Interim report
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Warsaw, August 2025 This document is a free translation of the Polish original. Terminology current in Anglo-Saxon countries has been used where practicable for the purposes of this translation in order to aid understanding. The binding Polish original should be referre d to in matters of interpretation. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025
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2 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) I. Condensed consolidated income statement ............................................................................................................................ 3 II. Condensed consolidated statement of comprehensive income ............................................................................................ 4 III. Condensed consolidated statement of financial position ...................................................................................................... 5 IV. Condensed consolidated statement of changes in equity ..................................................................................................... 6 V. Condensed consolidated cash flow statement ........................................................................................................................ 7 VI. Notes to the Condensed Consolidated Financial Statements ................................................................................................ 9 1. General information .................................................................................................................................................................... 9 2. Group structure ........................................................................................................................................................................... 9 3. Statement of compliance .......................................................................................................................................................... 10 4. Significant accounting policies ............................................................................................................................................... 14 5. Accounting estimates ............................................................................................................................................................... 15 6. Operating segments ................................................................................................................................................................. 16 7. Interest income and expense ................................................................................................................................................... 19 8. Fee and commission income and expense ............................................................................................................................ 20 9. Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result .. 21 10. Result on derecognition of financial assets and liabilities not measured at fair value through profit or loss ............... 21 11. Net allowances for expected credit losses ............................................................................................................................. 22 12. Other operating income and expenses ................................................................................................................................... 22 13. General administrative expenses and depreciation .............................................................................................................. 23 14. Income tax.................................................................................................................................................................................. 24 15. Earnings per share .................................................................................................................................................................... 25 16. Dividends ................................................................................................................................................................................... 25 17. Cash and cash equivalents ...................................................................................................................................................... 25 18. Loans and advances to banks ................................................................................................................................................. 26 19. Derivative financial instruments (held for trading) ................................................................................................................ 26 20. Loans and advances to customers (including receivables from finance leases) .............................................................. 27 21. Securities ................................................................................................................................................................................... 28 22. Assets pledged as security for liabilities ............................................................................................................................... 30 23. Intangible assets ....................................................................................................................................................................... 31 24. Property, plant and equipment ................................................................................................................................................ 31 25. Amounts due to other banks ................................................................................................................................................... 32 26. Financial liabilities held for trading ......................................................................................................................................... 32 27. Amounts due to customers ...................................................................................................................................................... 32 28. Debt securities issued .............................................................................................................................................................. 32 29. Provisions .................................................................................................................................................................................. 33 30. Contingent commitments and legal claims ............................................................................................................................ 33 31. Related party transactions ....................................................................................................................................................... 36 32. Risk management and fair value ............................................................................................................................................. 42 32.1 Credit risk ..................................................................................................................................................................... 42 32.2 Legal risk regarding foreign currency mortgage loans in CHF .............................................................................. 61 32.3 Market risk ................................................................................................................................................................... 64 32.4 Liquidity risk ................................................................................................................................................................ 65 32.5 Operational risk ........................................................................................................................................................... 65 32.6 Fair value of financial assets and liabilities ............................................................................................................. 66 33. Additional information to the cash flow statement ............................................................................................................... 71 34. Subsequent events ................................................................................................................................................................... 71
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Bank Pekao S.A. 3 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) I. Condensed consolidated income statement NOTE II QUARTER 2025 PERIOD FROM 01.04.2025 TO 30.06.2025 I HALF 2025 PERIOD FROM 01.01.2025 TO 30.06.2025 II QUARTER 2024 PERIOD FROM 01.04.2024 TO 30.06.2024 RESTATED I HALF 2024 PERIOD FROM 01.01.2024 TO 30.06.2024 RESTATED Interest income and similar to interest 7 4 912 9 820 4 430 8 976 Interest income calculated using the effective interest method 4 690 9 373 4 208 8 539 Income similar to interest 222 447 222 437 Interest expense 7 (1 466) (2 960) (1 508) (2 969) Net interest income 3 446 6 860 2 922 6 007 Fee and commission income 8 998 1 941 912 1 782 Fee and commission expense 8 (233) (444) (215) (417) Net fee and commission income 765 1 497 697 1 365 Dividend income 33 33 29 30 Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result 9 90 176 87 206 Result on derecognition of financial assets and liabilities not measured at fair value through profit or loss 10 38 45 (6) 3 Net allowances for expected credit losses 11 (231) (384) (232) (413) Costs of legal risk of foreign currency mortgage loans 32.2 (309) (358) (206) (243) Other operating income 12 24 80 65 102 Other operating expenses 12 (144) (190) 8 (35) General administrative expenses and depreciation 13 (1 617) (3 469) (1 566) (3 266) Share in profit/loss on assiosiates (2) (4) 2 4 PROFIT BEFORE INCOME TAX 2 093 4 286 1 800 3 760 Income tax expense 14 (491) (998) (380) (822) NET PROFIT 1 602 3 288 1 420 2 938 1.Attributable to equity holders of the Bank 1 601 3 286 1 419 2 936 2.Attributable to non-controlling interests 1 2 1 2 Earnings per share (in PLN per share) basic for the period 15 6.10 12.52 5.41 11.19 diluted for the period 15 6.10 12.52 5.41 11.19 Notes to the financial statements presented on pages 9 – 71 constitute an integral part of the interim condensed consolidated financial statements.
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Bank Pekao S.A. 4 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) II. Condensed consolidated statement of comprehensive income II QUARTER 2025 PERIOD FROM 01.04.2025 TO 30.06.2025 I HALF 2025 PERIOD FROM 01.01.2025 TO 30.06.2025 II QUARTER 2024 PERIOD FROM 01.04.2024 TO 30.06.2024 I HALF 2024 PERIOD FROM 01.01.2024 TO 30.06.2024 Net profit 1 602 3 288 1 420 2 938 Other comprehensive income (net) Items that are or may be reclassified subsequently to profit or loss: Impact of revaluation of debt financial instruments and loan measured at fair value through other comprehensive income (net): 100 187 35 83 profit/loss on fair value measurement 130 223 39 93 profit/loss reclassification to income statement after derecognition (30) (36) (4) (10) Impact of revaluation of derivative instruments hedging cash flows (net): 267 517 44 (131) profit/loss from the fair value measurement of financial instruments hedging cash flows in the part constituting effective hedging 177 317 (106) (426) profit/loss on financial instruments hedging cash flows reclassified to profit or loss 90 200 150 295 Items that will never be reclassified to profit or loss: Impact of revaluation of investments in equity instruments designated at fair value through other comprehensive income (net) 25 79 (8) (54) Remeasurements of the defined benefit liabilities (net) (4) (4) - - Other comprehensive income (net) 388 779 71 (102) Total comprehensive income 1 990 4 067 1 491 2 836 1. Attributable to equity holders of the Bank 1 989 4 065 1 490 2 834 2. Attributable to non-controlling interests 1 2 1 2 Notes to the financial statements presented on pages 9 – 71 constitute an integral part of the interim condensed consolidated financial statements.
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Bank Pekao S.A. 5 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) III. Condensed consolidated statement of financial position NOTE 30.06.2025 31.12.2024 ASSETS Cash and cash equivalents 17 17 932 14 269 Loans and advances to banks 18 609 172 Derivative financial instruments (held for trading) 19 4 209 4 222 Hedging instruments 909 448 Loans and advances to customers (including receivables from finance leases) 20 181 224 175 025 Securities 21 125 679 130 245 Assets pledged as security for liabilities 22 932 1 345 Assets held for sale 16 24 Investments in associates 54 59 Intangible assets 23 2 498 2 548 Property, plant and equipment 24 2 053 2 025 Income tax assets 1 227 1 343 1. Current tax assets 1 - 2. Deferred tax assets 14 1 226 1 343 Other assets 2 292 2 517 TOTAL ASSETS 339 634 334 242 EQUITY AND LIABILITIES Liabilities Amounts due to other banks 25 7 562 7 344 Financial liabilities held for trading 26 1 050 1 399 Derivative financial instruments (held for trading) 19 4 291 4 266 Amounts due to customers 27 266 056 260 742 Hedging instruments 693 1 073 Debt securities issued 28 16 100 16 167 Subordinated liabilities 3 543 2 782 Income tax liabilities 219 1 374 1. Current tax liabilities 202 1 356 2. Deferred tax liabilities 14 17 18 Provisions 29 2 642 2 310 Other liabilities 6 318 4 871 TOTAL LIABILITIES 308 474 302 328 Equity Share capital 262 262 Other capital and reserves 26 076 23 731 Retained earnings and net profit for the period 4 810 7 908 Total equity attributable to equity holders of the Bank 31 148 31 901 Non-controlling interests 12 13 TOTAL EQUITY 31 160 31 914 TOTAL LIABILITIES AND EQUITY 339 634 334 242 Notes to the financial statements presented on pages 9 – 71 constitute an integral part of the interim condensed consolidated financial statements.
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Bank Pekao S.A. 6 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) IV. Condensed consolidated statement of changes in equity EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK NON - CONTROLLING INTERESTS TOTAL EQUITY SHARE CAPITAL OTHER CAPITAL AND RESERVES RETAINED EARNINGS AND NET PROFIT FOR THE PERIOD TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK TOTAL OTHER CAPITAL AND RESERVES SHARE PREMIUM GENERAL BANKING RISK FUND OTHER RESERVE CAPITAL REVALUATION RESERVES OTHER Equity as at 1.01.2025 262 23 731 9 137 1 983 12 995 (744) 360 7 908 31 901 13 31 914 Total comprehensive income - 779 - - - 779 - 3 286 4 065 2 4 067 Other components of comprehensive income (net) - 779 - - - 779 - - 779 - 779 Net profit for the period - - - - - - - 3 286 3 286 2 3 288 Appropriation of retained earnings - 1 564 - - 1 563 - 1 (6 383) (4 819) (3) (4 822) Dividend paid (Note 16) - - - - - - - (4 819) (4 819) (3) (4 822) Profit appropriation to other reserves - 1 564 - - 1 563 - 1 (1 564) - - - Other - 2 - - 3 (1) - (1) 1 - 1 Result on the sale of investments in equity instruments designated at fair value through other comprehensive income - - - - 1 (1) - - - - - Other - 2 - - 2 - - (1) 1 - 1 Equity as at 30.06.2025 262 26 076 9 137 1983 14 561 34 361 4 810 31148 12 31 160 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK NON - CONTROLLING INTERESTS TOTAL EQUITY SHARE CAPITAL OTHER CAPITAL AND RESERVES RETAINED EARNINGS AND NET PROFIT FOR THE PERIOD TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK TOTAL OTHER CAPITAL AND RESERVES SHARE PREMIUM GENERAL BANKING RISK FUND OTHER RESERVE CAPITAL REVALUATION RESERVES OTHER Equity as at 1.01.2024 262 21 872 9 137 1 983 11 290 (893) 355 8 282 30 416 12 30 428 Total comprehensive income - (102) - - - (102) - 2 936 2 834 2 2 836 Other components of comprehensive income (net) - (102) - - - (102) - - (102) - (102) Net profit for the period - - - - - - - 2 936 2 936 2 2 938 Appropriation of retained earnings - 1 710 - - 1 705 - 5 (6 749) (5 039) (2) (5 041) Dividend paid - - - - - - - (5 039) (5 039) (2) (5 041) Profit appropriation to other reserves - 1 710 - - 1 705 - 5 (1 710) - - - Equity as at 30.06.2024 262 23 480 9 137 1 983 12 995 (995) 360 4 469 28 211 12 28 223 Notes to the financial statements presented on pages 9 – 71 constitute an integral part of the interim condensed consolidated financial statements.
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7 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. V. Condensed consolidated cash flow statement NOTE I HALF 2025 PERIOD FROM 01.01.2025 TO 30.06.2025 I HALF 2024 PERIOD FROM 01.01.2024 TO 30.06.2024 Cash flow from operating activities – indirect method Profit before income tax 4 286 3 760 Adjustments for: Depreciation and amortization 13 372 336 Share in gains (losses) from associates 4 (4) (Gains) losses on investing activities (72) (74) Net interest income 7 (6 860) (6 007) Dividend income (33) (30) Change in: Loans and advances to banks (432) (114) Derivative financial instruments (assets) 13 1 690 Loans and advances to customers (including receivables from financial leases) (6 202) (6 728) Securities (including assets pledged as security for liabilities) 2 934 3 222 Other assets 1 686 1 114 Amounts due to banks 603 (570) Financial liabilities held for trading (349) 163 Derivative financial instruments (liabilities) 26 (1 646) Amounts due to customers 5 517 13 050 Debt securities issued (179) (15) Subordinated liabilities 11 1 Payments for short-term leases and leases of low-value assets (1) (1) Provisions 336 111 Other liabilities (40) (1 443) Interest received 9 718 8 430 Interest paid (3 148) (2 979) Income tax paid (2 219) (1 796) Net cash flows from operating activities 5 971 10 470 Cash flow from investing activities Investing activity inflows 360 893 691 488 Sale and redemption of securities measured at amortised cost 88 115 170 141 Sale and redemption of securities measured at fair value through other comprehensive income 272 707 521 297 Sale property, plant and equipment 24 38 20 Dividend received 33 30 Investing activity outflows (358 843) (698 987) Acquisition of securities measured at amortised cost (83 494) (178 421) Acquisition of securities measured at fair value through other comprehensive income (275 087) (520 238) Acquisition of intangible assets (113) (130) Acquisition of property, plant and equipment 24 (149) (198) Net cash flows from investing activities 2 050 (7 499)
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8 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. NOTE I HALF 2025 PERIOD FROM 01.01.2025 TO 30.06.2025 I HALF 2024 PERIOD FROM 01.01.2024 TO 30.06.2024 Cash flows from financing activities Financing activity inflows 16 518 12 674 Due to loans and advances received from banks 33 - - Issue of debt securities 33 15 768 12 674 Issue of subordinated liabilities 33 750 - Financing activity outflows (20 876) (14 837) Repayment of loans and advances received from banks 33 (360) (446) Redemption of debt securities 33 (15 654) (9 320) Dividends payments (4 822) (5 039) Payments for the principal portion of the lease liabilities 33 (40) (32) Net cash flows from financing activities (4 358) (2 163) Total net cash flows 3 663 808 including effect of exchange rate fluctuations on cash and cash equivalents held (114) (7) Net change in cash and cash equivalents 3 663 808 Cash and cash equivalents at the beginning of the period 14 269 14 715 Cash and cash equivalents at the end of the period 17 17 932 15 523 Notes to the financial statements presented on pages 9 – 71 constitute an integral part of the interim condensed consolidated financial statements.
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9 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. VI. Notes to the Condensed Consolidated Financial Statements 1. General information Bank Polska Kasa Opieki Spółka Akcyjna (hereafter ‘Bank Pekao S.A.’ or ‘the Bank’), with its headquarters in Poland 01-066, Żubra 1 Warsaw, was incorporated on 29 October 1929 in the Commercial Register of the District Court in Warsaw and has been continuously operating since its incorporation. Bank Pekao S.A. is registered in the National Court Registry – Enterprise Registry of the Warsaw District Court, XIII Commercial Division of the National Court Registry in Warsaw under the reference number KRS 0000014843. The Bank’s shares are quoted on the Warsaw Stock Exchange (WSE). Bank Pekao S.A. is a universal commercial bank, offering a broad range of banking services on domestic financial markets, provided to retail and corporate clients, in compliance with the scope of services, set forth in the Bank’s Articles of Association. The Bank runs both PLN and forex operations, and it actively participates in both domestic and foreign financial markets. Moreover, acting through its subsidiaries, the Group provides stockbroking, leasing, factoring operations and offering other financial services. The Bank Pekao S.A. Group’s activities do not show any significant cyclical or seasonal changes. According to IFRS 10 ‘Consolidated financial statements’, the parent entity and the ultimate parent entity of Bank Pekao S.A. is Powszechny Zakład Ubezpieczeń S.A. (hereinafter ‘PZU S.A.’) with its registered office in Warsaw at Rondo Daszyńskiego 4, for which the controlling entity is the State Treasury, which holds 34.1875% of PZU S.A. shares, entitling to 34.1875% of votes at the General Meeting of PZU S.A. Through PZU S.A., the Bank is indirectly controlled by the State Treasury. The Interim Condensed Consolidated Financial S tatements of Bank Pekao S.A. Group for the first half of 2025 contain financial information of the Bank and its subsidiaries (together referred to as the ‘Group’), and the associates accounted fo r using equity method. The share ownership structure of the Bank is presented in the Note 5.4 of the Report on the activities of Bank Pekao S.A. Group for the first half of 2025. 2. Group structure The Group consists of Bank Pekao S.A. as the parent entity and the following subsidiaries NAME OF ENTITY LOCATION CORE ACTIVITY PERCENTAGE OF THE GROUP’S OWNERSHIP RIGHTS IN SHARE CAPITAL/VOTING 30.06.2025 31.12.2024 Pekao Bank Hipoteczny S.A. Warsaw Banking 100.00 100.00 Pekao Leasing Sp. z o.o. Warsaw Leasing services 100.00 100.00 PeUF Sp. z o.o. Warsaw Financial support 100.00 100.00 Pekao Investment Banking S.A. Warsaw Brokerage 100.00 100.00 Pekao Faktoring Sp. z o.o. Lublin Factoring services 100.00 100.00 Centrum Kart S.A. Warsaw Financial support 100.00 100.00 Pekao Financial Services Sp. z o.o. Warsaw Transferable agent 66.50 66.50 Pekao Direct Sp. z o.o. Cracow The company does not conduct any operational activities 100.00 100.00 Pekao Property S.A. (in liquidation) Warsaw Real estate development 100.00 100.00 FPB - Media Sp. z o.o. (in bankruptcy) (*) Warsaw Real estate development - 100.00 Pekao Fundusz Kapitałowy Sp. z o.o. (in liquidation) (**) Warsaw Business consulting 100.00 100.00 Pekao Investment Management S.A. Warsaw Holding 100.00 100.00 Pekao TFI S.A. Warsaw Asset management 100.00 100.00 (*) In April 2025 FPB - Media Sp. z o.o. (in bankruptcy) was deleted from the National Court Register. (**) On 1 of July 2025 the liquidation was revoked.
