November 2016

Financial Results ofthe PKO Bank Polski Groupfor 3Q 2016

PKO Bank Polski – Strategic Partner of PFR in Supporting Polish ExportPKO Bank Polski will cooperate with Polski Fundusz Rozwoju as a strategic partner to support Polish export. Polish entrepreneurs willhave the possibility of using financial products and counselling made available by the PFR as part of the International ExpansionProgramme of Polish Companies via the Bank.

New Investment Programme for the Bank’s Clients: AutolokacjaThe Bank has introduced a market novelty to its offer: Autolokacja Investment Programme, addressed to clients looking for innovative,yet simple solutions for their savings. Autolokacja is a product where the client receives a 12-month deposit with an automatic(systematic) transfer of funds from the deposit to a selected investment sub-fund (investments starting from the amount of PLN 10,000).

PKO Bank Polski Plans to Open a Corporate Branch in Czech RepublicOpening the Bank’s corporate branch in Czech Republic is an element of the international expansion strategy that assumes following theclients. Czech Republic belongs to the most important economic partners of Poland and occupies the 5th position with respect to tradeturnover (after Germany, Russia, China and Italy) and is the second largest recipient of Polish goods. The export of Polish companies toCzech Republic grows steadily (the value of export in 2015 amounted to EUR 11.8 billion and was 10% higher than in 2014).

PKO Bank Polski: One of the Safest Banks in the EUThe wide stress test conducted by the European Banking Authority has shown that PKO Bank Polski is in the group of safest banks inthe EU. The high level of safety results from a strong capital base, relying mainly on accumulated profits and beneficial impact of theBank’s business model, as well as domination, in the balance sheet structure, of traditional financial instruments, such as loans anddeposits.

Let’s Fintech with PKO Bank Polski!Once again, PKO Bank Polski joined the acceleration programme for start-ups implemented jointly with MIT Enterprise Forum Poland. Inthe second edition of the programme, the Bank is the supervisor of the ”Let’s Fintech with PKO Bank Polski!” path, dedicated to start-upswhose ideas encompass financial solutions related to payments, mobile and Internet banking, safety and investments. The aim of theprogramme is to choose and support most interesting technological start-ups.

Selected Business Initiatives in the 3rd Quarter of 2016

2

IT Leader 2016 in the Digital Business EraPKO Bank Polski is the winner of this year’s edition of the competition organised by ”Computerworld” – IT Leader in the ”banking andfinance” category. The Bank was distinguished for its involvement in the programme of building a digital state, implementation ofmodern solutions in the administration sector and activities intended at integration of the banking sector with respect to the digitisationidea.

3

Executive summary of financial performance

� PKO Bank Polski has adopted a new strategy for the years 2016-2020. As at the end of 2020 the strategy assumes: ROE above 10% decrease in the C/I ratio to the level of below 45%, maintenance cost of risk in the range of 75-85 bp.

� The net profit generated by the PKO Bank Polski Group in 3Q 2016 amounted to PLN 2.3 bn and was higher by 5.3% compared to the previous year

� The 3Q 2016 consolidated result on business activity of PLN 8.9 bn (+12.7% y/y) was determined by the increase in net interest income (+10.9% y/y), mainly as a result of reduced interest expenses (-20.2% y/y), and by a one-off events

� The results of the past two quarters was affected by one-off events: in Q2 the transaction of the acquisition of Visa Europe Limited by Visa Inc., whose impact on the Group’s net profit amounted to PLN 338.2 mn, in Q3 assets sales of Qualia Development and its subsidiaries , whose impact on the Group’s net profit amounted to PLN 109.7 mn. Excluding that one-off events the net profit generated by the PKO Bank Polski Group in Q3 2016 would amounted to PLN 658.8 mn (+23.1%y/y). Including one-off events Group’s net profit in Q3 amounted to PLN 769 mn was lower by 12% compared to the previous quarter

� Administrative expenses in Q3 2016 amounted to PLN 1.4 bn and were lower by 1.3% compared to the previous quarter

� Strengthening a leading market position

− asset base increased to PLN 275.6 bn (+8.1% y/y) as a result of an increase in net loans to PLN 193.2 bn (+4.3% y/y), funded with customer deposits, which rose to PLN 201.2 bn (+12.9% y/y)

− maintenance of a high market share of loans (17.6%) and deposits (17.3%)

� Loan portfolio quality improved considerably

− cost of risk declined by 5 bp y/y to 73 bp on a year-to-year basis

− a y/y 1.8 pp increase of the coverage ratio to 65.3%

− the share of loans with recognised impairment declined by 0.7 pp y/y to 6.2%

� High operational eFciency has been maintained

− Cost to Income ratio (C/I) in Q3 2016 at 52.7%, (45.3% excluding bank tax)

− Return on Equity (ROE) in Q3 at 9.6% (12.4% without bank tax)

− Return on Assets (ROA) in Q3 at 1.1% (1.4% without bank tax)

− Net interest margin in Q3 2016 at 3.17%

� Solid liquidity position and capital strength improvement

− The ratio of loans to stable sources of funding at 83.7%

− Total capital adequacy ratio at 16.00% and Tier 1 Capital ratio at 14.65%; (for the Bank 17.03% and 15.63% respectively) - an increase of 1.52pp y/y resulting mainly from the increase in own funds on account of retaining the 2015 profit, and including the capital net profit achieved in 1H 2016 in the amount of PLN 1.2 billion to Tier 1

� On 2 November 2016, PKO Bank Polski, Raiffeisen Bank International AG and PKO Leasing have entered into a share purchase agreement related to a sale by RBI of 100% of the shares in Raiffeisen-Leasing Polska to PKO Leasing. The transaction enables to achieve leasing market leader position with more than 13% market share and expected EPS accretion of ca. 4% since 2018

3Q'16 3Q'15Change

y/yQ3'16 Q2'16

Change q/q

Net interest income 5 734 5 172 +10.9% 1 971 1 909 +3.3%

Net F&C income 1 988 2 157 -7.8% 686 667 +3.0%

Result on business activity 8 874 7 873 +12.7% 3 041 3 147 -3.4%

Administrative expenses -4 134 -4 113 +0.5% -1 378 -1 396 -1.3%

Net impairment allowance -1 202 -1 111 +8.2% -419 -400 +4.7%

Bank tax -595 _ x -225 -221 +2.0%

Net profit 2 281 2 165 +5.3% 769 874 -12.0%

Assets 275.6 254.9 +8.1% 275.6 272.4 +1.2%

Net loans 193.2 185.2 +4.3% 193.2 191.5 +0.9%

Deposits 201.2 178.3 +12.9% 201.2 199.4 +0.9%

Stable financial resources 230.7 211.2 +9.2% 230.7 229.7 +0.4%

Total equity 32.3 29.6 +9.3% 32.3 31.6 +2.3%

P&L itemsP&L itemsP&L itemsP&L items(PLN mn)(PLN mn)(PLN mn)(PLN mn)

Balance sheet Balance sheet Balance sheet Balance sheet (PLN bn)(PLN bn)(PLN bn)(PLN bn)

4

Financial summary

3Q'16 3Q'15 Change y/y Q3'164) Q2'164) Change q/q

ROE net (%) 8.8 10.2 -1.4 pp. 9.6 11.2 -1.7 pp.

ROE net (%) excluding bank tax 10.7 10.2 +0.5 pp. 12.4 14.1 -1.7 pp.

ROA net (%) 1.0 1.1 -0.1 pp. 1.1 1.3 -0.2 pp.

ROA net (%) excluding bank tax 1.2 1.1 +0.1 pp. 1.4 1.6 -0.2 pp.

C/I (%) 57.0 52.2 +4.8 pp. 52.7 51.4 +1.3 pp.

C/I (%) excluding bank tax 51.9 52.2 -0.3 pp. 45.3 44.4 +0.9 pp.

NIM1) (%) 3.15 3.09 +0.06 pp. 3.17 3.17 +0.00 pp.

NPL ratio2) (%) 6.2 6.9 -0.73 pp. 6.2 6.5 -0.3 pp.

Coverage ratio3) (%) 65.3 63.5 +1.8 pp. 65.3 65.0 +0.3 pp.

Cost of risk (bp.) 73 78 -5 bp. 74 76 -2 bp.

TCR (%) 16.00 14.48 +1.52 pp. 16.00 15.21 +0.79 pp.

Tier 1 capital ratio (%) 14.65 13.17 +1.48 pp. 14.65 13.86 +0.79 pp.

