Hrvatska Poštanska Banka d.d.

Annual / Quarterly Financial Statement • Mar 31, 2022

HPB Group 2021

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 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 forwardlooking 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:	Consolidated financial statements for the period 1.1.2021 - 31.12.2021, HPB Group 2021 Consolidated 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:	Zagreb Stock Exchage, Official market

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, 2021.

Original and official report is published in Croatian.

The report includes:

3

• Management report of HPB Group,
• Statement by persons responsible for compiling the report,
• Audited 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 the content and structure of the annual issuer's reports (NN 114/2018, 132/2020).

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).

The HPB Group's net profit after tax is HRK 202.6 million. The Group's result relates largely to the results of the parent company, while HPB Invest made a net profit of HRK 831.8 thousand and HPB-Nekretnine a net profit of HRK 585.7 thousand.

Marko Badurina Anto Mihaljević

4

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, 2021, 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

Executive Head of finance division

Marko Badurina

President of the Management Board

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

		ISSUER'S GENERAL DATA
Reporting period:		1.1.2021	to	31.12.2021
Year:		2021
		Annual financial statements
Registration number (MB):	03777928	State code:	Issuer's home Member	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	1315
Consolidated report:	KD	(KN-not consolidated/KD-consolidated)		KD KN
Audited:	RD	(RN-not audited/RD-audited)		RD RN
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
					Yes No
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: BDO Croatia d.o.o.
Certified auditor: Ivan Čajko	(name of the audit firm)
	(name and surname)

BALANCE SHEET as at December 31, 2021
Submitter: Hrvatska poštanska banka p.l.c.			in HRK
Item	AOP code	Last day of the preceding business	At the reporting date of the current period
1	2	year 3	4
Assets
Cash, cash balances at central banks and other demand deposits (from 2 to 4)
	001	3,662,500,484	6,177,641,914
Cash in hand Cash balances at central banks	002 003	900,072,987 2,224,401,393	1,422,548,361 4,339,757,848
Other demand deposits	004	538,026,104	415,335,705
Financial assets held for trading (from 6 to 9) Derivatives	005 006	719,257,423 -	616,670,614 -
Equity instruments	007	95,340,654	105,639,274
Debt securities Loans and advances	008 009	623,916,769 -	511,031,340 -
Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13)	010	38,865,901	9,316,729
Equity instruments	011	20,000,000	-
Debt securities Loans and advances	012 013	- 18,865,901	- 9,316,729
Financial assets at fair value through profit or loss (15 + 16)	014	-	-
Debt securities Loans and advances	015 016	- -	- -
Financial assets at fair value through other comprehensive income (from 18 to 20)	017	4,158,015,469	4,601,319,906
Equity instruments	018	49,027,711	48,896,784
Debt securities Loans and advances	019 020	4,108,987,758 -	4,552,423,122 -
Financial assets at amortised cost (22 + 23)	021	16,413,935,375	15,955,565,325
Debt securities Loans and advances	022 023	1,978,784 16,411,956,591	454,371 15,955,110,954
Derivatives - hedge accounting	024	-	-
Fair value changes of the hedged items in portfolio hedge of interest rate risk Investments in subsidiaries, joint ventures and associates	025 026	- 43	- 43
Tangible assets	027	326,574,638	311,192,057
Intangible assets	028	91,824,941	93,395,736
Tax assets Other assets	029 030	2,797,956 49,114,278	642,640 60,114,393
Fixed assets and disposal groups classified as held for sale	031	-	9,200,000
Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	032	25,462,886,508	27,835,059,357
Liabilities Financial liabilities held for trading (from 34 to 38)
Derivatives	033 034	21,172 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) Deposits	039 040	- -	- -
Debt securities issued	041	-	-
Other financial liabilities Financial liabilities measured at amortised cost (from 44 to 46)	042	-	-
Deposits	043 044	22,680,817,227 22,561,546,458	24,842,134,412 24,747,710,461
Debt securities issued	045	-	-
Other financial liabilities Derivatives - hedge accounting	046 047	119,270,769 -	94,423,951 -
Fair value changes of the hedged items in portfolio hedge of interest rate risk	048	-	-
Provisions Tax liabilities	049 050	125,688,739 25,697,310	89,416,940 64,392,779
Share capital repayable on demand	051	-	-
Other liabilities Liabilities included in disposal groups classified as held for sale	052	151,759,203 -	182,369,233 -
Total liabilities (33 + 39 + 43 + from 47 to 53)	053 054	22,983,983,651	25,178,313,364
Equity
Capital	055	1,214,775,000	1,214,775,000
Share premium Equity instruments issued other than capital	056	-	-
Other equity	057 058	- -	- -
Accumulated other comprehensive income	059	264,974,555	240,193,702
Retained profit Revaluation reserves	060 061	204,798,039 -	297,151,162 -
Other reserves	062	611,448,069	702,479,141
( - ) Treasury shares Profit or loss attributable to owners of the parent	063 064	(477,000) 183,384,194	(477,000) 202,623,988
(--) Interim dividends	065	-	-
Minority interests [non-controlling interests]	066	-	-
Total equity (from 55 to 66) Total equity and liabilities (54 + 67)	067 068	2,478,902,857 25,462,886,508	2,656,745,993 27,835,059,357