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10 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Investments in associates NAME OF ENTITY LOCATION CORE ACTIVITY PERCENTAGE OF THE GROUP’S OWNERSHIP RIGHTS IN SHARE CAPITAL/VOTING 30.06.2025 31.12.2024 Krajowy Integrator Płatności S.A. Poznań Monetary brokerage 38.33 38.33 Acquisition of the enterprise of Pekao Direct Sp. z o.o. In May 2025, the Bank acquired the enterprise of Pekao Direct Sp. z o.o. related to the provision of call center services. The acquisition of the enterprise of Pekao Direct Sp. z o.o. was accounted for in accordance with the adopted accounting policy applicable to business combinations under common control. This transaction had no impact on the Group. Planned acquisition of an organized part of the enterprise of Pekao Bank Hipoteczny S.A. The Bank is planning to acquire an organized part of the enterprise of Pekao Bank Hipoteczny S.A. The subject of the acquisition transaction will primarily be loans that, at any time after the signing of the loan agreement, were recorded by Pekao Bank Hipoteczny S.A. as loans in a currency other than PLN, in respect of which any of the following criteria is met: (i) there is an outstanding debt; (ii) the loan has been written off in whole or in part (i.e., settlements or other agreemen ts have been concluded between the Client and Pekao Bank Hipoteczny S.A. in relation to the loan, providing for the release of the Client from the debt, in respect of part or all of the principal, interest, or costs); (iii) the loan has been repaid; or (iv) a court judgment has been issued in relation to the loan declaring the loan agreement invalid, but the borrower or Pekao Bank Hipoteczny S.A. have unsatisfied claims. This transaction concerns the acquisition and sale of entities under common control and will therefore have no impact on the Group. 3. Statement of compliance The Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 have been prepared in accordance with International Accounting Standard 34 ‘ Interim Financial Reporting’ (IAS 34) as adopted by the European Union. These financial statements do not include all information and disclosures required for annual financial statements, and shall be read in conjunction with the consolidated financial statements of Bank Pekao S.A. Group for the year ended 31 December 2024. The consolidated financial statements of Bank Pekao S.A. Group as at and for the year ended 31 December 20 24 are available at the Bank’s website www.pekao.com.pl. In accordance with the Decree of the Ministry of Finance dated 29 March 2018 on current and periodic information provided by issuers of securities and the conditions for recognition as equivalent information required by the law of a non -Member State, the Bank is required to publish the financial report for the first half of 2025, i.e. current interim period. These interim condensed consolidated financial statements were authorized for issue by the Management Board on 6 August 2025.
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11 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 3.1. New standards, interpretations and amendments to published standards that have been approved and published by the European Union and are effective on or after 1 January 2025 STANDARD / INTERPRETATION DESCRIPTION IMPACT ASSESSMENT IAS 21 (amendment) ‘The Effects of Changes in Foreign Exchange Rates’ The amendment to IAS 21: • specify when a currency is exchangeable into another currency and when it is not — a currency is exchangeable when an entity is able to exchange that currency for the other currency through markets or exchange mechanisms that create enforceable rights and obligations without undue delay at the measurement date and for a specified purpose; a currency is not exchangeable into the other currency if an entity can only obtain an insignificant amount of the other currency, • specify how an entity determines the exchange rate to apply when a currency is not exchangeable — when a currency is not exchangeable at the measurement date, an entity estimates the spot exchange rate as the rate that would have applied to an orderly transaction between market participants at the measurement date and that would faithfully reflect the economic conditions prevailing, • require the disclosure of additional information when a currency is not exchangeable — when a currency is not exchangeable an entity discloses information that would enable users of its financial statements to evaluate how a currency’s lack of exchangeabil ity affects, or is expected to affect, its financial performance, financial position and cash flows. The standard’s amendments did not have a material impact on the financial statements in the period of their first application.
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12 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 3.2. New standards, interpretations and amendments to published standards that have been issued by the International Accounting Standards Board (IASB) and have been approved by the European Union but are not yet effective STANDARD/ INTERPRETATION DESCRIPTION IMPACT ASSESSMENT IFRS 9 (amendment) ‘Financial instruments’ and IFRS 7 (amendment) ‘Financial instruments: disclosures’ The amendments to IFRS 9 and IFRS 7: • provide an optional exception relating to the derecognition of a financial liability at an earlier date than settlement date, as long as specific conditions are met. This choice applies only to financial liabilities settled via the electronic payment system. An entity that chooses the accounting polic y introduced by the above change will be obliged to apply it to all settlements made via the same electronic payment system, • clarify the method of analysis of three areas that are assessed when carrying out the test of the characteristics of contractual cash flows (‘SPPI test’) of financial assets, and thus affect the classification of financial assets, i.e.: ➢ additional guidelines have been introduced on the analysis of contractual terms that may change cash flows based on contingencies (for example interest rates linked to ESG goals), ➢ guidelines regarding ‘non-recourse’ financial assets have been clarified. A financial asset has ‘non-recourse’ characteristics if the lender has the right to receive the cash flows generated exclusively by the specified asset. In such a situation, the borrower is exposed to the operational risk of the assets and not the credit risk of the borrower, ➢ guidelines on contractually linked instruments have been clarified. In some transactions, the issuer may prioritize payments using multiple contractually linked instruments that result in a concentration of credit risk (so-called ‘tranches’). The amendments clarify, among other things, that a key element that distinguishes contractually linked instruments from other ‘non -recourse’ financial assets is the cascading payment structure, which results in a disproportionate allocation of cash shortfalls (losses) between tranches, • introduce new disclosure requirements for: ➢ equity instruments designated for measurement at fair value through other comprehensive income, ➢ financial assets and liabilities measured at amortized cost, the contractual terms of which may change cash flows due to events not directly related to changes in basic credit risk (e.g. change in cash flows due to compliance with ESG standards or not), • for nature-dependent electricity contracts, which are often structured as power purchase agreements: ➢ clarify the application of the ‘own-use’ requirements; ➢ permit hedge accounting if these contracts are used as hedging instruments; and ➢ add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. Date of application: annual periods beginning on or after 1 January 2026. The Group is in the process of assessing the impact of the standards’ amendments on the financial statements during its first application.
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13 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. STANDARD/ INTERPRETATION DESCRIPTION IMPACT ASSESSMENT Annual Improvements (Volume 11) The IASB’s Annual improvements are limited to changes that either clarify the text of IFRS standard or correct relatively minor unintended consequences, omissions or conflicts between the requirements in the standards. The changes in the Annual improvements (Volume 11) concern: • IFRS 1 ‘First -time Adoption of International Financial Reporting Standards’ – hedge accounting by a first-time adopter • IFRS 7 ‘Financial Instruments: Disclosures’: (1) gain or loss on derecognition; (2) disclosure of deferred difference between fair value and transaction price; (3) credit risk disclosures, • IFRS 9 ‘Financial instruments’: (1) lessee derecognition of lease liabilities; (2) transaction price, • IFRS 10 ‘Consolidated financial statements’ - determination of a ‘de facto agent’ • IAS 7 ‘Statement of Cash Flows’ – cost method Date of application: annual periods beginning on or after 1 January 2026. The Group claims that the standard’s implementation will not have a material impact on the financial statements in the period of its first application. 3.3. New standards, interpretations and amendments to published standards that have been published by the International Accounting Standards Board (IASB) and not yet approved by the European Union STANDARD/ INTERPRETATION DESCRIPTION IMPACT ASSESSMENT IFRS 18 ‘Presentation and Disclosure in Financial Statements' IFRS 18 replaces IAS 1 ‘Presentation of financial statements’. The purpose of the new standard is to improve the comparability and transparency of an entity's communication through financial statements and introduces: • new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations. The first three categories are new. These categories are complemented by the requirement to present subtotals and totals for ‘operating profit or loss’, ‘profit or loss before financing and i ncome taxes’ and ‘profit or loss’. • the concept of management-defined performance measure (‘MPM’) and defines it as a subtotal of income and expenses that an entity uses in public communications outside financial statements, to communicate management view’s of an aspect of the financial performance of the entity as a whole to users. IFRS 18 requires entities to disclose information about all its MPMs, including: how the measure is calculated, how it provides useful information and a reconciliation to the most comparable subtotal specified by IFRS 18 or another standard. • new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. Date of application: annual periods beginning on or after 1 January 2027. The introduction of the new standard will not affect the numerical values presented in the financial statements. However, the method of presentation will change, which is currently being analyzed by the Group. IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’ IFRS 19 allows eligible subsidiaries to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. This standard may be applied by subsidiaries that: • it does not have public accountability (i.e. its equity or debts instruments are not traded in a public market or it does not hold assets in a fiduciary capacity for a broad group of outsiders), • it has an ultimate or intermediate parent entity that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. Date of application: annual periods beginning on or after 1 January 2027. This standard will not have an impact on the financial statements in the period of its first application.
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14 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 3.4. Other expected regulatory changes Starting from 2022, work has been underway in Poland by the National Working Group for Benchmark Reform (‘NWG’), the aim of which is to prepare a new benchmark and a timetable for its implementation in such a way as to ensure the security of the financial system. Due to the fact that the reform of reference indicators consists of many interconnected elements, it was determined that this process would be spread over time, and the reform of reference indicators in Poland would be completed in its entirety by the end of 2027. In December 2024, the NWG Steering Committee decided to select the target interest rate reference index, replacing the WIBOR reference index and based on unsecured deposits of Credit Institutions and Financial Institutions with the name ‘POLSTR’. Thus, the NWG Steering Committee verified and modified its previous decision to select the WIRON index. In April 2025, the NWG Steering Committee adopted the updated Road Map for benchmark reform in Poland. 4. Significant accounting policies General information These interim condensed consolidated financial statements have been prepared in Polish Zloty, and all amounts are stated in PLN million, unless indicated otherwise. The financial statements have been prepared on a going concern basis on the assumption that the Group will continue its business operations substantially unchanged in scope for a period of at least one year from the date of approval by the Bank's Management Board of these financial statements for publication, i.e. from 6 August 2025. The accounting policies applied by the Group in these interim condensed consolidated financial statements, apart from the changes in the presentation of the interest income described below, are the same as those applied in the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024. In addition, according to IFRS 34, in the interim condensed consolidated financial statements of Bank Pekao S.A. Group for the first half of 2025 the Group has taken into account the principle of recognizing income tax expense based on the best estimate of the weighted average annual income tax rate expected by the Group for the full financial year. Changes in published standards and interpretations, which became effective on or after 1 January 2025, had no material impact on the Group’s financial statements. The financial statements does not take into consideration interpretations and amendments to standards, pending approval by the European Union or approved by the European Union but came into force or shall come into force after the balance sheet date (Note 3.2 and Note 3.3). Comparability of financial data Following a change introduced in the consolidated financial statements of Bank Pekao S.A. Group for the year ended 31 December 2024, the Group changed the presentation of interest income on finance lease receivables, presenting it as income similar to inte rest. This change was introduced to better reflect the Group's activities and ensure comparability with the banking sector. The change did not affect the level of presented financial result. However, it required restating the comparative data for selected items in the consolidated income statement The impact of changes on the comparative data of selected items of the consolidated income statement is presented in the tables below. CONSOLIDATED INCOME STATEMENT DATA FOR II QUARTER 2024 BEFORE RESTATEMENT CHANGE DATA FOR II QUARTER 2024 AFTER RESTATEMENT Interest income and similar to interest 4 430 - 4 430 Interest income calculated using the effective interest method 4 415 (207) 4 208 Income similar to interest 15 207 222 CONSOLIDATED INCOME STATEMENT DATA FOR I HALF 2024 BEFORE RESTATEMENT CHANGE DATA FOR I HALF 2024 AFTER RESTATEMENT Interest income and similar to interest 8 976 - 8 976 Interest income calculated using the effective interest method 8 950 (411) 8 539 Income similar to interest 26 411 437
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15 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 5. Accounting estimates The preparation of interim financial statements in accordance with IFRS requires the Management Board of the Bank to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and assumptions are reviewed on an ongoing basis by the Group and rely on historic data and other factors including expectation of the future events which seems justified in given circumstances. Estimates and underlying assumptions are subject to a regular review. Revisions to accounting estimates are recongised prospectively starting from the period in which the estimates are revised. Information on the areas of significant estimates in these financial statements is presented below . Expected credit losses With regard to all financial assets that are measured at amortised cost or at fair value through other comprehensive income and off-balance sheet liabilities, i.e. financial guarantees or loan commitments, the Group creates the allowance according to IFRS 9 based on the expected credit losses and taking into account forecasts and expected future economic conditions in the context of credit risk. The process of estimating expected credit losses requires the use of significant estimates, in particular in the area of: 1) assumptions regarding macroeconomic forecasts and possible scenarios 2) rules (thresholds) for identifying a significant increase in credit risk Additional information on expected credit losses is presented in Note 32.1. Impairment of non-current assets (including goodwill) At each balance sheet date the Group reviews its non -current assets for indications of impairment. The Group performs an impairment test of goodwill on a yearly basis or more often if impairment triggers occur. Where such indications exist, the Group makes an estimation of the recoverable value (of a given assets or – in the case of goodwill - all cash-generating units to which the goodwill relates). If the carrying amount of a given asset is in excess of its recoverable value, impairment is defined and a write -down is recorded to adjust the carrying amount to the level of its recoverable value. The recoverable amount of an asset or a cash -generating unit is the higher of its fair value less costs to sell and its value-in-use. Estimation of the value -in-use of an assets (or cash generating unit) requires assumptions to be made regarding, among other, future cash flows which the Group may obtain from the given asset (or cash generating unit), any changes in amount or timing of oc currence of these cash flows and other factors such as the lack of liquidity. The adoption of different measurement assumptions may affect the carrying amount of some of the Group’s non -current assets. As at 30 June 2025, the Group assessed whether the current market conditions have an impact on the impairment of non - current assets. As a result of this analysis, no need was found to make impairment allowances of non -current assets, including goodwill. Provisions for legal risk regarding foreign currency mortgage loans in CHF At each balance sheet date, the Group estimates the amount of possible loss resulting from the legal risk related to foreign currency mortgage loans in CHF, and in the case of loans outstanding as at the balance sheet date, the estimate of this loss is an element of the gross carrying amount of the loan determined by the Group, and the possible excess of the estimated loss over the gross carrying amount is presented similarly to the provision determined for repaid loans, i.e. in accordance with IAS 37 as part of the item 'Provisions'. Key elements of the estimate include: 1) a forecast of the total scale and expected duration of disputes, 2) expected financial effects of future court judgments, including costs of statutory interest, 3) inclusion of the settlement program with borrowers. Details on the main assumptions used to estimate the provisions for legal risk regarding foreign currency mortgage loans in CHF and the sensitivity analysis in relation to the significant assumptions of the provision calculation are presented in the Note 32.2.
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16 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Measurement of derivatives, unquoted debt securities measured at fair value through other comprehensive income and loans and advances to customers measured at fair value through other comprehensive income and measured at fair value through profit or loss The principles of fair value measurement of derivatives, unquoted debt securities measured at fair value through other comprehensive income and loans and advances to customers measured at fair value through other comprehensive income and measured at fair value through profit or loss have not changed compared to 31 December 2024. Additional information on fair value measurement is presented in Note 32.6 6. Operating segments Data reported in the section stem from the application of the management model (‘Model’) used to prepare reports for the Bank's Management Board in which the main criterion for segmentation is the classification of customers based on their profile and service model. Reporting and monitoring of results, for managerial purposes, include all components of the income statement up to the gross profit level, which is the main measure for assessing the segments’ activities by the Bank’s Management Board . Therefore, the income from the segment’s activities as well as operating costs related to those activities (including direct and allocated costs in line with the allocation model applied) and other components of income statement are attached to each segment. The Group settles transactions between segments on an arm’s length basis by applying current market prices. Fund transfers between retail, private, corporate and investment banking segments, and the assets and liabilities management and other area are based on market prices applicable to the funds’ currency and maturity, including liquidity margins . Operating segments The operating segments of the Group are as follows: • Retail and Private banking – all banking activities related to individual customers and micro companies with an annual turnover not exceeding EUR 2 million, using simplified accounting, as well as results of the subsidiaries, and shares in net profit of associates accounted for using the equity method, that are assigned to the retail banking activity, • Corporate and Investment banking – all banking activities related to large companies and results of the subsidiaries that are assigned to the Corporate and Investment banking activity, • Enterprise banking - full scope of banking activities concerning servicing small and medium -sized companies with annual turnover of up to PLN 500 million in the case of single enterprises and PLN 700 million in the case of capital groups and micro companies using full accounting, • Assets and Liabilities management and other – supervision and monitoring of fund transfers, interbank market, debt securities and other instruments, other activities centrally managed as well as the results of subsidiaries and share in net profit of associates accounted for using the equity method that are not assigned to other reported segments .
