholders holding directly and indirectly 5% or more of total voting rights in the Bank as at 30 June 2025: Shareholder 30 Jun 2025 unaudited 31 Dec 2024 Number of voting rights (shares) % voting interest (ownership interest) Number of voting rights (shares) % voting interest (ownership interest) Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (National Fund for Environmental Protection and Water Management) 53,951,960 58.05 53,951,960 58.05 PFR Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych 8,000,000 8.61 8,000,000 8.61 Dyrekcja Generalna Lasów Państwowych (Directorate General of State Forests) 5,148,000 5.54 5,148,000 5.54
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 15 1.3. BOŚ Group – consolidated entities Consolidated subsidiaries of the Group and the consolidation method as at 30 June 2025: No. Subordinated entities Registered office % equity interest as at % voting interest as at Consolidation method Direct subsidiaries 1. Dom Maklerski BOŚ S.A. Warsaw 100% 100% Full consolidation 2. BOŚ Leasing S.A.* Warsaw 100% 100% Full consolidation Indirect subsidiary (subsidiary of BOŚ Leasing S.A.) 1. MS Wind sp. z o. o. Warsaw 100% 100% Full consolidation * On 21 May 2025, the company's name was changed from BOŚ Leasing - EKO Profit Spółka Akcyjna to BOŚ Leasing Spółka Akcyjna. Dom Maklerski BOŚ S.A. – a direct subsidiary operating on the capital market, providing mainly brokerage services. BOŚ Leasing S.A. – a direct subsidiary engaged in lease activities financing environmental protection projects, and a provider of financial and advisory services complementary to the Bank's service offering. MS Wind Sp. z o.o. – an indirect subsidiary (a direct subsidiary of BOŚ Leasing S.A.) engaged in the execution of a wind farm project. The composition of the BOŚ Group, the number of shares held in subsidiaries and the consolidation method did not change relative to 31 December 2024. 1.4. Effect of changes in the entity’s structure in the six months ended 30 June 2025, including changes resulting from business combinations, acquisition or disposal of subsidiaries, long-term investments, restructuring or discontinuation of business In the six months ended 30 June 2025, no such events took place at the BOŚ Group. 1.5. Authorisation of the financial statements These interim consolidated financial statements of the BOŚ Group were authorised by the Management Board of the parent on 13 August 2025 for issue on the Warsaw Stock Exchange on 14 August 2025. The consolidated full -year financial statements of the Bank Ochrony Środowiska Group for the year ended 31 December 2024 were approved by the Bank’s General Meeting on 17 June 2025. 1.6. Seasonal or cyclical nature of the business in the reporting period The BOŚ Group’s business does not involve any significant events or factors that would be subject to seasonal or cyclical variations. The performance of Dom Maklerski BOŚ S.A. (BOŚ Brokerage House) is influenced by conditions on the stock market.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 16 2. Significant events in the six months ended 30 June 2025 2.1. General Meeting of Bank Ochrony Środowiska S.A. On 17 June 2025, the Bank’s General Meeting passed resolutions to: • approve the full-year financial statements of the Bank and the Bank Ochrony Środowiska Group for the year ended 31 December 2024, • approve the Directors’ Report on the operations of the Bank Ochrony Środowiska Group in 2024, prepared jointly with the Directors’ Report on the operations of BOŚ S.A., • allocate the Bank’s net profit for 2024, • grant discharge from liability to members of the Management Board of Bank Ochrony Środowiska S.A. for 2024, • approve the report on the activities of the Supervisory Board of Bank Ochrony Środowiska S.A for 2024, • give an assessment of the adequacy of internal regulations governing the operation of the Supervisory Board of Bank Ochrony Środowiska S.A. and on the effectiveness of its activities in 2024, • grant discharge from liability to members of the Supervisory Board of Bank Ochrony Środowiska S.A. for 2024, including a periodic assessment of the suitability of individual members of the Supervisory Board, • re-assess the individual suitability of a Member of the Supervisory Board of Bank Ochrony Środowiska S.A., • give an opinion on the Report on the Remuneration of Members of the Supervisory Board and the Management Board of Bank Ochrony Środowiska S.A. for 2024, submitted by the Supervisory Board of Bank Ochrony Środowiska S.A., • adopt the Policy on the Assessment of Suitability of Candidates for the Supervisory Board, Members of the Supervisory Board and the Supervisory Board of BOŚ S.A., • amend the Articles of Association of Bank Ochrony Środowiska S.A. and authorise the Supervisory Board to draw up the consolidated text of the Articles of Association. 2.2. Allocation of the Bank’s net profit for 2024 On 17 June 2025, the Annual General Meeting of Bank Ochrony Środowiska S.A. resolved to allocate the Bank’s entire net profit for the period 1 January − 31 December 2024, amounting to PLN 73,447,748.56, to statutory reserve funds. 2.3. Changes in the composition of the Management Board and Supervisory Board of BOŚ S.A. Management Board As at 1 January 2025, the composition of the Management Board was as follows: • Bartosz Kublik – President of the Management Board, • Piotr Kubaty – Vice President of the Management Board, • Kamil Kuźmiński – Vice President of the Management Board, • Krzysztof Łabowski – Vice President of the Management Board, • Michał Należyty – Vice President of the Management Board.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 17 Changes in the composition of the Management Board in the six months ended 30 June 2025: • On 7 March 2025, the Polish Financial Supervision Authority approved the appointment of Piotr Kubaty as a Member of the Management Board responsible for supervising material banking risk. This decision gave effect to Resolution No. 116/2024 of the Bank's S upervisory Board of 26 September 2024, appointing Piotr Kubaty as Vice President, First Deputy President of the Management Board of Bank Ochrony Środowiska S.A. As at 30 June 2025, the Bank’s Management Board consisted of: • Bartosz Kublik – President of the Management Board, • Piotr Kubaty – Vice President of the Management Board, First Deputy President of the Management Board, • Kamil Kuźmiński – Vice President of the Management Board, • Krzysztof Łabowski – Vice President of the Management Board, • Michał Należyty – Vice President of the Management Board. Supervisory Board As at 1 January 2025, the composition of the Supervisory Board was as follows: • Adam Ruciński – Chair, • Artur Stefański – Deputy Chair, • Marzenna Sendecka – Secretary, • Wojciech Krawczyk – Member, • Marcin Liberadzki – Member, • Marcin Likierski – Member, • Władysław Mańkut – Member, • Aleksandra Świderska – Member, • Piotr Wybieralski – Member. Changes in the composition of the Supervisory Board in the six months ended 30 June 2025: • On 11 March 2025, the Extraordinary General Meeting of BOŚ S.A. removed Wojciech Krawczyk from the Supervisory Board and appointed Jan Banasiński to the Supervisory Board. As at 30 June 2025, the composition of the Supervisory Board was as follows: • Adam Ruciński – Chair, • Artur Stefański – Deputy Chair, • Marzenna Sendecka – Secretary, • Jan Banasiński - Member, • Marcin Liberadzki – Member, • Marcin Likierski – Member, • Władysław Mańkut – Member, • Aleksandra Świderska – Member, • Piotr Wybieralski – Member. Until the date of this report, the composition of the Supervisory Board did not change.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 18 2.4. Annual contribution to BFG’s resolution fund in 2025 On 26 March 2025, the Bank was notified by the Bank Guarantee Fund (BFG) that its annual contribution to the resolution fund for 2025, after adjustments to the 2023–2024 contributions, had been set at PLN 20,268 thousand. The amount of the annual contribution to the resolution fund for 2025 was charged to the Bank’s profit or loss for the three months ended 31 March 2025. 3. Going concern As a result of an accounting loss incurred in 2015, the Bank implemented a Recovery Programme pursuant to Article 142.1 of the Banking Law in the wording effective until 8 October 2016, in accordance with Article 381.4 of the Act on the Bank Guarantee Fund, Deposit Guarantee Scheme and Forced Restructuring of 10 June 2016. On 17 July 2020, the Bank received a decision of the Polish Financial Supervision Authority in connection with the administrative proceedings initiated ex officio by the Polish Financial Supervision Authority (PFSA) on 12 May 2020, whereby the Bank was ord ered to prepare a group recovery plan for Bank Ochrony Środowiska S.A. pursuant to Article 141n.1 of the Banking Law of 29 August 1997. On 20 July 2020, the Bank received the second decision of the PFSA in connection with the administrative proceedings ini tiated ex officio by the PFSA on 12 May 2020 to limit the scope of the group recovery plan to entities of the BOŚ Group (i.e. Bank Ochrony Środowiska S.A., Dom Maklerski BOŚ S.A., BOŚ Leasing EKO-Profit S.A. and MS Wind sp. z o.o.). The Bank prepared the Group Recovery Plan and submitted it to the PFSA in October 2020. In a letter dated 21 January 2021, in connection with the administrative proceedings to approve the Group Recovery Plan, the Polish Financial Supervision Authority inst ructed the Bank to supplement and amend the submitted Group Recovery Plan, with the audited financial data as at 31 December 2020 to be used as the point of reference. In accordance with the PFSA's request, BOŚ corrected the Group Recovery Plan, submitted it for approval, and on 17 December 2021 it was approved by the PFSA. The approval of the Plan by the PFSA marked the discharge of the remedial obligations under the Recovery Programme. On 31 December 2021, the Bank decided to launch the Group Recovery Plan approved by the PFSA. The purpose of the corrective measures provided for in the Plan is to achieve sustainable profitability of the Bank. Notwithstanding the fact that the Group Recovery Plan is being implemented, the Bank is obliged to update it on a regular basis. As required by Article 141m of the Banking Law, the Bank updates the Group Recovery Plan at least annually. On 26 January 2024, the PFSA approved the updated Group Recovery Plan of BOŚ S.A. In the period 1 January – 30 June 2025, the Bank continued its implementation. Following the close of the 2024 financial year, in January 2025, the Bank began preparing a new update as part of the 2025 planning cycle. The updated Group Recovery Plan was submitted to the PFSA on 30 April 2025. As at the date of issue of these financial statements, no response had been received. As at 30 June 2025, the indicator defined as the ratio of the gross carrying amount of Bucket 3 loans for the current portfolio to the gross carrying amount of total loans (NPLn) for the ‘new’ portfolio (loans originated after 2020) had reached a critical level on both separate and consolidated basis. All other indicators remained within safe thresholds. Failure to maintain the required level of the ratio of the gross carrying amount of Bucket 3 loans for the current portfolio to the gross carrying amount of total loans (NPLn) for the ‘new’ portfolio was not material to the going concern assumption. Following a review, certain exposures were reclassified to Bucket 3. The Bank is taking steps to improve the ratio, which include selling debt, increasing low-risk lending volumes, and enhancing the efficiency
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 19 and effectiveness of debt collection processes through system upgrades, such as planned implementation of a module to track limitation periods and due dates. Going forward, a reduction in the NPL ratio may be achieved either through the sale of non -performing loan portfolios or through a material increase in loan origination volumes, which would raise the loan balance and improve the portfolio’s quality (e.g. b y broadening the business model and increasing exposure in the low-risk local government sector). The Bank’s current efforts are focused on increasing loan origination volumes. However, the impact of these measures will only become visible in subsequent quarters of 2025. In the six months ended 30 June 2025, the Group reported a net profit of PLN 79,721 thousand. The BOŚ Group maintains its capital adequacy ratios above the levels recommended by the Polish Financial Supervision Authority (see Note 41.6 for details). The Bank's liquidity is adequate and exceeds the regulatory requirements (see Note 41.2.1 for details). The armed conflict in Ukraine did not have a significant impact on the liquidity position and capital adequacy of the Bank. The Bank maintained its full operational capacity throughout the period. Taking into consideration the factors described above, there are no circumstances that would indicate a threat to the Bank's ability to continue as a going concern for at least 12 months after the reporting date as a result of voluntary or compulsory discontinuation or limitation of its current operations. 4. Statement of accounting policies 4.1. Reporting period and comparative data The condensed interim consolidated financial statements of the BOŚ Group include: • The interim consolidated statement of profit or loss for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024, as well as data for the three months ended 30 June 2025 and comparative data for the three months ended 30 June 2024; • The interim consolidated statement of comprehensive income for the six months ended 30 June 2025, comparative data for the six months ended 30 June 2024, data for the three months ended 30 June 2025 and comparative data for the three months ended 30 June 2024; • The interim consolidated statement of financial position as at 30 June 2025 and comparative data as at 31 December 2024; • The interim consolidated statement of changes in equity for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024 and for the 12 months ended 31 December 2024; • The interim consolidated statement of cash flows for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024; • Notes to the financial statements. 4.2. Compliance with International Financial Reporting Standards These condensed interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and other International Financial Reporting Standards (IFRSs) as endorsed by the European Union (EU), effective as at the reporting date, i.e. 30 June 2025. IFRSs comprise the standards and interpretations adopted by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC). These condensed interim consolidated financial statements of the BOŚ Group and the condensed interim financial statements of the Bank for the six months ended 30 June 2025 do not include all the disclosures required to be included in the full -year financial statements and should be read in conjunction with the BOŚ Group’s and the Bank’s full-year financial statements for the financial year ended 31 December 2024.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 20 These condensed interim consolidated financial statements of the BOŚ Group and the condensed interim financial statements of the Bank for the six months ended 30 June 2025 follow the same accounting policies as those used in the preparation of the full -year financial statements for the year ended 31 December 2024, approved by the Bank’s General Meeting on 17 June 2025, available on the Bank’s website (www.bosbank.pl). 4.3. Entities covered and reporting currency These condensed interim financial statements of the BOŚ Group include data relating to the Bank and its subsidiaries. Dom Maklerski BOŚ S.A., BOŚ Leasing S.A. and MS Wind Sp. z o.o. prepare their financial statements in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU). These condensed interim financial statements have been prepared in the Polish złoty (PLN), rounded to PLN thousand. 4.4. Standards, interpretations and amendments to standards first applied in 2025 IFRS Amendment Effective as of Impact on the Group Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability Assessment whether a currency is exchangeable into another currency and, when it is not, determination of the exchange rate to use and the disclosures to provide. 1 January 2025 / 12 November 2024 The amendment had no material effect on these financial statements. 4.5. Standards, interpretations and amendments thereto issued and endorsed by the European Union, which are not yet effective and have not been adopted early by the BOŚ Group IFRS Amendment Date of entry into force in the EU / endorsement by the EU Impact on the Bank Annual Improvements to IFRS Standards (vol. 11) – amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, IAS 7 Statement of Cash Flows • Amendment to IFRS 1 relates to hedge accounting by a first -time adopter and eliminates inconsistencies with IFRS 9. • Amendments to IFRS 7 cover gain or loss on derecognition, disclosure of deferred difference between fair value and transaction price, guidance on implementing IFRS7 and credit risk disclosures; credit risk disclosures (implementation guidance only). • Amendments to IFRS 9 address derecognition of lease liabilities by the lessee and transaction price, and remove inconsistencies in the definition of ‘transaction price’ compared with IFRS 15. • Amendments to IFRS 10 clarify the determination of a ‘de facto agent’ and remove inconsistencies. • Amendments to IAS 7 address inconsistencies in applying paragraph 37 of IAS 7, which arose from the use of the term ‘cost method’, a term that is no longer defined in the IFRS. 1 January 2026 / 9 July 2025 The amendment will have no material effect on the financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 21 Contracts Referencing Nature-dependent Electricity (amendments to IFRS 9 and IFRS 7) The amendments only apply to contracts that expose an entity to variability in an underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions (such as weather). The amendments are designed to ensure fair presentation of such contracts in financial statements by: - amending the requirements relating to own -use contracts, - amending the hedge accounting requirements in IFRS 9 to allow contracts for electricity generated from nature -dependent renewable energy sources to qualify as hedging instruments, subject to specified conditions, - introducing additional disclosure requirements in IFRS 7 to enable investors to understand the effects of such contracts on financial performance and future cash flows. 1 January 2026 / 30 June 2025 The amendment will have no material effect on the consolidated / separate financial statements. Amendments to the guidance for classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7) The amendments clarify when a financial liability should be derecognised (on the ‘settlement date’), permit an entity to select accounting treatment for financial liabilities settled through electronic transfer, classify financial assets with ESG-linked features, clarify provisions concerning loans with non-recourse features and contractually linked instruments, require additional disclosures for conditional financial instruments and equity instruments designated at fair value through other comprehensive income. 1 January 2026 / 27 May 2025 The amendment will have no material effect on the consolidated / separate financial statements. 4.6. Standards, interpretations and amendments thereto issued but not yet endorsed by the European Union, which have not been adopted early by the BOŚ Group IFRS Amendment Date of entry into force in the EU / endorsement by the EU Impact on the Bank IFRS 18 Presentation and Disclosure in Financial Statements New presentation requirements for the statement of profit or loss, including in relation to specified totals and subtotals, disclosure of management -defined performance measures, and new requirements for aggregation and disaggregation of financial information. 1 January 2027 The amendment will have an effect on the presentation of data in the statement of profit or loss and disclosures in the financial statements. IFRS 19 Subsidiaries without Public Accountability: Disclosures Reduced disclosures by subsidiaries classified as entities without public accountability when the entity has an ultimate or intermediate parent that produces consolidated financial statements in accordance with IFRSs. 1 January 2027 The amendment will have no material effect on the financial statements.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 22 4.7. Benchmark reform To align the Bank with the requirements arising from Regulation of the European Parliament and the Council (EU) 2016/1011 of 8 June 2016 and Regulation (EU) 596/2014 (OJ L 171 of 29 June 2016, as amended), referred to as the BMR Regulation, the Bank initiated the project ‘Implementation of the requirements of the BMR Regulation’ (“BMR Project”). The BMR Project involves the participation of rep resentatives from various organisational units responsible for product areas (such as retail and corporate), interest rate risk management, legal, accounting, and IT. WIBOR – current status Representatives of the Bank are actively engaged in the activities of the National Working Group on Benchmark Reform (NGR), which was established in July 2022. Apart from having a broad representation of financial institutions, the NGR Group also includes representatives from various entities and organisations. These include the Polish Financial Supervision Authority, the Ministry of Finance, the National Bank of Poland, the Bank Guarantee Fund, the Polish Bank Association and GPW Benchmark. The goal of the National Working Group is to prepare and facilitate the effective implementation of the Risk -Free Rate (RFR) reference index in the Polish financial market. Summary of developments: • In September 2022, the NGR Steering Committee announced WIRON as the replacement for WIBOR. • On 10 December 2024, the NGR Steering Committee revised its September 2022 decision and selected an index from the WIRF family as the target benchmark interest rate to replace WIBOR, thereby modifying its earlier choice of WIRON. • On 24 January 2025, the NGR Steering Committee decided to adopt the final name POLSTR (Polish Short Term Rate) for the proposed new index. • On 28 March 2025, the NGR Steering Committee approved the updated Roadmap for the replacement of WIBOR and WIBID, under which the calculation and publication of these benchmarks will be discontinued as of the end of 2027. • On 2 June 2025, GPW Benchmark S.A. commenced the calculation of the POLSTR Interest Rate Index and the family of POLSTR Compound Indices. • The NGR Steering Committee is in the process of reviewing and updating its recommendations, in particular standards for the use of the new POLSTR index in new banking, leasing, and factoring products and financial instruments, as well as standards for volu ntary conversion of legacy portfolios of contracts and instruments referencing WIBOR. Following the announcement of the updated NGR Roadmap and the new POLSTR benchmark, the BMR Project is being redefined, which includes: 1. reviewing the project team composition, 2. reviewing the BMR Project scope, 3. developing a new project timetable, 4. planning a revised project budget. The redefinition of the project in accordance with the new NGR guidelines is scheduled for Q3 2025. USD LIBOR – current status (alternative benchmark: CME Term SOFR) Status for the Bank’s USD LIBOR -linked loan portfolio: Since 1 October 2024, USD LIBOR has no longer been calculated or published. As of 31 August 2023, the CME Term SOFR benchmark rate was introduced as a new interest calculation basis for the Bank’s credit and factoring product offering for institutional clients (for new origination). In parallel, the Bank completed the process of amending loan and factoring agreements with corporate clients. For retail products, the Bank introduced solutions enabling the transition to the alternative benchmark, offering customers the option to sign an amendment to their agreements. For mortgage loan agreements where no amendment has been signed, the Bank applies the last available published USD LIBOR fixing for the purposes of
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 23 interest calculation. Amending mortgage loan agreements and transitioning to CME Term SOFR remains possible throughout the residual maturity of the loan. EURIBOR – current status Under the BMR Regulation, EURIBOR is a critical interest rate benchmark. Its administrator, the European Money Markets Institute (EMMI), has been authorised by the Belgian Financial Services and Markets Authority (FSMA) since 2 July 2019. On 6 March 2024, EMMI published the results of consultations on proposed changes to the EURIBOR methodology (consultations announced on 11 October 2023). On 9 September 2024, EMMI announced completion of the phase -in period for the enhanced Euribor methodology. On 17 February 2025, enhanced Euribor hybrid methodology took effect following an annual review. The review confirmed that the benchmark remains robust, resilient, and representative of its underlying market, and identified potential for further beneficial recalibrations. In line with the Bank’s obligation to notify clients of any material change to a benchmark referenced in contracts, the Bank undertook relevant communication measures: a notice regarding the material change in the EURIBOR calculation methodology was published in the ‘Aktualności’ (News) section of the Bank’s website and delivered to clients via the electronic banking channel. Status for the Bank’s EURIBOR-linked loan portfolio: • Retail clients (mortgage loans): since agreements referencing EURIBOR were entered into before the BMR Regulation came into force, the Bank offered clients execution of amendments to clarify further treatment of such agreements and ensure their uninterrupted performance. • Corporate and SME clients: the Bank has incorporated appropriate fallback clauses into agreements referencing EURIBOR. 30 Jun 2025 unaudited 31 Dec 2024 Assets based on the WIBOR rate Mortgage loans 1,088,650 1,122,862 Consumer loans 218,269 240,969 Other credit products 6,633,111 6,389,232 Debt securities 2,674,379 2,637,944 Liabilities based on the WIBOR rate Issue of debt securities 302,462 302,471 Deposits 49,989 119,519 Liabilities based on the WIBID rate Deposits 2,805,503 2,845,518 Derivative instruments (notional amount) IRS 1,384,228 1,714,858 Assets based on the LIBOR rate Mortgage loans 261 7,549