Quality of loan Quality of loan Quality of loan Quality of loan portfolioportfolioportfolioportfolio

Capital positionCapital positionCapital positionCapital position

Key financial Key financial Key financial Key financial indicatorsindicatorsindicatorsindicators

(1) Net interest margin = net interest income of last 4 quarters / average interest bearing assets at the beginning and the end of the period of last 4 quarters (formula consistent with that applied in the PKO Bank Polski Group Directors’ Report)

(2) Share of loans with recognised impairment in total gross loans(3) Coverage of loans with recognised impairment with impairment allowances(4) Ratios on quarterly basis; ROE, ROA, NIM and cost of risk – annualised

5

Key performance indicators

193.5 194.2 195.5 198.9 200.0

3Q'15 2015 1Q'16 1H'16 3Q'16

24.4

99.2

23.7

52.7

0%

10%

20%

30%

40%

50%

60%

-5% 0% 5% 10% 15%

Gross loans by business line as at 30/09/2016

135.2

21.7

39.4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

SME

Gross loans – sum of business lines (PLN bn) Customer deposits - sum of business lines (PLN bn)

Corporate

Retail and private banking

Volume growth rate (y/y)

Mortgage banking

SME

Sh

are

in lo

an

po

rtfo

lio Retail and private banking

Corporate

Customer deposits by business line as at 30/09/2016

Sh

are

in d

epo

sits

po

rtfo

lio

Volume growth rate (y/y)

6

174.2 191.0 190.7 194.9 196.3

3Q'15 2015 1Q'16 1H'16 3Q'16

+3.4%+0.5% +12.7%

+0.8%

Business volumesDynamic growth of volumes of deposits and gross loans

21.1 20.7 20.7 20.6 20.6

11.0

14.012.7 12.7 12.7

16.8 17.9 17.3 17.3 17.3

5.0

10.0

15.0

20.0

25.0

3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

22.9 22.9 22.8 22.8 22.8

12.413.0 12.6 12.5 12.5

17.5 17.9 17.6 17.6 17.6

10.0

15.0

20.0

25.0

3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

Loans market share (%)

232252 255 261 266

7.97.3 7.3 7.2 7.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

0

40

80

120

160

200

240

280

320

3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

%PLN bn

Total assets of mutuals funds (PLN bn)PKO TFI market share (%)

Total

Deposits market share (%)

Mutual funds market share

Private individuals

Institutional entities

7

PKO Bank Polski market shareMaintenance of the leading share in the deposits and loans market

Maintenance of a high share in the deposits and loans market on a competitive domestic banking market , as compared to the previous quarter.

1

Total

Private individuals

Institutional entities

3

1

1

7.111.0

4.7

4.4

6.5

6.1 3.7

16.0

11.5

7.46.8

5.8

5.1

4.9

1.1

-3.4 -3.9

2.54.6

7.0

5.14.5

16.2

5.9

3.6

7.5

6.4

2.6

2010 2011 2012 2013 2014 2015 2016F

TotalResidential MortgagesConsumerInstitutional entities

Deposits - FX adjusted growth rate (%)

Loans- FX adjusted growth rate (%)

Source: Bank’s forecasts

8

2016 macroeconomic and banking sector outlook

1) ESA20102) According to domestic methodology.

9.2

9.7

6.6 5.8

8.8

7.3

8.6

10.2

13.3

8.6

5.9

9.7 9.4 9.0

8.1

5.5

4.25.7

7.6

4.5

7.9

2010 2011 2012 2013 2014 2015 2016F

Total Private individuals

Instututional entities

2013 2014 2015 2016F

GDP % y/y 1.4 3.3 3.9 2.7

Consumption % y/y 0.3 2.6 3.2 3.4

Investments % y/y -1.1 10.0 6.1 -4.1

Public sector deficit1) % GDP -4.1 -3.4 -2.6 -2.2

Public debt2) % GDP 53.3 48.1 49.0 49.8

CPI % 0.9 0.0 -0.9 -0.6

Unemployment rate % eop 13.4 11.4 9.7 8.4

WIBOR 3M % eop 2.71 2.06 1.73 1.70

Reference rate % eop 2.50 2.00 1.50 1.50

EURPLN PLN eop 4.15 4.26 4.26 4.40

USDPLN PLN eop 3.01 3.51 3.90 4.07

9

Financial results

64.6% 65.7% 64.8% 60.7%

22.4%27.4%

22.6%21.2%

13.0%6.9%

12.6%18.1%

3Q'16 3Q'15 Q3'16 Q2'16

Net interest income Net F&C result Net other income

Split of result on business activity

Result on business activityA significant increase in the share of net other income in the structure of result on business activity, mainly due to the settlement of the transaction with Visa and sales of selected properties and entities from the Qualia Development

10

PLN mn 3Q'16 3Q'15Change

y/yQ3'16 Q2'16

Change

q/q

Net interest income 5 734 5 172 +10.9% 1 971 1 909 +3.3%

Net F&C result 1 988 2 157 -7.8% 686 667 +3.0%

Net other income 1 151 544 +111.6% 384 571 -32.8%

Result on financial operations and didvidens

529 97 +443.8% 57 429 -86.6%

Net FX result 351 259 +35.5% 148 109 +35.7%

Net other operating income 272 188 +44.6% 179 33 +443.0%

Result on business activity 8 874 7 873 +12.7% 3 041 3 147 -3.4%

1) The result on investment securities in 2Q 2016 was determined by the settlement of the acquisition of Visa Europe Limited by Visa Inc. As a result of this, PLN 417.6 mn was included in the Bank’s result on investment securities.

2) As a result of two sales transactions in the third quarter of 2016 of the Qualia Development Sp z. o.o. company and its subsidiaries assets. In this respect, net additional revenue of about PLN 114 million was recognized in other operating income and expense of the Group.

1) 1)

2) 2)

1 818 1 856 1 853 1 909 1 971

3.1 3.1 3.1 3.2 3.2

0

500

1 000

1 500

2 000

2 500

0.0

1.0

2.0

3.0

4.0

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16Net interest income quarterly Net interest margin quarterly

4.6 4.4 4.3 4.3 4.3

1.2 1.1 1.0 0.9 0.8

3.1 3.0 3.1 3.1 3.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

3Q'15 2015 1Q'16 1H'16 3Q'16Average interest rate on loans 12M (1)Average interest rate on deposits 12M (1)Net interest margin 12M (2)

The interest margin increased by 0.1 bps. y/y to 3.2% at the end of the third quarter 2016 as a result of increase in annualized net interest income, accompanied by an increase in the average volume of interest-bearing assets (mainly mortgage loans, consumer loans and securities portfolio).

Three quarters of 2016 net interest income was PLN 561.8 (+10.9%) mn higher than last year mainly due to a PLN 413.2 mn decrease in interest expenses associated with the adjustment of the deposit offer pricing terms to declining market interest rates, and due to interest income higher by PLN 148.6 mn as a result of an increase in the volume of asstets.

Net interest income (PLN mn)

(1) Interest income (expense) for last 4 quarters / average net loans (deposits) at the beginning and the end of the period of last 4 quarters(2) Net Interest income for last 4 quarters / average interest bearing assets at the beginning and the end of the period of last 4 quarters (formula consistent with that applied in the PKO Bank Polski Group Directors’ Report)

2

11

Net interest income (1)The continuation of recovery of net interest income in Q3 mainly thanks to anincrease in interes income. In 3Q significant decrease in interest expenses

1

2

Interest income and expense (PLN mn) and WIBOR 3M average in the period

Net Interest margin and average interest rates on loans and deposits (%)

2 433 2 436 2 392 2 461 2 518

615 580 538 552 546

1.72 1.73 1.691.68 1.71

1.00

1.50

2.00

2.50

0

500

1 000

1 500

2 000

2 500

3 000

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

interest income interest expense WIBOR 3M (%)

1

+3.3%

1 5181 195

401

271

131

170

2 049

1 636

3Q'15 3Q'16Customer deposits Debt securities in issue Other

6 050 6 187

750 837 337 260 84 86 7 222 7 370

3Q'15 3Q'16Customer loans Securities Derivative hedging instruments Other

A 20.2% decrease in interest expenses y/y results mainly from:− the decrease in the cost of liabilities to customers by PLN 323.3 million y/y,

mainly resulting from a lower average interest rates on deposits as a result of lower market interest rates and adjusting pricing of deposit products and the expiration of deposits with terms of pricing before the MPC cuts rates,

− the decrease in expenses related to own issuance of debt securities and subordinated liabilities by PLN 129.5 million y/y, associated with the decrease in the level of liabilities from the issue of bonds in the international financial markets and the decline in debt servicing costs on the domestic market.

