Hrvatska Poštanska Banka d.d.

Annual Report • Feb 24, 2025

Management Board Jurišićeva ulica 4, HR-10000 Zagreb Phone: +385 1 4804 400, +385 1 4804 409 Fax: +385 1 4810 773

Zagreb, February 24, 2025 No: F21-2/2025-TB

Home Member Stock Exchange Identifier HPB-R-A Regulated Market/

Segment

LEI 529900D5G4V6THXC5P79

State of Issuer Republic of Croatia

ISIN HRHPB0RA0002

Zagreb Stock Exchange Inc. Official Market

Zagreb Stock Exchange Inc. Croatian Financial Services Supervisory Agency ("HANFA") Croatian News Agency OTS HINA

Subject: HRVATSKA POŠTANSKA BANKA, p.l.c.

- Other non-regulated information

Hrvatska poštanska banka, p.l.c. announces Investor's materials for the period ended December 31, 2024.

Hrvatska poštanska banka, p.l.c.

Hrvatska poštanska banka d.d. Jurišićeva ulica 4, 10000 Zagreb, Croatia tel.: +385 1 4890 365 hpb@hpb.hr www.hpb.hr Management Board: Marko Badurina, President Anto Mihaljević, Member Ivan Soldo, Member Tadija Vrdoljak, Member Josip Majher, Member Marijana Miličević, Chairman of the Supervisory Board IBAN: HR46 2390 0011 0700 0002 9 SWIFT: HPBZHR2X OIB: 87939104217 Registered with Zagreb Commercial Court under number MBS: 080010698 Share capital of EUR 161,970,000.00 divided into 2,024,625 ordinary shares each in the nominal value of EUR 80.00 and paid in full.

Investor information February 2025 12M 2024

Limitation of liability

• The information and data contained in this presentation are intended as general background information on Hrvatska poštanska banka p.l.c. (hereinafter referred to as the Bank or HPB) and its activities. They are provided in summary form and therefore do not necessarily represent complete information. 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," "estimates," "potential" or "continues" and similar expressions typically identify forwardlooking 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, forward-looking statements cannot be guaranteed. Accordingly, we cannot guarantee the realization of such forward-looking statements, nor should full reliance be placed on such forward-looking statements. Many factors may affect our results of operations, financial conditions, liquidity, and developments in the industry in which we operate, and these may 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 related 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, and therefore HPB hereby expressly makes no representation of warranty of any kind including, but not limited to the accuracy, completeness or reliability of the information and data provided. This presentation is for information purposes only and does not contain a recommendation to buy or sell or an offer to sell or subscribe for shares, nor does it constitute an invitation to make an offer to sell shares.
• This presentation has been prepared and the information in it has been checked with the greatest possible care. Nevertheless, rounding and transmission cannot be excluded. When adding up rounded amounts and percentages, differences may appear.

Statement of the President of the Management Board

On the occasion of releasing the annual financial results for 2024, Marko Badurina, President of the Management Board of Hrvatska poštanska banka, stated:

"The year behind us has marked the turning point of HPB's growth and development. By using an agile approach to opportunities we've managed to achieve record growth and profitability and have entered the top 5 largest banks in Croatia!

HPB's market position is strengthened, especially with regard to operating profit and revenue. Meanwhile, overall profitability is still above average in historical terms.

I'm extremely proud of our HPB team which is proving time and again that it is ready for biggest challenges. We will also continue to be reliable support and a desirable partner to Croatian entrepreneurs and citizens.

In any event, HPB is not "standing at a crossroads" anymore, but is continuing to achieve success after success in line with our strategy of growth and profitability. Focus in 2025 will remain on further strengthening of the market position, through innovation, intensifying digital enhancements and solutions and on business endeavors which will secure long term sustainability and competitive edge."

Bank dedicated to clients, shareholders and the community

from 31.12.2023

ranking among banks in SEE region by asset size**

ranking among banks in Croatia by asset size*

as of 31.12.2023

578 k

number of clients/users of HPB banking services

as of 31.12.2024

170 k

number of clients/users of HPB mobile services

as of 31.12.2024

∆ 2024

+70% HPB market capitalization increase

At the end of 2024, a decision was made to make a significant investment in the Bank's application environment to meet future banking market requirements, create one of the key preconditions for future growth, and achieve long-term strategic goals.

