Zagrebacka banka d d : Zagrebačka banka Group unaudited financial results 3Q 2022

Unaudited financial statements of

Zagrebačka banka Group

for the period from 1 January to 30 September 2022

Content:

1. Management report for the period from 1 January to 30 September 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 30 September 2022
2. Balance sheet as at 30 September 2022
3. Income statement for the period from 1 January to 30 September 2022
4. Cash flow statement for the period from 1 January to 30 September 2022
5. Statement of changes in equity for the period from 31 December 2021 to 30 September 2022
6. Notes to the financial statements

1. Management report for the period from 1 January to 30 September 2022

Zagrebačka banka Group realised profit after tax of HRK 1,826 million in the first nine months of 2022. This is HRK 547 million (+42.8%) higher than in the same period in 2021.

The Group's exposures were not significantly directly impacted by the situation in the Ukraine. Our operations remain affected indirectly, by the overall negative consequences and economy trends.

Still, our operating income increased. Our capital and liquidity positions remained strong, with assets covered with prudent loan provisions.

Well-being of our employees and clients remains our priority as well as the support to the society and the environment in which we operate.

We empower our communities to progress even in the disruption periods. We are striving to provide best solutions for our clients, approaching them individually to tailor the offering.

We are introducing new ways to provide services - by identifying opportunities in technology trends, embedding digital and data, putting clients at the centre of everything we do.

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 our talents, grow our corporate culture based on 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 3,916 million
• Operating expenses: HRK 1,727 million
• Profit before impairment and other provisions: HRK 2,106 million
• Impairment and other provisions: HRK 42 million
• Loans and advances to customers: HRK 88,719 million
• Deposits from customers: HRK 135,062 million

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1. Management report for the period from 1 January to 30 September 2022 (continued)

Operating income amounted to HRK 3,916 million, increased by HRK 329 million (+9.2%) Y/Y:

• Net interest income amounted to HRK 2,177 million, slightly increased by HRK 46 million (+2.2%) Y/Y.
• Net fee and commission income amounted to HRK 1,212 million, increased by HRK 163 million (+15.5%).
• Net trading and other income and expenses amounted to HRK 527 million, increased by HRK 120 million (+29.5%) Y/Y, mainly due to higher trading result.

Operating expenses - at HRK 1,727 million, at the same level. Cost to income ratio equals to 44.10%.

Profit before impairment and other provisions amounted to HRK 2,106 million, higher by HRK 297 million (+16.4%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions - at HRK 42 million, changed by HRK 339 million.

Total assets of the Group amounted to HRK 169,886 million, up by HRK 11.4 billion (+7.2%) BoY.

• Net loans and advances to customers amounted to HRK 88,719 million, increased by HRK 7.1 billion (+8.6%) due to increase in corporate and retail lending.

• Deposits from customers 135,062 million, higher by deposits.

represent primary source of funding. They amounted to HRK HRK 7,658 million (+6.0%) BoY, in retail and corporate

• Deposits from credit institutions at HRK 7,749 million, up by HRK 2.7 billion (+54.7%) BoY.

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1. Management report for the period from 1 January to 30 September 2022 (continued)
   Financial results for the period from 1 January to 30 September 2022

Zagrebačka banka Group					3Q 2022 vs 3Q 2021
Income statement (HRKm)	3Q 2022		3Q 2021		HRKm		%
	1		2		3 (1-2)		4 (3/2)
Interest income	2,455		2,404	51		2.1 %
Interest expense	(278)		(273)		(5)		1.8 %
Net interest income	2,177		2,131	46		2.2 %
Fee and commission income	1,440		1,236	204		16.5 %
Fee and commission expense	(228)		(187)		(41)		21.9 %
Net fee and commission income	1,212		1,049	163		15.5 %
Net trading and other income and expenses	527		407		120		29.5 %
Operating income	3,916		3,587	329		9.2 %
Operating expenses	(1,727)		(1,669)		(58)		3.5 %
Cash contributions to resolution funds and	(83)		(109)		26		(23.9 %)
deposit guarantee schemes
Profit before impairment and other provisions	2,106		1,809	297		16.4 %
Impairment and other provisions	42		(297)		339		(114.1 %)
Profit from operations	2,148		1,512	636		42.1 %
Share of profit from associates	22		24		(2)		(8.3 %)
Profit from discontinued operations	22		-	22		100.0 %
Profit before tax	2,192		1,536	656		42.7 %
Income tax	(366)		(257)		(109)		42.4 %
Net profit	1,826		1,279	547		42.8 %
Attributable to equity holders of the Bank	1,824		1,277	547		42.8 %
Attributable to non-controlling interests	2		2		0		100.0 %
Net profit	1,826		1,279	547		42.8 %

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1. Management report for the period from 1 January to 30 September 2022 (continued)

Financial results for the period from 1 January to 30 September 2022 (continued)

	Zagrebačka banka Group					2022 vs. 2021
	Balance sheet (HRKm)	30 Sep 2022		31 Dec 2021		HRKm		%
		1		2		3 (1-2)		4 (3/2)
	Cash, cash balances at central banks and other	35,634		38,700		(3,066)		(7.9 %)
	demand deposits
	Obligatory reserve with the CNB	3,622		6,121		(2,499)		(40.8 %)
	Financial assets held for trading	3,011		1,092		1,919		175.7 %
	Non-trading financial assets mandatorily at fair	291		286		5	1.7 %
	value through profit or loss
	Financial assets at fair value through other	8,736		12,850		(4,114)		(32.0 %)
	comprehensive income
	Financial assets at amortised cost:	114,664		95,345		19,319		20.3 %
	Debt securities	8,012		3,498		4,514		129.0 %
	Loans and advances to credit institutions	17,933		10,178		7,755		76.2 %
	Loans and advances to customers	88,719		81,669		7,050		8.6 %
	Tangible and intangible assets	2,630		2,529		101		4.0 %
	Investments in subsidiaries. joint ventures and	93		86		7	8.1 %
	associates
	Other assets	1,205		1,492		(287)		(19.2 %)
	Total assets	169,886		158,501		11,385		7.2 %
	Financial liabilities held for trading	2,860		867		1,993		229.9 %
	Financial liabilities measured at amortised cost:	143,385		132,927		10,458		7.9 %
	Deposits from credit institutions	7,749		5,009		2,740		54.7 %
	Deposits from customers	135,062		127,404		7,658		6.0 %
	Other financial liabilities	574		514		60		11.7 %
	Provisions for risks and charges	1,545		1,481		64		4.3 %
	Other liabilities	1,988		1,901		87		4.6 %
	Total liabilities	149,778		137,176		12,602		9.2 %
	Equity	20,108		21,325		(1,217)		(5.7 %)
	Total equity and liabilities	169,886		158,501		11,385		7.2 %

Zagreb, 24 October 2022

Chairman of the Management Board

Ivan Vlaho

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