Hrvatska Poštanska Banka d.d.

Annual / Quarterly Financial Statement • Feb 26, 2021

HPB Group Q4 2020 Investor information and unaudited Financial statements

Limitation of liability

• The information and data contained in this presentation are intended to be general background information on Hrvatska poštanska banka p.l.c. as the parent company of the Hrvatska poštanska banka Group (hereinafter referred to as the Bank, Group or HPB p.l.c.) and its activities and is supplied in summary form and therefore not necessarily complete.
• This presentation may include information and data derived from publicly available sources that have not been independently verified, therefore HPB p.l.c. hereby expressly makes no representation of warranty of any kind, including, but not limited to the accuracy, completeness or reliability of the provided information and data.
• Contained statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions therefore, when making decisions based on predictions of future uncertain events, the investors and/or others should carefully consider such factors and other uncertainties and events.

In accordance with the Capital Markets Act, Hrvatska poštanska Banka p.l.c. (Bank), as the parent company of the Hrvatska poštanska banka Group (Group), publishes unaudited financial statements for the period from January 01 to December 31, 2020.

Original and official quarterly report is published in Croatian.

The report includes:

• Management report of HPB Group,
• Statement by persons responsible for compiling the report,
• Unaudited set of consolidated financial statements (balance sheet, profit or loss statement, statement of changes in equity, cash flow statement), and
• Notes to the consolidated financial statements.

Financial statements and notes have been compiled in accordance with instructions defined in Rulebook on format and content of interim financial reports of issuers (NN 114/2018).

Management report

HPB Group is, apart from the parent company – Hrvatska poštanska Banka p.l.c., HPB Invest (investment fund management) and HPB-nekretnine (real estate agency).

As of April 1, 2019. Jadranska banka p.l.c. was successfully merged to Hrvatska poštanska banka p.l.c. and on December 2, 2019 the HPB Stambena štedionica p.l.c. was merged.

The HPB Group's net profit after tax is HRK 183.4 million. The Group's result relates largely to the results of the parent company, while HPB Invest made a net profit of HRK 848.0 thousand and HPB-Nekretnine a net profit of HRK 363.5 thousand.

Marko Badurina Anto Mihaljević

President of the Management Board Member of the Management Board

Ivan Soldo

Member of the Management Board

Statement by persons accountable for compiling the report of HPB p.l.c.

In accordance with the Capital Market Act, the Management Board of HPB p.l.c., the parent company of HPB Group, states that according to their best knowledge the set of consolidated unaudited financial statements for the period from January 01 to December 31, 2020, are compiled in accordance with the accounting regulation applicable to credit institutions in Croatia, presents complete and accurate view of assets and liabilities, losses and gains, financial position and results of HPB p.l.c., as well as companies included in consolidation as a whole.

On behalf of HPB p.l.c., the parent company of HPB Group:

