11.08.2023.: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 June 2023

To:

Financial Supervision Commission

Investment Activity Supervision Department

16 Budapest Str.

Sofia

Cc:

Bulgarian Stock Exchange - Sofia AD

6 Tri Ushi Str.

Sofia

Cc:

The public via x3news

11 August 2023

Re: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 June 2023

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 2023, containing:

1. Financial statements as at 30.06.2023 as per Art. 100о, para. 4(1) and with relation to Art. 100о¹, para. 7 of POSA;
2. Notes to the financial statements as at 30.06.2023;
3. Interim activity report under Art. 100о, para. 4(2) and with relation to Art. 100о¹, para. 7 of POSA;
4. Declaration under Art. 100о, para. 4(3) and with relation to Art. 100о¹, para. 7 of POSA;

	Sincerely,
(signed)	(signed)
Nikola Bakalov	Chavdar Zlatev
Chief Executive Officer	Executive Director
MB Chairperson	Member of the MB

FIRST INVESTMENT BANK AD

Consolidated statement of the financial position as at 30/06/2023

unaudited		in BGN '000
	30.6.2023	31.12.2022
ASSETS
Cash and balances with Central Banks	1 505 040	2 042 858
Investments in securities	3 427 639	2 819 193
Loans and advances to banks and other financial institutions	195 038	221 900
Loans and advances to customers	7 159 584	6 823 003
Property and equipment	105 989	108 376
Intangible assets	24 821	16 611
Derivatives held for risk management	1 831	1 609
Current tax assets	0	0
Deferred tax assets	3 525	3 948
Repossessed assets	428 899	423 585
Investment Property	754 385	750 324
Rights of use assets	183 456	171 638
Other assets	144 002	115 937
TOTAL ASSETS
13 934 209	13 498 982
LIABILITIES AND CAPITAL
Due to banks	17 105	13 152
Due to other customers	11 713 588	11 454 906
Liabilities evidenced by paper	167 132	123 846
Financial liabilities at fair value through profit or loss	4 524	8 488
Subordinated term debt	19 409	19 410
Hybrid debt	266 079	256 861
Derivatives held for risk management	0	0
Deferred tax liabilities	28 020	27 823
Current tax liabilities	7 105	645
Lease liabilities	182 288	171 217
Other liabilities	32 667	23 012
TOTAL LIABILITIES
12 437 917	12 099 360
Issued share capital	149 085	149 085
Share premium	250 017	250 017
Statutory reserve	39 865	39 865
Revaluation reserve of investments in securities	(12 491)	(18 047)
Revaluation reserve on property	4 500	4 500
Reserve from translation of foreign operations	12 579	6 368
Other reserves and retained earnings	1 047 260	962 805
TOTAL SHAREHOLDERS' EQUITY
1 490 815	1 394 593
Non-controlling interest	5 477	5 029
TOTAL GROUP EQUITY	1 496 292	1 399 622
TOTAL LIABILITIES AND GROUP EQUITY	13 934 209	13 498 982

(signed)	(signed)
Nikola Bakalov	Chavdar Zlatev
Chief Executive Officer	Executive Director
(signed)
Yanko Karakolev
Chief Financial Officer

FIRST INVESTMENT BANK AD

Consolidated statement of profit or loss and of other comprehensive income for the six monts ended 30/06/2023 unaudited

		in BGN '000
	Six months ended	Six months ended
	30/06/2023	30/06/2022
Interest income	212 361	161 728
Interest expense	(20 739)	(23 509)
Net interest income	191 622	138 219
Fee and commission income	93 966	86 281
Fee and commission expense	(21 854)	(18 014)
Net fee and commission income	72 112	68 267
Net trading income	11 029	8 919
Other net operating income	4 753	7 071
TOTAL INCOME FROM BANKING OPERATIONS
279 516	222 476
Administrative expenses	(116 377)	(110 822)
Other expenses, net	(4 448)	(14 295)
Profit before impairment	158 691	97 359
Allowance for impairment
(61 179)	(55 916)
PROFIT BEFORE TAX	97 512	41 443
Income tax expense
(10 636)	(4 646)

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 of 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

86 876	36 797
6 211	903
5 556	(20 528)
11 767	(19 625)
98 643	17 172
86 428	36 454
448	343
98 195	16 829
448	343

Basic and diluted earnings per share (BGN)	0,58	0,24

(signed)	(signed)
Nikola Bakalov	Chavdar Zlatev
Chief Executive Officer	Executive Director
(signed)
Yanko Karakolev
Chief Financial Officer

