Hrvatska Poštanska Banka d.d.

Interim / Quarterly Report • Oct 28, 2022

HPB Group 9M 2022

Investor information and unaudited Financial statements

Limitation of liability

• The information and data contained in this presentation are intended to be general background information on Hrvatska poštanska banka p.l.c. as the parent company of the Hrvatska poštanska banka Group (hereinafter referred to as the Bank, Group or HPB 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 1.1.2022 - 30.9.2022, HPB Group 9M 2022 Investor information and unaudited Financial statements
Issuer name, headquarter and address:	Hrvatska poštanska banka p.l.c., Jurišićeva ulica 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 Exchange, 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 unaudited financial statements for the period from January 1 to September 30, 2022.

Original and official quarterly report is published in Croatian.

The report includes:

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

Financial statements and notes have been compiled in accordance with instructions defined in Rulebook on the content and structure of the issuer's reports for periods during the year (NN 114/2018, 27/2021, 26/2022).

HPB Group's strong growth supported by new acquisitions

• HPB Group was significantly strengthened by the acquisition of Nova hrvatska banka d.d. and Pronam Nekretnine d.o.o. in 2022
• On April 14, 2022, HPB took control over NHB and on July 4, 2022, acquired 100% ownership share in company Pronam Nekretnine d.o.o.
• Acquisition of ownership share in Pronam Nekretinine d.o.o. and receivable rights that Sberbank Europe AG (SBAG) has towards Pronam Nekretnine and NHB marks the end of loan and deposit relationship of NHB and thus HPB Group with SBAG
• Merging process of Pronam Nekretnine d.o.o. with parent company is underway, and is expected to close in 2022

• Intensive acquisition activities of NHB continued, and integration with the parent company is expected in 2023

• Consolidated unaudited financial statements include the financial result of NHB from the acquisition date (April 14, 2022) to the reporting date (September 30, 2022), while other subsidiaries are exempted from consolidation in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance in these financial statements

• This report contains all data available and known at the time of creation and the aforementioned circumstances may have an impact on the content of the report.

Continuation of intensive activities for NHB integration until the end of 2023

1 Executive Summary

2 Macroeconomic environment

3 Financials

HPB Group achieved a record net profit

• The third quarter was marked by an increase in assets of HRK 3.4 bn in all segments of the gross loan portfolio, which was followed by a strong growth in total deposits
• Realized record net profit at the consolidated level as a result of gains from the bargain purchase and continued profit generation of the parent company
• Continuation of intensive integration activities of NHB as one of the key priorities of both banks
• By acquiring Pronam Nekretnine d.o.o. on July 4, loan and deposit relationship of HPB Group with SBAG ended
• Bank signed the Code of Ethics of the Ministry of Economy and Sustainable Development with the aim of reliable and transparent exchange of HRK with EUR currency

Consolidated data HPB and NHB 30. 9. 2022.

NHB made significant contribution to Group's results, with improved asset quality

Source: Nova hrvatska banka d.d., management reports as of 30.9.2022 or for the period 14.4. – 30.9.2022 and HPB management reports; financial indicators as of 30.9.2022 or for the period 1.1. – 30.9.2022.

HPB Group stride towards the Top 5 banks

		30. 6. 2022.	30. 9. 2022.
Assets	HRK mn	37,922	41,273
Net loand to cistomers	HRK mn	21,909	22,688
Deposits	HRK mn	31,049	34,760
Equity	HRK mn	3,345	3,326
NPL ratio	%	6.9	6.3
NPL coverage	%	74.4	76.5

		1. 1. - 30. 6. 2022.	1. 1. - 30. 9. 2022.
Income	HRK mn	587	991
Net profit	HRK mn	1,066	1,122
Cost-to-income ratio	%	75.6	71.1
Return on equity (ROE)	%	31.9	33.7

9

Market share by total assets as of 30.6.2022 (in HRK bn)

* Include consolidated data HPB + NHB as of 30.6.2022

▪ Historically highest level of assets reached with an increase of HRK 3.4 bn in this quarter

• Achieved funding synergies the acquisition of HPB enabled financial stability and stopped the initial outflow of NHB deposits caused by the Russian invasion of Ukraine; deposit growth in all segments exceeded HRK 3.7 bn
• Improved quality of HPB Group's loan portfolio as a result of the effect of efficient collection and recovery of part of the portfolio, with effective cost management; NPL coverage significantly above the market level
• Source: HPB management reports ▪ Realized record net profit at the consolidated level as a result of the gain on bargain purchase and realized operating profit of HPB

