Table OF CONTENTS

Selected separate financial data

Separate statement of profit or loss

Separate statement of other comprehensive income

Separate statement of financial position

SEPARATE STATEMENT OF CHANGES IN EQUITY

Separate statement of cash flows

EXPLANATORY NOTES TO THE SEPARATE FINANCIAL STATEMENTS

1. GENERAL INFORMATION ABOUT THE BANK

2. ACCOUNTING PRINCIPLES APPLIED FOR THE PURPOSE OF PREPARATION OF THE SEPARATE FINANCIAL STATEMENTS

2.1. Basis for preparation of the separate financial statements

2.2. Going concern

2.3. Statement of compliance with IFRS

2.4. Recognition of transactions under common control

2.5. Business combinations

2.6. Changes in presentation of financial data

2.7. Measurement of items denominated in foreign currencies

2.8. Interest income and expenses

2.9. Net fee and commission income

2.10. Dividend income

2.11. Net trading income

2.12. Result on investment activities

2.13. Other operating income and expenses

2.14. Income tax expense

2.15. Classification and measurement of financial assets and liabilities

2.16. Fixed assets held for sale

2.17. Investment properties

2.18. Intangible assets

2.19. Property, plant and equipment

2.20. Hedge accounting

2.21. Provisions

2.22. Leases

2.23. Financial guarantees

2.24. Employee benefits

2.25. Capital

2.26. Custody operations

2.27. Cash and cash equivalents

3. Estimates

4. Net interest income

5. Net fee and commission income

6. Dividend income

7. Net trading income

8. Result on investment activities

9. Net impairment allowances on financial assets and provision on contingent liabilities

10. General administrative costs

11. Personnel expenses

12. Depreciation and amortization

13. Other operating income

14. Other operating expenses

15. Income tax expense

16. Earnings per share

17. Cash and cash balances at Central Bank

18. Amounts due from other banks

19. Derivative financial instruments

20. Hedge accounting

21. Loans and advances to customers measured at amortised cost

22. Loans and advances to customers measured at fair value through profit or loss

23. Securities measured at amortised cost

24. Securities measured at fair value through profit or loss

25. Securities measured at fair value through other comprehensive income

26. Investments in subsidiaries

27. Intangible assets

28. Property, plant and equipment

29. Leases

30. Other assets

31. Amounts due to Central Bank

32. Amounts due to other banks

33. Amounts due to customers

34. Subordinated liabilities

35. Other liabilities

36. Provisions

37. Deferred income tax

38. Discontinued operations

39. Share-based payments

40. Contingent liabilities

41. Collaterals

42. Fair value of financial assets and liabilities

43. Loan portfolio sale

44. Securitization

45. Custody operations

46. The shareholder’s structure of BNP Paribas BANK POLSKA S.A.

47. Supplementary capital and other capitals

48. Dividends paid

49. Distribution of retained earnings

50. Cash and cash equivalents

51. Additional information regarding the statement of cash flows

52. Related party transactions

53. Operating segments

54. LITIGATION AND CLAIMS

55. Financial risk management

55.1. Financial instrument strategy

55.2. Credit risk

55.3. Counterparty risk

55.4. Market risk (interest rate risk in the trading book and currency risk)

55.5. Interest rate risk in the banking portfolio (ALM Treasury)

55.6. Liquidity risk

55.7. Operational risk

56. Capital adequacy management

57. Major events in bnp PARIBAS BANK POLSKA S.A. in 2020

58. Subsequent events

Selected separate financial data

For purposes of data conversion into EUR, the following exchange rates are used by the Bank:

For items of the statement of financial position, rates of the National Bank of Poland are applied:

- as at 31.12.2020 r. - 1 EUR = 4.6148 PLN

- as at 31.12.2019 r. - 1 EUR = 4.2585 PLN

For items of the statement of profit or loss and the statement of cash flows, the EUR exchange rate is calculated as the arithmetic mean of the rates published by the National Bank of Poland as at the last day of each month in the period

- for the period from 1.01.2020 to 31.12.2020 - 1 EUR = 4.4742 PLN

- for the period from 1.01.2019 to 31.12.2019 - 1 EUR = 4.3018 PLN

Calculation of earnings (loss) per share was described in Note 16.

Separate statement of profit or loss

Separate statement of other comprehensive income

Separate statement of financial position

SEPARATE STATEMENT OF CHANGES IN EQUITY

* the management stock option programme is described in detail in Note 39

Separate statement of cash flows

EXPLANATORY NOTES TO THE SEPARATE FINANCIAL STATEMENTS

1. GENERAL INFORMATION ABOUT THE BANK

BNP Paribas Bank Polska S.A. (the “Bank” or “BNP Paribas”) is the parent company in the Capital Group of BNP Paribas Bank Polska S.A. (the “Group”).

