Hrvatska Poštanska Banka d.d.

Annual / Quarterly Financial Statement • Apr 30, 2021

HPB Group 2020 Investor information and audited Financial statements

1

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 audited 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).

Type and name of prescribed information:	Consolidated financial statements for the period 01.01.2020 - 31.12.2020, HPB Group 2020 Investor information and audited Financial statements
Issuer name, headquarter and address:	Hrvatska poštanska banka p.l.c., Jurišićeva 4, HR-10000 Zagreb
Issuer's Legal Entity Identifier (LEI)	529900D5G4V6THXC5P79
Home Member State:	Republic of Croatia
International Securities Identification Number (ISIN)	HRHPB0RA0002
Stock code (ticker):	HPB-R-A
Regulated market and segment: 3	Zagreb Stock Exchage, Official market

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 954.0 thousand, and HPB-Nekretnine a net profit of HRK 368.0 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 audited 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

Annex 1

Reporting period:		1.1.2020	to	31.12.2020
Year:		2020
		Yearly financial statements
Registration number (MB):	03777928		Issuer's home Member State code:	HRVATSKA
Entity's registration number
(MBS):	080010698
Personal identification number (OIB):	87939104217		LEI:	529900D5G4V6THXC5P79
Institution code:	319
	Name of the issuer: HRVATSKA POŠTANSKA BANKA, p.l.c.
Postcode and town:	10000		ZAGREB
Street and house number: JURIŠIĆEVA 4
E-mail address: hpb@hpb.hr
Web address: www.hpb.hr
Number of employees (end of the reporting period):	1326
Consolidated report:	KD	(KN-not consolidated/KD-consolidated)		KN	KD
Audited:	RD	(RN-not audited/RD-audited)		RN	RD
	Names of subsidiaries (according to IFRS):		Registered office:		MB:
HPB Invest d.o.o.		Strojarska 20, 10000 Zagreb			01972278
HPB-nekretnine d.o.o.		Amruševa 8, 10000 Zagreb			01972260
					Da
Bookkeeping firm:	No	(Yes/No)			Ne
				(name of the bookkeeping firm)
Contact person: Tea Bažant	(only name and surname of the contact person)
	Telephone: 014804670
	E-mail address: tea.bazant@hpb.hr
	Audit firm: BDO Croatia d.o.o. (name of the audit firm)
Certified auditor: Ivan Čajko
	(name and surname)

BALANCE SHEET as at December 31, 2020

Submitter: Hrvatska poštanska banka p.l.c.			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	002	961,912,026	900,072,987
Cash balances at central banks	003	1,014,563,142	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	006	852,203	-
Equity instruments	007	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)	010	21,199,086	38,865,901
Equity instruments	011	-	20,000,000
Debt securities	012	-	-
Loans and advances	013	21,199,086	18,865,901
Financial assets at fair value through profit or loss (15 + 16)	014	-	-
Debt securities	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	019	4,582,928,482	4,108,987,758
Loans and advances	020	-	-
Financial assets at amortised cost (22 + 23)	021	15,213,145,060	16,413,935,375
Debt securities	022	4,305,695	1,978,784
Loans and advances	023	15,208,839,365	16,411,956,591
Derivatives - hedge accounting	024	-	-
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	027	324,499,245	326,574,638
Intangible assets	028	110,071,915	91,824,941
Tax assets	029	6,453,295	2,797,956
Other assets	030	52,180,680	49,114,278
Fixed assets and disposal groups classified as held for sale	031	20,000,000	-
Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	032	23,773,400,892	25,462,886,508
Liabilities
Financial liabilities held for trading (from 34 to 38)	033	863,025	21,172
Derivatives	034	863,025	21,172
Short positions	035	-	-
Deposits	036	-	-
Debt securities issued	037	-	-
Other financial liabilities	038	-	-
Financial liabilities at fair value through profit or loss (from 40 to 42)	039	-	-
Deposits	040	-	-
Debt securities issued	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	044	20,936,228,925	22,561,546,458
Debt securities issued	045	-	-
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	-	-
Provisions	049	196,063,323	125,688,739
Tax liabilities	050	1,728,314	25,697,310
Share capital repayable on demand	051	-	-
Other liabilities	052	149,349,151	151,759,203
Liabilities included in disposal groups classified as held for sale	053	-	-
Total liabilities (33 + 39 + 43 + from 47 to 53)	054	21,396,708,999	22,983,983,651
Equity
Initial capital	055	1,214,775,000	1,214,775,000
Share premium	056	-	-
Equity instruments issued other than capital	057	-	-
Other equity instruments	058	-	-
Accumulated other comprehensive income	059	319,404,893	264,974,555
Retained profit	060	156,511,227	204,798,039
Revaluation reserves	061	-	-
Other reserves	062	539,561,769	611,448,069
( - ) Treasury shares	063	(477,000)	(477,000)
Profit or loss attributable to owners of the parent	064	146,916,005	183,384,194
(--) Interim dividends	065	-	-
Minority interests [non-controlling interests]	066	-	-
Total equity (from 55 to 66)	067	2,376,691,894	2,478,902,857
Total equity and liabilities (54 + 67)	068	23,773,400,893	25,462,886,508