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 24 Other credit products 83,154 81,655 Interest rate risk Interest rate risk is defined as a potential negative impact of changes in interest rates on the projected financial result, economic value of equity and present value of debt securities held. In the context of the benchmark reform, interest rate risk can arise from mismatches in the repricing dates between the replacement index and the contract index, as well as mismatches in the index conversion dates across various agreements and contracts, such as loans and IRS contracts. Furthermore, there is a potential risk that the interbank derivatives market may not provide sufficient hedging options for mitigating the underlying interest rate risk inherent in credit -related on- balance sheet transactions. The risk may also materialise due to imperfect correlation in adjusting the interest rates of various interest rate -sensitive instruments, which would result in a mismatch between interest received and paid by the Bank. The Bank actively monitors the sensitivity of its exposure to the risk and implements appropriate measures in line with its interest rate risk management principles. The risks mentioned above have no impact on the interest rate risk management strategy. Legal risk The legal risk associated with the benchmark reform relates to the discontinuation of the benchmarks previously used in contracts and their replacement with an alternative benchmark. Hedge accounting The Bank uses hedge accounting to hedge the fair value of fixed-rate bonds with WIBOR-based Interest Rate Swap instruments (see Note 35 ‘Hedge accounting’ for details). As a result of the benchmark reform, the reference rate for the hedging instrument will change. The change in the benchmark will result in a corresponding change in the value of such instruments – which will be the higher, the greater the difference between the new benchmark and the previously used rate. Thus, the hedging transactions would have to be assessed for continued effectiveness (looking at the value of the hedged item and value of the hedging instrument). Their effectiveness will also depend on the existence of a liquid market for POLSTR-based derivatives. However, as the benchmark reform is not expected to be completed until 2027 and the Bank’s accounting horizon runs to July 2025, the reform will not have an impact on hedge accounting risk in the medium term. 5. Corrections of prior period errors In these condensed consolidated financial statements, the Group has not corrected any errors in the financial statements of prior periods. 6. Significant estimates and judgments The preparation of the Group's interim consolidated financial statements requires judgments, estimates and assumptions that affect the reported amounts of income, expenses, assets, and liabilities and related notes, as well as disclosure of contingent liab ilities. Uncertainties related to these assumptions and estimates may result in changes to carrying amounts of assets and liabilities in the future. They also require exercising professional judgment in the process of applying the adopted accounting policies. The methodology used to make estimates and judgments is presented in the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 25 Expected credit losses on financial assets The methodology used to estimate the impairment of amounts due from clients and accounting for macroeconomic factors in the valuation of the loan portfolio is consistent with the methodology presented in the full-year consolidated financial statements of t he BOŚ Group for the year ended 31 December 2024. In the six months ended 30 June 2025, the Bank introduced a new methodology for the quantitative criterion of significant increase in credit risk for corporate clients, which added PLN 1.5 million to expect ed credit loss allowances. In addition, following the review and redefinition of the criteria for classifying clients on the watch list, expected credit loss allowances increased by a further PLN 2.5 million. In June 2025, a sensitivity analysis was conducted on the unimpaired loan portfolio to assess the impact of changes in portfolio parameters (LGD and PD) using the group approach. If recovery rates changed by +/ - 10 percentage points, the estimated amount o f loss allowances for the portfolio would decrease by PLN 20.8 million or increase by PLN 20.8 million, respectively. A simultaneous +/-10 percentage point change in the PD parameter would result in a decrease of PLN 39.5 million or an increase of PLN 43.7 million in the loss allowances, respectively. Estimates of the impact of the legal risk associated with foreign currency -linked mortgage loans In the six months ended 30 June 2025, there were no material changes to the methodology used to estimate the provision for the legal risk of foreign currency-linked mortgage loans. Note 8 ‘Legal risk associated with foreign currency-linked residential mortgage loans’ provides an overview of the factors and circumstances that could significantly affect the amount of the adjustment to the carrying amount of loan receivables and the legal-risk provision along with an explanation of how the risk is recognised in the financial statements. The Bank conducted a sensitivity analysis of the estimated impact of the legal risk, considering changes in key parameters associated with the number of lawsuits and signed settlements with clients. Model sensitivity Parameter change -25pp base-case scenario +25pp Increase in the number of lawsuits -22 700 27 Increase in the number of settlements under the settlement programme -2 700 7 Probability of settlement * 13 700 -54 * In the -25% scenario, the minimum possible value of the parameter, that is 0%, was assumed. Fair value of financial instruments classified as Level 3 in the fair-value hierarchy In the six months ended 30 June 2025, there were no material changes to the methodology used to estimate the fair value of financial instruments classified as Level 3. 7. Type and amounts of non-recurring items affecting the assets, equity and liabilities, net profit/loss or cash flows, which are unusual due to their type, size or frequency In the six months ended 30 June 2025, there were no non-recurring events with a significant impact on the Group’s assets, liabilities, equity, net profit/loss or cash flows.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 26 8. Legal risk associated with foreign currency-linked residential mortgage loans For full information on the legal risk of foreign currency -linked residential mortgage loans, see the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. The vast majority of court rulings delivered after the judgment of the Court of Justice of the European Union (CJEU) of 3 October 2019 in case C-260/18 are unfavourable to banks. The Bank monitors both domestic case law and the CJEU’s rulings on an ongoing basis when assessing the legal risk of foreign currency -linked loans and takes into account in its analyses that the CJEU judgments and rulings by Polish courts to the disadvantage of banks have an effect on the number of court proceedings and the value of claims sought. In 2021, BOŚ SA, together with a group of other banks, initiated a project to create a voluntary settlement offer for clients. This agreement stipulates that loans originally denominated in foreign currencies be recalculated as if they had been issued in Polish złoty from the outset, applying an interest rate based on the WIBOR plus an appropriate margin. Having obtained the approval of the Extraordinary General Meeting (Resolution No. 4/2021 of 8 December 2021), on 31 January 2022 the Bank implemented the BOŚ S.A. Settlement Programme based on a framework communicated by the President of the PFSA. The Bank enters into settlements with borrowers under the Settlement Programme and on individually negotiated terms, including court settlements. In the first six months of 2025, the number of settlement agreements totalled 348, of which 45 were concluded under the Settlement Programme. The number of individually negotiated settlements is steadily growing. As at 30 June 2025, a total of 894 settlements had been concluded under the Settlement Programme (45 since the beginning of 2025), with 20 more in progress. As at 30 June 2025, the total amount of the provision for the legal risk of foreign currency -linked mortgage loans was PLN 700,364.77 thousand, of which PLN 459,019.26 thousand is presented as a provision for litigation and claims related to the legal risk of foreign currency mortgage loans, and PLN 241,345.51 thousand as additional expected credit loss allowances. As at 30 June 2025, there were 2,035 court cases pending against the Bank concerning foreign currency -linked loans (mainly CHF, as well as USD and EUR), with the disputed amounts totalling PLN 826,543.53 million (31 December 2024: 2,163 court cases with the disputed amounts of PLN 857,269.86). The claims filed in lawsuits concerning foreign currency -linked loan agreements typically seek to have the loan agreement declared null and void and to secure a refund of paid loan instalments and other loan-related charges. For information on recognised provisions for the legal risk of foreign currency-linked loans, see Note 17 ‘Effect of legal risk of foreign currency mortgage loans’. Recognition of the legal risk of foreign currency-linked residential mortgage loans For rules governing the recognition and measurement of the legal risk of foreign currency -linked residential mortgage loans, see the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. In the six months ended 30 June 2025, these rules did not change.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 27 Foreign currency-linked loans Gross carrying amount of amounts due from foreign currency- linked loans before legal-risk charges 30 Jun 2025 unaudited 31 Dec 2024 CHF 368,590 459,553 EUR 341,854 375,661 USD 17,964 21,772 Total 728,408 856,986 Adjustment to gross carrying amount of foreign currency- linked mortgage loans and legal-risk provision 30 Jun 2025 unaudited 31 Dec 2024 Adjustment to gross carrying amount of loans linked to: CHF 328,108 397,469 EUR 120,023 103,450 USD 10,888 9,609 459,019 510,528 Provisions: CHF 201,510 220,012 EUR 36,291 28,220 USD 3,545 2,990 241,346 251,222 Total 700,365 761,750
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 28 Changes in the adjustment to gross carrying amount of loans and legal-risk provision 30 Jun 2025 unaudited Total Adjustment to gross carrying amount Provision At beginning of period 761,750 510,528 251,222 Provision used in connection with settlement agreements -26,585 -24,175 -2,410 Provision used in connection with dispute resolution -83,310 -53,229 -30,081 Change (recognition/reversal) 54,093 28,753 25,340 Exchange differences -5,583 -2,858 -2,725 At end of period 700,365 459,019 241,346 31 Dec 2024 Total Adjustment to gross carrying amount Provision At beginning of period 692,689 528,689 164,000 Provision used in connection with settlement agreements -31,515 -29,834 -1,681 Provision used in connection with dispute resolution -106,755 -70,768 -35,987 Change (recognition/reversal) 228,626 98,042 130,584 Exchange differences -21,295 -15,601 -5,694 At end of period 761,750 510,528 251,222
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 29 9. Legal and administrative proceedings ‘Free credit’ sanction – consumer loans The Bank has observed a rise in complaints and legal actions pertaining to consumer loans wherein borrowers allege violations of the Consumer Credit Act of 12 May 2011, resulting in the imposition of 'free credit' sanctions. Consumers argue that the Bank has not met its obligations to provide information about variable loan interest rates and misstated credit costs. They also challenge the validity of interest charged on financed arrangement fees and other loan-related charges. The successful assertion of violations of the provisions of the Consumer Credit Act and the consumer's use of ‘free credit’ sanctions does not render the consumer credit agreement void. The agreement remains legally binding, but the Bank loses interest income. As at 30 June 2025, there were 57 ongoing court cases concerning ‘free credit’ sanctions, with the disputed amounts totalling PLN 1,567.73 (31 December 2024: 40 ongoing court cases, with the disputed amounts totalling PLN 1,116.56). Given the favourable outlook for final court rulings, the Group did not recognise any provisions for these cases as at 30 June 2025. Investment certificates Between 2015 and 2017, the Bank acted as a broker for the distribution of investment certificates from several investment funds. These funds were subject to supervision by the competent regulatory authorities in accordance with applicable law. Due to the financial condition and legal status of some of the investment funds, a number of purchasers of investment certificates brought claims for damages against the Bank. As at 30 June 2025, there were 44 ongoing court cases concerning investment certificates, with the disputed amounts totalling PLN 25,000.04 (31 December 2024: PLN 24,581.82). The Bank continuously monitors the funds' capacity to redeem certificates and updates its assessment of the legal risk associated with the Bank’s potential obligation to comply with adverse court rulings. As at 30 June 2025, the provision amounted to PLN 1 0,593.50 thousand, an increase of PLN 92.90 thousand in the first half of 2025 (31 December 2024: PLN 10,500.60 thousand). Proceedings by the Office of Competition and Consumer Protection On 13 February 2024, the Bank received a notification from the President of the Office of Competition and Consumer Protection (UOKiK) dated 8 February 2024, initiating proceedings regarding practices that infringe upon the collective interests of consumers . The President of UOKiK raised the following allegations against the Bank: 1. The Bank allegedly failed to reimburse the amount of an unauthorised payment transaction or to restore pre - transaction balance in the affected account by no later than D+1 (i.e. by the end of the next business day following the consumer's report of the una uthorised transaction), despite there being no valid reasons to withhold such actions (such as when the Bank has reasonable and properly documented grounds to suspect fraud by the consumer and has reported this suspicion to law enforcement, or when the not ification of the unauthorised transaction was received from the consumer more than 13 months after the account was debited). 2. The Bank is also accused of misleading consumers in its responses to reports of unauthorised payment transactions by suggesting that the Bank’s authentication of a transaction using individual authentication data is equivalent to its authorisation, and thus absolves the Bank of liability. In other words, the President of UOKiK accused the Bank of misleading consumers by implying in its responses that authenticating a transaction is the same as authorising it.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 30 According to the President of UOKiK, the Bank's practice described in point 1 above may violate Article 46.1 of the Payment Services Act of 19 August 2011 and infringe upon the collective interests of consumers. Consequently, this could constitute a practice that breaches the collective interests of consumers as specified in Articles 24.1 and 24.2 of the Act on Competition and Consumer Protection. In the view of the President of UOKiK, the practice described in point 2 may mislead consumers about the Bank's obligations under Article 46.1 of the Payment Services Act, and about the burden of proof in demonstrating that a payment transaction was authorised (i.e. shifting the burden of proof onto the consumer). This could constitute an unfair market practice as outlined in Article 5.1, 5.2.1 and 5.3.3 in conjunction with Article 4.2 of the Act on Counteracting Unfair Market Practices of 23 August 2007, i nfringing upon the collective interests of consumers. Consequently, this could represent a practice that breaches the collective interests of consumers as specified in Article 24.1 and 24.2.3 of the Act on Competition and Consumer Protection. This issue affects a significant part of the banking sector and has been raised by the Polish Bank Association with UOKiK in a number of submissions, which, however, had no effect on the proceedings brought individually against banks. As part of the ongoing proceedings, the Bank submitted two letters to UOKiK in 2024: 1. letter of 25 November 2024 – describing measures applied by the Bank in 2024 to improve handling of unauthorised transaction reports and to enhance customer education on cyber threats. The letter set out actions taken in the following areas: • technical – IT and technical measures to enhance the security of tools offered by the Bak, • educational – awareness raising campaigns for clients to increase understanding of cyber threats, • legal and procedural – changes in the interpretation of the concept of ‘authorisation’ and modification of the procedure for handling unauthorised transaction reports. 2. letter of 19 December 2024 – presenting a new procedure developed by the Bank for processing unauthorised transaction reports, aligned the expectations of the President of UOKiK. The Bank outlined the core principles of the new approach and noted that the changes had been implemented operationally, which included adjustments to the report handling processes at the Bank and staff training. Key elements of the new procedure include: • distinguishing between authorisation and authentication, • examining both authorisation and authentication, • taking an individual approach to every report, • conducting a detailed investigation into the circumstances of each unauthorised transaction. On 10 April 2025, the Bank submitted another letter to UOKiK, stating that it had discontinued the practices identified in UOKiK’s notification of the initiation of proceedings. The letter described the Bank’s current approach to handling unauthorised tran saction reports under the new procedure (effective since 1 January 2025) and outlined proposed measures to address the effects of the practices previously identified by the President of UOKiK (public compensation). The Bank also included initial proposals for a commitment and formally requested that the proceedings be concluded through a commitment decision under Article 28 of the Act on Competition and Consumer Protection of 16 February 2007. The Bank does not know the timeline for the conclusion of the proceedings, nor can it predict the outcome or decision that will result from these proceedings. However, it assumes that a decision is likely to be issued by the end of 2025. The Bank is seeking a resolution through a commitment decision under Article 28 of the Act on Competition and Consumer Protection (as reflected in the letter of 10 April 2025 described above). Accordingly, as at 30 June 2025, the Group maintained a provision of PLN 1,065.64 thousand. In the first six months of 2025, the provision remained unchanged due to the absence of new circumstances requiring its reassessment. Proceedings by the Polish Financial Supervision Authority On 27 April 2023, the Polish Financial Supervision Authority (PFSA) initiated administrative proceedings to impose an administrative penalty on Bank Ochrony Środowiska S.A. under Articles 147.4.a, 147.5, 147.11 and 147.13 of the Anti-Money Laundering and T errorist Financing Act as a result of an audit. The PFSA once again extended the deadline for the planned completion of the proceedings. At this stage, it is not possible to determine their possible financial impact.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 31 Proceedings by the Polish Data Protection Authority On 29 September 2023, the President of the Polish Data Protection Authority (UODO) initiated administrative proceedings concerning the processing by the Bank of personal data of its clients and prospective clients in connection with their profiling. The proceedings concern two breaches of personal data protection laws, identified during the audit carried out at the Bank in 2022. After assessing the pertinent circumstances, the President of UODO may impose an administrative fine or other non -financial penalt ies. At this stage, it is not possible to determine the possible financial impact of the proceedings. Court proceedings related to the WIBOR rate The Bank was informed of two lawsuits initiated in relation to PLN -denominated mortgage loans in which borrowers raised claims regarding the use of WIBOR as the benchmark applied in determining the interest rate on variable-rate loans and the Bank’s fulfil ment of its obligation to inform clients about the risks associated with entering into a variable-rate mortgage agreement. As at 30 June 2025, there were 10 ongoing court cases concerning PLN -denominated mortgage loans and challenging WIBOR as the interest calculation basis, with the disputed amounts totalling PLN 2,687.9 thousand. Given the favourable outlook for final court rulings, the Group did not recognise any provisions for these cases as at 30 June 2025. 10. Segment reporting The Group’s business is divided into operating segments dedicated to serving specific client groups. The segmentation structure is aligned with the Group’s internal management practices and financial reporting framework. In the six months ended 30 June 2025, the Bank adopted a new client segmentation model, effective from 1 January 2025. Under the revised model, the former Institutional Client segment was replaced by the Corporate segment, while the former Retail Client segment was replaced by the SME, Micro -Enterprise and Retail segment. In connection with this change, the SME and micro -enterprise operations were transferred to the SME, Micro -Enterprise and Retail area. As at 31 March 2025, the Bank's client service operations were divided into the following segments: 1. Corporate segment: • corporate clients, 2. SME, Micro-Enterprise and Retail segment: • SME business clients, • micro-enterprise business clients, • retail clients. Other operating segments remained unchanged. In accordance with IFRS 8, the operating results, assets, and liabilities for the comparative period of the previous year were not restated following the change in segmentation. Below are presented the consolidated financial results of the BOŚ Group attributable to the segments for the six months ended 30 June 2025 and 30 June 2024.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 32 No. Statement of items of profit or loss for 6 months ended 30 Jun 2025 unaudited CORPORATE CLIENTS SME, MICRO- ENTERPRISE AND RETAIL CLIENTS TREASURY AND INVESTMENT BUSINESS BROKERAGE BUSINESS OTHER (NOT ALLOCATED TO SEGMENTS) BOŚ GROUP I. Net interest income 131,048 130,380 104,688 38,583 - 705 403,994 1. Interest and similar income, including: 577,591 388,082 - 218,549 45,943 23 793,090 transactions with external clients 333,687 93,175 309,669 4,264 - 740,795 transactions with other segments 243,904 294,907 - 528,218 41,679 23 52,295 2. Interest expense and similar income, including: - 446,543 - 257,702 323,237 - 7,360 - 728 - 389,096 transactions with external clients - 122,116 - 182,605 - 27,122 - 4,942 - 16 - 336,801 transactions with other segments - 324,427 - 75,097 350,359 - 2,418 - 712 - 52,295 II. Net fee and commission income 24,410 5,933 - 35,025 - 276 65,092 III. Dividend income - - 11,651 129 - 11,780 IV. Gain (loss) on financial instruments measured at fair value through profit or loss - - 5,539 36,042 - 41,581 V. Gain (loss) on hedge accounting - - - 986 - - - 986 VI. Gain (loss) on investment securities - - 21,426 - - 21,426 VII. Gain (loss) on foreign exchange transactions 4,260 1,677 - 3,028 - 845 - 2 2,062 VIII. Gain (loss) on derecognition of financial instruments 272 43 - - - 315 IX. Net banking income 159,990 138,033 139,290 108,934 - 983 545,264 X. Net other income and expenses 458 - 2,217 - - 6,052 - 18,183 - 25,994 XI. Effect of legal risk of foreign currency mortgage loans - - 59,484 - - - 59,484 XII. Net loss allowances - 27,426 - 1,286 20 - 868 - 27,824 XIII. Net finance income (costs) 133,022 75,046 139,310 102,882 - 18,298 431,962 1. Direct costs - 22,265 - 13,305 - 1,303 - 62,880 - 850 - 100,603
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 33 Profit (loss) after direct costs 110,757 61,741 138,007 40,002 - 19,148 331,359 2. Indirect costs and mutual services - 47,171 - 88,753 - 16,181 - - - 152,105 Profit (loss) after direct and indirect costs 63,586 - 27,012 121,826 40,002 - 19,148 179,254 3. Amortisation and depreciation - 11,478 - 19,856 - 2,169 - 6,353 - 850 - 40,706 4. Other costs (taxes, BFG, PFSA) - 15,577 - 12,658 - 409 - 2,426 - 229 - 31,299 XIV. Profit (loss) before tax 36,531 - 59,526 119,248 31,223 - 20,227 107,249 XV. Allocated profit (loss) of ALM 19,855 70,565 - 90,420 - - - XVI. Gross profit (loss) after ALM allocation 56,386 11,039 28,828 31,223 - 20,227 107,249 XVII. Income tax expense - 27,528 XVIII. Net profit/(loss) 79,721 XIX. Segment assets 8,385,776 1,943,173 12,426,280 439,824 285,617 23,480,670 including amounts due from banks and clients 8,099,763 1,943,173 219,032 3,303 2,923 10,268,194 Segment liabilities 6,535,345 10,901,830 3,094,050 2,121,950 827,495 23,480,670 including amounts due to banks and clients 6,515,113 10,901,830 666,673 1,785,219 70,321 19,939,156 Expenditure on property, plant and equipment and intangible assets 2,304 3,354 500 2,920 - 9,078
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 34 No. Statement of items of profit or loss for 6 months ended 30 Jun 2024 unaudited INSTITUTIONAL CLIENTS RETAIL CLIENTS TREASURY AND INVESTMENT BUSINESS BROKERAGE BUSINESS OTHER (NOT ALLOCATED TO SEGMENTS) BOŚ GROUP I. Net interest income 153,997 103,985 104,899 40,306 - 767 402,420 1. Interest and similar income, including: 599,350 362,425 - 242,544 46,892 24 766,147 transactions with external clients 377,629 88,579 242,885 4,838 - 713,931 transactions with other segments 221,721 273,846 - 485,429 42,054 24 52,216 2. Interest expense and similar income, including: - 445,353 - 258,440 347,443 - 6,586 - 791 - 363,727 transactions with external clients - 98,748 - 173,637 - 34,245 - 4,865 - 16 - 311,511 transactions with other segments - 346,605 - 84,803 381,688 - 1,721 - 775 - 52,216 II. Net fee and commission income 30,309 4,797 - 28,813 - 259 63,660 III. Dividend income - - 12,057 128 - 12,185 IV. Gain (loss) on financial instruments measured at fair value through profit or loss - 151 - 1,728 22,537 - 24,114 V. Gain (loss) on hedge accounting - - - 962 - - - 962 VI. Gain (loss) on investment securities - - 29 - - 29 VII. Gain (loss) on foreign exchange transactions 16,677 1,666 - 11,882 - 103 - 1 6,357 VIII. Gain (loss) on derecognition of financial instruments 309 - - - - 309 IX. Net banking income 201,141 110,448 105,869 91,681 - 1,027 508,112 X. Net other income and expenses - 4,730 - 15,870 - 86 - 3,712 - 24,226 XI. Effect of legal risk of foreign currency mortgage loans - - 107,523 - - - - 107,523 XII. Net loss allowances - 12,969 9,687 6,750 - - 3,468 XIII. Net finance income (costs) 183,442 - 3,258 112,619 91,767 - 4,739 379,831 1. Direct costs - 17,847 - 14,812 - 1,325 - 53,254 - 736 - 87,974
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 35 Profit (loss) after direct costs 165,595 - 18,070 111,294 38,513 - 5,475 291,857 2. Indirect costs and mutual services - 70,743 - 52,748 - 10,847 - - - 134,338 Profit (loss) after direct and indirect costs 94,852 - 70,818 100,447 38,513 - 5,475 157,519 3. Amortisation and depreciation - 16,480 - 13,761 - 1,348 - 6,141 - 850 - 38,580 4. Other costs (taxes, BFG, PFSA) - 14,402 - 12,092 - 561 - 2,642 - 431 - 30,128 XIV. Profit (loss) before tax 63,970 - 96,671 98,538 29,730 - 6,756 88,811 XV. Allocated profit (loss) of ALM 37,359 53,135 - 90,494 - - - XVI. Gross profit (loss) after ALM allocation 101,329 - 43,536 8,044 29,730 - 6,756 88,811 XVII. Income tax expense - 38,580 XVIII. Net profit/(loss) 50,231 XIX. Segment assets 8,768,539 2,006,976 9,643,824 338,725 270,512 21,028,576 including amounts due from banks and clients 8,747,911 2,006,976 48,516 6,404 2,723 10,812,530 Segment liabilities 6,113,642 9,205,054 3,310,908 1,815,387 583,585 21,028,576 including amounts due to banks and clients 6,087,880 9,205,054 712,332 1,554,014 85,974 17,645,254 Expenditure on property, plant and equipment and intangible assets 23,231 20,187 3,087 10,537 - 57,042
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 36 Notes to the condensed interim consolidated statement of profit or loss 11. Net interest income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Interest income Income similar to interest income Total Interest income Income similar to interest income Total Financial assets measured at amortised cost Assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Financial assets measured at amortised cost Assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Cash and cash equivalents 29,158 99,913 - 129,071 21,783 77,154* - 98,937* Amounts due from corporate clients 316,341 - - 316,341 372,325 - - 372,325 Amounts due from SME, micro- enterprise and retail clients 90,532 - 159 90,691 87,208 - 155 87,363 Investment debt securities 46,721 147,733 1,604 196,058 52,106 91,802* 1,613 145,521* Investment debt securities held for trading - - 797 797 - - 1,589 1,589 Hedging transactions - - 7,837 7,837 - - 8,196 8,196 Total 482,752 247,646 10,397 740,795 533,422 168,956 11,553 713,931 * Comparative data for the six months ended 30 June 2024 reflect a presentation change relative to data reported in the previ ous year. The amount of PLN 11,571 has been recognised as interest income on amounts due from institutional clients, while in the previous year it was presented as inter est income on amounts due from banks and the central bank. For a detailed description of the change, see the full-year financial statements of BOŚ S.A. for the year ended 31 December 2024.
