Hrvatska Poštanska Banka d.d.

Annual / Quarterly Financial Statement • Mar 31, 2022

HPB d.d. 2021

Investor information and audited financial statements

Limitation of liability

• The information and data contained in this presentation are intended to be general background information on Hrvatska poštanska banka p.l.c. (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:	Financial statements for the period 1.1.2021 - 31.12.2021, HPB d.d. 2021 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. publishes audited financial statements for the period from January 1 to December 31, 2021.

Original and official 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
• Audited 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 the content and structure of the annual issuer's reports (NN 114/2018, 132/2020).

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

We are creating conditions for a better life in Croatia

We volunteer for Croatia

We volunteer in the earthquake-affected areas, participate in the action of cleaning ragweed and furnishing the center for education

Plant with HPB

Ecological Croatia afforestation project - planting 30,000 seedlings of indigenous tree species for HPB's 30 years at 7 locations throughout Croatia

*Data as of 30.9.2021

5

** Pro forma CET 1 with included H2 2021 net profit

Source: HPB management reports

Promoting financial literacy

Video series of financial education (LinkedIn)

APN loans

We support young people who are buying or building their home

Feel the harmony

We provided a series of free concerts of Zagreb Soloists to our citizens in Osijek, Split, Rijeka, Varaždin and Zagreb

Sustainability and corporate social responsibility

6

*ESG = environmental, social , governance

Sustainability and corporate social responsibility

		ENVIRONMENTAL			SOCIAL			GOVERNANCE
d s e e et ti pl vi m ti c o a C	My green decision	Plant with HPB	Three environmental	Service quality and availability	Employees development	Community	Anti-corruption policies	ESG risk management	Governance
	An initiative to raise awareness of the importance of waste management	Ecological volunteer action in which 30,000 seedlings of indigenous tree species were planted throughout Croatia in accordance with the expert advice of Hrvatske šume	KPIs Managing factors with direct impact on the environment: Reduced paper, electricity and water consumption. Publication within the revised AFS 31.3.2022.	Availability of financial services and encouragement of local community development: Bank in Post Office in more than 1,000 locations. Digitization: E-office always available to citizens	E-classroom - online education of employees. Data nursery - data literacy program. HPB Sport - attractive sports programs. Equality, inclusiveness and diversity - guidelines in human resource management.	Educational series HPB promoting financial literacy. Corporate volunteer program Volunteer for Croatia	Implementation of the Conflict-of Interest Management Policy for transparent business.	Analysis of Bank's portfolio and ESG risks. Mapping collateral according to physical risks.	HPB wins Corporate Governance Award in the Official Market of Zagreb Stock Exchange for 2020

The Bank initiates the implementation of sustainability factors through six segments, and by defining priority activities for each segment:

1. Strategy	2. Management	3. Risk	4. Policies	5. Reporting system	6. Products
Materiality assessment	Defining roles of Management Board and directors	Redesign of data management models and creation of methodologies	Integration of ESG factors into all relevant acts	Establishment of a new non-financial report; developing a holistic approach	Evaluation of the existing portfolio and defining guidelines for future development
Measuring the impact of ESG risk on Bank's operations	Integration of the organizational structure of ESG management	Inclusion of environmental and climatological risks in risk policies	Close cooperation with stakeholders and all third parties	Publications based on the management of ESG factors
Establishment of a Establishing three-line defense environmental KPIs model		Establishing monitoring and mitigation of environmental and climatological risks

Ongoing activities

Sustainability and corporate social responsibility Plan 2022

• KRI: key risk indicator
• KPI: key performance indicator

Record profit after tax in 30-year history

Further progress across strategic pillars

• Largest banking business network through own branch offices and post offices – project Bank in Post Office; HPB and HP concluded new Framework agreement on strategic partnership and outsourcing;
• Record net profit in 30-year history (HRK +20 mn vs. 2020); improved C/I performance indicator (-1.8 pp vs. 2020), adequate and sustainable ROAE (+0.4 pp vs. 2020);
• Established data infrastructure for Bank's further growth and development through intensive internal projects.

Stable capital position

▪ High level of capital adequacy places the Bank at the top of banking institutions in the Republic of Croatia.

Strong growth in 2021

• Asset increase HRK +2.4 bn in 2021;
• Improved portfolio quality with NPL ratio excluding 100% government guaranteed exposures on historically lowest level.

