Hrvatska Poštanska Banka d.d.

Interim / Quarterly Report • Oct 29, 2021

HPB d.d. 9M 2021

Investor information and unaudited 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. (hereinafter referred to as the Bank or HPB) and its activities. It is supplied in summary form and therefore not necessarily complete. Certain statements contained herein may be statements of future expectations and other forward-looking statements about HPB, which are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, words such as "may", "will", "should", "expects", "plans", "contemplates", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions typically identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such, no forward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and the development of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.
• This presentation contains financial and non-financial information and statistical data relating to HPB. Such information and data are presented for illustrative purposes only. This presentation may include information and data derived from publicly available sources that have not been independently verified, therefore HPB 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. This presentation is for information purposes only and contains neither a recommendation to buy or sell nor an offer of sale or subscription to shares nor does it constitute an invitation to make an offer to sell shares.
• This presentation has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typesetting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages, rounding-off differences may occur.

Type and name of prescribed information:	Quarterly financial statements for the period 01.01.2021 - 30.09.2021, HPB d.d. 9M 2021 Investor information and unaudited 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:	Zagreb Stock Exchage, Official market

In accordance with the Capital Markets Act, Hrvatska poštanska Banka p.l.c. publishes unaudited financial statements for the period from January 01 to September 30, 2021.

Original and official quarterly report is published in Croatian.

The report includes:

• Management report of Hrvatska poštanska Banka p.l.c.,
• Statement by persons responsible for compiling the report,
• Unaudited set of unconsolidated financial statements (balance sheet, profit or loss statement, statement of changes in equity, cash flow statement), and
• Notes to the 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, 27/2021).

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Highest 9M profit after tax

Accelerating on our strategic pillars

• The most accessible bank on the market with exclusive combination of HPB branches together with externalized services and products in post offices;
• Cost reduction in the declining margins environment, improved C/I performance indicator (-6.3 pp vs. 9M 2020); adequate and sustainable ROAE (+1.3 pp vs. 9M 20) and above market level*;
• Strengthening digital channels (+51.2% mbanking transactions volume).

Continuously strong capital position

• Continuous favourable trend in capital light performing portfolio and optimisation of RWA;
• We continue to fortify our position by harnessing efficiencies in our risk and interest profile.

Strong organic growth in 2021

• Asset increase HRK +2.4 bn in 2021;
• Historically highest LCR at 194%;
• Lowest 9M 2021 provision as a result of improved portfolio quality.

* Market data for 6M 2021 8.1%, HPB 11.6%

• Income statement items are shown in cumulative from start of the period until the reporting date; 9M = cumulative 1.1.2021 – 30.9.2021
• Balance sheet items are shown as at reporting date; 31.12.2020 and 30.9.2021

Source: HPB management reports

5

Key Financials 2021

Operating profit (in HRK mn)

Growth driven by increase in net fee income & trading income, reduction of deposit insurance premium along with maintaing remaining expenses on PY levels.

Gross loans (in HRK mn)

Increase of housing loans exceeded by the decrease in central government and corporate segment.

Highest 9M profit after tax; in addition to improved operating profit, positive impact of efficient provision management.

Elevated capital position.

*Pro forma CET 1 ratio with inclusion of 6M 2021 profit after tax

• Income statement items are shown in cumulative from start of the period until the reporting date; 9M = cumulative 1.1.2021 – 30.9.2021
• Balance sheet items are shown as at reporting date; 31.12.2020 and 30.9.2021

6

Highest 9M profit after tax in history

			2019	2020	30 9 2021	*
Assets		HRK mn	23 844 ,	25 500 ,	27 851 ,	5
Net loans to customers		HRK mn	13 341 ,	14 725 ,	14 514 ,	6
Deposits		HRK mn	20 069 ,	21 214 ,	23 037 ,	5
Equity		HRK mn	2 370 ,	2 473 ,	2 673 ,	5
CET capital ratio 1		%	20 2	21 8	23 5	5
NPL ratio		%	10 8	10 4	9 7	6
NPL ratio excl 100% gov. guaranteed exposure		%	10 4	8 7	8 3	6
NPL coverage		%	67 5	62 2	61 1	6
NPL excl 100% coverage gov. guaranteed exposure		%	70 0	74 2	72 3	6
		2019	2020	9M 2020	9M 2021	*
Income	HRK mn	1 227 ,	1 121 ,	846	876	5
Net profit	HRK mn	144	182	165	207	5
Cost-to-income ratio	%	61 3	64 1	62 6	56 3	6

* Balance sheet items and comparatives are shown as at reporting date; 31.12.2020 and 30.9.2021; while income statement items and comparatives are shown in cumulative (9M) from period start (1.1.2021) until reporting date (30.9.2021)

Return on equity (ROE) % 6.1 7.4 9.0 10.3 ⁵

• Strong organic growth in 2021; asset increase HRK +2.4 bn;
• Highest 9M profit after tax;

7

▪ Improved NPL ratio as a result of effective collections approaches.