Tea Bažant Marko Badurina

Executive Head of finance division President of the Management Board

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

BALANCE SHEET as at December 31, 2020
Submitter: Hrvatska poštanska banka			in HRK
Item	AOP code	Last day of the preceding business year	At the reporting date of the current period
1	2	3	4
Assets
Cash, cash balances at central banks and other demand deposits (from 2 to 4)
	001	2,772,782,193	3,662,500,484
Cash in hand Cash balances at central banks	002 003	961,912,026 1,014,563,142	900,072,987 2,224,401,393
Other demand deposits	004	796,307,025	538,026,104
Financial assets held for trading (from 6 to 9)	005	612,871,552	719,257,423
Derivatives Equity instruments	006 007	852,203 96,079,539	- 95,340,654
Debt securities	008	515,939,810	623,916,769
Loans and advances	009	-	-
Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13) Equity instruments	010 011	21,199,086 -	18,865,901 -
Debt securities	012	-	-
Loans and advances	013	21,199,086	18,865,901
Financial assets at fair value through profit or loss (15 + 16) Debt securities	014 015	- -	- -
Loans and advances	016	-	-
Financial assets at fair value through other comprehensive income (from 18 to 20)	017	4,640,197,866	4,158,015,469
Equity instruments	018	57,269,384	49,027,711
Debt securities Loans and advances	019 020	4,582,928,482 -	4,108,987,758 -
Financial assets at amortised cost (22 + 23)	021	15,213,145,060	16,414,151,555
Debt securities	022	4,305,695	1,978,784
Loans and advances Derivatives - hedge accounting	023 024	15,208,839,365 -	16,412,172,771 -
Fair value changes of the hedged items in portfolio hedge of interest rate risk	025	-	-
Investments in subsidiaries, joint ventures and associates	026	-	43
Tangible assets Intangible assets	027 028	324,499,245 110,071,915	326,574,638 91,824,941
Tax assets	029	6,453,295	7,545,824
Other assets	030	52,180,680	49,074,168
Fixed assets and disposal groups classified as held for sale Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	031	20,000,000	20,000,000
Liabilities	032	23,773,400,892	25,467,810,448
Financial liabilities held for trading (from 34 to 38)	033	863,025	21,172
Derivatives	034	863,025	21,172
Short positions	035	-	-
Deposits Debt securities issued	036 037	- -	- -
Other financial liabilities	038	-	-
Financial liabilities at fair value through profit or loss (from 40 to 42)	039	-	-
Deposits Debt securities issued	040 041	- -	- -
Other financial liabilities	042	-	-
Financial liabilities measured at amortised cost (from 44 to 46)	043	21,048,705,186	22,680,817,227
Deposits Debt securities issued	044 045	20,936,228,925 -	22,561,546,458 -
Other financial liabilities	046	112,476,261	119,270,769
Derivatives - hedge accounting	047	-	-
Fair value changes of the hedged items in portfolio hedge of interest rate risk	048 049	-	-
Provisions Tax liabilities	050	196,063,323 1,728,314	125,643,877 30,445,178
Share capital repayable on demand	051	-	-
Other liabilities	052	149,349,151	151,916,183
Liabilities included in disposal groups classified as held for sale Total liabilities (33 + 39 + 43 + from 47 to 53)	053 054	- 21,396,708,999	- 22,988,843,637
Equity
Initial capital	055	1,214,775,000	1,214,775,000
Share premium	056	-	-
Equity instruments issued other than capital Other equity instruments	057 058	- -	- -
Accumulated other comprehensive income	059	319,404,893	242,230,591
Retained profit	060	156,511,227	204,798,039
Revaluation reserves Other reserves	061 062	- 539,561,769	22,743,964 611,448,069
( - ) Treasury shares	063	(477,000)	(477,000)
Profit or loss attributable to owners of the parent	064	146,916,005	183,448,148
(--) Interim dividends Minority interests [non-controlling interests]	065 066	- -	- -
Total equity (from 55 to 66)	067	2,376,691,894	2,478,966,811
Total equity and liabilities (54 + 67)	068	23,773,400,893	25,467,810,448

