MKB Bank : Minutes of the Extraordinary General Meeting of MKB Bank Plc. held on 15 December 2021

M K B B a n k Public Limited Company

10 011 922 641 911 401 Statistical ID number

Individual

mid-year

Balance Sheet

compiled on the basis of

the International Financial Reporting Standards approved by the EU (IFRS)

31 August 2021

Done in Budapest, on the 15th of November 2021

Important notice

"Hungarian language is the official and registered language of MKB Bank Plc's ("the Issuer") disclosures pursuant to the relevant legal and stock-exchange rules. The present English translation has been prepared on a voluntary basis, with the best care and intention of the Issuer to inform English speaking investors, however, in the event of any controversy between the Hungarian and English version, the authentic Hungarian version shall prevail."

Deloitte

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of MKB Bank Plc.

Opinion

Deloitte Könyvvizsgáló és Tanácsadó Kft.

1068 Budapest Dózsa Gyorgy út 84/C.

Postal address: 1438 Budapest, P.O. box 471

Phone: [phone]

Fax: [phone]www.deloitte.hu

Registered by:

Court of Registration of the Budapest-Capital Regional Court

Cg.: 01 09-071057

We have performed the audit of MKB Bank Nyrt. (the "Company") as at 31 August 2021, with total assets of HUF 3,093,566 million and profit after tax of HUF 43,762 million.

In our opinion, the accompanying interim financial statements have been prepared, in all material respects, in accordance with Act C of 2000 on Accounting (the "Accounting Act") of Hungary.

Basis for the Opinion

We conducted our audit in accordance with the Hungarian National Standards on Auditing and the effective Hungarian laws and other regulations on audits. For a more detailed description of our responsibilities under these standards, see the section of our report entitled "The Auditor's Responsibility for the Audit of the Interim Financial Statements".

We are independent of the Company in accordance with the relevant legislation in force in Hungary and the Hungarian Chamber of Auditors' Code of Conduct (Ethics) and Disciplinary Procedure for the Audit Profession, and, for matters not covered by these rules, the International Ethical Standards Board for Accountants' Handbook on the International Code of Ethics for Chamber Auditors (incorporating international independence standards) (the IESBA Code), and comply with the other ethical requirements in the same standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Issues raised

Please note the remark on the significant events after the balance sheet date of MKB Bank Nyrt. as at 31 August 2021 in Annex II, which shows the excess of impairment losses and adjustment losses related to the moratorium on loan repayments due to legislation that became known after the balance sheet date, charges for interest deductions and refunds on current account and credit card products, and the estimated impact of the expected loss due to the unification of accounting policies after 31 August 2021, quantified but not yet recognised in the interim balance sheet. Our opinion is not qualified on this issue.

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Other issues: the basis of the preparation of the interim balance sheet and its purpose

The accompanying interim balance sheet has been prepared solely for the purpose of providing the basis for the report on the transformation of the Company in accordance with the provisions of Section 114/A of the Accounting Act. Therefore, a review of the interim balance sheet is not a substitute for reading the audited financial statements of the Company as at 31 December 2020 and the accounting policies set out in the notes thereto and applied in the preparation of the interim balance sheet. The intermediate balance sheet was prepared for the purpose mentioned above, but not for the purpose of monitoring the assets and financial position of MKB Bank Nyrt. as at 31 August 2021, and its financial position for the period ending on that date in accordance with the fair presentation requirement.

Other issues: limitation of use

Our report has been prepared for the sole purpose of informing and serving the owners of the Company and may not be used for any other purpose or by anyone else, and any other use or disclosure of the report is subject to our prior written consent.

Liability of management and the individuals responsible for management for the interim balance sheet

The management is responsible for the preparation of the interim balance sheet in accordance with Section 114/A of the Accounting Act, and for internal controls that the management considers necessary to enable the preparation of an interim financial statement that is free from material misstatement, whether due to fraud or error.