Market share by total assets as of 30.06.2021 (in HRK bn)

Composition of Net profit as of 30.9.2021

Gross loans development

Gross loans (in HRK mn)

• The Bank supported Croatian economy during COVID-19 pandemic with SME segment market share in HAMAG-BICRO COVID guarantee schemes significantly above Bank's market share; 36% tourism and sport; 39% culture and media and 70% sea, transport and infrastructure at 30.9.2021; while corporate and SME segment market share in HBOR COVID programs amounting to 5.6% in liquidity programs, 12.0% in sea, transport and infrastructure programs and 100,0% in tourism and sport programs at 30.6.2021;
• Retail loans increase supported by higher housing loans (HRK +544.7 mn or +14.7%) representing stable upward trend;
• Prolonged and successful tourist season resulted in high liquidity of central government sufficient for regular business; following months will show additional needs of RH for loan financing.

8

Subsidised Housing Loans

Housing loans volume (in HRK mn)

Number of approved

0%

5%

10%

15%

20%

25%

30%

35%

• The Bank continuously participates in subsidised housing loan program;
• In the last, sixth, round, the Bank approved HRK 270 mn APN loans;
• Approved but not-yet-placed subsidised housing loans in the amount of HRK 17 mn at 30.9.2021;
• HPB offers HRK loans at EIR of 2.09%, the lowest among all 14 banks participating in the housing subsidy program in 2021.

* Sourcehttps://mgipu.gov.hr/

** Data of approved loans as of 11.10.2021 *** Includes loans placed from prior years APN tranches 9

Portfolio quality improves

NPL ratio development (in %)

Market NPL ratio* 5.1%

NPL coverage development (in %)

Market NPL coverage* 62.6%

• As a result of adequate collection activities, NPL portfolio is at the lowest level in the observed period, in combination with asset increase this leads to positive trend in coverage and NPL share;
• Excluding 100% government guaranteed exposures, NPL share is at the lowest level in the last 5 years;
• Based on continuous favourable trend in relevant ratios as a result of successful collection activities we expect further positive trends in NPL ratio until the year end which is inline with Bank's objectives.

Strong NPL coverage

		2018	2019	2020	30 9 2021
Exposure (total loans)	HRK mn	18 820 ,	18 599 ,	20 792 ,	22 414 ,
Total NPL stock	HRK mn	2 201 ,	2 009 ,	2 163 ,	2 182 ,
NPL %	%	11 7	10 8	10 4	9 7
Loss allowance for loans	HRK mn	(1 632) ,	(1 554) ,	(1 599) ,	(1 565) ,
NPL loss allowance	HRK mn	(1 481) ,	(1 355) ,	(1 346) ,	(1 332) ,
PL loss allowance	HRK mn	(151)	(199)	(254)	(233)
NPL Coverage	%	67 3	67 5	62 2	61 1
NPLs covered by provisions not	HRK mn	569	455	563	617
NPLSs with 100% goverment	HRK guarantees mn	0	76	356	348
Uncovered NPLs	HRK mn	569	379	207	269
CET1*	HRK mn	1 777 ,	2 209 ,	2 314 ,	2 490 ,
CET Uncovered NPLs 1 to	%	32 0	17 2	8 9	10 8

*CET 1 without inclusion of 6M 2021 net profit

Uncovered NPLs to CET 1 trend

• Active NPL portfolio management with an objective to maintain uncovered NPLs to CET1 ratio at low level;
• Government guarantees represent a safety net on top of covered exposures of operating companies serviced by regular debt repayment.

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Economic indicators (y-o-y)

Total services G I

*Source:https://www.porezna-uprava.hr/Dokumenti (data 2019, 2020 and 2021)

Total services G I

24

14

21

13

"G- WHOLESALE AND RETAIL TRADE OF MOTOR VEHICLES AND MOTORCYCLES; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES " "I- ACCOMMODATION AND FOOD SERVICE ACTIVITIES "

327

217

206

Rezultati Q3 2020. 28.10.2021.

Total services G I

COVID-19 measures

Approved corporate moratoria status at 30.9.2021 (in HRK mn)

• HRK 2 mn (0.1% total approved) in corporate and HRK 17 mn (3.9% total approved) in retail segment remaining moratoria as at 30.9.2021;
• Total defaulted loans since moratoria approval at 30.9.2021 amounted HRK 182 mn (6.2% corporate, 13.8% retail in total approved moratoria);
• As at 30.9.2021 total expired moratoria in the amount HRK 1.711 mn status performing.