STATEMENT OF PROFIT AND LOSS

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

Submitter: Hrvatska poštanska banka p.l.c. in HRK

Item	AOP code	Same period of the previous year	Current period
		Cumulative	Cumulative
1
Interest income (Interest expenses)	2 001 002	3 622,605,735 77,148,529	4 588,820,078 51,590,120
(Expenses on share capital repayable on demand)	003	-	-
Dividend received	004	3,645,670	3,292,513
Fees and commissions income	005	539,380,118	459,757,903
(Fees and commissions expenses)	006	325,301,350	273,899,127
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	007	5,158,277	35,035,565
Gains or (-) losses on financial assets and liabilities held for trading, net	008	98,471,145	47,068,263
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	813,430	(571,077)
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)	(8,624,819)
Gains or (-) losses on derecognition of non-financial assets, net	013	-	-
Other operating income	014	27,500,749	13,725,920
(Other operating expenses)	015	12,381,264	14,000,990
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 14 – 15)	016	879,400,258	799,014,109
(Administrative expenses)	017	421,317,403	391,864,512
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	018	36,789,659	42,002,367
(Depreciation)	019	77,695,369	76,278,177
Modification gains or (-) losses, net (Provisions or (-) reversal of provisions)	020	(15,756,307)	(3,386,347)
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or	021	81,806,092	(61,671,217)
loss)	022	135,541,506	109,876,155
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	023	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	024	11,816,090	8,711,610
Negative goodwill recognised in profit or loss	025	-	-
Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method	026	-	-
Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as discontinued operations	027	-	-
Profit or (-) loss before tax from continuing operations (16 – 17 – 18 + 19 – from 20 to 23 + from 24 to 26)	028	98,677,832	228,566,158
(Tax expense or (-) income related to profit or loss from continuing operations)	029	(48,238,174)	45,181,964
Profit or (-) loss after tax from continuing operations (27 – 28)	030	146,916,006	183,384,194
Profit or (-) loss after tax from discontinued operations (31 – 32)	031	-	-
Profit or (-) loss before tax from discontinued operations	032	-	-
(Tax expense or (-) income related to discontinued operations)	033	-	-
Profit or ( – ) loss for the year (29 + 30; 34 + 35)	034	146,916,006	183,384,194
Attributable to minority interest [non-controlling interests] Attributable to owners of the parent	035 036	- 146,916,006	- 183,384,194
STATEMENT OF OTHER COMPREHENSIVE INCOME
		-
Income or (-) loss for the current year Other comprehensive income (38 + 50)	037	146,916,006	183,384,194
Items that will not be reclassified to profit or loss (from 39 to 45) + 48 + 49)	038	214,050,212 (59,646)	(82,538,216) (4,199,151)
Tangible assets	039 040	(72,739)	(7,533,354)
Intangible assets	041	-	-
Actuarial gains or (-) losses on defined benefit pension plans	042	-	1,825,625
Fixed assets and disposal groups classified as held for sale	043	-	-
Share of other recognised income and expense of entities accounted for using the equity method	044	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	045	-	-
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive income, net	046	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	047	-	-
[hedged item] Fair value changes of equity instruments measured at fair value through other comprehensive income
[hedging instrument]	048	-	-
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their	049	-	-
credit risk
Income tax relating to items that will not be reclassified	050	13,093	1,508,578
Items that may be reclassified to profit or loss (from 51 to 58)	051	214,109,858	(78,339,065)
Hedge of net investments in foreign operations [effective portion]	052	-	-
Foreign currency translation	053	-	-
Cash flow hedges [effective portion]	054	-	-
Hedging instruments [not designated elements] Debt instruments at fair value through other comprehensive income	055 056	- 262,780,744	- (95,463,311)
Fixed assets and disposal groups classified as held for sale	057	-	-
Share of other recognised income and expense of investments in subsidiaries, joint ventures and
associates	058	-	-
Income tax relating to items that may be reclassified to profit or (-) loss	059	(48,670,886)	17,124,246
Total comprehensive income for the current year (36 + 37; 60 + 61)	060	360,966,218	100,845,978
Attributable to minority interest [non-controlling interest]	061	-	-
Attributable to owners of the parent	062	360,966,218	100,845,978