Efficient utilization of the loan portfolio development potential

• The realized growth of gross loan portfolio in all segments in Q3 in the amount of HRK 1.0 bn, mostly in retail and corporate and government segment, is the result of successfully implemented acquisition activities
• Gross retail loans dominate the total loans with the share of 53.1%, as a result of HPB's strategic focus on this segment, with favorable financing conditions, especially in APN tranches in which HPB has a significant share, and in 2022 it achieved a historic result in terms of the number of processed and approved loans

Improved loan portfolio quality

		30. 6. 2022	30. 9. 2022
Exposure (total loans)	HRK mn	31,497	34,466
Total NPL stock	HRK mn	2,182	2,160
NPL %	%	6.9	6.3
Loss allowance for loans	HRK mn	(1,964)	(2,012)
NPL provision	HRK mn	(1,623)	(1,652)
PL provision	HRK mn	(340)	(361)
NPL Coverage	%	74.4	76.5
NPLs not covered by provisions	HRK mn	218	148

• Effective management of the loan portfolio with determined collection enabled the maximization of these effects on the reduction of the NPL ratio despite the growth of the total volume of loans
• NPL coverage significantly above market average in RH

1 Executive Summary

2 Macroeconomic environment

3 Financials

Economic indicators (y-o-y)

Source: Croatian Bureau of Statistics https://www.dzs.hr/eng (June, July, August and September 2022)

Fiscalization system data

*Source:https://www.porezna-uprava.hr/Dokumenti (data for 9M 2020, 2021 and 2022) "I- ACCOMMODATION AND FOOD SERVICE ACTIVITIES " 13

27/10/2022 "G- WHOLESALE AND RETAIL TRADE OF MOTOR VEHICLES AND MOTORCYCLES, REPAIR OF MOTOR VEHICLES AND MOTORCYCLES "

1 Executive Summary

2 Macroeconomic environment

3 Financials

Record net profit of HRK 1.1 bn

Extremely strong quarter with operating profit HRK 98.2 million

		6M 2022	9M 2022
Net interest income	HRK mn	320	520
Net fee income	HRK mn	114	195
Net trading income	HRK mn	(29)	(24)
Net other income	HRK mn	0	(9)
Operating income	HRK mn	406	682
Employee expenses	HRK mn	(148)	(236)
Administrative expenses	HRK mn	(114)	(182)
Depreciation	HRK mn	(30)	(49)
Deposit insurance	HRK mn	(15)	(17)
Operating expenses	HRK mn	(307)	(485)
Operating profit	HRK mn	99	197
Bargain purchase (badwill)	HRK mn	1 019 ,	1 019 ,
Provisioning	HRK mn	(60)	(93)
Net profit	HRK mn	1 066 ,	1 122 ,
Cost-to-income ratio	%	75 6	71 1
Return (ROA) on asset	%	2 8	3 0
Return on equity (ROE)	%	31 9	33 6

Operating profit development in Q3 2022 (in HRK mn)

Consolidated data are not fully comparable, considering that the NHB's results are shown in the total consolidated result exclusively for the period starting from April 14, 2022, while HPB's results of HPB are shown from January 1, 2022, until the reporting date

• Record net profit of HPB Group of HRK 1.1 bn as a result of a bargain purchase resulting from the difference between the fair value of the acquired net assets of NHB and the acquisition cost
• Net interest income and net commissions and fees income are the key drivers of the realized operating profit in the third quarter of 2022 in the amount of HRK 98.2 mn
• Net loss from trading (trading HRK 62.8 million, FX trading + HRK 39.1 million) under the strong influence of inflation and the rise in reference interest rates of central banks, which led to a decrease in the price of securities and an increase in the yield on them
• Operating expenses under the influence of intensive regulatory projects, acquisition activities, general price growth due to rising inflation, which is mainly reflected in the increase in prices of energy products and suppliers, as well as the optimization of HPB Group's IT infrastructure and processes
• Cost of provisioning is a result of changes in methodology and parameters for provisioning calculation to align with the group policy, as well as increased provisions for legal
• 15
• Source: HPB management reports

cases

Realized financial synergies are additional growth potential

Composition of operating expenses (in HRK mn) 30. 9. 2022.

