Patria Bank : Group_Financial Statements 31 December 2023_EN

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Prepared in accordance with International Financial Reporting Standards as adopted by the European Union

CONTENTS

INDEPENDENT AUDITOR'S REPORT

Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income 4

Consolidated and Separate Statement of Financial Position 6

Consolidated and Separate Statement of Changes in Equity 7

Consolidated and Separate Statement of Cash Flows 11

Notes to the consolidated and separate Financial Statements

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
LOSS	94
11.	NET GAIN/(LOSS) FROM DISPOSAL OF INVESTMENT SECURITIES AT FAIR VALUE
THROUGH OTHER COMPREHENSIVE INCOME	94
12.	OTHER OPERATING INCOME	95
13.	IMPAIRMENT LOSSES ON FINANCIAL ASSETS	96
14.	PERSONNEL EXPENSES	96
15.	ADMINISTRATIVE AND OTHER OPERATING EXPENSES	97
16.	INCOME TAX	97
17.	CASH AND CASH EQUIVALENTS	102
18.	FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS	105
19.	FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME	106
20.	DUE FROM BANKS	109
21.	LOANS AND ADVANCES TO CUSTOMERS	110
22.	INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST	129
23.	INVESTMENT PROPERTY	130
24.	NON-CURRENT ASSETS HELD FOR SALE	131
25.	INVESTMENTS IN SUBSIDIARIES	132
26.	OTHER FINANCIAL ASSETS	132
27.	OTHER ASSETS	136
28.	INTANGIBLE ASSETS	136
29.	PROPERTY AND EQUIPMENT	138
30.	DUE TO BANKS	140
31.	CUSTOMER DEPOSITS	140
32.	LOANS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS	141
33.	OTHER FINANCIAL LIABILITIES	145
34.	PROVISIONS	145
35.	OTHER LIABILITIES	147
36.	SUBORDINATED LIABILITIES	147
37.	DEBT SECURITIES IN ISSUE	148
38.	SHARE CAPITAL	149
39.	EARNINGS PER SHARE	150
40.	SEGMENT REPORTING	151
41.	RESERVES	151
42.	NET DEBT RECONCILIATION	154

NET FEE AND COMMISSION INCOME 93 NET GAIN/(LOSS) FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR

REPORTING ENTITY 12

BASIS OF PREPARATION 13

SIGNIFICANT ACCOUNTING POLICIES 17

FINANCIAL RISK MANAGEMENT 39

USE OF ESTIMATES AND JUDGMENTS 70

FAIR VALUE DISCLOSURES 78

PRESENTATION OF FINANCIAL INSTRUMENTS BY MEASUREMENT CATEGORY 86

NET INTEREST INCOME 92

43.	COMMITMENTS AND CONTINGENCIES	154
44.	RELATED PARTY TRANSACTIONS	159
45.	LEASES	163
46.	CORRECTION OF ERRORS	166
47.	SUBSEQUENT EVENTS	169

Thousand RON

Interest and similar income calculated using the effective interest rate

Interest and similar expense Net interest income

Fee and commission income Fee and commission expense

Net fee and commission income

Net gain/(loss) from financial assets at fair value through profit or loss

Net gain/(loss) from disposal of investment securities at fair value through other comprehensiveincome

Net gain/(loss) on derecognition of financial asstes measured at amortised cost

Net gain/(loss) from investment properties

Net gain/(loss) on non-current assetsheld for sale Other operatingincome

Net operating income

Personnel expenses

Administrative and other operating expenses Depreciation and amortization

Operational result before impairment

Impairment losses on financial assets

Operational profit

Profit before tax

Income tax expense for the year Net profit for the period

Pa ge 4 of 169

GroupRestated*Note

31 December 2023

31 December 2022

31 December 2023

Bank

31 December 2022

(170,885) 144,586

8 8 8

(100,408)

148,757

9 9 9

41,090 (6,509) 34,581

37,773 (5,674) 32,099

23 24 12

61 8,884

262 (147)

25,786 24,709

218,388

208,869

14 15 28,29

(82,246) (77,585)

(53,704) (52,853)

(21,327) (20,231)

13

(27,063) (34,855)

34,048 23,345

34,048 23,345

16

275,760 (156,159)

217,519 (89,761)

119,601 127,758

39,153 36,170

(5,388) 33,765

(4,475) 31,695

6,701 7,427

(2,611)

-(1,453) (1,565)

61 8,884

262 (147)

31,023 30,281

197,387

194,295

(73,022) (70,202)

(48,924) (49,388)

(20,479) (19,075)

54,962

55,630

(24,818) (32,490)

30,144 23,140

30,144 23,140

(6,990) 23,154

(2,893) 20,247

Thousand RON

Net profit for the period Other comprehensive income

Items that may be reclassified to profit or loss:

Net gain on debt instrumentsmeasured at FVOCI, transferred to profit or loss

Gain/(loss) from fair valuemeasurementof debtinstruments measured at FVOCI

Variation of expected credit loss related to debt instruments measured at FVOCI

Income tax recorded directly in other comprehensive income

Items that will not be reclassified to profit or loss: Changes in revaluation reserve of property and equipment Income tax recorded directly in other comprehensive income, related to the changes of revaluation reserve