FIRST INVESTMENT BANK AD

Consolidated statement of shareholders' equity for the six months ended 30/06/2023 unaudited

in BGN '000

Balance at 01/01/2022

Total comprehensive income for the period Net profit for the year ended 31 December 2022

Other comprehensive income for the period

			Revaluation		Reserve from
		Other reserves	reserve of		translation of
Issued share	Share	and retained	investments in	Revaluation reserve	foreign	Statutory	Non-controlling
capital	premium	earnings	securities	on property	operations	reserve	interest	Total
149 085	250 017	860 339	9 115	4 500	2 592	39 865	4 329	1 319 842
-	-	97 241	-	-	-	-	749	97 990

Revaluation reserve of investments in securities	-		-			(27 162)	-	-	-	-	(27 162)
Reserve from translation of foreign operations	-		-	-		-	-	3 776	-	-	3 776
Effect of consolidation of significant subsidiary	-		-	1 096		-	-	-	-	-	1 096
Effect from de consolidation of subsidiaries	-		-	4 129		-	-	-	-	(49)	4 080
Balance as at 31/12/2022	149 085	250 017		962 805		(18 047)	4 500	6 368	39 865	5 029	1 399 622
Total comprehensive income for the period
Net profit for the six months ended on 30/06/2023	-		-	86 428		-	-	-	-	448	86 876
Other comprehensive income for the period
Revaluation reserve of investments in securities	-		-		-	5 556	-	-	-	-	5 556
Reserve from translation of foreign operations	-		-		-	-	-	6 211			6 211
Dividend paid by subsidiary	-		-	(1 973)		-	-	-	-	-	(1 973)
Balance as at 30/06/2023	149 085	250 017		1 047 260		(12 491)	4 500	12 579	39 865	5 477	1 496 292
	(signed)					(signed)
	Nikola Bakalov					Chavdar Zlatev
	Chief Executive Officer					Executive Director

(signed)

Yanko Karakolev

Chief Financial Officer

FIRST INVESTMENT BANK AD

Consolidated statement of cash flows for the six months ended 30 June 2023

unaudited		in BGN '000
	Six months ended	Six months ended
	30 June 2023	30/06/2022
Net cash flow from operating activities	86 876	36 797
Net profit
Adjustment for non-cash items	61 179	55 915
Allowance for impairment
Net interest income	(191 622)	(138 218)
Depreciation and amortization	6 814	6 473
Tax expense	10 636	4 645
Loss/(profit) from sale and write-off of tangible and intangible fixed assets, net	54	(5)
Profit/(Loss) from sale of other assets, net	(2 093)	1 990
(Positive) revaluation of investment property	-	-
Change in operating assets	(28 156)	(32 403)
(2 418)	(4 180)
(Increase) in financial assets at fair value through profit or loss
(Increase)/decrease in financial assets at fair value in other comprehensive income	(409 593)	325 448
Decrease in loans and advances to banks and financial institutions	10 718	5 880
(Increase) in loans to customers	(469 591)	(11 257)
Net (increase) in other liabilities	(32 982)	(100 358)
Change in operating liabilities	(903 866)	215 533
4 242	(5 670)
Increase/(decrease) in deposits from banks
Increase in amounts owed to other depositors	257 400	509 246
Net increase in other liabilities	13 632	67 772
Interest received	275 274	571 348
267 462	166 237
Interest paid	(9 664)	(16 504)
Dividends received	2 215	91
Paid profit tax, net	(4 577)	(2 774)
NET CASH FLOW FROM OPERATING ACTIVITIES	(401 312)	901 528
Cash flow from investing activities	(12 251)	(13 333)
(Purchase) of tangible and intangible fixed assets
Sale of tangible and intangible fixed assets	98	18
Sale of other assets	2 341	22 298
(Increase) of investments	(186 004)	(290 860)
NET CASH FLOW FROM INVESTING ACTIVITIES	(195 816)	(281 877)
Financing activities	42 459	(18 339)
Increase/(decrease) in borrowings
Increase in subordinated liabilities	532	1 477
Capital increase through newly issued shares	-	-
Increase of share premium reserve of newly issued shares	-	-
NET CASH FLOW FROM FINANCING ACTIVITIES	42 991	(16 862)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(554 137)	602 789
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD	2 226 780	2 017 645
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD	1 672 643	2 620 434
(signed)	(signed)
Nikola Bakalov	Chavdar Zlatev
Chief Executive Officer	Executive Director

(signed)

Yanko Karakolev

Chief Financial Officer