Source: HPB management reports

Structure of net provision expenses

Structure of net provision expenses (in HRK mn) 30. 9. 2022

• Stage 1&2 affected by changes in methodology and parameters of calculation of NHB's expected credit losses with group policy
• Other provisions are mostly related to legal cases

Historical level of assets in amount of HRK 41.3 bn

		30. 6. 2022	30. 9. 2022.
Liquid assets	HRK mn	9,088	11,619
Securities	HRK mn	6,093	6,077
Gross loans	HRK mn	23,727	24,541
Net loans	HRK mn	21,909	22,688
Other assets	HRK mn	831	890
Total assets	HRK mn	37,922	41,273
Deposits	HRK mn	31,049	34,760
Loan liabilities	HRK mn	2,692	2,366
Other liabilities	HRK mn	837	822
Total liabilities	HRK mn	34,577	37,947
Paid-in capital	HRK mn	1,215	1,215
Accumulated other comprehensive income	HRK mn	(126)	(202)
Retained earnings or loss carried forward	HRK mn	488	528
Other reserves	HRK mn	702	662
Profit or loss for the year	HRK mn	47	104
Badwill (Gain on bargain purchase)	HRK mn	1,019	1,019
Equity and reserves	HRK mn	3,345	3,326
Loan-to-deposit ratio	%	70.6	65.3
NPL ratio	%	6.9	6.3
NPL coverage	%	74.4	76.5

• 30. 6. 2022 30. 9. 2022.
• HPB Group reached the historically highest level of assets, which confirms that it is a challenger that the competition must count on
• An increase in assets generated by an increase in deposits, where inflows were retained in the form of liquid instruments (+27.8%) due to the time lag until utilization
• Increase in the volume and quality of the loan portfolio
• A slight decrease in capital due to lower prices of securities in the portfolio of HPB Group

HPB Group without significant exposure to entities from Russia, Belarus and Ukraine

• In response to Russian aggression against Ukraine, numerous countries of the world, including members of the European Union, introduced sanctions against Russia and Belarus
• HPB has implemented and continues to monitor changes in EU restrictive measures (sanctions), especially in the area of financial services
• NHB, and thus HPB Group, has no exposure to Sber Group as of September 30, 2022.

HPB has no exposure to entities in Ukraine and Belarus, and has minimal exposure to entities in Russia (0.00001%)

NHB has low exposure to entities in Russia, Ukraine and Belarus (balance sheet 0.03% and off-balance sheet 0.28%)

We follow and support the needs of the Croatian economy

* Hrvatske autoceste are included in construction industry, with a share of 56.1% in the total exposure

HPB Group is a safe and reliable partner in deposit business

• Customer deposits are key financing source (84.0%); a vista deposits dominate in the structure of HPB's deposits (84.6%), while in the NHB's structure term deposits make up the majority (59.0%) due to longer fixed terms and attractive interest rates
• In the third quarter, a strong increase in deposits of HRK 3.7 billion (+12.0%) was recorded in all segments: corporate + HRK 3.0 billion (+20.7%), retail + HRK 525.9 million (+3.4%) and financial institutions + HRK 136.8 million (+16.2%)
• Other liabilities relate primarily to loans received from credit institutions CBRD, CNB repo loans and foreign financial institutions.

Financial and liquidity position in the HPB Group maintained stable

• Loan-to-deposit ratio decreased at the consolidated level by 5.3 p.p. compared to the previous quarter due to increased inflow of deposits after a temporary deposits outflow at the end of the first and beginning of the second quarter due to the impact of the geopolitical situation in Europe on NHB's
• Improved liquidity position of the Group with solid liquidity reserves and consolidated (HPB and NHB) liquidity coverage ratio of 149.0%
• Customer deposits dominate funding mix with a share of 84.0%

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

In accordance with the Capital Market Act, the Management Board of HPB p.l.c., the parent company of HPB Group, states that according to their best knowledge the set of consolidated unaudited financial statements for the period from January 1 to September 30, 2022, 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:

Marko Badurina

President of the Management Board

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

Management report

HPB Group is, apart from the parent company – Hrvatska poštanska Banka p.l.c., consisted of Nova hrvatska banka (credit institution), HPB Invest (investment fund management), HPB-nekretnine (real estate agency) and Pronam Nekretnine (real estate agency).

The HPB Group's net profit after tax is HRK 1,123.1 million. The Group's result mostly relates to the gains from bargain purchase of Nova hrvatska banka in the amount of HRK 1,018.8 million. Individual result of the parent company amounts to HRK 126.4 million net profit. On individual basis Nova hrvatska banka realized a net loss of HRK 55.4 million, HPB Invest a net loss of HRK 156.5 thousand, HPB-Nekretnine a net profit of HRK 1.6 million and Pronam Nekretnine d.o.o. net profit of HRK 5.7 million.