A 2.1 % increase in interest income y/y results from: − the increase in income from loans and advances to customers (PLN 137.1 million

y/y) – primarily a result of the increase in credit portfolio (mainly housing and consumer PLN loans), with the decrease in the average interest rate resulting from lower market interest rates,

− the increase in income from securities of PLN 86.7 million y/y was a result of increase in the average volume of the portfolio,

Structure of interest expense (PLN mn)Structure of interest income (PLN mn)

Interest rates on term deposits vs. WIBOR 3M (%)1

2

12

Net interest income (2)A significant decrease in interest expense as a result of offer adjustment to lowermarket interest rates

0

1

2

3

4

5

6

7

Q1

'08

Q2

'08

Q3

'08

Q4

'08

Q1

'09

Q2

'09

Q3

'09

Q4

'09

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

%

average interest rate on term depositsaverege WIBOR 3M

+2.1%

-22.8%

+11.6%

+2.3%

-20.2%

-32.3%

-21.3%

1

2

721 694635

667 686

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

516 463

459434

364347

819744

2 157

1 988

3Q'15 3Q'16Loans & insurance

Mutual funds & brokerageCardsCustomer accounts & other

Net fee and commission income (PLN mn)

13

Net fee & commission incomeContiniued q/q increase in net fee and commission income

The level of net fee and commission income during three quarters of 2016 compared to the previous year was mainly affected by:− effect of high reference base of income on payment cards, in 2015 the Bank received bonuses from payment organizations due to renegotiation of

agreements with them,− increase in sales of insurance products offered by the PKO Group, the results of which are presented in categories: the remaining result of the

insurance business− decrease in income from loans and borrowings, mainly related to commercial loans, partially offset by higher commissions related to granting

housing loans,− decrease in commission income on securities transactions due to reduction of customers’ interest in the stock market.

1

y/yq/q

1-7.8%

-9.0%

-4.7%

-5.5%

-10.1%

+3.0%

-2.2%

+15.8%

+9.2%

-3.2%

97

529259

351

188

272

544

1 151

3Q'15 3Q'16

Net other operating income

Net FX gains

Result on financial operations and didvidens

160

242197

153

384

418

114

160

242

197

571

384

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Net other income (PLN mn)

14

Net other incomeA significant increase in net other income, supported by income from the Visa transaction and assets sales of Qualia Development

A twofold increase in net other income in 3Q 2016 was mainly impacted by:− higher result on gains less losses from investment securities, which was determined by the settlement of the acquisition of Visa Europe Limited by Visa

Inc in Q2 2016. The Bank participated in this transaction. As a consequence, PLN 417.6 mn was included in the Bank’s result on revenue in gains less losses from investment securities.

− increase in net other operating income and expense mainly as a result of two sales transactions in Q3 2016 of the Qualia Development company and its subsidiaries assets. In this respect impact on the Group’s profit before tax amounted to PLN 114 mn.

1

y/y q/q1

Visa impact +111.6%

+44.6%

+35.5%

+443.8%

-32.8%

+443.0%

+35.7%

-86.6%

Qualia impact

51.7 50.7 44.4 45.3

17.25.5

7.0 7.4

52.9 49.5

68.9

56.251.4 52.7

Q2'15 Q3'15 Q4'15 1Q'16 Q2'16 Q316

The increase in administrative expenses by 0.5% compared with the same period previous year. The administrative expenses level was mainly determined by the increase of employee benefits in the amount of PLN 68.5 million ie. 3.4% increase. Increase has been mitigated with decrease of overheads cost in the amount of PLN 32.5 million y/y ie. 3.0% and decrease of depreciation of tangible fixed assets in the amount of PLN 17.6 million ie. 2.9%

1335

1444

1360 1396 1378480

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Administrative expenses (PLN mn)

C/I ratio quarterly

15

Administrative expensesMaintaining high efficiency despite increasing regulatory burden

1

FTEs %Bank 25 784 25 403 -381 -1.5%Group 28 988 28 891 -98 -0.3%

Employment eop (FTEs) 3Q'163Q'15 Change y/y

2 040 2 109

1 083 1 051

610 59245 53

334 329

4 113 4 134

3Q'15 3Q'16

Personnel expense Overheads

Depreciation Taxes & fees

BGF expenditures

y/y q/q

1

-2.9%

-3.0%

+3.4%

-2.6%

-3.6%

-0.3%

The effectiveness of the PKO Group measured with C/I ratio on a quarterly basis was 52.7%, C/I (without banking tax) was 45.3% compared to 49.5% realized in the third quarter of 2015. C/I ratio in annual terms amounted to 57.0% and was under negative influence of one-off events from IV quarter of 2015. C/I ratio in annual terms excluding tax on certain financial institutions stood at 51.9%.

2

+0.5%

-1.4%

-1.3%

+0.3%

2

*one-off costs incurred in Q4 2015 in the amount of PLN 479.9 mn (PLN 337.9 mn charge for BFG in connection with the bankruptcy SK Bank and PLN 142.0 mn payment to the Borrower Support Fund)

One-off costs*

One-off effect

bank tax effect

-258 -265

-210 -222

-601 -600

-42-114

-1 111-1 202-1 300

-1 100

-900

-700

-500

-300

-100

3Q'15 3Q'16

Consumer loans 1) Mortgage loans 1) 2)Corporate loans 1) Other

Net impairment allowance and write-offs (PLN mn)

Share of loans with recognised impairment3)

(1) management accounts data (2) Housing loans to individuals (3) Calculated by dividing the gross carrying amount of impaired loans and advances to customers by the gross carrying amount of loans and advances to customers

16

Net impairment allowanceOn a year-to-year basis - improvement in cost of risk, share of loans with recognised impairment and deterioration in net impairment allowance

In the period of three quarters of 2016 there was a deterioration of net impairment allowance and write-downs compared to the same period in 2015 for 8.2% y/y, it was mainly due to additional provisions booked for depreciation of securities, assets and off-balance sheet liabilities. .

1

3Q'15 3Q'16 Change y/y

Consumer loans 8.5% 7.8% -0.7 pp.

Mortgage loans 2.7% 2.5% -0.2 pp.

PLN 2.3% 2.0% -0.3 pp.

FX 3.5% 3.7% +0.1 pp.

Corporate loans 11.8% 10.4% -1.4 pp.

Total 6.9% 6.2% -0.7 pp.

y/y q/q

+8.2% +4.7%

-0.3%-3.2%

+5.9% +27.2%

+3.0% -2.7%

-362 -365 -382 -400 -419

7872 72 70

7370

90

110

130

150

-600

-500

-400

-300

-200

-100

0Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Net impairment allowance (PLN mn)Cost of risk 12M (bp.)

1

PLN bn 30.09.15 30.09.16 Change y/y

Cash and balances with the Cen.Bank 8.2 14.3 +75.3%

Amounts due from other banks 4.1 3.7 -9.5%

Derivative financial instruments 4.4 2.6 -39.7%

Securities 43.7 51.2 +17.1%

Loans and advances to customers 185.2 193.2 +4.3%

Other assets 9.4 10.6 +12.8%

Total assets 254.9 275.6 +8.1%3.2% 5.2%1.6% 1.4%1.7% 1.0%

17.1% 18.6%

72.6% 70.1%

3.7% 3.8%

30.09.15 30.09.16

Other assets

Loans and advances tocustomers

Securities

Derivative financial instruments

Amounts due from other banks

Cash and balances with theCen.Bank

Total assets

Total equity and liabilities

17

Consolidated statement of financial positionSecure structure of the balance sheet has been maintained

8.0% 7.0%1.9% 1.2%

69.9% 73.0%

0.9% 0.9%5.5% 3.8%1.0% 0.9%1.1% 1.5%11.6% 11.7%

30.09.15 30.09.16

Total eqiuty

Other liabilities

Subordinated liabilities

Debt securities in issue

Liabilities of insurance activities

Amounts due to customers

Derivative financial instruments

Amounts due to banks

PLN bn 30.09.15 30.09.16 Change y/y

Amounts due to banks 20.3 19.2 -5.7%Derivative financial instruments 4.9 3.4 -29.9%Amounts due to customers 178.3 201.2 +12.9%Liabilities of insurance activities 2.4 2.6 +7.6%Debt securities in issue 14.1 10.4 -26.2%Subordinated liabilities 2.5 2.5 +0.9%Other liabilities 2.9 4.1 +38.7%Total eqiuty 29.6 32.3 +9.3%Total eqiuty and liabilities 254.9 275.6 +8.1%

(1) Amounts due to customers(2) Amounts due to customers and long-term external funding in the form of: securities issues (including funds raised through issuance under an EMTN

programme executed by PKO Finance AB); subordinated debt; and amounts due to financial institutions.