STATEMENT OF PROFIT AND LOSS

for the period January 01, 2020 to December 31, 2020

Submitter: Hrvatska poštanska banka in H

				Current period
Item	Same period of the previous year AOP
	code	Cumulative	Quarter	Cumulative	Qua
1	2	3	4	5
Interest income	001	622,605,735	165,856,704	588,820,078	147,709
(Interest expenses)	002	77,148,529	22,868,142	51,590,120	11,630
(Expenses on share capital repayable on demand)	003	-	-	-
Dividend received	004	3,645,670	23,216	3,292,513	11
Fees and commissions income	005	539,380,118	121,154,958	459,757,903	110,572
(Fees and commissions expenses)	006	325,301,350	72,566,824	273,899,127	65,273
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through	007	5,158,277	1,078,594	35,035,565
profit or loss, net
Gains or (-) losses on financial assets and liabilities held for trading, net	008	98,471,145	11,281,365	47,068,263	18,424
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	813,430	811,403	(571,077)	(787,
Gains or (-) losses on financial assets and liabilities at fair value through profit or loss, net	010	-	-	-
Gains or (-) losses from hedge accounting, net	011	-	-	-
Exchange rate differences [gain or (-) loss], net	012	(3,343,723)	(562,018)	(8,624,819)	(1,037,
Gains or (-) losses on derecognition of non-financial assets, net	013	-	-	-
Other operating income	014	27,500,749	22,012,494	12,002,345	3,110
(Other operating expenses)	015	49,170,933	16,503,055	53,761,851	12,700
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 14 – 15)	016	842,610,589	209,718,695	757,529,673	188,399
(Administrative expenses)	017	421,317,393	119,622,450	394,061,626	107,872
(Depreciation)	018	77,695,369	39,953,587	76,278,177	17,820
Modification gains or (-) losses, net	019	(15,756,307)	(2,701,140)	(3,386,347)	(2,
(Provisions or (-) reversal of provisions)	020	81,806,092	91,651,277	(61,671,217)	1,020
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or
loss)	021	135,541,506	54,983,282	109,876,155	26,428
	022	-	-	-
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)
(Impairment or (-) reversal of impairment on non-financial assets)	023	11,816,090	11,816,090	6,986,227	6,986
Negative goodwill recognised in profit or loss	024	-	-	-
Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for	025	-	-	-
using the equity method
Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as	026	-	-	-
discontinued operations
Profit or (-) loss before tax from continuing operations (16 – 17 – 18 + 19 – from 20 to 23 + from 24	027
to 26)		98,677,832	(111,009,131)	228,612,358	28,269
	028
(Tax expense or (-) income related to profit or loss from continuing operations)		(48,238,174)	(79,349,137)	45,164,211	10,875
Profit or (-) loss after tax from continuing operations (27 – 28)	029	146,916,006	(31,659,994)	183,448,147	17,394
Profit or (-) loss after tax from discontinued operations (31 – 32)	030	-	-	-
Profit or (-) loss before tax from discontinued operations	031	-	-	-
(Tax expense or (-) income related to discontinued operations)	032	-	-
				-
Profit or ( – ) loss for the year (29 + 30; 34 + 35)
	033	146,916,006	(31,659,994)	183,448,147	17,394
Attributable to minority interest [non-controlling interests]	034	-	-	-
Attributable to owners of the parent	035	146,916,006	(31,659,994)	183,448,147	17,394
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year	036	146,916,006	(31,659,994)	183,448,147	17,394
Other comprehensive income (38 + 50)	037	214,050,212	(28,409,719)	(82,538,216)	9,184
Items that will not be reclassified to profit or loss (from 39 to 45) + 48 + 49)	038	(59,646)	(59,646)	(4,527,764)	(4,527,
Tangible assets	039	(72,739)	(72,739)	(7,533,354)	(7,533,
Intangible assets	040	-	-	-
Actuarial gains or (-) losses on defined benefit pension plans	041	-	-	1,825,625	1,825
Fixed assets and disposal groups classified as held for sale	042	-	-	-
Share of other recognised income and expense of entities accounted for using the equity method	043	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	044	-	-	-
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive
income, net	045	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	046	-	-	-
[hedged item]
Fair value changes of equity instruments measured at fair value through other comprehensive income	047	-	-	-
[hedging instrument]
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their	048	-	-	-
credit risk
Income tax relating to items that will not be reclassified	049	13,093	13,093	1,179,966	1,179
Items that may be reclassified to profit or loss (from 51 to 58)	050	214,109,858	(28,350,073)	(78,010,453)	13,712
Hedge of net investments in foreign operations [effective portion]	051	-	-	-
Foreign currency translation	052	-	-	-
Cash flow hedges [effective portion]	053	-	-	-
Hedging instruments [not designated elements]	054	-	-	-
Debt instruments at fair value through other comprehensive income	055	262,780,744	(32,875,912)	(95,134,699)	16,722
Fixed assets and disposal groups classified as held for sale Share of other recognised income and expense of investments in subsidiaries, joint ventures and	056	-	-	-
associates	057	-	-	-
Income tax relating to items that may be reclassified to profit or (-) loss		(48,670,886)	4,525,839	17,124,246	(3,010,
Total comprehensive income for the current year (36 + 37; 60 + 61)	058
Attributable to minority interest [non-controlling interest]	059 060	360,966,218 -	(60,069,713) -	100,909,931 -	26,578