Marko Badurina Anto Mihaljević

President of the Management Board Member of the Management Board

Ivan Soldo

Member of the Management Board

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	do	30.9.2022
Year:		2022
Quarter:		3
		Quarterly financial statements
Registration number (MB):	03777928		Issuer's home Member State code:	HRVATSKA
Entity's registration number (MBS):	080010698
Personal identification number (OIB):	87939104217		LEI:	529900D5G4V6THXC5P79
Institution code:	319
	Name of the issuer: HRVATSKA POŠTANSKA BANKA, p.l.c.
Postcode and town:	10000		ZAGREB
Street and house number: JURIŠIĆEVA STREET 4
E-mail address: hpb@hpb.hr
Web address: www.hpb.hr
Number of employees (end of the reporting	1804
Consolidated report:	KD	(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:
HPB Invest d.o.o.		Strojarska 20, 10000 Zagreb			01972278
HPB-nekretnine d.o.o.		Ulica Milana Amruša 8, 10000 Zagreb			01972260
Nova hrvatska banka d.d.		Varšavska ulica 9, 10000 Zagreb			080126398
Pronam Nekretnine d.o.o.		Varšavska ulica 9, 10000 Zagreb			01600826
Bookkeeping firm:	No	(Yes/No)			Yes No
Contact person: Filip Siladi				(name of the bookkeeping firm)
	(only name and surname of the contact person) Telephone: 014804670
	E-mail address: filip.siladi@hpb.hr
Audit firm:
Certified auditor:	(name of the audit firm)
	(name and surname)

BALANCE SHEET as at September 30, 2022
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	6,177,641,914	9,500,951,595
Cash in hand	002	1,422,548,361	1,857,280,209
Cash balances at central banks Other demand deposits	003 004	4,339,757,848 415,335,705	7,534,355,852 109,315,534
Financial assets held for trading (from 6 to 9)	005	616,670,614	497,702,019
Derivatives	006	-	2,285,706
Equity instruments Debt securities	007 008	105,639,274 511,031,340	90,939,262 404,477,051
Loans and advances	009	-	-
Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13)	010	9,316,729	8,538,527
Equity instruments Debt securities	011 012	- -	- -
Loans and advances	013	9,316,729	8,538,527
Financial assets at fair value through profit or loss (15 + 16)	014	-	-
Debt securities Loans and advances	015	- -	- -
Financial assets at fair value through other comprehensive income (from 18 to 20)	016 017	4,601,319,906	3,415,576,093
Equity instruments	018	48,896,784	29,120,553
Debt securities Loans and advances	019	4,552,423,122	3,386,455,540
Financial assets at amortised cost (22 + 23)	020 021	- 15,955,565,325	- 26,929,142,293
Debt securities	022	454,371	2,165,271,610
Loans and advances	023	15,955,110,954	24,763,870,683
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	43	43
Tangible assets	027	311,192,057	436,268,208
Intangible assets Tax assets	028 029	93,395,736 642,640	235,458,176 157,167,690
Other assets	030	60,114,393	89,972,812
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	27,835,059,357	41,270,777,456
Liabilities
Financial liabilities held for trading (from 34 to 38)	033	-	777,882
Derivatives Short positions	034 035	- -	777,882 -
Deposits	036	-	-
Debt securities issued	037	-	-
Other financial liabilities Financial liabilities at fair value through profit or loss (from 40 to 42)	038 039	- -	- -
Deposits	040	-	-
Debt securities issued	041	-	-
Other financial liabilities Financial liabilities measured at amortised cost (from 44 to 46)	042	- 24,842,134,412	- 37,265,196,349
Deposits	043 044	24,747,710,461	37,117,294,371
Debt securities issued	045	-	-
Other financial liabilities	046	94,423,951	147,901,978
Derivatives - hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk	047 048	- -	- -
Provisions	049	89,416,940	354,614,420
Tax liabilities	050	64,392,779	26,354,124
Share capital repayable on demand Other liabilities	051 052	- 182,369,233	- 291,047,768
Liabilities included in disposal groups classified as held for sale	053	-	-
Total liabilities (33 + 39 + 43 + from 47 to 53)	054	25,178,313,364	37,937,990,543
Equity
Capital	055	1,214,775,000	1,214,775,000
Share premium Equity instruments issued other than capital	056 057	- -	- -
Other equity	058	-	-
Accumulated other comprehensive income	059	240,193,702	(201,609,239)
Retained profit Revaluation reserves	060	297,151,162 -	534,492,251 -
Other reserves	061 062	702,479,141	661,979,726
( - ) Treasury shares	063	(477,000)	-
Profit or loss attributable to owners of the parent	064	202,623,988	1,123,149,175
(--) Interim dividends Minority interests [non-controlling interests]	065 066	- -	- -
Total equity (from 55 to 66)	067	2,656,745,993	3,332,786,913
Total equity and liabilities (54 + 67)	068	27,835,059,357	41,270,777,456