2018 2019 2020 2021

• Income statement items are shown in cumulative from start of the period until the reporting date; cumulative 01.01 – 31.12;
• Balance sheet items are shown as at reporting date; 31.12.

Key Financials 2021

Operating profit (in HRK mn)

Growth driven by increase in net fee income, trading and other income with slightly lower operating expenses.

Profit after tax (in HRK mn)

Record profit after tax driven by operating profit.

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

CET 1 capital ratio (in %)

High capitalisation level.

*Pro forma CET 1 ratio with inclusion of H2 2021 net profit

• Income statement items are shown in cumulative from start of the period until the reporting date; cumulative 1.1-31.12;
• Balance sheet items are shown as at reporting date; 31.12.

Highest profit after tax in history

		31 12 2019	31 12 2020	31 12 2021 *
Assets	HRK mn	23 844 ,	25 500 ,	27 861 5 ,
Net loans to customers	HRK mn	13 341 ,	14 725 ,	14 243 6 ,
Deposits	HRK mn	20 069 ,	21 214 ,	23 191 5 ,
Equity	HRK mn	2 370 ,	2 473 ,	2 650 5 ,
CET 1 capital ratio	%	20 2	21 8	25 7 5
NPL ratio	%	10 8	10 4	9 8 6
NPL ratio excl. 100% gov. guaranteed exposure	%	10 4	8 7	8 4 6
NPL coverage	%	67 5	62 2	61 1 6
NPL excl. 100% coverage gov. guaranteed exposure	%	70 0	74 2	72 1 6

	1 1	.-31 12 2019	1 1 .-31 12 2020	1 1 .-31 12 2021
Income	HRK mn	1 227 ,	1 121 ,	1 143 ,	5
Net profit	HRK mn	144	182	202	5
Cost-to-income ratio	%	61 3	64 1	62 3	6
Return equity (ROE) on	%	6 1	7 4	6 7	5

Results by business segments as of 31.12.2021

11

Market share by total assets as of 30.9.2021 (in HRK bn)

Corporate Financial market SME

Retail

Other

Result after tax - Due to methodological changes under IFRS 9, reallocation of provisions and one-off effects had largest negative impact on the retail segment, and a positive one on the corporate and SME segments.

Gross loans development

Gross loans (in HRK mn)

• Retail loans increase supported by higher housing loans (HRK +578.4 mn or +15.5%) representing stable upward trend;
• Financing corporate, central and local government through 2021 has been driven by a recovery from COVID-19 pandemic and strong price competition in the banking sector;
• The central government realized a significant part of its financial needs on the market by issuing bonds;
• The absence of significant investments affected the impossibility of expanding lending activities in the large corporate segment.

Subsidised Housing Loans

0% 5% 10% 15% 20% 25% 30% 35%

Number of approved subsidised housing loans

• 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000

• Bank's share in APN loans is significantly above its market share;

• Bank participates in subsidised housing loan program since 2017;
• In the last, sixth, round, the Bank approved HRK 270.4 mn APN loans.

* Sourcehttps://mgipu.gov.hr/

^** In 2020, two APN tranches were conducted

Portfolio quality improves

NPL ratio development (in %)

NPL coverage development (in %)

12,8 11,7 10,8 10,4 9,8 12,8 11,6 10,4 8,7 8,4 2017 2018 2019 2020 2021 NPL NPL (excl. 100% gov. guar. exp.) * As of 30.9.2021

Market NPL ratio* 4.7% Market NPL coverage* 63.2%

• NPL ratio continues long-term positive trend as a result of collection activities and reduction of non-performing exposures which in combination with increase of performing placements leads to historically lowest level of NPL ratio;
• Excluding 100% government guaranteed exposures, NPL share is at the lowest level in the history;
• NPL coverage is still at a high level and if we exclude 100% government guaranteed exposures NPL coverage is significantly above the market average.

Strong NPL coverage

	2018	2019	2020	2021
HRK mn	18 820 ,	18 599 ,	20 792 ,	22 294 ,
HRK mn	2 201 ,	2 009 ,	2 163 ,	2 174 ,
%	11 7	10 8	10 4	9 8
HRK mn	(1 632) ,	(1 554) ,	(1 599) ,	(1 575) ,
HRK mn	(1 481) ,	(1 355) ,	(1 346) ,	(1 329) ,
HRK mn	(151)	(199)	(254)	(246)
%	67 3	67 5	62 2	61 1
HRK mn	569	455	563	599
HRK mn	0	76	356	341
HRK mn	569	379	207	258
HRK mn	1 777 ,	2 209 ,	2 314 ,	2 631 ,
%	32 0	17 2	8 9	9 8

*CET 1 with inclusion of H1 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;
• NPL coverage by total provisions is 72.4%.

