Hrvatska Poštanska Banka d.d.

Quarterly Report • Oct 28, 2022

Unaudited Financial Statements for the period from January 1 to September 30, 2022

Type and name of prescribed information:	Financial statements for the period 1.1.2022 - 30.9.2022, HPB d.d. 9M 2022 Unaudited Financial statements for period from January 1 to September 30, 2022
Issuer name, headquarter and address:	Hrvatska poštanska banka public listed company, 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. publishes unaudited financial statements for the period from January 1 to September 30, 2022.

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
• Unaudited set of unconsolidated financial statements (balance sheet, profit or loss statement, statement of changes in equity, cash flow statement) and
• Notes to the financial statements

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

Strong organic growth supported by acquisitions in 2022. The acquisition of Nova Hrvatska banka marked the direction of 2022, together with ongoing intensive activities for NHB integration as one of the Bank's key priorities. In the third quarter, the Bank also acquired 100% of the ownership stake in the company Pronam Nekretnine d.o.o. and started merging process with the parent company, which is expected by the end of 2022, depending on the approval of the supervisor. Hereby, the Bank continues to optimize the structure and improve the operations of the HPB Group.

The bank is intensively preparing for the introduction of the euro as the official currency in the Republic of Croatia, in order to provide a simple transition to the new currency and further business with HPB for its clients. The bank has successfully implemented a dual price display from September 5, 2022, and the implementation of solutions for new processes: advance supply, intermediate advance supply and simplified intermediate advance supply in euros, which will be implemented during the last quarter of 2022, is being finalized. The Bank signed the Code of Ethics of the Ministry of Economy and Sustainable Development with the aim of reliable and transparent introduction of the new currency, to provide safe environment for its clients.

FINANCIAL RESULTS

An increase in assets of HRK +5.5 bn compared to December 31, 2021 led to the historically highest asset level.

Realized net profit in the amount of HRK 126.4 mn despite inflationary pressures, negative trends on the capital market, strong price competition on domestic banking market, intensive project activities and increased expenses for deposit insurance.

The strong growth of the gross loan portfolio in all segments is the result of long-term investment in the development of relations with clients and continuation of the positive trend on the acquisition plan.

Positive trend of decreasing non performing exposures and NPL ratio, in the first 9M of 2022, continued and NPL ratio reached the lowest level in recent history, primarily due to the effect of efficient collection and recovery of part of the portfolio, supported by asset growth, which further confirms the positive trend of NPL ratio. At the same time, the NPL coverage ratio is significantly above the Croatian market average and amount 77.1%.

The Bank has no exposure to entities in Belarus, and minimal exposure to entities in Russia and Ukraine (0.00001%). The bank implements all measures and continues to monitor changes in EU restrictive measures (sanctions), especially in financial services.

		9M 2021	9M 2022	∆ y-o-y
Net interest income	HRK mn	401	388	(13.5) 6
Net fee income	HRK mn	149	160	10.7 5
Net trading gain/(loss)	HRK mn	50	(22)	(72.0) 6
Net other income	HRK mn	26	2	(24.0) 6
Operating income	HRK mn	626	527	(98.8) 6
Operating expense	HRK mn	(349)	(382)	33.5 5
Operating profit	HRK mn	277	145	(132.3) 6
Provisioning	HRK mn	(25)	(6)	(18.9) 6
Net profit	HRK mn	207	126	(80.2) 6
Cost-to-income ratio	%	55.7	72.6	16.8 5
Net interest margin	%	2.6	2.4	(0.1) 6

Key financials – Income statement

Net interest income lower by 3.4% due to strong price competition on domestic banking market and continued decrease in interest rates. Despite significant volume growth, due to the continuation of the reduction in interest rates, interest income is decreasing (-4.0%). The reduction of interest expenses by a significant 15.5% mitigated the decline in interest income.

Net fee and commission income increased by 7.2% mainly due to higher volume and number of transactions in card business and payment transaction in general as a result of economic recovery and very successful tourist season after the complete reopening in post-COVID19 period.

Due to negative trends in the trading segment, operating income is under pressure. Inflationary pressures, along with the growth of reference interest rates, led to a significant drop in bond prices on the domestic market, which follows the events on the world markets. Net loss from trading primarily refers to the adjustment of the book value of the securities in Bank's portfolio to market prices and amounts to HRK 22.5 mn (trading - HRK 70.7 mn, FX trading + HRK 48.2 mn). In addition to these effects, a one-off gain from the sale of the non-core share portfolio was recorded in 2021, which in that year increased the result for financial assets by HRK 30.8 mn, while no such sales transactions were recorded in 2022.