STATEMENT OF CASH FLOW

for the period January 01, 2020 to December 31, 2020

Operating activities - direct method

Operating activities - indirect method

Submitter: Hrvatska poštanska banka in HRK Item AOP code Same period of the previous year Current period 1 2 3 4 Interest received and similar receipts 001 - - Fees and commissions received 002 - - (Interest paid and similar expenditures) 003 - - (Fees and commissions paid) 004 - - (Operating expenses paid) 005 - - Net gains/losses from financial instruments at fair value through statement of profit or loss 006 - - Other receipts 007 - - (Other expenditures) 008 - - Profit/(loss) before tax 009 94,334,089 228,612,358 Adjustments: - - Impairment and provisions 010 227,442,554 174,933,719 Depreciation 011 75,961,605 76,278,177 Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss 012 (93,487,877) (73,479,009) (Profit)/loss from the sale of tangible assets 013 - -

Other non-cash items	014	(533,130,112)	(537,334,753)
Promjene u imovini i obvezama iz poslovnih aktivnosti
Deposits with the Croatian National Bank	015	(138,266,736)	(280,916,192)
Deposits with financial institutions and loans to financial institutions	016	100,327,657	258,280,921
Loans and advances to other clients	017	(1,337,078,497)	(1,316,595,951)
Securities and other financial instruments at fair value through other comprehensive income	018	(457,927,060)	468,611,329
Securities and other financial instruments held for trading	019	304,271,909	(65,609,242)
Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	-	-
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	(19,522,798)	-
Securities and other financial instruments at amortised cost	022	95,018,103	2,326,911
Other assets from operating activities	023	(1,691,741)	3,106,512
Deposits from financial institutions	024	(53,076,859)	105,943,541
Transaction accounts of other clients	025	168,992,589	1,255,559,114
Savings deposits of other clients	026	329,453,169	720,175,408
Time deposits of other clients	027	(759,126,094)	(928,046,118)
Derivative financial liabilities and other liabilities held for trading	028	417,751	5,952,655
Other liabilities from operating activities	029	2,102,089	(2,589,926)
Interest received from operating activities [indirect method]	030	509,499,920	588,918,099
Dividends received from operating activities [indirect method]	031	-	3,280,842
Interest paid from operating activities [indirect method]	032	(48,067,618)	(51,583,346)
(Income tax paid)	033	-	-
Net cash flow from operating activities (from 1 to 33)	034	(1,533,553,957)	635,825,049
Investing activities
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(48,408,503)	(60,106,596)
Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint
ventures	036	-	-
Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to
maturity	037	94,043,078	-
Dividends received from investing activities	038	(3,645,670)	2,326,911
Other receipts/payments from investing activities	039	-	-
Net cash flow from investing activities (from 35 to 39)	040	41,988,905	(57,779,685)
Financing activities
Net increase/(decrease) in loans received from financing activities	041	335,049,011	475,822,595
Net increase/(decrease) in debt securities issued	042	-	-
Net increase/(decrease) in Tier 2 capital instruments	043	-	-
Increase in share capital	044	-	-
(Dividends paid)	045	-	-
Other receipts/(payments) from financing activities	046	-	-
Net cash flow from financing activities (from 41 to 46)	047	335,049,011	475,822,595
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	(1,156,516,041)	1,053,867,959
Cash and cash equivalents at the beginning of period	049	4,193,834,937	3,046,578,558
Effect of exchange rate fluctuations on cash and cash equivalents	050	9,259,662	(8,624,819)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	3,046,578,558	4,091,821,698