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Economic indicators (y-o-y)

Source: Croatian Bureau of Statistics https://www.dzs.hr/eng (September, November and December 2021)

2020 2021

Number of accounts* (in mn)

29/03/2022

*Source:https://www.porezna-uprava.hr/Dokumenti (data for 2019, 2020 and 2021) "I- ACCOMMODATION AND FOOD SERVICE ACTIVITIES " 17

COVID-19 measures

• HRK 4 mn (0.9% total approved) in retail segment remaining moratoria as at 31.12.2021; while there is no remaining moratoria in corporate segment;
• Total defaulted loans since moratoria approval at 31.12.2021 amounted HRK 195 mn (6.4% corporate, 16.1% retail in total approved moratoria);
• As at 31.12.2021 total expired moratoria in the amount HRK 1.5 bn status performing.

Source: HPB management reports

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Key financials – Income statement

		Q4 2020	Q4 2020	∆ q-o-q	2020	2021	∆ y-o-y
Net interest income	HRK mn	138	128	(9 8) 6	543	529	(13 5) 6
Net fee income	HRK mn	43	44	0 9 5	176	193	16 6 5
Operating income	HRK mn	200	192	(8 1) 6	804	826	21 8 5
Operating expense	HRK mn	(137)	(157)	20 6 5	(515)	(514)	(0 6) 6
Operating profit	HRK mn	64	35	(28 7) 6	289	312	22 4 5
Provisioning	HRK mn	(36)	(41)	6 5 5	(62)	(66)	3 7 5
Net profit	HRK mn	17	(4)	(21 6) 6	182	202	20 1 5
Cost -to-income ratio	%	68 2	81 8	13 6 5	64 1	62 3	(1 8) 6
Net interest margin	%	2 2	1 9	(0 3) 6	2 2	2 0	(0 2) 6

▪ Negative impact events in Q4 2021:

• Introduction of COVID-19 measures limited the access to the Bank for a significant number of clients, as the only bank under these measures on the market; caused additional costs (physical protection, employee testing, etc.);
• Significant impact of operating expenses on the last quarter due to the intensive activities initiated on all regulatory projects (EURO, MREL, ESG, etc.)
• NII lower by 2.5% due to decreased loan portfolio, lower market interest rates and strong price competition on banking market; interest expenses management in 2021 (-36.8%) did not neutralise decrease in interest income (-5.0%) vs PY;
• Higher NFCI +9.7% 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 Q4 2019 level (HRK 44 mn Q4 2019);
• Operating profit growth (+22.4 mn) as a result of higher NFCI, trading and other income, followed by slightly lower operating expenses due to reduction of deposit insurance premium and lower depreciation;
• Highest net profit in 30-year history.

Operating profit development

Operating profit development (in HRK mn)

• Increase in other income driven by trading income (sale of equity instruments during Q2 2021);
• Operating expenses slightly decreased mainly due to lower depreciation and deposit insurance premium.

Net income development

Composition of net income

• Higher net fee income as a result of increased fees from credit card transactions, regained its prepandemic level in H2 2021 (HRK 44 mn Q4 2019);
• Despite savings on expense side (HRK -15.7 mn), net interest income lower vs PY mostly due to the intense price competition on the market;

Net fee income (in HRK mn)

Net interest income (in HRK mn)

Fees and commissions

Net fee income overview (in HRK mn)

Composition of net fee and commission income by sales segments

* Market data available for 9M 2021

▪ NFCI in the last two quarters regained its pre-COVID levels;

• Increase in net fee and commision 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 +44.0%);
• HPB net fee income on par with the banking sector with a relatively stable share.