Gross loans (PLN bn) Deposits(1) (PLN bn)

Currency structure of gross loans portfolio Term structure of total deposits1)

Banking sector 3Q’16

18

Loans and depositsStable growth of the scale of operations

3Q'15 2015 1Q'16 1H'16 3Q'16

193.7 198.7 196.2 200.0 201.3

3Q'15 2015 1Q'16 1H'16 3Q'16

178.3 195.8 194.9 199.4 201.2

48.3% 47.1% 48.7% 50.0% 50.3%

51.7% 52.9% 51.3% 50.0% 49.7%

3Q'15 2015 1Q'16 1H'16 3Q'16

current+O/N term+other

1

A PLN 22.9 bn increase in the volume of deposits on a year-to-year basis (+12.9%) mainly due to a PLN 10.2 mln increase in deposits of retail clients and a PLN 9.6mn increase in deposits of corporate entities

1

103.9%

97.3% 96.4% 96.0% 96.0%

87.7%85.0% 84.3% 83.4% 83.7%

3Q'15 2015 1Q'16 1H'16 3Q'16

Net loans/depositsNet loans/stable sources of funding (2)

74,8% 74,7% 75,1% 75,1% 75,9% 72,8%

25,2% 25,3% 24,9% 24,9% 24,1% 27,2%

3Q'15 2015 1Q'16 1H'16 3Q'16

FX PLN

Amounts due to corporate

entities24%

Amounts due to State budget entities

5%Amounts due

to retail clients71%

Amounts due to banks

8%Derivative financial

instruments1%

Amounts due to customers

83%

Amounts concerning insurance

activity1%

Debt securities in issue

4%

Subordinated liabilities

1%Other

liabilities2%

Liabilities structureLiabilities structureLiabilities structureLiabilities structure(total as at 30 September 2016: PLN 243.3 bn)

Deposit structureDeposit structureDeposit structureDeposit structure(total as at 30 September 2016: PLN 201.2 bn)

19

Funding sourcesWell-diversified sources of funding

• Retail and corporate deposits are the primary funding source.

• Financing agreements as at the end of 3Q 2016 included:

− USD 1,000 mn 10Y note issued in September 2012 on the US market under Rule 144A

− EUR 500 mn 5Y bond issued in January 2014

− multi-currency (CHF 3,645.8 mn, EUR 465.4 mn and USD 3.7 mn) credit from Nordea Bank AB opened in April 2014

− CHF 224 mn 10Y subordinated loan opened by Nordea Bank Polska in April 2012

− PLN 1,600.7 mn 10Y subordinated bond issued in September 2012

Issued by State

Treasury92%

Issued by banks

1% Eqiuty securities

1%

Issued by local

government bodies

3%

Other 4%

Trading assets Financial assets designated at fair value through P&L (ALPL)

Investment securities available for sale (AFS)

Structure as at 30/09/2016

20

Securities portfolio breakdownDebt securities issued by the Treasury are predominant in the structure of the portfolio

2.5 0.8 2.3 2.9 1.6

14.6 15.2 13.1 13.8 15.2

26.3 28.3 31.7 33.7 34.1

0.29 0.210.31

0.33 0.28

43.7 44.5 47.4 50.7

51.2

3Q'15 2015 1Q'16 1H'16 3Q'16

Trading ALPL AFS HTM

53% 58%

21%18%

11% 9%4% 3%

13% 12%

3Q'15 3Q'16

Other

Issued by banks

Local government debtsecuruties

NBP money market bills

Issued by State Treasury

Issued by State Treasury

25%

NBP money market bills

62%

Issued by local government

bodies2%

Other 11%

Issued by State

Treasury70%

Issued by banks4%

Issued by local

government bodies13%

Equity securities

1%

Other11%

21

Risk management

63.5

%

63.3

%

64.

6%

65.0

%

65.3

%

63.1

%

63.

0%

63.9

%

64.0

%

64.4

%

3Q'15 2015 1Q'16 1H'16 3Q16

Group Bank

Coverage of loans with recognised impairment by impairment allowance had maintained growing trend in comparison to the previousyear as well as previous quarter

7872 72 70 73

8175 71 69 72

6.9%6.6% 6.6% 6.5% 6.2%

6.7%6.4% 6.5% 6.5% 6.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

50

70

90

110

130

150

170

3Q'15 2015 1Q'16 1H'16 3Q16

Cost of risk for last 12M (bp) GroupCost of risk for last 12M (bp) BankShare of impaired loans (Group)Share of impaired loans (Bank)

2,0%

4,0%

6,0%

8,0%

10,0%

3Q'15 2015 1Q'16 1H'16 3Q'16

Share of impaired loans (sector)Share of impaired loans (PKO BP)Share of loans delayed past due over 90 days (sector)Share of loans delayed past due over 90 days (PKO BP)

The declining trend in the share of loans with recognised impairment had been maintained during 12 months

Share of loans with recognised impairment and cost of risk

Coverage of loans with recognised impairment by impairment allowance

Quality of loan portfolio vs. banking sector

1

2

22

Loan portfolio qualityContinued improvement in the loan portfolio quality

1

Source: Own calculations based on PFSA data for the banking sector.

2

8175

71 69 72

129

115105 106 108

27 27 2923 27

148 147139 137 142

3Q'15 2015 1Q'16 1H'16 3Q16

Total Corporate loans Mortgage loans* Consumer loans

4.9% 4.8% 4.9% 4.8% 4.7%

1.8% 1.6% 1.6% 1.7% 1.5%

6.7%6.4% 6.5% 6.5% 6.2%

3Q'15 2015 1Q'16 1H'16 3Q16

63.1

%

63.

0%

63.

9%

64.

0%

64.

4%

56.9

%

57.

6%

58.2

%

58.

1%

59.0

%70.

0%

68.

8%

69.0

%

69.4

%

70.

1%80.

8%

78.

0%

79.

5%

80.

3%

79.

4%

3Q'15 2015 1Q'16 1H'16 3Q16

Total Corporate loans Mortgage loans* Consumer loans

Improvement in corporate loans cost of risk by 21 bp y/y

Loans delayed past due over 90 days

Other loans

Share of loans with recognised impairment

Cost of risk over the last 12M (bp.)

Coverage of loans with recognised impairment by impairment allowance

23

2

1

Growth of coverage ratio in comparison to the previous year. In the case of corporate loans the level of coverage ratio increased by 210 bp in comparison to the previous year, and it was the biggestgrowth among others

2

1

Standalone data

Loan portfolio qualityRecord-low level of the share of loans with recognised impairment

* Includes data of PKO Bank Polski and PKO Bank Hipoteczny

The highly diversified structure of the loan portfolio indicates low sector concentration. At the end of 3Q 2016 the biggest share in the portfolio had asection „Industrial processing" (17.2%), whose share in the portfolio increased by 0.5 pp. y/y. The largest decline of the share in the portfolio (-2.1 pp.y/y) was on the section „Construction”.The share of the section „Mining and quarrying” in the corporate loans portfolio is approx. 1.5%.

Structure of corporate1) loans by industry segment

(1) Gross loans of non-financial and state budget entities

1

24

Credit risk concentrationHighly diversified loan portfolio

Receiveables due from corporateReceiveables due from corporateReceiveables due from corporateReceiveables due from corporate1)1)1)1) entities (PLN bn)entities (PLN bn)entities (PLN bn)entities (PLN bn)1

69.7 69.3 70.6 70.8 71.4

14.5 14.7 14.3 14.3 14.5

84.2 84.0 84.9 85.1 85.9

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

Gross loans Corparate and municipal bonds

16.7% 17.2%

16.0% 16.5%

15.2% 15.7%

8.9% 6.8%

8.9% 8.2%

2.0% 1.8%

32.3% 33.8%

30.09.2015 30.09.2016

Other exposure

Electricity, gas, water, hot water and air to themechanical systems production and supply

Public administration and national defenceobligatory social security

Construction

Wholesale and retail trade, repair of motor vehicles,including motorcycles

Maintenance of real estate

Industrial processing

+2,0%

+0,3%

+2.4%

13.90 13.69 13.45 13.61 13.51 12.81

0.69 0.66 0.68 0.65 0.640.50

0.49 0.48 0.68 0.63 0.610.61

3Q'15 2015 1Q'16 1H'16 3Q'16 3Q'16

Market risk Operating risk Credit risk

27.3 27.128.6 28.3

29.5 29.6

15.1 14.8 14.8 14.9 14.8 13.9

14.5% 14.6%15.4%

15.2%16.0% 17.0%

13.2%13.3% 14.1%

13.9%14.7%

15.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

5

10

15

20

25

30

3Q'15 2015 1Q'16 1H'16 3Q'16 3Q'16

PLN

bn

Total own funds Total capital requirement

Total capital adequacy ratio Tier 1 capital ratio

Own funds have increased due to the inclusion of part of profit for 1H2016 in the amount of PLN 1.151 bln.