STATEMENT OF PROFIT AND LOSS for the period January 01, 2022 to September 30, 2022
Submitter: Hrvatska poštanska banka p.l.c.					in HRK
Item	AOP	Same period of the previous		Current period
	code	year Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
Interest income	001	424,995,365	137,985,219	559,665,462	215,459,190
(Interest expenses)	002	27,529,230	8,607,616	44,080,466	17,263,043
(Expenses on share capital repayable on demand) Dividend income	003 004	- 1,090,067	- 12,372	- 1,132,975	- 42,291
Fees and commissions income	005	377,253,242	154,111,615	446,257,273	186,078,258
(Fees and commissions expenses)	006	221,074,343	91,018,509	245,918,684	104,102,656
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	007	671,022	501,425	2,286,048	-
Gains or (-) losses on financial assets and liabilities held for trading, net	008	49,558,986	21,837,558	(16,715,423)	7,680,614
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	30,437,951	1,262,389	193,467	69,394
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	(6,156,096)	(2,040,786)	(15,938,214)	(4,810,884)
Gains or (-) losses on derecognition of investments in subsidiaries, joint ventures and associates, net Gains or (-) losses on derecognition of non-financial assets, net	013 014	- -	- -	- 960	- -
Other operating income	015	8,429,974	2,255,444	40,525,680	19,141,185
(Other operating expenses)	016	8,385,063	2,678,394	20,811,051	13,451,457
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	629,291,875	213,620,717	706,598,027	288,842,892
(Administrative expenses) (Cash contributions to resolution boards and deposit guarantee schemes )	018 019	291,086,496 10,437,268	94,591,073 3,479,089	433,293,601 17,292,045	166,276,645 2,373,901
(Depreciation)	020	50,842,016	16,715,884	71,715,456	27,453,645
Modification gains or (-) losses, net	021	(1,978,555)	(520,601)	(2,859,520)	806,924
(Provisions or (-) reversal of provisions)	022	20,734,420	(1,738,386)	(1,804,920)	(15,462,812)
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)	023	1,696,368	26,689,259	65,451,537	37,581,192
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	024	-	-	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	025	-	-	6,528,347	470,883
Negative goodwill recognised in profit or loss	026	-	-	1,013,130,658	(5,634,491)
Share of the profit or (-) loss 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 discontinued operations	028	-	-	-	-
Profit or (-) loss before tax from continuing operations (17 – 18 to 20 + 21 – from 22 to 25 + from	029
26 to 28)		252,516,752	73,363,197	1,124,393,099	65,321,871
(Tax expense or (-) income related to profit or loss from continuing operations)	030	45,780,184	14,139,973	1,243,924	8,783,549
Profit or (-) loss after tax from continuing operations (29 – 30)	031	206,736,568	59,223,224	1,123,149,175	56,538,322
Profit or (-) loss after tax from discontinued operations (33 – 34)	032	-	-	-	-
Profit or (-) loss before tax from discontinued operations	033	-	-	-	-
(Tax expense or (-) income related to discontinued operations) Profit or ( – ) loss for the year (31 + 32; 36 + 37)	034	-	-	-	-
Attributable to minority interest [non-controlling interests]	035 036	206,736,568 -	59,223,224 -	1,123,149,175 -	56,538,322 -
Attributable to owners of the parent	037	206,736,568	59,223,224	1,123,149,175	56,538,322
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year Other comprehensive income (40 + 52)	038 039	206,736,568 (6,738,213)	59,223,224 9,033,181	1,123,149,175 (441,802,941)	56,538,322 (103,028,994)
Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	040	(457,723)	-	-	-
Tangible assets	041	-	-	-	-
Intangible assets	042	-	-	-	-
Actuarial gains or (-) losses on defined benefit pension plans	043	-	-	-	-
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	045 046	- -	- -	- -	- -
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive
income, net	047	-	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item]	048	-	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income	049
[hedging instrument]		-	-	-	-
Fair value changes of financial liabilities measured at fair value through profit or loss attributable to changes in their credit risk	050	-	-	-	-
Income tax relating to items that will not be reclassified	051	(457,723)	-	-	-
Items that may be reclassified to profit or loss (from 53 to 60)	052	(6,280,490)	9,033,181	(441,802,941)	(103,028,994)
Hedge of net investments in foreign operations [effective portion]	053	-	-	-	-
Foreign currency translation Cash flow hedges [effective portion]	054 055	- -	- -	- -	- -
Hedging instruments [not designated elements]	056	-	-	-	-
Debt instruments at fair value through other comprehensive income	057	(7,659,135)	11,016,073	(539,737,494)	(126,090,803)
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	1,378,645	(1,982,892)	97,934,553	23,061,809
Total comprehensive income for the current year (38 + 39; 62 + 63)	061	199,998,355	68,256,405	681,346,234	(46,490,672)
Attributable to minority interest [non-controlling interest] Attributable to owners of the parent	062 063	- 199,998,355	- 68,256,405	- 681,346,234	- (46,490,672)