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17 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Operating segments reporting for the period from 1 January to 30 June 2025 RETAIL & PRIVATE BANKING CORPORATE AND INVESTMENT BANKING ENTERPRISE BANKING ASSETS & LIABILITIES MANAGEMENT AND OTHER TOTAL External interest income 3 660 2 575 1 000 2 585 9 820 External interest expenses (1 257) (1 108) (270) (325) (2 960) Net external interest income 2 403 1 467 730 2 260 6 860 Internal interest income 3 958 1 724 896 (6 578) - Internal interest expenses (2 711) (1 975) (765) 5 451 - Net internal interest income 1 247 (251) 131 (1 127) - Total net interest income 3 650 1 216 861 1 133 6 860 Fee and commission income and expense (Note 8) 724 399 374 - 1 497 Other non-interest income (119) 213 41 9 144 Operating income of reportable segments 4 255 1 828 1 276 1 142 8 501 Personnel expenses (666) (218) (155) (593) (1 632) Other administrative expenses and depreciation (including allocation of operating costs) (1 154) (172) (263) 516 (1 073) Operating costs (1 820) (390) (418) (77) (2 705) Gross operating profit 2 435 1 438 858 1 065 5 796 Net allowances for expected credit losses (47) (84) (245) (8) (384) Costs of legal risk of foreign currency mortgage loans (358) - - - (358) Net operating profit 2 030 1 354 613 1 057 5 054 Contributions to the Bank Guarantee Fund (96) (67) (33) (137) (333) Tax on certain financial institutions (188) (138) (65) (40) (431) Share of loss of associates - - - (4) (4) Profit before tax 1 746 1 149 515 876 4 286 Income tax expense (998) Net profit 3 288 Attributable to equity holders of the Bank 3 286 Attributable to non-controlling interest 2 Allocated assets 92 907 91 964 31 757 120 510 337 138 Unallocated assets 2 496 Total assets 339 634 Allocated liabilities 172 258 75 436 39 546 21 048 308 288 Unallocated liabilities 186 Total liabilities 308 474
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18 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Operating segments reporting for the period from 1 January to 30 June 2024 RETAIL & PRIVATE BANKING CORPORATE AND INVESTMENT BANKING ENTERPRISE BANKING ASSETS & LIABILITIES MANAGEMENT AND OTHER TOTAL External interest income 3 307 2 553 950 2 166 8 976 External interest expenses (1 320) (1 142) (233) (274) (2 969) Net external interest income 1 987 1 411 717 1 892 6 007 Internal interest income 3 777 1 928 881 (6 586) - Internal interest expenses (2 636) (2 273) (744) 5 653 - Net internal interest income 1 141 (345) 137 (933) - Total net interest income 3 128 1 066 854 959 6 007 Fee and commission income and expense (Note 8) 639 359 346 21 1 365 Other non-interest income 8 98 39 161 306 Operating income of reportable segments 3 775 1 523 1 239 1 141 7 678 Personnel expenses (670) (209) (157) (580) (1 616) Other administrative expenses and depreciation (including allocation of operating costs) (1 078) (161) (221) 497 (963) Operating costs (1 748) (370) (378) (83) (2 579) Gross operating profit 2 027 1 153 861 1 058 5 099 Net allowances for expected credit losses (133) (222) (24) (34) (413) Costs of legal risk of foreign currency mortgage loans (243) - - - (243) Net operating profit 1 651 931 837 1 024 4 443 Contributions to the Bank Guarantee Fund (91) (62) (29) (57) (239) Tax on certain financial institutions (177) (126) (58) (87) (448) Share of profit of associates - - - 4 4 Profit before tax 1 383 743 750 884 3 760 Income tax expense (822) Net profit 2 938 Attributable to equity holders of the Bank 2 936 Attributable to non-controlling interest 2 Allocated assets 88 085 87 787 27 915 109 827 313 614 Unallocated assets 2 432 Total assets 316 046 Allocated liabilities 161 899 72 573 37 969 14 804 287 245 Unallocated liabilities 578 Total liabilities 287 823 Reconciliations of operating income for reportable segments I HALF 2025 I HALF 2024 Net interest income 6 860 6 007 Net fee and commission income 1 497 1 365 Dividend income 33 30 Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result 176 206 Result from derecognition of financial assets and financial liabilities not at fair value through profit or loss 45 3 Other operating income 80 102 Other operating expenses (190) (35) Operating income for reportable segments 8 501 7 678
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19 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 7. Interest income and expense Interest income and similar to interest II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Interbank placements 157 319 177 346 Loans and advances and other receivables from customers 2 964 5 877 2 648 5 485 measured at amortise cost 2 950 5 852 2 641 5 471 measured at fair value through other comprehensive income 5 9 1 3 measured at fair value through profit or loss 9 16 6 11 Receivables from financial leases 201 408 207 411 Debt securities 1 462 2 951 1 294 2 555 measured at amortise cost 1 193 2 332 883 1 720 measured at fair value through other comprehensive income 257 596 402 820 measured at fair value through profit or loss 12 23 9 15 Reverse repo transactions 128 265 104 179 Total (*) 4 912 9 820 4 430 8 976 (*) Including revenues from hedging derivative instruments in the amounts respectively, minus PLN 122 million for II quarter 2025 (minus PLN 187 million for II quarter 2024) and minus PLN 270 million for I Half 2025 (minus PLN 366 million for I Half 2024). Interest income and similar to interest II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Interest income calculated using the effective interest method on financial instruments valued: 4 690 9 373 4 208 8 539 measured at amortise cost 4 428 8 768 3 805 7 716 measured at fair value through other comprehensive income 262 605 403 823 Income similar to interest 222 447 222 437 Total 4 912 9 820 4 430 8 976 Interest expense II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Deposits from customers (1 076) (2 171) (1 128) (2 223) Interbank deposits (17) (33) (9) (27) Repo transactions (57) (99) (48) (102) Loans and advances received (48) (102) (60) (121) Leasing (7) (14) (8) (16) Debt securities (261) (541) (255) (480) Total (*) (1 466) (2 960) (1 508) (2 969) (*) Including the expenses from hedging derivative instruments in the amounts respectively, plus PLN 15 million on II quarter 2025 (plus PLN 9 million on II quarter 2024) and plus PLN 29 million for I Half 2025 (plus PLN 15 million for I Half 2024).
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20 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 8. Fee and commission income and expense Fee and commission income II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Accounts maintenance, payment orders and cash transactions 144 303 145 300 Payment cards 228 437 214 415 Loans and advances 128 240 120 229 Margin on foreign exchange transactions with clients 191 367 179 344 Service and sell investment and insurance products 172 331 136 259 Securities operations 69 122 46 94 Custody activity 23 44 20 38 Guarantees, letters of credit and similar transactions 14 39 24 48 Other 29 58 28 55 Total 998 1 941 912 1 782 Fee and commission expense II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Payment cards (141) (277) (132) (258) Cash turnover (26) (48) (30) (56) Money orders and transfers (6) (12) (5) (11) Securities and derivatives operations (12) (23) (10) (20) Acquisition services (21) (33) (19) (33) Custody activity (9) (16) (7) (13) Accounts maintenance (2) (4) (2) (3) Investment funds management (1) (2) (1) (2) Other (15) (29) (9) (21) Total (233) (444) (215) (417) Fee and commission income and expense by operating segment reporting is present in the tables below. I HALF 2025 RETAIL & PRIVATE BANKING CORPORATE AND INVESTMENT BANKING ENTERPRISE BANKING ASSETS & LIABILITIES MANAGEMENT AND OTHER TOTAL Accounts maintenance, payment orders and cash transactions 146 60 95 2 303 Payment cards 256 152 27 2 437 Margin on foreign exchange transactions with clients 134 88 144 1 367 Service and sell investment and insurance products 310 19 2 - 331 Securities operation, including custody activity 55 107 3 1 166 Other 32 15 11 - 58 Total fee and commission income from contracts with customers in the scope of IFRS 15 933 441 282 6 1 662 Loans and advances 22 106 111 1 240 Guarantees, letters of credit and similar transactions (1) 21 18 1 39 Total fee and commission income as presented in the Operating Segment Note 6 954 568 411 8 1 941 Total fee and commission expenses (230) (169) (37) (8) (444) Net fee and commission income 724 399 374 - 1 497
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21 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. I HALF 2024 RETAIL & PRIVATE BANKING CORPORATE AND INVESTMENT BANKING ENTERPRISE BANKING ASSETS & LIABILITIES MANAGEMENT AND OTHER TOTAL Accounts maintenance, payment orders and cash transactions 151 57 90 2 300 Payment cards 243 144 25 3 415 Margin on foreign exchange transactions with clients 128 79 137 - 344 Service and sell investment and insurance products 233 24 - 2 259 Securities operation, including custody activity 36 94 1 1 132 Other 31 12 12 - 55 Total fee and commission income from contracts with customers in the scope of IFRS 15 822 410 265 8 1 505 Loans and advances 26 104 98 1 229 Guarantees, letters of credit and similar transactions (1) 31 17 1 48 Total fee and commission income as presented in the Operating Segment Note 6 847 545 380 10 1 782 Total fee and commission expenses (208) (186) (34) 11 (417) Net fee and commission income 639 359 346 21 1 365 9. Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Result on loans and advances to customers measured mandatorily at fair value through profit or loss (9) (28) 8 16 Result on securities measured mandatorily at fair value through profit or loss 4 33 (14) 1 Foreign exchange result 66 128 35 84 Result on derivatives 13 7 36 67 Result on securities held for trading 16 36 22 38 Total 90 176 87 206 10. Result on derecognition of financial assets and liabilities not measured at fair value through profit or loss Realized gains II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Financial assets measured at amortised cost 7 9 2 9 Financial assets measured at fair value through other comprehensive income 37 45 5 12 Financial liabilities measured at amortised cost - - - - Total 44 54 7 21 Realized losses II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Financial assets measured at amortised cost (6) (9) (13) (18) Financial assets measured at fair value through other comprehensive income - - - - Financial liabilities measured at amortised cost - - - - Total (6) (9) (13) (18) Net realized profit / loss 38 45 (6) 3
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22 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 11. Net allowances for expected credit losses II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Receivables from banks and cash and cash equivalents (1) (3) 2 1 Loans and other financial assets measured at amortised cost (*) (**) (226) (394) (156) (365) Debt securities measured at amortised cost (1) (11) (6) (8) Loans measured at fair value through other comprehensive income (1) (9) (5) (5) Debt securities measured at fair value through other comprehensive income (1) (4) - 3 Off-balance sheet commitments (1) 37 (67) (39) Total (231) (384) (232) (413) (*) The item includes impairment losses on receivables from financial leases. (**) In 2025 the Group sold a portfolio of loan receivables with a total gross carrying amount of PLN 187 million (the realized gross result amounted to PLN 31 million). 12. Other operating income and expenses Other operating income II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Gains on disposal of property, plant and equipment 1 24 45 56 Premises rental income, terminals and IT equipment 6 12 6 12 Operating leasing net income 1 2 2 2 Compensation, recoveries, penalty fees and fines received 4 8 3 7 Miscellaneous income 3 9 3 10 Recovery of debt collection costs 5 8 3 8 Net revenues from sale of products, goods and services 1 3 1 3 Other 3 14 2 4 Total 24 80 65 102 Other operating expenses II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Provision for liabilities disputable and other provisions (93) (93) 41 40 Credit and factoring debt collection costs (7) (14) (6) (14) Card transactions monitoring costs (6) (11) (6) (11) Costs of pursuing disputed receivables and complaints (18) (39) (10) (21) Impairment allowance on fixed assets, litigations and other assets - (2) - (3) Other (20) (31) (11) (26) Total (144) (190) 8 (35)
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23 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 13. General administrative expenses and depreciation Personnel expenses II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Wages and salaries, including: (706) (1 365) (742) (1 350) cost of contributions to Employee Capital Plans (9) (14) (8) (13) Insurance and other charges related to employees, including: (128) (255) (134) (252) salary surcharges (108) (215) (116) (216) Share-based payments expenses (6) (12) (7) (14) Total (840) (1 632) (883) (1 616) Other administrative expenses II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Overheads, including: (338) (630) (271) (566) IT and telecommunications expenses (130) (250) (101) (207) property maintenance and service expenses (57) (120) (59) (132) advertising and marketing expenses (56) (82) (34) (63) consulting services and information sharing expenses (37) (70) (27) (56) Tax on certain financial institutions (215) (431) (225) (448) Contributions to the Bank Guarantee Fund (26) (333) - (239) to the resolution fund - (281) - (239) to the banks’ guarantee fund (26) (52) - - Fees to cover costs of supervision over banks (KNF) - (43) - (36) Other taxes and fees (13) (28) (11) (25) Total (592) (1 465) (507) (1 314) Depreciation II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Property, plant and equipment (88) (176) (89) (169) Intangible assets (97) (196) (87) (167) Total (185) (372) (176) (336) Total administrative expenses and depreciation (1 617) (3 469) (1 566) (3 266)
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24 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 14. Income tax The below note presents the components of tax charge of profit before income tax II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Profit before income tax 2 093 4 286 1 800 3 760 Tax charge according to applicable tax rate 398 814 342 714 Non-taxable income (10) (16) 8 (14) Non tax deductible costs including: 145 262 87 182 Bank Guarantee Fund fee 5 63 - 45 banking tax 41 82 43 85 the provision for legal risk regarding foreign currency mortgage loans 53 59 37 44 allowances for expected credit losses 20 24 1 1 other non-tax deductible costs 26 34 6 7 Impact of other tax rates applied in accordance with art.19.1.2 of CIT Act - - - - Tax relieves not included in the income statement (5) (8) (77) (77) The effect of the estimated yearly average effective tax rate (38) (48) 18 18 Other 1 (6) 2 (1) Effective income tax charge on gross profit 491 998 380 822 Effective tax rate 23,46% 23,29% 21,11% 21,86% The basic components of income tax charge presented in the income statement and equity II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 INCOME STATEMENT Current tax charge in the income statement (618) (1 056) (390) (895) Adjustments related to the current tax from previous years (1) (8) (2) 3 Other taxes (e.g. withholding tax) (1) (1) (1) (1) Current tax (620) (1 065) (393) (893) Occurrence and reversal of temporary differences 129 67 13 71 Deferred tax 129 67 13 71 Tax charge in the consolidated income statement (491) (998) (380) (822) EQUITY Current tax Income and costs disclosed in other comprehensive income: revaluation of financial instruments – cash flows hedges (62) (121) (10) 31 fair value revaluation through other comprehensive income (24) (43) (8) (19) Tax on items that are or may be reclassified subsequently to profit or loss (86) (164) (18) 12 Fair value revaluation through other comprehensive income – equity securities (5) (18) 2 13 Remeasurements the defined benefit liabilities 1 1 - - Tax charge on items that will never be reclassified to profit or loss (4) (17) 2 13 Deferred tax (90) (181) (16) 25 Total charge (581) (1 179) (396) (797)
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25 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 15. Earnings per share Basic earnings per share Basic earnings per share are calculated by dividing the net profit attributable to equity holders of the Bank by the weighted average number of the ordinary shares outstanding during the period. II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Net profit 1 601 3 286 1 419 2 936 Weighted average number of ordinary shares in the period 262 470 034 262 470 034 262 470 034 262 470 034 Earnings per share (in PLN per share) 6.10 12.52 5.41 11.19 Diluted earnings per share Diluted earnings per share are calculated by dividing the net profit attributable to equity holders of the Bank by the weighted average number of the ordinary shares outstanding during the given period adjusted for all potential dilution of ordinary shares. As at 30 June 2025 and 30 June 2024 here were no diluting instruments in the Group. II QUARTER 2025 I HALF 2025 II QUARTER 2024 I HALF 2024 Net profit 1 601 3 286 1 419 2 936 Weighted average number of ordinary shares in the period 262 470 034 262 470 034 262 470 034 262 470 034 Weighted average number of ordinary shares for the purpose of calculation of diluted earnings per share 262 470 034 262 470 034 262 470 034 262 470 034 Diluted earnings per share (in PLN per share) 6.10 12.52 5.41 11.19 16. Dividends On 24 April 2025, the Ordinary General Meeting of Bank Pekao S.A. adopted a resolution on the distribution of the Bank's net profit for 2024 in the amount of PLN 6 425 million. The amount of PLN 4 819 million was allocated for dividend to shareholders, and the amount of PLN 1 606 million to the reserve capital. The dividend amount per share was PLN 18.36. The dividend record date was 7 May 2025, and the dividend payment date was 23 May 2025. 17. Cash and cash equivalents 30.06.2025 31.12.2024 Cash 3 840 4 461 Current account and deposits at Central Bank 12 411 7 577 Amounts due from banks with an original maturity of up to 3 months 1 689 2 236 Gross carrying amount 17 940 14 274 Allowances for expected credit losses (8) (5) Net carrying amount 17 932 14 269 In the period from 9 June 2025 to 13 July 2025, the Bank is obliged to maintain an average mandatory reserve of PLN 9 072 million (in the period from 31 December 2024 to 9 February 2025: PLN 8 829 million). As at 30 June 2025 the interest rate of funds held on the mandatory reserve account is at 5.25% (as at 31 December 2024 – 5.75%).
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26 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 18. Loans and advances to banks Loans and advances to banks by product type 30.06.2025 31.12.2024 Interbank placements 227 5 Loans and advances 269 65 Other 113 102 Gross carrying amount 609 172 Allowances for expected credit losses - - Carrying amount 609 172 19. Derivative financial instruments (held for trading) Fair value of trading derivatives 30.06.2025 ASSETS LIABILITIES Interest rate transactions Interest Rate Swaps (IRS) 3 375 3 436 Forward Rate Agreements (FRA) 58 56 Options 18 21 Other - 1 Foreign currency Cross-Currency Interest Rate Swaps (CIRS) 35 152 Currency Forward Agreements 212 155 Currency Swaps (FX-Swap) 260 226 Options for currency and gold 31 58 Transactions based on commodities and precious metals Options 29 29 Other 191 157 Total 4 209 4 291 31.12.2024 ASSETS LIABILITIES Interest rate transactions Interest Rate Swaps (IRS) 3 561 3 481 Forward Rate Agreements (FRA) 88 84 Options 27 26 Other - - Foreign currency Cross-Currency Interest Rate Swaps (CIRS) 31 169 Currency Forward Agreements 54 159 Currency Swaps (FX-Swap) 184 95 Options for currency and gold 24 31 Transactions based on commodities and precious metals Options 17 17 Other 236 204 Total 4 222 4 266
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27 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 20. Loans and advances to customers (including receivables from finance leases) Loans and advances to customers by product type 30.06.2025 AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL Mortgage loans (***) 81 081 - 4 81 085 Current accounts 16 691 - - 16 691 Operating loans 11 025 148 - 11 173 Investment loans 29 315 43 2 29 360 Cash loans 16 331 - - 16 331 Payment cards receivables 1 306 - - 1 306 Financial leasing 12 520 - - 12 520 Factoring 8 977 - - 8 977 Other loans and advances 4 683 - 384 5 067 Reverse repo transactions 4 836 - - 4 836 Gross carrying amount/Fair value (*) 186 765 191 390 187 346 Allowances for expected credit losses (**) (6 122) - - (6 122) Carrying amount 180 643 191 390 181 224 (*) Fair value applies to loans and advances to customers measured at fair value through other comprehensive income and at fair v alue through profit or loss. (**) The allowances for expected credit losses and advances to customers measured at fair value through other comprehensive income in the amount of PLN 11 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. (***) In this the adjustment of the gross carrying amount regarding the legal risk of foreign currency mortgage loans in the amount of PLN 1 088 million described in the Note 32.2. 31.12.2024 AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL Mortgage loans (***) 80 114 - 5 80 119 Current accounts 14 035 - - 14 035 Operating loans 12 335 119 4 12 458 Investment loans 27 145 128 4 27 277 Cash loans 15 304 - - 15 304 Payment cards receivables 1 276 - - 1 276 Financial leasing 11 902 - - 11 902 Factoring 9 366 - - 9 366 Other loans and advances 4 154 - 347 4 501 Reverse repo transactions 4 685 - - 4 685 Gross carrying amount/Fair value (*) 180 316 247 360 180 923 Allowances for expected credit losses (**) (5 898) - - (5 898) Carrying amount 174 418 247 360 175 025 (*) Fair value applies to loans and advances to customers measured at fair value through other comprehensive income and at fair v alue through profit or loss. (**) The allowances for expected credit losses and advances to customers measured at fair value through other comprehensive income in the amount of PLN 3 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. (***) In this the adjustment of the gross carrying amount regarding the legal risk of foreign currency mortgage loans in the amount of PLN 1 193 million described in the Note 32.2.