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P a g e | 37 Interest expense and similar charges on: for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Financial liabilities measured at amortised cost Financial liabilities measured at fair value through profit or loss Total Financial liabilities measured at amortised cost Financial liabilities measured at fair value through profit or loss Total Bank accounts and deposits from banks 3,140 - 3,140 2,061 - 2,061 Bank accounts and deposits from corporate clients 127,825 - 127,825 103,617 - 103,617 Bank accounts and deposits from SME, micro-enterprise and retail clients 184,619 - 184,619 175,780 - 175,780 Borrowings from clients 7,040 - 7,040 8,955 - 8,955 Lending support funds 282 - 282 366 - 366 Financial instruments – own debt securities 12,603 - 12,603 19,131 - 19,131 Lease liabilities 989 - 989 1,592 - 1,592 Other 303 - 303 9 - 9 Total 336,801 - 336,801 311,511 - 311,511
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 38 12. Net fee and commission income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Fee and commission income Fee and commission income from contracts with customers under IFRS 15, including: 71,304 62,809 brokerage service fees 55,133 44,291 fees for maintaining client accounts, other domestic and international settlement transactions 15,572 18,109 Fees for portfolio management services and other management fees 596 405 Other fees 3 4 Commission fees on credit facilities 16,863 17,322 Commission fees on guarantees and letters of credit 2,636 4,212 Total 90,803 84,343 Fee and commission expense Brokerage fees, including: 20,704 15,883 for custody services 524 473 Payment card fees 4,096 3,923 Current account fees 283 293 ATM service charges 278 242 Fees on amounts due from clients 4 3 Other fees 346 339 Total 25,711 20,683 13. Dividend income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Securities held for trading measured at fair value through profit or loss 129 128 Securities measured at fair value through other comprehensive income 11,651 12,057 Total 11,780 12,185
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 39 14. Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Securities held for trading 7,347 3,581 Derivative financial instruments 35,563 20,929 Amounts due from clients - 156 - 151 Securities measured at fair value through profit or loss and related derivative financial instruments - 1,173 - 245 Total 41,581 24,114 15. Gain (loss) on investment securities for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Gain (loss) on sale of securities measured at fair value through other comprehensive income 21,426 29 Total 21,426 29
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 40 16. Other income and expenses for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Reversal of provisions for liabilities, including: 2,349 2,703 provisions for liabilities and claims 1,397 1,632 Provision for refunds of increased interest charged until court entry of mortgage security 230 - other provisions 722 1,071 Reversal of loss allowances for receivables 438 5,813 Recoveries of prescribed, cancelled or uncollectible receivables 1,688 18 Proceeds from sale or retirement of property, plant and equipment 119 11 Reimbursement of debt collection costs 443 331 Revenue from sale of goods and provision of services 7,166 8,783 Adjustment of interest on cancelled deposits from previous years 345 392 Income from damages, penalties and fines 33 91 Income from grant refinancing 130 844 Mój Elektryk (My EV) programme 1,558 1,648 Income from adjustment of input VAT 170 - Other 1,558 1,203 Total other income 15,997 21,837
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 41 for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Retirement of property, plant and equipment and intangible assets 2 6 Write-off of intangible assets due to discontinued use - 17,429 Donations 2,140 1,458 Recognised provisions for liabilities and claims, including: 2,946 4,022* provision for refunds of commission fees due to early loan repayment 167 95* provision for other liabilities and claims 985 3,670 Provision for refunds of increased interest charged until court entry of mortgage security - 237 other provisions 1,794 20 Loss allowances for receivables 3,035 4,178 Debt collection costs 1,166 1,467 Adjustment to interest and commission fees on loans earned in previous years 3,957 2,203* Lease payments 4,119 2,960 Costs of maintenance and administration of own leased premises 158 203 Costs of damages, penalties and fines 613 75 Costs of erroneous brokerage transactions 60 85 Fees for handling payment of benefits on securities 439 568 Costs of property appraisal reports 58 44 Costs of handling claims and disputes with clients 20,835 9,096 Costs of grant refinancing 279 374 Other 2,184 1,895 Total other expenses 41,991 46,063 * PLN 95 was transferred from ‘Adjustment to interest and commission fees on loans earned in previous years’ to ‘Provision for refunds of commission fees due to early loan repayment’. 17. Effect of legal risk of foreign currency mortgage loans for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Change in legal-risk adjustment to gross carrying amount of loans -28,753 -40,063 Change in legal-risk provision -25,339 -60,688* Effect of voluntary settlements with clients or contract cancellations -5,392 -6,772* Total -59,484 -107,523 * There has been a change in the presentation of the effect of the recognition of amounts due from a client in respect of the repayment of loan principal (disclosed as amounts due under 'Other assets'). In these financial statements, the effect of the change in this item’s balance is presented as ‘Effect of voluntary settlements with clients or contract cancellations’, whereas in t he
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 42 condensed interim consolidated financial statements for the six months ended 30 June 2024 it was presented under ‘Change in legal-risk provision’. The presentation change of the comparative data for 2024 amounts to PLN 47,715 thousand. In the condensed interim consolidated financial statements for the six months ended 30 June 2024, the Group recognised: • PLN 12,973 thousand under ‘Change in legal -risk provision’, whereas in these financial statements the amount disclosed in this line item is PLN 60,688 thousand, reflecting the change described above, • PLN 54,487 thousand under ‘Effect of voluntary settlements with clients or contract cancellations’, whereas in these financia l statements the amount disclosed in this line item is PLN 6,772 thousand, reflecting the change described above. 18. Net loss allowances for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Securities measured at fair value through other comprehensive income - 1,097 7,901 Securities measured at amortised cost 17 59 Amounts due from banks - 411 - 54 Amounts due from clients and off-balance-sheet liabilities, including: - 26,333 - 4,438 on-balance-sheet receivables - 22,133 - 2,116 from SME, micro-enterprise and retail clients - 9 9,928 from corporate clients - 22,124 - 12,044 off-balance-sheet liabilities - 4,200 - 2,322 from SME, micro-enterprise and retail clients - 744 - 189 from corporate clients - 3,456 - 2,133 Total - 27,824 3,468 Net loss allowances for amounts due from clients: for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Individual assessment - 14,442 - 16,096 Collective assessment - 7,691 13,980 Total - 22,133 - 2,116
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 43 19. Administrative expenses for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Employee benefits 177,666 152,919 Administrative expenses, including: 106,341 99,521 material costs 75,042 69,393 taxes and charges 4,084 7,768 contribution and payments to BGF 24,956 20,243 contribution and payments to PFSA 1,819 1,709 contribution to cover operating expenses of Financial Ombudsman 374 348 contribution to Chamber of Brokerage Houses (Izba Domów Maklerskich, IDM) 66 60 Amortisation and depreciation, including: 40,706 38,580 depreciation of property, plant and equipment 11,394 10,196 amortisation of intangible assets 19,207 19,656 depreciation of rights-of-use assets 10,105 8,728 Total 324,713 291,020
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 44 20. Income tax expense for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Tax expense disclosed in statement of profit or loss - 27,528 - 38,580 Current tax expense - 18,602 - 13,722 Deferred tax on temporary differences - 8,926 - 24,858 Reconciliation of effective tax rate for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Profit before tax 107,249 88,811 Income tax at 19% tax rate - 20,378 - 16,874 Effect of permanent differences between profit or loss before tax and taxable income: - 7,150 - 21,706 legal-risk charges related to mortgage loans denominated in convertible currencies - 8,884 - 21,023 contribution and payments to BGF - 4,685 - 3,789 expected credit loss allowances - 900 - 2,683 dividend income 2,239 2,315 donations 406 277 tax on income subject to tax collection waiver 5,139 3,962 other - 465 - 765 Tax expense disclosed in statement of profit or loss - 27,528 - 38,580 Effective tax rate 26% 43% For detailed information on deferred tax, see Note 30.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 45 21. Earnings per share Basic earnings per share are calculated as the quotient of profit attributable to shareholders of the Bank and the weighted average number of ordinary shares during the year. for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Net profit 79,721 50,231 Weighted average number of ordinary shares (thousand) 92,910 92,910 Basic earnings per share (PLN) 0.86 0.54 Diluted earnings per share are equal to basic earnings per share in the periods presented.
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 46 Notes to the condensed interim consolidated statement of financial position 22. Amounts due from banks 30 Jun 2025 unaudited 31 Dec 2024 Deposits with other banks up to 3 months 1 33 including: deposits with other banks up to 3 months (funds of Dom Maklerski BOŚ S.A. clients) 1 33 Amounts due from banks under derivative hedging transactions 1,293 2,179 Subsidies for ‘Secure 2% Mortgage’ 790 685 Debt securities classified as amounts due from banks 150,472 - Current accounts for the administration of EU programmes 20,666 11,500 Subordinated loan 20,760 - Total, gross 193,982 14,397 Loss allowances for debt securities classified as amounts due from banks - 26 - Loss allowances for subordinated loan - 385 - Total, net 193,571 14,397
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 47 23. Financial assets and liabilities held for trading 30 Jun 2025 unaudited 31 Dec 2024 Derivative financial instruments, including: 97,194 110,355 foreign exchange and currency derivative transactions 9,362 1,457 interest rate derivative transactions 65,181 87,368 forward contracts and options 945 533 contracts for difference (CFDs) 21,706 20,997 Securities held for trading 21,839 35,377 debt securities 861 18,809 equity securities 20,978 16,568 Total financial assets held for trading 119,033 145,732 30 Jun 2025 unaudited 31 Dec 2024 Derivative financial instruments, including: 37,481 57,143 foreign exchange and currency derivative transactions 139 2,677 interest rate derivative transactions 30,021 45,885 forward contracts and options 499 345 contracts for difference (CFDs) 6,822 8,236 Securities held for trading 1,470 1,032 equity securities 1,470 1,032 Total financial liabilities held for trading 38,951 58,175
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P a g e | 48 24. Investment securities 30 Jun 2025 unaudited 31 Dec 2024 Measured at fair value through other comprehensi ve income Measured at amortised cost Measured at fair value through profit or loss Total Measured at fair value through other comprehensi ve income Measured at amortised cost Measured at fair value through profit or loss Total Debt securities: 4,948,374 1,790,167 130,202 6,868,743 5,268,798 1,843,978 126,035 7,238,811 Treasury bonds 3,909,731 1,360,802 - 5,270,533 4,178,111 1,346,105 - 5,524,216 municipal bonds 275,900 - - 275,900 251,732 - - 251,732 bonds of other banks 364,351 226,188 130,202 720,741 513,900 226,174 126,035 866,109 bonds of other financial institutions 196,539 203,177 - 399,716 193,324 271,699 - 465,023 bonds of non-financial entities 201,853 - - 201,853 131,731 - - 131,731 Equity securities 108,715 - - 108,715 112,743 - - 112,743 Listed 7,736 - - 7,736 11,758 - - 11,758 Unlisted 100,979 - - 100,979 100,985 - - 100,985 Total 5,057,089 1,790,167 130,202 6,977,458 5,381,541 1,843,978 126,035 7,351,554
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 49 25. Amounts due from clients 30 Jun 2025 unaudited 31 Dec 2024 Gross amounts due from clients Loss allowances Net amounts due from clients Gross amounts due from clients Loss allowances Net amounts due from clients Measurement at amortised cost 11,034,704 991,776 10,042,928 11,001,214 930,587 10,070,627 Amounts due from SME, micro-enterprise and retail clients 2,162,920 219,754 1,943,166 2,090,378 215,847 1,874,531 overdraft facilities 31,925 4,508 27,417 3,350 2,971 379 cash loans 296,222 105,264 190,958 309,174 100,155 209,019 housing loans 1,442,549 76,142 1,366,407 1,553,854 81,552 1,472,302 other loans 390,204 33,826 356,378 224,000 31,169 192,831 purchased receivables 1,690 13 1,677 - - -- commercial paper 330 1 329 - - - Amounts due from corporate clients 8,871,784 772,022 8,099,762 8,910,836 714,740 8,196,096 working capital facilities 843,797 82,133 761,664 912,054 56,023 856,031 term facilities 5,981,430 595,360 5,386,070 5,974,901 571,642 5,403,259 factoring receivables 420,784 40,284 380,500 462,849 36,416 426,433 lease receivables 276,389 26,231 250,158 273,397 26,112 247,285 purchased receivables 56,893 9,049 47,844 66,123 8,394 57,729 commercial paper 1,292,491 18,965 1,273,526 1,221,512 16,153 1,205,359 Measurement at fair value through profit or loss - - 7 - - 32 Amounts due from SME, micro-enterprise and retail clients - - 7 - - 25 housing loans - - 3 - - 10 other loans - - 4 - - 15 Amounts due from corporate clients - - - - - 7 term facilities - - - - - 7 Total - - 10,042,935 - - 10,070,659 Margin deposits 25,466 3 25,463 27,865 3 27,862
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 50 Other amounts due from clients 6,225 - - 6,225 6,114 - 6,114 Total amounts due from clients - - 10,074,623 - - 10,104,635 Amounts due from clients included preferential loans with subsidised interest from NFOŚiFW and WFOŚiGW; in the reporting period, the amounts were as follows (nominal values): 30 Jun 2025 unaudited 31 Dec 2024 Preferential loans with subsidies, including: 22,716 21,412 measured at amortised cost 22,615 21,311 measured at fair value through profit or loss 101 101
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 51 Change in loss allowances for amounts due from clients: Allowances for amounts due SME, micro-enterprise and retail clients Allowances for amounts due from corporate clients Bucket 1 Bucket 2 Bucket 3 POCI Total Bucket 1 Bucket 2 Bucket 3 POCI Total At beginning of period 1 Jan 2025 7,127 1,879 206,693 148 215,847 63,350 79,407 578,102 - 6,119 714,740 Change in client segmentation model 1,021 20 4 - 1,045 - 1,021 - 20 - 4 - - 1,045 At beginning of period 1 Jan 2025 – new client segmentation model 8,148 1,899 206,697 148 216,892 62,329 79,387 578,098 - 6,119 713,695 Increase due to origination and acquisition of financial assets 1,609 38 - 21 1,668 18,125 759 - 395 19,279 Changes due to change in credit risk - 2,101 - 4,323 15,500 - 73 9,003 - 4,167 - 1,070 61,503 - 6,220 50,046 Decrease due to derecognition of financial assets, including: - 395 - 140 - 7,274 - - 7,809 - 3,841 - 2,662 - 10,408 5,913 - 10,998 change in loss allowances for financial instruments written off from the statement of financial position - - 1 - 69 - - 70 - - - 1,423 - 258 - 1,681 Change in loss allowances due to reclassifications of financial assets between Buckets 1,246 4,632 - 5,878 - - - 3,622 663 2,959 - - Reclassification to Bucket 1 1,877 - 259 - 1,618 - - 5,069 - 4,869 - 200 - - Reclassification to Bucket 2 - 320 5,704 - 5,384 - - - 7,771 8,995 - 1,224 - - Reclassification to Bucket 3 - 311 - 813 1,124 - - - 920 - 3,463 4,383 - - Other changes - 22 18 4 - - 12 - 12 - - - At end of period 30 Jun 2025 8,485 2,124 209,049 96 219,754 68,836 77,065 632,152 - 6,031 772,022
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Interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 52 Allowances for amounts due from retail clients Allowances for amounts due from institutional clients Bucket 1 Bucket 2 Bucket 3 POCI Total Bucket 1 Bucket 2 Bucket 3 POCI Total At beginning of period 1 Jan 2024 14,273 4,839 219,884 191 239,187 106,832 59,669 540,962 - 18,643 688,820 Increase due to origination and acquisition of financial assets 2,174 9 - - 2,183 12,584 1,606 - - 14,190 Changes due to change in credit risk - 9,612 - 3,406 14,072 - 8 1,046 - 5,193 4,611 41,175 - 2,734 37,859 Decrease due to derecognition of financial assets, including: - 895 - 106 - 4,978 - - 5,979 - 4,848 - 9,953 - 4,372 - 46 - 19,219 change in loss allowances for financial instruments written off from the statement of financial position - - 3 - 240 - - 243 - - - - - Change in loss allowances due to reclassifications of financial assets between Buckets 8,302 3,068 - 11,370 - - - 2,988 - 1,819 4,806 - - 1 Reclassification to Bucket 1 8,934 - 967 - 7,967 - - 7,373 - 6,864 - 510 - - 1 Reclassification to Bucket 2 - 336 5,523 - 5,187 - - - 9,090 9,146 - 56 - - Reclassification to Bucket 3 - 296 - 1,488 1,784 - - - 1,271 - 4,101 5,372 - - Other changes - - 615 - - - 615 - 615 - - 615 At end of period 30 Jun 2024 14,242 3,789 217,608 183 235,822 106,387 54,729 582,571 - 21,423 722,264
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 53 26. Amounts due to clients 30 Jun 2025 unaudited 31 Dec 2024 SME, micro-enterprise and retail clients 12,196,517 10,964,372 current/checking accounts 5,057,778 4,946,925 term deposits 7,138,739 6,017,447 Corporate clients 7,014,528 7,539,555 current/checking accounts 3,248,346 4,041,526 term deposits 3,766,182 3,498,029 Other clients 61,438 62,889 Borrowings from international financial institutions 476,647 505,694 Lending support funds 24,789 28,297 Total 19,773,919 19,100,807 In the six months ended 30 June 2025 and in 2024, the Group made all principal and interest payments on time, and did not breach any other contractual provisions regarding its payment obligations. 27. Liabilities arising from issue of securities Series Curren cy Interest rate Original maturity Maturity date Nominal value Amount outstandin g Nominal value Amount outstandi ng 30 Jun 2025 unaudited 31 Dec 2024 AC PLN 6M WIBOR + margin (six- month coupons) 4 years (with early repayment option after 3 years) 20 December 2028 200,000 102,709 200,000 199,762 Total 200,000 102,709 200,000 199,762
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 54 28. Subordinated liabilities Series Currency Interest rate Original maturity Maturity date Nominal value Amount outstanding Nominal value Amount outstanding 30 Jun 2025 unaudited 31 Dec 2024 AA1 PLN 6M WIBOR + margin (six-month coupons) 7 years (with early repayment option after 5 years) redeemed on 28 July 2024 - - - - AA2 PLN 6M WIBOR + margin (six-month coupons) 7 years (with early repayment option after 5 years) redeemed on 31 October 2024 - - - - P PLN 6M WIBOR + margin (six-month coupons) 10 years (with early repayment option after 5 years) redeemed on 11 July 2024 - - - - R1 PLN 6M WIBOR + margin (six-month coupons) 10 years (with early repayment option after 5 years) redeemed on 26 September 2024 - - - - AB PLN 6M WIBOR + margin (six-month coupons) 7 years (with early repayment option after 5 years) 5 September 2030 100,000 199,871 100,000 102,838 Total 100,000 199,871 100,000 102,838 In the six months ended 30 June 2025 and in 2024, the BOŚ Group did not breach any contractual provisions regarding its subordinated liabilities.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 55 29. Provisions 30 Jun 2025 unaudited 31 Dec 2024 Provision for financial obligations: 62,134 57,935 open lines of credit 44,103 33,054 guarantees 18,031 24,881 Provision for employee benefits – retirement and disability benefits 7,487 7,541 Other provisions 287,772 297,502 provision for legal risk of foreign currency mortgage loans 241,346 251,222 provision for refunds of commission fees due to early loan repayment 167 225 Provision for refunds of increased interest charged until court entry of mortgage security 903 1,315 provision for other liabilities and claims 45,356 43,992 provision for future payments - 748 Total 357,393 362,978 Change in provisions 30 Jun 2025 unaudited 31 Dec 2024 Provision for financial obligations At beginning of period 57,935 45,395 recognition of provisions for impairment of off-balance-sheet liabilities 64,557 143,130 reversal of provisions for impairment of off-balance-sheet liabilities - 60,357 - 130,590 other - 1 - At end of period 62,134 57,935 Provision for employee benefits At beginning of period 7,541 5,697 recognition of provisions 150 2,018 use of provisions - 204 - 174 At end of period 7,487 7,541 Provision for legal risk of foreign currency mortgage loans At beginning of period 251,222 164,000 recognition of provisions* 25,340 130,584 exchange differences on measurement of provisions - 2,725 - 5,694 use of provisions* - 32,491 - 37,668
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 56 reversal of provisions - - At end of period 241,346 251,222
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 57 Provision for refunds of commission fees due to early loan repayment At beginning of period 225 171 recognition of provisions - 167 use of provisions - 14 - 113 reversal of provisions - 44 - At end of period 167 225 Provision for refunds of increased interest charged until court entry of mortgage security At beginning of period 1,315 1,880 recognition of provisions - 237 use of provisions - 182 - 369 reversal of provisions - 230 - 433 At end of period 903 1,315 Provision for other liabilities and claims At beginning of period 43,992 39,146 recognition of provisions 2,734 7,992 reversal of provisions - 1,370 - 3,146 At end of period 45,356 43,992 Provision for future payments - At beginning of period 748 - recognition of provisions - 2,174 use of provisions -748 - 1,426 At end of period - 748 Total provisions at end of period 357,393 362,978 * There has been a change in the presentation of the legal risk provision. For details, see Note 19 ‘Effect of legal risk of foreign currency mortgage loans’.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 58 The provision for litigation and claims related to the legal risk of foreign currency mortgage loans and the provision for refunds of commission fees are recognised at the amount of expected outflows of economic benefits in the presented periods: 1 Jan 2025–30 Jun 2025 1 Jan 2025–30 Jun 2024 Amount Expected outflow of benefits Amount Expected outflow of benefits Provision for amounts due to clients 32,099 up to 1 year 30,350 up to 1 year Provision for other liabilities and claims 13,257 13,642 1,875 up to 1 year 3,829 up to 1 year 11,382 over 1 year 9,813 over 1 year Provision for legal risk related to foreign currency mortgage loans 241,346 251,222 144,836 up to 1 year 126,802 up to 1 year 96,510 over 1 year 124,420 over 1 year Provision for refunds of commission fees due to early loan repayment 167 225 56 up to 1 year 75 up to 1 year 111 over 1 year 150 over 1 year Provision for refunds of increased interest charged until court entry of mortgage security 903 1,315 301 up to 1 year 438 up to 1 year 602 over 1 year 877 over 1 year Provision for future payments - 748 - up to 1 year 748 up to 1 year Total 287,772 297,502 Litigation against the Bank concerning loans denominated in or linked to foreign currencies For information on litigation related to loans denominated in or linked to foreign currencies, see Note 8: ‘Legal risk associated with foreign currency-linked residential mortgage loans’
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 59 30. Deferred income tax Deferred income tax is calculated for all temporary differences using an income tax rate of 19%. DEFERRED TAX ASSETS AND LIABILITIES 30 Jun 2025 unaudited Statement of profit or loss Other comprehensive income 31 Dec 2024 interest accrued on loans and securities 78,251 8,544 - 69,707 differences between carrying amounts of property, plant and equipment and intangible assets, including lease contracts, and their tax base 56,352 878 - 55,474 positive value of securities and financial instruments 37,592 - 3,681 6,048 35,225 deferred commissions 15,454 1,243 - 14,211 Gross deferred tax liabilities 187,649 6,984 6,048 174,617 expected credit loss allowances 128,902 3,224 - 125,678 provision for legal risk of foreign currency mortgage loans related to Settlement Programme 16,140 2,418 - 13,722 interest accrued on deposits and securities 97,102 709 - 96,393 provision for material and labour costs 14,796 - 1,238 - 16,034 negative value of securities and financial instruments 22,175 - 5,257 - 834 22,175 other 3,613 - 2 - 3,613 interest received on securities previously purchased by the Bank 20,700 3,811 - 20,700 deferred commissions 16,641 - 5,608 - 16,641 Gross deferred tax assets 320,069 - 1,943 - 834 322,846 Total effect of temporary differences – net assets 132,420 - 8,927 - 6,882 148,229
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 60 DEFERRED TAX ASSETS AND LIABILITIES 30 Jun 2024 unaudited Statement of profit or loss Other comprehensive income 31-12-2023 interest accrued on loans and securities 67,529 5,731 - 61,798 differences between carrying amounts of property, plant and equipment and intangible assets, including lease contracts, and their tax base 22,048 - 5,890 - 27,938 positive value of securities and financial instruments 43,858 - 2,681 - 2,918 49,457 deferred commissions 17,429 3,236 - 14,193 other - - 187 - 187 IBNR recognised as tax-deductible in previous years 124 - 125 - 249 Gross deferred tax liabilities 150,988 84 - 2,918 153,822 expected credit loss allowances 120,441 - 8,185 - 128,626 provision for legal risk of foreign currency mortgage loans related to Settlement Programme 12,792 - 594 - 13,386 interest accrued on deposits and securities 64,517 - 10,726 - 75,243 provision for material and labour costs 9,537 - 2,499 - 12,036 negative value of securities and financial instruments 30,393 - 2,792 - 2,177 35,362 other 4,175 - 43 - 4,218 interest received on securities previously purchased by the Bank 22,263 8,192 - 14,071 deferred commissions 20,137 - 8,127 - 28,264 Gross deferred tax assets 284,255 - 24,774 - 2,177 311,206 Total effect of temporary differences – net assets 133,267 - 24,858 741 157,384