16

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Key financials – Income statement

		Q3 2020	Q3 2020	∆ q-o-q		9M 2020	9M 2021	∆ y-o-y
Net interest income	HRK mn	134	130	(4 0)	6	405	401	(3 7)	6
fee Net income	HRK mn	51	61	10 0	5	133	149	15 7	5
Operating income	HRK mn	208	214	9 5	5	604	634	30 0	5
Operating expense	HRK mn	(126)	(116)	(9 9)	6	(378)	(357)	(21 2)	6
Operating profit	HRK mn	82	98	15 9	5	226	277	51 1	5
Provisioning	HRK mn	(20)	(24)	4 1	5	(27)	(25)	(2 0)	6
Net profit	HRK mn	50	60	9 9	5	165	207	41 6	5
Cost -to-income ratio	%	60 5	54 2	(6 3)	6	62 6	56 3	(6 3)	6
Net interest margin	%	2 2	1 9	(0 1)	6	3 3	3 0	(0 1)	6

• Operating profit growth (+22.6%) as a result of higher NFCI and trading income, followed by savings on expense side due to reduction of deposit insurance premium while keeping other expenses inline with PY;
• NII lower for less than 1.0% due to decreased portfolio and lower market interest rates; interest expenses management in 9M 2021 (-37.2%) did not neutralise decrease in interest income (-3.7%) vs PY;
• Higher NFCI +11.8% due to withdrawal of COVID-19 measures related to card transactions, successful and prolonged tourist season and recovery of economic activity; rebounding to pre-COVID Q3 2019 level (HRK 61 mn Q3 2019);
• Highest 9M net profit in history.

Source: HPB management reports

18

Operating profit development

Operating profit development (in HRK mn)

• Increase in other income driven by trading income (sale of equity instruments);
• Operating expenses decreased mainly due to lower amortization and deposit insurance premium.

Net income development

Composition of net income

• Despite savings on expense side, net interest income lower vs PY;
• Net fee income increased as a result of increased fees from payment and credit card transactions; rebounding to pre-COVID Q3 2019 level (HRK 61 mn Q3 2019).

Net interest income (in HRK mn)

Net fee income (in HRK mn)

Fees and commissions

Composition of net fee and commission income

* Market data available only for 6M 2021

▪ Improved net fee income mainly driven by successful tourist season, recovery of economic activities and withdrawal of COVID-19 measures related to card business (net income from card business +20.5%);

5.0% 5.2% 5.4% 5.6% 5.8% 6.0% 6.2%

▪ HPB net fee income on par with the banking sector with a relatively stable share.

21

Operating expenses

Composition of operating expenses (in HRK mn)

Administrative expenses development (in HRK mn)

• Operating expenses lower for 5.6% coming from reduction of deposit insurance premium and lower depreciation expense;
• Employee costs up as a result of investing in IT internal resources;
• Administrative expenses broadly inline vs PY (+2.4%); most significant negative impact coming from consulting services for regulatory projects, IT equipment maintenance (new purchases) and taxes, contributions and memberships fees based on revenue.

Provisioning

Structure of net provision expenses in 9M 2020/2021 (in HRK mn)

• Stage 1&2 movement under positive impact of portfolio development in relation to risk profile (higher share of retail housing loans and short-term borrowings to institutions representing liquid asset);
• Lower stage 3 provisions (y-o-y) due to planned individual positive P&L impacts as a result of collection activities;
• Regular legal cases provisions.

23

Key financials – Balance sheet

		31 12 2020	30 9 2021	ytd ∆
Assets	HRK mn	25 500 ,	27 851 ,	5 2 351 ,
Gross loans	HRK mn	16 232 ,	15 987 ,	6 (245)
Deposits	HRK mn	21 214 ,	23 037 ,	5 1 823 ,
Equity	HRK mn	2 473 ,	2 673 ,	5 200
Regulatory capital	HRK mn	2 312 ,	2 490 ,	5 178
Loan/deposit ratio	%	69 4	63 0	6 (6 4)
ROAE	%	7 5	10 7	5 3 2
NPL ratio	%	10 4	9 7	6 (0 7)
NPL ratio excl guaranteed 100% gov. exposure	%	8 7	8 3	6 (0 4)
NPL coverage	%	62 2	61 1	6 (1 2)
NPL excl 100% guaranteed coverage gov. exposure	%	74 2	72 3	6 (1 9)
for Loss allowance loans	HRK mn	(1 599) ,	(1 565) ,	6 (34)

• Assets records continuous growth +9.2% ytd, liquid assets +49.5% primarily due to continuous increase in deposits and interest rate decline, with slight decline in securities -0.6% and gross loans -1.5%;
• Deposits up +8.6% with largest increase in SMEs +21.7% the central state and large corporate segment +21.2%, and retail +1.1%.

Corporate portfolio industry distribution

Corporate gross loans per industry (in %)

31.12.2020 30.9.2021

• Stable structure of corporate gross loans per industry in 9M 2021;
• Reduction to some industry sectors is in line with general macroeconomic trends:
  • Wholesale and retail trade;
  • Construction & Real estate;
• Accommodation activities lending was done backed up by government guarantee schemes.

Source: HPB management reports 25

• Favourable impact on costs from observable trend of reduction of interest rates on deposits and continuous effective interest rate management;
• Customer deposits dominate the funding mix with an 86.7% share;

Composition of equity and liabilities

• Bank holds 6.0% of all deposits on a market at 31.7.2021 (31.12.2020 = 5.75%);
• Stable wholesale funding structure attracted funds through foreign financial institutions, CBRD and CNB repo loans.

Liquidity Overview

Liquidity ratios

▪ The Bank is highly liquid with markedly low loan-to-deposit ratio.

27

Continuously strong capital position

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

CET1 Capital (in HRK mn) and CET1 Ratio (%)

▪ Pro forma CET1 calculation includes 6M 2021 net profit.

