7. Going concern

The financial statements have been prepared on the basis of the assumption that the Bank’s Group will continue as a going concern for a period of at least 12 months from the date of approval for publication by the Management Board, i.e from 9 March 2023. As at the date of signing of these financial statements, the Management Board of the Bank did not identify any facts or circumstances which would indicate any threats to the Group’s ability to continue in operation as a going concern for at least 12 months after the publication as a result of intended or forced discontinuing or significantly curtailing the existing operations of the Bank’s Group.

The Management Board of the Bank considered the impact of: current situation in Ukraine, legal risk of mortgage loans in convertible currencies and credit holidays introduced by the Act on social financing for business ventures and assistance to borrowers, and assessed that these factors do not give rise to material uncertainty as to the ability of the Group to continue as a going concern.

The external business conditions covering the macroeconomic environment (e.g. a gradual slowdown of the economy in relation to external shocks, inflation, interest rate increases), the situation on the financial markets, the state of the Polish banking and non-banking sector, the regulatory and legal environment, as well as the factors that will affect future financial results are described in detail in the Management Board Report on the operations of the PKO Bank Polski S.A. Capital Group (note 2 „External conditions of operations”).

Disclosures concerning: the situation in Ukraine are presented in the note „The impact of the geopolitical situation in Ukraine on the Capital Group of PKO Bank Polski S. A.„, the legal risk of mortgage loans in convertible currencies in the notes „Cost of legal risk of mortgage loans in convertible currencies” and „Subsequent events” and loan holidays in the note „Loans and advances to customers”.