The registered office of the Bank is located at Kasprzaka 2, 01-211 Warsaw, Poland. The Bank is registered in Poland, by the District Court for the capital city of Warsaw, 12th Commercial Division of the National Court Register, under number KRS 0000011571. The duration of the Bank is unlimited.

Since 27 May 2011, pursuant to the decision of the Management Board of Warsaw Stock Exchange (WSE), the Bank's shares have been listed on WSE and classified as finance - banking sector.

As at 31 December 2020, the headcount of the Bank amounted to 8,844.90 FTEs, as compared to 9,898.66 FTEs as at 31 December 2019.

BNP Paribas is a universal commercial bank offering a wide range of banking services provided to individual and institutional clients in accordance with the scope of services specified in the Bank's Statute. The Bank operates both in Polish zlotys and in foreign currencies and actively participates in trading on domestic and foreign financial markets. In addition, through its subsidiaries, the Bank conducts brokerage and leasing activities and provides other financial services.

The Bank operates mainly in Poland.

Composition of the Bank’s Management Board as at 31 December 2020:

Changes in the Bank’s Management Board in the period between 1 January and 31 December 2020:

• On 12 October 2020, Mr. Jaromir Pelczarski submitted a resignation from the position of the Vice-President of the Management Board of the Bank, with the effect from 31 December 2020.

• On 12 October 2020, the Supervisory Board appointed Mrs. Magdalena Nowicka as the Vice-President of the Bank's Management Board, with the effect from 1 January 2021 until the end of the current joint term of office of the Bank's Management Board members.

Composition of the Bank’s Supervisory Board as at 31 December 2020:

Changes in the Bank’s Management Board in the period between 1 January and 31 December 2020:

• On 19 March 2020, Mr Michel Falvert submitted a resignation from the position of the Member of the Supervisory Board of the Bank, with the effect from 19 March 2020.

• On 29 June 2020, the Ordinary Meeting of the Bank appointed Mr Vincent Metz as a Member of the Supervisory Board until the end of the current five-year joint term of office of the Supervisory Board members.

• On 29 June 2020, the Ordinary Meeting of the Bank appointed Mrs Lucyna Stańczak-Wuczyńska as a Member of the Supervisory Board, with the effect from 1 December 2020 until the end of the current five-year joint term of office of the Supervisory Board members.

• On 29 June 2020, Mrs Monika Nachyła submitted a resignation from the position of the Member of the Supervisory Board of the Bank, with the effect from 30 November 2020.

Approval of the financial statements

The present separate financial statements have been prepared as at 31 December 2020 and approved for publication by the Management Board of the Bank on 26 February 2021.

Consolidated financial statements of BNP Paribas Bank Polska S.A. Capital Group have been prepared as at 31 December 2020 and approved for publication by the Management Board of the Bank on 26 February 2021.

Data included in the above mentioned financial statements are presented for the financial year ended 31 December 2020 with comparative data for the financial year ended 31 December 2019.

2. ACCOUNTING PRINCIPLES APPLIED FOR THE PURPOSE OF PREPARATION OF THE SEPARATE FINANCIAL STATEMENTS

2.1. Basis for preparation of the separate financial statements

The present separate financial statements have been prepared on the historical cost basis, with the exception of derivative contracts and financial instruments held for trading, financial assets not meeting the SPPI test, financial assets assigned to the business model, which does not entail holding them to obtain contractual cash flows, equity instruments measured at fair value through profit or loss, and except for financial instruments measured at fair value through other comprehensive income and equity instruments for which the fair value option has been applied for other comprehensive income.

2.2. Going concern

The present separate financial statements have been prepared assuming that the Bank will continue as a going concern in substantially the same scope, in the foreseeable future, i.e. within at least 12 months from the date of the reporting period end.

2.3. Statement of compliance with IFRS

The present separate financial statements have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (“IFRS EU”).

The present separate financial statements have been prepared in accordance with the requirements specified in International Accounting Standards (“IAS”) and International Financial Reporting Standards endorsed by the European Union (“IFRS EU”), as well as the related interpretations, except for the standards and interpretations listed below, which are awaiting endorsement by the European Union or have already been endorsed by the European Union but entered or will enter into force after the end of the reporting period.

In the period included in these separate financial statements, the Bank did not early apply standards and interpretations endorsed by the EU, which will enter into force after the balance sheet date.

New standards, interpretations and amendments to these standards that have already been issued by the International Accounting Standards Board (IASB) but not yet approved by the European Union

• IFRS 17 Insurance Contracts , amendments to IFRS 17, was published on 18 May 2017 with amendments issued on 25 June 2020 and planned effective date on 1 January 2023. IFRS 17 Insurance Contracts will replace IFRS 4 Insurance contracts, which allows insurance contracts to continue to be accounted for in accordance with the accounting principles in national standards and which, as a result, implies multiple different solutions. IFRS 17 requires consistent recognition of all insurance contracts. Liabilities arising from contracts will be recognised at present values instead of historical cost. The standard adoption is set to be conducted based on a full retrospective approach (if the entity would be unable to comply with full retrospective approach, an entity should use the modified retrospective approach or the fair value approach).