As of 3Q2016, capital adequacy levels remained above any external limits and levels recommended by supervisory bodies (PFSR/EBA).

Own funds (PLN bn)

Total capital requirement (PLN bn)

25

Capital adequacySolid capital position

1

1

24.82 24.61 26.11 25.82 27.03 27.21

2.47 2.482.48 2.51

2.49 2.43

3Q'15 2015 1Q'16 1H'16 3Q'16 3Q'16

Tier 2 Tier 1

BankGroupBankGroup

New decisions of the PFSR regarding capital adequacy:• O-SII buffer: decision as of 10/10/2016 regarding the Bank’s recognition as

an O-SII (other systemically important institution), imposing on the Bank anew buffer of 0.75% of the total risk exposure amount.

• Additional own funds requirement related to FX retail mortgages: decisionas of 18/10/2016 requiring maintanance of additional own funds amount forthe purpose of mitigation of the risk arising from foreign currencydenominated mortgages, amounting to 0.83% of the total risk exposure overthe Total Capital Ratio, 0.62% over Tier 1 ratio and 0,46% over CET 1 ratio.

110%116%

138%

126%

Liquidity Coverage Ratio (LCR) Net Stable Funding Ratio (NSFR)

30.09.2015 30.09.2016

According to Capital Requirements Directive IV / Capital Requirements Regulation,implemented as at 31 March 2014, the minimum LCR levels to be maintained are:

− 70% as of 1 January 2016 − 80% as of 1 January 2017 − 100% as of 1 January 2018

100% - level effective for LCR from

2018 1

26

Liquidity ratiosLCR level significantly above the regulatory standards

1

27

Business activity by segment

3.1 2.9 2.7 3.1 2.9

1.4 1.31.0

1.3 1.2

2.3 2.52.4

3.43.1

6.8 6.76.1

7.87.2

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16Mortgage banking SME Retail and private banking

126.0 128.3 131.8 134.4 135.2

18.9 20.1 19.6 20.5 21.7144.9 148.4 151.4 154.8 156.9

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

SME Retail and private banking

23.5 23.5 23.6 24.2 24.4

23.8 23.5 23.6 23.8 23.7

94.9 96.1 96.2 98.8 99.2

142.2 143.1 143.5 146.9 147.3

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

Mortgage banking SME Retail and private banking

-335

-3 293 -3 257

-866 -737

188 2051 620 1 448

4 584 4 775

2 232 2 100

3Q'15 3Q'16

Net interest income

Net F&C income

Other income

Net impairmentallowance

Administrativeexpenses

Bank tax

Segment results: Retail BankingIncrease in the volume of loans and deposits, and significant growth in the sales of housingloans y/y

28

Gross financial result of retail segment (PLN mn)Gross loans (PLN bn)

Deposits (PLN bn)

New sales of loans (PLN bn) - standalone data*

*) Does not include renewals of SME loans, which in 3Q’16 amounted to ca. PLN 800 mn

y/y q/q

3Q’16/3Q’15

y/y q/q

q/q

-5.9%

+4.2%

-10.6%

-1.1%

-14.9%

+1.4%+8.3%

+6.0%+14.7%

+0.6%+7.3%

+0.3%+3.6%

+0.4%+4.5%

-0.5%-0.2%

+0.8%+4.1%

-7.5%+7.1%

-7.6%+29.2%

-10.6%-8.0%

-6.1%-3.4%

-239-820

-877-245

-465

358 505

537542

8591 078

690

544

3Q'15 3Q'16

Net interest income

Net F&C income

Other income

Net impairmentallowance

Administrativeexpenses

Banking tax

29.2

42.6 39.3 40.039.4

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

51.3 51.2 52.1 52.1 52.7

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

7.97.0 6.3

5.94.6

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

y/y

29

Segment results: Corporate and Investment BankingA decrease in the segment’s result is mainly associated with an increase in impairmentallowances for corporate loans

Gross financial result of the corporate and investment segment in PLN mn

Gross loans (PLN bn)

Deposits (PLN bn)

New loan sales (PLN bn), standalone data

q/q

y/y q/q

q/q

-21.2%

+25.6%

+0.9%

+40.9%

+7.1%

+89.8%

+34.7% -1.6%

+2.7% +1.2%

3Q’16/3Q’15

-17.6% -21.8%

30

The transaction of acquisition of Raiffeisen Leasing Polska by PKO Leasing

Key benefits resulting from the transaction for the PKO BP Group and its shareholders

• Leasing market leader with more than 13% market share by sales value

• Doubling of the market share in the dynamically growing leasing market

• Significant strengthening of PKO BP Group’s position in the promising SMEs segment

• Increase in revenues and profitability of leasing business resulting from the complementarity of sales networks and business models of both leasing companies

• Expected PKO BP EPS accretion of c. 4% since 2018

31

The transaction brings significant benefits to PKO BP Group and its leasing company

32

Undisputable market leader in the Polish leasing sector

Complementary sales networks

Two-fold higher profitability of RLPL resulting from different

pricing policy and growth strategy

Acquisition of the insurance service model

Implementation of the most efficient operational and IT

solutions

• Market share of 13.3% vs 9.8% of the second biggest player• Stronger position in the small and medium-sized enterprises (SME) segment

• Economies of scale• Implementation of know-how and best practices from both companies on the level of

individual sales channels• Diversification

• Cost optimization resulting from the HQ consolidation• More efficient sales and post-sales processes• Utilisation of Raiffeisen Leasing’s strength in non-banking sales channels

• More profitable insurance service model through internal insurance agency (RaiffeisenInsurance Agency)

• Model to be potentially utilised also in the Bank• Higher insurance cross sell in both RLPL and PKO Leasing through transfer of best

practices in particular products

• Acceleration of time-to-market for the most modern processes and systems with no additional capex requirements

The Transaction offers significant synergy potential for PKO Leasing and financing opportunity for PKO Bank Polski

+

PKO BP expects that the transaction is EPS accretive for PKO BP and is expected to reach double-digit RoI already from 2017

33

Projected financial impact on PKO BP Group

2016E 2017E 2018E 2019E

RLPL’s net income, synergies and integration costs (PLN m)

62 90 108 121

Expected PKO BP earnings accretion / (dilution)

+3,4% +3,7% +3,9%

Expected Return on Investment (RoI)

10,6% 12,8% 14,2%

One off integration costs below PLN 20m

Source: PKO BP expected net income based on Bloomberg consensus Note: The information outlined above being the financial planning data, forward-looking statements or other business outlook information shall be read as the internal targets of the Bank and shall not be construed as s financial projections or forecasts. These targets have been prepared based on the information prepared by research analysts using only publicly available information. These targets may or may not prove to be accurate.

RLPL’s net income will be consolidatedsince closing

expected to takeplace in Dec’16

34

Additional information

3 882 5 307

7 832

2010 2012 2015

Number of customers with access to e-banking('000)

+102%

6150 6220

6621

2010 2012 2015

Number of current accounts of induviduals ('000)

+8%

SME customers

PKO Bank Polski is a clear leader of Polish banking sector

430k

Retail segment customers (incl. SMEs)

9.0 mn

Users with access to e-banking (incl. SMEs)

7.8 mn

Corporate segment custmers

14k

Agencies0.9k

Group employment

29.2k

Branches1.2k

ATMs3.2k

35

101

228

431

260

1296

3410

0

1000

2000

3000

4000

0

100

200

300

400

500

2013 2014 2015No. of active IKO apps ('000)No. of operations via IKO ('000)

IKO

2.4 2.8

3.2

2010 2012 2015

Number of ATMs ('000)

+33%

3.1

2.3 2.1

2010 2012 2015

Number of retail agencies and branches ('000.)

-29%

9.7 10.1

18.2

2010 2012 2015

PKO TFI - value of assets under management(PLN bn)

+88%

5.9%

9.1% 9.2%

2010 2012 2015

The share of DM PKO BP SA in trading on the secondary stock market

+3,3p.p.