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28 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Loans and advances to customers by customer type 30.06.2025 AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CARRYING AMOUNT (*) FAIR VALUE THROUGH PROFIT OR LOSS - CARRYING AMOUNT TOTAL GROSS CARRYING AMOUNT ALLOWANCES FOR EXPECTED CREDIT LOSSES CARRYING AMOUNT Corporate 99 338 (4 133) 95 205 191 6 95 402 Individuals (**) 86 172 (1 985) 84 187 - 384 84 571 Budget entities 1 255 (4) 1 251 - - 1 251 Loans and advances to customers 186 765 (6 122) 180 643 191 390 181 224 (*) The allowances for expected credit losses and advances to customers measured at fair value through other comprehensive income in the amount of PLN 11 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. (**) In this the adjustment of the gross carrying amount regarding the legal risk of foreign currency mortgage loans in the amount of PLN 1 088 million described in the Note 32.2. 31.12.2024 AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CARRYING AMOUNT (*) FAIR VALUE THROUGH PROFIT OR LOSS - CARRYING AMOUNT TOTAL GROSS CARRYING AMOUNT ALLOWANCES FOR EXPECTED CREDIT LOSSES CARRYING AMOUNT Corporate 94 948 (3 792) 91 156 247 7 91 410 Individuals (**) 84 067 (2 100) 81 967 - 348 82 315 Budget entities 1 301 (6) 1 295 - 5 1 300 Loans and advances to customers 180 316 (5 898) 174 418 247 360 175 025 (*) The allowances for expected credit losses and advances to customers measured at fair value through other comprehensive income in the amount of PLN 3 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. (**) In this the adjustment of the gross carrying amount regarding the legal risk of foreign currency mortgage loans in the amount of PLN 1 193 million described in the Note 32.2. Additional information on credit risk is presented in Note 32.1. 21. Securities 30.06.2025 31.12.2024 Debt securities held for trading 2 256 1 064 Debt securities measured at amortised cost 107 755 115 584 Debt securities measured at fair value through other comprehensive income 14 961 12 991 Equity instruments held for trading 17 8 Equity instruments designated for measurement at fair value through other comprehensive income 421 326 Equity instruments mandatorily measured at fair value through profit or loss 269 272 Carrying amount 125 679 130 245 Debt securities held for trading 30.06.2025 31.12.2024 Debt securities issued by central governments 2 067 911 T- bills 107 19 T- bonds 1 960 892 Debt securities issued by banks 132 129 Debt securities issued by business entities 57 24 Debt securities issued by local governments - - Carrying amount 2 256 1 064
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29 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Debt securities measured at amortised cost 30.06.2025 31.12.2024 Debt securities issued by State Treasury 65 333 56 333 T-bills 8 158 5 501 T-bonds 57 175 50 832 Debt securities issued by central banks 6 108 25 060 Debt securities issued by banks 24 623 21 729 Debt securities issued by business entities 6 875 7 519 Debt securities issued by local governments 4 947 5 061 Gross carrying amount 107 886 115 702 Allowances for expected credit losses (131) (118) Carrying amount 107 755 115 584 Debt securities measured at fair value through other comprehensive income 30.06.2025 31.12.2024 Debt securities issued by State Treasury 8 695 7 052 T-bills 1 024 - T-bonds 7 671 7 052 Other - - Debt securities issued by central banks 999 1 000 Debt securities issued by banks 1 163 1 131 Debt securities issued by business entities 2 742 2 361 Debt securities issued by local governments 1 362 1 447 Carrying amount 14 961 12 991 impairment of assets (*) (19) (16) (*) The impairment allowance for debt securities measured at fair value through other comprehensive income is included in the ‘Revaluation reserve item and does not reduce the carrying amount. Equity securities held for trading 30.06.2025 31.12.2024 Shares 17 8 Carrying amount 17 8 Equity instruments designated for measurement at fair value through other comprehensive income 30.06.2025 31.12.2024 Shares 421 326 Carrying amount 421 326 Equity instruments mandatorily measured at fair value through profit or loss 30.06.2025 31.12.2024 Shares 269 272 Carrying amount 269 272
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30 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 22. Assets pledged as security for liabilities TYPE OF TRANSACTION AS AT 30.06.2025 SECURITY CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES VALUE OF LIABILITIES SUBJECT TO SECURITY Repo transactions Bonds held for trading (measured at fair value through profit or loss) 27 26 27 Repo transactions Bonds measured at fair value through other comprehensive income 905 929 906 Total 932 955 933 TYPE OF TRANSACTION AS AT 31.12.2024 SECURITY CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES VALUE OF LIABILITIES SUBJECT TO SECURITY Repo transactions Bonds held for trading (measured at fair value through profit or loss) 345 339 346 Repo transactions Bonds measured at fair value through other comprehensive income 1 000 1 033 1 000 Total 1 345 1 372 1 346 Apart from assets pledged as security for liabilities presented separately in the financial statement, the Group also identifies liabilities do not meet the criterion of separate presentation in accordance with IFRS 9. TYPE OF TRANSACTION AS AT 30.06.2025 SECURITY CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES VALUE OF LIABILITIES SUBJECT TO SECURITY Coverage of Fund for protection of guaranteed assets to the benefit of the Bank Guarantee Fund Bonds - - - Coverage of payment commitments to the guarantee fund for the Bank Guarantee Fund Bonds 309 300 189 Coverage of payment commitments to the resolution fund for the Bank Guarantee Fund Bonds 630 655 440 Lombard and technical loan received from the National Bank of Poland Bonds 6 073 6 662 - Other loans Bonds 43 44 34 Debt securities issued Loans, bonds 1 886 1 878 1 496 Coverage of the Guarantee Fund for the Settlement of Stock Exchange Transactions to Central Securities Depository (KDPW) Cash deposits 53 53 - Derivatives Bonds - - - Uncommitted Collateralized Intraday Technical Overdraft Facility Agreement Bonds 27 30 - Repo transactions Bonds purchased in reverse- repo and buy-sell back transactions - - -
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31 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. TYPE OF TRANSACTION AS AT 31.12.2024 SECURITY CARRYING VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES NOMINAL VALUE OF ASSETS PLEDGED AS SECURITY FOR LIABILITIES VALUE OF LIABILITIES SUBJECT TO SECURITY Coverage of Fund for protection of guaranteed assets to the benefit of the Bank Guarantee Fund Bonds 722 710 - Coverage of payment commitments to the guarantee fund for the Bank Guarantee Fund Bonds 306 300 173 Coverage of payment commitments to the resolution fund for the Bank Guarantee Fund Bonds 635 655 440 Lombard and technical loan received from the National Bank of Poland Bonds 6 516 6 662 - Other loans Bonds 49 50 40 Debt securities issued Loans, bonds 1 758 1 764 1 446 Coverage of the Guarantee Fund for the Settlement of Stock Exchange Transactions to Central Securities Depository (KDPW) Cash deposits 44 44 - Derivatives Bonds - - - Uncommitted Collateralized Intraday Technical Overdraft Facility Agreement Bonds 28 30 - 23. Intangible assets 30.06.2025 31.12.2024 Intangible assets 1 749 1 799 research and development expenditures 478 454 licenses and patents 725 770 other 91 97 assets under construction 455 478 Goodwill 749 749 Total 2 498 2 548 24. Property, plant and equipment 30.06.2025 31.12.2024 Non-current assets 1 897 1 807 land and buildings 1 164 1 168 machinery and equipment 407 379 transport vehicles 171 112 other 155 148 Non-current assets under construction and prepayments 156 218 Total 2 053 2 025 In the period from 1 January to 30 June 2025 the Group acquired ‘Property, plant and equipment’ amounted PLN 149 million (in 2024 - PLN 454 million), while the net carrying amount of property, plant and equipment sold amounted to PLN 38 million (in 2024 - PLN 179 million). In the period from 1 January to 30 June 202 5 and in 2024 there have been no property, plant and equipment whose title is restricted and pledged as security for liabilities. Contractual commitments As at 30 June 202 5 the contractual commitments for the acquisition of property, plant and equipment amounted to PLN 25 million (as at 31 December 2024 - PLN 31 million).
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32 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 25. Amounts due to other banks Amounts due to other banks by product type 30.06.2025 31.12.2024 Current accounts 1 393 608 Interbank deposits and other liabilities 1 173 1 008 Loans and advances received 4 969 5 382 Repo transactions 27 346 Total 7 562 7 344 26. Financial liabilities held for trading 30.06.2025 31.12.2024 Debt securities issued by central governments 1 050 1 399 T-bonds 1 050 1 399 Total 1 050 1 399 27. Amounts due to customers Amounts due to customers by entity and product type 30.06.2025 31.12.2024 Amounts due to corporate 88 188 89 197 current accounts 61 541 62 858 term deposits and other liabilities 26 647 26 339 Amounts due to budget entities 22 287 20 128 current accounts 19 259 18 214 term deposits and other liabilities 3 028 1 914 Amounts due to individuals 153 974 149 710 current accounts 113 505 105 855 term deposits and other liabilities 40 469 43 855 Repo transactions 906 1 000 Lease liabilities 701 707 Total 266 056 260 742 28. Debt securities issued Debt securities issued by type 30.06.2025 31.12.2024 Liabilities from bonds 14 604 14 721 Mortgage bonds 1 496 1 446 Total 16 100 16 167 The Group redeems its own debt securities issued on a timely basis.
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33 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 29. Provisions Changes in provisions in the reporting period I HALF 2025 PROVISIONS FOR LITIGATION AND CLAIMS (*) PROVISONS FOR DEFINED BENEFIT PLANS PROVISIONS FOR OFF- BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN OTHER PROVISIONS (**) TOTAL Opening balance 1 461 314 477 58 2 310 Provision charges/revaluation 492 19 203 - 714 Provision utilization (98) (20) - (3) (121) Provision releases (1) - (240) (21) (262) Foreign currency exchange differences - - (4) - (4) Other changes - 5 - - 5 Closing balance 1 854 318 436 34 2 642 Short term - - 63 3 66 Long term 1 854 318 373 31 2 576 (*) Including the provision for legal risk regarding foreign currency mortgage loans in CHF in the amount of PLN 1 590 million (details of this provision are presented in Note 32.2). (**) Including provisions for refunds to customers of increased mortgage loan margins before establishing a mortgage in the amount of PLN 29 million as at 30 June 2025. 2024 PROVISIONS FOR LITIGATION AND CLAIMS (*) PROVISONS FOR DEFINED BENEFIT PLANS PROVISIONS FOR OFF- BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN OTHER PROVISIONS (**) TOTAL Opening balance 970 293 504 189 1 956 Provision charges/revaluation 750 33 346 63 1 192 Provision utilization (254) (13) - (69) (336) Provision releases (6) - (368) (37) (411) Foreign currency exchange differences 1 - (5) - (4) Other changes - 1 - (88) (87) Closing balance 1 461 314 477 58 2 310 Short term - 50 76 4 130 Long term 1 461 264 401 54 2 180 (*) Including the provision for legal risk regarding foreign currency mortgage loans in CHF in the amount of PLN 1 308 million (details of this provision are presented in Note 32.2). (**) Including provisions for refunds to customers of increased mortgage loan margins before establishing a mortgage in the amount of PLN 52 million as at 31 December 2024. 30. Contingent commitments and legal claims Court cases As of 30 June 2025 the following court cases are pending with involvement of the Group, that are important in view of the value of the object of litigation and the risk of outflow of funds (against the Group): • brought by the administrator of the restructuring estate of a joint -stock company - a claim to establish that the provisions of the general agreement are ineffective in relation to the restructuring mass of a joint -stock company to the extent that they provide for the transfer of receivables to the Bank in the part including VAT. Value of the object of litigation PLN 190.7 million, initiation date – 10 March 2025. In the current factual and legal situation, the Bank assesses the funds outflow risk - which may result from the resolution of the determination case - as possible, • brought by the association – a claim for payment of damages against the Bank and 2 other legal person for damages incurred in connection with irregularities committed by the defendants, according to the association, when offering the purchase of premises a nd financing the construction of a condohotel. Value of the object of litigation PLN 86.7 million litigation, initiation date – 14 November 2022. In the present factual and legal circumstances the Bank assesses the funds outflow risk as possible, • brought by the receiver for a joint stock company in liquidation bankruptcy – lawsuit for payment of compensation for a damage incurred as a result of the Bank’s demanding immediate payment of the amounts due in virtue of payment of the price from the credit receivables transfer agreement and conducting debt enforcement collection of the portion of the price remaining for payment by a court enforcement officer. V alue of the object of litigation PLN 57.5 million, litigation initiation date – 30 April 2015. In the present factual and legal circumstances the Bank assesses the funds outflow risk as possible,
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34 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. • brought by a natural person – lawsuit for payment by the Bank of an amount charged by virtue of settlement of financial future or forward transactions. Value of the object of litigation PLN 38.9 million, litigation initiation date 2 October 2016. On 6 May 2019 the Regional Court in Warsaw issued a sentence ordering the Bank to pay the amount of PLN 3.4 million and as to the remainder the Court dismissed the suit. The sentence is not legally valid. The Bank and the plaintiff appealed against the judgment. On the 16 December 2020 the Court of Appeal in Warsaw quashed the sentence of the Regional Court in its entirety and remitted the case to that Court. In the present factual and legal circumstances the Bank assesses the funds outflow risk in the amount of PLN 35.5 million as possible; • brought by a natural person – lawsuit for invalidation of the loan agreement and legal collateral agreements and payment of undue benefit, damages and compensation. Value of the object of litigation PLN 30.5 million, litigation initiation date – 22 June 2023. In the present factual and legal circumstances, the Bank assesses the funds outflow risk as possible. None of the litigations pending in I half of year 2025 before the court, authority competent for arbitrary proceedings or a body of public administration posed a threat for financial liquidity of the Group. The Group created provisions for litigations against the Group entities which, according to the legal opinion, are connected with a risk of the funds outflow resulting from the fulfillment of the obligation. The value of the provisions as at 30 June 2025 is PLN 1 853 million, of which PLN 1 590 million concerns provisions for legal risk related to foreign currency mortgage loans in CHF (PLN 1 461 million as at 31 December 2024 of which 1 308 million concerns provisions for legal risk related to foreign currency mortgage loans in CHF) - details are presented in Note 32.2 Litigation against the Group concerning the free credit sanction As at 30 June 2025 there were 1 006 proceedings with a total value of PLN 29.2 million in dispute concerning the sanction of a free loan within the meaning of Article 45 of the Act of 12 May 2011 on consumer credit, in which the plaintiffs claim reimbursement of interest and other costs incurred in connection with the conclusion of the loan agreement (as at 31 December 2024 there were 648 proceedings with a total value of PLN 18.5 million). By 30 June 2025, 78 cases were finally concluded, of which in 67 pr oceedings the judgments were favorable to the Group and in 11 unfavorable (by 31 December 2024, 53 cases were finally concluded, of which in 47 proceedings the judgments were favorable to the Group and in 6 unfavorable). The Group disputes the validity of the claims raised in these cases. The case law to date has been mostly favorable to the Group. Proceedings of the Office of the Polish Financial Supervision Authority On 22 November 2023, the Polish Financial Supervision Authority (‘KNF’) started administrative proceedings against the Bank that might result in a penalty being imposed on the Bank under Article 176i(1)(4) of the Act on trading in financial instruments. The proceedings were discontinued in the second quarter of 2025. Proceedings of the Office of Competition and Consumer Protection Proceedings of the President of the Office of Competition and Consumer Protection regarding irregularities in the area of complaints In a letter of 10 November 2023, the President of the Office of Competition and Consumer Protection (‘UOKiK’) initiated proceedings against the Bank regarding the Bank's use of practices violating the collective interests of consumers in relation to the complaint handling procedure. The Bank submitted an application to the President of the Office of Competition and Consumer Protection with a request for a decision under Article 28 of the Act on competition and consumer protection, so-called commitment decision. As at 30 June 2025, the Bank recognizes a provision in the amount of PLN 98.2 million regarding the implementation of the commitment proposal presented to the President of the Office of Competition and Consumer Protection. (provision in the amount of PLN 64.1 million as at 31 December 2024). Proceedings of the President of the Office of Competition and Consumer Protection regarding unauthorized transactions On 8 February 2024, the President of the Office of Competition and Consumer Protection initiated proceedings regarding practices violating the collective interests of consumers regarding unauthorized payment transactions and the failure to return by the D+1 deadline. As at 30 June 2025, the Bank recognizes a provision in the amount of PLN 48.6 million regarding to the proposal for the implementation of the commitment presented by the Bank to the President of the Office of Competition and Consumer Protection. Due to the fact that the proceedings and conversations with the Office of Competition and Consumer Protection are ongoing, it is possible that the amount of the provision will change in the future.