STATEMENT OF CHANGES IN EQUITY

for the period January 01, 2020 to December 31, 2020 in HRK

					Attributable to owners of the parent						Non-controlling interest
AOP Item code	Equity	Share premium	Equity Other equity instruments instruments issued other than capital	Accumulated other comprehensive income	Retained profit Revaluation	reserves	Other reserves	( ) Treasury shares	Profit or ( - ) loss attributable to owners of the parent	(-) Interim dividends	Accumulat ed other comprehen sive income	Other items	Total
1 2	3	4	5 6	7	8	9	10	11	12	13	14	15	16
Opening balance [before restatement] 001	1,214,775,000	-	-	- 319,404,893	156,511,227	-	539,561,769	(477,000)	146,916,006	-	-	-	2,376,691,895
Effects of error corrections 002	-	-	-	- (661,142)	(24,739,262) 28,768,739		-	-	-	-	-	-	3,368,335
Effects of changes in accounting policies 003	-	-	-	- -	-	-	-	-	-	-	-	-	-
Opening balance [current period] (1 + 2 + 3) 004	1,214,775,000	-	-	- 318,743,751	131,771,965 28,768,739		539,561,769	(477,000)	146,916,006	-	-	-	2,380,060,230
Ordinary shares issue 005	-	-	-	- -	-	-	-	-	-	-	-	-	-
Preference shares issue 006	-	-	-	- -	-	-	-	-	-	-	-	-	-
Issue of other equity instruments 007	-	-	-	- -	-	-	-	-	-	-	-	-	-
008 Exercise or expiration of other equity instruments issued	-	-	-	- -	-	-	-	-	-	-	-	-	-
009 Conversion of debt to equity	-	-	-	- -	-	-	-	-	-	-	-	-	-
010 Capital reduction	-	-	-	- -	-	-	-	-	-	-	-	-	-
011 Dividends	-	-	-	- -	-	-	-	-	-	-	-	-	-
Purchase/sale of treasury shares 012	-	-	-	- -	-	-	-	-	-	-	-	-	-
Sale or cancellation of treasury shares 013	-	-	-	- -	-	-	-	-	-	-	-	-	-
Reclassification of financial instruments from equity to liability 014	-	-	-	- -	-	-	-	-	-	-	-	-	-
Reclassification of financial instruments from liability to equity 015	-	-	-	- -	-	-	-	-	-	-	-	-	-
Transfers among components of equity instruments 016	-	-	-	- -	73,026,074	-	71,886,300	-	(146,916,005)	-	-	-	(2,003,631)
Share based payments 017	-	-	-	- -	-	-	-	-	-	-	-	-	-
Other increase or ( - ) decrease of equity instruments 018	-	-	-	- -	-	-	-	-	-	-	-	-	-
Total comprehensive income for the current year 019	-	-	-	- (76,513,160)		- (6,024,776)	-	-	183,448,147	-	-	-	100,910,211
020 Equity instruments increase or (-) decrease resulting from business combinations	-	-	-	- -	-	-	-	-	-	-	-	-	-
Closing balance [current period] (from 4 to 20) 021	1,214,775,000	-	-	- 242,230,591	204,798,039 22,743,963		611,448,069	(477,000)	183,448,147	-	-	-	2,478,966,809