Increased administrative costs due to intensive ongoing activities on regulatory projects (EURO, ESG and others), the acquisitions (NHB and Pronam), rising inflation trend, especially of energy products compared to 2021. At the same time, the Bank continues to invest in IT, physical and process infrastructure in order to eliminate technological bottlenecks and improve service in general, which combined with the activation of newly acquired assets, led to an increase in depreciation costs. Also, due to the deposit growth at the entire banking system level, the costs for deposit insurance started to be calculated from the beginning of 2022 in accordance with legal regulations, which put additional pressure on the Bank's costs.

The cost in total provision expenses decreased by HRK 18.9 mn (-76.4%) compared to the first 9M of 2021 and amounts to HRK 5.8 mn. In the NPL portfolio, income from the reversal of provisions was recorded in the amount of HRK 7.8 mn. Movements in provisions are significantly better than expected due to the maximization of the positive effects of collection of the non-performing exposures in the first nine months of this year, with significant positive effects on income from provisions, which almost completely neutralized the additional allocation of provisions on the existing portfolio and the new entry of NPLs. New exposures in corporate and financial institutions segment affected the movement of provisions for the performing loans. The cost of other provisions mostly refers to regular provisions for legal cases and amounts to HRK 7.3 mn.

Despite the unstable capital market, strong inflationary pressures and the unstable geopolitical situation, HPB reached a record level of assets and achieved net profit of HRK 126.4 mn, thereby continuing to create value for its shareholders.

		31.12.2021	30.09.2022	∆ ytd
Assets	HRK mn	27,834	33,283	5,449 5
Gross loans	HRK mn	15,727	16,997	1,271 5
Deposits	HRK mn	23,450	28,992	5,542 5
Equity	HRK mn	2,650	2,357	(293) 6
Regulatory capital	HRK mn	2,631	2,379	(252) 6
Loan/deposit ratio	%	60.7	53.5	(7.2) 6
ROAE	%	7.9	6.8	(1.1) 6
ROAA	%	0.8	0.6	(0.2) 6
NPL ratio	%	9.8	6.4	(3.3) 6
NPL ratio excluding government guarantees	%	8.4	6.2	(2.1) 6
NPL coverage	%	61.1	77.1	15.9 5
NPL coverage excluding government guarantees	%	75.9	79.6	3.7 5
Loss allowance for loans	HRK mn	(1,575)	(1,595)	5 20.0

Key financials – Balance sheet

* Pro-forma regulatory capital with included half-year profit as of September 30, 2022 amounts to HRK 2,441 mn

The Bank's assets reached a historically record level with an increase of HRK 5.5 bn (+19.6%) compared to December 31, 2021, thereby strengthening its market position and competing to enter the top 5 banks on the domestic market. At the same time, the strong inflow of deposits was partially retained in liquid instruments (+47.4%) until later utilization, while part of the funds were placed through loans to clients (+8.1% gross) and invested in securities (+4.7%).

The strong growth of the gross loan portfolio, in all segments, is the result of investment in client relations and the related acquisition of clients. At the same time, the retail segment recorded a growth of 4%, which is the result of work from the beginning of the year, when most internal resources were dedicated to processing credit requests for participation in the APN program. This year is historic in term of the number of processed and approved applications, which helped the growth of the retail loan portfolio, despite repayments, which are a regular and expected part of business. Significant growth of loans in Corporate segment is the result

of intensive acquisition activities throughout the year, which continued the growth of the portfolio from the first and second quarter. By focusing on creditworthy clients and financing working capital, the absence of demand for investment loans was compensated. In the segment of the public sector, the constant increase in loans to local self-government entities continued, primarily for the financing of investments in communal infrastructure, but also through the financing of working capital. In the government segment, the Bank maintains its position, realizing those opportunities that do not represent too much of a price compromise, given that this segment is specific to the financing of long-term placements through tenders with the aim of obtaining the most favorable funds for the client. SME growth is the result of continuous acquisition and financing activities of quality projects and clients.