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35 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Proceedings of the Office of Competition and Consumer Protection regarding irregularities in the application of the so-called credit holidays By letter dated 21 January 2025, the Office of Competition and Consumer Protection initiated proceedings against the Bank concerning the Bank's use of practices violating the collective interests of consumers in the scope of suspension of loan repayment (so-called credit holidays). As at 30 June 2025, the Bank recognizes a provision in the amount of PLN 2 6 million for the implementation of the commitment. Explanatory proceedings of the President of the Office of Competition and Consumer Protection regarding antitrust issues The Office of Competition and Consumer Protection is currently conducting explanatory proceedings against banks aimed at preliminary determination of whether there may have been a violation of the provisions of the Act on the Protection of Competition an d Consumers in connection with the assessment of the creditworthiness of customers and the granting of loans or in connection with the activities of payment organizations or banks in the area of determining the amount, settlement or collection of fees related to transactions using ATMs, which could constitute a justification for initiating antitrust proceedings. The Bank is covered by these explanatory proceedings. At the current stage, the Bank has not created a provision for the proceedings. Proceedings conducted by the Financial Ombudsman As at 30 June 2025 the Financial Ombudsman is conducting 75 administrative proceedings against the Bank for failure to respond to customer complaints on time, and the total amount of penalties imposed on the Bank in these proceedings is PLN 0.6 million, of which PLN 0.6 million was paid by the Bank . The current value of the provision recognized is PLN 0.8 million. Financial commitments granted Financial commitments granted by entity 30.06.2025 31.12.2024 Financial commitments granted banks 728 581 customers 61 650 60 408 budget entities 1 295 1 160 Total 63 673 62 149 Guarantees given Guarantees given by entity 30.06.2025 31.12.2024 Given to banks: 1 133 1 110 guarantees 1 096 1 088 securities’ underwriting guarantees - - confirmed export letters of credit 37 22 Given to customers: 9 558 9 407 guarantees 8 521 8 291 securities’ underwriting guarantees 1 029 1 107 sureties 8 9 Given to budget entities: 695 328 guarantees 37 33 securities’ underwriting guarantees 658 295 Total 11 386 10 845
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36 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Off-balance sheet commitments received Off-balance sheet commitments received by entity 30.06.2025 31.12.2024 Financial received 1 768 1 396 banks 1 555 986 customers 213 410 budget entities - - Guarantees received 42 899 33 633 banks 9 654 11 366 customers 32 155 21 113 budget entities 1 090 1 154 Total 44 667 35 029 Moreover, the Group has the ability to obtain financing from National Bank of Poland secured securities. 31. Related party transactions The transactions between the Bank and related parties are typical transactions arising from current operating activities conducted by the Bank. Such transactions mainly include loans, deposits, foreign currency transactions and guarantees. These transactions were concluded on terms that did not differ from market terms . The credit granting process applicable to the Bank’s management and entities related to the Bank According to the Banking Act, credit transactions with Members of the Bank ’s Management Board and Supervisory Board, persons holding managerial positions at the Bank, with the entities related financially or organizationally therewith, shall be effected according to Regulation adopted by the Supervisory Board of the Bank. The Regulation provide s detailed decision-making procedures, applicable to transactions with such persons and entities, also defining the decision -making levels authorized to take decisions. In particular, the transactions with the Members of the Bank ’s Management Board or Supervisory Board or with an entity related therewith financially or organizationally, are subject to decisions taken by the Bank’s Management Board and Supervisory Board. Members of the Bank’s Management Board and entities related therewith financially or organizationally may take advantage of credit products offered by the Bank on standard terms and conditions of the Bank. In particular, the Bank may not offer more advantageous credit interest rates to such persons or entities. Credit risk assessment is performed using the methodology applied by the Bank, tailored to the client’s segment and type of transaction. In case of entities related to the Bank, the standard credit procedures are applied, with transaction -related decisions taken exclusively at level of the Bank’s Head Office.
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37 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Transactions with related party Related party transactions as at 30 June 2025 NAME OF ENTITY RECEIVABLES FROM LOANS AND PLACEMENTS SECURITIES RECEIVABLES FROM REVALUATION OF DERIVATIVES OTHER RECEIVABLES LIABILITIES FROM LOANS AND DEPOSITS LIABILITIES FROM REVALUATION OF DERIVATIVES OTHER LIABILITIES PZU S.A. – the Bank‘s parent entity 1 - - 18 281 1 42 Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities 31 - - 18 705 4 - Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - - - - 21 - - Key management personnel of the Bank Pekao S.A. - - - - 2 - - Total 32 - - 36 1 009 5 42 Related party transactions as at 31 December 2024 NAME OF ENTITY RECEIVABLES FROM LOANS AND PLACEMENTS SECURITIES RECEIVABLES FROM REVALUATION OF DERIVATIVES OTHER RECEIVABLES LIABILITIES FROM LOANS AND DEPOSITS LIABILITIES FROM REVALUATION OF DERIVATIVES OTHER LIABILITIES PZU S.A. – the Bank‘s parent entity - - - 13 356 - 37 Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities 18 - 1 9 555 3 - Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - - - - 30 - 1 Key management personnel of the Bank Pekao S.A. - - - - 2 - - Total 18 - 1 22 943 3 38
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38 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Income and expenses from transactions with related parties for the period from 1 January 2025 to 30 June 2025 NAME OF ENTITY INTEREST INCOME INTEREST EXPENSE FEE AND COMMISSION INCOME FEE AND COMMISSION EXPENSE INCOME FROM DERIVATIVES AND OTHER EXPENSES FROM DERIVATIVES AND OTHER PZU S.A. – the Bank‘s parent entity (1) (11) 52 - 1 (10) Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities - (15) 46 - 1 (24) Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - - 1 - - - Key management personnel of the Bank Pekao S.A. - - - - - - Total (1) (26) 99 - 2 (34) Income and expenses from transactions with related parties for the period from 1 January 2024 to 30 June 2024 NAME OF ENTITY INTEREST INCOME INTEREST EXPENSE FEE AND COMMISSION INCOME FEE AND COMMISSION EXPENSE INCOME FROM DERIVATIVES AND OTHER EXPENSES FROM DERIVATIVES AND OTHER PZU S.A. – the Bank‘s parent entity (1) (8) 38 - 1 (4) Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities - (8) 35 - 1 (32) Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - - 1 - - - Key management personnel of the Bank Pekao S.A. - - - - - - Total (1) (16) 74 - 2 (36)
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39 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Off-balance sheet financial liabilities and guarantees as at 30 June 2025 NAME OF ENTITY GRANTED RECEIVED FINANCIAL GUARANTEES FINANCIAL GUARANTEES PZU S.A. – the Bank‘s parent entity 3 15 - 732 (*) Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities 19 10 - - Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - 2 - - Key management personnel of the Bank Pekao S.A. - - - - Total 22 27 - 732 (*) Guarantee securing the repayment of a loan granted to one of the Bank's subsidiaries. Off-balance sheet financial liabilities and guarantees as at 31 December 202 4 NAME OF ENTITY GRANTED RECEIVED FINANCIAL GUARANTEES FINANCIAL GUARANTEES PZU S.A. – the Bank‘s parent entity 3 15 - 737 (*) Entities of PZU S.A. Group excluding the Bank Pekao S.A. Group entities 17 10 - - Associates of Bank Pekao S.A Group entities Krajowy Integrator Płatności S.A. - 2 - - Key management personnel of the Bank Pekao S.A. - - - - Total 20 27 - 737 (*) Guarantee securing the repayment of a loan granted to one of the Bank's subsidiaries.
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40 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Transactions with the State Treasury and significant transactions with entities related to the State Treasury The Group's transactions with the State Treasury were mostly related to treasury securities and banking services. These transactions are concluded and settled on terms obtainable by customers who are not related parties. Significant transactions with the State Treasury and its related entities in accordance with the exception contained in IAS 24.25 are presented below ( 10 largest clients on the assets side, 10 largest clients on the liabilities side and the 10 largest clients with off-balance sheet commitments granted along with the impact of these transactions on the profit and loss account for the first half of 2025 and year 2024). Significant transactions with the State Treasury and its related entities as at 30 June 2025 NAME OF ENTITY RECEIVABLES FROM LOANS, ADVANCES AND PLACEMENTS / SECURITIES INTEREST INCOME AND FEE AND COMMISION INCOME State Treasury 70 536 1 508 Entity 1 14 484 460 Entity 2 3 782 53 Entity 3 1 383 25 Entity 4 1 364 40 Entity 5 774 30 Entity 6 545 4 Entity 7 272 10 Entity 8 238 5 Entity 9 226 9 Entity 10 198 9 Total 93 802 2 153 NAME OF ENTITY LIABILITIES FROM LOANS AND DEPOSITS INTERES EXPENSE State Treasury 124 (14) Entity 1 4 964 (93) Entity 2 4 446 (11) Entity 3 1 081 (19) Entity 4 1 044 (9) Entity 5 968 (16) Entity 6 905 (22) Entity 7 675 (11) Entity 8 548 (10) Entity 9 506 (9) Entity 10 493 (3) Total 15 754 (217) NAME OF ENTITY OFF-BALANCE SHEET COMMITMENTS GRANTED FEE AND COMMISION INCOME State Treasury 200 - Entity 1 4 461 2 Entity 2 2 542 1 Entity 3 1 500 2 Entity 4 1 003 1 Entity 5 731 2 Entity 6 500 1 Entity 7 320 - Entity 8 256 1 Entity 9 228 1 Entity 10 227 - Total 11 968 11
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41 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Significant transactions with the State Treasury and its related entities as at 31 December 2024 NAME OF ENTITY RECEIVABLES FROM LOANS, ADVANCES AND PLACEMENTS / SECURITIES INTEREST INCOME AND FEE AND COMMISION INCOME State Treasury 55 765 2 050 Entity 1 13 036 638 Entity 2 4 490 112 Entity 3 978 79 Entity 4 847 35 Entity 5 624 14 Entity 6 583 46 Entity 7 417 103 Entity 8 293 34 Entity 9 271 15 Entity 10 230 24 Total 77 534 3 150 NAME OF ENTITY LIABILITIES FROM LOANS AND DEPOSITS INTERES EXPENSE State Treasury 57 (12) Entity 1 3 299 (197) Entity 2 1 243 (66) Entity 3 1 064 (36) Entity 4 1 044 (54) Entity 5 855 (42) Entity 6 792 (4) Entity 7 715 (22) Entity 8 679 (21) Entity 9 564 (22) Entity 10 543 (53) Total 10 855 (529) NAME OF ENTITY OFF-BALANCE SHEET COMMITMENTS GRANTED FEE AND COMMISION INCOME State Treasury 200 - Entity 1 2 891 - Entity 2 2 300 - Entity 3 1 275 - Entity 4 938 - Entity 5 769 4 Entity 6 513 1 Entity 7 400 - Entity 8 370 - Entity 9 244 2 Entity 10 228 - Total 10 128 7
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42 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Remuneration expenses of the Bank’s Management Board and Supervisory Board Members VALUE OF BENEFITS I HALF 2025 I HALF 2024 Management Board of the Bank Short-term employee benefits (*) 6 6 Post-employment benefits - 1 Long-term benefits (**) 1 2 Paid termination benefits - 2 Share-based payments (***) 2 3 Total 9 14 Supervisory Board of the Bank Short-term employee benefits (*) 1 1 Total 1 1 (*) Short-term employee benefits include: base salary, bonuses and other benefits that will be paid within 12 months from the balance sheet date. (**) The item ‘Other long-term benefit’ includes: provisions for deferred bonus payments. (***) The value of share -based payments is a part of Personnel Expenses, recognized according to IFRS 2 during the reporting period in the income statement, representing the settlement of fair value of share options and shares, including phantom shares, granted to the Members of the Bank’s Management Board. The Bank’s Management Board and Supervisory Board Members did not receive any remuneration from subsidiaries and associates in the period from 1 January to 30 June 2025 and in the period from 1 January to 30 June 2024. 32. Risk management and fair value 32.1 Credit risk The general framework for the risk management, credit risk mitigation methods and rating models did not change substantially compared to those described in the in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024. Due to the risk: • related to the ongoing armed conflict in Eastern Europe and its potential consequences for the situation of businesses and consumer sentiment, • persistently high interest rates, which translates into high debt burdens for certain customer groups , • the impact on the loan portfolio of the recent economic slowdown, which was one of the strongest in 15 years, excluding the COVID-19 period, based on both macroeconomic data and economic climate surveys , The Group identifies increased credit risk, which was included in the estimation of impairment losses on credit exposures according to the principles described in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024. Changes in the methodology of calculation an expected credit losses In the first half of 202 5, the Group did not change its approach to identifying a significant deterioration in credit risk being the basis for qualifying exposures to stage 2 and the approach regarding classification to stage 3. Sensitivity analysis concerning the forecast of the macroeconomic situation The Group estimates probability weighted expected credit losses taking into account 3 macro -economic scenarios: • baseline (occurring with a probability of 60%), • upward (occurring with a probability of 5%), • downward (occurring with a probability of 35%). The changes in expected credit losses presented in the table below for exposures without impairment were designated as the difference between the expected credit losses calculated for a specific macroeconomic scenario and expected credit losses calculated taking into account all scenarios macroeconomic factors weighted with the probability of their realization (in accordance with IFRS 9).
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43 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 30.06.2025 BASELINE SCENARIO UPWARD SCENARIO DOWNWARD SCENARIO Changes in expected credit losses for exposures without impairment (Stages 1 and 2) assuming 100% implementation of the scenario (206) (865) 528 31.12.2024 BASELINE SCENARIO UPWARD SCENARIO DOWNWARD SCENARIO Changes in expected credit losses for exposures without impairment (Stages 1 and 2) assuming 100% implementation of the scenario (209) (844) 495 Sensitivity analysis of ECL in established changes of PD and RR/LGD parameters The tables below present the results of the ECL sensitivity analysis for the assumed changes in PD and RR/LGD parameters carried out separately for exposures subject to individual and group analysis. For the exposures included in the Group analysis, the PD and recovery rate (1-RR=LGD) increase and decrease by 1% and 5% scenario were presented compared to the values used to calculate the expected credit loss as of date 30 June 2025 and 31 December 202 4. For the exposures analyzed individually, the estimated impact is presented as a reduction of recoveries from collaterals included in the debt collection scenario by 10%. Changes in allowances for expected credit losses in different scenarios of changing the influencing parameters for the calculation of write-offs. 30.06.2025 DELTA PARAMETER SCENARIO GROUP ANALYSIS INDIVIDUAL ANALYSIS PD CHANGE RECOVERY RATE CHANGE (1-LGD) DEBT COLLECTION CHANGE -10.0% n/a n/a 55.9 -5.0% (72.7) 180.5 n/a -1.0% (15.7) 36.1 n/a 1.0% 15.5 (36.1) n/a 5.0% 76.1 (180.5) n/a 31.12.2024 DELTA PARAMETER SCENARIO GROUP ANALYSIS INDIVIDUAL ANALYSIS PD CHANGE RECOVERY RATE CHANGE (1-LGD) DEBT COLLECTION CHANGE -10.0% n/a n/a 56.3 -5.0% (72.6) 185.6 n/a -1.0% (14.8) 37.1 n/a 1.0% 13.9 (37.1) n/a 5.0% 76.6 (185.6) n/a
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44 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. The tables below present the level of allowances for expected credit losses and gross carrying amount of financial assets not measured at fair value through profit or loss by class of financial assets and the level of provisions for undrawn credit facilities and guarantees given and the nominal value of off-balance sheet commitments granted. 30.06.2025 STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT LOANS AND ADVANCES TO BANKS AND CENTRAL BANKS MEASURED AT AMORTISED COST (*) Gross carrying amount 14 666 - 43 - - 14 709 Allowances for expected credit losses (8) - - - - (8) Carrying amount 14 658 - 43 - - 14 701 LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST Gross carrying amount 159 551 18 388 3 897 3 858 1 071 186 765 Allowances for expected credit losses (666) (912) (1 955) (2 410) (179) (6 122) Carrying amount 158 885 17 476 1 942 1 448 892 180 643 LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (**) Gross carrying amount - 191 - - - 191 Allowances for expected credit losses - (11) - - - (11) DEBT SECURITIES MEASURED AT AMORTISED COST Gross carrying amount 107 455 375 - - 56 107 886 Allowances for expected credit losses (75) (11) - - (45) (131) Carrying amount 107 380 364 - - 11 107 755 DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (**) Gross carrying amount 15 855 11 - - - 15 866 Allowances for expected credit losses (20) - - - - (20) OFF-BALANCE SHEET COMMITMENTS Nominal amount 69 521 4 900 568 67 3 75 059 Provisions for off-balance sheet commitments and guarantees given (135) (117) (162) (21) (1) (436) (*) Applies to loans and advances to banks and the Central Bank presented in the statement of financial position in the items ‘Cash and cash equivalents’ and ‘Loans and advances to banks’. (**) Allowances for expected credit losses related to loans and advances to customers measured at fair value through other compreh ensive income and debt securities measured at fair value through other comprehensive income is included in the item ‘Revaluation reserves’ and does not reduce their carrying amount.
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45 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 31.12.2024 STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT LOANS AND ADVANCES TO BANKS AND CENTRAL BANKS MEASURED AT AMORTISED COST (*) Gross carrying amount 9 937 - 48 - - 9 985 Allowances for expected credit losses (5) - - - - (5) Carrying amount 9 932 - 48 - - 9 980 LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST Gross carrying amount 152 945 18 904 3 584 3 914 969 180 316 Allowances for expected credit losses (640) (930) (1 752) (2 413) (163) (5 898) Carrying amount 152 305 17 974 1 832 1 501 806 174 418 LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (**) Gross carrying amount 247 - - - - 247 Allowances for expected credit losses (3) - - - - (3) DEBT SECURITIES MEASURED AT AMORTISED COST Gross carrying amount 115 498 141 - - 63 115 702 Allowances for expected credit losses (71) (4) - - (43) (118) Carrying amount 115 427 137 - - 20 115 584 DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (**) Gross carrying amount 13 977 14 - - - 13 991 Allowances for expected credit losses (17) - - - - (17) OFF-BALANCE SHEET COMMITMENTS Nominal amount 67 448 4 800 666 71 9 72 994 Provisions for off-balance sheet commitments and guarantees given (120) (116) (219) (18) (4) (477) (*) Applies to loans and advances to banks and the Central Bank presented in the statement of financial position in the items ‘Cash and cash equivalents’ and ‘Loans and advances to banks’. (**) Allowances for expected credit losses related to loans and advances to customers measured at fair value through other compreh ensive income and debt securities measured at fair value through other comprehensive income is included in the item ‘Revaluation reserves’ and does not reduce their carrying amount.