Notes to financial statements
1) INTEREST INCOME				in HRK
	Same period of the previous year 01.01.-
AOP 001	31.12.2019		Current period 01.01. – 31.12.2020.
	Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	93,737,077 528,443,333	23,930,631 141,916,977	81,200,505 507,302,008	19,781,507 127,826,158
Other assets	424,091	9,704	314,906	102,233
Deposits	1,234	(608)	2,659	26
Other liabilities Total	- 622,605,735	- 165,856,704	- 588,820,078	- 147,709,925
2) INTEREST EXPENSE				in HRK
AOP 002	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019 Cumulative	Quarter	Cumulative	Quarter
Debt securities	-	-	-	-
Loans and advances	3,039,091	865,601	2,873,661	847,064
Other assets Deposits	- 73,071,014	- 21,712,458	- 47,533,458	- 10,312,932
Other liabilities	1,038,423	290,083	1,183,001	470,451
Total	77,148,529	22,868,142	51,590,120	11,630,447
				in HRK
3) FEE AND COMMISSION INCOME	Same period of the previous year 01.01.-
AOP 005	31.12.2019		Current period 01.01. – 31.12.2020.
	Cumulative	Quarter	Cumulative	Quarter
Securities Asset management	397,609 84,655	80,066 46,521	3,269,735 44,754	3,037,509 10,656
Custody [according to the type of client]	5,041,832	1,348,090	3,651,553	97,941
Loan commitments	151,466	34,698	72,553	13,757
Other	533,704,556	119,645,583	452,719,307	107,412,587
Total	539,380,118	121,154,958	459,757,903	110,572,450
4) FEE AND COMMISSION EXPENSE				in HRK
AOP 006	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019 Cumulative	Quarter	Cumulative	Quarter
Bank clearing and settlement	1,552,230	413,905	1,726,624	454,600
Other	323,749,121	72,152,919	272,172,503	64,819,389
Total	325,301,350	72,566,824	273,899,127	65,273,989
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES				in HRK
	Same period of the previous year 01.01.-
AOP 007	31.12.2019		Current period 01.01. – 31.12.2020.
	Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	5,158,277 -	1,078,594 -	35,035,565 -	- -
Deposits	-	-	-	-
Debt Securities issued	-	-	-	-
Other financial liabilities Total	- 5,158,277	- 1,078,594	- 35,035,565	- -
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING				in HRK
AOP 008	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019 Cumulative	Quarter	Cumulative	Quarter
Equity instruments	17,025,588	958,913	(770,953)	(770,953)
Debt securities	31,198,851	(1,422,045)	(7,006,878)	5,373,210
FX transactions and derivatives	50,246,706	11,744,496	54,846,094	13,822,665
Total	98,471,145	11,281,364	47,068,263	18,424,922
7) GAINS OR LOSSES ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS
AOP 009	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019
Equity instruments	Cumulative -	Quarter -	Cumulative -	Quarter -
Debt securities	813,430	813,430	-	-
Loans and advances	-	(2,027)	(571,077)	(787,788)
Total	813,430	811,403	(571,077)	(787,788)
8) OPERATING EXPENSES				in HRK
AOP 015 & AOP 017 & AOP 018	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019
Other operating expenses	Cumulative 49,170,933	Quarter 16,503,055	Cumulative 53,761,851	Quarter 12,700,524
Administrative expenses	421,317,393	119,622,450	394,061,626	107,872,240
Employee expenses	221,778,276	70,834,782	194,893,369	23,053,930
Other administrative expenses	199,539,117	48,787,668	199,168,257	84,818,310
Amortization Property, plant and equipment	77,695,369 43,106,555	39,953,587 19,178,829	76,278,176 43,473,574	17,820,632 20,611,706
Investment property	-	(13,814,056)	-	-
Other intangible assets	34,588,814	34,588,814	32,804,602	(2,791,073)
Total	548,183,695	176,079,092	524,101,653	138,393,396
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES				in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year 01.01.-		Current period 01.01. – 31.12.2020.
	31.12.2019
Modification gains or (-) losses, net	Cumulative (15,756,307)	Quarter (2,701,140)	Cumulative (3,386,347)	Quarter (2,549)
Financial assets at fair value through other comprehensive income	-	-	-	-
Financial assets at amortized cost	(15,756,307)	(2,701,140)	(3,386,347)	(2,549)
(Provisions or (-) reversal of provisions) (Liabilities and Guarantees)	81,806,092 25,823,092	91,651,277 20,387,161	(61,671,217) 17,214,299	1,020,378 6,384,646
(Other Provisions)	55,983,000	71,264,116	(78,885,516)	(5,364,268)
(Impairment or (-) reversal of impairment on financial assets that are
not measured at fair value through profit or loss)	135,541,506	54,983,282	109,876,155	26,428,653
(Financial assets at fair value through other comprehensive income) (Financial assets at amortized cost)	3,400,611 132,140,895	(1,677,861) 56,661,144	577,174 109,298,981	(99,553) 26,528,206
(Impairment or (-) reversal of impairment off of investments in subsidiaries,
joint ventures, and associates)	-	-	-	-
(Impairment or (-) reversal of impairment off non-financial assets)
(Property, plant and equipment)	11,816,090 7,366,949	11,816,090 7,366,949	6,986,227 6,986,227	6,986,227 6,986,227
(Investment property)	3,879,653	3,879,653	-	-
(Goodwill)	-	-	-	-
(Other intangible assets) (Other)	- 569,488	- 569,488	- -	- -
Total	244,919,995	161,151,789	58,577,512	34,437,807