Source: HPB management reports

Operating expenses

Composition of operating expenses (in HRK mn)

2020 2021

• Operating expenses slightly lower (HRK 1 mn or 0.1%) 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 increased (+11.0%) due to the timely addresing regulatory requirements and improvements of Bank's processes in order to eliminate technological debt:
  • consulting services for initiated regulatory projects (Euro, MREL),
  • migration to Visa brand,
  • write-offs,
  • renovation of earthquake-damaged buildings and
  • costs caused by COVID-19 pandemic (disinfection of business premises and COVID certificates).
• Source: HPB management reports 24

231

Employee expenses

Provisioning

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

• Stage 1&2 movement under positive impact of portfolio development in relation to risk profile in 2021 (higher share of retail housing loans and shortterm borrowings to institutions representing liquid asset) compared to 2020, which was marked by impact of COVID-19;
• Lower stage 3 provisions (y-o-y) solely due to the revenues from increased NPL collection activities;
• Regular legal cases provisions;
• Release of other provisions is the result of assets value adjustment.

Key financials – Balance sheet

		31 12 2020	31 12 2021	ytd ∆
Assets	HRK mn	25 500 ,	27 861 ,	5 2 361 ,
Gross loans	HRK mn	16 232 ,	15 727 ,	6 (505)
Deposits	HRK mn	21 214 ,	23 191 ,	5 1 977 ,
Equity	HRK mn	2 473 ,	2 650 ,	5 177
Regulatory capital	HRK mn	2 312 ,	2 631 ,	5 319
Loan/deposit ratio	%	69 4	61 4	6 (8 0)
ROAE	%	7 5	7 9	5 0 4
NPL ratio	%	10 4	9 8	6 (0 7)
NPL ratio excl 100% guaranteed gov. exposure	%	8 7	8 4	6 (0 4)
NPL coverage	%	62 2	61 1	6 (1 1)
NPL excl 100% guaranteed coverage gov. exposure	%	74 2	72 1	6 (2 1)
Loss allowance for loans	HRK mn	(1 599) ,	(1 575) ,	6 (25)

• Assets records continuous growth +9.3% ytd as a result of increase in liquid assets +47.8% primarily due to continuous increase in deposits; securities increased +6.5% while gross loans decreased -3.1%;
• Deposits up +9.3% with largest increase in SMEs +22.0%, the central state and large corporate segment +20.7%, and retail +1.9%.

Corporate portfolio industry distribution

Corporate gross loans per industry (in %)

• Recovery of the corporate segment in 2021 due to the received aid as a result of the COVID-19 pandemic;
• Corporate lending activity is primarily focused on loans for liquid assets and refinancing of existing liabilities, while lending to development projects has been significantly slowed down or postponed;
• Public administration and defense segment realized a significant part of its financial needs in the market by issuing bonds in 2021;
• Accommodation activities lending was done backed up by government guarantee schemes.

Composition of equity and liabilities

• 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 83.2% share
  • Bank holds 5.92% of all deposits on a market at 30.11.2021 (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's liquidity remains at a high level with a significantly low loan-to-deposit ratio and highest liquidity coverage ratio in recent history (183%);
• High share of customer deposits (83.2%) in financing mix.

Continuously strong capital position

• Total capital adequacy ratio is higher compared to PY (+ 3.82 pp) mainly due to higher regulatory capital as a result of H2 2020 and H1 2021 net profit recognition;
• Pro forma CET1 calculation includes H2 2021 net profit.

Source: HPB management reports 30

500

1.000

1.500

2.000

2.500

3.000

1 Executive Summary

2 Macroeconomic environment

31

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 2021 net profit

Source: HPB management reports

RWA Development

RWA development (in HRK mn)

▪ Risk-weighted assets decreased only in the credit risk segment due to collateral optimization and decrease in NPE.

Meeting MREL requirements

Actual CET1 ratios vs. total MREL requirement

• The Bank has adopted plan to meet MREL requirements during H1 2021;
• Bank's total capital ratio above first binding transitional MREL requirement.

