27.08.2021: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 June 2021

To:

Financial Supervision Commission

Investment Activity Supervision Department

16 Budapest Str.

Sofia

Cc:

Bulgarian Stock Exchange - Sofia AD

6 Tri Ushi Str.

Sofia

Re: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 June 2021.

Dear Sirs,

In compliance with the requirements of the Public Offering of Securities Act (POSA) and the regulations for its implementation, in our capacity as public company and issuer of bonds admitted for trading at a regulated market, we hereby submit the consolidated (unaudited) financial statements of First Investment Bank AD as at 30 June 2021, containing:

1. Financial statements as at 30.06.2021 as per Art. 100о, para. 2 and para. 4(1) with relation to Art. 100o, para. 5 of POSA;
2. Notes to the financial statements as at 30.06.2021;
3. Interim activity report under Art. 100о, para. 4(2) and with relation to Art. 100о, para. 5 of POSA;
4. Declaration under Art. 100о, para. 4(3) and in connection with Art. 100о, para. 5 of POSA.

	Sincerely,
(signed)	(signed)
Nikola Bakalov	Svetozar Popov
Chief Executive Officer	Executive Director
Chairman of the MB	Member of the MB

FIRST INVESTMENT BANK AD

Consolidated statement of shareholders' equity for the six months ended 30/06/2021 unaudited

									in BGN '000
				Revaluation reserve on	Revaluation	Reserve from
	Issued share	Share	Other reserves and	investments in	reserve on	translation of foreign	Statutory	Non-controlling
	capital	premium	retained earnings	securities	property	operations	reserve	interest	Total
Balance at 01/01/2020	110,000	97,000	704,770	17,776	4,500	2,033	39,865	2,973	978,917
Total comprehensive income for the
period
Net profit for 2020	-	-	44,974	-	-	-	-	543	45,517
Other comprehensive income for the
period
Revaluation reserve on investments in
securities	-	-		658	-	-	-	-	658
Reserve from translation of foreign
operations	-	-	-	-	-	(774)	-	-	(774)
Increase of shareholders' equity
Increase of shareholders' equity by
newly issued shares	39,085	-	-	-	-	-	-	-	39,085
Premium reserve on newly issued
shares	-	156,339	-	-	-	-	-	-	156,339
Decrease of premium reserve related to
expenses for the issue of shares	-	(3,322)	-	-	-	-	-	-	(3,322)
Balance at 31/12/2020	149 085	250,017	749,744	18,434	4,500	1,259	39,865	3,516	1,216,420
Total comprehensive income for the
period
Net profit for the six months ended on
30/06/2021	-	-	33,048	-	-	-	-	591	33,639
Other comprehensive income for the
period
Revaluation reserve on investments in
securities	-	-	-	(2,627)	-	-	-	-	(2,627)
Reserve from translation of foreign
operations	-	-	-	-	-	460	-	-	460
Balance at 30/06/2021	149 085	250,017	782,792	15,807	4,500	1,719	39,865	4,107	1,247,892
NIKOLA BAKALOV		SVETOZAR POPOV			CHAVDAR ZLATEV
Chief Executive Officer		Executive Director			Executive Director
RALITSA BOGOEVA		Yanko Karakolev
Executive Director		Chief Financial Officer

FIRST INVESTMENT BANK AD
Consolidated statement of cash flows for the three months ended 30 June 2021
unaudited		in BGN '000
	Six months ended 30 June	Six months ended 30
	2021	June 2020
Net cash flow from operating activities
Net profit	33,639	26,612
Adjustment for non-cash items
Allowance for impairment	53,884	36,161
Net interest income	(128,922)	(122,375)
Depreciation and amortization	6,107	6,759
Tax expense	3,998	3,616
(Profit)/loss from sale and write-off of tangible and intangible
fixed assets, net	(9)	20
Loss/(Profit) from sale of other assets, net	60	(849)
(Positive) revaluation of investment property	-	(2,312)
Change in operating assets	(31,243)	(52,368)
(Increase) of financial assets at fair value through profit or loss	(942)	(546)
(Increase) of financial assets at fair value in other comprehensive
income	(217,480)	(65,018)
Decrease/(Increase) in loans and advances to banks and financial
institutions	1,635	(1,426)
(Increase) in loans to customers	(235,759)	(199,978)
Net (increase) in other liabilities	(28,422)	(7,577)
Change in operating liabilities	(480,968)	(274,545)
Increase/(decrease) in deposits from banks	21,021	(679)
Increase/(decrease) in amounts owed to other depositors	22,911	(181,847)
Net increase/(decrease) in other liabilities	5,328	(10,364)
Interest received	49,260	(192,890)
190,521	134,399
Interest paid	(39,338)	(32,166)
Dividends received	350	100
Paid profit tax, net	(1,938)	(761)
NET CASH FLOW FROM OPERATING ACTIVITIES	(313,356)	(418,231)
Cash flow from investing activities
(Purchase) of tangible and intangible fixed assets	(3,850)	(6,768)
Sale of tangible and intangible fixed assets	16	32
Sale of other assets	4,639	4,021
(Increase) of investments	(111,768)	(143,499)
NET CASH FLOW FROM INVESTING ACTIVITIES	(110,963)	(146,214)
Financing activities
Increase/(decrease) in borrowings	18,380	(3,792)
Increase in subordinated liabilities	76	5,672
Increase of shareholders' equity by newly issued shares	-	-
Increase of premium reserve related to the newly issued shares	-	-
NET CASH FLOW FROM FINANCING ACTIVITIES	18,456	1,880
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	(405,863)	(562,565)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD	2,202,771	2,114,013
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD	1,796,908	1,551,448

