Hrvatska Poštanska Banka d.d.

Management Reports • Mar 13, 2020

Management Board Jurišićeva 4, HR-10000 Zagreb Phone: +385 1 4804 400, +385 1 4804 409 Fax: +385 1 4810 773

Zagreb, 13 March 2020 No: E00-27/SS

Zagreb Stock Exchange Inc. Croatian Financial Services Supervisory Agency (''HANFA'') Croatian News Agency OTS HINA

Subject: HRVATSKA POŠTANSKA BANKA, plc.

- Information according to ESMA recommendation

It is without a doubt that the impact of current global situation with COVID-19 has on people and economies, will spill over to Croatia. As a consequence, virus will have a certain short term effect on HPB's business operation during 2020.

Since the emergence of this situation, Bank's Management Board has been actively working to protect its employees from the contagion, to ensure business continuity and to mitigate adverse effects on business results as much as possible.

In line with instructions made by Croatian civil services, especially by Croatian Public Health Institute and Civil Protection Headquarters, and in accordance with relevant internal procedures and manuals, the Bank has formed a team for managing the COVID-19 situation and has brought up a protocol to deal with it.

Timely adjustment of business processes and working procedures to crisis working conditions, HPB has ensured business continuity so that key elements of its businesses might continue to operate. All information about potential changes with regard to Bank's business activities will be regularly updated and disclosed at HPB's web site. Bank will continue to monitor the development of the situation and to adequately react to ensure seamless conduct of business, financial stability and protection of its employees, clients and investors.

Even though Hrvatska poštanska banka d.d. is not significantly exposed to sectors of the economy that are most fragile, it can be expected that the effects of this situation will spill over to other stakeholders in the economy. This could be reflected in lower revenue and higher credit losses, than had been previously projected. However, the Bank is significantly stronger and better capitalized than in the phase, and has ample liquidity reserves at its disposal.

Accordingly, we're expecting that the effects of COVID-19 virus will be transitory in nature and limited on financial result in H1 2020. This is especially related to the impact that the drop on global financial markets has on the Bank's securities' portfolio. We remain optimistic with regard to long-term potential of HPB should the contagion subside as is expected, combined with ECB measures aimed at ensuring stability and liquidity. Bank will regularly and in a timely manner make announcements to the investment community about new facts.

Accordingly, we are of opinion that we'll overcome these extraordinary obstacles arising from COVID-19 virus, and that in spite of them – Bank will accomplish its long term goals.

HRVATSKA POŠTANSKA BANKA, plc.

Note: This information is not final, but reflects management's current judgment based on certain assumptions and available knowledge. As such, forward-looking statement and estimates contain inherent risks and uncertainties. In this context, it implies that subsequent developments may affect this information and that the Bank is under no obligation to update or modify such information in the case of occasions that might affect it.

Each investor who is considering the purchase of Bank's shares has to refer of their own assessment and judgment of Banks's financial position. To the extent permitted by law, the liability of the Bank for any loss, damage or expense suffered by investors or any third parties as a result of having relied on the information contained in this Notice shall be excluded.

Hrvatska poštanska banka, d.d. ⋅ Jurišićeva 4, 10000 Zagreb, Croatia ⋅ phone: 072 472 472 ⋅ hpb@hpb.hr ⋅ www.hpb.hr Management Board: Marko Badurina, Chairman ⋅ Anto Mihaljević, Member ⋅ Ivan Soldo, Member ⋅ Marijana Miličević, President of the Supervisory Board ⋅ IBAN: HR46 2390 0011 0700 0002 9 ⋅ SWIFT: HPBZHR2X ⋅ OIB: 87939104217 ⋅ Registered with Zagreb Commercial Court under number MBS: 080010698 ⋅ Base Capital 1.214.775.000,00 kn, divided into 2.024.625 ordinary shares in nominal amount of 600,00 kn (paid in full)

LEI 529900D5G4V6THXC5P79

Home Member State of Issuer Republic of Croatia ISIN HRHPB0RA0002 Stock Exchange Identifier HPB-R-A Regulated Market/

Segment

Zagreb Stock Exchange Inc. Official Market