STATEMENT OF PROFIT AND LOSS for the period January 01, 2020 to December 31, 2021
Submitter: Hrvatska poštanska banka p.l.c.			in HRK
		Same period of the
Item	AOP code	previous year	Current period
		Cumulative	Cumulative
1	2	3	4
Interest income	001	588,820,078	560,475,854
(Interest expenses) (Expenses on share capital repayable on demand)	002 003	51,590,120 -	36,367,350 -
Dividend received	004	3,292,513	1,143,665
Fees and commissions income	005	459,757,903	492,742,014
(Fees and commissions expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through	006	273,899,127	290,106,697
profit or loss, net	007	35,035,565	671,529
Gains or (-) losses on financial assets and liabilities held for trading, net	008	47,068,263	59,962,657
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	(571,077)	30,491,412
Gains or (-) losses on derecognition of 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	(8,624,819)	(7,592,753)
	013
Gains or (-) losses on derecognition of of investments in subsidiaries, joint ventures and associates, net Gains or (-) losses on derecognition of non-financial assets, net	014	- -	- -
Other operating income	015	13,725,920	20,267,730
(Other operating expenses)	016	14,000,990	19,349,962
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	799,014,109	812,338,099
(Administrative expenses) (Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	018	391,864,512	418,161,923
(Depreciation)	019 020	42,002,367 76,278,177	13,916,357 67,823,078
Modification gains or (-) losses, net	021	(3,386,347)	(4,328,639)
(Provisions or (-) reversal of provisions)	022	(61,671,217)	306,219
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)	023	109,876,155	63,262,189
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	024	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	025	8,711,610	(1,903,399)
Negative goodwill recognised in profit or loss	026	-	-
Share of the profit or (-) losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method	027	-	-
Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as	028	-	-
discontinued operations Profit or (-) loss before tax from continuing operations (17 – 18 to 20 + 21 - from 22 to 25 + from 26
to 28)	029	228,566,158	246,443,093
(Tax expense or (-) income related to profit or loss from continuing operations)	030
Profit or (-) loss after tax from continuing operations (29 – 30)		45,181,964	43,819,105
	031	183,384,194	202,623,988
Profit or (-) loss after tax from discontinued operations (33 – 34)	032	-	-
Profit or (-) loss before tax from discontinued operations (Tax expense or (-) income related to discontinued operations)	033 034	- -	- -
Profit or ( – ) loss for the year (31 + 32; 36 + 37)	035	183,384,194	202,623,988
Attributable to minority interest [non-controlling interests]	036	-	-
Attributable to owners of the parent	037	183,384,194	202,623,988
STATEMENT OF OTHER COMPREHENSIVE INCOME	000
Income or (-) loss for the current year Other comprehensive income (40+ 52)	038	183,384,194	202,623,988
Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	039	(82,538,216) (4,199,151)	(24,780,852) 1,831,095
Tangible assets	040 041	(7,533,354)	6,411,028
Intangible assets	042	-	-
Actuarial gains or (-) losses on defined benefit pension plans	043	1,825,625	(2,968,225)
Fixed assets and disposal groups classified as held for sale	044	-	-
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	045	- -	- -
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive	046 047	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	048	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	049	-	-
Fair value changes of financial liabilities measured at fair value through profit or loss attributable to	050	-	-
Income tax relating to items that will not be reclassified Items that may be reclassified to profit or loss (from 53 to 60)	051	1,508,578 (78,339,065)	(1,611,708) (26,611,947)
Hedge of net investments in foreign operations [effective portion]	052 053	-	-
Foreign currency translation	054	-	-