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46 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. The tables below present the changes in allowances for expected credit losses and gross carrying amount of financial assets not measured at fair value through profit or loss by class of financial assets. LOANS AND ADVANCES TO BANKS AND CENTRAL BANKS MEASURED AT AMORTISED COST (*) STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 9 937 - 48 - - 9 985 Transfer to Stage 1 - - - - - - Transfer to Stage 2 - - - - - - Transfer to Stage 3 - - - - - - New / purchased / granted financial assets 7 801 - - - - 7 801 Financial assets derecognised, other than write-offs (repayments) (3 086) - (5) - - (3 091) Financial assets written off - - - - - - Other, in this changes resulting from exchange rates 14 - - - - 14 GROSS CARRYING AMOUNT AS AT 30.06.2025 14 666 - 43 - - 14 709 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 5 - - - - 5 Changes in balances included in the income statement (table in the Note 11) 3 - - - - 3 New / purchased / granted financial assets - - - - - - Financial assets derecognised, other than write-offs (repayments) - - - - - - Changes in level of credit risk (excluding the transfers between the Stages) 3 - - - - 3 Transfer to Stage 1 - - - - - - Transfer to Stage 2 - - - - - - Transfer to Stage 3 - - - - - - Financial assets written off - - - - - - Other, in this changes resulting from exchange rates - - - - - - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 8 - - - - 8 (*) Receivables from the Central Bank include a current account and deposits.
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47 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. LOANS AND ADVANCES TO BANKS AND CENTRAL BANKS MEASURED AT AMORTISED COST (*) STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 10 834 13 60 - - 10 907 Transfer to Stage 1 - - - - - - Transfer to Stage 2 - - - - - - Transfer to Stage 3 - - - - - - New / purchased / granted financial assets 1 881 - - - - 1 881 Financial assets derecognised, other than write-offs (repayments) (2 700) (13) (11) - - (2 724) Financial assets written off - - - - - - Other, in this changes resulting from exchange rates (78) - (1) - - (79) GROSS CARRYING AMOUNT AS AT 31.12.2024 9 937 - 48 - - 9 985 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 9 - - - - 9 Changes in balances included in the income statement (3) - - - - (3) New / purchased / granted financial assets - - - - - - Financial assets derecognised, other than write-offs (repayments) - - - - - - Changes in level of credit risk (excluding the transfers between the Stages) (3) - - - - (3) Transfer to Stage 1 - - - - - - Transfer to Stage 2 - - - - - - Transfer to Stage 3 - - - - - - Financial assets written off - - - - - - Other, in this changes resulting from exchange rates (1) - - - - (1) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 5 - - - - 5 (*) Receivables from the Central Bank include a current account and deposits.
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48 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. TOTAL LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 152 945 18 904 3 584 3 914 969 180 316 247 - 247 Transfer to Stage 1 4 860 (4 733) (28) (99) - - - - - Transfer to Stage 2 (6 863) 6 991 (31) (97) - - (191) 191 - Transfer to Stage 3 (509) (847) 669 687 - - - - - New / purchased / granted financial assets 37 637 - - - 334 37 971 93 - 93 Financial assets derecognised, other than write-offs (repayments) (28 351) (2 009) (301) (557) (359) (31 577) (141) - (141) Financial assets written off (*) - - (122) (267) (8) (397) - - - Modifications not resulting in derecognition (2) - - - - (2) - - - Legal risk costs for mortgage loans in CHF - 39 2 63 - 104 - - - Other, in this changes resulting from exchange rates (166) 43 124 214 135 350 (8) - (8) GROSS CARRYING AMOUNT AS AT 30.06.2025 159 551 18 388 3 897 3 858 1 071 186 765 - 191 191 ALLOWANCES FOR EXPECTED CREDIT LOSSES (**) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 640 930 1 752 2 413 163 5 898 3 - 3 Changes in balances included in the income statement (table in the Note 11) (76) 138 183 203 (54) 394 6 3 9 New / purchased / granted financial assets 157 1 - 1 32 191 5 - 5 Financial assets derecognised, other than write-offs (repayments) (44) (43) (29) (34) (26) (176) - - - Changes in level of credit risk (excluding the transfers between the Stages) (189) 180 212 236 (60) 379 1 3 4 Transfer to Stage 1 205 (195) (1) (9) - - - - - Transfer to Stage 2 (89) 126 (3) (34) - - (7) 7 - Transfer to Stage 3 (11) (100) 44 67 - - - - - Financial assets written off (*) - - (122) (267) (8) (397) - - - Other, in this changes resulting from exchange rates (3) 13 102 37 78 227 (2) 1 (1) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 666 912 1 955 2 410 179 6 122 - 11 11 (*) Including the value of contractual interest subject to partial write-off in the amount of PLN 361 million. (**) The allowances for expected credit losses for loans and advances to customers measured at fair value through other comprehens ive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. The total value of undiscounted expected credit losses at the time of initial recognition of financial assets purchased or or iginated credit impaired in the period ended 30 June 2025 amounted to PLN 118 million.
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49 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. TOTAL LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 142 000 17 437 3 611 3 820 574 167 442 82 - 82 Transfer to Stage 1 4 058 (3 948) (22) (88) - - - - - Transfer to Stage 2 (11 006) 11 202 (40) (156) - - - - - Transfer to Stage 3 (1 338) (2 094) 2 115 1 317 - - - - - New / purchased / granted financial assets 57 912 - - - 435 58 347 162 - 162 Financial assets derecognised, other than write-offs (repayments) (38 395) (3 936) (1 748) (889) (294) (45 262) - - - Financial assets written off (*) - (2) (295) (504) (36) (837) - - - Modifications not resulting in derecognition (3) - - - - (3) - - - Legal risk costs for mortgage loans in CHF (1) 365 9 (23) (2) 348 - - - Other, in this changes resulting from exchange rates (282) (120) (46) 437 292 281 3 - 3 GROSS CARRYING AMOUNT AS AT 31.12.2024 152 945 18 904 3 584 3 914 969 180 316 247 - 247 ALLOWANCES FOR EXPECTED CREDIT LOSSES (**) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 794 907 2 159 2 371 48 6 279 1 - 1 Changes in balances included in the income statement (242) 540 408 265 (45) 926 2 - 2 New / purchased / granted financial assets 385 3 11 97 7 503 2 - 2 Financial assets derecognised, other than write-offs (repayments) (94) (52) (122) (64) (20) (352) - - - Changes in level of credit risk (excluding the transfers between the Stages) (533) 589 519 232 (32) 775 - - - Transfer to Stage 1 290 (279) - (11) - - - - - Transfer to Stage 2 (141) 209 (2) (66) - - - - - Transfer to Stage 3 (77) (296) 252 121 - - - - - Financial assets written off (*) - (2) (295) (504) (36) (837) - - - Other, in this changes resulting from exchange rates 16 (149) (770) 237 196 (470) - - - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 640 930 1 752 2 413 163 5 898 3 - 3 (*) Including the value of contractual interest subject to partial write-off in the amount of PLN 596 million. (**) The allowances for expected credit losses for loans and advances to customers measured at fair value through other comprehens ive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan. The total value of undiscounted expected credit losses at the time of initial recognition of financial assets purchased or originated c redit impaired in the period ended 31 December 2024 amounted to PLN 569 million.
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50 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. CORPORATE (WITHOUT RECEIVABLES FROM FINANCE LEASES) LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 68 487 9 377 3 133 1 260 788 83 045 247 - 247 Transfer to Stage 1 2 435 (2 408) (3) (24) - - - - - Transfer to Stage 2 (4 461) 4 507 (31) (15) - - (191) 191 - Transfer to Stage 3 (207) (536) 568 175 - - - - - New / purchased / granted financial assets 24 631 - - - 307 24 938 93 - 93 Financial assets derecognised, other than write-offs (repayments) (19 159) (1 217) (206) (159) (327) (21 068) (141) - (141) Financial assets written off - - (117) (113) (7) (237) - - - Modifications not resulting in derecognition (2) - - - - (2) - - - Other, in this changes resulting from exchange rates (200) (33) 120 138 113 138 (8) - (8) GROSS CARRYING AMOUNT AS AT 30.06.2025 71 524 9 690 3 464 1 262 874 86 814 - 191 191 ALLOWANCES FOR EXPECTED CREDIT LOSSES (*) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 435 340 1 628 912 182 3 497 1 2 3 Changes in balances included in the income statement (table in the Note 11) 38 90 196 65 (35) 354 6 3 9 New / purchased / granted financial assets 117 - - - 30 147 5 - 5 Financial assets derecognised, other than write-offs (repayments) (27) (21) (18) (9) (23) (98) - - - Changes in level of credit risk (excluding the transfers between the Stages) (52) 111 214 74 (42) 305 1 3 4 Transfer to Stage 1 66 (64) - (2) - - - - - Transfer to Stage 2 (70) 77 (3) (4) - - (7) 7 - Transfer to Stage 3 (7) (47) 45 9 - - - - - Financial assets written off - - (117) (113) (7) (237) - - - Other, in this changes resulting from exchange rates - (5) 96 40 68 199 - (1) (1) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 462 391 1 845 907 208 3 813 - 11 11 (*) The allowances for expected credit losses for loans and advances to customers measured at fair value through other comprehensive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
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51 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. CORPORATE (WITHOUT RECEIVABLES FROM FINANCE LEASES) LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 63 391 8 264 2 920 1 447 489 76 511 82 - 82 Transfer to Stage 1 1 601 (1 575) (2) (24) - - - - - Transfer to Stage 2 (6 523) 6 552 (12) (17) - - - - - Transfer to Stage 3 (585) (1 647) 1 894 338 - - - - - New / purchased / granted financial assets 34 292 - - - 344 34 636 162 - 162 Financial assets derecognised, other than write-offs (repayments) (23 592) (2 180) (1 472) (377) (253) (27 874) - - - Financial assets written off - - (288) (238) (36) (562) - - - Modifications not resulting in derecognition (2) - - - - (2) - - - Other, in this changes resulting from exchange rates (95) (37) 93 131 244 336 3 - 3 GROSS CARRYING AMOUNT AS AT 31.12.2024 68 487 9 377 3 133 1 260 788 83 045 247 - 247 ALLOWANCES FOR EXPECTED CREDIT LOSSES (*) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 585 322 1 996 898 69 3 870 1 - 1 Changes in balances included in the income statement (38) 198 450 48 (25) 633 2 - 2 New / purchased / granted financial assets 222 1 1 12 6 242 2 - 2 Financial assets derecognised, other than write-offs (repayments) (61) (18) (70) (10) (16) (175) - - - Changes in level of credit risk (excluding the transfers between the Stages) (199) 215 519 46 (15) 566 - - - Transfer to Stage 1 69 (67) - (2) - - - - - Transfer to Stage 2 (119) 125 (1) (5) - - (2) 2 - Transfer to Stage 3 (56) (209) 245 20 - - - - - Financial assets written off - - (288) (238) (36) (562) - - - Other, in this changes resulting from exchange rates (6) (29) (774) 191 174 (444) - - - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 435 340 1 628 912 182 3 497 1 2 3 (*) The allowances for expected credit losses for loans and advances to customers measured at fair value through other comprehensive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
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52 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. CORPORATE – RECEIVABLES FROM FINANCE LEASES LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 10 521 256 386 740 11 903 Transfer to Stage 1 153 (60) (26) (67) - Transfer to Stage 2 (187) 201 - (14) - Transfer to Stage 3 (225) (108) 99 234 - New / purchased / granted financial assets 2 598 - - - 2 598 Financial assets derecognised, other than write- offs (repayments) (1 804) (17) (81) (97) (1 999) Financial assets written off - - - - - Modifications not resulting in derecognition - - - - - Other, in this changes resulting from exchange rates 79 (15) - (42) 22 GROSS CARRYING AMOUNT AS AT 30.06.2025 11 135 257 378 754 12 524 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 23 3 79 190 295 Changes in balances included in the income statement (table in the Note 11) (1) 2 (4) 28 25 New / purchased / granted financial assets 5 1 - 1 7 Financial assets derecognised, other than write- offs (repayments) (2) - (10) (4) (16) Changes in level of credit risk (excluding the transfers between the Stages) (4) 1 6 31 34 Transfer to Stage 1 5 (1) (1) (3) - Transfer to Stage 2 - 1 - (1) - Transfer to Stage 3 (2) (2) - 4 - Financial assets written off - - - - - Other, in this changes resulting from exchange rates (2) - (4) 6 - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 23 3 70 224 320
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53 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. CORPORATE – RECEIVABLES FROM FINANCE LEASES LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 9 991 303 641 248 11 183 Transfer to Stage 1 189 (141) (19) (29) - Transfer to Stage 2 (238) 265 (23) (4) - Transfer to Stage 3 (550) (93) 197 446 - New / purchased / granted financial assets 4 124 - - - 4 124 Financial assets derecognised, other than write- offs (repayments) (2 962) (40) (265) - (3 267) Financial assets written off - - - - - Modifications not resulting in derecognition - - - - - Other, in this changes resulting from exchange rates (33) (38) (145) 79 (137) GROSS CARRYING AMOUNT AS AT 31.12.2024 10 521 256 386 740 11 903 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 18 5 117 108 248 Changes in balances included in the income statement 3 1 (39) 82 47 New / purchased / granted financial assets 9 2 10 85 106 Financial assets derecognised, other than write- offs (repayments) (6) (1) (49) (3) (59) Changes in level of credit risk (excluding the transfers between the Stages) - - - - - Transfer to Stage 1 3 (2) - (1) - Transfer to Stage 2 (1) 1 - - - Transfer to Stage 3 (1) (2) 3 - - Financial assets written off - - - - - Other, in this changes resulting from exchange rates 1 - (2) 1 - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 23 3 79 190 295
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54 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. MORTGAGE LOANS TO INDIVIDUAL CLIENTS LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 60 989 7 626 16 829 136 69 596 Transfer to Stage 1 1 946 (1 944) - (2) - - Transfer to Stage 2 (1 455) 1 499 - (44) - - Transfer to Stage 3 (19) (98) - 117 - - New / purchased / granted financial assets 5 765 - - - 20 5 785 Financial assets derecognised, other than write-offs (repayments) (4 256) (462) (3) (92) (13) (4 826) Financial assets written off - - (4) (66) - (70) Modifications not resulting in derecognition - - - - - - Legal risk costs for mortgage loans in CHF - 33 (1) 57 - 89 Other, in this changes resulting from exchange rates (130) 81 3 59 11 24 GROSS CARRYING AMOUNT AS AT 30.06.2025 62 840 6 735 11 858 154 70 598 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 53 358 14 477 (18) 884 Changes in balances included in the income statement (table in the Note 11) (98) (2) (6) 69 (9) (46) New / purchased / granted financial assets 1 - - - 1 2 Financial assets derecognised, other than write-offs (repayments) (2) (8) - (10) (2) (22) Changes in level of credit risk (excluding the transfers between the Stages) (97) 6 (6) 79 (8) (26) Transfer to Stage 1 96 (95) - (1) - - Transfer to Stage 2 - 17 - (17) - - Transfer to Stage 3 - (15) (1) 16 - - Financial assets written off - - (4) (66) - (70) Other, in this changes resulting from exchange rates (2) 20 7 38 3 66 ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 49 283 10 516 (24) 834
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55 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. MORTGAGE LOANS TO INDIVIDUAL CLIENTS LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 57 232 7 023 17 926 47 65 245 Transfer to Stage 1 1 835 (1 812) (2) (21) - - Transfer to Stage 2 (3 273) 3 374 (1) (100) - - Transfer to Stage 3 (42) (171) 5 208 - - New / purchased / granted financial assets 12 405 - - - 78 12 483 Financial assets derecognised, other than write-offs (repayments) (7 111) (1 080) (4) (192) (14) (8 401) Financial assets written off - (1) (1) (90) - (92) Modifications not resulting in derecognition (1) - - - - (1) Legal risk costs for mortgage loans in CHF (1) 340 3 (26) (3) 313 Other, in this changes resulting from exchange rates (55) (47) (1) 124 28 49 GROSS CARRYING AMOUNT AS AT 31.12.2024 60 989 7 626 16 829 136 69 596 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 62 318 13 516 (13) 896 Changes in balances included in the income statement (150) 266 (3) 3 (14) 102 New / purchased / granted financial assets 35 - - - (2) 33 Financial assets derecognised, other than write-offs (repayments) (4) (7) (2) (30) (2) (45) Changes in level of credit risk (excluding the transfers between the Stages) (181) 273 (1) 33 (10) 114 Transfer to Stage 1 129 (126) - (3) - - Transfer to Stage 2 (1) 42 - (41) - - Transfer to Stage 3 (1) (26) 3 24 - - Financial assets written off - (1) (1) (90) - (92) Other, in this changes resulting from exchange rates 14 (115) 2 68 9 (22) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 53 358 14 477 (18) 884
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56 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. OTHER LOANS AND ADVANCE TO INDIVIDUAL CLIENTS LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 11 757 1 553 31 1 085 45 14 471 Transfer to Stage 1 326 (320) - (6) - - Transfer to Stage 2 (759) 783 - (24) - - Transfer to Stage 3 (58) (105) 2 161 - - New / purchased / granted financial assets 4 544 - - - 6 4 550 Financial assets derecognised, other than write-offs (repayments) (3 005) (306) (5) (210) (19) (3 545) Financial assets written off - - (2) (88) (1) (91) Modifications not resulting in derecognition - - - - - - Other, in this changes resulting from exchange rates 89 17 5 67 11 189 GROSS CARRYING AMOUNT AS AT 30.06.2025 12 894 1 622 31 985 42 15 574 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 128 226 29 835 (2) 1 216 Changes in balances included in the income statement (table in the Note 11) (13) 48 (3) 41 (10) 63 New / purchased / granted financial assets 35 - - - 1 36 Financial assets derecognised, other than write-offs (repayments) (13) (13) (1) (11) (1) (39) Changes in level of credit risk (excluding the transfers between the Stages) (35) 61 (2) 52 (10) 66 Transfer to Stage 1 37 (34) - (3) - - Transfer to Stage 2 (19) 31 - (12) - - Transfer to Stage 3 (3) (36) - 39 - - Financial assets written off - - (2) (88) (1) (91) Other, in this changes resulting from exchange rates 1 (1) 4 (49) 8 (37) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 131 234 28 763 (5) 1 151
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57 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. OTHER LOANS AND ADVANCE TO INDIVIDUAL CLIENTS LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 10 491 1 736 32 1 195 38 13 492 Transfer to Stage 1 432 (419) - (13) - - Transfer to Stage 2 (925) 964 (3) (36) - - Transfer to Stage 3 (161) (167) 2 326 - - New / purchased / granted financial assets 6 403 - - - 13 6 416 Financial assets derecognised, other than write-offs (repayments) (4 290) (588) (7) (320) (27) (5 232) Financial assets written off - (1) (5) (176) - (182) Modifications not resulting in derecognition - - - - - - Other, in this changes resulting from exchange rates (193) 28 12 109 21 (23) GROSS CARRYING AMOUNT AS AT 31.12.2024 11 757 1 553 31 1 085 45 14 471 ALLOWANCES FOR EXPECTED CREDIT LOSSES ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 129 255 32 849 (9) 1 256 Changes in balances included in the income statement (56) 81 (3) 132 (6) 148 New / purchased / granted financial assets 118 - - - 3 121 Financial assets derecognised, other than write-offs (repayments) (23) (26) (2) (21) (2) (74) Changes in level of credit risk (excluding the transfers between the Stages) (151) 107 (1) 153 (7) 101 Transfer to Stage 1 88 (84) - (4) - - Transfer to Stage 2 (20) 40 - (20) - - Transfer to Stage 3 (19) (58) - 77 - - Financial assets written off - (1) (5) (176) - (182) Other, in this changes resulting from exchange rates 6 (7) 5 (23) 13 (6) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 128 226 29 835 (2) 1 216
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58 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. DEBT SECURITIES MEASURED AT AMORTISED COST (*) DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (*) STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2025 115 498 141 - 63 115 702 13 977 14 13 991 Transfer to Stage 1 4 (4) - - - 1 (1) - Transfer to Stage 2 (241) 241 - - - (1) 1 - Transfer to Stage 3 - - - - - - - - New / purchased / granted financial assets 83 505 - - - 83 505 275 087 - 275 087 Financial assets derecognised, other than write-offs (repayments) (90 696) (3) - (6) (90 705) (273 483) (3) (273 486) Financial assets written off - - - - - - - - Modifications not resulting in derecognition - - - - - - - - Other, in this changes resulting from exchange rates (615) - - (1) (616) 274 - 274 GROSS CARRYING AMOUNT AS AT 30.06.2025 107 455 375 - 56 107 886 15 855 11 15 866 ALLOWANCES FOR EXPECTED CREDIT LOSSES (**) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2025 71 4 - 43 118 17 - 17 Changes in balances included in the income statement (table in the Note 11) 11 - - - 11 3 - 3 New / purchased / granted financial assets 11 - - - 11 5 - 5 Financial assets derecognised, other than write-offs (repayments) (6) - - - (6) - - - Changes in level of credit risk (excluding the transfers between the Stages) 6 - - - 6 (2) - (2) Transfer to Stage 1 - - - - - - - - Transfer to Stage 2 (7) 7 - - - - - - Transfer to Stage 3 - - - - - - - - Financial assets written off - - - - - - - - Other, in this changes resulting from exchange rates - - - 2 2 - - - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 30.06.2025 75 11 - 45 131 20 - 20 (*) Debt securities presented in the statement of financial position under ‘Securities’ and ‘Assets pledged as security for liabilities’. (**) The allowances for expected credit losses for debt securities measured at fair value through other comprehensive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the securities.