AOP Same period of the Item Current period code previous year 1 2 3 4 Operating activities - direct method Interest received and similar receipts 001 - - Fees and commissions received 002 - - (Interest paid and similar expenditures) 003 - - (Fees and commissions paid) 004 - - (Operating expenses paid) 005 - - Net gains/losses from financial instruments at fair value through statement of profit or loss 006 - - Other receipts 007 - - (Other expenditures) 008 - - Operating activities - indirect method Profit/(loss) before tax 009 252,516,752 1,124,393,099 Adjustments: - - Impairment and provisions 010 24,409,343 66,506,137 Depreciation 011 50,842,016 71,715,456 012 (80,667,959) 14,235,908 Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss (Profit)/loss from the sale of tangible assets 013 - - Other non-cash items 014 (397,466,135) (515,584,996) Promjene u imovini i obvezama iz poslovnih aktivnosti Deposits with the Croatian National Bank 015 (90,596,684) 455,954,460 Deposits with financial institutions and loans to financial institutions 016 - - Loans and advances to other clients 017 217,447,288 (9,610,714,854) Securities and other financial instruments at fair value through other comprehensive income 018 (119,875,202) 550,419,291 Securities and other financial instruments held for trading 019 215,789,573 103,224,841 Securities and other financial instruments at fair value through statement of profit or loss, not traded 020 20,000,000 - 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 (948,647) (2,164,817,239) Other assets from operating activities 023 9,004,299 (31,039,932) Deposits from financial institutions 024 39,760,243 353,656,123 Transaction accounts of other clients 025 744,912,975 8,166,573,990 Savings deposits of other clients 026 1,752,877,622 4,486,816,740 Time deposits of other clients 027 (707,349,518) (453,268,678) Derivative financial liabilities and other liabilities held for trading 028 (20,089,720) 54,255,909 Other liabilities from operating activities 029 215,011,912 111,682,060 Interest received from operating activities [indirect method] 030 386,395,751 559,665,462 Dividends received from operating activities [indirect method] 031 1,090,067 1,132,975 Interest paid from operating activities [indirect method] 032 (27,529,230) (44,080,466) (Income tax paid) 033 - (5,782,313) Net cash flow from operating activities (from 1 to 33) 034 2,485,534,746 3,294,943,973 Investing activities Cash receipts from the sale / payments for the purchase of tangible and intangible assets 035 (45,810,222) (329,654,047) Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint 036 - - ventures Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to 037 - - maturity Dividends received from investing activities 038 (948,647) - Other receipts/payments from investing activities 039 - - Net cash flow from investing activities (from 35 to 39) 040 (46,758,869) (329,654,047) Financing activities Net increase/(decrease) in loans received from financing activities 041 70,985,216 199,565,990 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 - 681,600 Net cash flow from financing activities (from 41 to 46) 047 70,985,216 200,247,590 Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47) 048 2,509,761,093 3,165,537,516 Cash and cash equivalents at the beginning of period 049 4,091,821,698 6,509,079,497 Effect of exchange rate fluctuations on cash and cash equivalents 050 (6,156,096) (15,938,214) Cash and cash equivalents at the end of period (48 + 49 + 50) 051 6,595,426,695 9,658,678,799	for the period January 01, 2022 to September 30, 2022 Submitter: Hrvatska poštanska banka p.l.c.		in HRK

