Zagrebacka banka d d : Zagrebačka banka Group unaudited financial results H1 2023.

Unaudited financial statements of

Zagrebačka banka Group

for the period from 1 January to 30 June 2023

Content:

1. Management report for the period from 1 January to 30 June 2023

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 June 2023
2. Balance sheet as at 30 June 2023
3. Income statement for the period from 1 January to 30 June 2023
4. Cash flow statement for the period from 1 January to 30 June 2023
5. Statement of changes in equity for the period from 31 December 2022 to 30 June 2023
6. Notes to the financial statements

1. Management report for the period from 1 January to 30 June 2023

Zagrebačka banka Group realised profit after tax of EUR 250 million in the first half of 2023. This is EUR 112 million (+81.2%) higher than in the same period in 2022.

Our operating income increased, cost management is disciplined. Capital and liquidity positions are strong, assets are covered with prudent loan provisions.

Zagrebačka banka Group is resilient and reliable. We are strongly connected with our community, providing support to the economy and the society in which we operate. We are doing this by financing most loans in the market, by investing in optimal user experiences as well as in the security of our solutions, by maintaining the robust payment infrastructure and offering the wide scale of services to companies and citizens.

We are transforming our organization, culture, and ways of working to assure sustainability and guide capital reallocation towards economic activities which generate a positive overall impact, considering also the Environmental, Social and Governance (ESG) aspects.

We are striving to be the best employer possible, by supporting our employees through work-life balance, health, family support and other important initiatives.

Major contributors to Group result are Zagrebačka banka dd, UniCredit Bank dd Mostar and UniCredit Leasing Croatia doo.

Key performance indicators:

• Operating income: EUR 447 million
• Operating expenses: EUR 162 million
• Profit before impairment and other provisions: EUR 281 million
• Impairment and other provisions: EUR 18 million
• Loans and advances to customers: EUR 12,190 million
• Deposits from customers: EUR 18,911 million

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1. Management report for the period from 1 January to 30 June 2023 (continued)

Operating income amounted to EUR 447 million, increased by EUR 105 million (+30.7%) Y/Y:

• Net interest income amounted to EUR 314 million, increased by EUR 126 million (+67.0%) Y/Y.
• Net fee and commission income amounted to EUR 104 million, increased by EUR 3 million (+3.0%).
• Net trading and other income and expenses amounted to EUR 29 million, decreased by EUR 24 million (-45.3%)Y/Y mainly due to lower trading result.

Operating expenses - at EUR 162 million, higher by EUR 12 million (+8.0%). Cost to income ratio equals to 36.24%.

Profit before impairment and other provisions amounted to EUR 281 million, higher by EUR 98 million (+53.6%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions write-back amounted to EUR 18 million, changed by EUR 41 million.

Total assets of the Group amounted to EUR 23,379 million, lower by EUR 281 million (-1.2%) BoY.

• Net loans and advances to customers amounted to EUR 12,190 million, increased by EUR 389 million (+3.3%) due to increase in corporate and retail lending.
• Deposits from customers represent primary source of funding. They amounted to EUR 18,911 million, lower by EUR 147 million (-0.8%) BoY mainly in corporate deposits.
• Deposits from credit institutions at EUR 785 million, lower by EUR 152 million (-16.2%) BoY.

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1. Management report for the period from 1 January to 30 June 2023 (continued)
   Financial results for the period from 1 January to 30 June 2023

Zagrebačka banka Group						Δ 2Q 2023 vs 2Q 2022
Income statement (EURm)	2Q 2023		2Q 2022			EURm		%
	1		2			3 (1-2)		4 (3/2)
Interest income	360		209		151		72.2 %
Interest expense	(46)		(21)		(25)		119.0 %
Net interest income	314		188		126		67.0 %
Fee and commission income	122		117		5		4.3 %
Fee and commission expense	(18)		(16)		(2)		12.5 %
Net fee and commission income	104		101		3		3.0 %
Net trading and other income and expenses	29		53		(24)		(45.3 %)
Operating income	447		342		105		30.7 %
Operating expenses	(162)		(150)		(12)		8.0 %
Cash contributions to resolution funds and	(4)		(9)		5		55.6 %
deposit guarantee schemes
Profit before impairment and other provisions	281		183		98		53.6 %
Impairment and other provisions	18		(23)		41		(178.3 %)
Profit from operations	299		160		139		86.9 %
Share of profit from associates	2		2		-	0.0 %
Profit from discontinued operations	-	3		(3)		(100.0 %)
Profit before tax	301		165		136		82.4 %
Income tax	(51)		(27)		(24)		(88.9 %)
Net profit	250		138		112		81.2 %
Attributable to equity holders of the Bank	250		138		112		81.2 %
Attributable to non-controlling interests	-	-	-	0.0 %
Net profit	250		138			112		81.2 %

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1. Management report for the period from 1 January to 30 June 2023 (continued)

Financial results for the period from 1 January to 30 June 2023 (continued)

	Zagrebačka banka Group					Δ 2023 vs. 2022
	Balance sheet (EURm)	30 Jun 2023		31 Dec 2022		EURm		%
		1		2		3 (1-2)		4 (3/2)
	Cash, cash balances at central banks and other	6,775		7,152		(377)		(5.3 %)
	demand deposits
	Financial assets held for trading	206		265		(59)		(22.3 %)
	Non-trading financial assets mandatorily at fair	19		16		3	18.8 %
	value through profit or loss
	Financial assets at fair value through other	1,081		996		85		8.5 %
	comprehensive income
	Financial assets at amortised cost:	14,730		14,692		38		0.3 %
	Debt securities	1,438		1,194		244		20.4 %
	Loans and advances to credit institutions	1,102		1,697		(595)		(35.1 %)
	Loans and advances to customers	12,190		11,801		389		3.3 %
	Tangible and intangible assets	371		346		25		7.2 %
	Investments in subsidiaries. joint ventures and	20		11		9	81.8 %
	associates
	Other assets	177		182		(5)		(2.7 %)
	Total assets	23,379		23,660		(281)		(1.2 %)
	Financial liabilities held for trading	197		259		(62)		(23.9 %)
	Financial liabilities measured at amortised cost:	20,252		20,220		32		0.2 %
	Debt securities issued	151		151		0	0.0 %
	Deposits from credit institutions	785		937		(152)		(16.2 %)
	Deposits from customers	18,911		19,058		(147)		(0.8 %)
	Other financial liabilities	405		74		331		447.3 %
	Provisions for risks and charges	245		238		7	2.9 %
	Other liabilities	284		258		26		10.1 %
	Total liabilities	20,978		20,975		3	0.0 %
	Equity	2,401		2,685		(284)		(10.6 %)
	Total equity and liabilities	23,379		23,660		(281)		(1.2 %)

Zagreb, 25 July 2023

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