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 61 31. Other liabilities 30 Jun 2025 unaudited 31 Dec 2024 Interbank settlements 84,796 25,817 Amounts due to Dom Maklerski BOŚ counterparties 112,264 90,846 Accrued expenses and deferred income 96,441 82,965 Public charges 51,562 56,126 Trade liabilities 87,612 90,047 Deferred commissions 7,784 8,065 Payment card settlements 1,287 1,248 Provision for refunds of commission fees due to early loan repayment 1,692 1,900 Other 2,267 2,440 Total 445,705 359,454
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 62 32. Common equity Registered share capital As of 30 June 2025, the share capital was PLN 929,477 thousand and did not change relative to the amount as at 31 December 2024. Series/iss ue Type of shares Type of preference Number of shares Par value of series/issue, PLN thousand Method of payment for shares Date of registratio n Dividend right as of A O ordinary 236,700 2,367 cash 9 Jan 1991 1 Jan 1992 B O ordinary 1,263,300 12,633 cash 11 Mar 1992 1 Jan 1993 C O ordinary 477,600 4,776 cash 30 Dec 1992 1 Jan 1993 C O ordinary 22,400 224 in-kind contribution 30 Dec 1992 1 Jan 1993 D O ordinary 1,300,000 13,000 cash 30 Dec 1993 1 Jan 1994 E O ordinary 647,300 6,473 cash 30 Jun 1994 1 Jan 1995 E O ordinary 15,500 155 in-kind contribution 30 Jun 1994 1 Jan 1995 E O ordinary 37,200 372 in-kind contribution 30 Jun 1994 1 Jan 1995 F O ordinary 1,500,000 15,000 cash 30 Dec 1994 1 Jan 1995 G O ordinary 1,260,000 12,600 cash 30 Jun 1995 1 Jan 1996 H O ordinary 670,000 6,700 cash 30 Jun 1995 1 Jan 1996 I O ordinary 70,000 700 cash 30 Jun 1995 1 Jan 1996 J O ordinary 1,055,000 10,550 cash 21 Jun 1996 1 Jan 1996 K O ordinary 945,000 9,450 cash 21 Jun 1996 1 Jan 1996 L O ordinary 1,200,000 12,000 cash 29 Nov 1996 1 Jan 1996 M O ordinary 2,500,000 25,000 cash 7 May 1998 1 Jan 1997 N O ordinary 1,853,000 18,530 cash 13 Jun 2007 1 Jan 2007 O O ordinary 1,320,245 13,202 in-kind contribution 25 Jun 2010 1 Jan 2010 P O ordinary 6,500,000 65,000 cash 15 Jun 2012 1 Jan 2011 U O ordinary 40,000,000 400,000 cash 12 Jul 2017 1 Jan 2016 V O ordinary 30,074,426 300,744 cash 4 Jul 2018 1 Jan 2018 Total number of shares 92,947,671 Total par value of share capital 929,477 Total share capital 929,477 Par value of each share is PLN 10.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 63 As at 30 June 2025, the total number of voting rights attached to all shares issued by the Bank was 92,947,671 and did not change relative to 31 December 2024. Each share carries the right to one vote at the General Meeting. Other shareholders hold in total 27.8% of shares in the Bank's share capital. As at the date of these condensed interim consolidated financial statements, no changes in the ownership structure of major holdings were known. Treasury shares As at 30 June 2025, the Bank held 37,775 treasury shares, representing 0.04% of its share capital and 0.04% of total voting rights in the Bank. In accordance with the Commercial Companies Code, the Bank may not exercise voting rights attached to its own shares. Share premium Share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. As at 30 June 2025 and 31 December 2024, the share premium was PLN 532,851 thousand. 33. Issue, redemption and repayment of debt and equity securities In the six months ended 30 June 2025, there were no issues, redemptions or repayments of any debt or equity securities.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 64 34. Contingent assets and liabilities 30 Jun 2025 unaudited 31 Dec 2024 Contingent liabilities: 4,147,116 3,673,653 Financial obligations, including: 3,670,787 3,167,402 open lines of credit, including: 3,544,964 3,155,237 revocable 3,078,518 2,641,328 irrevocable 466,446 513,909 open import letters of credit 7,137 12,165 loan commitments, including: 118,686 - irrevocable 4,420 - other 114,266 - Guarantees, including: 398,131 449,583 credit repayment sureties and guarantees 13,896 13,910 performance bonds 384,235 435,673 Underwriting 78,198 56,668 Contingent assets: 1,853,851 1,942,893 Financial assets, including: - 4,300 other - 4,300 Guarantees 1,827,083 1,913,394 Other 26,768 25,199 Total contingent assets and contingent liabilities 6,000,967 5,616,546 In addition, as at 30 June 2025, the Bank had contingent liabilities of PLN 11,731 thousand under firm offers, resulting from the issuance of a positive decision to grant a mortgage loan to a client (31 December 2024: PLN 1,431 thousand).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 65 35. Hedge accounting 35.1. Hedge accounting policies Hedge accounting is an integral part of the financial risk management process. Financial risk is managed as part of the risk management process in place at the Bank. The Bank hedges the interest rate risk in the banking book The Bank uses fair value hedges to hedge the fair value of fixed-rate Treasury bonds. 35.2. Cash flow hedge accounting As at 30 June 2025, the BOŚ Group did not apply cash flow hedge accounting. 35.3. Fair value hedge accounting During the hedging period, the Bank hedges the volatility of fair value of fixed -rate bonds, resulting from movements of market interest rates. The hedged item is part of the Treasury bonds held in the HtCS business model. The hedging instrument is an Inte rest Rate Swap (IRS), under which the Bank makes a payment based on a fixed interest rate and receives a coupon based on a variable rate (6M WIBOR). Establishing a hedging relationship results in the netting of changes in the fair value of the hedging instrument and the hedged item in the statement of profit or loss. Only one type of risk (i.e. the risk of interest rate volatility) is hedged. The spread between quoted prices of the Treasury bonds and the IRS transactions is not hedged. The hedge is expected to be highly effective in offsetting fair value changes resulting from the hedged risk. Hedge effectiveness is verified using prospective and retrospective hedge effectiveness tests: retrospective assessment of the prospective effecti veness test, performed to confirm the high probability of sufficient cash flows from the hedged item, as estimated in the prospective test, and the test based on the hypothetical derivative method, which involves presenting the hedged item as a hypothetica l derivative. Effectiveness testing involves comparing the changes in the fair value of the hedging instrument and the hypothetical derivative. The test yields a positive result if the Hedge Effectiveness Ratio (HER) falls within the range of 80-125%. The tests are performed on a monthly basis. The Bank does not identify any significant sources of ineffectiveness the fair value hedging. Changes in the fair value of the hedged item resulting from movements of market interest rates are recognised in the statement of profit or loss. Changes in the fair value of the bonds not attributable to changes in the hedged risk are recognised under revaluation surplus. Changes in the measurement of the hedging instrument are recognised in the statement of profit or loss. As at 30 June 2025, the Bank had one fair value hedge relationship – a hedge established on 20 October 2015. The hedged item within the hedging relationship established in 2015 includes PLN 240 million of Treasury bonds DS0725, maturing in July 2025. As at 30 June 2025, the Group recognised in the statement of profit or loss PLN 209 thousand resulting from changes in the fair value of the bonds due to interest rate movements and changes in the fair value of the IRS transactions. PLN 55 thousand was recognised under the revaluation surplus, representing the sum of the impact of the bonds on equity as at the date the hedge relationship was established (PLN -11,345 thousand) and the change in the fair value of the bonds resulting fro m the unhedged part of the risk (spread between the quoted prices of the bonds and the IRS transactions).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 66 30 Jun 2025 unaudited 31 Dec 2024 carrying amount nominal value fair value* carrying amount nominal value fair value* Hedging instruments Interest Rate Swap (IRS) – positive valuation 1,059 258,000 590 8,693 258,000 4,816 Hedged items Treasury bonds – positive valuation 247,118 240,000 -381 240,828 240,000 -3,620 Total effect on profit or loss 209 1,195 * for the hedged bonds it is an adjustment to the fair value
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 67 36. Fair value of financial assets and liabilities The carrying amount and the fair value of financial assets and liabilities other than measured at fair value disclosed in the financial statements are presented below. Carrying amount 30 Jun 2025 unaudited Fair value 30 Jun 2025 unaudited Carrying amount 31 Dec 2024 Fair value 31 Dec 2024 FINANCIAL ASSETS Cash and cash equivalents 4,415,502 4,415,502 3,427,224 3,427,224 deposits with other banks 219,786 219,786 28,853 28,853 debt securities 4,195,716 4,195,716 3,398,371 3,398,371 Amounts due from banks 193,572 193,870 14,397 14,397 Amounts due from clients including: 10,083,279 10,036,478 10,104,635 10,090,221 amounts due in PLN 8,111,535 8,065,703 8,115,602 8,104,798 amounts due in foreign currencies 1,971,744 1,970,775 1,989,033 1,985,423 Investment securities – measured at amortised cost 1,790,167 1,788,528 1,843,978 1,827,098 Debt securities, including: 1,790,167 1,788,528 1,843,978 1,827,098 Treasury securities 1,360,802 1,372,761 1,346,105 1,351,695 other 429,365 415,767 497,873 475,403 FINANCIAL LIABILITIES Amounts due to central bank and other banks 165,237 165,237 244,519 244,519 Amounts due to clients, including: 19,773,919 19,696,248 19,100,807 18,893,349 institutional clients 7,039,317 7,039,592 7,567,852 7,568,410 retail clients 12,196,517 12,196,808 10,964,372 10,961,891 other clients 61,438 61,438 62,889 62,889 international financial institutions 476,647 398,410 505,694 300,159 Liabilities arising from issue of bank securities 102,709 22,779 199,762 21,674 Subordinated liabilities 199,871 102,489 102,838 102,322 Cash and cash equivalents
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 68 This line item includes term deposits with other banks with original maturities of up to three months, as well as NBP money market bills. Amounts due from banks Amounts due from banks include interbank deposits, nostro accounts and loans. Fair value of interbank deposits, due to their short -term nature (fixed -rate interbank deposits up to six months) is equal to their carrying amount. Bonds issued by banks were me asured at fair value, after accounting for a change in the credit spread calculated on the basis of comparable issues by similar banks. Amounts due from clients Amounts due from clients are disclosed net of impairment charges. Amounts due from clients in the balance sheet are chiefly measured at amortised cost using the effective interest rate (99% of the carrying amount of credit facilities). The fair value of loans is assumed to be their value resulting from currently estimated future principal and interest cash flows (separately for loans denominated in foreign currencies and for loans denominated in PLN) calculated using the effective interest rate for each loan (except for loans with an undetermined schedule or non -performing loans, for which the fair value is assumed to be the same as carrying amount) and discounted at the average effective interest rate of the loans granted over the last t welve months. For mortgage loans, account was taken of prepayments. In the case of foreign currency loans, which the Bank ceased to grant, an average effective interest rate on the corresponding loans denominated in PLN was applied, adjusted for the difference between the rates in specific currencies and PLN. Investment securities measured at amortised cost Investment securities measured at amortised cost include Treasury bonds held within the HtC business model. The fair value of the bonds is assumed to be the current valuation derived from quoted market prices plus accrued interest. Amounts due to central bank and other banks Amounts due to the central bank as well as liabilities arising from repo transactions are disclosed at carrying amount. Liabilities arising from repo transactions were recognised at carrying amounts due to the lack of available market data necessary to calculate the fair value of basic repo transactions of the Bank with the counterparty. Interbank deposits, due to short maturities, were disclosed at carrying amounts, and the borrowings (principal and interest) were discounted using the average effective interest rate. Amounts due to clients Amounts due to clients disclosed in the statement of financial position are measured at amortised cost, using the effective interest rate method. The fair value of amounts due to clients is assumed to be their value resulting from discounting principal and interest for all deposits at the weighted average interest rate that was in effect for deposits accepted in June 2025. In the absence of payment schedules for current accounts, they were recognised at the carrying amount. Amounts due to international financial institutions (principal and interest) were discounted using the average effective interest rate (for EUR) or the interest rate of the most recent transaction executed in a given currency (for PLN). Liabilities arising from issue of bank securities Liabilities arising from issue of securities are measured at fair value taking into account change in credit spread for PLN-denominated bonds, determined based on the latest issue carried out by the Bank. Subordinated liabilities Subordinated liabilities were measured at fair value, with the change in credit spread determined on the basis of the latest issue made by the Bank.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 69 37. Classification of financial instruments measured at fair value based on the fair value measurement method applied Under IFRS 13, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit pr ice) regardless of whether that price is directly observable or estimated using another valuation technique. When estimating fair value, the Group takes into account the adjustment for counterparty credit risk. As at 30 June 2025 and 31 December 2024, the Group classified financial assets and liabilities measured at fair value to three categories (levels) based on the measurement method: 1. Level 1: mark-to-market valuation directly from available quotations of instruments on the market. This applies to quoted equity and debt securities and NBP bills (quotations based on the reference rate). 2. Level 2: mark-to-model valuation approach, with model parameterisation based on active market quotations for the type of instruments concerned or prices obtained in transactions concluded close to the reporting date on normal market terms. Fair value is also determined by reference to other, simila r instruments, by analysing discounted cash flow and with other valuation methods commonly used by market participants, and in the case of financial instruments to which no valuation method can be applied – at cost. This applies to unlisted bank securities, equity securities and derivatives (including forward transactions for securities), except where they meet the criteria for classification to Level 3. Additionally, in the portfolio of assets available for sale Dom Maklerski BOŚ holds shares of an entity for which there is no active market. Due to the above, the fair value of these securities is based on the valuation model developed by the Company and using comparable values for businesses listed on the Warsaw Stock Exchange. 3. Level 3: mark -to-model valuation approach, with model parameterisation based on active market quotes for a given type of instruments and the model parameters based on estimated risk factors. This applies to municipal securities (measured using the discounted cash flows method, with credit spreads used in the valuation determined on the basis of internal ratings), securities of other banks (prices are determined based on the margins of securities quoted in the market at the time of price determination, issued by selected issuers), unlisted equity securities and illiquid equity securities (measured using the discounted cash flows method). In the case of BOŚ Brokerage House (DM BOŚ), these are financial instruments acquired with the intention to introduce them to regulated trading. Fair value is determined based on an analysis of the company's financial position, taking into account loss allowances.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 70 Financial instruments by fair-value hierarchy level: 30 Jun 2025 unaudited Level 1 Level 2 Level 3 Total Cash and cash equivalents 4,195,716 - 219,787 4,415,503 deposits with other banks - - 219,787 219,787 debt securities 4,195,716 - - 4,195,716 Amounts due from banks - - 193,870 193,870 Financial assets held for trading 21,126 97,907 - 119,033 debt securities 861 - - 861 equity securities 20,245 733 - 20,978 derivative financial instruments 20 97,174 - 97,194 Derivative hedging instruments - 1,059 - 1,059 Investment securities measured at fair value 3,917,466 130,202 1,139,622 5,187,291 debt securities 3,909,731 130,202 1,038,643 5,078,576 equity securities 7,736 - 100,979 108,715 Investment securities measured at amortised cost 1,788,528 - - 1,788,528 Amounts due from clients - - 10,027,116 10,027,116 Total 9,922,836 229,168 11,580,395 21,732,400 30 Jun 2025 unaudited Level 1 Level 2 Level 3 Total Financial liabilities held for trading 1,718 37,233 - 38,951 debt securities - - - - equity securities 1,470 - - 1,470 derivative financial instruments 248 37,233 - 37,481 Derivative hedging instruments - - - - Amounts due to other banks - - 165,237 165,237 Amounts due to clients - - 19,697,953 19,697,953 Liabilities arising from issue of bank securities - - 22,779 22,779 Subordinated liabilities - - 102,489 102,489 Total 1,718 37,233 19,988,458 20,027,409 Changes in securities measured at fair value through other comprehensive income Level 3 At beginning of period 1 Jan 2025 1,191,671 Purchase 152,513 Sale and redemption - 229,368 Total gains and losses 24,806
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 71 in profit or loss - 21,733 in other comprehensive income 46,539 At end of period 30 Jun 2025 1,139,622 31 Dec 2024 Level 1 Level 2 Level 3 Total Cash and cash equivalents 3,398,371 - 28,853 3,427,224 deposits with other banks - - 28,853 28,853 debt securities 3,398,371 - - 3,398,371 Amounts due from banks - - 14,397 14,397 Financial assets held for trading 34,667 111,066 - 145,732 debt securities 18,809 - - 18,809 equity securities 15,835 733 - 16,568 derivative financial instruments 23 110,332 - 110,355 Derivative hedging instruments - 8,693 - 8,693 Investment securities measured at fair value 4,189,870 126,035 1,191,671 5,507,576 debt securities 4,178,111 126,035 1,090,687 5,394,833 equity securities 11,759 - 100,984 112,743 Investment securities measured at amortised cost 1,827,098 - - 1,827,098 Amounts due from clients - - 10,090,221 10,090,221 Total 9,450,006 245,793 11,325,142 21,020,941 31 Dec 2024 Level 1 Level 2 Level 3 Total Financial liabilities held for trading 1,051 57,124 - 58,175 debt securities - - - - equity securities 1,032 - - 1,032 derivative financial instruments 19 57,124 - 57,143 Derivative hedging instruments - - - - Amounts due to other banks - - 244,519 244,519 Amounts due to clients - - 18,893,349 18,893,349 Liabilities arising from issue of bank securities - - 21,674 21,674 Subordinated liabilities - - 102,322 102,322 Total 1,051 57,124 19,261,864 19,320,039 Changes in securities measured at fair value through other comprehensive income Level 3 At beginning of period 1 Jan 2024 1,185,908 Purchase 1,229,140
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 72 Sale and redemption - 1,265,672 Total gains and losses 42,295 in profit or loss - 44,149 in other comprehensive income 86,444 At end of period 30 Jun 2024 1,191,671 Financial instruments may be reclassified between Level 1 and Level 2 based on the availability of quotations from an active market at the reporting date. An instrument is reclassified from Level 2 to Level 3 when an observable input in the valuation is replaced by an unobservable one, or when a new unobservable risk factor is applied in the valuation, provided this has a material impact on the instrument’s fair value. An instrument is reclassified from Level 3 to Level 2 when an unobservable input in the valuation is replaced by an observable one or when the effect of the unobservable input on the instrument’s fair value ceases to be significant. In the period from 1 January to 30 June 2025, there were no reclassifications between fair value hierarchy levels. Measurement of Level 3 instruments does not affect the statement of profit or loss. Measurement of investment debt and equity securities measured at fair value and classified as Level 3 represents a significant estimate and judgment. Debt securities are measured by the Bank based on discounted cash flows, taking into account the credit spread determined based on internal ratings, which is the main source of uncertainty in the measurement. As at 30 June 2025, the sensitivity of the measurement to a +/- 1 bp change in the credit spread (unobservable model parameter) was PLN 421.5 thousand (31 December 2024: PLN 235.7 thousand).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 73 Notes to the statement of cash flows 38. Cash and cash equivalents For the purpose of the statement of cash flows, cash and cash equivalents include the following highly liquid balances with maturities of less than three months: 30 Jun 2025 unaudited 31 Dec 2024 Cash in hand 15,718 18,722 Cash and balances at central bank 832,515 856,491 Deposits with other banks, recognised as cash equivalents 219,787 28,853 NBP money market bills – recognised as cash equivalents 4,195,716 3,398,371 Total 5,263,736 4,302,437 The balance of cash and cash equivalents includes the obligatory reserve maintained with the NBP. In accordance with section 12 of NBP Resolution No. 40/2015, the Bank may use the funds held in the obligatory reserve for current cash settlements. The amount of the obligatory reserve declared to be maintained in June 2025 was PLN 659,535 thousand (June 2024: PLN 588,010 thousand). The Bank is required to maintain the average cash balance per month above the declared obligatory reserve. 39. Related-party transactions As at 30 June 2025, Bank Ochrony Środowiska S.A. was the parent of Dom Maklerski BOŚ S.A., BOŚ Leasing S.A., as well as MS Wind Sp. z o.o. The National Fund for Environmental Protection and Water Management (NFOŚiGW) was the parent of BOŚ S.A. The key management personnel are also considered to be related parties. Transactions with the National Fund for Environmental Protection and Water Management, i.e. the main shareholder of the Bank As at 30 June 2025, the amount of funds provided by the NFOŚiGW for preferential loans under the Prosument programme for the financing of purchase and installation of renewable energy sources was PLN 2,813 thousand (31 December 2024: PLN 4,125 thousand). NFOŚiGW is a party related to the State Treasury. The Bank enters into transactions with entities related to the State Treasury, mainly with entities operating in the public finance sector.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 74 39.1. Key management personnel 39.1.1. Loans to and deposits from members of the Management Board and the Supervisory Board of the Group As part of the operating activities, transactions with members of the management body and the key management personnel comprise mainly loans and deposits. The balances of individual items of the statement of financial position as at 30 June 2025 and 31 December 2024 as well as income and expenses for the 6 months ended 30 June 2025 and 31 December 2024 are presented below. 30 Jun 2025 unaudited 31 Dec 2024 Loans 7 9 Commitments under granted line of credit 8 6 Deposits 17 82 Total 32 97 for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Interest expense on deposits - 2 Interest income on loans - - The credit and deposit products were provided to the key management personnel on the same terms as those offered by the Bank to the general public. 39.1.2. Remuneration of the key management personnel of the Bank Item 6 months ended 30 Jun 2025 unaudited 6 months ended 30 Jun 2024 unaudited Management Board short-term employee benefits* 1,823 1,287 post-employment benefits - 1,022 termination benefits - - Total 1,823 2,309 Supervisory Board short-term employee benefits** 971 806 Total 971 806 * Short-term employee benefits include: remuneration under a contract of mandate, reimbursement of overpaid social security contributions, income from PPK contributions, remuneration for a Supervisory Board Member temporarily delegated to perform the duties of a Management Board Member. ** Short -term employee benefits include: remuneration for serving on the Supervisory Board, reimbursement of overpaid contributions, reimbursement of travel expenses related to Supervisory Board meetings, income from training provided, income from PPK contributions.