10) LOANS AND ADVANCES						in HRK
AOP 023		31.12.2019.	31.12.2020.
	Stupanj 1	Stupanj 2	Stupanj 3	Stupanj 1	Stupanj 2	Stupanj 3
Central banks	1,558,206,655	-	-	1,219,156,918	-	-
Gross loans	1,558,206,655	-	-	1,219,156,918	-	-
Allowance	-	-	-	-	-	-
Government	2,244,696,909	4,456,728	-	2,513,669,837	10,294,601	-
Gross loans	2,250,085,612	5,026,891	383,503	2,520,514,249	10,456,303	-
Allowance	(5,388,703)	(570,163)	(383,503)	(6,844,412)	(161,702)	-
Credit institutuions	233,379,950	-	-	368,510,087	-	-
Gross loans	233,991,494	-	-	57,300	-	-
Allowance	(611,544)	-	-	27	-	-
Deposits	-	-	-	368,996,913	-	-
Allowance	-	-	-	(544,154)	-	-
Other financial institutions	129,436,444	461,201	-	178,937,655	3,893	-
Gross loans	117,745,218	466,361	15,995	168,353,095	3,983	-
Allowance	(398,194)	(5,160)	(15,995)	(584,453)	(90)	-
Deposits	12,197,705	-	-	11,262,954	-	-
Allowance	(108,285)	-	-	(93,941)	-	-
Non - financial institutions	3,627,780,064	170,418,701	441,502,507	3,626,480,744	422,197,574	636,986,564
Gross loans	3,724,482,681	219,244,197	1,343,775,272	3,752,909,802	480,885,197	1,456,527,825
Allowance	(96,702,617)	(48,825,496)	(902,272,765)	(126,429,057)	(58,687,623)	(819,541,261)
Retail	6,301,397,489	304,661,307	192,441,409	7,022,395,635	251,126,985	162,079,076
Gross loans	6,330,026,490	322,194,397	644,630,416	7,060,888,859	272,846,699	688,049,269
Allowance	(28,629,002)	(17,533,090)	(452,189,007)	(38,493,224)	(21,719,714)	(525,970,193)
Total	14,094,897,511	479,997,937	633,943,916	14,929,150,876	683,623,053	799,065,640
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS						in HRK
AOP 013	31.12.2019.	31.12.2020.
Central banks	-	-
Local state	-	-
Credit institutions	-	-
Other financial institutions	-	-
Non - financial institutions	6,692,018	5,093,283
Retail	14,507,069	13,772,618
Total	21,199,086	18,865,901
12) DEPOSITS						in HRK
AOP 044	31.12.2019.	31.12.2020.
Government	-	400,000,000
Local state	4,896,096,420	5,325,746,428
Credit institutions	127,248,024	209,013,088
Other financial institutions	1,436,745,667	1,391,175,468
Non - financial institutions	2,738,237,692	3,161,262,055

Retail 11,737,901,121 12,074,349,419 Total 20,936,228,925 22,561,546,458

As of 31 December 2020 the Bank has recorded corrections in relation to tangilbe assets with immaterial effect of HRK 2,6 mil on net assets.