^* Pro forma CET 1 ratio with inclusion of H2 2021 net profit

		31 12 2020				31 12 2021
Segment	Stage	Exposure	Exposure excluding100 % government guarantees	Coverage	Coverage without 100% government guarantees	Exposure	Exposure excluding 100% government guarantees	Coverage	Coverage excluding100% government guarantees
CORPORATE	S 1	58 5%		3 8%		45 9%		1 4%
CORPORATE	S 2	6 8%		8 1%		18 2%		7 6%
CORPORATE	S 3	34 7%	21 7%	47 7%	2% 75	35 9%	25 8%	47 8%	7% 75
SME	S 1	49 3%		4 2%		41 4%		1 8%
SME	S 2	16 8%		15 5%		26 6%		8 2%
SME	S 3	33 9%	33 9%	71 3%	71 3%	31 9%	31 9%	66 7%	66 7%
STATE	S 1	98 7%		1 0%		98 6%		0 4%
STATE	S 2	1 3%		2% 7		1 4%		2 9%
STATE	S 3	0 0%	0 0%	0 0%	0 0%	0 0%	0 0%	2 0%	* 2 0%
RETAIL	S 1	88 5%		0 5%		86 1%		1 3%
RETAIL	S 2	3 2%		7 6%		4 4%		10 8%
RETAIL	S 3	8 3%	8 3%	75 6%	75 6%	9 5%	9 5%	72 7%	72 7%
TOTAL	S 1	85 9%		1 0%		84 5%		0 7%
TOTAL	S 2	3 7%		10 5%		7% 5		8 5%
TOTAL	S 3	10 4%	8 7%	62 2%	74 2%	9 8%	8 4%	61 1%	72 0%

*Relates to the exposure below HRK 0.5 mn.

1 Executive Summary

2 Macroeconomic environment

36

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 December 31, 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 audited financial statements for the period from January 01 to December 31, 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

	ISSUER'S GENERAL DATA
Reporting period:	1.1.2021	to	31.12.2021
Year:	2021
	Annual financial statements
03777928 Registration number (MB):	State code:	Issuer's home Member	HRVATSKA
Entity's registration 080010698 number (MBS):
Personal identification 87939104217 number (OIB):		LEI:	529900D5G4V6THXC5P79
319 Institution code:
Name of the issuer: HRVATSKA POŠTANSKA BANKA, p.l.c.
10000 Postcode and town:		ZAGREB
Street and house number: JURIŠIĆEVA 4
E-mail address: hpb@hpb.hr
Web address: www.hpb.hr
Number of employees 1289 (end of the reporting
Consolidated report: KN	(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:
				Yes
Bookkeeping firm: No	(Yes/No)			No
Contact person: Tea Bažant			(name of the bookkeeping firm)
Telephone: 014804670	(only name and surname of the contact person)
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, 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	3,662,460,152	6,177,602,131
Cash in hand	002	900,072,987	1,422,548,361
Cash balances at central banks	003	2,224,401,393	4,339,757,848
Other demand deposits Financial assets held for trading (from 6 to 9)	004	537,985,772 719,257,423	415,295,922 616,670,614
Derivatives	005 006	-	-
Equity instruments Debt securities	007	95,340,654 623,916,769	105,639,274 511,031,340
Loans and advances	008 009	-	-
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 Debt securities	011 012	20,000,000 -	- -
Loans and advances	013	18,865,901	9,316,729
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	4,601,319,906 48,896,784
Debt securities	019	4,108,987,758	4,552,423,122
Loans and advances Financial assets at amortised cost (22 + 23)	020 021	- 16,413,935,375	- 15,955,565,325
Debt securities	022	1,978,784	454,371
Loans and advances	023	16,411,956,591	15,955,110,954
Derivatives - hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk	024 025	- -	- -
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	310,680,257 93,319,300
Tax assets	029	2,797,956	642,640
Other assets Fixed assets and disposal groups classified as held for sale	030 031	40,321,775 -	51,761,294 9,200,000
Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	032	25,462,977,490	27,835,839,039
Liabilities
Financial liabilities held for trading (from 34 to 38)	033	21,172	-
Derivatives Short positions	034 035	21,172 -	- -
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	24,851,379,590
Deposits Debt securities issued	044 045	22,569,135,023 -	24,756,955,639 -
Other financial liabilities	046	119,270,769	94,423,951
Derivatives - hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk	047 048	- -	- -
Provisions	049	125,688,739	89,416,940
Tax liabilities Share capital repayable on demand	050 051	25,697,310 -	64,392,779 -
Other liabilities	052	150,060,287	180,219,880
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	- 25,185,409,189
Equity
Capital	055	1,214,775,000	1,214,775,000
Share premium	056	-	-
Equity instruments issued other than capital Other equity	057 058	- -	- -
Accumulated other comprehensive income	059	264,974,555	240,193,702
Retained profit Revaluation reserves	060 061	200,321,464 -	291,352,537 -
Other reserves	062	611,448,026	702,479,098
( - ) Treasury shares Profit or loss attributable to owners of the parent	063 064	(477,000) 182,062,145	(477,000) 202,106,513
(--) Interim dividends	065	-	-
Minority interests [non-controlling interests] Total equity (from 55 to 66)	066 067	- 2,473,104,190	- 2,650,429,850
Total equity and liabilities (54 + 67)	068	25,462,977,490	27,835,839,039

for the period January 01, 2020 to December 31, 2021
Submitter: Hrvatska poštanska banka p.l.c.		in HRK