Cash flow hedges [effective portion] 055 - - Hedging instruments [not designated elements] 056 - - Debt instruments at fair value through other comprehensive income 057 (95,463,311) (32,525,728) Fixed assets and disposal groups classified as held for sale 058 - - Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates ⁰⁵⁹ Income tax relating to items that may be reclassified to profit or (-) loss 060 17,124,246 5,913,781

Total comprehensive income for the current year (38 + 39; 62 + 63) 061 100,845,978 177,843,136 Attributable to minority interest [non-controlling interest] 062 - - Attributable to owners of the parent 063 100,845,978 177,843,136

• -

STATEMENT OF CASH FLOW for the period January 01, 2020 to December 31, 2021

Submitter: Hrvatska poštanska banka p.l.c.			in HRK
Item	AOP	Same period of the	Current period
	code	previous year
1	2	3
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	228,612,358	246,443,093
Adjustments:		-
Impairment and provisions	010	174,933,719	67,897,047
Depreciation	011	76,278,177	67,823,078
Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss	012	(73,479,009)	(91,125,598)
(Profit)/loss from the sale of tangible assets	013	-
Other non-cash items
	014	(537,334,753)	(524,108,504)
Promjene u imovini i obvezama iz poslovnih aktivnosti
Deposits with the Croatian National Bank	015	(280,916,192)	(107,284,615)
Deposits with financial institutions and loans to financial institutions	016	258,280,921
Loans and advances to other clients	017	(1,316,595,951)	496,539,424
Securities and other financial instruments at fair value through other comprehensive income	018	468,611,329	(470,382,081)
Securities and other financial instruments held for trading	019	(65,609,242)	171,790,050
Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	-	50,800,000
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	-
Securities and other financial instruments at amortised cost
	022	2,326,911	1,524,413
Other assets from operating activities	023	3,106,512	(9,818,603)
Deposits from financial institutions	024	105,943,541	(78,058,830)
Transaction accounts of other clients	025	1,255,559,114	913,204,182
Savings deposits of other clients	026	720,175,408	1,918,206,578
Time deposits of other clients	027	(928,046,118)	(773,984,130)
Derivative financial liabilities and other liabilities held for trading	028	5,952,655	(24,867,990)
Other liabilities from operating activities	029	(2,589,926)	244,485,428
Interest received from operating activities [indirect method]	030	588,918,099	553,864,096
Dividends received from operating activities [indirect method]	031	3,280,842	1,143,665
Interest paid from operating activities [indirect method]	032	(51,583,346)	(36,367,350)
(Income tax paid)	033	-
Net cash flow from operating activities (from 1 to 33)	034	635,825,049	2,617,723,353
Investing activities
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(60,106,596)	(63,211,292)
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	2,326,911	1,524,413
Other receipts/payments from investing activities	039	-
Net cash flow from investing activities (from 35 to 39)	040	(57,779,685)	(61,686,879)
Financing activities
Net increase/(decrease) in loans received from financing activities	041	475,822,595	(44,838,724)
Net increase/(decrease) in debt securities issued	042	-
Net increase/(decrease) in Tier 2 capital instruments	043	-
Increase in share capital	044	-
(Dividends paid)
Other receipts/(payments) from financing activities	045	-
Net cash flow from financing activities (from 41 to 46)	046	-
	047	475,822,595	(44,838,724)
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	1,053,867,959	2,511,197,750
Cash and cash equivalents at the beginning of period	049	3,046,578,558	4,091,821,698
Effect of exchange rate fluctuations on cash and cash equivalents	050	(8,624,819)	(7,592,753)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	4,091,821,698	6,595,426,695