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 75 39.2. Executive compensation policy at the Bank In order to meet the requirements set out in the Regulation of the Minister Finance, Development Funds and Regional Policy of 8 June 2021 on banks’ risk management and internal control systems and remuneration policy, and in accordance with Directive 2013/ 36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, the Bank has implemented a Remuneration Policy, approved by the Supervisory Board of BOŚ S.A. The Remuneration and Appointments Committee of the Supervisory Board gives its opinion on the Remuneration Policy, gives its opinion on and drafts rules of compensation of members of the Management Board, gives its opinion on the amount of variable remuner ation for managers, gives its opinion on and monitors the amount of variable remuneration for managers at the Bank responsible for second -level risk management, management of the compliance function and management of the internal audit function. The maximum amount of variable remuneration for a person in a managerial position may not exceed 100% of the person’s fixed remuneration. The General Meeting of Bank Ochrony Środowiska S.A. has the authority to grant its consent to increase the maximum lev el of variable remuneration up to 200% of the fixed remuneration, in accordance with the procedure outlined in Section 25.3.4.b) and Section 25.3.4.c) of the Regulation of the Minister of Finance, Funds, and Regional Policy. The increase in the maximum amount of variable remuneration referred to in the preceding sentence does not apply to members of the Management Board. In the reporting period, following the end of the retention period, phantom shares were converted into cash and paid out to seven individuals in managerial positions with a material impact on the Bank’s risk profile. The payments totalled PLN 284,259, gross. 40. The variable remuneration for 2024 has not yet been determined or awarded. Dividends paid (aggregate or per share), separately for ordinary shares and other shares No dividend was paid or declared in the six months ended 30 June 2025. 41. Risk and capital management 41.1. Credit risk Definition of credit risk Credit risk is defined as the risk of potential loss due to default by a client or counterparty at a contractual date. Credit risk management methods For details of the risk management methods, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. In the six months ended 30 June 2025, the Group pursued its credit risk management policy on an individual basis (credit transaction) and on a portfolio basis taking into account the level of risk appetite. The risk appetite was determined within the limits set by prudent and stable risk management practices and was assumed to be moderate. Processes established for risk management For details of risk management processes, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. In the six months ended 30 June 2025, the Bank continued efforts to improve the efficiency of its risk assessment processes, including optimisation of the credit monitoring, credit decision and credit application processes, and took steps to reduce the credit portfolio concentration level.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 76 In order to reduce credit concentration, the Bank took steps to lower its exposure to groups of related clients. A new client segmentation model was introduced to support the diversification of its credit portfolio. Techniques and tools for credit risk measurement For detailed information on the techniques and tools used to measure credit risk, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024 . Concentration risks, methods of their assessment and monitoring For details of the concentration risk management at the Bank, see the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. In the six months ended 30 June of 2025, to reduce credit concentration in its portfolio, the Bank revised internal limits, including the limit of exposure to a client or a group of related clients, and strengthened the procedures for identifying related entities. Methodology for recognising impairment of credit exposures At each reporting date, the Group performs a review of its credit exposures, which involves identifying credit exposures threatened with impairment and exposures with regard to which a significant increase in credit risk has been reported since their initi al recognition – taking into account reasonable and supportable information, including forward -looking data. Subsequently, it determines expected credit losses allowances based on the classification of exposures to three Buckets depending on changes in credit quality. As a general rule, all new exposures other than POCI assets and clients on the watch list are classified as Bucket 1 exposures. For details of the methodology for recognising impairment of credit exposures, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. 41.1.1. Amounts due from banks Below are presented gross amounts due from banks by rating groups. 30 Jun 2025 unaudited 31 Dec 2024 AA- - - A+ 42 1,111 A 22,495 13,072 A- 212 214 BBB+ - - Unrated 170,822 - Total 193,571 14,397
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 77 Internal rating Corresponding unified class according to external rating agencies 30 Jun 2025 unaudited Corresponding unified class according to external rating agencies 31 Dec 2024 A AAA, AA+, AA, AA- AAA, AA+, AA, AA- B A+, A, A- A+, A, A- C BBB+, BBB, BBB- 170,822 BBB+, BBB, BBB- D BB+, BB, BB-, B+, B, B- BB+, BB, BB-, B+, B, B- E - Total 170,822 - 41.1.2. Amounts due from clients Amounts due from clients by measurement category and by Bucket are presented below. 30 Jun 2025 unaudited 31 Dec 2024 AMOUNTS DUE FROM CLIENTS MEASURED AT AMORTISED COST Amounts due from clients without indications of impairment, including: 9,214,560 9,287,917 exposures without significant credit risk increase since initial recognition (Bucket 1) 7,139,892 7,316,668 exposures with significant increase in risk since initial recognition (Bucket 2) 2,074,668 1,971,249 Amounts due from clients with indication of impairment and impaired (Bucket 3) 1,699,792 1,592,299 Amounts due from clients that were credit-impaired at the date of initial recognition (POCI) 120,352 120,998 Total amounts due from clients measured at amortised cost (gross) 11,034,704 11,001,214 Loss allowances for: amounts due from clients – (Bucket 1) - 77,321 - 70,477 amounts due from clients – (Bucket 2) - 79,189 - 81,286 amounts due from clients – (Bucket 3) with indication of impairment - 841,201 - 784,795 amounts due from clients that were credit-impaired at the date of initial recognition (POCI) 5,935 5,971 Total loss allowances - 991,776 - 930,587 Total amounts due from clients measured at amortised cost (net) 10,042,928 10,070,627 AMOUNTS DUE FROM CLIENTS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS Fair value 7 32 Total amounts due from clients measured at fair value through profit or loss 7 32 Margin deposits 25,463 27,862 Other amounts due from clients 6,225 6,114 Total amounts due from clients 10,074,623 10,104,635
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 78 41.1.3. Classification of amounts due from clients by measurement category, by segment: 30 Jun 2025 unaudited Corporate clients SME, micro- enterprise and retail clients SME, micro- enterprise and retail clients – housing loans SME, micro- enterprise and retail clients – other loans Total Amounts due from clients measured at amortised cost Amounts due from clients without indications of impairment, including: 7,357,917 1,856,643 1,298,301 558,342 9,214,560 exposures without significant credit risk increase since initial recognition (Bucket 1) 5,355,418 1,784,474 1,261,385 523,089 7,139,892 exposures with significant increase in risk since initial recognition (Bucket 2) 2,002,499 72,169 36,916 35,253 2,074,668 Amounts due from clients with indication of impairment and impaired (Bucket 3), including: 1,394,314 305,478 143,618 161,860 1,699,792 individually assessed 1,258,629 70,494 50,598 19,896 1,329,123 Amounts due from clients that were credit-impaired at the date of initial recognition (POCI) 119,553 799 630 169 120,352 individually assessed 116,668 507 507 - 117,175 Total amounts due from clients measured at amortised cost (gross) 8,871,784 2,162,920 1,442,549 720,371 11,034,704 Loss allowances for: amounts due from clients – (Bucket 1) -68,836 -8,485 -2,766 -5,719 -77,321 amounts due from clients – (Bucket 2) -77,065 -2,124 -654 -1,470 -79,189 amounts due from clients – (Bucket 3) with indications of impairment, including: -632,152 -209,049 -72,665 -136,384 -841,201 individually assessed -564,867 -40,001 -28,327 -11,674 -604,868 amounts due from clients that were credit-impaired at the date of initial recognition (POCI) 6,031 -96 -57 -39 5,935 individually assessed 6,394 58 58 - 6,452 Total loss allowances -772,022 -219,754 -76,142 -143,612 -991,776 Total amounts due from clients measured at amortised cost (net) 8,099,762 1,943,166 1,366,407 576,759 10,042,928 Amounts due from clients measured at fair value through profit or loss Fair value - 7 3 4 7 Total amounts due from clients measured at fair value through profit or loss - 7 3 4 7 Margin deposits 25,463 - - - 25,463 Other amounts due from clients 2,923 3,302 - 3,302 6,225 Total amounts due from clients 8,128,148 1,946,475 1,366,410 580,065 10,074,623
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 79 31 Dec 2024 Institutional clients Retail clients Retail clients – housing loans Retail clients – other credit products Total Amounts due from clients measured at amortised cost Amounts due from clients without indications of impairment, including: 7,500,792 1,787,125 1,402,183 384,942 9,287,917 exposures without significant credit risk increase since initial recognition (Bucket 1) 5,585,243 1,731,425 1,361,310 370,115 7,316,668 exposures with significant increase in risk since initial recognition (Bucket 2) 1,915,549 55,700 40,873 14,827 1,971,249 Amounts due from clients with indication of impairment and impaired (Bucket 3), including: 1,289,720 302,579 151,016 151,563 1,592,299 individually assessed 1,201,892 66,622 51,044 15,578 1,268,514 Amounts due from clients that were credit- impaired at the date of initial recognition (POCI) 120,324 674 655 19 120,998 individually assessed 116,790 510 510 - 117,300 Total amounts due from clients measured at amortised cost (gross) 8,910,836 2,090,378 1,553,854 536,524 11,001,214 Loss allowances for: amounts due from clients – (Bucket 1) -63,350 -7,127 -2,818 -4,309 -70,477 amounts due from clients – (Bucket 2) -79,407 -1,879 -791 -1,088 -81,286 amounts due from clients – (Bucket 3) with indications of impairment, including: -578,102 -206,693 -77,811 -128,882 -784,795 individually assessed -525,494 -38,517 -29,290 -9,227 -564,011 amounts due from clients that were credit- impaired at the date of initial recognition (POCI) 6,119 -148 -132 -16 5,971 individually assessed 6,538 -5 -5 - 6,533 Total loss allowances -714,740 -215,847 -81,552 -134,295 -930,587 Total amounts due from clients measured at amortised cost (net) 8,196,096 1,874,531 1,472,302 402,229 10,070,627 Amounts due from clients measured at fair value through profit or loss Fair value 7 25 10 15 32 Total amounts due from clients measured at fair value through profit or loss 7 25 10 15 32 Margin deposits 27,862 - - - 27,862 Other amounts due from clients 3,419 2,695 - 2,695 6,114 Total amounts due from clients 8,227,384 1,877,251 1,472,312 404,939 10,104,635
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 80 Rating/scoring groups of amounts due from Group clients (gross), by client segment, are presented below. Rating* 30 Jun 2025 unaudited 31 Dec 2024 Amounts due from corporate clients (1-3) 31,665 10,317 (4-5) 103,077 261,490 (6-7) 1,459,971 1,364,760 (8-9) 2,387,963 2,564,955 (10-11) 3,071,656 2,883,584 (12-13) 999,357 1,200,508 (14-16) 553,324 361,618 unrated 264,771 263,611 Total amounts due from corporate clients 8,871,784 8,910,843 Amounts due from SME, micro-enterprise and retail clients unrated 2,162,927 2,090,403 Total amounts due from SME, micro-enterprise and retail clients 2,162,927 2,090,403 Total 11,034,711 11,001,246 General characteristics of the rating classes are as follows: Rating 1 Highest credit quality Rating 2 Very high credit quality Rating 3 High credit quality Ratings 4-5 Very good credit quality Ratings 6-7 Good credit quality Ratings 8-9 Satisfactory credit quality Ratings 10-11 Mediocre and poor credit quality Ratings 12-13 Very poor credit quality Ratings 14-16 No creditworthiness (credit quality does not exist). The ratings are presented as at the reporting date. * The ratings are consistent with the Bank's internal classification, where 1 is the best rating and 16 is the worst rating.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 81 41.1.4. Concentration of exposures to industries and geographical markets, with assessment of the concentration risk Industry 30 Jun 2025 unaudited Credit risk exposure Percentage share in total Generation and supply of electricity, gas, steam, hot water and air for air conditioning systems 1,211,972 11.0% Real estate activities 1,041,158 9.4% Public administration and defence, compulsory social security 1,035,858 9.3% Wholesale trade, except trade in motor vehicles 822,231 7.4% Construction of buildings 746,880 6.8% Hospitality 366,553 3.3% Telecommunications 298,044 2.7% Sports, entertainment and recreational activities 260,013 2.4% Financial services, except insurance and pension funds 234,602 2.1% Manufacture of metals 216,042 2.0% Manufacture of food products 194,375 1.8% Civil engineering 183,261 1.7% Activities of head offices; management consultancy 175,448 1.6% Other personal service activities 144,040 1.3% Manufacture and processing of coke and refined petroleum products 131,570 1.2% Manufacture of other non-metallic mineral products 129,400 1.2% Other sectors, including: 3,843,264 34.8% SME, micro-enterprise and retail clients 2,162,927 19.6% Total gross amounts due from clients 11,034,711 100.0% Loss allowances - 991,776 Margin deposits 25,463 Other amounts due from clients 6,225 Total net amounts due from clients 10,074,623
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 82 Industry 31 Dec 2024 Credit risk exposure Percentage share in total Generation and supply of electricity, gas, steam, hot water and air for air conditioning systems 1,266,657 11.5% Real estate activities 1,193,863 10.9% Public administration and defence, compulsory social security 1,055,683 9.6% Wholesale trade, except trade in motor vehicles 881,899 8.0% Construction of buildings 731,492 6.6% Hospitality 359,520 3.3% Activities of head offices; management consultancy 283,961 2.6% Financial services, except insurance and pension funds 234,899 2.1% Manufacture of food products 230,979 2.1% Telecommunications 185,781 1.7% Manufacture of metals 175,300 1.5% Sports, entertainment and recreational activities 144,946 1.3% Other personal service activities 140,809 1.3% Manufacture of other non-metallic mineral products 138,932 1.3% Manufacture and processing of coke and refined petroleum products 135,786 1.2% Warehousing and support activities for transportation 116,420 1.1% Renting and leasing 115,938 1.1% Specialised construction works 113,479 1.0% Other sectors, including: 3,494,902 31.8% retail clients 2,090,403 19.0% Total gross amounts due from clients 11,001,246 100.0% Loss allowances - 930,587 Margin deposits 27,862 Other amounts due from clients 6,114 Total net amounts due from clients 10,104,635
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 83 41.1.5. Debt securities Securities by rating assigned to issuers 30 Jun 2025 unaudited State Treasury NBP Banks Public finance Other financial institutions Corporate Total 1 - - - - 50,970 - 50,970 6 5,270,533 - - - 348,746 - 5,619,279 7 - - 720,741 - - - 720,741 None - 4,195,716 - 275,900 - 202,714 4,674,330 Total 5,270,533 4,195,716 720,741 275,900 399,716 202,714 11,065,320 31 Dec 2024 State Treasury NBP Banks Public finance Other financial institutions Corporate Total 1 - - - - 50,212 - 50,212 6 5,539,677 - - - 414,811 - 5,954,488 7 - - 866,109 - - - 866,109 None - 3,398,371 - 251,732 - 135,079 3,785,182 Total 5,539,677 3,398,371 866,109 251,732 465,023 135,079 10,655,991 The tables present a unified rating scale, as specified below. If an issuer is rated by more than one agency, the highest rating is presented. For municipal bonds for which there is no active market, internal ratings are assigned, in one of the following categories: 4-5 Very good credit quality 6-7 Good credit quality 8-9 Satisfactory credit quality 10 Mediocre and poor credit quality Risk classes for issuers of financial instruments serviced by the Bank are assigned in accordance with the Bank’s credit rating methodology. Internal rating Public finance 30 Jun 2025 unaudited Corporate 30 Jun 2025 unaudited Public finance 31 Dec 2024 Corporate 31 Dec 2024 5 - - 953 - 6 68,486 - 65,808 - 7 154,165 90,865 113,171 91,059 8 53,249 - 71,800 - 10 - - - - 11 - 110,988 - 40,672 unrated - 861 - 3,348 Total 275,900 202,714 251,732 135,079
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 84 41.2. Financial risk in the banking book and the trading book, and risk limits The financial risk in the Group is concentrated mainly at the Bank and at Dom Maklerski BOŚ S.A. (DM BOŚ S.A.) and includes: 1. liquidity risk, 2. market risk, including: a. interest rate risk (in the banking book and the trading book), b. currency risk (mainly in the trading book; currency risk from the banking book is transferred to the trading book), c. other risks (general and specific risk of equity instruments, commodities risk and position risk in collective investment undertakings). Liquidity risk and interest rate risk occur mainly at the Bank, and currency risk – at DM BOŚ S.A. (in the trading book and the non -trading book) and at the Bank (in the trading book; currency risk from the banking book is transferred to the trading book). DM BOŚ S.A. is also exposed to equity risk, commodity price risk and position risk at collective investment undertakings. For detailed information on financial risk at the BOŚ Group, see the full -year consolidated financial statements of the Group for the year ended 31 December 2024. In the six months ended 30 June 2025, the Group monitored the economic and market situation associated with the war in Ukraine and analysed its impact on financial risks, including the market and liquidity risks. The levels of individual risks remained within the limits applied by the Group. Impact of the war in Ukraine on financial risk, including liquidity risk The BOŚ Group monitors the economic and market situation, in particular the risk of major sudden external events likely to have a significant indirect impact on the Bank’s situation. In the six months ended 30 June 2025, no significant indicators suggesting an increase in financial risk due to the war in Ukraine were recorded. 41.2.1. Liquidity risk The purpose of liquidity management by the Group is to maintain the ability to finance assets and pay liabilities in a timely manner and to maintain a sustainable structure of assets and liabilities, which ensures a safe liquidity profile in specific time bands, split into liquidity in PLN and the main foreign currencies, but mostly – for the total liquidity position. The liquidity risk management strategy and processes are specifically tailored to align with the Bank’s and the BOŚ Group’s business profile and scale. The structure and organisation of the liquidity risk management function includes all levels of the Bank’s organisational structure and operates within the three lines of defence. A particular role in the liquidity risk management process is played by the Management Board of the Bank and the Asset and Liability Committee (ALCO). For detailed information on liquidity risk at the BOŚ Group, see the full -year consolidated financial statements of the Group for the year ended 31 December 2024. To measure the liquidity, as well as the intra -day, current, short-term, medium-term and long-term liquidity risk, the Bank uses the relevant tools, also described in the full-year financial statements. To evaluate the effectiveness of the liquidity risk management process, for most of these measures, limits or warning thresholds are established within a hierarchical framework of internal liquidity risk limits. These thresholds are set at various levels i ncluding the Supervisory Board, the Management Board, and the ALCO Committee. The limits and warning thresholds undergo regular reviews (at least annually) to ensure effective liquidity monitoring. The limits and warning thresholds define the framework for the Bank’s liquidity tolerance and are consistent with
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 85 the Bank’s risk appetite. The shaping of an appropriate liquidity risk profile is supported by taking into account the cost of liquidity under the Bank's transfer pricing system. The measures and tools used by the Bank are reviewed on a regular basis and are regularly updated to better map the liquidity profile. Liquidity risk reports are presented to all the Bank's units involved in the liquidity risk management process. For details, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. Overall liquidity risk profile The main source of funding for the Bank continues to be a systematically built and diversified deposit base with a share of stable retail deposits (and deposits from corporate clients and the public sector), followed by loans from international financial i nstitutions (which, together with long -term bilateral interest rate swap agreements secured by debt papers and FX swap transactions, constitute a source of liquidity funding in foreign currencies). The Bank monitors the risk of concentration of the deposit base on an ongoing basis. The Bank maintains its liquid assets primarily in the form of highly liquid NBP bills, which accounted for 43% of the liquid securities portfolio as at 30 June 2025, and bonds with low specific risk, making up 57% of the liquid portfolio as at the same date. The portfolio of these securities is supplemented with cash and funds held with the National Bank of Poland (above the declared obligatory reserves) and in nostro accounts with other banks. As at 30 June 2025, liquid assets amounted to approximately PLN 9,864 million. Liquid assets constitute a buffer to secure liquidity in potential crisis situations, i.e. they can be pledged, liquidated under repo transactions or sold at any time without significant loss of value. The Bank may access additional funding sources through a technical loan and a lombard loan from the NBP and, under exceptional circumstances, may apply for a refinancing facility from the NBP. The Bank determines internal capital for liquidity risk, which is considered a significant constant risk, in accordance with the applicable internal capital estimation process. This capital is estimated on the basis of the cost of restoring regulatory and internal measures and liquidity limits under the conditions of stress test scenarios. Measures of liquidity risk The Bank establishes supervisory liquidity metrics in accordance with the supervisory regulations detailed in the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024 (including LCR and NSFR), and reports them to the National Bank of Poland. In the six months ended 30 June 2025, the supervisory liquidity measures, i.e. LCR and NSFR, were calculated daily (i.e., every working day), and remained at a safe level, significantly above the regulatory requirements. As at 30 June 2025, these measures were as follows: Measure* 30 Jun 2025 31 Dec 2024 Supervisory limit LCR 239% 219% 100% NSFR 176% 171% 100% As part of its risk management system, the Bank has in place an Emergency Liquidity Action Plan approved by the Management Board, which sets out potential sources of deterioration/loss of liquidity, rules of conduct and contingency powers. Its purpose is t o ensure the uninterrupted continuation of operations and preservation of liquidity in the event of crisis situations. In addition, the Bank also conducts liquidity stress tests in accordance with the Liquidity Risk Stress Testing Programme. The objective of these tests is to assess the Bank's position in the event that highly unfavourable risks materialise. The specific type and extent of these risks are dynamically established, taking into account the current situation of the Bank and its clients and the prevailing market conditions. For further information on stress testing, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 86 The internal stress tests performed in the six months ended 30 June 2025, as in 2024, show that the Bank has a stable liquidity position and its liquid assets (excess liquidity) allow it to survive the assumed stress scenarios. In the six months ended 30 June 2025, as in 2024, the Group’s liquidity position was monitored on a regular basis and remained safe. 41.2.2. Interest rate risk Interest rate risk is defined as a potential negative impact of changes in interest rates on the projected financial result, economic value of equity and present value of debt securities held. The interest rate risk is primarily generated in the Bank, both in the banking book and the trading book. Interest rate risk in the banking book The main purpose of interest rate risk management in the banking book is to seek stabilisation and optimisation of net interest income (NII) while limiting the negative effect of market interest rate movements on economic value of equity (EVE). For detailed information on interest rate risk management in the banking book, see the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. Measures of interest rate risk in the banking book In order to control the interest rate risk in the banking book, the Bank uses three measures: sensitivity of net interest income, taking into account changes in market value, to interest rate movements by +/-200 bps (NII+MV), sensitivity of net interest income to interest rate movements by +/-200 bps (NII), and sensitivity of economic value of equity to interest rate movements by +/-200 bps (EVE). The following table provides a comparison of the NII+MV, NII and EVE measures between 30 June 2025 and 31 December 2024. ΔNII+MV ΔNII ΔEVE -200 bps +200 bps -200 bps +200 bps -200 bps +200 bps 30 Jun 2025 87,084 -71,683 -45,062 47,378 126,104 -115,941 31 Dec 2024 112,600 -98,325 -29,452 30,471 178,313 -164,838 Change -25,516 26,642 -15,610 16,907 -52,209 48,897 In the six months ended 30 June 2025, both NII and EVE were within the limits consistent with the risk appetite and risk tolerance approved by the Supervisory Board. Changes in the values of these measures have a certain cyclical nature, which is due to the regular approximation of the timing of the repricing of variable rate positions and the maturity of fixed rate pos itions. The increase in sensitivity of net interest income in the six months ended 30 June 2025 to a 200 bps decrease in market interest rat es was caused chiefly by a higher balance of NBP money market bills. The decrease in sensitivity of EVE to interest rate hikes was mainly attributable to a lower amount of Treasury bonds. In the six months ended 30 June 2025, the war in Ukraine had no dire ct impact on the interest rate risk measures in the banking book. In accordance with the Commission Delegated Regulation (EU) 2024/856 and the EBA/GL/2022/14 Guidelines on the management of interest rate risk arising from non -trading book activities, the Bank is obliged to carry out a Supervisory Outlier Test (SOT).