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

Submitter: Hrvatska poštanska banka p.l.c. in HRK

AOP Same period of the Item Current period code previous year 1 2 3 4 Operating activities - direct method 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 - - Operating activities - indirect method 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 76,278,177 012 (93,487,877) (73,479,009) Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss (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 036 - - ventures Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to 037 94,043,078 - maturity 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
Item	Equity	Share premium	Equity instruments issued other than capital	Other equity instruments	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	-	-	-	-	28,107,597	(24,739,262)	-	-	-	-	-	-	-	3,368,335
Effects of changes in accounting policies	003	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Opening balance [current period] (1 + 2 + 3)	004	1,214,775,000	-	-	-	347,512,490	131,771,965	-	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	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Exercise or expiration of other equity instruments issued	008	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Conversion of debt to equity	009	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Capital reduction	010	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividends	011	-	-	-	-	-	-	-	-	-	-	-	-	-	-
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	-	(146,916,006)	-	-	-	(2,003,632)
Share based payments	017	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other increase or ( - ) decrease of equity instruments	018	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Total comprehensive income for the current year	019	-	-	-	-	(82,537,935)	-	-	-	-	183,384,194	-	-	-	100,846,259
Equity instruments increase or (-) decrease resulting from business combinations	020	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	264,974,555	204,798,039	-	611,448,069	(477,000)	183,384,194	-	-	-	2,478,902,857

Notes to financial statements

1) INTEREST INCOME		in HRK
AOP 001	Same period of the previous	Current period 01.01.
	year 01.01.-31.12.2019 Cumulative	– 31.12.2020. Cumulative
Debt securities	93,737,077	81,200,505
Loans and advances	528,443,333	507,302,008
Other assets Deposits	424,091 1,234	314,906 2,659
Other liabilities	-	-
Total	622,605,735	588,820,078
2) INTEREST EXPENSE		in HRK
AOP 002	Same period of the previous year 01.01.-31.12.2019	Current period 01.01. – 31.12.2020.
	Cumulative	Cumulative
Debt securities	-	-
Loans and advances Other assets	3,039,091 -	2,873,661 -
Deposits	73,071,014	47,533,458
Other liabilities Total	1,038,423 77,148,529	1,183,001 51,590,120
3) FEE AND COMMISSION INCOME	Same period of the previous	in HRK Current period 01.01.
AOP 005	year 01.01.-31.12.2019	– 31.12.2020.
	Cumulative	Cumulative
Securities Asset management	397,609 84,655	3,269,735 44,754
Custody [according to the type of client]	5,041,832	3,651,553
Loan commitments Other	151,466 533,704,556	72,553 452,719,307
Total	539,380,118	459,757,903
4) FEE AND COMMISSION EXPENSE		in HRK
	Same period of the previous	Current period 01.01.
AOP 006	year 01.01.-31.12.2019	– 31.12.2020.
Bank clearing and settlement	Cumulative 1,552,230	Cumulative 1,726,624
Other	323,749,121	272,172,503
Total	325,301,350	273,899,127
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES		in HRK
AOP 007	Same period of the previous	Current period 01.01.
	year 01.01.-31.12.2019 Cumulative	– 31.12.2020. Cumulative
Debt securities	5,158,277	35,035,565
Loans and advances Deposits	- -	- -
Debt Securities issued	-	-
Other financial liabilities	-	-
Total	5,158,277	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.-31.12.2019	Current period 01.01. – 31.12.2020.
	Cumulative	Cumulative
Equity instruments	17,025,588	(770,953)
Debt securities FX transactions and derivatives	31,198,851 50,246,706	(7,006,878) 54,846,094
Total	98,471,145	47,068,263
7) GAINS OR LOSSES ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS
AOP 009	Same period of the previous	Current period 01.01.
	year 01.01.-31.12.2019 Cumulative	– 31.12.2020. Cumulative
Equity instruments	-	-
Debt securities	813,430	-
Loans and advances Total	- 813,430	(571,077) (571,077)
8) OPERATING EXPENSES	Same period of the previous	in HRK Current period 01.01.
AOP 015 & AOP 017 & AOP 018	year 01.01.-31.12.2019	– 31.12.2020.
	Cumulative	Cumulative
Other operating expenses Administrative expenses	12,381,264 421,317,403	14,000,990 391,864,512
Employee expenses	230,567,170	233,499,673
Other administrative expenses (Contributions in cash rehabilitation committees and Deposit	190,750,234	158,364,839
Insurance Schemes)	36,789,659	42,002,367
Amortization Property, plant and equipment	77,695,369 43,106,555	76,278,177 43,473,575
Investment property	-	-
Other intangible assets	34,588,814	32,804,602
Total	548,183,695	524,146,047
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES		in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year 01.01.-31.12.2019	Current period 01.01. – 31.12.2020.
	Cumulative	Cumulative
Modification gains or (-) losses, net	(15,756,307)	(3,386,347)
Financial assets at fair value through other comprehensive income Financial assets at amortized cost	- (15,756,307)	- (3,386,347)
(Provisions or (-) reversal of provisions)	81,806,092	(61,671,217)
(Liabilities and Guarantees) (Other Provisions)	25,823,092 55,983,000	17,214,299 (78,885,516)
(Impairment or (-) reversal of impairment on financial assets that are
not measured at fair value through profit or loss)	135,541,506	109,876,155 577,174
(Financial assets at fair value through other comprehensive income)
(Financial assets at amortized cost)	3,400,611 132,140,895	109,298,981
(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	8,711,610 8,711,610
(Investment property)	3,879,653	-
(Goodwill) (Other intangible assets)	- -	- -
(Other) Total	569,488 244,919,995	- 60,302,895