Gain on equity investments measured at FVOCI

Income tax recorded directly in other comprehensive income, related to investments measured at FVOCI

Other comprehensive income, net of tax Comprehensive income

Profit attributable to:

-Equity holders of the parent entity -Non-controlling interests

Profit for the period

Comprehensive income attributable to: -Equity holders of the parent entity -Non-controlling interests Comprehensive income

Earnings per share (basic and diluted)

GroupRestated*

31 December 2023 25,485

31 December 2022

(5,689)

- - 957 (153)

25,485 - 25,485

56,156 - 56,156 0.0078

- (8,686) 0.0059

* The comparative information is restated on account of correction of errors. See note 46.

5,440 - 5,440

Bank

31 December 2023 23,154

(7,427)

42,543 (39,880)

440 (128)

(5,689) 6,401

(857) - (857)

957 1,314

(153) (210)

30,671 (27,920)

53,825 (7,673)

19,234 - 19,234

23,154 - 23,154

53,825 - 53,825 0.0071

The consolidated and separate financial statements were approved by the Board of Directors on the 21nd of March 2024 and were signed on its behalf by:Valentin Vancea General Manager

Pa ge 5 of 169

Georgiana Stanciulescu DeputyGeneral Manager

31 December 2022 20,247

-20,247 - 20,247

(7,673)

- (7,673) 0.0062

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

(All amounts are in thousand RON)

Thousand RON

Assets

Cash and cash equivalents

Financial assets at fair value through profit or loss

Financial asset measured at fair value through other comprehensive income

Due from banks

Loans and advances to customers Investments in debt instruments at amortized cost

Investment property Non-current assets held for sale Investment in subsidiaries Other financial assets Other assets Deferred tax assets Intangible assets Property and equipment Total assets

Note

Group Restated* 31 December 2022

17 18 19 20

Bank 31

31

December 2023

December 2022

• 500,336 537,692 596,803

• 39,161 19,008

• 676,316 545,720

• 5,834 18,726 17,693

259,463 399,038 440,636 118,871 90,358 94,766

24

2,154,954

2,058,585

2,216,935

1,831 -

25

2,150 -

26

7,011

1,665 2,150

- 40,296 36,296

27

16

14,938 18,502 21,930

8,408 13,370 11,595

1,703

28

14,738

29

88,657 4,174,929

93,499 4,282,970

11,965 1,783 13,835

47,005 50,716 47,998

92,895 87,192 91,847

3,931,909

4,033,400

4,157,212

Liabilities Due to banks Customer deposits

Loans from banks and other financial institutions

Other financial liabilities Provisions

Other liabilities Subordinated liabilities Debt securities in issue Total liabilities

Equity

Share capital and equity premiums Merger premium

Treasury shares Accumulated Profit / (Losses) Revaluation reserves Statutorylegal reserve Other reserves

Total equity

Total liabilities and equity

3,443,791 217,870

33

34

35

5,021

4,101

36

• 3,306,626 3,124,154 3,447,728

• 99,377 98,918 97,914

• 70,909 81,002 69,979

• 11,113 8,694 8,893

• 3,700 4,370 3,860

  94,488

  54,558

  37

• 34,897 69,385 44,311

  65,193 3,788,342

  64,501 3,952,540

• 64,174 65,193 64,501

3,609,108

38

332,181

332,181

315,833

38

71,097

41

44,698

20,180

41

(7,615)

41

14,678 386,587

14,678 330,430

(1,140) 13,539

• 33,819 18,472 (9,324)

• 13,641 16,188 14,681

• 14,678 14,678 14,678

322,801

4,174,929

4,282,970

3,931,909

* The comparative information is restated on account of correction of errors. See note 46.

182,799

3,634,515

3,812,152

332,181 (67,569)

(5)

• 84,940 60,418

  4,033,400

  398,885

  345,060 4,157,212

  The consolidated and separate financial statements were approved by the Board of Directors on the 21nd of March 2024 and were signed on its behalf by:

  Valentin Vancea General Manager

  Pa ge 6 of 169

  Georgiana Stanciulescu Deputy General Manager

  74,966

  332,181 (67,569)

  (5)

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

(All amounts are in thousand RON)

Group

Thousand RON

Balance at 1 January 2023 Comprehensive income Profit for the period

Other comprehensive income Net gain related to FVOCI debt instruments recycled in profit or loss account

Expected net credit loss related to FVOCI debt instruments Gains/(losses) from the measurement at fair value of debt instruments FVOCI

Net gain from the fair value measurement of FVOCI equity instruments

(38,344)

332,181

(67,569)

(1,140)

-

-

-

370

-

-

-

- - - - 332,181

Changes in the revaluation reserve for property and equipment

Total other comprehensive income

Total comprehensive income

Pa ge 7 of 169

-

- - - - (67,569)

- - - - (1,140)