We are creating conditions for a better life in Croatia

Solid foundations for sustainable growth and long-term value creation

* Profit and loss account positions in this presentation for the period 2021-2022 are presented on stand alone basis, while for 2023 include the result of HPB on a stand-alone basis including the result of Nova hrvatska banka for the period from integration till reporting date (3.7.2023 – 30.9.2023) and for 2024 includes the result of integrated Bank (HPB + Nova hrvatska banka) in accordance with the integration of Nova hrvatska banka in July 2023

** The balance sheet positions in this presentation on the reporting dates 31.12.2021 and 31.12.2022 show the result of HPB on a stand-alone basis, while the reporting dates 31.12.2023 and 31.12.2024 include results of an integrated Bank (HPB + Nova hrvatska banka) in accordance with the integration of Nova hrvatska banka in July 2023

Source: Management report

6

Trading data for HPB share, www.zse.hr

The fastest growing bank in Croatia Total assets grew by EUR +0.5 bn in Q4 2024

Base index = 2021

HPB in the TOP 5 banks by total assets.

Total assets

Macroeconomic indicators

* Total value of financial investment transactions during the year compared to the same period last year, according to current prices.

Croatia, % Euro area, %

Annual growth of operating profit over 20%

Profit and loss account (EUR mn)	12M 2023*	12M 2024*	Y-o-Y	Y-o-Y %
Net interest income	146.3	178.3	32.0	21.9
Net fee and commission income	29.3	35.4	6.0	20.5
Net other income	7.6	7.6	0.0	0.4
Operating income	183.3	221.3	38.0	20.7
Employee expenses	(44.2)	(55.7)	11.5	26.1
Administrative expenses	(38.7)	(43.6)	4.9	12.6
Depreciation	(8.7)	(10.2)	1.5	17.1
Operating expenses	(91.6)	(109.5)	17.9	19.6
Operating profit	91.7	111.8	20.1	21.9
Provisions	2.3	(21.7)	(24.0)
Tax	(13.4)	(16.5)	3.1	23.1
Profit after tax	80.6	73.6	(7.0)	(8.7)

* 12M of 2023 include the result of HPB on a stand-alone basis including the result of Nova hrvatska banka for the period from integration till reporting date (3.7.2023 – 31.12.2023) and 12M of 2024 includes the result of integrated Bank (HPB + Nova hrvatska banka) in accordance with the integration of Nova hrvatska banka in July 2023

• A significant annual increase in net interest income of EUR 32 mn (+22%) was achieved due to a higher volume of liquid assets and a higher average reference interest rate on deposits with central banks.
• Net fee and commission income continues its growth trend, increasing by EUR 6.0 mn (+21%) in the observed period, driven by higher income in the retail segment and cost savings in the card business and FINA segments.
• The increase in employee expenses due to the integration of Nova hrvatska banka in mid-2023 and the enhancement of material rights in 2024, along with inflationary pressures on labour and service costs, resulted in an EUR 18 mn increase in operating expenses.
• The cost-to-income ratio remained below 50%.
• The movement of Stage 1 & 2 provisions in 2024 was marked by the migration of part of the portfolio from Stage 1 to Stage 2 in accordance with the Bank's prudent risk management approach, reflecting the deterioration of macroeconomic indicators in key export markets. In the non-performing loan portfolio, effective collection, primarily in the corporate segment, exceeded the effects of new entries into the NPL portfolio after the operational merger.

→ net interest income the main driver of operating profit

Above-average profitability while strengthening operating business

12 Source: Management report

Growth in all categories of operating income

Operating income

Expenses in a function of maket share growth

Operating expenses

Lowest NPL ratio in the Bank's history of 3.0%

NPL coverage remained above the market average

• Although there was no delay in the repayment, performing portfolio was marked by the migration of a portion of placements from Stage 1 to Stage 2 in accordance with a prudent risk management approach.
• Efficient collection, write-offs of a part of non-performing exposures and the positive impact of performing loans resulted in the lowest NPL ratio in the Bank's history. Provisions for nonperforming loans (Stage 3) are, compared to the previous period, on expected level, considering all effects of the legal and operational merger and one-off effects of the change in methodology in 2024.
• Other reservations refer primarily to legal cases.