In preparing the interim financial statements, the management is responsible for assessing the business association's ability to continue as a going concern and for preparing the interim financial statements on a going concern basis. The management should take the principle of going concern as a basis, unless the enforcement of this principle is hindered by any provision to the contrary, or if any factor or circumstance prevails, which contradicts the continuation of entrepreneurial activities.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

The auditor's responsibility for the audit of the interim balance sheet

During our audit we aim to gain sufficient assurance that the interim financial statements do not contain any erroneous statement arising from fraud or an error, and to issue an independent audit report containing our opinion based on our audit. Sufficient assurance is a high degree of certainty, but is not a guarantee that an audit conducted in compliance with the Hungarian National Audit Standards and other effective laws and regulations applicable to the audit and effective in Hungary always detects existing material erroneous statements. Misstatements can arise from fraud or error, and they are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this interim financial statements.

As part of an audit in accordance with the Hungarian National Standards on Auditing and the effective Hungarian laws and other regulations on audits, we exercise professional judgment and maintain professional scepticism throughout the audit.

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Furthermore:

• We identify and estimate the risks of material erroneous statements in the interim financial statements arising either from fraud or an error, develop and execute audit procedures suitable for managing those risks and obtain sufficient audit evidence for our opinion. The risk of non- detection of a material erroneous statement arising from fraud is greater than the same arising from an error, because fraud may include concerted action, counterfeiting, erroneous omissions, wrong declarations, or overruled internal controls.
• We study the internal control, relevant in terms of the audit, in order to be able to design audit procedures that are adequate under the given conditions, but not in order to form an opinion on the efficiency of the internal control of the Company.
• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• We draw a conclusion on whether or not the compilation of the interim financial statements, based on the principle of going concern by the management is appropriate and, on the basis of the obtained audit evidence, on whether there is any significant uncertainty in relation to events or conditions that may raise serious doubt in terms of the ability of the Company to continue its business. If we conclude that there is a great deal of uncertainty, in our independent audit report, we must draw attention to the related disclosures, or we must qualify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
  However, future events or conditions may cause the Company to cease to continue as a going concern.
• We evaluate the overall presentation, structure and content of the interim financial statements, and whether the interim financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

In addition to other issues, we communicate to the individuals in charge of control, the envisaged scope and schedule of the audit, the material findings of our audit, also including the material inadequacies of internal controls applied by the Company, identified by us during the audit, if applicable.

Budapest, 15 November 2021

Bálint Józan

Deloitte Kónyvvizsgáló és Tanácsadó Kft. 1068 Budapest Dózsa Gyorgy út 84/C. Registration number: 000083

. . .... ........................................................

Zoltán Mádi-Szabó, Chamber member, auditor, Membership no.: 003247

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MKB Bank Nyrt.	Unless shown otherwise, the data are shown in HUF million
Annex to the Individual Mid-Year Balance Sgeet of 31 August 2021

MKB Bank PLC.

Individual comparison table of equity capital regarding the period ending 31 August 2021

2021. augusztus 31. 2020.december 31.

Assets
Financial assets	290 409	294 183
Receivables from credit institutions	58 979	83 558
Derivative financial assets	34 519	23 262
Securities	1 396 613	1 174 027
Receivables from clients	1 199 828	1 106 242
Invested assets held for subsequent sale and terminated activities	1	504
Other assets	19 114	15 149
Actual tax receivables	-	1 418
Deferred tax receivables	6 087	6 707
Investments in subsidiaries, joint enterprises and companies under common control	48 818	48 373
Intangible assets and tangible assets	39 198	39 213
Total assets	3 093 566	2 792 636
Liabilities
Liabilities to credit institutions	681 847	574 825
Current accounts and deposit accounts	2 059 455	1 877 454
Derivative financial liabilities	16 510	35 406
Other liabilities and provisions	57 338	54 910
Actual tax obligations	1 315	-
Bonds issued	2 517	2 343
Subordinated liabilities	41 939	44 724
Total liabilities	2 860 921	2 589 662
Capital
Subscribed capital	100 000	100 000
Capital reserves	132 645	102 974
Total capital	232 645	202 974
Capital and liabilities, total	3 093 566	2 792 636

Budapest, 15 November 2021

dr. Zsolt Barna	Ildikó Ginzer
Chairman & CEO	Deputy CEO

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