NPL portfolio, in all segments, recorded a decrease in the NPL exposure balance (Retail, SME, Corporate), as a result of significant collection (repayment) of the portfolio and recovery of placements (transition to performing portfolio). As a result of the collection, there was also a decrease in related provisions in SME and Corporate segment. On the other hand, Retail segment records an increase in the balance of provisions and coverage as a result of a more conservative approach to provisions due to the effects caused by the transition to different approach to the client (default at the client level). These movements continued the positive trend of reducing the non-performing exposures and NPL ratio in this year, which confirmed the multi-year trend. Efficient collection and recovery of part of the portfolio contributed to the fact that the NPL ratio reached the lowest level in recent history. In addition to the numerator, the Bank's business approach and asset growth also led to an increase in the denominator, which had an additional positive impact on the NPL ratio. At the same time, the coverage of non-performing exposure with provisions reached levels significantly above the average of the Croatian market (65.2% on June 30, 2022).

NPL ratio development (in %)

NPL coverage development (in %)

In accordance with the business model of the Bank, customer deposits dominate in the financing mix with a share of 87.0%, with a spectacular growth of HRK 5.5 bn (+23.6%). At the same time, a positive trend was noted in all segments compared to December 31, 2021: Corporate +43.9%, SME +40.1%, Financial markets +24.6% and Retail +6.7%.

In the structure of deposits, the overflow of term deposits to a vista deposits continues with regard to price movements on the market.

Capital reduction is result of falling prices of securities in Bank's portfolio which are valued through reserves for other comprehensive income (primarily government bonds).

The Bank's MREL ratio as of September 30, 2022 is 23.93% and is above first binding transitional MREL requirement (23.42%) which entered into force on January 1, 2022. The pro-forma MREL rate with the included half-year net profit is 24.67%.

Management report of Hrvatska poštanska Banka p.l.c. for the period from January 1 to September 30, 2022 is contained in the previous section of this material.

President of the Management Board Member of the Management Board

Marko Badurina Anto Mihaljević

Ivan Soldo Member of the Management Board

In accordance with the Capital Market Act, the Management Board of HPB plc., states that according to their best knowledge the set of unaudited financial statements for the period from January 1 to September 30, 2022, 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.

Marko Badurina

Chief Executive Officer

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		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	1310
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)		KN	KD
Audited:	RN	(RN-not audited/RD-audited)		RN	RD
Names of subsidiaries (according to IFRS):			Registered office:		MB:
					Yes
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)	No
Contact person: Filip Siladi
	(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)