The amendments are intended to:

- reduce costs by simplifying requirements of the standard;

- simplify the financial results explanation; and

- ease the transition to the new standard by deferring the effective date of the standard to 2023 and introducing additional relief to ease the first-time adoption of IFRS 17.

• Amendments to IAS 1 Presentation of Financial Statements - classification of liabilities, was published on 23 January 2020 and on 15 July 2020 the effective date was postponed to 1 January 2023. The amendments relate to the presentation of liabilities in the statement of financial position. In particular, they provide clarification that the classification of liabilities as current or non-current should be based on the rights existing at the end of the reporting period. A prospective approach will apply to the amendments.

• Amendments to IFRS 3 Business combinations published on 14 May 2020 and are effective for annual periods beginning on or after 1 January 2022. The amendments update the reference in IFRS 3 to the Conceptual framework for financial reporting without changing the accounting requirements for business combinations.

• Amendments to IAS 16 Property, plant and equipment, published on 14 May 2020 and are effective for annual periods beginning on or after 1 January 2022. The amendments prohibit a company from deducting from the cost of acquisition or development of property, plant and equipment amounts received from the sale of items produced in preparation for the asset's intended use. Instead, the company should recognise income from the sales and the corresponding expenses in the income statement.

• Amendments to IAS 37 Provisions, contingent liabilities and contingent assets, published on 14 May 2020 and are effective for annual periods beginning on or after 1 January 2022. They specify which costs an entity should take into account in assessment whether a contract will result in a loss.

New standards, interpretations and amendments to the existing standards, that have already been issued by the International Accounting Standards Board (IASB) and approved by the European Union, but have not been effective yet and have not been implemented by the Bank

• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 15 - IBOR reform - Phase II, published on 27 August 2020 and effective for annual periods beginning on 1 January 2021. The regulations published under Phase II of the IBOR reform relate to:

- contractual cash flow modifications - the addition of a solution to IFRS 9 that will enable the recognition of contractual cash flow modifications due to the IBOR reform by updating the effective interest rate of the contract to reflect the transition to an alternative reference rate (there will be no requirement to derecognise or adjust the carrying amount of financial instruments); a similar solution applies to IFRS 16 for lessees' recognition of lease modifications;

- hedge accounting - there will be no need to discontinue hedge accounting due to the changes required by the reform if the hedge meets the other criteria for hedge accounting; and

- disclosures - entities will be required to disclose information about new risks arising from the reform and entity’s management of the transition to alternative reference rates.

• Amendments to IFRS 4 Insurance contracts - deferral of IFRS 9, published on 25 June 2020 and are effective for annual periods beginning on or after 1 January 2021. The amendments provide two optional arrangements to reduce the impact of different effective dates for IFRS 9 and IFRS 17.

New standards, interpretations and amendments to the existing standards, that have been issued by the International Accounting Standards Board (IASB), approved by the European Union and are effective and have been implemented by the Bank

• Amendments to IFRS 9, IAS 39 and IFRS 17 - IBOR reform, published on 26 September 2019 and are effective for annual periods beginning on or after 1 January 2020. The amendments provide temporary and specific exceptions from the hedge accounting requirements in IAS 39 and IFRS 9, which will allow companies to continue to comply with the existing requirements, assuming that existing benchmark interest rates do not change following the IBOR reform.

• Amendments to IFRS 16 Leases - COVID-19-related rent concessions, published on 28 May 2020 and are effective for annual periods beginning on or after 1 June 2020. The amendments provide for the option for lessees not to treat rent reductions as lease modifications if they are directly related to COVID-19 and meet certain conditions.

• Amendments to IFRS 3 Business combinations, published on 22 October 2018 and are effective for annual periods beginning on or after 1 January 2020. The amendments to IFRS 3 specify and clarify the definition of a business. They also allow for a simplified assessment whether a group of assets and activities constitutes an asset group rather than a business. A prospective approach will apply to the amendments.

• Amendments to IAS 1 and IAS 8 - Definition of term 'material', published on 31 October 2018 and are effective for annual periods beginning on or after 1 January 2020. The amendments to IAS 1 and IAS 8 unify and clarify the definition of term 'material' and provide guidance to improve consistency in the application of the concept across International Financial Reporting Standards.

• Amendments to references to conceptual assumptions in IFRS, published on 29 March 2018 and are effective for annual periods beginning on or after 1 January 2020. The purpose of the amendments is to replace references to previous assumptions existing in a number of standards and interpretations with references to revised conceptual assumptions.