6.1

8.7 9.6

2010 2012 2015

Number of corporate customers using iPKO Biznes ('000)

+58%

877

650 669 640752 753

2013 2014 2015 1Q 2016 1H2016 3Q2016

120 129 152

3786.586

134

-138

-46

22 10 21.95 35

2013 2014 2015 1Q 2016 1H2016 3Q2016Result on business activity Net financial result

14.5% 19.1% 15.4% 17.4% 17.4%

79.5% 73.3% 73.6% 73.4% 71.4%

2014 2015 1Q'16 2Q'16 3Q'16Capital adequacy N2 by UAS (min 10%)

Net loans/deposits

Net loans (PLN mn)

Deposits (PLN mn)

Financial results (PLN mn)

36

Activity in Ukraine – results of Kredobank

Adequacy and liquidity

Loan portfolio quality

1 041817

913 8691 024 1 055

2013 2014 2015 1Q 2016 1H2016 3Q2016

254 257224 224

277 277

108132

84 81 83 80

2013 2014 2015 1Q 2016 1H2016 3Q2016Capital exposure Subordinated loan

PKO BP’s exposure (PLN mn)

32.5% 25.4% 24.2% 21.6% 20.9%

49.7%61.0% 62.3% 67.9%

69.1%

2014 2015 1Q'16 2Q'16 3Q'16

Share of loans with recognized impairment

Coverage of loans with recognized impairment byimpairment allowance

160 161 160 162 161

137 139 139 140 142

220 222 219 226 220

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

Total PLN FX

Standalone data

37

Retail segment – mortgage loans

Average carrying value of mortgage loan (PLN’000)

Average LTV

Average value of mortgage loan in new sales (PLN’000)

73% 74% 73% 73% 70%

69%71% 71% 72% 73%

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Current average LTV of loans portfolio (eop)

Average LTV of new sales

219 223211

222235

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Market share of FX mortgage loans

25.5% 25.5% 25.5% 25.5% 25.6%

28.7% 28.7% 28.5% 28.5% 28.6%

21.5% 21.5% 21.5% 21.5% 21.4%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

Total PLN FX

* Includes data of PKO Bank Polski and PKO Bank Hipoteczny

*

*

*

*

CHF denominated mortgage loans portfolio

Volume of FX mortgage loans (PLN bn eop) Structure of mortgage loans by currrency

38

Relief measures vis-a-vis the Bank’s customers with mortgage loans in CHF:

1) Inclusion of negative CHF LIBOR rate values in setting of the mortgage banking product rates;

2) Interim relief measures effective until the end of 2015 and extended until end of 2016:

− Reduction of the currency spread rate to 1% for the mortgage banking products denominated in CHF;

− Enabling extension of lending tenors without any additional fee or charge;

− Refraining from actions aimed at seeking additional loan collateral;

− Enabling loan currency conversion at average NBP rate as at the date of the loan agreement annex signature (at no additional charge);

− An additional relief for CHF borrowers, including reimbursement to them of a part of their principal repayments whenever the negative reference rate exceeds the Bank’s margin.

In addition, the Bank provided customers with the opportunity to apply for change of collateral of the loans in CHF in order to allow the sale of real estate secured with mortgage, associated with the granting of a new loan in PLN and the establishment of a mortgage on a newly purchased property

* *

* Includes data of PKO Bank Polski and PKO Bank Hipoteczny

31.6 31.6 30.8 31.5 30.2

4.2 4.2 4.1 4.2 4.0

35.8 35.7 34.8 35.6 34.2

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

CHF Other FX

62,5% 63,1% 64,1% 64,2% 65,8% 58,4%

33,1% 32,6% 31,7% 31,6% 30,2%33,7%

4,4% 4,3% 4,2% 4,2% 4,0% 7,9%

30.09.15 31.12.15 31.03.16 30.06.16 30.09.16 Bankingsector

30.09.16PLN CHF Other FX

5.0

7.2

0

1

2

3

4

5

6

7

8

-2

-1

0

1

2

3

4

5

6

7

Job offers eop/unemployed, sa, ratio (R)

Real wages growth, %yoy (L)

8.3

6.2

3.2

-2

-1

0

1

2

3

4

5

6

8

10

12

14

16

Registered unemployment rateEmployment growth (y/y) RHS

LFS unemployment rate, sa1)

2.5

-8

-4

0

4

8

12

-5

-4

-3

-2

-1

0

1

2

3

4

5

GDPhousehold consumption expendituresexternal trade contribution (pp)gross fixed investments (RA)

Real GDP growth and its drivers (% y/y) Labour market trends (%)

(1) Percentage share of the number of unemployed population in the number of economically active population (i.e. employed and unemployed persons); consistent with EU methodology.

39

1

2

3

Macroeconomic trendsStable GDP growth and booming labour market

GDP growth in 3Q2016 slowed to 2.5% y/y from 3.1% y/y in 2Q2016 (before revision). Private consumption has remained the key growth driver, while drop in fixed investments has deepened. Slump in investments is related mainly to massive fiscal tightening at local governments level. Thus, modest GDP growth slowdown is coupled with substantial reduction of the fiscal deficit.

1

Solid economic growth translates into further firming of labour market conditions: employment growth accelerated and the unemployment rate dropped to the record low level.

Record low unemployment leads to gradual strengthening of wage pressure. Average wage growth in 3Q2016 was 4.2% y/y in nominal terms and 5.0% y/y in real terms. Solid rise in households income fuels private consumption growth.

2

3

The ratio of supply and demand on the labour market vs. real wage growth (% y/y)

4.31

3.86

3.98

2

3

4

5

-0.5

-0.4

-2

-1

0

1

2

3

4

5

Core inflation

CPI inflation

PLN/CHF

PLN/USD

PLN/EUR

WIBOR 3M

2

CPI and core inflation (% y/y)

Interest rates (% eop)

PLN exchange rates

5-year yield

Reference rate

40

Macroeconomic trendsLonger deflation, stable NBP interest rates

1

3

2.35

1.50

1.71

1

2

3

4

5

6

7

The PLN appreciated against major currencies (EUR, USD, CHF) in 3Q2016 driven mainly by reduction in global risk aversion (market sentiment has improved following earlier fears of GDP growth slowdown in China and Brexit).

The MPC signals that NBP interest rates should remain unchanged as resumption of monetary policy easing would be negative for financial system stability. MPC members believe that deflation has not had adverse impact on the Polish economy. At the same time, GDP has become relatively more important in the MPC’s reaction function.

CPI inflation in 3Q2016 (on average) rose to -0.8% y/y from -0.9% y/y in 2Q2016 low base effects for fuel prices more than offset smaller scale of food prices growth and drop in core inflation. The headline inflation rate should return into positive territory in December or January due to powerful low base effects for fuel prices. Pro-inflationary factors in the subsequent factors will be changes in tax and regulatory policies and stronger consumption demand.

1

3

2

Deposit growth rates (% y/y)

Loan growth rates (% y/y) Mutual funds market (PLN bn)

41

Banking sector and mutual fundsSlower deposits and loans growth

1

2

3

7.5

4.0

5.34.0

-10

-5

0

5

10

15

20

25

30

Housing

Total

Corporate

Consumer

8.810.1

5.8

-7

-5

-3

-1

1

3

5

7

9

11

13

15

17

Total

Corporate

Private individuals

Total loans growth declined in 3Q2016 (to 4.0% y/y; FX adj. 4.2% y/y) as banks have adjusted to changes in relatively profitability of different segments of the loan market: consumer loans’ growth has remained the strongest (7.5%; FX adj. 7.8%), corporate loans growth slowed down (5.3%; FX adj. 4.8%) while mortgages’ growth accelerated (4.0%; FX adj. 5.2%).

Deposits growth decelerated in 3Q2016 (8.8% y/y) with slower rise in households deposits (10.1% y/y) and weaker increase in corporate deposits (5.8% y/y). The Loan-to-Deposit ratio declined to 99.7% vs. 100.1% in 2Q2016.

Assets of mutual funds moderately rose in 3Q2016 driven by net inflow of assets and upward trend in equity indices (WIG up by 5.2% q/q in 3Q2016).

