Unaudited financial statements of

Zagrebačka banka dd

for the period from 1 January to 30 June 2023

Content:

  1. Management report for the period from 1 January to 30 June 2023
  1. Statement of the persons responsible for the preparation of the financial statements

III. Financial statements (TFI-KI statements)

  1. General data as at 30 June 2023
  2. Balance sheet as at 30 June 2023
  3. Income statement for the period from 1 January to 30 June 2023
  4. Cash flow statement for the period from 1 January to 30 June 2023
  5. Statement of changes in equity for the period from 31 December 2022 to 30 June 2023
  6. Notes to the financial statements
  1. Management report for the period from 1 January to 30 June 2023

Zagrebačka banka dd realised profit after tax of EUR 217 million in the first half of 2023. This is EUR 96 million (79.3%) higher than in H1 2022.

Our operating income increased, cost management is disciplined. Capital and liquidity positions are strong, assets are covered with prudent loan provisions.

Zagrebačka banka dd is resilient and reliable. We are strongly connected with our community, providing support to the economy and the society in which we operate. We are doing this by financing most loans in the market, 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.

We are transforming our organization, culture, and ways of working to assure sustainability and guide capital reallocation towards economic activities which generate a positive overall impact, considering also the Environmental, Social and Governance (ESG) aspects.

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

Key performance indicators:

  • Operating income: EUR 360 million
  • Operating expenses: EUR 117 million
  • Profit before impairment and other provisions: EUR 243 million
  • Impairment and other provisions: EUR 19 million
  • Loans and advances to customers: EUR 9,893 million
  • Deposits from customers: EUR 15,978 million

2

  1. Management report for the period from 1 January to 30 June 2023 (continued)

Operating income amounted to EUR 360 million, increased by EUR 86 million (+31.4%) Y/Y:

  • Net interest income amounted to EUR 259 million, increased by EUR 116 million (+81.1%) Y/Y.
  • Net fee and commission income amounted to EUR 79 million, at the same level Y/Y.
  • Net trading and other income and expenses amounted to HRK 22 million, decreased by HRK 31 million (-58.5%)Y/Y, mainly due to lower dividend income and trading result.

Operating expenses at EUR 117 million, higher by EUR 10 million (+9.3%). Cost to income ratio equals to 32.5%.

Profit before impairment and other provisions amounted to EUR 243 million, higher by EUR 82 million (+50.9%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions write-back amounted to EUR 19 million, changed by EUR 36 million.

Total assets of the Bank amounted to EUR 19,497 million, lower by EUR 470 million (-2.4%) BoY.

  • Net loans and advances to customers amounted to EUR 9,893 million, increased by EUR 264 million (+2.7%) due to increase in corporate and retail lending.
  • Deposits from customers represent primary source of funding. They amounted to EUR 15,978 million, lower by EUR 258 million (-1.6%) BoY, mainly in corporate deposits.
  • Deposits from credit institutions at EUR 297 million, down by EUR 187 million (-38.7%) BoY.

3

  1. Management report for the period from 1 January to 30 June 2023 (continued)
    Financial results for the period from 1 January to 30 June 2023

Zagrebačka banka dd

Δ 2Q 2023 vs 2Q 2022

Income statement (EURm)

2Q 2023

2Q 2022

EUR m

%

1

2

3 (1-2)

4 (3/2)

Interest income

298

160

138

86.3 %

Interest expense

(39)

(17)

(22)

(129.4 %)

Net interest income

259

143

116

81.1 %

Fee and commission income

96

93

3

3.2 %

Fee and commission expense

(17)

(15)

(2)

(13.3 %)

Net fee and commission income

79

78

1

1.3 %

Net trading and other income and

22

53

(31)

(58.5 %)

expenses

Operating income

360

274

86

31.4 %

Operating expenses

(117)

(107)

(10)

(9.3 %)

Cash contributions to resolution funds

-

(6)

6

100.0 %

and deposit guarantee schemes

Profit before impairment and other

243

161

82

50.9 %

provisions

Impairment and other provisions

19

(17)

36

211.8 %

Profit before tax

262

144

118

81.9 %

Income tax

(45)

(23)

(22)

(95.7 %)

Net profit

217

121

96

79.3 %

4

  1. Management report for the period from 1 January to 30 June 2023 (continued)

Financial results for the period from 1 January to 30 June 2023 (continued)

Zagrebačka banka dd

Δ 2023 vs. 2022

Balance sheet (EURm)

30 Jun 2023

31 Dec 2022

EURm

%

1

2

3 (1-2)

4 (3/2)

Cash, cash balances at central

6,225

6,662

(437)

(6.6 %)

banks and other demand deposits

Financial assets held for trading

200

259

(59)

(23.9 %)

Non-trading financial assets

mandatorily at fair value through

19

16

3

17.3 %

profit or loss

Financial assets at fair value

through other comprehensive

787

648

139

21.5 %

income

Financial assets at amortised cost:

11,756

11,882

(126)

(1.1 %)

Debt securities

1,352

1,163

189

16.3 %

Loans and advances to credit

511

1,091

(580)

(53.2 %)

institutions

Loans and advances to

9,893

9,629

264

2.7 %

customers

Tangible and intangible assets

178

179

(1)

(0.3 %)

Investments in subsidiaries, joint

199

196

3

1.4 %

ventures and associates

Other assets

133

125

8

(6.2 %)

Total assets

19,497

19,967

(470)

(2.4 %)

Financial liabilities held for trading

197

259

(62)

(24.0 %)

Financial liabilities measured at

16,821

16,930

(109)

(0.6 %)

amortised cost:

Debt securities issued

151

151

-

-

Deposits from credit institutions

297

484

(187)

(38.7 %)

Deposits from customers

15,978

16,236

(258)

(1.6 %)

Other financial liabilities

395

59

336

570.3 %

Provisions for risks and charges

221

213

8

3.6 %

Other liabilities

193

178

15

8.2 %

Total liabilities

17,432

17,581

(149)

(0.8 %)

Equity

2,065

2,386

(321)

(13.5 %)

Total equity and liabilities

19,497

19,967

(470)

(2.4 %)

Rating

30 June 2023

Fitch Ratings Ltd.

Long Term Issuer Default Rating

BBB

Short Term Rating

F2

Viability

bb+

Shareholder Support

bbb

Outlook

Stable

Zagreb, 25 July 2023

5

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Zagrebacka banka dd published this content on 25 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2023 12:20:44 UTC.