The above mentioned standards and amendments to existing standards, in the Bank's opinion, will not have a material impact on its annual separate financial statements as at 31 December 2020.

2.4. Recognition of transactions under common control

Business combinations under common control do not fall within the scope of IFRS regulations. In the absence of detailed IFRS regulations in this regard, in line with the guidelines specified in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, BNP Paribas Bank Polska S.A. adopted an accounting policy generally applied to any business combinations under common control within the Bank’s Group, whereby such transactions are recognised at their book value.

In accordance with the adopted accounting principles, the acquirer recognises the assets, liabilities and equity of the acquiree at their present book value adjusted only for purposes of harmonizing the accounting principles of the acquiree with those of the acquirer. Goodwill and negative goodwill are not recognised.

The difference between the book value of the acquired net assets and the fair value of the payment is recognised in the Bank’s equity. A method based on book values is used, and therefore the comparative data are not restated.

If the business combination under common control involves acquisition of minority interests, the Bank recognises them separately.

2.5. Business combinations

For the need of settling business combinations in which the Bank acts as the acquirer, the acquisition method is applied, in accordance with the requirements of IFRS 3 "Business combinations".

For each business combination, the acquiring entity and the acquisition date are determined, and the acquisition date is the date on which the entity acquired control over the acquired entity. In addition, the application of the acquisition method requires the recognition and measurement of identifiable assets and liabilities acquired, and any non-controlling interest in the acquired entity, as well as the recognition and measurement of goodwill or bargain purchase gain. The acquiring entity measures the identifiable assets and liabilities acquired at their fair values as at the acquisition date.

If the net amount of the fair values of identifiable acquired assets and liabilities exceeds the fair value of the consideration transferred, the Bank, as the acquiring entity, recognises the gain from the bargain purchase in the profit or loss. Before recognising the gain from a bargain purchase, the Bank reassess whether all acquired assets and liabilities have been correctly identified and all additional assets and liabilities have been included.

If the value of the consideration transferred, measured at fair value as at the acquisition date, exceeds the net value of fair values of identifiable acquired assets and liabilities as at the acquisition date, the goodwill is recognised. The established goodwill is not subject to amortization, but at the end of each financial year and, whenever there are indications that impairment may have occurred, it is tested in terms of their impairment.

In accordance with the requirements of IFRS 3, the Bank performs a final settlement of the acquisition within a maximum of one year from the date of taking control.

2.6. Changes in presentation of financial data

Compared to the separate financial statements for the year ended 31.12.2019, the Bank changed the presentation of:

• the provision for legal risk related to foreign currency loans by transferring the costs of creating a provision from the item Other operating expenses to the item Result on provisions for legal risk related to foreign currency loans.

• the provision for unpaid commissions by transferring the particular items of commission income "from lending and leasing activities", "from account servicing", "from intermediation in the sale of insurance products" and "other commissions" to the item commission expense "other commissions"

The Bank considers the presentation changes presented above to better reflect the economic nature of the above items and therefore provide more useful information to the recipients of the financial statements.

2.7. Measurement of items denominated in foreign currencies

Functional and presentation currency

Items included in the financial statements are measured in the currency of the primary economic environment in which the Bank operates ("functional currency"). The separate financial statements are presented in PLN thousands, which is the functional currency of the Bank and the presentation currency of the Bank's financial statements.

Transactions and balances

Transactions expressed in foreign currencies are translated into the functional currency at the exchange rate applicable as at the transaction date.

At the end of the reporting period, monetary assets and liabilities expressed in currencies other than Polish zloty are translated into Polish zlotys using the average exchange rate for a given currency determined by the National Bank of Poland in force at the end of the reporting period. Foreign exchange differences resulting from the translation are recognised as a net trading income or in cases specified in the accounting principles (policy), capitalized in the value of assets. Non-monetary assets and liabilities recognised at historical cost expressed in a foreign currency are disclosed at the historical exchange rate as at the transaction date. Non-monetary assets and liabilities recognised at fair value expressed in a foreign currency are translated at the exchange rate effective at the date of fair value measurement.

Basic currency rates used in the preparation of the present financial statements as at 31 December 2020 and 31 December 2019 are presented in the below table:

2.8. Interest income and expenses

The profit or loss statement includes all interest income on financial instruments measured at amortised cost using the effective interest rate, financial assets measured at fair value through other comprehensive income but also income with its characteristics similar to interest income on financial assets and liabilities measured at fair value through profit or loss.

The effective interest rate is the rate used to estimate future payments or incomes throughout the expected life of financial assets or financial liabilities, discounted to the gross balance sheet value of a financial asset or to the amortised cost of a financial liability. The calculation of the effective interest rate includes all commissions paid and received by the parties, transaction costs and any other premiums and discounts that are an integral part of the effective interest rate.