1

3

2

265.8

90

120

150

180

210

240

270

-5

0

5

10

15

20

net inflow

net mutual fund assets

42

Summary operational data

y/y q/q

Current accounts ('000) 6 600 6 621 6 643 6 703 6 780 +2.7% +1.1%

Banking cards ('000) 7 489 7 523 7 558 7 642 7 763 +3.7% +1.6%

of which: credit cards 845 838 835 840 842 -0.4% +0.3%

Branches: 1 290 1 278 1 275 1 267 1 256 -2.6% -0.9%

- retail 1 251 1 238 1 235 1 227 1 216 -2.8% -0.9%

- corporate 39 40 40 40 40 +2.6% 0.0%

Agencies 887 881 870 857 851 -4.1% -0.7%

ATMs 3 214 3 196 3 191 3 200 3 178 -1.1% -0.7%

Active IKO applications ('000) 354 431 554 623 818 +131.1% +31.3%

ChangePKO Bank Polski operating data (eop) Q1'16Q3'15 Q4'15 Q2'16 Q3'16

43

Consolidated income statement of the PKO BP Group

  Profit and loss account (PLN '000) 3Q'15 3Q'16 Change y/y

Net interest income 5 172 199 5 733 989 +10.9%

Net fee and commission income 2 157 080 1 988 285 -7.8%

Other income 544 090 1 151 477 +111.6%

Dividend income 10 658 10 045 -5.8%

Net income from financial instruments designated at fair value 10 875 15 536 +42.9%

Gains less losses from investment securities 75 738 503 332 +564.6%

Net foreign exchange gains 258 935 350 942 +35.5%

Net other operating income and expense 187 884 271 622 +44.6%

Total income itemsTotal income itemsTotal income itemsTotal income items 7 873 369 7 873 369 7 873 369 7 873 369 8 873 751 8 873 751 8 873 751 8 873 751 +12.7%+12.7%+12.7%+12.7%

Net impairment allowance and write-offs (1 110 965) (1 201 520) +8.2%

Administrative expenses (4 112 563) (4 134 448) +0.5%

Tax on certain financial institutions - (594 749) x

Share in net profit (losses) of associates and jointly controlled entities 24 102 24 738 +2.6%

Profit before income tax Profit before income tax Profit before income tax Profit before income tax 2 673 943 2 673 943 2 673 943 2 673 943 2 967 772 2 967 772 2 967 772 2 967 772 +11.0%+11.0%+11.0%+11.0%

Income tax expense (520 858) (686 634) +31.8%

Net profit attributable to non-controlling shareholders (12 222) 483 x

Net profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent company 2 165 307 2 165 307 2 165 307 2 165 307 2 280 655 2 280 655 2 280 655 2 280 655 +5.3%+5.3%+5.3%+5.3%

44

Consolidated income statement of the PKO BP Group -quarterly

  Profit and loss account (PLN '000)  Profit and loss account (PLN '000)  Profit and loss account (PLN '000)  Profit and loss account (PLN '000) Q3'15Q3'15Q3'15Q3'15 Q4'15Q4'15Q4'15Q4'15 Q1'16Q1'16Q1'16Q1'16 Q2'16Q2'16Q2'16Q2'16 Q3'16Q3'16Q3'16Q3'16Q3'16/Q3'16/Q3'16/Q3'16/Q3'15Q3'15Q3'15Q3'15

Q3'16/Q3'16/Q3'16/Q3'16/Q2'16Q2'16Q2'16Q2'16

Net interest income 1 818 099 1 856 396 1 853 195 1 909 316 1 971 478 +8.4% +3.3%

Net fee and commission income 720 548 693 548 635 445 666 571 686 269 -4.8% +3.0%

Other income 159 599 241 510 196 794 571 057 383 626 +140.4% -32.8%

Dividend income 982 - - 8 896 1 149 +17.0% -87.1%

Net income from financial instruments designated at fair value 2 004 29 702 (8 439) (5 304) 29 279 +1361.0% x

Gains less losses from investment securities 6 385 12 009 50 631 425 767 26 934 +321.8% -93.7%

Net foreign exchange gains 92 247 110 159 94 420 108 814 147 708 +60.1% +35.7%

Net other operating income and expense 57 981 89 640 60 182 32 884 178 556 +208.0% +443.0%

Total income itemsTotal income itemsTotal income itemsTotal income items 2 698 246 2 698 246 2 698 246 2 698 246 2 791 454 2 791 454 2 791 454 2 791 454 2 685 434 2 685 434 2 685 434 2 685 434 3 146 944 3 146 944 3 146 944 3 146 944 3 041 373 3 041 373 3 041 373 3 041 373 +12.7%+12.7%+12.7%+12.7% -3.4%-3.4%-3.4%-3.4%

Net impairment allowance and write-offs (362 316) (364 953) (382 166) (400 202) (419 152) +15.7% +4.7%

Administrative expenses (1 335 476) (1 923 707) (1 360 493) (1 396 039) (1 377 916) +3.2% -1.3%

Tax on certain financial institutions - - (148 365) (221 031) (225 353) x +2.0%

Share in net profit (losses) of associates and jointly controlled entities 8 279 14 013 3 318 7 297 14 123 +70.6% +93.5%

Profit before income tax Profit before income tax Profit before income tax Profit before income tax 1 008 733 1 008 733 1 008 733 1 008 733 516 807 516 807 516 807 516 807 797 728 797 728 797 728 797 728 1 136 969 1 136 969 1 136 969 1 136 969 1 033 075 1 033 075 1 033 075 1 033 075 +2.4%+2.4%+2.4%+2.4% -9.1%-9.1%-9.1%-9.1%

Income tax expense (193 031) (68 639) (159 760) (265 634) (261 240) +35.3% -1.7%

Net profit attributable to non-controlling shareholders 454 3 911 (622) (2 214) 3 319 +631.1% x

Net profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent company 815 248 815 248 815 248 815 248 444 257 444 257 444 257 444 257 638 590 638 590 638 590 638 590 873 549 873 549 873 549 873 549 768 516 768 516 768 516 768 516 -5.7%-5.7%-5.7%-5.7% -12.0%-12.0%-12.0%-12.0%

45

Consolidated statement of financial position of the PKO BP Group

AssetsAssetsAssetsAssets (PLN '000) (PLN '000) (PLN '000) (PLN '000) 30.09.1530.09.1530.09.1530.09.15 31.12.1531.12.1531.12.1531.12.15 31.03.1631.03.1631.03.1631.03.16 30.06.1630.06.1630.06.1630.06.16 30.09.1630.09.1630.09.1630.09.16ChangeChangeChangeChange

y/y y/y y/y y/yChangeChangeChangeChange

q/qq/qq/qq/q

Cash and balances with the Central Bank 8 181 397 13 743 864 15 857 607 12 153 184 14 345 681 +75.3% +18.0%

Amounts due from other banks 4 113 135 4 552 972 2 522 459 4 378 760 3 723 386 -9.5% -15.0%

Trading assets 2 526 087 783 199 2 308 701 2 876 053 1 634 681 -35.3% -43.2%

Derivative financial instruments 4 376 549 4 347 269 2 991 644 3 042 967 2 638 698 -39.7% -13.3%

Financial assets designated at fair value through P&L 14 592 585 15 154 100 13 100 195 13 788 284 15 163 093 +3.9% +10.0%

Loans and advances to customers 185 193 115 190 413 708 187 869 107 191 515 372 193 174 343 +4.3% +0.9%

Investment securities available for sale and securities held to maturity 26 560 447 28 519 845 32 003 671 33 985 717 34 353 323 +29.3% +1.1%

Tangible fixed assets 2 519 689 2 782 186 2 808 010 2 920 993 2 887 615 +14.6% -1.1%

Other assets 6 857 426 6 642 776 7 629 374 7 780 759 7 686 970 +12.1% -1.2%

TOTAL ASSETSTOTAL ASSETSTOTAL ASSETSTOTAL ASSETS 254 920 430 254 920 430 254 920 430 254 920 430 266 939 919 266 939 919 266 939 919 266 939 919 267 090 768 267 090 768 267 090 768 267 090 768 272 442 089 272 442 089 272 442 089 272 442 089 275 607 790 275 607 790 275 607 790 275 607 790 +8.1%+8.1%+8.1%+8.1% +1.2%+1.2%+1.2%+1.2%

Liabilities and eqiutyLiabilities and eqiutyLiabilities and eqiutyLiabilities and eqiuty (PLN '000) (PLN '000) (PLN '000) (PLN '000) 30.09.1530.09.1530.09.1530.09.15 31.12.1531.12.1531.12.1531.12.15 31.03.1631.03.1631.03.1631.03.16 30.06.1630.06.1630.06.1630.06.16 30.09.1630.09.1630.09.1630.09.16ChangeChangeChangeChange

y/y y/y y/y y/yChangeChangeChangeChange

q/qq/qq/qq/q

Amounts due to the central bank 4 541 4 219 3 989 4 935 4 269 -6.0% -13.5%

Amounts due to banks 20 332 686 18 288 797 20 246 622 18 429 253 19 168 026 -5.7% +4.0%

Derivative financial instruments 4 855 943 4 624 767 3 292 087 3 580 993 3 403 541 -29.9% -5.0%