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 87 Results of the SOT for the six standard shock scenarios specified in the Guidelines are presented in the table below as at 30 June 2025 and 31 December 2024, along with their change. ΔNII in a given SOT scenario ΔEVE in a given SOT scenario parallel shock up parallel shock down parallel shock up parallel shock down steepener shock1 flattener shock2 short rates shock up3 short rates shock down3 30 Jun 2025 26,357 -52,111 -110,656 63,888 38,084 -96,227 -128,339 70,161 31 Dec 2024 19,344 -40,379 -170,000 97,047 40,500 -112,776 -164,587 89,435 Change 7,013 -11,732 59,344 -33,159 -2,416 16,549 36,248 -19,274 1 Sharper shock (decrease in short-term rates and increase in long-term rates). 2 More moderate shock (increase in short-term rates and decrease in long-term rates). 3 Interest rate shocks in the short run are extinguished in longer tenors. The results of the SOT analysis indicate that the Bank is most vulnerable to a decline in the economic value of equity (EVE) in the short rates shock up scenario. The level of sensitivity of the economic value of equity is below the regulatory warning thresholds, which indicates moderate exposure to interest rate risk. The Supervisory Outlier Test for NII showed a result of -2.51% of FW/Tier 1 capital, which is within the regulatory limit of -5%. Once a month, the Bank conducts a stress testing analysis examining the development of the interest rate risk in the banking and trading book in case of materialisation of extreme changes in risk factors. The scenarios are described in detail in the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. The results of the stress tests as at 30 June 2025 show that, with extremely adverse market conditions and the Bank’s increased exposure to instruments sensitive to interest rate risk, the banking book risk remained at a safe level. Given the nature of the Bank's business and the structure of its securities portfolio, the interest rate risk in the banking book is consistently significant. The Bank, as part of the ICAAP process, estimates internal capital for this risk. In order to hedge the interest rate risk of 10-year fixed-rate PLN 150 million BGK bonds (issued to the COVID-19 Fund and guaranteed by the State Treasury) held within the HtC&S business model, as of July 2020 the Bank applies the option of measurement at fair value through profit or loss (the FVPL option). The related IRS hedging transactions enable the Bank to change interest on the bonds accrued at a fixed interest rate into interest accrued at WIBOR 6M plus margin, which hedges the Bank’s position against adverse effects of potential increase in market interest rates. Results of the monitoring of the banking book interest rate risk are presented in reports for the Bank’s governing bodies. Interest rate risk in the trading book The objective of interest rate risk management in the trading book is to achieve a financial result in this line of business in keeping with the financial plan, at an acceptable level of the Bank’s exposure to the risk, and to minimise the adverse effects of holding interest rate-sensitive instruments in the trading book. In order to monitor interest rate risk in the trading book, BOŚ S.A. employs appropriate measures and tools (including VaR, BPV, relevant limits, and stress tests), as detailed in the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 88 In the six months ended 30 June 2025, there were no significant changes in the techniques applied to measure the interest rate risk of the Bank’s trading book. The interest rate VaR in the trading book was as follows: Date VaR +500/-300 bps stress tests mean max min as at as at 1 Jan 2025–30 Jun 2025* 165 298 30 224 -3,801 31 Dec 2024 102 205 40 47 -1,077 * 1-day VaR, stress tests: yield curve movement by +500 bps (long position) and by -300 bps (short position). In order to verify the value-at-risk model, the Bank performs a back -testing analysis on a monthly basis, calculated by comparing the maximum losses from the VaR model with actual gains and losses and theoretical changes in profit or loss resulting from revaluation of positions. Results of monthly back-testing are presented in management reports. The utilisation of each limit/warning threshold (minimum 1 -day VaR, BPV, maximum loss) is calculated and monitored as at each business day, and for the BPV warning threshold – also during the day, and reported to the management on a regular basis. Once a month, the Bank conducts a stress testing analysis examining the development of the interest rate risk in the banking and trading book in case of materialisation of extreme changes in risk factors. Results of the analysis show that in the event of extremely adverse market conditions and the Bank’s increased exposure to instruments sensitive to the interest rate risk, both the Bank's banking and trading positions are maintained at a safe level. Results of the monitoring of the banking book and trading book interest rate risk are presented in weekly reports for the Bank’s governing bodies. The interest rate volatility caused by the war in Ukraine did not lead to any material increase in interest rate risk. The measures of interest rate risk in the trading book were monitored on an ongoing basis, and although their levels generally increased, they remained within the limits/warning thresholds applied by the Bank. 41.2.3. Currency risk Currency risk is understood as the risk of loss to the Group due to changes in currency exchange rates. This risk is generated by DM BOŚ S.A. (in the trading and non-trading book) and in the Bank (mainly in the trading book). The objective of the Bank’s currency risk management policy for the banking book is to not maintain open individual positions. Foreign currency exposures arising in the banking book are transferred systematically to the trading book on the same day or on the following business day at the latest. For detailed information on currency risk management, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. The currency risk in DM BOŚ S.A.'s non -trading book is attributable to deposits of foreign currency cash in the accounts of foreign brokers who buy and sell financial instruments on foreign exchanges on behalf of DM BOŚ clients. DM BOŚ S.A. has open curren cy positions in USD and EUR in the non -trading book, and the portfolio’s currency risk is managed within the limit of the total currency position for the trading book and the non -trading book. A currency position resulting from transactions in the banking book which has not been transferred on a given day to the trading book is controlled with end-of-day limits of open currency positions in the banking book. Measures of currency risk In order to monitor the currency risk of open foreign exchange positions (on - and off-balance-sheet) in the trading book of the Bank, as in the case of interest rate risk in the trading book, the Bank employs appropriate measures
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 89 and tools (including VaR, BPV, relevant limits, and stress tests), as detailed in the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. The value of foreign exchange VaR in the trading book of the Bank and of the Group and the impact of the stress test scenario of a 30% decline in the exchange rates of all currencies in relation to PLN/a 50% increase in the exchange rates of all currencies in relation to PLN as at 30 June 2025, and the stress test scenario of a 30% decline/increase in the exchange rates of all currencies in relation to PLN as at 30 June 2024 – on the Group’s profit or loss in semi-annual periods are presented below (maximum, minimum, mean and as at the reporting date). Date VaR Stress tests of the Group – increase/decrease of foreign exchange rates by 50%/30% Bank DM BOŚ BOŚ Group mean max min as at as at as at as at 1 Jan 2025– 30 Jun 2025* 123 356 12 241 1,036 855 -80,171 31 Dec 2024 120 394 4 278 966 843 -62,525 * 1-day VaR, a 50% increase in exchange rates in relation to PLN (short position) and a 30% decrease in exchange rates (long position). In order to verify the value-at-risk model, the Group performs a back-testing analysis on a monthly basis, calculated by comparing the maximum losses from the VaR model with actual gains and losses and theoretical changes in profit or loss resulting from revaluation of positions. Results of monthly back-testing are presented in management reports. Utilisation of the limits/warning thresholds (minimum 1 -day VaR, total position, daily loss) is monitored on each business day, and the utilisation of the warning threshold for the total position – also on an intraday basis. The Bank also conducts intraday monitoring of the warning threshold for the total position in the case of client transactions. Information on the utilisation of limits/warning thresholds is regularly reported to the management of the Bank. Analyses show that the Group’s currency risk during the reporting period remained moderate. Once a month, the Bank conducts stress testing analysis, examining the development of the currency risk in the banking book and the trading book in case of materialisation of extreme changes in risk factors. The Bank tests mainly the impact of extremely un favourable movements in the exchange rates against PLN on foreign exchange transactions using both the historical and parametric methods. The historical method took into account the volatility of foreign exchange rates caused by the war in Ukraine. The outcomes of the stress test analysis indicate that, even under extremely unfavourable market conditions and heightened exposures, the Bank’s currency risk is maintained at a safe level. Results of the currency risk analysis in the trading book are reported at appropriate intervals to the Bank’s governing bodies as part of the existing management information system (for details, see the full-year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024). The volatility of exchange rates caused by the war in Ukraine did not significantly increase the level of currency risk. The measures of currency risk were monitored on an ongoing basis, and although their levels generally increased they remained within the limits/warning thresholds applied by the Bank. 41.2.4. Other market risks Other market risks are general and specific risk of equity instruments, commodities risk and position risk in collective investment undertakings. These risks arise from the effect of movements in prices of equities and commodities as well as investment certificates on the risk of impairment of assets, increase in liabilities or change in profit or loss. These risks are mainly attributable to DM BOŚ S.A.'s trading book.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 90 For more information, see the full -year consolidated financial statements of the BOŚ Group for the year ended 31 December 2024. The volatility of equity and commodity prices and prices of investment certificates caused by the war in Ukraine had no material adverse effect on the level of other market risks. The measures of these risks were monitored on an ongoing basis, and although their levels generally increased they remained within the limits applied by DM BOŚ S.A. 41.3. Non-financial risk 41.3.1. Operational risk For detailed information on the operational risk management system in place at the Bank and the Group, see the full-year financial statements for 2024. In the six months ended 30 June 2025, no significant operational risk events caused by external factors that could affect the stability and safety of the Bank and the BOŚ Group were identified either at the Bank or at its subsidiaries. Following the entry into force of the CRD VI/CRR3 package, in the first half of 2025 the Bank clarified the definition of operational risk. It is now defined as the risk of loss caused by inadequate or failed internal processes, people or systems, or by external events. This includes but is not limited to legal risk, model risk and ICT risk. Following implementation of the changes required by CRD VI/CRR3 as of 2025, in the first half of the year the Bank calculated the capital requirement for operational risk as at 31 December 2024 using the new standardised approach. In addition, in connection with the changes introduced by CRR3, work continued on adapting the operational risk event database and the tools used for COREP reporting. 41.3.2. Compliance risk Compliance risk is defined as a risk of effects of failure to comply with laws, internal regulations and market standards. The Bank maintains compliance with legal regulations, internal policies, and market standards through a comprehensive compliance risk management process. This process encompasses the identification, evaluation, control and monitoring of compliance risks, w ith regular reporting to the Bank's Management Board and Supervisory Board. It also includes the implementation of control mechanisms, their independent oversight, and the reporting of results from this independent monitoring. The basic rules for ensuring compliance as part of the compliance risk management function and process are defined in the BOŚ S.A. Compliance Policy, adopted by the Management Board and approved by the Supervisory Board, and the Compliance Risk Management Rules of Bank Ochrony Środowiska S.A. The Bank has a separate, independent compliance function, which is performed by the Compliance Department, reporting directly to the President of the Bank’s Management Board. Appointment and removal of its head is subject to approval by the Supervisory Board. The compliance function, assisted by all organisational units forming the first and second lines of defence, is responsible for the compliance risk management process, including: • identification of the compliance risk, particularly at the stage of developing new products and internal regulations, • assessment of the compliance risk, • control and monitoring of the compliance risk, • reporting on the risk of non -compliance of the Bank’s operations with applicable laws, internal regulations and market standards. The Bank identifies the following key compliance areas: 1. implementing and monitoring compliance with the laws and market standards, 2. implementing and monitoring compliance with ethical standards, 3. accepting/giving gifts or other benefits,
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 91 4. protection of consumers with regard to collective interests of customers, including protection against unfair market practices, 5. offering products and providing related services, including the implementation of new products (including insurance products), and handling of client complaints, 6. fulfilment of disclosure obligations towards the Bank’s clients, 7. preventing and managing conflicts of interest, trading in financial instruments. The compliance function is also responsible for the management of: 1. anonymous reports of violations of law and the ethical conduct procedures in place at Bank Ochrony Środowiska S.A., 2. reports of actual or potential violations of law within the scope specified in the Whistleblower Protection Act of 14 June 2024. As the parent, the Bank oversees its subsidiaries within its Group. This oversight includes compliance risk management, in particular identifying and assessing compliance risks arising from the activities of individual entities. Responsibility for this process at the Bank lies with the Compliance Department. Ensuring compliance at the BOŚ Group, including compliance risk management and the Group’s compliance control function, is governed by the BOŚ S.A. Internal Control System, the BOŚ S.A. Compliance Policy, the BOŚ Group Compliance Policy, and applicable internal regulations implemented by subsidiaries. In the six months ended 30 June 2025, there were no material non -compliance risk events which would have a material bearing on the Bank's operations and financial statements. 41.4. Model risk For detailed information on the model risk management at the Bank and the BOŚ Group, see the full -year consolidated financial statements of the Group for the year ended 31 December 2024. As at 30 June 2025, the Bank operated a total of 26 models, including 11 material models and 15 non-material models. In the first six months of 2025, following the entry into force of the CRD VI/CRR3 package, the Bank revised the definition of model risk. Model risk is understood as the risk of loss arising from decisions that are essentially based on the outputs of internal models, due to errors in the design, development, parameter estimation, implementation, use, or monitoring of such models. The process of identifying, assessing and monitoring model risk covers the following areas: • inappropriate design of the selected internal model and its features, • inadequate verification of whether the selected internal model is appropriate for the financial instrument or product to be assessed, or for the given market conditions, • errors in the implementation of the selected internal model, • incorrect fair value measurement or incorrect risk measurement due to transaction booking errors in the transaction system, • using the selected internal model or its outputs for purposes other than those for which it was intended or designed, including manipulation of modelling parameters, • untimely or ineffective monitoring or validation of the model’s operation or predictive ability to assess whether the selected internal model continues to serve its intended purpose. 41.5. ESG risk The BOŚ Group provides financing for pro -environmental initiatives that generate both business results and environmental benefits. The Group undertakes to co -finance various projects that contribute to environmental improvement, in particular environmental projects supported by the policies of the state authorities and the European Union, including measures to develop a low-carbon economy.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 92 The Group’s business model is based on the pursuit of maximising green assets through such environmental objectives as climate change mitigation, climate change adaptation, sustainable use and conservation of water and marine resources, transition to a cir cular economy, pollution prevention and control, protection and restoration of biodiversity and ecosystems. The Group actively collaborates on financing eco -friendly initiatives with public and state institutions dedicated to environmental projects. Key partners include the National Fund for Environmental Protection and Water Management, various Regional Environ mental Protection and Water Management Funds, Bank Gospodarstwa Krajowego, and European banks engaged in funding sustainable development. The Bank has extensive structures and specialised expert resources committed to environmental protection. The Group’s mission is also pursued through appropriate ESG risk management. The purpose of this process is to ensure the Group’s sustainable and secure development e.g. through the mitigation and prevention of adverse ESG impacts by addressing the risks a nd taking advantage of the opportunities and potential positive effects of ESG factors. The Bank has adopted a comprehensive regulation on the management of ESG risks, along with an implementing regulation, setting out the risk management objectives and framework. In addition, the Bank has a process in place for identifying ESG risks in the credit risk assessment process, which involves assessment as to whether the client has exposure to ESG risks. If any risks are identified, the next step is their measurement. Depending on the level of ESG risk identified for a client applying for financing, the granting of financing may be made conditional on the implementation of measures to mitigate those risks, or, ultimately, financing may be refused if the ESG risk is deemed unacceptable – regardless of the client’s creditworthiness or the proposed collateral. In the six months ended 30 June 2025, the Bank launched a project to ensure compliance of its activities with regulatory requirements, including the EBA Guidelines on the management of environmental, social and governance (ESG) risks. The project is intended to support the development of a transition plan, enhancement of the ESG risk management system, and creation of methodologies and tools for assessing ESG and climate risks. In accordance with the ESG Strategy adopted in October 2021, the Bank has implemented and pursues a climate policy. The climate policy sets the direction of the Bank’s efforts to counter and adapt to climate change, as well as to achieve emission reduction targets in line with its ESG Strategy. The policy’s objectives are to be achieved by focusing on reducing the Bank’s carbon footprint, supporting the climate transitions of its clients, reducing the financing of carbon -intensive sectors and projects, mana ging climate change risk, tapping the opportunities and potential positive effects of climate change. In accordance with its commitments, the Bank calculates annual greenhouse gas emissions related to its operations (carbon footprint). The results of the calculations are published, among others, in the ESG Report. 41.6. Capital adequacy For detailed information on the capital adequacy management process, its purpose and capital adequacy measures, see the full-year financial statements. Presented below is key information on the capital ratios. In accordance with Article 92 of the CRR, the Group is required to maintain the total capital ratio at a minimum of 8%. The Tier 1 capital ratio and Common Equity Tier 1 capital ratio should amount at least to 6% and 4.5%, respectively. Pursuant to the CRR and the Act on Macroprudential Oversight of the Financial System and Crisis Management in the Financial System of 5 August 2015, financial institutions are required to maintain additional capital buffers for capital ratios. As of 1 Janu ary 2019, the capital conservation buffer is 2.5 percentage points and the countercyclical buffer is 0 percentage points. The Bank and the Group are not required to maintain the other systemically important institution buffer. The systemic risk buffer was released by decision of the Minister of Finance dated 18 March 2020. On 16 December 2024, the Polish Financial Supervision Authority recommended that the Bank should maintain own funds, on a consolidated basis, to cover the additional capital add -on to absorb potential losses resulting from stress conditions at the level of 3.22 percentage points above the total capital ratio referred to in Article 92(1)(a -c) of