30,729

-

-

15,197

-

14,678

44,698

-

25,485

-

- - - - 14,678

• 71,097 386,587

330,430 - 330,430

25,485 - 25,485

-

• - 386,587

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

(All amounts are in thousand RON)

Group

Thousand RON

Balance at 1 January 2022 Comprehensive income Profit for the period

Other comprehensive income Expected net credit loss related to FVOCI debt instruments Gains/(losses) from the measurement at fair value of debt instruments FVOCI

Net gain from the fair value measurement of FVOCI equity instruments

Changes in the revaluation reserve for property and equipment Total other comprehensive income

Total comprehensive income Allocation to legal reserve Revaluation reserve realized Other adjustments Transactions with equity holders

Share capital increase

Balance at 31 December 2022

Pa ge 8 of 169

13,641

315,833

(67,569)

(1,140)

-

-

-

-

-

-

-

-

-

-

-

- -

- -

- - -- - -

-

-

-

-

- -

- - -

(5,841)

-

(108)

(33,499)

1,104

-

(32,503)

(32,503)

- - -

39,660

-

-

-

-

-

4,583

4,583 4,583

16,348 332,181

-

-

-- (13,514)

-

-

-

-

-

- -

- 30,729

1,557 - -

14,678

13,539

322,801

- 322,801

-

19,234

19,234 - 19,234

-

-

(108) - (108)

-

-

(33,499)

- (33,499)

-

-

-

-1,104 - 1,104 4,583 - 4,583

- -

- 19,234

(27,920) (8,686)

- (27,920)

-(8,686)

- 15,197

- - -

(1,557) 13,514

(33)

- - (33)

- - -

- - (33)

• - 16,348

(67,569)

(1,140)

(38,344)

- 14,678

- 44,698

16,348 330,430

-330,430

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

(All amounts are in thousand RON)

Bank

Thousand RON

Balance at 1 January 2023 Comprehensive income Profit for the period

Other comprehensive income

Net gain related to FVOCI debt instruments recycled in profit or loss account

Expected net credit loss related to FVOCI debt instruments Gains/(losses) from the measurement at fair value of debt instruments FVOCI

Net gain from the fair value measurement of FVOCI equity instruments

Changes in the revaluation reserve for property and equipment

Total other comprehensive income Total comprehensive income Allocation to legal reserve Revaluation reserve realized

Balance at 31 December 2023

Pa ge 9 of 169

Share capital 332,181

Merger premiumTreasury sharesRevaluation reserves for financial assets at

FVOCIRevaluation reserve for premisesStatutory legal reserve 14,681

AccumulatedOther reserves

Profits / (Losses)Total equity

(67,569)

(5)

(38,343)

29,019

14,678 60,418 345,060

- - - - - - -

- - - - - - -

- - - - - - -

(6,239)

- -

- - -

- - -- - -

23,154 23,154

-

-- (6,239)

370 - - - - 370

35,736 - - - - 35,736

804 - - - - 804

-

-

-

-

-

-

- - - - 332,181

- - - - (67,569)

- - - - (5)

30,671 - - - - 30,671

30,671 - - (7,672)

- - (2,875) 26,144

- 1,507 - 16,188

- - - 14,678

23,154 53,825

(1,507) 2,875

- -

• 84,940 398,885

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

(All amounts are in thousand RON)

Bank

Thousand RON

Balance at 1 January 2022 Comprehensive income Profit for the period

Other comprehensive income

Expected net credit loss related to FVOCI debt instruments

Gains/(losses) from the measurement at fair value of debt instruments FVOCI

Net gain from the fair value measurement of FVOCI equity instruments

Changes in the revaluation reserve for property and equipment

Total other comprehensive income Total comprehensive income Allocation to legal reserve Revaluation reserve realized Transactions with equity holders Share capital increase

Balance at 31 December 2022

Share capital 315,833

Merger premium

(67,569)

- - - - - -

- - - - - -

- - - - 16,348

- - - - -

• 332,181 (67,569)

Revaluation reserves for financialTreasury sharesassets at

FVOCIRevaluation reserve for premisesStatutory legal reserve 13,524

AccumulatedOther reserves

Profits / (Losses)

(6)

(5,840)

37,949

• 14,678 27,816 336,385

  - - - - - -

  (33,499)

  (108)

  - -

  - - - -

  - - - -- - - -

  1,104 - - - - 1,104

  -

  4,583 - - - 4,583

  - - - - 1 (5)

  - - - (38,343)

  (32,503) (32,503)

  4,583 4,583 - (13,513)

  - 29,019

  - 14,681

  - - 1,157 -

  - - - - - 14,678

  The consolidated and separate financial statements were approved by the Board of Directorson the 21nd of March 2024 and were signed on its behalf by:Valentin Vancea General Manager

  Pa ge 10 of 169

  Georgiana Stanciulescu DeputyGeneral Manager

  Total equity

• 20,247 20,247

- -- (108)

- (33,499)

- (27,920) 20,247 (7,673)

(1,157) 13,513

- -

- 16,348

60,418 345,060