Submitter: Hrvatska poštanska banka p.l.c. in HRK Last day of the AOP At the reporting date Item preceding business code of the current period year 1 2 3 4 Assets Cash, cash balances at central banks and other demand deposits (from 2 to 4) 001 6,177,602,131 8,271,557,402 Cash in hand 1,422,548,361 1,599,139,665 002 Cash balances at central banks 4,339,757,848 6,586,009,744 003 Other demand deposits 415,295,922 86,407,993 004 Financial assets held for trading (from 6 to 9) 616,670,614 407,176,012 005 Derivatives 006 - 2,012,415 Equity instruments 007 105,639,274 90,939,262 Debt securities 008 511,031,340 314,224,335 Loans and advances - - 009 Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13) 9,316,729 8,538,527 010 Equity instruments 011 - - Debt securities 012 - - Loans and advances 9,316,729 8,538,527 013 Financial assets at fair value through profit or loss (15 + 16) - - 014 Debt securities 015 - - Loans and advances - - 016 Financial assets at fair value through other comprehensive income (from 18 to 20) 4,601,319,906 2,908,000,733 017 Equity instruments 018 48,896,784 28,979,553 Debt securities 019 4,552,423,122 2,879,021,180 Loans and advances - - 020 Financial assets at amortised cost (22 + 23) 15,955,565,325 21,034,677,566 021 Debt securities 022 454,371 2,152,262,337 Loans and advances 15,955,110,954 18,882,415,229 023 Derivatives - hedge accounting 024 - - Fair value changes of the hedged items in portfolio hedge of interest rate risk 025 - - Investments in subsidiaries, joint ventures and associates 026 9,760,843 101,105,343 Tangible assets 027 310,680,257 302,679,049 Intangible assets 028 93,319,300 102,301,253 Tax assets 642,640 96,222,647 029 Other assets 51,761,294 50,274,417 030 Fixed assets and disposal groups classified as held for sale 9,200,000 - 031 Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31) 27,835,839,039 33,282,532,949 032 Liabilities Financial liabilities held for trading (from 34 to 38) - 685,538 033 Derivatives 034 - 685,538 Short positions 035 - - Deposits - - 036 Debt securities issued - - 037 Other financial liabilities - - 038 Financial liabilities at fair value through profit or loss (from 40 to 42) - - 039 Deposits 040 - - Debt securities issued 041 - - Other financial liabilities - - 042 Financial liabilities measured at amortised cost (from 44 to 46) 24,851,379,590 30,591,543,579 043 Deposits 24,756,955,639 30,500,164,264 044 Debt securities issued 045 - - Other financial liabilities 046 94,423,951 91,379,315 Derivatives - hedge accounting 047 - - Fair value changes of the hedged items in portfolio hedge of interest rate risk 048 - - Provisions 049 89,416,940 111,061,132 Tax liabilities 64,392,779 26,354,124 050 Share capital repayable on demand 051 - - Other liabilities 052 180,219,880 195,906,969 Liabilities included in disposal groups classified as held for sale - - 053 Total liabilities (33 + 39 + 43 + from 47 to 53) 25,185,409,189 30,925,551,342 054 Equity Capital 055 1,214,775,000 1,214,775,000 Share premium 056 - - Equity instruments issued other than capital - - 057 Other equity - - 058 Accumulated other comprehensive income 059 240,193,702 - 174,301,221 Retained profit 060 291,352,537 528,176,152 Revaluation reserves 061 - - Other reserves 062 702,479,098 661,979,683 ( - ) Treasury shares 063 (477,000) - Profit or loss attributable to owners of the parent 202,106,513 126,351,993 064 (--) Interim dividends - - 065 Minority interests [non-controlling interests] - - 066 Total equity (from 55 to 66) 067 2,650,429,850 2,356,981,607 Total equity and liabilities (54 + 67) 27,835,839,039 33,282,532,949 068	BALANCE SHEET as at September 30, 2022

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	424,994,797	137,984,977	407,793,306	140,828,060
(Interest expenses)	002	27,525,552	8,605,898	22,949,137	8,709,231
(Expenses on share capital repayable on demand)	003	-	-	-	-
Dividend income Fees and commissions income	004 005	1,990,067 370,071,010	912,372 151,612,595	2,518,670 399,992,281	842,291 163,716,161
(Fees and commissions expenses)	006	221,068,606	91,017,191	240,241,577	99,203,908
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	(24,571,135)	5,285,088
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	-	-	-	-
	012
Exchange rate differences [gain or (-) loss], net		(6,156,096)	(2,040,785)	(6,768,367)	(2,514,894)
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	- -	- -	- -	- -
Other operating income	015	6,798,717	1,889,306	26,978,019	9,737,361
(Other operating expenses)	016	8,417,716	2,502,878	21,206,142	12,899,146
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	621,354,580	211,833,870	524,025,433	197,151,176
(Administrative expenses)	018	284,161,512	92,387,388	313,558,815	104,222,788
(Cash contributions to resolution boards and deposit guarantee schemes )	019	10,437,268	3,479,089	13,175,571	1,563,525
(Depreciation)	020	50,251,429	16,527,257	52,541,905	17,141,676
Modification gains or (-) losses, net (Provisions or (-) reversal of provisions)	021 022	(1,978,555) 20,734,420	(520,600) (1,738,386)	(2,859,520) 15,067,019	806,924 (3,587,625)
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or
loss)	023	1,696,368	26,689,259	(11,896,080)	(2,236,757)
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	024	-	-	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	025	-	-	-	-
Negative goodwill recognised in profit or loss	026	-	-	-	-
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		-	-	-	-
26 to 28)	029	252,095,028	73,968,663	138,718,683	80,854,493
(Tax expense or (-) income related to profit or loss from continuing operations)	030	45,536,663	14,086,844	12,366,690	12,336,420
Profit or (-) loss after tax from continuing operations (29 – 30)	031	206,558,365	59,881,819	126,351,993	68,518,073
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)	034	-	-	-	-
Profit or ( – ) loss for the year (31 + 32; 36 + 37)	035	206,558,365	59,881,819	126,351,993	68,518,073
Attributable to minority interest [non-controlling interests] Attributable to owners of the parent	036 037	- 206,558,365	- 59,881,819	- 126,351,993	- 68,518,073
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year Other comprehensive income (40 + 52)	038 039	206,558,365 (6,738,214)	59,881,819 9,033,180	126,351,993 (414,494,923)	68,518,073 (66,351,911)
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	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
income, net Fair value changes of equity instruments measured at fair value through other comprehensive income	048	-	-	-	-
[hedged item] Fair value changes of equity instruments measured at fair value through other comprehensive income		-	-	-	-
[hedging instrument]	049	-	-	-	-
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	(6,280,491)	9,033,180	(414,494,923)	(66,351,911)
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] Debt instruments at fair value through other comprehensive income	056 057	- (7,659,135)	- 11,016,073	- (506,435,033)	- (81,362,653)
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	1,378,644	(1,982,893)	91,940,110	15,010,742
Total comprehensive income for the current year (38 + 39; 62 + 63)	061	199,820,151	68,914,999	(288,142,930)	2,166,162
Attributable to minority interest [non-controlling interest] Attributable to owners of the parent	062 063	- 199,820,151	- 68,914,999	- (288,142,930)	- 2,166,162