Item	AOP code	Same period of the previous year	Current period
		Cumulative	Cumulative
1	2	3	4
Interest income	001	588,918,099	560,475,074
(Interest expenses)	002	51,583,346	36,363,820
(Expenses on share capital repayable on demand)	003	-	-
Dividend received	004	3,292,513	2,043,665
Fees and commissions income	005	450,155,698	482,976,369
(Fees and commissions expenses)	006	273,888,635	290,099,614
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through	007	35,035,565	671,529
profit or loss, net
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)
Gains or (-) losses on derecognition of of investments in subsidiaries, joint ventures and associates, net	013	-	-
Gains or (-) losses on derecognition of non-financial assets, net	014	-	-
Other operating income	015	10,448,879	18,529,530
(Other operating expenses)	016	13,223,239	19,815,032
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	787,027,901	801,279,017
(Administrative expenses)	018	381,956,776	408,674,319
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes) (Depreciation)	019	42,002,367 75,816,110	13,916,357 67,020,386
Modification gains or (-) losses, net	020 021	(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	027	-	-
using the equity method
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
		226,949,753	245,674,307
(Tax expense or (-) income related to profit or loss from continuing operations)	030
Profit or (-) loss after tax from continuing operations (29 – 30)		44,887,608	43,567,794
	031	182,062,145	202,106,513
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	- 182,062,145	- 202,106,513
Attributable to minority interest [non-controlling interests] Attributable to owners of the parent	036 037	- 182,062,145	- 202,106,513
STATEMENT OF OTHER COMPREHENSIVE INCOME	000
Income or (-) loss for the current year	038	182,062,145	202,106,513
Other comprehensive income (40+ 52)	039	(82,538,216)	(24,780,853)
Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	040	(4,199,151)	1,831,095
Tangible assets	041	(7,533,354)	6,411,028
Intangible assets	042	-	-
Actuarial gains or (-) losses on defined benefit pension plans Fixed assets and disposal groups classified as held for sale	043	1,825,625	(2,968,225)
Share of other recognised income and expense of entities accounted for using the equity method	044 045	- -	- -
Fair value changes of equity instruments measured at fair value through other comprehensive income	046	-	-
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive	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	051	1,508,578	(1,611,708)
Items that may be reclassified to profit or loss (from 53 to 60)	052	(78,339,065)	(26,611,948)
Hedge of net investments in foreign operations [effective portion]	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 Share of other recognised income and expense of investments in subsidiaries, joint ventures and	058	-	-
associates	059	-	-
Income tax relating to items that may be reclassified to profit or (-) loss	060	17,124,246	5,913,780
Total comprehensive income for the current year (38 + 39; 62 + 63)	061	99,523,929	177,325,660
Attributable to minority interest [non-controlling interest]	062	-	-
Attributable to owners of the parent	063	99,523,929	177,325,660

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 (Other expenditures)	007	-
	008	-
Operating activities - indirect method Profit/(loss) before tax
Adjustments:	009	227,124,253 -	245,674,307
Impairment and provisions	010	174,933,719	67,897,047
Depreciation	011	74,952,898	67,020,386
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)	(524,111,254)
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	258,285,873
Loans and advances to other clients	017	(1,316,301,519)	496,539,424
Securities and other financial instruments at fair value through other comprehensive income	018	468,611,329	(470,130,770)
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	-
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	-	50,800,000
Securities and other financial instruments at amortised cost	022	2,326,911	1,524,413
Other assets from operating activities	023	2,682,650	(10,258,008)
Deposits from financial institutions Transaction accounts of other clients	024	105,943,541	(78,058,830)
Savings deposits of other clients	025	1,255,559,114	914,860,795
Time deposits of other clients	026 027	720,175,408 (928,046,118)	1,918,206,578 (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	862,044	244,034,990
Interest received from operating activities [indirect method]	030	588,918,099	552,108,813
Dividends received from operating activities [indirect method]	031	3,280,842	2,043,665
Interest paid from operating activities [indirect method]	032	(51,583,346)	(36,363,820)
(Income tax paid)	033	-
Net cash flow from operating activities (from 1 to 33)	034	636,339,157	2,616,315,453
Investing activities
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(58,989,941)	(62,657,347)
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	(56,663,030)	(61,132,934)
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)	045	-
Other receipts/(payments) from financing activities	046	-
Net cash flow from financing activities (from 41 to 46)	047	475,822,595	(44,838,724)
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	1,055,498,722	2,510,343,795
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	(8,624,819)	(7,592,753)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	4,084,192,801	6,586,943,843