500

1,000

1,500

2,000

2,500

3,000

1 Executive Summary

2 Macroeconomic environment

27

3 Financials

4 Risk Management

5 Appendix

Regulatory Capital Development

Regulatory capital development (in HRK mn)

*Note there is a difference to regulatory capital reported in Investor information for Q4 2020 (HRK 2,314 mn) due to revised deduction amount of deferred tax assets - a decrease of HRK 1.8 mn in comparison with unaudited calculation of regulatory capital presented in Investor information for Q4 2020; **Regulatory capital with inclusion of 6M 2021 net profit

RWA Development

RWA development (in HRK mn)

Credit risk Market risk Operating risk

▪ Risk-weighted assets decreased mainly driven by loan exposure decrease while at the same time strenghtening capital management culture.

Meeting MREL requirements

Actual CET1 ratios vs. total MREL requirement

* Pro forma CET 1 ratio with inclusion of 6M 2021 net profit

▪ The Bank has adopted plan to meet MREL requirements during H1 2021

Exposures and coverage per stage

		31.12.2020				30.9.2021
Segment	Stage	Exposure	Exposure excluding 100% government guarantees	Coverage	Coverage excluding 100% government guarantees	Exposure	Exposure excluding 100% government guarantees	Coverage	Coverage excluding 100% government guarantees
CORPORATE	S1	58.5%		3.8%		50.7%		4.0%
CORPORATE	S2	6.8%		8.1%		16.8%		7.2%
CORPORATE	S3	34.7%	21.7%	47.7%	75.2%	32.4%	22.2%	48.4%	79.9%
SME	S1	49.3%		4.2%		39.8%		4.0%
SME	S2	16.8%		15.5%		25.8%		11.3%
SME	S3	33.9%	33.9%	71.3%	71.3%	34.5%	34.5%	67.7%	67.7%
STATE	S1	98.7%		1.0%		98.4%		0.4%
STATE	S2	1.3%		7.2%		1.6%		4.9%
STATE	S3	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
RETAIL	S1	88.5%		0.5%		86.1%		0.5%
RETAIL	S2	3.2%		7.6%		4.6%		5.8%
RETAIL	S3	8.3%	8.3%	75.6%	75.6%	9.3%	9.3%	70.4%	70.4%
TOTAL	S1	85.9%		1.0%		84.5%		0.7%
TOTAL	S2	3.7%		10.5%		5.8%		8.0%
TOTAL	S3	10.4%	8.7%	62.2%	74.2%	9.7%	8.3%	61.1%	72.3%

1 Executive Summary

2 Macroeconomic environment

32

3 Financials

4 Risk Management

5 Appendix

Management report of Hrvatska poštanska Banka p.l.c.

Management report of Hrvatska poštanska Banka p.l.c. for the period from January 01 to September 30, 2021 is contained in the previous section of this material.

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 plc., states that according to their best knowledge the set of unaudited financial statements for the period from January 01 to September 30, 2021, 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.

Tea Bažant

Executive Head of finance division

Marko Badurina

Chief Executive Officer

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

Annex 1

		ISSUER'S GENERAL DATA
Reporting period:			01/01/2021	to	30/09/2021
Year:		2021
Quarter:		3
		Quarterly financial statements
Registration number (MB):	03777928			Issuer's home Member	HRVATSKA
				State code:
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):	1288
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)			KN KD
Audited:	RN		(RN-not audited/RD-audited)		RN RD
Names of subsidiaries (according to IFRS):				Registered office:		MB:
					Da Ne
Bookkeeping firm:	No	(Yes/No)			(name of the bookkeeping firm)
Contact person: Tea Bažant
	Telephone: 014804670	(only name and surname of the contact person)
	E-mail address: tea.bazant@hpb.hr
Audit firm:
	(name of the audit firm)