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59 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. DEBT SECURITIES MEASURED AT AMORTISED COST (*) DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (*) STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) TOTAL INDIVIDUAL ASSESSMENT GROSS CARRYING AMOUNT GROSS CARRYING AMOUNT AS AT 1.01.2024 93 138 83 - 53 93 274 16 051 38 16 089 Transfer to Stage 1 20 (20) - - - 31 (31) - Transfer to Stage 2 (100) 100 - - - (9) 9 - Transfer to Stage 3 - - - - - - - - New / purchased / granted financial assets 349 163 - - - 349 163 1 056 605 - 1 056 605 Financial assets derecognised, other than write-offs (repayments) (328 224) (19) - - (328 243) (1 059 261) (2) (1 059 263) Financial assets written off - - - - - - - - Modifications not resulting in derecognition - - - - - - - - Other, in this changes resulting from exchange rates 1 501 (3) - 10 1 508 560 - 560 GROSS CARRYING AMOUNT AS AT 31.12.2024 115 498 141 - 63 115 702 13 977 14 13 991 ALLOWANCES FOR EXPECTED CREDIT LOSSES (**) ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 1.01.2024 83 3 - 28 114 26 1 27 Changes in balances included in the income statement (9) (1) - - (10) (9) (1) (10) New / purchased / granted financial assets 19 - - - 19 3 - 3 Financial assets derecognised, other than write-offs (repayments) (9) - - - (9) (4) - (4) Changes in level of credit risk (excluding the transfers between the Stages) (19) (1) - - (20) (8) (1) (9) Transfer to Stage 1 - - - - - - - - Transfer to Stage 2 (3) 3 - - - - - - Transfer to Stage 3 - - - - - - - - Financial assets written off - - - - - - - - Other, in this changes resulting from exchange rates - (1) - 15 14 - - - ALLOWANCES FOR EXPECTED CREDIT LOSSES AS AT 31.12.2024 71 4 - 43 118 17 - 17 (*) Debt securities presented in the statement of financial position under ‘Securities’ and ‘Assets pledged as security for liabilities’. (**) The allowances for expected credit losses for debt securities measured at fair value through other comprehensive income is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the securities.
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60 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. The tables below present changes in provision for off – balance sheet commitments and guarantees given and nominal value of off-balance sheet commitments granted. OFF-BALANCE SHEET COMMITMENTS GRANTED STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT NOMINAL VALUE NOMINAL VALUE AS AT 1.01.2025 67 448 4 800 666 71 9 72 994 Transfer to Stage 1 1 995 (1 986) - (9) - - Transfer to Stage 2 (3 104) 3 105 - (1) - - Transfer to Stage 3 (76) (50) 101 25 - - New / acquired off-balance sheet commitments 13 591 - - - - 13 591 Extinguished off-balance sheet commitments (4 954) (879) (109) (4) (5) (5 951) Changes in the level of available off-balance sheet commitments (5 122) (83) (89) (15) (1) (5 310) Other, in this changes resulting from exchange rates (257) (7) (1) - - (265) NOMINAL VALUE AS AT 30.06.2025 69 521 4 900 568 67 3 75 059 PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN AS AT 1.01.2025 120 116 219 18 4 477 Changes in balances included in the income statement (table in the Note 11) 20 21 (77) 1 (2) (37) New / acquired off-balance sheet commitments 77 - - - - 77 Extinguished off-balance sheet commitments (5) (16) (51) (2) (2) (76) Changes in level of credit risk (excluding the transfers between the Stages) (52) 37 (26) 3 - (38) Transfer to Stage 1 35 (34) - (1) - - Transfer to Stage 2 (19) 19 - - - - Transfer to Stage 3 (20) (5) 22 3 - - Other, in this changes resulting from exchange rates (1) - (2) - (1) (4) PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN AS AT 30.06.2025 135 117 162 21 1 436
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61 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 32.2 Legal risk regarding foreign currency mortgage loans in CHF Adopted accounting principles and court proceedings related to foreign currency mortgage loans in CHF The accounting principles have not changed compared to 3 1 December 2024, and are described in Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024. Until 30 June 2025, 9.8 thousand individual court cases were pending against the Group regarding foreign currency mortgage loans in CHF, which were granted in previous years, with the total value of the claim in the amount of PLN 3 436 million (as at 31 December 2024, the number of cases was 8.8 thousand, and the corresponding value of the dispute is PLN 3 111 million). The main cause of the dispute, as indicated by the plaintiffs, concerns the questioning of the provisions of the loan agreement with regard to the Bank's application of conversion rates based on the Group's exchange rate Table and results in claims regarding the partial or complete invalidity of the loan agreements. During the 6-month period ended on 3 0 June 2025, the Group received 1 584 unfavorable court judgments in cases brought by borrowers, including 211 final judgments and 26 favorable court judgments, including 1 of a legally binding nature (in 2024: 2 419 unfavorable court judgments, including 480 final judgments stating the invalidity of the loan agreement and 45 favorable court judgments, including 4 of a legally binding nature). Court settlement program In April 2025, the Bank expanded the out -of-court settlements program ‘2% safe settlement’ by introducing new settlement options. The program applies to borrowers who as at 31 March 2023 had an active mortgage loan agreement denominated in CHF or those in legal dispute with the Bank. As part of the settlement, a new debt balance is determined, expressed in PLN and calculated as the loan amount paid by the Bank reduced by all repayments made by the borrower until the settlement is concluded. Under the current program, the resulting amount was increased by contractual interest accrued at a fixed rate of 2% per annum. The new options are more favorable for the borrower, in particular by accruing contractual interest at a lower rate. If the new debt balance turns out to be negative (i.e. there is an overpayment), the Bank refunds the overpaid amount to the borrower. Any remaining debt balance after the settlement is concluded bears interest at a fixed rate of 2% per annum for the first 60 months, and thereafter in accordance with the Bank's current offer. OFF-BALANCE SHEET COMMITMENTS GRANTED STAGE 1 (12M ECL) STAGE 2 (LIFETIME ECL - NOT CREDIT- IMPAIRED) STAGE 3 (LIFETIME ECL - CREDIT-IMPAIRED) PURCHASED OR ORIGINATED CREDIT- IMPAIRED (POCI) TOTAL INDIVIDUAL ASSESSMENT GROUP ASSESSMENT NOMINAL VALUE NOMINAL VALUE AS AT 1.01.2024 61 130 4 156 477 73 18 65 854 Transfer to Stage 1 1 373 (1 333) (23) (17) - - Transfer to Stage 2 (3 365) 3 368 (1) (2) - - Transfer to Stage 3 (143) (226) 335 34 - - New / acquired off-balance sheet commitments 23 914 - - - 1 23 915 Extinguished off-balance sheet commitments (14 065) (1 018) (117) (9) (9) (15 218) Changes in the level of available off-balance sheet commitments (1 175) (145) (5) (9) (1) (1 335) Other, in this changes resulting from exchange rates (221) (2) - 1 - (222) NOMINAL VALUE AS AT 31.12.2024 67 448 4 800 666 71 9 72 994 PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN AS AT 1.01.2024 177 88 211 24 4 504 Changes in balances included in the income statement 12 63 (98) 1 - (22) New / acquired off-balance sheet commitments 130 - - - - 130 Extinguished off-balance sheet commitments (35) (23) (60) (3) - (121) Changes in level of credit risk (excluding the transfers between the Stages) (83) 86 (38) 4 - (31) Transfer to Stage 1 16 (14) - (2) - - Transfer to Stage 2 (36) 37 - (1) - - Transfer to Stage 3 (55) (55) 106 4 - - Other, in this changes resulting from exchange rates 6 (3) - (8) - (5) PROVISIONS FOR OFF-BALANCE SHEET COMMITMENTS AND GUARANTEES GIVEN AS AT 31.12.2024 120 116 219 18 4 477
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62 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Until 30 June 2025, the Bank sent approximately 7 thousand offers under the new edition of the program. The Bank analyzes the response from clients and appropriately reflect its impact when calculating the legal risk provisions. Legal risk related to foreign currency mortgage loans in CHF - assumptions and calculation methodology The calculation of the provision performed by the Group as at 30 June 2025 was based on estimating the expected loss of the Group resulting from the possible materialization of the legal risk of mortgage loans in CHF . The estimate carried out by the Group includes the following key elements: 1) forecast of disputes The entire forecast of future lawsuits concerns loans denominated, active or fully repaid within the last 10 years. The Group estimates that in total, i.e. taking into account lawsuits that have been and will be filed by borrowers against the Group, approximately 60% (compared to approximately 55% at the end of 2024) of the total amount of such loans granted, amounting to CHF 1.5 billion, may be subject to dispute (including approximately 85% for active contracts - unchanged compared to the end of 2024 and approximately 45% for repaid contracts compared to approximately 30% at the end of 2024), and the phenomenon of the inflow of lawsuits may remain significant until the end of 2028. 2) the likelihood of losing a court case According to the opinion of an external law firm, for the denominated loans acquired by the Bank as a result of the acquisition (demerger) of Bank BPH, the Bank estimates the probability that the contractual provisions will be considered abusive at a minimum of 99% (no changes compared to the end of 2024). 3) financial implications of court disputes The Group assumes that if the court finds the contractual provisions abusive, the resolution of the court dispute will be the invalidation of the loan agreement. Moreover, additional costs related to the resolution of litigation are recognized and are calculated for the entire portfolio covered by the provision calculation: statutory interest for delay and costs of legal representation. 4) inclusion of a settlement program If a settlement is reached, the Bank no longer expects a lawsuit under a given contract, what is included in the forecast of future lawsuits. Otherwise, the probability and distribution of resolutions of the court dispute are the same as described in point 1)-3). The level of the provision set by the Group requires each time the Group adopts many expert assumptions based on professional judgement. Subsequent rulings and possible sectoral solutions that will appear on the Polish market with regard to foreign currency mortgage loans in CHF may affect the amount of the provision determined by the Group and cause the necessity to change individual assumptions adopted in the calculations. In connection with the above -mentioned uncertainty, it is possible that the amount of the provision will change in the future. Legal risk related to foreign currency mortgage loans in CHF – results and allocation As at 3 0 June 2025 the level of accumulated costs of legal risk regarding mortgage loans in CHF estimated by the Group amounted to PLN 2 678 million and increased by PLN 177 million compared to the level as at 31 December 2024. The main reason for the change in the level of accumulated costs was the update of the forecast for future inflows of court lawsuits.