for the period January 01, 2022 to September 30, 2022
Submitter: Hrvatska poštanska banka p.l.c.			in HRK
Item	AOP code	Same period of the previous year	Current period
1	2	3	4
Operating activities - direct method
Interest received and similar receipts	001	-	-
Fees and commissions received	002	-	-
(Interest paid and similar expenditures) (Fees and commissions paid)	003	-	-
(Operating expenses paid)	004 005	- -	- -
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 Adjustments:	009	252,095,028 -	138,718,683 -
Impairment and provisions	010	24,409,343	6,030,459
Depreciation	011	50,251,429	52,541,905
	012	(80,667,959)	22,091,620
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	(397,469,245)	(384,844,169)
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 Securities and other financial instruments at fair value through other comprehensive income	017	217,447,288	(3,651,911,783)
Securities and other financial instruments held for trading	018 019	(119,631,681) 215,789,574	1,135,124,946 185,895,136
Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	-	-
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	20,000,000	-
Securities and other financial instruments at amortised cost	022	(948,647)	(2,151,807,966)
Other assets from operating activities	023	8,399,460	305,366
Deposits from financial institutions	024	39,760,243	353,656,123
Transaction accounts of other clients	025	745,778,473	1,296,645,417
Savings deposits of other clients	026	1,752,877,622	4,449,208,769
Time deposits of other clients Derivative financial liabilities and other liabilities held for trading	027	(707,349,518)	(453,268,678)
Other liabilities from operating activities	028 029	(20,089,721) 215,091,560	(2,359,098) 1,818,677
Interest received from operating activities [indirect method]	030	384,629,685	407,793,306
Dividends received from operating activities [indirect method]	031	1,990,067	2,518,670
Interest paid from operating activities [indirect method]	032	(27,525,552)	(22,949,137)
(Income tax paid)	033	-	(5,782,313)
Net cash flow from operating activities (from 1 to 33)	034	2,484,240,765	1,835,380,393
Investing activities Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	- (45,380,780)	- (44,322,650)
Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint
ventures	036	-	(91,344,500)
Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to	037	-	-
maturity
Dividends received from investing activities Other receipts/payments from investing activities	038	(948,647)	-
Net cash flow from investing activities (from 35 to 39)	039 040	- (46,329,427)	- (135,667,150)
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 Net cash flow from financing activities (from 41 to 46)	046	-	681,600
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	047	70,985,216	200,247,590
Cash and cash equivalents at the beginning of period	048 049	2,508,896,554 4,084,192,801	1,899,960,833 6,500,586,061
Effect of exchange rate fluctuations on cash and cash equivalents	050	(6,156,096)	(6,768,367)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	6,586,933,259	8,393,778,527

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 sive income	Other items	Total
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
Opening balance [before restatement]	001	1,214,775,000	-	-	-	240,193,702	291,352,537	-	702,479,099	(477,000)	202,106,512	-	-	-	2,650,429,850
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	285,570,224	-	702,479,099	(477,000)	202,106,512	-	-	-	2,644,647,537
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	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Purchase of treasury shares	012	-	-	-	-	-	-	-	-	(204,600)	-	-	-	-	(204,600)
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	-	-	-	-	-	242,605,928	-	(40,499,416)	-	(202,106,512)	-	-	-	-
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	-	-	-	-	(414,494,923)	-	-	-	-	126,351,993	-	-	-	(288,142,930)
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	(174,301,221)	528,176,152	-	661,979,683	-	126,351,993	-	-	-	2,356,981,607