BALANCE SHEET as at September 30, 2021
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	3,662,460,152	6,210,680,397
Cash in hand Cash balances at central banks	002 003	900,072,987 2,224,401,393	1,652,201,037 3,604,213,672
Other demand deposits Financial assets held for trading (from 6 to 9)	004	537,985,772 719,257,423	954,265,688 593,084,328
Derivatives	005 006	-	-
Equity instruments Debt securities	007	95,340,654	103,740,271
Loans and advances	008 009	623,916,769 -	489,344,057 -
Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13)	010	38,865,901	9,246,359
Equity instruments Debt securities	011 012	20,000,000 -	- -
Loans and advances	013	18,865,901	9,246,359
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) Equity instruments	017 018	4,158,015,469 49,027,711	4,271,495,912 47,985,977
Debt securities	019	4,108,987,758	4,223,509,935
Loans and advances Financial assets at amortised cost (22 + 23)	020 021	- 16,413,935,375	- 16,284,358,495
Debt securities	022	1,978,784	2,927,431
Loans and advances Derivatives - hedge accounting	023 024	16,411,956,591 -	16,281,431,064 -
Fair value changes of the hedged items in portfolio hedge of interest rate risk	025	-	-
Investments in subsidiaries, joint ventures and associates	026	9,760,843	9,760,843
Tangible assets Intangible assets	027 028	326,523,749 91,038,847	312,854,146 99,837,801
Tax assets	029	2,797,956	1,558,517
Other assets Fixed assets and disposal groups classified as held for sale	030 031	40,321,775 -	31,922,316 -
Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	032	25,462,977,490	27,824,799,114
Liabilities
Financial liabilities held for trading (from 34 to 38)	033	21,172	391
Derivatives Short positions	034 035	21,172 -	391 -
Deposits	036	-	-
Debt securities issued Other financial liabilities	037 038	- -	- -
Financial liabilities at fair value through profit or loss (from 40 to 42)	039	-	-
Deposits Debt securities issued	040	- -	- -
Other financial liabilities	041 042	-	-
Financial liabilities measured at amortised cost (from 44 to 46)	043	22,688,405,792	24,570,388,887
Deposits Debt securities issued	044 045	22,569,135,023 -	24,471,187,058 -
Other financial liabilities	046	119,270,769	99,201,829
Derivatives - hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk	047 048	- -	- -
Provisions	049	125,688,739	344,728,880
Tax liabilities Share capital repayable on demand	050 051	25,697,310 -	69,910,488 -
Other liabilities	052	150,060,287	166,846,127
Liabilities included in disposal groups classified as held for sale Total liabilities (33 + 39 + 43 + from 47 to 53)	053 054	- 22,989,873,300	- 25,151,874,773
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	264,974,555	258,236,341
Retained profit Revaluation reserves	060 061	200,321,464 -	291,352,537 -
Other reserves	062	611,448,026	702,479,098
( - ) Treasury shares	063	(477,000)	(477,000)
Profit or loss attributable to owners of the parent (--) Interim dividends	064 065	182,062,145 -	206,558,365 -
Minority interests [non-controlling interests]	066	-	-
Total equity (from 55 to 66) Total equity and liabilities (54 + 67)	067 068	2,473,104,190 25,462,977,490	2,672,924,341 27,824,799,114

STATEMENT OF PROFIT AND LOSS for the period January 01, 2021 to September 30, 2021
Submitter: Hrvatska poštanska banka p.l.c.					in HRK
Item	AOP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
Interest income	001	441,208,201	146,027,784	424,994,797	137,984,977
(Interest expenses)	002	39,955,739	12,837,421	27,525,552	8,605,898
(Expenses on share capital repayable on demand)	003	-	-	-	-
Dividend received Fees and commissions income	004 005	3,280,842 341,876,343	1,053,562 128,322,789	1,990,067 370,071,010	912,372 151,612,595
(Fees and commissions expenses)	006	208,616,477	77,710,621	221,068,606	91,017,191
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value	007	35,035,565	-	671,022	501,425
through profit or loss, net
Gains or (-) losses on financial assets and liabilities held for trading, net	008	28,643,341	20,827,844	49,558,986	21,837,558
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	216,712	16,685	30,437,951	1,262,389
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 Gains or (-) losses on derecognition of non-financial assets, net	012 013	(7,587,801) -	(931,046) -	(6,156,096) -	(2,040,785) -
Other operating income	014	6,355,898	2,196,348	6,798,717	1,889,306
(Other operating expenses)	015	9,648,144	(13,936,917)	8,417,716	2,502,878
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 14 – 15)	016	590,808,741	220,902,841	621,354,580	211,833,870
(Administrative expenses) (Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	017 018	309,562,403 -	125,897,976 (5,482,500)	284,161,512 10,437,268	92,387,388 3,479,089
(Depreciation)	019	58,111,404	17,768,486	50,251,429	16,527,257
Modification gains or (-) losses, net	020	(3,383,797)	(5,896,267)	(1,978,555)	(520,600)
(Provisions or (-) reversal of provisions)	021	(62,691,595)	(3,061,788)	20,734,420	(1,738,386)
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)	022	83,447,502	17,677,528	1,696,368	26,689,259
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	023	-	-	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	024	-	-	-	-
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	198,995,230	62,206,872	252,095,028	73,968,663
(Tax expense or (-) income related to profit or loss from continuing operations)	029
Profit or (-) loss after tax from continuing operations (27 – 28)		34,046,017	12,232,164	45,536,663	14,086,844
	030	164,949,213	49,974,708	206,558,365	59,881,819
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) Profit or ( – ) loss for the year (29 + 30; 34 + 35)	033	-	-	-	-
Attributable to minority interest [non-controlling interests]	034 035	164,949,213 -	49,974,708 -	206,558,365 -	59,881,819 -
Attributable to owners of the parent	036	164,949,213	49,974,708	206,558,365	59,881,819
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year	037	164,949,213	49,974,708	206,558,365	59,881,819
Other comprehensive income (38 + 50)	038	(91,723,091)	25,631,901	(6,738,214)	9,033,180
Items that will not be reclassified to profit or loss (from 39 to 45) + 48 + 49) Tangible assets	039	-	-	(457,723)	-
Intangible assets	040 041	- -	- -	- -	- -
Actuarial gains or (-) losses on defined benefit pension plans	042	-	-	-	-
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 Fair value changes of equity instruments measured at fair value through other comprehensive income	044 045	- -	- -	- -	- -
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	048	-	-	-	-
[hedging instrument]
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk	049	-	-	-	-
Income tax relating to items that will not be reclassified	050	-	-	(457,723)	-
Items that may be reclassified to profit or loss (from 51 to 58)	051	(91,723,091)	25,631,901	(6,280,491)	9,033,180
Hedge of net investments in foreign operations [effective portion] Foreign currency translation	052 053	- -	- -	- -	- -
Cash flow hedges [effective portion]	054	-	-	-	-
Hedging instruments [not designated elements]	055	-	-	-	-
Debt instruments at fair value through other comprehensive income	056	(111,857,428)	31,258,416	(7,659,135)	11,016,073
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	20,134,337	(5,626,515)	1,378,644	(1,982,893)
Total comprehensive income for the current year (36 + 37; 60 + 61)	060	73,226,122	75,606,609	199,820,151	68,914,999
Attributable to minority interest [non-controlling interest] Attributable to owners of the parent	061 062	- 73,226,122	- 75,606,609	- 199,820,151	- 68,914,999