STATEMENT OF CASH FLOW

STATEMENT OF CHANGES IN EQUITY for the period January 01, 2022 to September 30, 2022														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 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 Other items sive income	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	-	-	-	240,193,702	297,151,162	-	702,479,141	(477,000)	202,623,987	-	-	- 2,656,745,992
Effects of error corrections	002	-	-	-	-	-	(5,782,313)	-	-	-	-	-	-	- (5,782,313)
Effects of changes in accounting policies	003	-	-	-	-	-	-	-	-	-	-	-	-	- -
Opening balance [current period] (1 + 2 + 3)	004	1,214,775,000	-	-	-	240,193,702	291,368,849	-	702,479,141	(477,000)	202,623,987	-	-	- 2,650,963,679
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 receviables to equity instruments	009	-	-	-	-	-	-	-	-	-	-	-	-	- -
Capital reduction	010	-	-	-	-	-	-	-	-	-	-	-	-	- -
Dividends	011	-	-	-	-	-	-	-	-	(204,600)	-	-	-	- (204,600)
Purchase 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	016	-	-	-	-	-	243,123,402	-	(40,499,415)	-	(202,623,989)	-	-	- (2)
Equity increase or ( - ) decrease resulting from business combinations	017	-	-	-	-	-	-	-	-	-	-	-	-	- -
Share based payments	018	-	-	-	-	-	-	-	-	681,600	-	-	-	- 681,600
Other increase or (-) decrease in equity	019	-	-	-	-	-	-	-	-	-	-	-	-	- -
Total comprehensive income for the current year	020	-	-	-	-	(441,802,941)	-	-	-	-	1,123,149,175	-	-	- 681,346,234
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	(201,609,239)	534,492,251	-	661,979,726	-	1,123,149,173	-	-	- 3,332,786,911