1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.-			Current period 01.01. – 30.09.2022
	30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities	55,780,241	16,439,775	55,515,902	19,166,788
Loans and advances Other assets	369,205,257 9,298	121,539,764 5,438	352,260,379 17,025	121,661,272 -
Deposits Other liabilities	- -	- -	- -	- -
Total	424,994,797	137,984,977	407,793,306	140,828,060
2) INTEREST EXPENSE	Same period of the previous year 01.01.-			in HRK
AOP 002	30.09.2021.			Current period 01.01. – 30.09.2022
Debt securities	Cumulative -	Quarter -	Cumulative -	Quarter -
Loans and advances Other assets	2,605,650 -	1,284,218 -	3,567,167 -	1,401,983 -
Deposits	24,914,943	7,319,968	19,341,753	7,303,984
Other liabilities Total	4,958 27,525,552	1,713 8,605,898	40,217 22,949,137	3,264 8,709,231
3) FEE AND COMMISSION INCOME				in HRK
AOP 005	Same period of the previous year 01.01.- 30.09.2021.			Current period 01.01. – 30.09.2022
	Cumulative	Quarter	Cumulative	Quarter
Securities Asset management	2,265,503 28,468	1,520,997 18,330	1,961,590 18,312	626,920 5,983
Custody [according to the type of client] Loan commitments	3,960,593 21,182	2,604,326 15,280	3,766,352 21,145	1,247,538 6,758
Other Total	363,795,264 370,071,010	147,453,662 151,612,595	394,224,883 399,992,281	161,828,962 163,716,161
				in HRK
4) FEE AND COMMISSION EXPENSE AOP 006	Same period of the previous year 01.01.-			Current period 01.01. – 30.09.2022
	30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Bank clearing and settlement Other	1,538,376 219,530,230	555,896 90,461,295	3,448,136 236,793,442	1,371,200 97,832,708
Total	221,068,606	91,017,191	240,241,577	99,203,908
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES				in HRK
AOP 007	Same period of the previous year 01.01.- 30.09.2021.			Current period 01.01. – 30.09.2022
	Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	- -	- -	2,118,089 -	- -
Deposits Debt Securities issued	- -	- -	- -	- -
Other financial liabilities Total	671,021 671,021	501,425 501,425	167,959 2,286,048	- -
				in HRK
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING AOP 008	Same period of the previous year 01.01.-			Current period 01.01. – 30.09.2022
	30.09.2021. Cumulative	Quarter	Cumulative	Quarter
Equity instruments Debt securities	8,457,589 (2,602,689)	1,320,872 1,484,968	(14,748,204) (58,169,853)	(3,391,953) (10,032,263)
FX transactions and derivatives	43,704,086	19,031,718	48,346,922	18,709,304
Total	49,558,986	21,837,558	(24,571,135)	5,285,088
7) GAINS OR LOSSES ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS	Same period of the previous year 01.01.-
AOP 009	30.09.2021. Cumulative	Quarter		Current period 01.01. – 30.09.2022 Quarter
Equity instruments	30,800,000	-	Cumulative -	-
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
8) OPERATING EXPENSES				in HRK
AOP 015 & AOP 017 & AOP 018	Same period of the previous year 01.01.- 30.09.2021.			Current period 01.01. – 30.09.2022
Other operating expenses	Cumulative 8,417,716	Quarter 2,502,878	Cumulative 21,206,142	Quarter 12,899,146
Administrative expenses	284,161,512	92,387,388	313,558,815	104,222,788
Employee expenses Other administrative expenses	171,300,782 112,860,730	55,829,162 36,558,226	186,742,062 126,816,753	61,984,782 42,238,005
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes) Amortization	10,437,268 50,251,429	3,479,089 16,527,257	13,175,571 52,541,905	1,563,525 17,141,676
Property, plant and equipment Investment property	31,501,746 -	10,226,442 -	29,547,671 -	9,720,683 -
Other intangible assets	18,749,682	6,300,814	22,994,235	7,420,992