in HRK

		Attr ibut able f the to o ent wne rs o par									Non troll ing -con inte rest
Item		Equi ty	Shar e ium prem	Equi ty instr ts umen issue d oth er than ital cap	Equi ty instr ts umen issue d oth er than ital cap	Accu mula ted o ther rehe nsive comp incom e	Reta ined profi t	Reva luati on rese rves	Othe r res erve s	( ) Tr easu ry shar es	Profi t or ( - ) lo ss attrib utab le to rs of the nt owne pare	(-) In terim divid ends	Accu mula t ed ot her rehe Othe comp n sive incom e	r item s	Tota l
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
Ope ning bala [befo t] state nce re re men	001	1,21 4,77 5,00 0	-	-	-	264 ,974 ,555	204 ,798 ,039	-	611 ,448 ,069	(477 ,000 )	183, 384 ,194	-	-	-	2,47 8,90 2,85 7
Effe f err ions cts o rrect or co	002	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Effe f cha in a nting pol icies cts o nges ccou	003	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Ope ning bal e [c erio d] (1 + 2 + 3 ) nt p anc urre	004	1,21 4,77 5,00 0	-	-	-	264 ,974 ,555	204 ,798 ,039	-	611 ,448 ,069	(477 ,000 )	183, 384 ,194	-	-	-	2,47 8,90 2,85 7
Ord inary sha res i ssue	005	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Pref hare s iss eren ce s ue	006	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Issu e of othe uity instr nts r eq ume	007	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Exer cise xpira tion of o ther ity in stru ts is sued or e equ men	008	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Con ion o f rec evia bles quity inst to e ents vers rum	009	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Cap ital r educ tion	010	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Divid ends	011	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Purc hase of t hare reas ury s s	012	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Sale llatio n of sha trea or c ance sury res	013	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Rec lass ifica tion of fi ial in stru ts fr ity to liab ility nanc men om equ	014	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Rec lass ifica tion of fi ial in stru ts fr liabi lity t uity nanc men om o eq	015	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Tran sfers f eq uity nts o am ong com pone	016	-	-	-	-	-	92,3 53,1 23	-	91,0 31,0 72	-	(183 ,384 ,194 )	-	-	-	1
Equ ity in r ( - ) de sulti ng f busi bina tions crea se o crea se re rom ness com	017	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Sha re b ased ts pay men	018	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Othe r inc (-) d in eq uity reas e or ecre ase	019	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Tota l com preh ensi ve in e fo r the rent com cur year	020	-	-	-	-	(24, 780 ,853 )	-	-	-	-	202 ,623 ,988	-	-	-	177, 843 ,135
Clos ing bala [cur iod] (fro to 2 0) rent m 4 nce per	021	1,21 5,00 0 4,77	-	-	-	240 ,193 ,702	297 ,162 ,151	-	702 ,479 ,141	(477 ,000 )	202 ,623 ,988	-	-	-	2,65 6,74 5,99 3