in HRK

		Non troll ing -con Attr ibut able f the to o ent wne rs o par inte rest
Item	AOP cod e	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 Othe rehe 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	200 ,321 ,464	-	611 ,448 ,026	(477 ,000 )	182, 062 ,145	-	-	-	2,47 3,10 4,19 0
Effe cts o f err rrect ions or co	002	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Effe f cha in a nting pol icies cts o nges ccou	003	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Ope ning bal e [c nt p erio d] (1 + 2 + 3 ) anc urre	004	1,21 4,77 5,00 0	-	-	-	264 ,974 ,555	200 ,321 ,464	-	611 ,448 ,026	(477 ,000 )	182, 062 ,145	-	-	-	2,47 3,10 4,19 0
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 ts fr ity to liab ility stru 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	-	-	-	-	-	91,0 31,0 73	-	91,0 31,0 73	-	(182 ,062 ,145 )	-	-	-	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 ,106 ,513	-	-	-	177, 325 ,660
Clos ing bala [cur iod] (fro m 4 to 2 0) rent nce per	021	1,21 4,77 5,00 0	-	-	-	240 ,193 ,702	291 ,352 ,537	-	702 ,479 ,099	(477 ,000 )	202 ,106 ,513	-	-	-	2,65 0,42 9,85 1

