Audited financial statements of

Zagrebačka banka dd

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 (GFI-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

In 2022 Zagrebačka banka dd realised profit after tax of HRK 1,791 million. This is HRK 217 million (-10.8%)lower than 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 dd 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.

Key performance indicators:

  • Operating income: HRK 4,433 million
  • Operating expenses: HRK 1,752 million
  • Profit before impairment and other provisions: HRK 2,614 million
  • Impairment and other provisions: HRK 492 million
  • Loans and advances to customers: HRK 72,545 million
  • Deposits from customers: HRK 122,333 million

2

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

Operating income amounted to HRK 4,433 million, increased by HRK 26 million (+0.6%) Y/Y:

  • Net interest income amounted to HRK 2,358 million, increased by HRK 183 million (+8.4%) Y/Y.
  • Net fee and commission income amounted to HRK 1,216 million, increased by HRK 170 million (+16.3%).
  • Net trading and other income and expenses amounted to HRK 859 million, decreased by HRK 327 million (-27.6%)Y/Y, mainly due to lower dividend income.

Operating expenses - at HRK 1,752 million, higher by HRK 181 million (+11.5%). Cost to income ratio equals to 39.52%.

Profit before impairment and other provisions amounted to HRK 2,614 million, lower by HRK 108 million (-4%)Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions - at HRK 492 million, changed by HRK 60 million.

Total assets of the Bank amounted to HRK 150,443 million, up by HRK 18 billion (+13.6%) BoY.

  • Net loans and advances to customers amounted to HRK 72,545 million, increased by HRK 5.2 billion (+7.8%) due to increase in corporate and retail lending.
  • Deposits from customers represent primary source of funding. They amounted to HRK 122,333 million, higher by HRK 15.1 billion (+14.1%) BoY, in retail and corporate deposits.
  • Deposits from credit institutions at HRK 3,648 million, up by HRK 1,045 million (+50.7%) 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 dd

Δ 2022 vs 2021

Income statement (HRKm)

2022

2021

HRKm

%

1

2

3 (1-2)

4 (3/2)

Interest income

2,627

2,432

195

8.0 %

Interest expense

(269)

(257)

(12)

4.7 %

Net interest income

2,358

2,175

183

8.4 %

Fee and commission income

1,503

1,280

223

17.4 %

Fee and commission expense

(287)

(234)

(53)

22.6 %

Net fee and commission income

1,216

1,046

170

16.3 %

Net trading and other income and

859

1,186

(327)

(27.6 %)

expenses

Operating income

4,433

4,407

26

0.6 %

Operating expenses

(1,752)

(1,571)

(181)

11.5 %

Cash contributions to resolution funds

(67)

(114)

47

(41.2 %)

and deposit guarantee schemes

Profit before impairment and other

2,614

2,722

(108)

(4 %)

provisions

Impairment and other provisions

(492)

(432)

(60)

13.9 %

Profit before tax

2,122

2,290

(168)

(7.3 %)

Income tax

(331)

(282)

(49)

17.4 %

Net profit

1,791

2,008

(217)

(10.8 %)

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 dd

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

50,192

35,636

14,556

40.8 %

banks and other demand deposits

Obligatory reserve with the CNB

-

6,121

(6,121)

(100 %)

Financial assets held for trading

1,951

1,088

863

79.3 %

Non-trading financial assets

mandatorily at fair value through

122

284

(162)

(57.0 %)

profit or loss

Financial assets at fair value

through other comprehensive

4,882

9,824

(4,942)

(50.3 %)

income

Financial assets at amortised cost:

89,528

75,922

13,606

17.9 %

Debt securities

8,763

3,498

5,265

150.5 %

Loans and advances to credit

8,220

5,103

3,117

61.1 %

institutions

Loans and advances to

72,545

67,321

5,224

7.8 %

customers

Tangible and intangible assets

1,346

1,360

(14)

(1.0 %)

Investments in subsidiaries, joint

1,479

1,513

(34)

(2.2 %)

ventures and associates

Other assets

943

697

246

35.3 %

Total assets

150,443

132,445

17,998

13.6 %

Financial liabilities held for trading

1,952

867

1,085

125.1 %

Financial liabilities measured at

126,425

110,270

16,155

14.65 %

amortised cost:

Deposits from credit institutions

3,648

2,603

1,045

40.1 %

Deposits from customers

122,333

107,225

15,108

14.1 %

Other financial liabilities

444

442

2

0.5 %

Provisions for risks and charges

1,607

1,347

260

19.3 %

Other liabilities

1,344

935

409

43.7 %

Total liabilities

132,465

113,419

19,046

16.8 %

Equity

17,978

19,026

(1,048)

(5.5 %)

Total equity and liabilities

150,443

132,445

17,998

13.6 %

Rating

31 December 2022

Fitch Ratings Ltd.

Long Term Issuer Default Rating

BBB

Short Term Rating

F2

Viability

bb+

Support

WD

Shareholder Support

bbb

Outlook

Stable

Zagreb, 28 February 2023

Chairman of the Management Board

Ivan Vlaho

5

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Zagrebacka banka dd published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 07:34:09 UTC.