STATEMENT OF CHANGES IN EQUITY

for the period January 01, 2020 to December 31, 2021

Notes to financial statements
1) INTEREST INCOME		in HRK
AOP 001	Same period of the previous year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021
	Cumulative	Cumulative
Debt securities Loans and advances	81,200,505 507,302,008	72,516,026 487,949,750
Other assets Deposits	314,906 2,659	9,298 780
Other liabilities Total	- 588,820,078	- 560,475,854
		in HRK
2) INTEREST EXPENSE AOP 002	Same period of the previous	Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021. Cumulative
Debt securities Loans and advances	- 2,873,661	123,676 4,101,144
Other assets	-	-
Deposits Other liabilities	47,533,458 1,183,001	32,077,254 65,276
Total	51,590,120	36,367,350
3) FEE AND COMMISSION INCOME	Same period of the previous	in HRK Current period
AOP 005	year 01.01.-31.12.2020	01.01. – 31.12.2021.
Securities	Cumulative 3,269,735	Cumulative 3,023,066
Asset management Custody [according to the type of client]	44,754 3,651,553	35,100 5,336,081
Loan commitments Other	72,553 452,719,307	25,465 484,322,302
Total	459,757,903	492,742,014
4) FEE AND COMMISSION EXPENSE		in HRK
AOP 006	Same period of the previous year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021.
Bank clearing and settlement	Cumulative 1,726,624	Cumulative 1,936,040
Other Total	272,172,503	288,170,657 290,106,697
	273,899,127
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES	Same period of the previous	in HRK Current period
AOP 007	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021. Cumulative
Debt securities	35,035,565	-
Loans and advances Deposits	- -	- -
Debt Securities issued Other financial liabilities	- -	- 671,529
Total	35,035,565	671,529
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING		in HRK
AOP 008	Same period of the previous year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021.
	Cumulative	Cumulative 10,326,550
Equity instruments Debt securities	(770,953) (7,006,878)	(7,400,995)
FX transactions and derivatives Total	54,846,094 47,068,263	57,037,101 59,962,657
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
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021. Cumulative
Equity instruments Debt securities	- -	30,800,000 -
Loans and advances Total	(571,077) (571,077)	(308,588) 30,491,412
8) OPERATING EXPENSES		in HRK
AOP 015 & AOP 017 & AOP 018	Same period of the previous	Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021. Cumulative
Other operating expenses Administrative expenses	14,000,990 391,864,512	19,349,961 418,161,923
Employee expenses Other administrative expenses	233,499,673 158,364,839	249,253,627 168,908,296
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	42,002,367	13,916,357
Amortization	76,278,177	67,823,078
Property, plant and equipment Investment property	43,473,575 -	42,643,529 -
Other intangible assets Total	32,804,602 524,146,047	25,179,550 519,251,320
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES		in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous	Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021. Cumulative