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63 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. A summary of the recognition of the provision for legal risk related to foreign currency mortgage loans in CHF in the statement of financial position and income statement is presented in the tables below. 30.06.2025 GROSS CARRYING AMOUNT OF MORTGAGE LOANS IN CHF NET OF THE COST OF LEGAL RISK ACCUMULATED COSTS OF LEGAL RISK REGARDING MORTGAGE LOANS IN CHF GROSS CARRYING AMOUNT OF MORTGAGE LOANS IN CHF INCLUDING THE COST OF LEGAL RISK Loans and advances to customers (adjustment reducing the carrying amount of mortgage loans in CHF) 1 335 1 088 247 Provisions 1 590 Total 2 678 31.12.2024 GROSS CARRYING AMOUNT OF MORTGAGE LOANS IN CHF NET OF THE COST OF LEGAL RISK ACCUMULATED COSTS OF LEGAL RISK REGARDING MORTGAGE LOANS IN CHF GROSS CARRYING AMOUNT OF MORTGAGE LOANS IN CHF INCLUDING THE COST OF LEGAL RISK Loans and advances to customers (adjustment reducing the carrying amount of mortgage loans in CHF) 1 470 1 193 277 Provisions 1 308 Total 2 501 Changes in the accumulated costs of legal risk regarding mortgage loans in CHF during the period present the tables below. I HALF 2025 LOANS AND ADVANCES TO CUSTOMERS (ADJUSTMENT REDUCING THE CARRYING AMOUNT OF MORTGAGE LOANS IN CHF) PROVISIONS TOTAL Opening balance 1 193 1 308 2 501 Revaluation (19) 377 358 Utilization (settlement of lawsuits and concluded settlements) (85) (95) (180) Foreign currency exchange differences (1) - (1) Closing balance 1 088 1 590 2 678 2024 LOANS AND ADVANCES TO CUSTOMERS (ADJUSTMENT REDUCING THE CARRYING AMOUNT OF MORTGAGE LOANS IN CHF) PROVISIONS TOTAL Opening balance 1 734 891 2 625 Revaluation 6 663 669 Utilization (settlement of lawsuits and concluded settlements) (485) (247) (732) Foreign currency exchange differences (62) 1 (61) Closing balance 1 193 1 308 2 501 Sensitive analysis The Group performed a sensitivity analysis in relation to significant assumptions taken into account in estimating the legal risk of the CHF foreign currency loan portfolio, where a change in the level of individual parameters would have the following impact on the level of accumulated costs related to this risk. Impact on the provision level in the event of changes to the assumptions (with other elements of the calculation unchanged) PARAMETR SCENARIO IMPACT ON THE PROVISION LEVEL AS AT 30.06.2025 IMPACT ON THE PROVISION LEVEL AS AT 31.12.2024 Forecast of the volume of lawsuits on the active portfolio +1 p.p. 22 24 -1 p.p. (22) (24) Forecast of the volume of lawsuits on the repaid portfolio +1 p.p. 19 17 -1 p.p. (19) (17) Average length of a dispute +1 month 7 7 -1 month (8) (5)
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64 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 32.3 Market risk Market risk of the trading book The model of market risk measurement has not changed in relation to the one described in the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024. The tables below present the market risk exposure of the trading portfolio of the Group measured by Value at Risk. 30.06.2025 I HALF 2025 MINIMUM VALUE AVERAGE VALUE MAXIMUM VALUE foreign exchange risk 0.1 0.01 0.1 1.2 interest rate risk 6.0 2.4 5.2 7.6 Trading portfolio 7.2 3.1 5.8 8.8 31.12.2024 2024 MINIMUM VALUE AVERAGE VALUE MAXIMUM VALUE foreign exchange risk 0.2 0.01 0.1 1.8 interest rate risk 3.4 1.0 3.6 6.2 Trading portfolio 3.4 1.7 4.3 7.2 Interest rate risk of the banking book The banking book interest rate risk management process has not changed significantly in relation to the one described in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 202 4. The internally used sensitivity measures of net interest income (NII) have been modified – now the change in NII in the scenarios is referred to Tier 1 capital. The measure takes also into account the change in the valuation of balance sheet elements recognised in the income statement through the profit and loss account or directly in equity. The table below presents the NII sensitivity levels to the interest rate change by 100 b.p. and of economic value of the Bank’s equity (EVE) to the interest rate change by 200 b.p. (standard regulatory shock including the risk profile of own funds) as at 30 June 2025 and as at 31 December 2024. IRRBB MEASURES 30.06.2025 31.12.2024 NII Sensitivity (percent of Tier 1 capital) (0.52) (0.36) EVE Sensitivity (percent of own funds) (3.48) (4.77) Currency risk The foreign currency exchange risk management process has not changed significantly in relation to the one described in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024. The tables below present the Group’s foreign currency risk profile measured by Value at Risk and currency position. Value at Risk CURRENCY 30.06.2025 31.12.2024 Currencies total (*) 1 2 (*) VaR presented under ‘Currencies total’ is the Group's total exposure to currency risk. The value of the VaR measure is determined using the same method as for market risk in the trading book, i.e. the historical simulation method based on a 2 -year history of observation of the dynamics of market risk factors, with a 99% confidence level, whi ch reflects the level of a one -day loss that may be exceeded with a probability of no more than 1%. By default, the historical simulation method takes into account correlation relationships between currencies
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65 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. Currency position 30.06.2025 BALANCE SHEET OPERATIONS OFF-BALANCE SHEET OPERATIONS - DERIVATIVES NET POSITION ASSETS LIABILITIES LONG POSITION SHORT POSITION EUR 47 294 45 412 18 018 19 976 (76) USD 9 987 12 750 8 474 5 740 (29) CHF 263 1 075 1 244 469 (37) Other currencies 1 472 1 887 1 039 618 6 TOTAL 59 016 61 124 28 775 26 803 (136) 31.12.2024 BALANCE SHEET OPERATIONS OFF-BALANCE SHEET OPERATIONS - DERIVATIVES NET POSITION ASSETS LIABILITIES LONG POSITION SHORT POSITION EUR 47 902 42 733 12 148 17 302 15 USD 11 762 13 002 6 356 5 113 3 CHF 364 1 126 1 123 516 (155) Other currencies 1 312 1 958 1 751 1 106 (1) TOTAL 61 340 58 819 21 378 24 037 (138) 32.4 Liquidity risk The liquidity risk management process has not changed significantly in relation to that described in the Consolidated Financial Statements of the Bank Pekao S.A Group for the year ended on 31 December 2024. The liquidity situation of the Bank remains fully safe and stable with liquidity ratios remain at a high and safe level. Regulatory liquidity long-term norms and LCR and NSFR (*) SUPERVISORY LIQUIDTY NORMS LIMIT 30.06.2025 31.12.2024 LCR Liquidity coverage ratio 100% 232% 239% NSFR Net stable funding ratio 100% 172% 175% (*) The values of regulatory liquidity ratios have been determined in accordance with the principles set out by the Commission De legated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation No. 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions. The tables below present adjusted liquidity gap: 30.06.2025 UP TO 1 MONTH BETWEEN 1 AND 3 MONTHS BETWEEN 3 MONTHS AND 1 YEAR BETWEEN 1 AND 5 YEARS OVER 5 YEARS TOTAL Balance sheet assets 115 470 10 330 37 653 97 659 78 522 339 634 Balance sheet liabilities 22 524 13 694 40 214 41 847 190 195 308 474 Off-balance sheet assets/liabilities (net) (5 915) (3 542) 1 391 4 314 3 751 (1) Periodic gap 87 031 (6 906) (1 170) 60 126 (107 922) 31 159 Cumulated gap 80 125 78 955 139 081 31 159 31.12.2024 UP TO 1 MONTH BETWEEN 1 AND 3 MONTHS BETWEEN 3 MONTHS AND 1 YEAR BETWEEN 1 AND 5 YEARS OVER 5 YEARS TOTAL Balance sheet assets 119 432 9 131 36 918 92 828 75 933 334 242 Balance sheet liabilities 27 713 20 428 46 101 55 269 152 817 302 328 Off-balance sheet assets/liabilities (net) (5 212) (4 081) 701 4 769 3 743 (80) Periodic gap 86 507 (15 378) (8 482) 42 328 (73 141) 31 834 Cumulated gap 71 129 62 647 104 975 31 834 32.5 Operational risk There have been no significant changes in t he operational risk management process in relation to the one described in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024.
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66 Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 32.6 Fair value of financial assets and liabilities Financial instruments that are measured at fair value in the consolidated statement of financial position of the Group The process of measuring financial instruments at fair value has not changed significantly in relation to the one described i n the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024. Assets and liabilities measured at fair value in breakdown by fair value hierarchy levels 30.06.2025 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Assets: 9 964 8 014 6 577 24 555 Securities held for trading 1 963 160 150 2 273 Derivative financial instruments - 4 199 10 4 209 Banks - 1 570 - 1 570 Customers - 2 629 10 2 639 Hedging instruments - 909 - 909 Banks - 299 - 299 Customers - 610 - 610 Debt securities measured at fair value through other comprehensive income 7 061 2 746 5 154 14 961 Equity instruments designated for measurement at fair value through other comprehensive income 8 - 413 421 Equity instruments mandatorily measured at fair value through profit or loss - - 269 269 Assets pledged as security for liabilities 932 - - 932 Loans and advances to customers measured at fair value through other comprehensive income - - 191 191 Loans and advances to customers measured at fair value through profit or loss - - 390 390 Liabilities: 1 043 4 991 - 6 034 Financial liabilities held for trading 1 043 7 - 1 050 Derivative financial instruments - 4 291 - 4 291 Banks - 1 696 - 1 696 Customers - 2 595 - 2 595 Hedging instruments - 693 - 693 Banks - 56 - 56 Customers - 637 - 637 31.12.2024 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Assets: 8 700 7 557 5 026 21 283 Securities held for trading 912 102 58 1 072 Derivative financial instruments - 4 221 1 4 222 Banks - 1 490 - 1 490 Customers - 2 731 1 2 732 Hedging instruments - 448 - 448 Banks - 111 - 111 Customers - 337 - 337 Debt securities measured at fair value through other comprehensive income 6 439 2 786 3 766 12 991 Equity instruments designated for measurement at fair value through other comprehensive income 4 - 322 326 Equity instruments mandatorily measured at fair value through profit or loss - - 272 272 Assets pledged as security for liabilities 1 345 - - 1 345 Loans and advances to customers measured at fair value through other comprehensive income - - 247 247 Loans and advances to customers measured at fair value through profit or loss - - 360 360 Liabilities: 1 399 5 339 - 6 738 Financial liabilities held for trading 1 399 - - 1 399 Derivative financial instruments - 4 266 - 4 266 Banks - 1 622 - 1 622 Customers - 2 644 - 2 644 Hedging instruments - 1 073 - 1 073 Banks - 44 - 44 Customers - 1 029 - 1 029
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67 Bank Pekao S.A. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Change in fair value of financial assets measured at fair value according to Level 3 by the Group I HALF 2025 SECURITIES HELD FOR TRADING DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS EQUITY INSTRUMENTS MANDATORILY MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME EQUITY INSTRUMENTS DESIGNATED FOR MEASUREMENT AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES) Opening balance 58 1 247 360 272 3 766 322 - Increases 2 876 10 33 75 - 2 227 91 - Reclassification from other levels 39 9 - - - 765 - - Transactions made in 2025 - - - - - - - - Granting 1 588 - 33 75 - 1 220 - - Purchase 1 249 - - - - 219 - - Gains on financial instruments - 1 - - - 23 91 - recognized in the income statement - 1 - - - 23 - - recognized in revaluation reserves - - - - - - 91 - Decreases (2 784) (1) (89) (45) (3) (839) - - Reclassification to other levels (54) - - - - (430) - - Settlement/Redemption - (1) (83) (18) - (18) - - Sale (2 730) - - - - (375) - - Losses on financial instruments - - (6) (27) (3) (16) - - recognized in the income statement - - - (27) (3) - - - recognized in revaluation reserves - - (6) - - (16) - - Closing balance 150 10 191 390 269 5 154 413 - Unrealized income from financial instruments held in portfolio at the end of the period, recognized in: - 1 (16) (27) - 49 - - Income statement: - 1 (9) (27) - (2) - - net interest income - - - 1 - - - - net allowances for expected credit losses - - (9) - - (2) - - result on financial assets and liabilities held for trading - 1 - (28) - - - - Other comprehensive income - - (7) - - 51 - -
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68 Bank Pekao S.A. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Change in fair value of financial assets measured at fair value according to Level 3 by the Group 2024 SECURITIES HELD FOR TRADING DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS EQUITY INSTRUMENTS MANDATORILY MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS DEBT SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME EQUITY INSTRUMENTS DESIGNATED FOR MEASUREMENT AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES) Opening balance 110 3 82 249 210 4 597 380 - Increases 1 220 3 200 146 62 1 935 - 1 Reclassification from other levels 54 - - - - 171 - - Transactions made in 2024 - - 185 127 - - - - Granting 340 - - - - 1 047 - - Purchase 824 - - - - 483 - - Gains on financial instruments 2 3 15 19 62 234 - 1 recognized in the income statement 2 3 11 19 62 94 - 1 recognized in revaluation reserves - - 4 - - 140 - - Decreases (1 272) (5) (35) (35) - (2 766) (58) (1) Reclassification to other levels (21) - - - - (982) - (1) Settlement/Redemption - (5) (35) (35) - (11) - - Sale (1 251) - - - - (1 772) - - Losses on financial instruments - - - - - (1) (58) - recognized in the income statement - - - - - (1) - - recognized in revaluation reserves - - - - - - (58) - Closing balance 58 1 247 360 272 3 766 322 - Unrealized income from financial instruments held in portfolio at the end of the period, recognized in: - - 3 19 - 91 - - Income statement: - - (1) 19 - 45 - - net interest income - - 1 2 - 42 - - net allowances for expected credit losses - - (2) - - 3 - - result on financial assets and liabilities held for trading - - - 17 - - - - Other comprehensive income - - 4 - - 46 - -
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69 Bank Pekao S.A. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Transfers of instruments between fair value hierarchy levels are based on changes in availability of active market quotations at the end of the reporting periods. In the period from 1 January to 30 June 2025 the following transfers of financial instruments between the levels of the fair value hierarchy were made: • from Level 3 to Level 2: corporate bonds which were valued based on information on the prices of comparable financial instruments, corporate and municipal bonds and commodity derivative instruments with immaterial impact of the estimated credit parameters on the valuation, • from Level 2 to Level 3: corporate, municipal and sovereign bonds and foreign exchange derivative instruments for which impact of estimated credit parameters was material. Sensitivity analysis The impact of estimated parameters on measurement of financial instruments for which the Group applies fair value valuation according to Level 3 as at 30 June 2025 and as at 31 December 2024 is as follows: FINANCIAL ASSETS FAIR VALUE AS AT 30.06.2025 VALUATION TECHNIQUE UNOBSERVABLE FACTOR RANGE OF FACTOR CHANGES IMPACT ON FAIR VALUE AS AT 30.06.2025 POSITIVE SCENARIO NEGATIVE SCENARIO Corporate,municipal and sovereign debt securities 5 303 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 52 (66) Foreign exchange derivatives 10 Discounted cash flow Probability of default +20% / -20% 5 - Loans and advances measured at fair value through profit or loss 390 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 19 (18) Loans and advances measured at fair value through other comprehensive income 191 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 1 (1) EQUITY FINANCIAL ASSETS FAIR VALUE AS AT 30.06.2025 PARAMETER RANGE OF FACTOR CHANGES IMPACT ON FAIR VALUE AS AT 30.06.2025 POSITIVE SCENARIO NEGATIVE SCENARIO Equity instruments mandatorily measured at fair value through profit or loss 269 Conversion discount +10% / -10% 4 (4) Equity instrument in entity providing credit information designated for measurement at fair value through other comprehensive income 332 Discount rate +1% / -1% 46 (36) FINANCIAL ASSETS FAIR VALUE AS AT 31.12.2024 VALUATION TECHNIQUE UNOBSERVABLE FACTOR RANGE OF FACTOR CHANGES IMPACT ON FAIR VALUE AS AT 31.12.2024 POSITIVE SCENARIO NEGATIVE SCENARIO Corporate and municipal debt securities 3 824 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 56 (63) Commodity derivatives 1 Discounted cash flow Probability of default +20% / -20% - - Loans and advances measured at fair value through profit or loss 360 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 17 (16) Loans and advances measured at fair value through other comprehensive income 247 Discounted cash flow Credit spread +50 p.b. / -50 p.b. 2 (2) EQUITY FINANCIAL ASSETS FAIR VALUE AS AT 31.12.2024 PARAMETER RANGE OF FACTOR CHANGES IMPACT ON FAIR VALUE AS AT 31.12.2024 POSITIVE SCENARIO NEGATIVE SCENARIO Equity instruments mandatorily measured at fair value through profit or loss 272 Conversion discount +10% / -10% 4 (28) Equity instrument in entity providing credit information designated for measurement at fair value through other comprehensive income 263 Discount rate +1% / -1% 31 (25)
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70 Bank Pekao S.A. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Financial instruments that are not measured at fair value in the separate statement of financial position of the Group The process of valuation of financial instruments that are not presented at fair value in the financial statements has not changed significantly in relation to the one described in the Consolidated Financial Statements of the Bank Pekao S.A. Group for the year ended on 31 December 2024. Assets and liabilities not measured at fair value in the financial statement in breakdown by fair value hierarchy levels 30.06.2025 CARRYING AMOUNT FAIR VALUE OF WHICH: LEVEL 1 LEVEL 2 LEVEL 3 Assets Cash and cash equivalents 17 932 17 879 3 840 14 021 18 Loans and advance to banks 609 606 - 226 380 Loans and advances to customers measured at amortised cost 180 643 179 386 - 5 234 174 152 Corporate (without receivables from finance leases) 84 252 84 780 - 5 167 79 613 Corporate receivables from finance leases 12 204 12 171 - - 12 171 Mortgage loans to individual clients 69 764 67 585 - - 67 585 Other loans and advance to individual clients 14 423 14 850 - 67 14 783 Debt securities measured at amortised cost 107 755 107 701 60 692 36 523 10 486 Assets pledged as security for liabilities - - - - - Total Assets 306 939 305 572 64 532 56 004 185 036 Liabilities Amounts due to other banks 7 562 7 566 - 1 156 6 410 Amounts due to customers 266 056 265 963 - 1 394 264 569 Debt securities issued 16 100 16 152 - 16 152 - Subordinated liabilities 3 543 3 544 - 3 544 - Total Liabilities 293 261 293 225 - 22 246 270 979 31.12.2024 CARRYING AMOUNT FAIR VALUE OF WHICH: LEVEL 1 LEVEL 2 LEVEL 3 Assets Cash and cash equivalents 14 269 14 221 4 461 9 744 16 Loans and advance to banks 172 172 - 5 167 Loans and advances to customers measured at amortised cost 174 418 175 222 - 5 152 170 070 Corporate (without receivables from finance leases) 80 843 81 517 - 5 114 76 403 Corporate receivables from finance leases 11 608 11 598 - - 11 598 Mortgage loans to individual clients 68 712 68 148 - - 68 148 Other loans and advance to individual clients 13 255 13 959 - 38 13 921 Debt securities measured at amortised cost 115 584 114 318 55 411 49 965 8 942 Assets pledged as security for liabilities - - - - - Total Assets 304 443 303 933 59 872 64 866 179 195 Liabilities Amounts due to other banks 7 344 7 287 - 1 732 5 555 Amounts due to customers 260 742 260 664 - 1 204 259 460 Debt securities issued 16 167 16 222 - 16 222 - Subordinated liabilities 2 782 2 781 - 2 781 - Total Liabilities 287 035 286 954 - 21 939 265 015
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71 Bank Pekao S.A. Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) 33. Additional information to the cash flow statement Changes in liabilities arising from financing activities BALANCE AS AT 1.01.2025 CHANGES FROM FINANCING CASH FLOWS CHANGES FROM NON- CASH CHANGES (a.o. ACCRUED INTEREST, DISCOUNT, FOREIGN EXCHANGE DIFFERENCES) BALANCE AS AT 30.06.2025 INCURRED REPAYMENT Debt securities issued 16 167 15 768 (15 654) (181) 16 100 Subordinated liabilities (*) 2 782 750 - 11 3 543 Loans and advances received 5 382 - (360) (53) 4 969 Lease liabilities 707 - (40) 34 701 Total 25 038 16 518 (16 054) (189) 25 313 (*) On 4 April 2025, the Bank issued 10 years subordinated bonds with a total nominal value of PLN 0.75 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 23 April 2025 – to increase the Bank's supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Cou ncil of 26 June 2013 on prudential requirements for credit institutions and amending Regulation No. 648/2012. The bonds were introduced to trading on the ASO Catalyst market. BALANCE AS AT 1.01.2024 CHANGES FROM FINANCING CASH FLOWS CHANGES FROM NON- CASH CHANGES (a.o. ACCRUED INTEREST, DISCOUNT, FOREIGN EXCHANGE DIFFERENCES) BALANCE AS AT 30.06.2024 INCURRED REPAYMENT Debt securities issued 9 958 12 674 (9 320) (14) 13 298 Subordinated liabilities 2 781 - - 1 2 782 Loans and advances received 5 265 - (446) (102) 4 717 Lease liabilities 579 - (32) 145 692 Total 18 583 12 674 (9 798) 30 21 489 34. Subsequent events Significant events after the balance sheet date are presented in Note 9.9 ‘Events after the balance sheet date’ of the Report on the activities of Bank Pekao S.A. Group for I half of 2025.
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I Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2025 (in PLN million) Bank Pekao S.A. 06.08.2025 Cezary Stypułkowski President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature 06.08.2025 Marcin Gadomski Vice President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature 06.08.2025 Robert Sochacki Vice President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature 06.08.2025 Błażej Szczecki Vice President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature 06.08.2025 Dagmara Wojnar Vice President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature 06.08.2025 Marcin Zygmanowski Vice President of the Bank’s Management Board The original Polish document is signed with a qualified electronic signature Date Name/Surname Position/Function Signature