STATEMENT OF CASH FLOW

for the period January 01, 2021 to September 30, 2021

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

Item	AOP code	Same period of the previous year	Current period
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 (Other expenditures)	007	-	-
	008	-	-
Operating activities - indirect method Profit/(loss) before tax	009	- 198,995,230	- 252,095,028
Adjustments:		-	-
Impairment and provisions	010	24,139,704	24,409,343
Depreciation	011	58,111,404	50,251,429
Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss	012	(56,091,105)	(80,667,959)
(Profit)/loss from the sale of tangible assets	013	-	-
Other non-cash items	014	(262,208,543)	(397,469,245)
Promjene u imovini i obvezama iz poslovnih aktivnosti		-	-
Deposits with the Croatian National Bank	015	318,279,579	(90,596,684)
Deposits with financial institutions and loans to financial institutions	016	-	-
Loans and advances to other clients	017	(1,011,483,817)	217,447,288
Securities and other financial instruments at fair value through other comprehensive income	018	460,670,888	(119,631,681)
Securities and other financial instruments held for trading	019	(78,196,069)	215,789,574
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	-	20,000,000
Securities and other financial instruments at amortised cost	022	1,061,190	(948,647)
Other assets from operating activities	023	13,813,275	8,399,460
Deposits from financial institutions	024	(63,696,447)	39,760,243
Transaction accounts of other clients	025	1,208,021,491	745,778,473
Savings deposits of other clients	026	650,247,498	1,752,877,622
Time deposits of other clients	027	(491,474,706)	(707,349,518)
Derivative financial liabilities and other liabilities held for trading Other liabilities from operating activities	028 029	5,832,393 (3,284,454)	(20,089,721) 215,091,560
Interest received from operating activities [indirect method]	030	296,386,624	384,629,685
Dividends received from operating activities [indirect method]	031	3,280,842	1,990,067
Interest paid from operating activities [indirect method]	032	(34,178,081)	(27,525,552)
(Income tax paid)	033	-	-
Net cash flow from operating activities (from 1 to 33)	034	1,238,226,896	2,484,240,765
Investing activities		-	-
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(53,605,973)	(45,380,780)
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	-	-
Dividends received from investing activities	038	1,061,190	(948,647)
Other receipts/payments from investing activities	039	-	-
Net cash flow from investing activities (from 35 to 39)	040	(52,544,783)	(46,329,427)
Financing activities		-	-
Net increase/(decrease) in loans received from financing activities	041	471,104,153	70,985,216
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	471,104,153	70,985,216
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	1,656,786,266	2,508,896,553
Cash and cash equivalents at the beginning of period	049	3,037,318,898	4,084,192,801
Effect of exchange rate fluctuations on cash and cash equivalents	050	7,587,801	(6,156,096)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	4,701,692,965	6,586,933,258

STATEMENT OF CHANGES IN EQUITY
for the period January 01, 2021 to September 30, 2021															in HRK
							Attributable to owners of the parent						Non-controlling interest
Item	AOP code	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	-	-	-	264,974,555	200,321,464	-	611,448,026	(477,000)	182,062,145	-	-	-	2,473,104,190
Effects of error corrections	002	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Effects of changes in accounting policies	003	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Opening balance [current period] (1 + 2 + 3)	004	1,214,775,000	-	-	-	264,974,555	200,321,464	-	611,448,026	(477,000)	182,062,145	-	-	-	2,473,104,190
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	-	-	-	-	-	91,031,073	-	91,031,073	-	(182,062,146)	-	-	-	-
Share based payments	017	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other increase or ( - ) decrease of equity instruments	018	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Total comprehensive income for the current year	019	-	-	-	-	(6,738,214)	-	-	-	-	206,558,366	-	-	-	199,820,152
Equity instruments increase or (-) decrease resulting from business combinations	020	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	258,236,341	291,352,537	-	702,479,099	(477,000)	206,558,365	-	-	-	2,672,924,342