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 93 Regulation No. 575/2013, increased by the additional own funds requirement referred to in Article 138.2.2 of the Banking Law and by the combined buffer requirement referred to in Article 55.4 of the Macroprudential Supervision Act. The additional add-on should consist entirely of Common Equity Tier 1 capital. As a result, as at 30 June 2025, the minimum capital ratios recommended by the PFSA for the BOŚ Group were: • Common Equity Tier 1 capital ratio – 10.22%, • Tier 1 capital ratio – 11.72%, • total capital ratio (TCR) – 13.72%. 41.6.1. The BOŚ Group's capital adequacy measures were as follows: 30 Jun 2025 unaudited 31 Dec 2024 Available capital Common Equity Tier 1 capital 2,176,311 2,063,001 Tier 1 capital 2,176,311 2,063,001 Own funds 2,276,311 2,163,001 Risk-weighted assets Total amount of risk-weighted assets 14,038,874 12,556,103 Credit risk and counterparty credit risk 11,634,573 10,100,446 Operational risk 1,965,850 2,059,096 Market risk 430,493 386,640 CVA 7,958 9,922 Capital ratios Common Equity Tier 1 capital ratio 15.50 16.43 Tier 1 capital ratio 15.50 16.43 Total capital ratio 16.21 17.23 Leverage ratio Exposure amount 26,433,078 24,874,219 Leverage ratio 8.2 8.3 Internal capital Internal capital 1,548,708 1,622,744 Internal capital to equity ratio 68.0 75.0 MREL MREL to total risk exposure amount 17.64 18.8 MREL to total exposure measure 9.37 9.5 The capital adequacy ratio of the BOŚ Group as at 30 June 2025 was above the supervisory and internal limits.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 94 Impact of CRR3 on capital adequacy Since 1 January 2025, the Bank has complied with Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024, amending the Capital Requirements Regulation (CRR). The decline in its capital ratios is primarily driven by the identification and higher risk weighting of exposures related to the financing of land acquisitions for development purposes, as well as loans for property development and the construction of residential or commercial projects (so-called ADC exposures). 42. Prudential consolidation 42.1. Basis for preparing consolidated financial data taking into account the principles set out in Regulation 575/2013 on prudential requirements for credit institutions and investment firms (prudential consolidation) Pursuant to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, as amended (the “CRR”), BOŚ Bank S.A. pr epares consolidated financial data taking into account the principles of prudential consolidation. The BOŚ Group’s financial data subject to prudential consolidation has been prepared in accordance with the same accounting policies as those applied to prepare the consolidated financial statements of the BOŚ Group in accordance with IFRS, with the exception of the group of consolidated entities. The BOŚ Group subject to prudential consolidation comprises entities identified in accordance with the prudential consolidation principles set out in the CRR. No. BOŚ Group entities subject to prudential consolidation Status Type of entity 1. Bank Ochrony Środowiska S.A. parent Institution – credit institution 2. Dom Maklerski BOŚ S.A. subsidiary Institution – investment firm 3. BOŚ Leasing S.A. subsidiary Financial institution MS Wind Sp. z o.o. is excluded from prudential consolidation due to its business profile. The company owns and operates wind power plants. The company’s principal business activity is the ‘Generation of electricity’ (PKD code: 3511Z). The activity falls outside the scope of Annex I to the CRD. Therefore, the company does not meet the definition of a financial institution or ancillary services undertaking in accordance with the CRR. The consolidated profit for the current period presented below in the prudentially consolidated financial data may be included in the consolidated Common Equity Tier 1 capital in the calculation of the consolidated Common Equity Tier 1 ratio, the consolidated Tier 1 capital ratio and the consolidated total capital ratio after obtaining the authorisation from the Polish Financial Supervision Authority (PFSA).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 95 42.2. Prudentially consolidated statement of profit or loss Continuing operations for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Interest and similar income, including: 741,508 714,708 financial assets measured at amortised cost 483,464 534,198 assets measured at fair value through other comprehensive income 247,646 168,957 financial assets measured at fair value through profit or loss 10,398 11,553 Interest expense and similar charges, including: - 336,808 - 311,519 financial liabilities measured at amortised cost - 336,808 - 311,519 Net interest income 404,700 403,189 Fee and commission income 90,845 84,386 Fee and commission expense - 25,667 -20,683 Net fee and commission income 65,178 63,703 Dividend income 11,780 12,185 Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) 41,581 24,113 Gain (loss) on investment securities 21,426 29 Gain (loss) on hedge accounting - 986 -962 Gain (loss) on foreign exchange transactions 2,064 6,358 Gain (loss) on derecognition of financial instruments 315 309 Other income 12,942 16,900 Other expenses - 41,945 -46,040 Effect of legal risk of foreign currency mortgage loans - 59,484 -107,523 Net loss allowances - 19,442 3,491 Administrative expenses - 322,785 -289,005 Profit before tax 115,344 86,747 Income tax expense - 29,087 -38,114 Net profit 86,257 48,633
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 96 42.3. Prudentially consolidated statement of financial position Assets 30 Jun 2025 unaudited 31 Dec 2024 Cash and cash equivalents 5,263,736 4,302,437 Amounts due from banks 193,571 14,397 Financial assets held for trading, including: 119,033 145,732 equity securities 20,978 16,568 debt securities 861 18,809 derivative instruments 97,194 110,355 Derivative hedging instruments 1,059 8,693 Investment securities: 6,977,458 7,351,554 equity securities measured at fair value through other comprehensive income 108,715 112,743 debt securities measured at fair value through other comprehensive income 4,948,374 5,268,798 debt securities measured at amortised cost 1,790,167 1,843,978 debt securities measured at fair value through profit or loss 130,202 126,035 Amounts due from clients, including: 10,092,276 10,122,456 measured at amortised cost 10,092,269 10,122,424 measured at fair value through profit or loss 7 32 Investments in subsidiaries 11,799 11,799 Intangible assets 94,653 106,402 Property, plant and equipment 59,884 68,852 Right of use – leases 50,847 47,912 Tax assets: 134,407 147,988 current 1,885 89 deferred 132,522 147,899 Other assets 486,559 394,341 Total assets 23,485,282 22,722,563
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 97 Liabilities 30 Jun 2025 unaudited 31 Dec 2024 Amounts due to central bank and other banks 165,237 244,519 Financial liabilities held for trading, including: 38,951 58,175 equity securities 1,470 1,032 derivative instruments 37,481 57,143 Amounts due to clients 19,785,670 19,111,806 Liabilities arising from issue of bank securities 102,709 199,762 Subordinated liabilities 199,871 102,838 Provisions 357,393 362,978 Tax liabilities: 11,085 14,744 current 10,688 14,744 deferred 397 - Lease liabilities 46,395 44,579 Other liabilities 444,012 358,083 Total liabilities 21,151,323 20,497,484 Equity 30 Jun 2025 unaudited 31 Dec 2024 EQUITY ATTRIBUTABLE TO OWNERS OF PARENT Common equity: 1,461,036 1,461,036 Share capital 929,477 929,477 Treasury shares - 1,292 - 1,292 Share premium 532,851 532,851 Revaluation surplus 79,894 50,555 Retained earnings 793,029 713,488 Total equity 2,333,959 2,225,079 Total equity and liabilities 23,485,282 22,722,563
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 98 43. Additional information As at 30 June 2025, the Group had no material commitments or obligations related to purchase of property, plant and equipment. In the six months ended 30 June 2025, the Group did not make: • significant inventory write-downs, • reversals of any provisions for restructuring costs, • material transactions to purchase or sell property, plant and equipment, • changes in the fair value measurement method for financial instruments measured at fair value, • changes in the classification of financial assets due to a change in their purpose or use. 44. Events after the reporting date On 10 July 2025, the Management Board of Bank Ochrony Środowiska decided to issue up to 700 Series AD unsecured subordinated contingent convertible bonds in bearer form with a nominal value of PLN 500 thousand per bond and maximum total nominal value of up to PLN 350 million, with the issue date set at 29 July 2025. The bonds were issued under the Bank’s bond programme with a total nominal value of PLN 1 billion of bonds issued and outstanding. The issue price was equal to the nominal value. The bonds bear interest at a variable rate of 6M WIBOR plus a margin of 2.90% per annum. The bonds were issued by way of an offering conducted pursuant to Article 33.1 of the Bond Act of 15 January 2015, in conjunction with Article 1(4)(a) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published in connection with a public offering of securities or their admission to trading on a regulated market, and repealing Directive 2003/71/EC (the “Prospectus Regulation”), to be offered exclusively to qualified investors within the meaning of the Prospectus Regulation without the requirement to publish a prospectus or information memorandum, subject to Article 27c of the Bond Act of 15 January 2015, as amended. The bonds were registered with the securities depository operated by the Central Securities Depository of Poland and admitted to trading in the alternative trading system operated by the Warsaw Stock Exchange S.A. on 29 July 2025. The maturity date is 29 J uly 2035, subject to early redemption in accordance with the applicable terms and conditions of the bonds. The settlement of the Series AD unsecured subordinated contingent convertible bonds in the amount of PLN 350 million took place on 29 July 2025. The Bank did not specify the purpose of the issue in the terms and conditions of the bonds. It will seek approval from the Polish Financial Supervision Authority to classify the issue proceeds as Tier 2 instruments.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 99 Signatures of Members of the Management Board Date Name and surname Position held Signature 13 August 2025 Bartosz Kublik President of the Management Board Signed with qualified e-signature 13 August 2025 Piotr Kubaty Vice-President and First Deputy President of the Management Board Signed with qualified e-signature 13 August 2025 Kamil Kuźmiński Vice President of the Management Board Signed with qualified e-signature 13 August 2025 Krzysztof Łabowski Vice President of the Management Board Signed with qualified e-signature 13 August 2025 Michał Należyty Vice President of the Management Board Signed with qualified e-signature Signature of the person in charge of bookkeeping: 13 August 2025 Andrzej Kowalczyk Director of the Accounting Department Signed with qualified e-signature
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 100 II. CONDENSED INTERIM FINANCIAL STATEMENTS OF THE BANK Interim statement of profit or loss of the Bank Continuing operations Note for 3 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2025 unaudited for 3 months ended 30 Jun 2024 unaudited for 6 months ended 30 Jun 2024 unaudited Interest and similar income, including: 367,340 734,768 347,894 704,415 financial assets measured at amortised cost 239,817 476,738 259,203 523,958 assets measured at fair value through other comprehensive income 122,455 247,646 83,153 168,956 financial assets measured at fair value through profit or loss 5,068 10,384 5,538 11,501 Interest expense and similar charges, including: - 186,483 - 373,689 - 170,359 - 348,912 financial liabilities measured at amortised cost - 186,483 - 373,689 - 170,359 - 348,912 Net interest income 4 180,857 361,079 177,535 355,503 Fee and commission income 18,387 36,615 19,208 40,385 Fee and commission expense - 2,853 - 4,939 - 2,786 - 4,817 Net fee and commission income 5 15,534 31,676 16,422 35,568 Dividend income 6 11,651 11,651 - 12,057 Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) 5,443 5,548 - 4,065 1,527 Gain (loss) on investment securities 21,426 21,426 29 29 Gain (loss) on hedge accounting - 419 - 986 - 651 - 962 Gain (loss) on foreign exchange transactions 2,460 2,944 7,074 6,496 Gain (loss) on derecognition of financial instruments 200 315 106 309 Other income 4,559 8,051 4,297 7,138 Other expenses - 16,290 - 30,845 - 29,667 - 36,878 Effect of legal risk of foreign currency mortgage loans - 27,357 - 59,484 - 57,083 - 107,523 Net loss allowances 7 - 9,989 - 30,284 - 9,452 6,154 Administrative expenses - 116,553 - 247,047 - 104,435 - 222,791 Share of profit (loss) of equity-accounted entities 13,867 23,969 9,829 24,743 Profit before tax 85,389 98,013 9,939 81,370 Income tax expense - 16,623 - 20,596 - 4,681 - 31,576 Net profit 68,766 77,417 5,258 49,794 Earnings per share attributable to owners of the parent during period (PLN) 8 basic 0.83 0.54 diluted 0.83 0.54 No operations were discontinued in the six months ended 30 June 2025 or in 2024. The notes presented on the following pages are an integral part of these financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 101 Interim statement of comprehensive income of the Bank Continuing operations for 3 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2025 unaudited for 3 months ended 30 Jun 2024 unaudited for 6 months ended 30 Jun 2024 unaudited Net profit 68,766 77,417 5,258 49,794 Items that may be reclassified to profit or loss: 13,294 32,598 1,569 - 3,160 Fair value of debt financial instruments measured at fair value through other comprehensive income, gross 16,412 40,244 1,937 - 3,901 Deferred tax - 3,118 - 7,646 - 368 741 Items that will not be reclassified to profit or loss: - 3,259 - 3,259 1 2 Fair value of equity instruments measured at fair value through other comprehensive income, gross - 4,023 - 4,023 1 2 Deferred tax 764 764 - - Other comprehensive income 10,035 29,339 1,570 - 3,158 Total comprehensive income 78,801 106,756 6,828 46,636 The notes presented on the following pages are an integral part of these financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 102 Interim statement of financial position of the Bank Assets Note 30 Jun 2025 unaudited 31 Dec 2024 Cash and cash equivalents 5,263,691 4,302,378 Amounts due from banks 193,570 14,364 Financial assets held for trading, including: 74,543 104,273 debt securities - 15,461 derivative instruments 74,543 88,812 Derivative hedging instruments 1,059 8,693 Investment securities: 6,977,458 7,351,554 equity securities measured at fair value through other comprehensive income 108,715 112,743 debt securities measured at fair value through other comprehensive income 4,948,374 5,268,798 debt securities measured at amortised cost 1,790,167 1,843,978 debt securities measured at fair value through profit or loss 130,202 126,035 Amounts due from clients, including: 9 10,095,221 10,123,527 measured at amortised cost 10,095,214 10,123,495 measured at fair value through profit or loss 7 32 Investments in subsidiaries 284,791 280,822 Intangible assets 79,180 90,153 Property, plant and equipment 42,484 49,837 Right of use – leases 44,733 40,596 Tax assets: 115,841 130,531 deferred 115,841 130,531 Other assets 142,397 74,844 Total assets 23,314,968 22,571,572
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 103 Liabilities Note 30 Jun 2025 unaudited 31 Dec 2024 Amounts due to central bank and other banks 165,237 244,519 Derivative financial instruments held for trading 30,206 48,657 Amounts due to clients 19,859,025 19,193,059 Liabilities arising from issue of securities 102,709 199,762 Subordinated liabilities 199,753 102,709 Provisions 10 328,557 333,573 Tax liabilities: 10,688 14,744 current 10,688 14,744 Lease liabilities 39,234 36,442 Other liabilities 11 268,240 193,544 Total liabilities 21,003,649 20,367,009 Equity Note 30 Jun 2025 unaudited 31 Dec 2024 EQUITY ATTRIBUTABLE TO OWNERS OF PARENT Common equity: 1,460,364 1,460,364 Share capital 929,477 929,477 Treasury shares - 1,294 - 1,294 Share premium 532,181 532,181 Revaluation surplus 79,894 50,555 Retained earnings 771,061 693,644 Total equity 2,311,319 2,204,563 Total equity and liabilities 23,314,968 22,571,572 The notes presented on the following pages are an integral part of these financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 104 Interim statement of changes in equity of the Bank Common equity Revaluation surplus Retained earnings Total equity Share capital Treasury shares Share premium Other statutory reserve funds General risk fund Undistributed profit (loss) As at 1 Jan 2025 929,477 - 1,294 532,181 50,555 571,894 48,302 73,448 2,204,563 Net profit - - - - - - 77,417 77,417 Other comprehensive income - - - 29,339 - - - 29,339 Total comprehensive income - - - 29,339 - - 77,417 106,756 Profit distribution, including: - - - - 73,448 - - 73,448 - Transfer of net profit to reserves - - - - 73,448 - - 73,448 - As at 30 Jun 2025 unaudited 929,477 - 1,294 532,181 79,894 645,342 48,302 77,417 2,311,319
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 105 Common equity Revaluation surplus Retained earnings Total equity Share capital Treasury shares Share premium Other statutory reserve funds General risk fund Undistributed profit (loss) As at 1 Jan 2024 929,477 - 1,294 532,181 49,245 510,193 48,302 61,701 2,129,805 Net profit - - - - - - 73,448 73,448 Other comprehensive income - - - 1,310 - - 1,310 Total comprehensive income - - - 1,310 - - 73,448 74,758 Profit distribution, including: - - - - 61,701 - - 61,701 - Transfer of net profit to reserves - - - - 61,701 - - 61,701 - As at 31 Dec 2024 929,477 - 1,294 532,181 50,555 571,894 48,302 73,448 2,204,563 As at 1 Jan 2024 929,477 - 1,294 532,181 49,245 510,193 48,302 61,701 2,129,805 Net profit - - - - - - 49,794 49,794 Other comprehensive income - - - - 3,158 - - - - 3,158 Total comprehensive income - - - - 3,158 - - 49,794 46,636 Profit distribution, including: - - - - 61,701 - - 61,701 - Transfer of net profit to reserves - - - - 61,701 - - 61,701 - As at 30 Jun 2024 929,477 - 1,294 532,181 46,087 571,894 48,302 49,794 2,176,441 There were no non-controlling interests in the six months ended 30 June 2025 or in 2024. The notes presented on the following pages are an integral part of these financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 106 Interim statement of cash flows of the Bank Indirect method for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 98,013 81,370 Total adjustments: 708,799 -1,419,713 Share of (profit) loss of equity-accounted subordinated entities -23,969 -24,743 Amortisation and depreciation 33,082 31,159 Interest income on investing activities -110,374 -129,796 Loss on investing activities -5 - Interest income on financing activities 13,576 17,074 Dividends received: -4,473 -6,029 on investment securities 4,473 6,029 Change in: amounts due from banks -179,206 2,433 securities held for trading 15,461 -27,141 assets and liabilities from measurement of derivative and hedging financial instruments 3,452 1,999 investment securities 356,506 -302,743 amounts due from clients 28,306 14,098 other assets and income tax -67,551 -46,616 amounts due to central bank and other banks -79,282 207,111 amounts due to clients 665,966 -1,156,791 provisions -5,016 45,062 other liabilities and income tax 74,697 -36,373 Income tax paid -16,844 -14,446 Net cash flows from (used in) operating activities 806,812 -1,338,343 CASH FLOWS FROM INVESTING ACTIVITIES Inflows 184,191 667,509 Cash receipts from sale of property, plant and equipment 6 - Interest received on securities measured at amortised cost 97,789 137,509 Cash receipts from redemption of securities measured at amortised cost 66,396 490,000 Dividends received 20,000 40,000 Outflows -6,161 -22,058 Payments for acquisition of securities measured at amortised cost - -11,679 Payments for acquisition of intangible assets -5,710 -8,849 Payments for acquisition of property, plant and equipment -451 -1,530 Net cash flows from (used in) investing activities 178,030 645,451 CASH FLOWS FROM FINANCING ACTIVITIES Inflows - -
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 107 Outflows -23,529 -27,538 Interest paid on bonds issued by the Bank, including: -12,596 -17,026 subordinated bonds -4,389 -17,026 Lease payments -10,251 -9,233 Lease interest paid -682 -1,279 Net cash flows from (used in) financing activities -23,529 -27,538 TOTAL NET CASH FLOWS 961,313 -720,430 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,302,378 4,023,953 CASH AND CASH EQUIVALENTS AT END OF PERIOD 5,263,691 3,303,523 Restricted cash and cash equivalents 659,535 584,586 The notes presented on the following pages are an integral part of these financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 108 Notes to the condensed interim financial statements of the Bank 1. General information on Bank Ochrony Środowiska S.A. For information on Bank Ochrony Środowiska S.A., including changes in the composition of the Bank's Management Board, see Notes 1 and 2 to the condensed interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025. 1.1. Authorisation of the financial statements These condensed interim financial statements of BOŚ S.A. for the six months ended 30 June 2025 were authorised by the Bank's Management Board on 13 August 2025 for issue on 14 August 2025. The full-year financial statements of BOŚ S.A. for the year ended 31 December 2024 were approved by the Bank’s General Meeting on 17 June 2025. These condensed interim financial statements of BOŚ S.A. are issued jointly with the condensed interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025. These financial statements have been prepared in a condensed form. These condensed interim financial statements do not include all the disclosures required to be included in full -year financial statements and should be read in conjunction with the full-year financial statements of BOŚ S.A. for the financial year ended 31 December 2024 and with the condensed interim consolidated financial statements of the BOŚ Group for the six months ended 30 June 2025. For information on the accounting policies applied in the preparation of the financial statements, see Note 4 to the condensed interim consolidated financial statements of the BOŚ Group. 1.2. Reporting period and comparative data The condensed interim financial statements of Bank Ochrony Środowiska S.A. (the Bank, BOŚ S.A.) include: • the interim statement of profit or loss for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024, as well as data for the three months ended 30 June 2025 and comparative data for the three months ended 30 June 2024, • the interim statement of comprehensive income for the six months ended 30 June 2025, comparative data for the six months ended 30 June 2024, data for the three months ended 30 June 2025 and comparative data for the three months ended 30 June 2024, • the interim statement of financial position as at 30 June 2025 and comparative data as at 31 December 2024, • the interim statement of changes in equity for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024 and for the 12 months ended 31 December 2024, • the interim statement of cash flows for the six months ended 30 June 2025 and comparative data for the six months ended 30 June 2024, • notes to the financial statements.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 109 2. Going concern As a result of an accounting loss incurred in 2015, the Bank implemented a Recovery Programme pursuant to Article 142.1 of the Banking Law in the wording effective until 8 October 2016, in accordance with Article 381.4 of the Act on the Bank Guarantee Fund, Deposit Guarantee Scheme and Forced Restructuring of 10 June 2016. On 17 July 2020, the Bank received a decision of the Polish Financial Supervision Authority in connection with the administrative proceedings initiated ex officio by the Polish Financial Supervision Authority (PFSA) on 12 May 2020, whereby the Bank was ord ered to prepare a group recovery plan for Bank Ochrony Środowiska S.A. pursuant to Article 141n.1 of the Banking Law of 29 August 1997. On 20 July 2020, the Bank received the second decision of the PFSA in connection with the administrative proceedings initiated ex officio by the PFSA on 12 May 2020 to limit the scope of the group recovery plan to entities of the BOŚ Group (i.e. Bank Ochrony Środowiska S.A., Dom Maklerski BOŚ S.A., BOŚ Leasing EKO-Profit S.A. and MS Wind sp. z o.o.). The Bank prepared the Group Recovery Plan and submitted it to the PFSA in October 2020. In a letter dated 21 January 2021, in connection with the administrative proceedings to approve the Group Recovery Plan, the Polish Financial Supervision Authority instructed the Bank to supplement and amend the submitted Group Recovery Plan, with the audited financial data as at 31 December 2020 to be used as the point of reference. In accordance with the PFSA's request, BOŚ corrected the Group Recovery Plan, submitted it for approval, and on 17 December 2021 it was approved by the PFSA. The approval of the Plan by the PFSA marked the discharge of the remedial obligations under the Recovery Programme. On 31 December 2021, the Bank decided to launch the Group Recovery Plan approved by the PFSA. The purpose of the corrective measures provided for in the Plan is to achieve sustainable profitability of the Bank. Notwithstanding the fact that the Group Recovery Plan is being implemented, the Bank is obliged to update it on a regular basis. As required by Article 141m of the Banking Law, the Bank updates the Group Recovery Plan at least annually. On 26 January 2024, the PFSA approved the updated Group Recovery Plan of BOŚ S.A. In the period 1 January – 30 June 2025, the Bank continued its implementation. Following the close of the 2024 financial year, in January 2025, the Bank began preparing a new update as part of the 2025 planning cycle. The updated Group Recovery Plan was submitted to the PFSA on 30 April 2025. As at the date of issue of these financial statements, no response had been received. As at 30 June 2025, the indicator defined as the ratio of the gross carrying amount of Bucket 3 loans for the current portfolio to the gross carrying amount of total loans (NPLn) for the ‘new’ portfolio (loans originated after 2020) had reached a critical level on both separate and consolidated basis. All other indicators remained within safe thresholds. Failure to maintain the required level of the ratio of the gross carrying amount of Bucket 3 loans for the current portfolio to the gross carrying amount of total loans (NPLn) for the ‘new’ portfolio was not material to the going concern assumption. Following a review, certain exposures were reclassified to Bucket 3. The Bank is taking steps to improve the ratio, which include selling debt, increasing low -risk lending volumes, and enhancing the efficiency and effectiveness of debt collection processes throu gh system upgrades, such as planned implementation of a module to track limitation periods and due dates. Going forward, a reduction in the NPL ratio may be achieved either through the sale of non-performing loan portfolios or through a material increase in loan origination volumes, which would raise the loan balance and improve the portfolio’s quality (e.g. by broadening the business model and increasing exposure in the low -risk local government sector). The Bank’s current efforts are focused on increasing loan origination volumes. However, the impact of these measures will only become visible in subsequent quarters of 2025. In the six months ended 30 June 2025, the Bank reported a net profit of PLN 77,417 thousand. The Bank maintains its capital adequacy ratios above the levels recommended by the Polish Financial Supervision Authority (for detailed information, see Note 19.1). The Bank's liquidity is adequate and exceeds the regulatory requirements (see Note 41.2.1 for details). The armed conflict in Ukraine did not have a significant impact on the liquidity position and capital adequacy of the Bank. The Bank maintained its full operational capacity throughout the period.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 110 Taking into consideration the factors described above, there are no circumstances that would indicate a threat to the Bank's ability to continue as a going concern for at least 12 months after the reporting date as a result of voluntary or compulsory discontinuation or limitation of its current operations. 3. Corrections of prior period errors In these condensed financial statements, the Bank has not corrected any errors in the financial statements of prior periods.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 111 4. Net interest income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Interest income Income similar to interest income Total Interest income Income similar to interest income Total Financial assets measured at amortised cost Assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Financial assets measured at amortised cost Assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Cash and cash equivalents 26,509 99,913 - 126,422 21,459 77,154* - 98,613* Amounts due from corporate clients 312,976 - - 312,976 363,185 - - 363,185 Amounts due from SME, micro-enterprise and retail clients 90,532 - 159 90,691 87,208 - 155 87,363 Investment debt securities 46,721 147,733 1,604 196,058 52,106 91,802* 1,613 145,521* Investment debt securities held for trading - - 784 784 - - 1,537 1,537 Hedging transactions - - 7,837 7,837 - - 8,196 8,196 Total 476,738 247,646 10,384 734,768 523,958 168,956 11,501 704,415 * Comparative data for the six months ended 30 June 2024 reflect a presentation change relative to data reported in the previous year. The amount of PLN 11,571 thousand has been recognised as interest income on amounts due from institutional clients, while in the previous year it was presented as interest income on amounts due from banks and the central bank. For a detailed description of the change, see the full-year financial statements of BOŚ S.A. for the year ended 31 December 2024.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 112 Interest expense and similar charges on: for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Financial liabilities measured at amortised cost Financial liabilities measured at fair value through profit or loss Total Financial liabilities measured at amortised cost Financial liabilities measured at fair value through profit or loss Total Bank accounts and deposits from banks 3,140 - 3,140 2,061 - 2,061 Bank accounts and deposits from corporate clients 167,160 - 167,160 143,527 - 143,527 Bank accounts and deposits from SME, micro-enterprise and retail clients 182,475 - 182,475 173,624 - 173,624 Borrowings from clients 7,040 - 7,040 8,955 - 8,955 Lending support funds 282 - 282 366 - 366 Financial instruments – own debt securities 12,603 - 12,603 19,142 - 19,142 Lease liabilities 989 989 1,237 - 1,237 Total 373,689 - 373,689 348,912 - 348,912