Modification gains or (-) losses, net Financial assets at fair value through other comprehensive income	(3,386,347) -	(4,328,639) -
Financial assets at amortized cost (Provisions or (-) reversal of provisions)	(3,386,347) (61,671,217)	(4,328,639) 306,219
(Liabilities and Guarantees)	17,214,299	(16,209,564)
(Other Provisions) (Impairment or (-) reversal of impairment on financial assets that are	(78,885,516)	16,515,783
not measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income)	109,876,155 577,174	63,262,189 6,409,709
(Financial assets at amortized cost) (Impairment or (-) reversal of impairment off of investments in subsidiaries,	109,298,981	56,852,480
joint ventures, and associates)	-	-
(Impairment or (-) reversal of impairment off non-financial assets) (Property, plant and equipment)	8,711,610 8,711,610	(1,903,398) (1,791,199)
(Investment property) (Goodwill)	- -	(112,200) -
(Other intangible assets) (Other)	- -	- -
Total	60,302,895	65,993,648
10) LOANS AND ADVANCES						in HRK
AOP 023	Stage 1	31.12.2020 Stage 2	Stage 3	Stage 1	31.12.2021 Stage 2	Stage 3
Central banks Gross loans	1,219,156,918 1,219,156,918	- -	- -	1,326,441,533 1,326,441,533	- -
Allowance	-	-	-	-	-
Government Gross loans	2,513,669,837 2,520,514,249	10,294,601 10,456,303	- -	3,442,887,361 3,456,836,667	27,214,597 27,813,410	92,006
Allowance Credit institutuions	(6,844,412) 368,510,087	(161,702) -	- -	(13,949,306) 277,890,317	(598,813) -	(92,006)
Gross loans Allowance	57,300 27	- -	- -	117,158 (0)	- -
Deposits	368,996,913	-	-	278,323,532	-
Allowance Other financial institutions	(544,154) 178,937,655	- 3,893	- -	(550,373) 170,320,447	- 122
Gross loans Allowance	168,353,095 (584,453)	3,983 (90)	- -	160,489,050 (2,059,031)	122 (0)
Deposits Allowance	11,262,954 (93,941)	- -	- -	12,188,549 (298,121)	- -
Non - financial institutions	3,626,597,766	422,197,574	636,986,564	1,635,385,261	770,088,173	615,079,209
Gross loans Allowance	3,753,026,824 (126,429,057)	480,885,197 (58,687,623)	1,456,527,825 (819,541,261)	1,661,243,557	836,572,344 (25,858,296) (66,484,172)	1,333,341,814 (718,262,605)
Retail Gross loans	7,022,395,635 7,060,888,859	251,126,985 272,846,699	162,079,076 688,049,269	7,096,378,085 7,190,592,928	372,303,977 413,935,430	221,121,872 831,400,100
Allowance Total	(38,493,224) 14,929,267,898	(21,719,714) 683,623,053	(525,970,193) 799,065,640	13,949,303,005 1,169,606,868	(94,214,842) (41,631,453)	(610,278,228) 836,201,081
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS AOP 013	31.12.2020	31.12.2021				in HRK
Central banks Local state	- -	- -
Credit institutions Other financial institutions	- -	- -
Non - financial institutions	5,093,283	2,895,155
Retail Total	13,772,618 18,865,901	6,421,574 9,316,729
12) DEPOSITS						in HRK
AOP 044 Government	31.12.2020 400,000,000	31.12.2021 401,789,616
Local state	5,325,746,428	6,575,113,951
Credit institutions Other financial institutions	209,013,088 1,397,035,135	103,484,950 1,466,863,467
Non - financial institutions Retail	3,162,990,953 12,074,349,419	3,598,925,458 12,601,533,020
Total	22,569,135,023	24,747,710,461