Notes to financial statements
1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.- 30.09.2020.		Current period 01.01. – 30.09.2021.
	Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	61,418,998 379,576,529	19,641,556 126,386,220	55,780,241 369,205,257	16,439,775 121,539,764
Other assets Deposits	212,673 0	8 0	9,298 0	5,438 0
Other liabilities Total	0 441,208,201	0 146,027,784	0 424,994,797	0 137,984,977
2) INTEREST EXPENSE				in HRK
AOP 002	Same period of the previous year 01.01.-		Current period 01.01. – 30.09.2021.
	30.09.2020. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	0 2,026,595	0 743,988	0 2,605,650	0 1,284,218
Other assets Deposits	0 37,216,595	0 11,869,853	0 24,914,943	0 7,319,968
Other liabilities	712,550	223,581	4,958	1,713
Total	39,955,739	12,837,421	27,525,552	8,605,898
3) FEE AND COMMISSION INCOME	Same period of the previous year 01.01.-			in HRK
AOP 005	30.09.2020. Cumulative	Quarter	Current period 01.01. – 30.09.2021. Cumulative	Quarter
Securities	232,226	40,351	2,265,503	1,520,997
Asset management Custody [according to the type of client]	34,099 3,553,612	10,567 1,207,435	28,468 3,960,593	18,330 2,604,326
Loan commitments Other	58,796 337,997,610	15,795 127,048,641	21,182 363,795,264	15,280 147,453,662
Total	341,876,343	128,322,789	370,071,010	151,612,595
4) FEE AND COMMISSION EXPENSE	Same period of the previous year 01.01.-			in HRK
AOP 006	30.09.2020.		Current period 01.01. – 30.09.2021.
Bank clearing and settlement	Cumulative 1,272,024	Quarter 443,797	Cumulative 1,538,376	Quarter 555,896
Other Total	207,344,453 208,616,477	77,266,824 77,710,621	219,530,230 221,068,606	90,461,295 91,017,191
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES				in HRK
AOP 007	Same period of the previous year 01.01.-		Current period 01.01. – 30.09.2021.
	30.09.2020. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	35,035,565 -	- -	- -	0 -
Deposits Debt Securities issued	- -	- -	- -	- -
Other financial liabilities	-	-	671,021	501,425
Total	35,035,565	0	671,021	501,425
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING	Same period of the previous year 01.01.-			in HRK
AOP 008	30.09.2020. Cumulative	Quarter	Current period 01.01. – 30.09.2021. Cumulative	Quarter
Equity instruments	-	4,975,117	8,457,589	1,320,872
Debt securities FX transactions and derivatives	(12,380,088) 41,023,429	31,808 15,820,919	(2,602,689) 43,704,086	1,484,968 19,031,718
Total	28,643,341	20,827,844	49,558,986	21,837,558
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.- 30.09.2020.		Current period 01.01. – 30.09.2021.
Equity instruments	Cumulative -	Quarter -	Cumulative 30,800,000	Quarter -
Debt securities Loans and advances	- 216,712	- 16,684	- (362,049)	- 1,262,389
Total	216,712	16,684	30,437,951	1,262,389
8) OPERATING EXPENSES				in HRK
AOP 015 & AOP 017 & AOP 018	Same period of the previous year 01.01.- 30.09.2020.		Current period 01.01. – 30.09.2021.
	Cumulative	Quarter	Cumulative	Quarter
Other operating expenses Administrative expenses	9,648,144 278,048,773	7,861,145 94,384,346	8,417,716 284,161,512	2,502,878 92,387,388
Employee expenses Other administrative expenses	166,922,396 111,126,377	57,625,615 36,758,730	171,300,782 112,860,730	55,829,162 36,558,226
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes) Amortization	31,513,630 58,111,404	4,233,069 17,768,486	10,437,268 50,251,429	3,479,089 16,527,257
Property, plant and equipment	22,515,728	979,818	31,501,746	10,226,442
Investment property Other intangible assets	- 35,595,676	- 16,788,668	- 18,749,682	- 6,300,814
Total	377,321,951	124,247,045	353,267,924	114,896,612
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES	Same period of the previous year 01.01.-			in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	30.09.2020.		Current period 01.01. – 30.09.2021.
Modification gains or (-) losses, net	Cumulative (3,383,797)	Quarter (5,896,267)	Cumulative (1,978,555)	Quarter (520,600)
Financial assets at fair value through other comprehensive income Financial assets at amortized cost	- (3,383,797)	- (5,896,267)	- (1,978,555)	- (520,600)
(Provisions or (-) reversal of provisions)	(62,691,595)	(3,061,788)	20,734,420	(1,738,386)
Liabilities towards resolution committees and deposit insurance systems (Liabilities and Guarantees)	- 10,829,653	- (3,020,534)	- 4,668,180	- (2,410,406)
(Other Provisions) (Impairment or (-) reversal of impairment on financial assets that are not	(73,521,248)	(41,255)	16,066,240	672,020
measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income)	83,447,502 676,726	17,677,528 (213,697)	1,696,368 (1,732,177)	26,689,259 (358,967)
(Financial assets at amortized cost)	82,770,776	17,891,226	3,428,546	27,048,226
(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)	- -	- -	- -	- -
(Investment property) (Goodwill)	- -	- -	- -	- -
(Other intangible assets)	-	-	-	-
(Other) Total	- 24,139,704	- 20,512,007	- 24,409,343	- 25,471,473
10) LOANS AND ADVANCES						in HRK
AOP 023	Stage 1	31.12.2020. Stage 2	Stage 3	Stage 1	30.09.2021. Stage 2	Stage 3
Central banks	1,219,156,918	-	-	1,309,753,602	-	-
Gross loans Allowance	1,219,156,918	- - -	- -	1,309,753,602 -	- -	- -
Government Gross loans	2,513,669,837 2,520,514,249	10,294,601 10,456,303	- -	2,177,295,113 2,185,886,084	7,225,342 7,241,406	- -
Allowance Credit institutuions	(6,844,412) 368,510,087	(161,702) -	- -	(8,590,971) 348,686,520	(16,064) -	- -
Gross loans Allowance	57,300	- - 27	- -	96,958 (3)	- -	- -
Deposits	368,996,913	-	-	348,709,410	-	-
Allowance Other financial institutions	(544,154) 179,270,857	- 3,893	- -	(119,845) 172,682,157	- 880	- -
Gross loans Allowance	168,686,297 (584,453)	3,983 (90)	- -	166,165,008 (4,646,412)	931 (51)	- -
Deposits Allowance	11,262,954 (93,941)	- -	- -	11,790,484 (626,923)	- -	- -
Non - financial institutions Gross loans	3,626,480,744 3,752,909,802	422,197,574 480,885,197	636,986,564 1,456,527,825	3,058,100,116 3,136,435,433	780,439,740 858,193,548	606,869,983 1,359,440,292
Allowance	(126,429,057)	(58,687,623)	(819,541,261)	(78,335,317)	(77,753,807)	752,570,309 -
Retail Gross loans	7,022,179,455 7,060,672,678	251,126,985 272,846,699	162,079,076 687,755,861	7,176,851,393 7,213,081,195	409,432,491 435,467,376	234,093,727 813,876,403
Allowance Total	(38,493,224) 14,929,267,898	(21,719,714) 683,623,053	(525,676,785) 799,065,640	(36,229,802)	(26,034,885) 14,243,368,901 1,197,098,453 840,963,710	(579,782,676)
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS						in HRK
AOP 013	31.12.2020.	30.09.2021.
Central banks Local state		- - - -
Credit institutions Other financial institutions		- - - -
Non - financial institutions Retail	5,093,283 13,772,618	3,042,145 6,204,214
Total	18,865,901	9,246,359
12) DEPOSITS						in HRK
AOP 044 Government	31.12.2020. 400,000,000	30.09.2021. 401,537,562
Local state Credit institutions	5,325,746,428 209,013,088	6,353,943,650 114,040,673
Other financial institutions Non - financial institutions	1,397,035,135 3,162,990,953	1,529,916,447 3,808,399,431
Retail	12,074,349,419	12,263,349,295

