Unaudited financial statements of

Zagrebačka banka Group

for the period from 1 January to 31 December 2022

Content:

  1. Management report for the period from 1 January to 31 December 2022
  1. Statement of the persons responsible for the preparation of the financial statements

III. Financial statements (TFI-KI statements)

  1. General data as at 31 December 2022
  2. Balance sheet as at 31 December 2022
  3. Income statement for the period from 1 January to 31 December 2022
  4. Cash flow statement for the period from 1 January to 31 December 2022
  5. Statement of changes in equity for the period from 31 December 2021 to 31 December 2022
  6. Notes to the financial statements
  1. Management report for the period from 1 January to 31 December 2022

Zagrebačka banka Group realised profit after tax of HRK 1,871 million in 2022. This is HRK 372 million (+24.8%) higher than in the same period in 2021.

Our operating income increased. Inflation pressure on costs was well managed. Capital and liquidity positions are strong, assets are covered with prudent loan provisions.

The purpose we declare as part of the UniCredit Group is to empower our communities to progress, to provide support to the economy and the society in which we operate. We are doing this by financing most loans in the market we operate, by investing in optimal user experiences as well as in the security of our solutions, by maintaining the robust payment infrastructure and offering the wide scale of services to companies and citizens.

Zagrebačka banka Group is resilient and reliable. Just recently we re-confirmed so at one of the most demanding projects, the conversion to euro in Croatia. We were the first amongst our peers to finish adjusting our systems and go live seamlessly, promptly enabling full availability of services to our clients.

We aim to integrate sustainability into our strategies and guide capital reallocation towards economic activities which generate a positive overall impact.

We are striving to be the best employer possible, by supporting our employees through work-life balance, health, family support and other important initiatives.

We invest in talents and grow our corporate culture based on values of integrity, ownership and caring.

Major contributors to Group result are Zagrebačka banka dd, UniCredit Bank dd Mostar and UniCredit Leasing Croatia doo.

Key performance indicators:

  • Operating income: HRK 5,264 million
  • Operating expenses: HRK 2,420 million
  • Profit before impairment and other provisions: HRK 2,727 million
  • Impairment and other provisions: HRK 504 million
  • Loans and advances to customers: HRK 88,917 million
  • Deposits from customers: HRK 143,591 million

2

  1. Management report for the period from 1 January to 31 December 2022 (continued)

Operating income amounted to HRK 5,264 million, increased by HRK 555 million (+11.8%) Y/Y:

  • Net interest income amounted to HRK 3,054 million, increased by HRK 235 million (+8.3%) Y/Y.
  • Net fee and commission income amounted to HRK 1,563 million, increased by HRK 192 million (+14.0%).
  • Net trading and other income and expenses amounted to HRK 647 million, increased by HRK 128 million (+24.6%) Y/Y, mainly higher trading result and other income.

Operating expenses - at HRK 2,420 million, higher by HRK 194 million (+8.7%). Cost to income ratio equals to 45.97%.

Profit before impairment and other provisions amounted to HRK 2,727 million, higher by HRK 406 million (+17.5%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions - at HRK 504 million, at the same level.

Total assets of the Group amounted to HRK 178,266 million, up by HRK 19.8 billion (+12.5%) BoY.

  • Net loans and advances to customers amounted to HRK 88,917 million, increased by HRK 7.2 billion (+8.9%) due to increase in corporate and retail lending.
  • Deposits from customers represent primary source of funding. They amounted to HRK 143,591 million, higher by HRK 16,187 million (+12.7%) BoY, in retail and corporate deposits.
  • Deposits from credit institutions at HRK 7,058 million, up by HRK 2.1 billion (+40.9%) BoY.

3

  1. Management report for the period from 1 January to 31 December 2022 (continued)
    Financial results for the period from 1 January to 31 December 2022

Zagrebačka banka Group

Δ 2022 vs 2021

Income statement (HRKm)

2022

2021

HRKm

%

1

2

3 (1-2)

4 (3/2)

Interest income

3,407

3,177

230

7.2 %

Interest expense

(353)

(358)

5

(1.4 %)

Net interest income

3,054

2,819

235

8.3 %

Fee and commission income

1,870

1,625

245

15.1 %

Fee and commission expense

(307)

(254)

(53)

20.9 %

Net fee and commission income

1,563

1,371

192

14.0 %

Net trading and other income and expenses

647

519

128

24.6 %

Operating income

5,264

4,709

555

11.8 %

Operating expenses

(2,420)

(2,226)

(194)

8.7 %

Cash contributions to resolution funds and

(117)

(162)

45

(27.8 %)

deposit guarantee schemes

Profit before impairment and other provisions

2,727

2,321

406

17.5 %

Impairment and other provisions

(504)

(505)

1

(0.2 %)

Profit from operations

2,223

1,816

407

22.4 %

Share of profit from associates

24

28

(4)

(14.3 %)

Profit from discontinued operations

22

-

22

100.0 %

Profit before tax

2,269

1,844

425

23.0 %

Income tax

(398)

(345)

(53)

15.4 %

Net profit

1,871

1,499

372

24.8 %

Attributable to equity holders of the Bank

1,869

1,496

373

24.8 %

Attributable to non-controlling interests

2

3

(1)

0.0 %

Net profit

1,871

1,499

372

24.8 %

4

  1. Management report for the period from 1 January to 31 December 2022 (continued)

Financial results for the period from 1 January to 31 December 2022 (continued)

Zagrebačka banka Group

Δ 2022 vs. 2021

Balance sheet (HRKm)

31 Dec 2022

31 Dec 2021

HRKm

%

1

2

3 (1-2)

4 (3/2)

Cash, cash balances at central banks and other

53,883

38,700

15,183

39.2 %

demand deposits

Obligatory reserve with the CNB

0

6,121

(6,121)

(100.0 %)

Financial assets held for trading

1,995

1,092

903

82.7 %

Non-trading financial assets mandatorily at fair

122

286

(164)

(57.3 %)

value through profit or loss

Financial assets at fair value through other

7,505

12,850

(5,345)

(41.6 %)

comprehensive income

Financial assets at amortised cost:

110,695

95,345

15,350

16.1 %

Debt securities

8,995

3,498

5,497

157.1 %

Loans and advances to credit institutions

12,783

10,178

2,605

25.6 %

Loans and advances to customers

88,917

81,669

7,248

8.9 %

Tangible and intangible assets

2,610

2,529

81

3.2 %

Investments in subsidiaries. joint ventures and

86

86

0

0.0 %

associates

Other assets

1,370

1,492

(122)

(8.2 %)

Total assets

178,266

158,501

19,765

12.5 %

Financial liabilities held for trading

1,952

867

1,085

125.1 %

Financial liabilities measured at amortised cost:

152,346

132,927

19,419

14.6 %

Debt securities issued

1,137

0

1,137

100.0 %

Deposits from credit institutions

7,058

5,009

2,049

40.9 %

Deposits from customers

143,591

127,404

16,187

12.7 %

Other financial liabilities

560

514

46

8.9 %

Provisions for risks and charges

1,794

1,481

313

21.1 %

Other liabilities

1,943

1,901

42

2.2 %

Total liabilities

158,035

137,176

20,859

15.2 %

Equity

20,231

21,325

(1,094)

(5.1 %)

Total equity and liabilities

178,266

158,501

19,765

12.5 %

Zagreb, 22 February 2023

Chairman of the Management Board

Ivan Vlaho

5

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Zagrebacka banka dd published this content on 22 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2023 08:06:09 UTC.