Total	353,267,924	114,896,612	400,482,434	135,827,134
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES	Same period of the previous year 01.01.-			in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	30.09.2021.			Current period 01.01. – 30.09.2022
Modification gains or (-) losses, net	Cumulative (1,978,555)	Quarter (520,600)	Cumulative (2,859,520)	Quarter 806,924
Financial assets at fair value through other comprehensive income Financial assets at amortized cost	- (1,978,555)	- (520,600)	- (2,859,520)	- 806,924
(Provisions or (-) reversal of provisions) Liabilities towards resolution committees and deposit insurance systems	20,734,420 -	(1,738,386) -	15,067,019 -	(3,587,625) -
(Liabilities and Guarantees)	4,668,180	(2,410,406)	7,777,831	(4,188,927)
		672,020
(Other Provisions) (Impairment or (-) reversal of impairment on financial assets that are not	16,066,240		7,289,187	601,302
measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income)	1,696,368 (1,732,177)	26,689,259 (358,967)	(11,896,080) (13,284,538)	(2,236,757) (308,917)
(Financial assets at amortized cost)	3,428,546	27,048,226	1,388,458	(1,927,840)
(Impairment or (-) reversal of impairment off of investments in subsidiaries, joint ventures, and associates)	-	-	-	-
(Impairment or (-) reversal of impairment off non-financial assets) (Property, plant and equipment)	- -	- -	- -	- -
(Investment property) (Goodwill)	- -	- -	- -	- -
(Other intangible assets)	-	-	-	-
(Other) Total	- 24,409,343	- 25,471,473	- 6,030,459	- (6,631,306)
10) LOANS AND ADVANCES
AOP 023	Stage 1	31.12.2021. Stage 2	Stage 3	Stage 1	30.09.2022. Stage 2
Central banks	1,326,441,533	-	-	870,487,073	-
Gross loans Allowance	1,326,441,533 -	- -	- -	870,487,073 -	- -
Government Gross loans	3,442,887,361 3,456,836,667	27,214,597 27,813,410	- 92,006	3,425,753,959 3,431,870,736	40,919,550 41,526,163
Allowance Credit institutuions	(13,949,306) 277,890,317	(598,813) -	(92,006) -	(6,116,777) 2,299,636,454	(606,613) -
Gross loans Allowance	117,158 (0)	- -	- -	118,267 (0)	- -
Deposits	278,323,532	-	-	2,310,529,250	-
Allowance Other financial institutions	(550,373) 170,320,447	- 122	- -	(11,011,062) 294,306,987	- 1,370
Gross loans Allowance	160,489,050 (2,059,031)	122 (0)	- -	277,466,225 (1,225,993)	1,399 (29)
Deposits Allowance	12,188,549 (298,121)	- -	- -	18,521,201 (454,445)	- -
Non - financial institutions Gross loans	1,635,385,261 1,661,243,557	770,088,173 836,572,344	615,079,209 1,333,341,814	3,176,417,877 3,249,449,815	587,164,961 628,227,736
Allowance	(25,858,296)	(66,484,172)	(718,262,605)		(73,031,938) (41,062,775)
Retail Gross loans	7,096,378,085 7,190,592,928	372,303,977 413,935,430	221,121,872 831,400,100	7,410,604,496 7,489,893,033	384,618,029 419,968,788
Allowance Total	(94,214,842) 13,949,303,005	(41,631,453) 1,169,606,868	(610,278,228) 836,201,081	17,477,206,847 1,012,703,910	(79,288,537) (35,350,759)
		in HRK
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS AOP 013	31.12.2021.	30.09.2022.
Central banks 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		in HRK
AOP 044 Government	31.12.2021. 401,789,616	30.09.2022. 402,537,560
Local state	6,575,113,951	8,260,529,060
Credit institutions Other financial institutions	103,484,950 1,472,818,860	432,618,732 1,673,202,957
Non - financial institutions Retail Total	3,602,215,243 12,601,533,019 24,756,955,639	6,067,835,597 13,663,440,357 30,500,164,264				in HRK Stage 3 - - - 634 92,649 (92,016) - - - - - 730 827 (97) - - 235,482,949 907,919,293 (672,436,345) 157,020,160 830,905,677 (673,885,517) 392,504,472