Notes to financial statements
1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.-30.09.2021.		Current period 01.01. – 30.09.2022.
Debt securities	Cumulative 55,780,241	Quarter 16,439,775	Cumulative 60,095,690	Quarter 21,380,839
Loans and advances Other assets Deposits	369,205,257 9,298 568	121,539,764 5,438 242	499,355,945 134,684 79,143	194,027,014 8 51,330
Other liabilities Total	- 424,995,365	- 137,985,219	- 559,665,462	- 215,459,190
2) INTEREST EXPENSE				in HRK
AOP 002	Same period of the previous year 01.01.-30.09.2021.		Current period 01.01. – 30.09.2022.
Debt securities	Cumulative -	Quarter -	Cumulative -	Quarter -
Loans and advances Other assets	2,605,710 -	1,284,221 -	5,759,489 -	2,172,318 -
Deposits Other liabilities	24,914,895 8,624	7,319,952 3,444	38,070,095 250,882	15,023,615 67,111
Total	27,529,230	8,607,616	44,080,466	17,263,043 in HRK
3) FEE AND COMMISSION INCOME AOP 005	Same period of the previous year		Current period 01.01. – 30.09.2022.
	01.01.-30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Securities Asset management	2,265,503 28,468	808,236 6,826	2,646,732 18,312	954,899 5,983
Custody [according to the type of client] Loan commitments Other	3,960,593 21,182 370,977,496	1,374,375 3,887 151,918,292	3,766,352 1,237,124 438,588,752	1,247,538 721,964 183,147,874
Total	377,253,242	154,111,615	446,257,272	186,078,258
4) FEE AND COMMISSION EXPENSE	Same period of the previous year			in HRK
AOP 006	01.01.-30.09.2021. Cumulative	Quarter	Current period 01.01. – 30.09.2022. Cumulative	Quarter
Bank clearing and settlement Other	1,538,376 219,535,967	555,896 90,462,613	10,351,115 235,567,569	4,864,761 99,237,895
Total	221,074,343	91,018,509	245,918,683	104,102,656
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES AOP 007	Same period of the previous year		Current period 01.01. – 30.09.2022.	in HRK
	01.01.-30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	- -	- -	2,118,089 -	- -
Deposits Debt Securities issued Other financial liabilities	- - 671,022	- - 501,425	- - 167,959	- - -
Total	671,022	501,425	2,286,048	-
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING	Same period of the previous year			in HRK
AOP 008	01.01.-30.09.2021. Cumulative	Quarter	Current period 01.01. – 30.09.2022. Cumulative	Quarter
Equity instruments Debt securities	8,457,589 (2,602,689)	1,320,872 1,484,968	(14,748,204) (64,729,783)	(3,391,953) (12,790,707)
FX transactions and derivatives Total	43,704,086 49,558,986	19,031,718 21,837,558	62,762,564 (16,715,424)	23,863,274 7,680,614
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.-30.09.2021.		Current period 01.01. – 30.09.2022.
Equity instruments	Cumulative 30,800,000	Quarter -	Cumulative -	Quarter -
Debt securities Loans and advances	- (362,049)	- 1,262,389	- 193,467	- 69,394
Total	30,437,951	1,262,389	193,467	69,394 in HRK
8) OPERATING EXPENSES AOP 015 & AOP 017 & AOP 018	Same period of the previous year		Current period 01.01. – 30.09.2022.
	01.01.-30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Other operating expenses Administrative expenses	8,385,064 291,086,496	2,678,393 94,591,075	23,375,705 430,850,544	16,016,111 163,833,587
Employee expenses Other administrative expenses (Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	175,136,993 115,949,503 10,437,268	57,013,655 37,577,420 3,479,089	240,971,270 189,879,274 17,292,045	89,916,435 73,917,152 2,373,901
Amortization Property, plant and equipment	50,842,016 32,092,333	16,715,884 10,415,069	71,593,858 39,429,579	27,332,047 14,498,007
Investment property Other intangible assets	- 18,749,682	- 6,300,814	- 32,164,279	- 12,834,041
Total	360,750,843	117,464,440	543,112,152	209,555,647 in HRK
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year		Current period 01.01. – 30.09.2022.
	01.01.-30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Modification gains or (-) losses, net Financial assets at fair value through other comprehensive income	(1,978,555) -	(520,600) -	(2,859,520) -	806,924 -
Financial assets at amortized cost (Provisions or (-) reversal of provisions) Liabilities towards resolution committees and deposit insurance systems	(1,978,555) 20,734,420 -	(520,600) (1,738,386) -	(2,859,520) (1,804,921) -	806,924 (15,462,813) -
(Liabilities and Guarantees) (Other Provisions)	4,668,180 16,066,240	(2,410,406) 672,020	15,651,195 (17,456,115)	(5,294,579) (10,168,233)
(Impairment or (-) reversal of impairment on financial assets that are not measured at fair value through profit or loss)	1,696,368	26,689,260	65,451,537	37,581,192
(Financial assets at fair value through other comprehensive income) (Financial assets at amortized cost)	(1,732,177) 3,428,546	(358,966) 27,048,226	(14,007,059) 79,458,596	(986,235) 38,567,427
(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)	- -	- -	6,528,347 1,081,611	470,883 -
(Investment property) (Goodwill)	- -	- -	- -	- -
(Other intangible assets) (Other)	- -	- -	4,975,853 470,883	- 470,883
Total	24,409,343	25,471,474	73,034,484	21,782,338
10) LOANS AND ADVANCES AOP 023	Stage 1	31.12.2021. Stage 2	Stage 3	Stage 1	30.09.2022. Stage 2	in HRK Stage 3
Central banks Gross loans	1,326,441,533 1,326,441,533	- -	- -	1,037,500,285 1,037,690,646	- -
Allowance Government	- 3,442,887,361	- 27,214,597	- -	(190,361) 3,496,663,518	- 44,138,539
Gross loans Allowance	3,456,836,667 (13,949,306)	27,813,410 (598,813)	92,006 (92,006)	3,502,860,038 (6,196,519)	44,759,097 (620,558)	92,649 (92,016)
Credit institutuions Gross loans	277,890,317 117,158	- -	- -	838,137,218 1,300,372	- -
Allowance Deposits	(0) 278,323,532	- -	- -	(1,677) 840,455,412	- -
Allowance Other financial institutions	(550,373) 170,320,447	- 122	- -	(3,616,890) 304,726,439	- 560,448
Gross loans Allowance	160,489,050 (2,059,031)	122 (0)	- -	288,010,213 (1,377,480)	902,979 (342,531)	1,248 (519)
Deposits Allowance Non - financial institutions	12,188,549 (298,121) 1,635,385,261	- - 770,088,173	- - 615,079,209	18,548,151 (454,445) 5,664,200,676	- - 804,515,952	255,594,213
Gross loans Allowance	1,661,243,557 (25,858,296)	836,572,344 (66,484,172)	1,333,341,814 (718,262,605)	5,753,602,034 (89,401,358)	870,490,179 (65,974,227)	971,178,867 (715,584,654)
Retail Gross loans	7,096,378,085 7,190,592,928	372,303,977 413,935,430	221,121,872 831,400,100	11,332,545,985 11,454,754,924	740,987,766 810,979,164	244,298,282 1,180,440,310
Allowance Total	(94,214,842) 13,949,303,005	(41,631,453) 1,169,606,868	(610,278,228) 836,201,081	(122,208,939) 22,673,774,121	(69,991,398) 1,590,202,705	(936,142,028) 499,893,858
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS						in HRK
AOP 013 Central banks	31.12.2021. -	30.09.2022. -
Local state Credit institutions	- -	- -
Other financial institutions Non - financial institutions	- 2,895,155	- 2,556,265
Retail Total	6,421,574 9,316,729	5,982,261 8,538,527
12) DEPOSITS AOP 044	31.12.2021.	30.09.2022.				in HRK
Government Local state	401,789,616 6,575,113,951	751,150,052 9,222,295,966
Credit institutions Other financial institutions	103,484,950 1,466,863,467	515,226,103 1,978,843,917
Non - financial institutions Retail	3,598,925,458 12,601,533,019	7,824,300,826 16,825,477,507
Total	24,747,710,461	37,117,294,371