Zagrebacka banka d d : Zagrebačka banka unaudited financial results Q1 2023

Unaudited financial statements of

Zagrebačka banka dd

for the period from 1 January to 31 March 2023

Content:

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

1. Management report for the period from 1 January to 31 March 2023

Zagrebačka banka dd realised profit after tax of EUR 108 million in the first quarter of 2023. This is EUR 26 million (31.7%) higher than in Q1 2022.

Our operating income increased, inflation pressure on costs was well managed. Capital and liquidity positions are strong, assets are covered with prudent loan provisions.

Zagrebačka banka dd is resilient and reliable. The purpose we declare as part of the UniCredit Group is to empower our communities to progress, to provide support to the economy and the society in which we operate. We are doing this by financing most loans in the market we operate, 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 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.

Key performance indicators:

• Operating income: EUR 174 million
• Operating expenses: EUR 57 million
• Profit before impairment and other provisions: EUR 113 million
• Impairment and other provisions: EUR 16 million
• Loans and advances to customers: EUR 9,915 million
• Deposits from customers: EUR 15,547 million

2

1. Management report for the period from 1 January to 31 March 2023 (continued)

Operating income amounted to EUR 174 million, increased by EUR 35 million (+25.2%) Y/Y:

• Net interest income amounted to EUR 119 million, increased by EUR 49 million (+70,0%) Y/Y.
• Net fee and commission income amounted to EUR 40 million, increased by EUR 4 million (+11.1%).
• Net trading and other income and expenses amounted to HRK 15 million, decreased by HRK 17 million (-53.1%)Y/Y, mainly due to lower dividend income and trading result.

Operating expenses at EUR 57 million, higher by EUR 5 million (+9.6%). Cost to income ratio equals to 32.76%.

Profit before impairment and other provisions amounted to EUR 113 million, higher by EUR 29 million (+34.5%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions at EUR 16 million, changed by EUR 4 million.

Total assets of the Bank amounted to EUR 19,175 million, lower by EUR 792 million (-4.0%) BoY.

• Net loans and advances to customers amounted to EUR 9,915 million, increased by EUR 286 million (+3.0%) due to increase in corporate and retail lending.
• Deposits from customers represent primary source of funding. They amounted to EUR 15,547 million, lower by EUR 689 million (-4.2%) BoY, mainly in corporate deposits.
• Deposits from credit institutions at EUR 296 million, down by EUR 188 million (-38.8%) BoY.

3

1. Management report for the period from 1 January to 31 March 2023 (continued)
   Financial results for the period from 1 January to 31 March 2023

Zagrebačka banka dd					Δ 1Q 2023 vs 1Q 2022
Income statement (EURm)	1Q 2023		1Q 2022		EURm		%
	1		2		3 (1-2)		4 (3/2)
Interest income	137		79		58		73.4 %
Interest expense	(18)		(9)		(9)		100.0 %
Net interest income	119		70		49		70.0 %
Fee and commission income	48		43		5		11.6 %
Fee and commission expense	(8)		(6)		(2)		33.3 %
Net fee and commission income	40		36		4		11.1 %
Net trading and other income and	15		32		(17)		(53.1 %)
expenses
Operating income	174		139		35		25.2 %
Operating expenses	(57)		(52)		(5)		9.6 %
Cash contributions to resolution funds	(4)		(3)		(1)		33.3 %
and deposit guarantee schemes
Profit before impairment and other	113		84		29		34.5 %
provisions
Impairment and other provisions	16		12		4		33.3 %
Profit before tax	129		96		33		34.4 %
Income tax	(21)		(14)		(7)		50.0 %
Net profit	108		82		26		31.7 %

4

1. Management report for the period from 1 January to 31 March 2023 (continued)

Financial results for the period from 1 January to 31 March 2023 (continued)

	Zagrebačka banka dd							Δ 2023 vs. 2022
	Balance sheet (EURm)	31 Mar 2023			31 Dec 2022			EURm		%
		1			2			3 (1-2)		4 (3/2)
Cash, cash balances at central	6,278			6,662		(384)		(5.8 %)
banks and other demand deposits
Obligatory reserve with the CNB	197			259		(62)		(23.9 %)
Financial assets held for trading	17			16		1		5.0 %
Non-trading financial assets
mandatorily at fair value through	668			648		20		3.1 %
profit or loss
Financial assets at fair value
through other comprehensive	11,547			11,882		(335)		(2.8 %)
income
Financial assets at amortised cost:	1,272			1,163		109		9.4 %
	Debt securities	360			1,091		(731)		(67.0 %)
	Loans and advances to credit	9,915			9,629		286		3.0 %
	institutions
	Loans and advances to	173			179		(6)		(3.1 %)
	customers
Tangible and intangible assets	200			196		4		1.9 %
Investments in subsidiaries, joint	95			125		(30)		(24.2 %)
ventures and associates
Other assets	19,175			19,967		(792)		(4.0 %)
Total assets	198			259		(61)		(23.6 %)
Financial liabilities held for trading	16,062			16,930		(868)		(5.1 %)
Financial liabilities measured at	151			151		0		0.1 %
amortised cost:
	Deposits from credit institutions	296			484		(188)		(38.9 %)
	Deposits from customers	15,547			16,236		(689)		(4.2 %)
	Other financial liabilities	68			59		9		15.4 %
Provisions for risks and charges	214			213		1		0.3 %
Other liabilities	205			178		27		14.9 %
Total liabilities	16,679			17,581		(902)		(5.1 %)
Equity	2,496			2,386		110		4.6 %
Total equity and liabilities	19,175			19,967		(792)		(4.0 %)
	Rating							31 March 2023
Fitch Ratings Ltd.	Long Term Issuer Default Rating		BBB
		Short Term Rating				F2
		Viability				bb+
		Shareholder Support				bbb
		Outlook				Stable

Zagreb, 27 April 2023

5