NIKOLA BAKALOV	SVETOZAR POPOV
Chief Executive Officer	Executive Director
RALITSA BOGOEVA	CHAVDAR ZLATEV
Executive Director	Executive Director
IANKO KARAKOLEV
Chief Financial Officer

FIRST INVESTMENT BANK AD
Consolidated statement of the financial position as at 30/06/2021
unaudited		in BGN '000
	30.06.2021	31.12.2020
ASSETS
Cash and balances with Central Banks	1,757,738	2,133,197
Investments in securities	1,624,219	1,292,641
Loans and advances to banks and other financial institutions	74,065	106,111
Loans and advances to customers	6,449,643	6,312,887
Property and equipment	75,451	77,026
Intangible assets	15,787	16,443
Derivatives held for risk management	3,877	5,110
Current tax assets	890	283
Repossessed assets	715,864	713,619
Investment Property	413,828	414,021
Right-of-use assets	157,407	154,080
Other assets	137,958	110,002
TOTAL ASSETS	11,426,727	11,335,420
LIABILITIES AND CAPITAL
Due to banks	23,744	2,747
Due to other customers	9,550,012	9,542,276
Liabilities evidenced by paper	121,866	103,649
Subordinated term debt	9,622	9,623
Hybrid debt	271,279	267,579
Derivatives held for risk management	0	410
Deferred tax liabilities	24,061	21,644
Current tax liabilities	450	12
Lease liabilities	157,759	154,481
Other liabilities	20,042	16,579
TOTAL LIABILITIES	10,178,835	10,119,000
Issued share capital	149,085	149,085
Share premium	250,017	250,017
Statutory reserve	39,865	39,865
Revaluation reserve on investments in securities	15,807	18,434
Revaluation reserve on property	4,500	4,500
Reserve from translation of foreign operations	1,719	1,259
Other reserves and retained earnings	782,792	749,744
TOTAL SHAREHOLDERS' EQUITY	1,243,785	1,212,904
Non-controlling interest	4,107	3,516
TOTAL GROUP EQUITY	1,247,892	1,216,420
TOTAL LIABILITIES AND GROUP EQUITY	11,426,727	11,335,420

NIKOLA BAKALOV	SVETOZAR POPOV
Chief Executive Officer	Executive Director
RALITSA BOGOEVA	CHAVDAR ZLATEV
Executive Director	Executive Director
IANKO KARAKOLEV
Chief Financial Officer

FIRST INVESTMENT BANK AD

Consolidated statement of profit or loss and of other comprehensive income for the six months ended 30 June 2021 unaudited

		in BGN '000
	Six months ended	Six months ended
	30.06.2021	30.06.2020
Interest income	156,569	154,748
Interest expense	(27,647)	(32,373)
Net interest income	128,922	122,375
Fee and commission income	66,730	56,823
Fee and commission expense	(12,181)	(10,521)
Net fee and commission income	54,549	46,302
Net trading income	7,276	6,083
Other net operating income	5,546	4,905
TOTAL INCOME FROM BANKING OPERATIONS
196,293	179,665
Administrative expenses	(94,851)	(101,216)
Allowance for impairment	(53,884)	(36,161)
Other (expenses ), net	(9,921)	(12,060)
PROFIT BEFORE TAX
37,637	30,228
Income tax expense	(3,998)	(3,616)

GROUP PROFIT AFTER TAX

Other comprehensive income for the period

Items which should or may be reclassified as profit or loss Exchange rate differences from translation of foreign operations Revaluation reserve on investments in securities

Total other comprehensive income

TOTAL COMPREHENSIVE INCOME

Net profit attributable to:

Ordinary equity holders

Non-controlling interest

Total comprehensive income attributable to:

Ordinary equity holders

Non-controlling interest

33,639	26,612
460	(1,025)
(2,627)	(3,088)
(2,167)	(4,113)
31,472	22,499
33,048	26,205
591	407
30,881	22,092
591	407

Basic and diluted earnings per share (BGN)	0.22	0.22
NIKOLA BAKALOV	SVETOZAR POPOV
Chief Executive Officer	Executive Director
CHAVDAR ZLATEV	RALITSA BOGOEVA
Executive Director	Executive Director

IANKO KARAKOLEV

Chief Financial Officer