HPB-R-A stock during the reporting period

Stock data and details

Issue date	December 12 2000 ,
ISIN	HRHPB0RA0002
Segment	Official market of the
	Stock Zagreb Exchange
Listed quantity	2 024 625 , ,
Share price September (in HRK) at 30 2021 as ,	570 00
Market capitalisation (in HRK million)	1 133 79 ,

Shareholders	Ownership stake (%)
Croatia Republic of	42 43
Croatian Post PLC	11 93
Croatian Deposit Insurance Agency	8 98
Croatian Pension Insurance Institute	8 76
Hrvatska poštanska banka p.l – treasury shares .c.	0 04
Other shareholders (each under 5% of share of the equity	capital) 27 86
Total shares	100

Direct channels

Number of users (in ths)

Transaction volume - Mobile banking (in HRK mn)

• Strengthening digital channels in 9M 2021; mobile banking services +10.2% and internet banking +0.4% vs 9M 2020;
• Further increase in mobile banking in the volume for mobile (+51.2%) and internet (+25.8%) banking.

Transaction volume - Internet banking (in HRK mn)

Profitability

Profit development (in HRK mn)

Return on Average Equity ROAE

* Market share data for 9M 2021 not available at the time presentation was published

▪ Better quarterly results when compared to pre-COVID years, mainly driven by increase in net fee income, trading income and reduction of deposit insurance premium.

Asset development

HPB's Asset development (in HRK bn)

Comparative asset growth rates

* Market data were not available for 9M 2021 at the time this presentation was published

• Organic growth continued in 2021;
• Asset growth reciprocated with growth in funding. Increase of liquid assets in 2021 was HRK +2,6 bn;
• LCR (Liquidity Coverage Ratio) as of 30.9.2021 is at 194%.

Accessibility

HPB together with strategic partner Hrvatska Pošta is accessible at over 1,050 locations.

Products and services are offered to our current and potential clients in:

• 51 offices and 6 branch offices for retail clients
• 12 offices for corporate clients

1,016 Post offices

• Payment services and transactions for retail and corporate clients
• Loan services to retail clients in HP financial corner at over 140 locations