10) LOANS AND ADVANCES						in HRK
AOP 023	31.12.2019.					31.12.2020.
	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 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	3,626,597,766	422,197,574	636,986,564
Gross loans	3,724,482,681	219,244,197	1,343,775,272	3,753,026,824	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	14,929,267,898	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

HPB p.l.c. 10 000 Zagreb, Jurišićeva 4

SUPERVISORY BORD

Zagreb, March 30 2021

In accordance with the provision of article 21 of the Articles of Association of HPB p.l.c. (in further text: Bank), and in line with Articles 300.c and 300.d of the Companies Act, Supervisory Board of the Bank has at its meeting held on March 30 2021, made the following:

RESOLUTION

on giving consent to Annual financial statements and consolidated annual financial statements of the Bank and the Group, for the 2020 business year, comprising also the Management Board's annual report on condition of HPB p.l.c. and its subisidiaries for year 2020.

I.

Consent is given to Annual financial statements and consolidated annual financial statements of the Bank and the Group for the business year ended December 31 2020, comprising also the Management Board's annual report on condition of HPB p.l.c. and its subisidiaries, submitted by the Bank's Management Board.

Acceptance is given for Auditor's report by BDO CROATIA d.o.o., Zagreb, Trg J.F.Kennedya 6b. Auditor has conducted the audit of Annual financial statements the Bank and the Group for the year ended December 31 2020.

II.

By giving consent to statements outlined in paragraph I. of this Resolution, Annual financial statements and consolidated annual financial statements of the Bank and Group for the year ended December 31 2020 are considered to be confirmed by the Management Board and the Supervisory Board.

III.

This resolution comes into force on the day of its adoption.

President of the Supervisory Board Marijana Miličević

HPB p.l.c. Zagreb,Jurišićeva 4

SUPERVISORY BORD

Zagreb, March 30 2021

In accordance with the provision of article 21 of the Articles of Association of HPB p.l.c. (in further text: Bank), and in line with Article 300.b and Article 275, paragraph 1, point 2 of the Companies Act, Supervisory Board of the Bank has at its meeting held on March 30 2021, made the following:

RESOLUTION

on giving consent to Management Board's proposal on allocation of profit earned in 2020

I.

Bank's Supervisory Board gives its consent and accepts Management Board's proposal on allocation of profit earned in 2020, which is a constituent part of this resolution.

II.

By providing its consent outlined in paragraph I. of this Resolution, Management Board's proposal on allocation of profit earned in 2020 is considered to be confirmed.

III.

Supervisory Board proposes to General Assembly to vote in favour of profit allocation as outlined in Management Board's proposal.

IV.

This resolution comes into force on the day of its adoption and is submitted to General Assembly for adoption.

President of the Supervisory Board Marijana Miličević