Hrvatska poštanska banka, p.l.c. 10000 Zagreb, Jurišićeva 4

SUPERVISORY BOARD

Zagreb, March 30 2022

In accordance with the provision of article 21 of the Articles of Association of HPB p.l.c. (hereinaftert: Bank), and in line with Articles 300.c and 300.d of the Companies Act, Supervisory Board of the Bank has on 9. meeting held on March 30 2022 made the following:

RESOLUTION on giving consent to Annual financial statements and consolidated annual financial statements of the Bank and the Group for 2021, comprising also the Management Board's annual report on condition of HPB p.l.c. and its subisidiaries for year 2021

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 2021, comprising also the Management Board's annual report on condition of HPB p.l.c. and its subisidiaries for 2021.

Acceptance is given for Auditor's report by BDO CROATIA d.o.o., Zagreb, Radnička cesta 180, Zagreb. Auditor has conducted the audit of Annual financial statements the Bank and the Group for the year ended December 31 2021.

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 2021 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

HRVATSKA POŠTANSKA BANKA, p.l.c. Zagreb, Jurišićeva 4

Management Board

Zagreb, March 30 2022

Number: UB-220330-2

Pursuant to Article 13 of the Statute of Hrvatska poštanska banka, p.l.c. (hereinafter: the Bank), and in line with Article 220, paragraph 1, Article 222, Article 300 b, paragraph 2 and Article 275, paragraph. 1, item 2 of the Companies Act, the Management Board of the Bank on March 30, 2022, proposes to the Supervisory Board and the General Assembly of the Bank to adopt the following

RESOLUTION on allocation of profit earned in 2021

I.

It is determined that Hrvatska poštanska banka, p.l.c. made a net profit of HRK 202,106,512.95 in the business year ended 31 December 2021.

II.

Pursuant to Article 220 of the Companies Act and the authority referred to in Article 33 of the Bank's Articles of Association, the Bank's Management Board decided on 30 March 2022 to allocate one twentieth of the determined profit from item I of this Decision to legal reserves in the amount of HRK 10,105,325.65.

III.

The remaining amount of determined net profit in the amount of HRK 192,001,187.30, after its distribution from Article II. of this Decision, is allocated to retained earnings.

IV.

Pursuant to Article 220, paragraph 3 of the Companies Act and Article 33 of the Bank's Articles of Association, the previously formed amount of HRK 50,604,741.08 is reallocated from other reserves to retained earnings.

V.

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

Explanation:

The proposed distribution of net profit is in accordance with Articles 220 and 300 b of the Companies Act and the Articles of Association of Hrvatska poštanska banka, p.l.c.

In order for the successful continuity of Bank's operations, profitability and growth within the possibilities area it is necessary to amortize the effects that will affect the capital position of the Bank in the following periods, namely:

• In the transition period of application of IFRS 9 in accordance with EU Regulation 2017/2395 as well as based on the application of deductions for unrealized gains and losses related to assets measured at fair value through other comprehensive income (FVOCI) in accordance with EU Regulation 873/2020 amending Regulation EU 575/2013 and EU 876/2019, the Bank will report HRK 101.2 million of negative effect on regulatory capital by the end of 2023;
• According to the prescribed amount of MREL requirements and deadline for compliance with requirements until January 1, 2024 as well as expected increase in risk-weighted assets based on the merger of Sberbank d.d. – u sanaciji, in future Nova hrvatska banka, the Bank must further strengthen its regulatory capital in the coming periods.

Based on the above stated, the Management Board of the Bank considers it appropriate to propose to the Supervisory Board and the General Assembly to adopt a Resolution on allocating 5% of net profit for 2021 to legal reserves and the remaining net profit in 2021 to retained earnings.

Given that the Bank has achieved the legal maximum in accordance with Article 220, paragraph 3 of the Companies Act, and other reserves reached the amount of half of the share capital, ie HRK 607,387,500.00, it is proposed to reallocate previously formed amount of HRK 50,604,741.08 from other reserves to retained earnings.

President of the Management Board Marko Badurina

Distribute to:

• 1. Supervisory Board
• 1. Finance Management Department
• 1. Archive of the Management Office

SUPERVISORY BOARD

Zagreb, March 30 2022

Temeljem članka 21. Statuta Hrvatske poštanske banke, dioničko društvo (dalje: Banka), a u svezi s člankom 300.b i člankom 275. stavak 1. točka 2. Zakona o trgovačkim društvima, Nadzorni odbor Banke na svojoj 9. sjednici održanoj dana 30. ožujka 2022. godine donio je sljedeću

Pursuant to the provision of Article 21 of the Articles of Association of HPB p.l.c. (hereinafter: 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 on 9. meeting held on March 30 2022, made the following:

RESOLUTION on allocation of Bank's profit earned in 2021

I.

Bank's Supervisory Board gives its consent and accepts Management Board's proposal on allocation of profit earned in 2021, which is a constitent 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 2021 is considered to be confirmed.

III.

Supervisory Board proposes to General Assembly to vote in favour of allocation of profit earned in 2021 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