30.06.2021: Disclosure of Information by First Investment Bank AD pursuant to Regulation (EU) No. 575/2013

Translation from Bulgarian!

	To:
	Financial Supervision Commission
	Investment Activity Supervision Department
	16 Budapest Str.
	Sofia
	CC:
	Bulgarian Stock Exchange - Sofia Ad
	6 Tri Ushi Str.
	Sofia
	30 June 2021
Re:	Disclosure of Information by First Investment Bank AD pursuant to Regulation (EU)
	No. 575/2013

Dear Sirs,

Please find attached Disclosure of Information by First Investment Bank AD pursuant to Regulation (EU) No. 575/2013 for 2020 on consolidated basis.

This disclosure of information was prepared in compliance with the requirements of Part Eight of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The information is disclosed as a supplement to the consolidated annual report and the consolidated annual financial statements of First Investment Bank AD at 31.12.2020.

(signed)	(signed)
Nikola Bakalov	Svetozar Popov
Chief Executive Officer	Executive Director

DISCLOSURE OF INFORMATION

pursuant to Regulation (EU) No. 575/2013

(consolidated data)

FIRST INVESTMENT BANK AD for 2020

June 2021

DISCLOSURE OF INFORMATION in compliance with Regulation (EU) No. 575/2013

This disclosure of information was prepared in compliance with the requirements of Part Eight ofRegulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The information is disclosed as a supplement to the consolidated annual report and the consolidated annual financial statements of First Investment Bank AD at 31.12.2020.

FIRST INVESTMENT BANK AD

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DISCLOSURE OF INFORMATION in compliance with Regulation (EU) No. 575/2013

CONTENTS
RISK MANAGEMENT POLICY AND FRAMEWORK............................................................................	4
CAPITAL BUFFERS .......................................................................................................................	27
UNENCUMBERED ASSETS............................................................................................................	28
LEVERAGE ..................................................................................................................................	28
OWN FUNDS REQUIREMENTS .....................................................................................................	31
CREDIT RISK ...............................................................................................................................	34
COUNTERPARTY CREDIT RISK ............................................................................................................	36
TECHNIQUES FOR REDUCING CREDIT RISK........................................................................................	37
RATING AGENCIES .............................................................................................................................	38
DISCLOSURE OF INFORMATION RELATING TO COUNTRY REPORTING...........................................	38
NON-TRADING ACTIVITIES ..........................................................................................................	38
REFERENCES...............................................................................................................................	39

FIRST INVESTMENT BANK AD

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DISCLOSURE OF INFORMATION in compliance with Regulation (EU) No. 575/2013

RISK MANAGEMENT POLICY AND FRAMEWORK

1. First Investment Bank has established, maintains and develops a risk management system which ensures the identification, assessment and management of risks inherent to its activity. The main objective in managing the overall risk profile of the Bank is to achieve a balance between risk, return and capital.

First Investment Bank assumes risks while ensuring the required level of equity capital and an effective management process. The Bank maintains financial resources that are commensurate with the volume and type of operations performed, with its risk profile and the internal control systems and mechanisms for risk management.

First Investment Bank AD determines an overall maximum level of risk by different types of risk. The Bank determines its risk propensity and risk tolerance levels so that they correspond to its strategic objectives and stable functioning.

In measuring risks First Investment Bank AD applies the Standardised Approach; for internal purposes it also applies internal rating models, internal VAR models, as well as scenario analyses and stress-tests.

1. Reconciliation of balance sheet positions used for calculating own funds and those used for calculating the required own funds:

Balance-sheet positions	Accounting	Amount used for	Position in
calculating the required
scope	Annex VI
	own funds
Assets
Financial assets designated at fair value through profit or loss	1,095,293	-1,026	17
Intangible assets	16,018	-16,018	8, 41а
Loans and advances	6,358,334	164,202
Own funds and liabilities	9,930,632	263,842
Financial liabilities assessed at amortised cost	267,579	254,258
of which: instruments eligible for DC1	9,623	9,584	32
of which: instruments eligible for T2			56
Equity	149,085	149,085	1
Premium reserve	250,017	250,017	1
Revaluation reserve on available for sale investments	18,434	18,434	3, 26а, 41в
Revaluation reserve on land and buildings	4,500	4,500	3, 26б, 56в
Reserve from translation of foreign operations	1,259	1,259	3
Retained earnings	747,672	703,526	3
Statutory reserve	39,861	39,861	3
Non-controlling interest	-	-	5

* All amounts are in thousands of BGN.

FIRST INVESTMENT BANK AD

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