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 113 5. Net fee and commission income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Fee and commission income Fee and commission income from contracts with customers under IFRS 15, including: 16,758 18,695 fees for maintaining client accounts, other domestic and international settlement transactions 16,755 18,691 Other fees 3 4 Commission fees on credit facilities 17,221 17,478 Commission fees on guarantees and letters of credit 2,636 4,212 Total 36,615 40,385 Fee and commission expense Payment card fees 4,096 3,923 Current account fees 283 293 ATM service charges 278 242 Fees on amounts due from clients 4 3 Other fees 278 356 Total 4,939 4,817 6. Dividend income for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Securities measured at fair value through other comprehensive income* 11,651 12,057 Total 11,651 12,057 * Relates to dividend received from Kemipol Sp. z o.o.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 114 7. Net loss allowances for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Securities measured at fair value through other comprehensive income - 1,097 7,901 Securities measured at amortised cost 17 59 Amounts due from banks - 411 - 54 Amounts due from clients and off-balance-sheet liabilities, including: - 28,793 - 1,752 on-balance-sheet receivables - 22,275 1,324 from SME, micro-enterprise and retail clients - 9 9,928 from corporate clients - 22,266 - 8,604 off-balance-sheet liabilities - 6,518 - 3,076 from SME, micro-enterprise and retail clients - 744 - 189 from corporate clients - 5,774 - 2,887 Total - 30,284 6,154 Net loss allowances for amounts due from clients: for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Individual assessment - 14,015 - 14,393 Collective assessment - 8,260 15,717 Total - 22,275 1,324 8. Earnings per share Basic earnings per share are calculated as the quotient of profit attributable to shareholders of the Bank and the weighted average number of ordinary shares during the year. for 6 months ended 30 Jun 2025 unaudited for 6 months ended 30 Jun 2024 unaudited Net profit 77,417 49,794 Weighted average number of ordinary shares (thousand) 92,910 92,910 Basic earnings per share (PLN) 0.83 0.54 Diluted earnings per share are equal to basic earnings per share in the periods presented.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 115 9. Amounts due from clients 30 Jun 2025 unaudited 31 Dec 2024 Gross amounts due from clients Loss allowances Net amounts due from clients Gross amounts due from clients Loss allowances Net amounts due from clients Measurement at amortised cost 11,052,084 985,256 10,066,828 11,015,831 923,617 10,092,214 Amounts due from SME, micro-enterprise and retail clients 2,162,920 219,754 1,943,166 2,090,378 215,847 1,874,531 overdraft facilities 31,925 4,508 27,417 3,350 2,971 379 cash loans 296,222 105,264 190,958 309,174 100,155 209,019 housing loans 1,442,549 76,142 1,366,407 1,553,854 81,552 1,472,302 other loans 390,204 33,826 356,378 224,000 31,169 192,831 purchased receivables 1,690 13 1,677 - - - commercial paper 330 1 329 - - - Amounts due from corporate clients 8,889,164 765,502 8,123,662 8,925,453 707,770 8,217,683 working capital facilities 843,797 82,133 761,664 912,054 56,023 856,031 term facilities 6,275,199 615,071 5,660,128 6,262,915 590,784 5,672,131 factoring receivables 420,784 40,284 380,500 462,849 36,416 426,433 purchased receivables 56,893 9,049 47,844 66,123 8,394 57,729 commercial paper 1,292,491 18,965 1,273,526 1,221,512 16,153 1,205,359 Measurement at fair value through profit or loss - - 7 - - 32 Amounts due from SME, micro-enterprise and retail clients - - 7 - - 25 housing loans - - 3 - - 10 other loans - - 4 - - 15 Amounts due from corporate clients - - - - - 7 term facilities - - - - - 7 Total - - 10,066,835 - - 10,092,246 Margin deposits 25,466 3 25,463 27,865 3 27,862 Other amounts due from clients 2,923 - 2,923 3,419 - 3,419 Total amounts due from clients - - 10,095,221 - - 10,123,527
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 116 Amounts due from clients included preferential loans with subsidised interest from NFOŚiFW and WFOŚiGW; in the reporting period, the amounts were as follows (nominal values): 30 Jun 2025 unaudited 31 Dec 2024 Preferential loans with subsidies, including: 22,716 21,412 measured at amortised cost 22,615 21,311 measured at fair value through profit or loss 101 101
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 117 Change in loss allowances for amounts due from clients: Allowances for amounts due SME, micro-enterprise and retail clients Allowances for amounts due from corporate clients Bucket 1 Bucket 2 Bucket 3 POCI Total Bucket 1 Bucket 2 Bucket 3 POCI Total At beginning of period 1 Jan 2025 7,127 1,879 206,693 148 215,847 59,251 98,004 556,634 - 6,119 707,770 change in client segmentation model 1,021 20 4 - 1,045 - 1,021 - 20 - 4 - - 1,045 At beginning of period 1 Jan 2025 – new client segmentation model 8,148 1,899 206,697 148 216,892 58,230 97,984 556,630 - 6,119 706,725 Increase due to origination and purchase of financial assets 1,609 38 - 21 1,668 17,679 5,131 - 395 23,205 Changes due to change in credit risk - 2,101 - 4,323 15,500 - 73 9,003 - 5,235 - 3,070 61,096 - 6,220 46,571 Decrease due to derecognition of financial assets, including: - 395 - 140 - 7,274 - - 7,809 - 3,841 - 2,663 - 10,408 5,913 - 10,999 change in loss allowances due to financial instruments written off from the statement of financial position - - 1 - 69 - - 70 - - - 1,423 - 258 - 1,681 Change in loss allowances due to reclassifications of financial assets between Buckets 1,246 4,632 - 5,878 - - - 2,720 497 2,223 - - Reclassification to Bucket 1 1,877 - 259 - 1,618 - - 4,840 - 4,708 - 132 - - Reclassification to Bucket 2 - 320 5,704 - 5,384 - - - 7,232 8,378 - 1,146 - - Reclassification to Bucket 3 - 311 - 813 1,124 - - - 328 - 3,173 3,501 - - Other changes - 22 18 4 - - 12 - 12 - - - At end of period 30 Jun 2025 8,485 2,124 209,049 96 219,754 64,125 97,867 609,541 - 6,031 765,502
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 118 Allowances for amounts due from retail clients Allowances for amounts due from institutional clients Bucket 1 Bucket 2 Bucket 3 POCI Total Bucket 1 Bucket 2 Bucket 3 POCI Total At beginning of period 1 Jan 2024 14,273 4,839 219,884 191 239,187 102,897 73,651 521,033 - 18,643 678,938 Increase due to origination and purchase of financial assets 2,174 9 - - 2,183 12,170 3,542 - - 15,712 Changes due to change in credit risk - 9,612 - 3,406 14,072 - 8 1,046 - 8,095 2,391 41,135 - 2,734 32,697 Decrease due to derecognition of financial assets, including: - 895 - 106 - 4,978 - - 5,979 - 4,649 - 9,953 - 4,372 - 46 - 19,020 change in loss allowances due to financial instruments written off from the statement of financial position - - 3 - 240 - - 243 - - - - - Change in loss allowances due to reclassifications of financial assets between Buckets 8,302 3,068 - 11,370 - - 403 - 4,436 4,033 - - Reclassification to Bucket 1 8,934 - 967 - 7,967 - - 7,242 - 6,761 - 481 - - Reclassification to Bucket 2 - 336 5,523 - 5,187 - - - 6,352 6,367 - 15 - - Reclassification to Bucket 3 - 296 - 1,488 1,784 - - - 487 - 4,042 4,529 - - Other changes - - 615 - - - 615 - 615 - - 615 At end of period 30 Jun 2024 14,242 3,789 217,608 183 235,822 102,726 65,810 561,829 - 21,423 708,942
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 119 10. Provisions 30 Jun 2025 unaudited 31 Dec 2024 Provision for financial obligations 66,648 60,131 open lines of credit 48,617 35,250 guarantees 18,031 24,881 Provision for employee benefits – retirement and disability benefits 6,236 6,290 Other provisions 255,673 267,152 provision for legal risk of foreign currency mortgage loans 241,346 251,222 provision for refunds of commission fees due to early loan repayment 167 225 Provision for refunds of increased interest charged until court entry of mortgage security 903 1,315 provision for other liabilities and claims 13,257 13,642 provision for future payments - 748 Total 328,557 333,573 Change in provisions 30 Jun 2025 unaudited 31 Dec 2024 Provision for financial obligations At beginning of period 60,131 47,529 recognition of provisions for impairment of off-balance-sheet liabilities 68,762 145,631 reversal of provisions for impairment of off-balance-sheet liabilities - 62,244 - 133,029 other - 1 - At end of period 66,648 60,131 Provision for employee benefits At beginning of period 6,290 4,553 recognition of provisions 150 1,897 use of provisions - 204 - 160 At end of period 6,236 6,290 Provision for legal risk of foreign currency mortgage loans At beginning of period 251,222 164,000 recognition of provisions* 25,340 130,584 exchange differences on measurement of provisions - 2,725 - 5,694 use of provisions* - 32,491 - 37,668 reversal of provisions - - At end of period 241,346 251,222
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 120 Provision for refunds of commission fees due to early loan repayment At beginning of period 225 171 recognition of provisions - 167 use of provisions - 14 - 113 reversal of provisions - 44 - At end of period 167 225 Provision for refunds of increased interest charged until court entry of mortgage security At beginning of period 1,315 1,880 recognition of provisions - 237 use of provisions - 182 - 369 reversal of provisions - 230 - 433 At end of period 903 1,315 Provision for other liabilities and claims At beginning of period 13,642 10,255 recognition of provisions 985 6,533 reversal of provisions - 1,370 - 3,146 At end of period 13,257 13,642 Provision for future payments At beginning of period 748 - recognition of provisions - 2,174 use of provisions - 748 - 1,426 At end of period - 748 Total provisions at end of period 328,557 333,573 * There has been a change in the presentation of the legal risk provision. For details, see Note 19 ‘Effect of legal risk of foreign currency mortgage loans’. Litigation against the Bank concerning loans denominated in or linked to foreign currencies For information on litigation related to loans denominated in or linked to foreign currencies, see Note 8 to the interim consolidated financial statements of the BOŚ Group: ‘Legal risk associated with foreign currency -linked residential mortgage loans’.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 121 11. Other liabilities 30 Jun 2025 unaudited 31 Dec 2024 Interbank settlements 84,796 25,817 Accrued expenses and deferred income 76,502 58,305 Public charges 12,640 12,220 Trade liabilities 81,401 83,844 Deferred commissions 7,784 8,065 Payment card settlements 1,287 1,248 Provision for refunds of commission fees due to early loan repayment 1,692 1,900 Other 2,138 2,145 Total 268,240 193,544 12. Contingent assets and liabilities 30 Jun 2025 unaudited 31 Dec 2024 Contingent liabilities: 4,238,739 3,741,795 Financial obligations, including: 3,762,410 3,235,544 open lines of credit, including: 3,636,587 3,223,379 revocable 3,170,141 2,709,470 irrevocable 466,446 513,909 open import letters of credit 7,137 12,165 loan commitments, including: 4,420 - irrevocable 4,420 - other 114,266 guarantees, including: 398,131 449,583 credit repayment sureties and guarantees 13,896 13,910 performance bonds 384,235 435,673 underwriting 78,198 56,668 Contingent assets: 1,827,083 1,917,694 Financial assets, including: - 4,300 other - 4,300 Guarantees 1,827,083 1,913,394 Total contingent assets and contingent liabilities 6,065,822 5,659,489
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 122
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 123 13. Related-party transactions As at 30 June 2025, Bank Ochrony Środowiska S.A. was the parent of Dom Maklerski BOŚ S.A., BOŚ Leasing S.A., as well as MS Wind Sp. z o.o. The National Fund for Environmental Protection and Water Management (NFOŚiGW) was the parent of BOŚ S.A. The key management personnel are also considered to be related parties. Transactions with the National Fund for Environmental Protection and Water Management, i.e. the main shareholder of the Bank As at 30 June 2025, the amount of funds provided by the NFOŚiGW for preferential loans under the Prosument programme for the financing of purchase and installation of renewable energy sources was PLN 2,813 thousand (31 December 2024: PLN 4,125 thousand). NFOŚiGW is a party related to the State Treasury. The Bank enters into transactions with entities related to the State Treasury, mainly with entities operating in the public finance sector.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 124 Data on transactions with the subsidiaries are presented in the tables below. As at 30 Jun 2025: Amounts due from clients Investments in subsidiaries Other assets Financial liabilities held for trading Amounts due to clients Subordinated liabilities Provisions Other liabilities Contingent liabilities Subsidiaries Dom Maklerski BOŚ S.A. 61,257 216,840 20,005 - 1,842,823 118 189 108 48,438 BOŚ Leasing S.A. 209,997 67,951 - 46 15,976 - 4,325 903 43,185 Indirect subsidiaries MS Wind sp. z o.o. 13,983 11,526 Total 285,237 284,791 20,005 46 1,870,325 118 4,514 1,011 91,623 As at 31 Dec 2024: Amounts due from clients Investments in subsidiaries Other assets Financial liabilities held for trading Amounts due to clients Subordinated liabilities Provisions Other liabilities Contingent liabilities Subsidiaries Dom Maklerski BOŚ S.A. 56,977 213,825 - - 1,958,849 129 582 254 52,049 BOŚ Leasing S.A. 208,433 66,997 - 95 13,007 - 1,614 611 16,093 Indirect subsidiaries MS Wind sp. z o.o. 14,151 - - - 10,774 - - - - Total 279,561 280,822 - 95 1,982,630 129 2,196 865 68,142
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 125 Income and expenses in the six months ended 30 June 2025: Interest and similar income Interest expense and similar charges Fee and commission income Fee and commission expense Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) Other income Net loss allowances Administrative expenses Share of profit (loss) of equity- accounted entities Subsidiaries Dom Maklerski BOŚ S.A. 2,429 - 41,690 1,440 - - 1 1,074 - 6 23,015 BOŚ Leasing S.A. 7,818 - 176 60 - 9 316 - 3,971 - 33 954 Indirect subsidiaries MS Wind sp. z o.o. 556 - 23 41 - - - 10 - - Total 10,803 - 41,889 1,541 - 9 317 - 2,887 - 39 23,969 Income and expenses in the six months ended 30 June 2024: Interest and similar income Interest expense and similar charges Fee and commission income Fee and commission expense Gain (loss) on financial instruments measured at fair value through profit or loss (including amounts due from clients) Other income Net loss allowances Administrative expenses Share of profit (loss) of equity- accounted entities Subsidiaries Dom Maklerski BOŚ S.A. 1,732 - 42,065 658 - 39 - 5 267 - 6 22,750 BOŚ Leasing S.A. 7,364 - 267 44 - - 50 335 692 - 40 1,993 Indirect subsidiaries MS Wind sp. z o.o. 618 - 24 36 - - - 24 - - Total 9,714 - 42,356 738 - 39 - 50 340 983 - 46 24,743
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 126 14. Seasonal or cyclical nature of the business in the reporting period The Bank’s business does not involve any significant events or factors that would be subject to seasonal or cyclical variations. 15. Type and amounts of non-recurring items affecting the assets, equity and liabilities, net profit/loss or cash flows, which are unusual due to their type, size or frequency In the six months ended 30 June 2025, there were no non -recurring events with a significant impact on the Bank’s assets, liabilities, equity, net profit/loss or cash flows. 16. Type and amount of changes to estimates reported in previous interim periods of the current financial year or in previous financial years, where they have a material effect on the current interim period In the six months ended 30 June 2025, there were no material changes in the methodology underlying the calculation of estimated amounts recognised in previous interim periods of the current financial year and in the full- year consolidated financial statements of Bank Ochrony Środowiska S.A. for the year ended 31 December 2024 . 17. Issue, redemption and repayment of debt and equity securities In the six months ended 30 June 2025, there were no issues, redemptions or repayments of any debt or equity securities. 18. Dividends paid (aggregate or per share), separately for ordinary shares and other shares No dividend was paid or declared in the six months ended 30 June 2025. In 2024, the Bank generated net profit. On 17 June 2025, the Annual General Meeting of Bank Ochrony Środowiska S.A. passed a resolution to allocate the Bank’s entire net profit for the period 1 January−31 December 2024, amounting to PLN 73,448 thousand to statutory reserve funds. 19. Capital adequacy For detailed information on the capital adequacy management process, its purpose and capital adequacy measures, see the full-year financial statements. Presented below is key information on the capital ratios. In accordance with Article 92 of the CRR, the Bank is required to maintain the total capital ratio at a minimum of 8%. The Tier 1 capital ratio and Common Equity Tier 1 capital ratio should amount at least to 6% and 4.5%, respectively. Pursuant to the CRR and the Act on Macroprudential Oversight of the Financial System and Crisis Management in the Financial System of 5 August 2015, financial institutions are required to maintain additional capital buffers for capital ratios. As of 1 Janu ary 2019, the capital conservation buffer is 2.5 percentage points and the countercyclical buffer is 0 percentage points. The Bank is not required to maintain the other systemically important institution buffer. The systemic risk buffer was released by decision of the Minister of Finance dated 18 March 2020. On 16 December 2024, the Polish Financial Supervision Authority recommended that the Bank should maintain own funds, on a standalone basis, to cover the additional capital add -on to absorb potential losses resulting from stress conditions at the level of 3.76 percentage points above the total capital ratio referred to in Article 92(1)(a -c) of Regulation No 575/2013, increased by the additional own funds requirement referred to in Article 138.2.2) of the Banking Law and by the combined buffer requirement referred to in Article 55.4 of the Macroprudential Supervision Act. The additional add-on should consist entirely of Common Equity Tier 1 capital. As a result, as at 30 June 2025, the minimum capital ratios recommended by the PFSA for the Bank were: • Common Equity Tier 1 capital ratio – 10.76%, • Tier 1 capital ratio – 12.26%, • total capital ratio (TCR) – 14.26%.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 127 19.1. The Bank's capital adequacy levels 30 Jun 2025 unaudited 31 Dec 2024 AVAILABLE CAPITAL Common Equity Tier 1 capital 2,079,075 1,937,941 Tier 1 capital 2,079,075 1,937,941 Own funds 2,179,075 2,037,941 RISK-WEIGHTED ASSETS Total amount of risk-weighted assets 13,322,304 11,652,420 Credit risk and counterparty credit risk 11,572,313 9,984,817 Operational risk 1,729,235 1,649,560 Market risk 13,055 9,143 CVA 7,701 8,900 CAPITAL RATIOS Common Equity Tier 1 capital ratio 15.61 16.63 Tier 1 capital ratio 15.61 16.63 Total capital ratio 16.36 17.49 LEVERAGE RATIO Exposure amount 26,055,668 24,425,436 Leverage ratio 8.0 7.9 INTERNAL CAPITAL Internal capital 1,465,759 1,533,450 Internal capital to equity ratio 67.3 75.2 The capital adequacy ratio of the Bank as at 30 December 2025 was above the supervisory and internal limits. Impact of CRR3 on capital adequacy Since 1 January 2025, the Bank has complied with Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024, amending the Capital Requirements Regulation (CRR). The decline in its capital ratios is primarily driven by the identification and higher risk weighting of exposures related to the financing of land acquisitions for development purposes, as well as loans for property development and the construction of residential or commercial projects (so-called ADC exposures).
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 128 20. Additional information As at 30 June 2025, the Bank did not have: • material commitments or obligations related to purchase of property, plant and equipment. In the six months ended 30 June 2025, the Bank did not make: • significant inventory write-downs, • reversals of any provisions for restructuring costs, • material transactions to purchase or sell property, plant and equipment, • changes in the fair value measurement method for financial instruments measured at fair value, • changes in the classification of financial assets due to a change in their purpose or use. 21. Events after the reporting date On 10 July 2025, the Management Board of Bank Ochrony Środowiska decided to issue up to 700 Series AD unsecured subordinated contingent convertible bonds in bearer form with a nominal value of PLN 500 thousand per bond and maximum total nominal value of up to PLN 350 million, with the issue date set at 29 July 2025. The bonds were issued under the Bank’s bond programme with a total nominal value of PLN 1 billion of bonds issued and outstanding. The issue price was equal to the nominal value. The bonds bear interest at a variable rate of 6M WIBOR plus a margin of 2.90% per annum. The bonds were issued by way of an offering conducted pursuant to Article 33.1 of the Bond Act of 15 January 2015, in conjunction with Article 1(4)(a) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published in connection with a public offering of securities or their admission to trading on a regulated market, and repealing Directive 2003/71/EC (the “Prospectus Regulation”), to be offered exclusively to qualified investors within the meaning of the Prospectus Regulation without the requirement to publish a prospectus or information memorandum, subject to Article 27c of the Bond Act of 15 January 2015, as amended. The bonds were registered with the securities depository operated by the Central Securities Depository of Poland and admitted to trading in the alternative trading system operated by the Warsaw Stock Exchange S.A. on 29 July 2025. The maturity date is 29 J uly 2035, subject to early redemption in accordance with the applicable terms and conditions of the bonds. The settlement of the Series AD unsecured subordinated contingent convertible bonds in the amount of PLN 350 million took place on 29 July 2025. The Bank did not specify the purpose of the issue in the terms and conditions of the bonds. It will seek approval from the Polish Financial Supervision Authority to classify the issue proceeds as Tier 2 instruments.
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Condensed interim financial statements of Bank Ochrony Środowiska S.A. for the six months ended 30 June 2025 (all amounts in PLN thousand) P a g e | 129 Signatures of Members of the Management Board Date Name and surname Position held Signature 13 August 2025 Bartosz Kublik President of the Management Board Signed with qualified e-signature 13 August 2025 Piotr Kubaty Vice-President and First Deputy President of the Management Board Signed with qualified e-signature 13 August 2025 Kamil Kuźmiński Vice President of the Management Board Signed with qualified e-signature 13 August 2025 Krzysztof Łabowski Vice President of the Management Board Signed with qualified e-signature 13 August 2025 Michał Należyty Vice President of the Management Board Signed with qualified e-signature Signature of the person in charge of bookkeeping: 13 August 2025 Andrzej Kowalczyk Director of the Accounting Department Signed with qualified e-signature