Amounts due to customers 178 256 829 195 758 461 194 856 153 199 391 532 201 180 557 +12.9% +0.9%

Liabilities of insurance activities 2 386 315 2 400 493 2 428 876 2 409 586 2 567 646 +7.6% +6.6%

Debt securities in issue 14 114 895 9 432 973 9 218 641 10 806 669 10 419 749 -26.2% -3.6%

Subordinated liabilities 2 471 649 2 499 163 2 477 481 2 527 579 2 494 465 +0.9% -1.3%

Other liabilities 2 920 069 3 666 133 3 532 060 3 702 651 4 050 795 +38.7% +9.4%

Total equity 29 577 503 30 264 913 31 034 859 31 588 891 32 318 742 +9.3% +2.3%

TOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIES 254 920 430 254 920 430 254 920 430 254 920 430 266 939 919 266 939 919 266 939 919 266 939 919 267 090 768 267 090 768 267 090 768 267 090 768 272 442 089 272 442 089 272 442 089 272 442 089 275 607 790 275 607 790 275 607 790 275 607 790 +8.1%+8.1%+8.1%+8.1% +1.2%+1.2%+1.2%+1.2%

Shareholders structure (number of shares: 1 250 mn)

Basic information on shares• Listed: Warsaw Stock Exchange since 10.11.2004 r.• Indices: WIG, WIG20, WIG30, WIG Banki• ISIN: PLPKO0000016• Bloomberg: PKO PW• Reuters: PKOB WA

Rating

*) Share reported by ING OFE after exceeding the threshold 5% of total number of votes at GM of PKO Bank Polski by Nationale-Nederlanden OFE, former ING OFE (as at 24.07.12) and Aviva OFE (as at 29.01.13)**) Of which 1.96% BGK (State owned bank)

46

Shares, rating and dividend policy

State Treasury 29.43%

Aviva OFE*6.72%

Nationale-Nederalnden OFE*

5.17%

Others**58.68%

Rating:Agency:

Long-term Short-term

Deposits Liabilities Deposits Liabilities

Moody’s A2 with negative outlook

A3 with stable outlook P-1 (P)P-2

47

Principles of the dividend policy

Principles of the dividend policy adopted on 22 March 2016 • The general assumption of the Bank’s dividend policy is to maintain a stable level of dividend payments in the long term, in compliance with the principle of

prudent management of the Bank’s and the Bank’s Capital Group and with consideration of the financial capacity of the Bank and the Bank’s Capital Group as determined on the basis of the adopted criteria.

• The aim of the dividend policy is an optimization of the own funds of the Bank and the Bank’s Capital Group, taking into account the return on capital and its cost, capital needs for development, while ensuring an appropriate level of capital adequacy ratios.

• The dividend policy assumes the possibility of the Bank’s net profit distribution to shareholders in the long-term perspective in the amount of the surplus of capital above minimal capital adequacy ratios considering the additional capital buffer.

• The dividend policy takes into account factors related to the operations of the Bank and the Bank’s Capital Group companies, in particular, the requirements and supervisory recommendations concerning capital adequacy.

• The principles have been changed in connection with the issuance by the Polish Financial Supervision Authority on 15 December 2015 of the position on the dividend policy of banks in 2016 for the year 2015, recommending higher minimum levels of capital adequacy measures enabling the dividend payment and introducing a new condition for the dividend payment – the level of leverage.

• Therefore, in accordance with the Principles, the capital adequacy ratios specifying the dividend criteria are as follows: total capital ratio above 14.01% and common equity Tier 1 ratio above 13.82%, leverage ratio above 5%.

Payment from the net profit of the year

DPS (PLN)Dividend

yield (Div. Day)

Payout ratio

2014 0.00 x 0.00%

2013 0.75 1.9% 31.65%

2012 1.80 4.9% 61.12%

2011 1.27 3.9% 40.15%

2010 1.98 5.5% 74.75%

2009 1,90 4.2% 97.65%

2008 1.00 2.9% 34.71%

2007 1.09 2.2% 40.07%

2006 0,98 1.7% 47.87%

2005 0.80 2.1% 47.71%

2004 1.00 3.6% 66.18%

Conditional dividend for 2015According to the resolution of the Bank’s AGM of 30 June 2016, PLN 1,250,000 thousand will be allocated for the divided, which corresponds to PLN 1 gross per share. The profit will be allocated in this manner provided that the following conditions will be jointly met by 8 December 2016:1. The Bank does not take over control of a bank or another entity of the financial sector through the

direct or indirect acquisition of shares, acquire the right or incur an obligation to take over such control, and

2. there are no regulatory changes or changes in supervisory recommendations that would affect the requirements for the Bank's own funds, which - according to the level of capital adequacy ratios recognised the Bank’s financial statements for the third quarter of 2016 - would cause lack of possibility to pay the dividend in accordance with regulatory requirements and supervisory recommendations.

If the conditions for the payment of the dividend are met:• the record date shall be 30 September 2016• the dividend will be paid on 20 December 2016.On 2 November 2016, PKO Bank Polski, Raiffeisen Bank International AG and PKO Leasing have entered into a share purchase agreement related to a sale by RBI of 100% of the shares in Raiffeisen-Leasing Polska to PKO Leasing. The transaction results in one of the conditions precedents of dividend payment established by the resolution of PKO BP’s AGM held on June 30, 2016 not being fulfilled.According to the AGM resolution, Bank’s Management Board is obliged to adopt a formal resolution confirming lack of fulfilment of conditions required for dividend payment by December 9, 2016.

This presentation (the ”Presentation”) has been prepared by Powszechna Kasa Oszczędności Bank Polski S.A. (”PKO BP S.A.”, ”Bank”) solely for use by itsclients and shareholders or analysts and should not be treated as a part of any an invitation or offer to sell any securities, invest or deal in or a solicitationof an offer to purchase any securities or recommendation to conclude any transaction, in particular with respect to securities of PKO BP S.A. Theinformation contained in this Presentation is derived from publicly available sources which Bank believes are reliable, but PKO BP SA does not make anyrepresentation as to its accuracy or completeness. PKO BP SA shall not be liable for the consequences of any decision made based on informationincluded in this Presentation.

The information contained in this Presentation has not been independently verified and is, in any case, subject to changes and modifications. PKO BP SA’sdisclosure of the data included in this Presentation is not a breach of law for listed companies, in particular for companies listed on the Warsaw StockExchange. The information provided herein was included in current or periodic reports published by PKO BP SA or is additional information that is notrequired to be reported by Bank as a public company.

In no event may the content of this Presentation be construed as any type of explicit or implicit representation or warranty made by PKO BP SA or, itsrepresentatives. Likewise, neither PKO BP SA nor any of its representatives shall be liable in any respect whatsoever (whether in negligence or otherwise)for any loss or damage that may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection with thisPresentation.

PKO BP SA does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there beany change in the strategy or intentions of PKO BP SA, or should facts or events occur that affect PKO BP SA’s strategy or intentions, unless suchreporting obligations arises under the applicable laws and regulations.

This Presentation contains certain market information relating to the banking sector in Poland, including information on the market share of certain banksand PKO BP SA. Unless attributed exclusively to another source, such market information has been calculated based on data provided by third partysources identified herein and includes estimates, assessments, adjustments and judgments that are based on PKO BP SA’s experience and familiarity withthe sector in which PKO BP SA operates. Because such market information has been prepared in part based upon estimates, assessments, adjustmentsand judgments and not verified by an independent third party, such market information is, unless otherwise attributed to a third party source, to a certaindegree subjective. While it is believed that such estimates, assessments, adjustments and judgments are reasonable and that the market informationprepared is appropriately reflective of the sector and the markets in which PKO BP SA operates, there is no assurance that such estimates, assessmentsand judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sourceswill not differ materially from the market information included herein.

PKO BP SA hereby informs persons viewing this Presentation that the only source of reliable data describing PKO BP SA’s financial results, forecasts,events or indexes are current or periodic reports submitted by PKO BP SA in satisfaction of its disclosure obligation under Polish law.

This Presentation is not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan.

48

Disclaimer

Contact:Contact:Contact:Contact:PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office Lidia Wilk – DirectorPulawska 1502-515 WarsawPoland

Tel: +48 22 521 91 82Fax: +48 22 521 91 83E-mail: lidia.wilk@pkobp.plE-mail: ir@pkobp.pl

PKO Bank Polski websitePKO Bank Polski websitePKO Bank Polski websitePKO Bank Polski website: www.pkobp.pl

Investor’s calendar:Investor’s calendar:Investor’s calendar:Investor’s calendar:

6 March 2017 Publication of the 2016 Annual Report