STATEMENT OF CHANGES IN EQUITY

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

Notes to financial statements
1) INTEREST INCOME		in HRK Current period
AOP 001	Same period of the previous year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021 Cumulative
Debt securities Loans and advances	81,200,505 507,402,688	72,516,026 487,949,750
Other assets Deposits	314,906 -	9,298 -
Other liabilities Total	- 588,918,099	- 560,475,074
2) INTEREST EXPENSE		in HRK
AOP 002	Same period of the previous year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021
Debt securities	Cumulative -	Cumulative 123,676
Loans and advances Other assets	2,873,659 -	4,101,084 -
Deposits Other liabilities	47,526,686 1,183,001	32,077,317 61,743
Total	51,583,346	36,363,820
3) FEE AND COMMISSION INCOME AOP 005	Same period of the previous	in HRK Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021 Cumulative
Securities Asset management	3,269,735 44,754	3,023,066 35,100
Custody [according to the type of client] Loan commitments	3,651,553 72,553	5,336,081 25,465
Other Total	443,117,102 450,155,698	474,556,657 482,976,369
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	272,162,011 273,888,635	288,163,574 290,099,614
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES		in HRK
AOP 007	Same period of the previous year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021
Debt securities	Cumulative 35,035,565	Cumulative -
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 AOP 008	Same period of the previous	in HRK Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021 Cumulative
Equity instruments Debt securities	(770,953) (7,006,878)	10,326,550 (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 year 01.01.-31.12.2020	Current period 01.01. – 31.12.2021
Equity instruments	Cumulative -	Cumulative 30,800,000
Debt securities Loans and advances	- (571,077)	- (308,588)
Total	(571,077)	30,491,412
8) OPERATING EXPENSES AOP 015 & AOP 017 & AOP 018	Same period of the previous	in HRK Current period
	year 01.01.-31.12.2020 Cumulative	01.01. – 31.12.2021 Cumulative
Other operating expenses Administrative expenses	13,223,239 381,956,776	19,815,032 408,674,319
Employee expenses Other administrative expenses	227,865,502 154,091,274	243,899,806 164,774,513
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	42,002,367	13,916,357
Amortization Property, plant and equipment	75,816,110 43,011,508	67,020,386 41,840,837
Investment property Other intangible assets	- 32,804,602	- 25,179,550
Total	512,998,493	509,426,095
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous	in HRK 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) (Other Provisions)	17,214,299 (78,885,516)	(16,209,564) 16,515,783
(Impairment or (-) reversal of impairment on financial assets that are not measured at fair value through profit or loss)	109,876,155	63,262,189
(Financial assets at fair value through other comprehensive income) (Financial assets at amortized cost)	577,174 109,298,981	6,409,709 56,852,480
(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)	8,711,610 -	(1,903,399) (1,791,199)
(Investment property) (Goodwill)	8,711,610 -	(112,200) -
(Other intangible assets) (Other)	- -	- -
Total	60,302,895	65,993,647
10) LOANS AND ADVANCES AOP 023		31.12.2020			31.12.2021	in HRK
Central banks	Stage 1	Stage 2 -	Stage 3 -	Stage 1 1,219,156,918	Stage 2 -	Stage 3
Gross loans Allowance	1,219,156,918 -	- -	- -	1,326,441,533 -	- -
Government Gross loans	3,964,782,989	32,372,813	92,659	3,456,836,667	27,813,410	92,006
Allowance Credit institutuions	(22,581,024)	(1,410,896)	(92,014)	(13,949,306)	(598,813)	(92,006)
Gross loans Allowance	57,300 27	- -	- -	117,158 (0)	- -
Deposits Allowance	368,996,913 (544,154)	- -	- -	278,323,532 (550,373)	- -
Other financial institutions Gross loans	168,686,297	3,983	-	160,489,050	122
Allowance Deposits	(584,453) 11,262,954	(90) -	- -	(2,059,031) 12,188,549	- -
Allowance Non - financial institutions	(93,941)	-	-	(298,121)	-
Gross loans Allowance	2,308,641,061 (110,692,446)	458,968,687 (57,438,429)	1,456,435,166 (819,449,247)	1,661,243,557	836,572,344 (25,858,296) (66,484,172)	1,333,341,814 (718,262,605)
Retail Gross loans	7,060,672,678	272,846,699	687,755,861	7,190,592,928	413,935,430	831,400,100
Allowance Total	(38,493,224) 14,929,267,898	(21,719,714) 683,623,053	(525,676,785) 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						in HRK
AOP 013 Central banks	31.12.2020 -	31.12.2021 -
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 Credit institutions	5,325,746,428 209,013,088	6,575,113,951 103,484,950
Other financial institutions Non - financial institutions	1,397,035,135 3,162,990,953	1,472,818,860 3,602,215,243
Retail Total	12,074,349,419 22,569,135,023	12,601,533,019 24,756,955,639

HPB-R-A stock during the reporting period

Stock data and details

Issue date	December 12 2000 ,
ISIN	Official HRHPB0RA0002 market of the
Segment	Zagreb Stock Exchange
Listed quantity	2 024 625 , ,
Share September (in HRK) price 30 2021 at as ,	730 00
Market capitalisation (in HRK million)	1 477 98 ,

Shareholders	Ownership stake (%)
Republic of Croatia	44 90
Croatian Post PLC	11 93
Croatian Deposit Insurance Agency	8 98
Croatian Pension Insurance Institute	8 76
poštanska Hrvatska banka p.l – treasury shares .c.	0 04
Other shareholders (each under of share of the 5%	equity capital) 25 39
Total shares	100 00

Direct channels

2020 2021

• Continuous growth in digital channels with focus on m-banking; m-banking users + 9.3% and transaction volume + 50.9% vs 12M 2020;
• M-banking is primary digital channel for retail clients (80 %);
• Further increase in e-banking users (+ 1.5%) and transaction volume (+ 30.8%) vs 12M 2020;
• E-banking is primary digital channel for corporate clients (82%).

Transaction volume - Mobile banking (in HRK mn)

Transaction volume - Internet banking (in HRK mn)

Profitability

Profit development (in HRK mn)

Return on Average Equity ROAE

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

▪ Highest net profit in 30-year history as a result of increase in NCFI, trading and other 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 2021 at the time this presentation was published

• Bank's growth continued in 2021, asset up HRK + 2.4 bn;
• LCR (Liquidity Coverage Ratio) as of 31.12.2021 is at 183%.

HPB together with strategic partner Hrvatska pošta is accessible at over 1,000 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.

Post offices

• Payment services in HRK and contracting Bank's products and services in 1,015 post offices for retail clients while services for corporate clients are available at 987 locations;
• Loan services to retail clients in HP financial corner at 142 locations.

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