Market - NPL ratio, %

** Data as of September 30, 2024, source: CNB statistics, SV2 Selected indicators of the structure, concentration and operations of credit institutions

15 Source: Management report

Continued above-average asset growth driven by strong Q4

Balance sheet (EUR mn)	31.12.2023	31.12.2024	YTD	YTD %
Cash and cash equivalents	3,103	3,799	696	22.4
Securities and other financial	915	1,104	189	20.6
instruments
Net loans and advances	2,908	2,866	(43)	(1.5)
Other assets	120	114	(5)	(4.5)
Total assets	7,046	7,882	836	11.9
Deposits	5,929	6,738	809	13.7
Loan liabilities	468	444	(24)	(5.1)
Other liabilities	115	140	25	21.6
Total liabilities	6,512	7,323	810	12.4
Total equity and reserves	534	560	26	4.9

• The excess liquidity from collected deposits on the asset side was reflected in an increase in cash and cash equivalents and investment in securities and other financial instruments (mainly bonds and treasury bills of the Republic of Croatia) following a further decrease in market reference rates.
• Loan portfolio without significant fluctuations, with significantly improved portfolio quality and a historically lowest NPL ratio of 3.0%, bringing the Bank closer to the average of credit institutions in Croatia.
• Deposits recorded growth across all business segments (EUR +530 mn in Q4 2024), with term deposits showing an annual increase of 17.1%, primarily driven by the effect of attractive interest rates on Super Štednja, while a vista deposits recorded an annual growth of 11.7%.
• Loan liabilities relate to MREL instruments and loans received from financial institutions (HBOR, CNB repo placements, and foreign financial institutions), while the decrease is due to regular repayments.

Total assets grew by almost a billion euros year-on-year (EUR +544 mn in Q4 2024).

→ the growth of the deposit base (+ 13.7%) forms a strong foundation for further development

Exceptional liquidity position due to growing deposits

17 Source: Management report

Strong fundamentals provides the potential for growth

Improved quality of gross loan portfolio In 2024, EUR 1.4 bn of new loans were approved and utilized

2,875 (91.9 %) 254 (8.1 %) 31.12.2023 -21 Corporate, public sector and financial market -48 SME -12 Retail 2,858 (93.8 %) 190 (6.2 %) 31.12.2024 Stage 1 and 2 Stage 3 3,129 3,047 -2.6 % 32.9% 33.0% 13.9% 12.7% 53.2% 54.3% (EUR mn) Stage 1 and 2 Stage 3 Gross loans Gross loans

Gross loans share 31.12.2023 Gross loans share 31.12.2024

19 Source: Management report

Deposit base expansion with steady growth of a vista and term deposits Super Štednja balance od EUR 1.3 bn as of 31.12.2024

Deposit share 31.12.2023 Deposit share 31.12.2024

Low-risk securities portfolio

*Securities are presented in nominal amount

The securities portfolio consists of 81.3% bonds, with government bonds covering 76.7% of the total portfolio as the most significant investment.

Moderate RWA growth

RWA development (EUR mn)

Continuous strengthening of capital base

Regulatory capital and MREL eligible instruments development

-150

-100

-50

0

50

Capitalization indicators slightly decreased compared to the previous year, in line with the decision on dividend payout from a part of retained earnings for 2023.

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Diversified loan portfolio with a stable structure

Corporate gross loans structure per industry, %

25 Source: Management report, according to National Classification of Activities (NKD)

HPB share outperformed relevant market indices

HPB share price movement index and CROBEX, EURO STOXX and EURO STOXX Banks indices

Ownership structure 31.12.2024

For the second year in a row and for the third time in its history, HPB pays out a dividend. In 2024, a EUR 23.90 dividend was voted in two equal parts of EUR 11.95. The first part was paid on January 7, 2025, the second will be paid on June 26, 2025.

Sustainable business in 2024

Sustainable business in 2024

Achievements and awards in 2024

Zlatna Kuna - Croatian Chamber of Commerce award for the most successful bank in 2023 (October 2024)

Best Buy Award medal for HPB SUPER ŠTEDNJA in the category "Bank that offers the best price-quality ratio on the Croatian market when it comes to savings options".

HPB Bond plus – declared the best fund in 2023 in the conservative mixed fund category by the Association of Investment and Pension Fund Management Companies of the Croatian Chamber of Commerce

#BeCRO active as part of the European Week of Sport project, in the Workplace category modeled after the European Commission's #BeActive Awards

The company is a friend of health – a certificate from the Croatian Institute of Public Health as confirmation of caring for the health of its employees and clients and the purchase of automated external defibrillators (AEDs) for the Bank's business network

The Bank's LinkedIn community exceeded 10,000 followers in 2024 - TOP4 banks in Croatia

Abbreviations

Abbreviation	Definition
CAR	Capital Adequacy Ratio
CBRD	Croatian Bank for Reconstruction and Development
CET 1	Common Equity Tier 1
CIR	Cost-to-income ratio
CNB	Croatian National Bank
CROBEX	Croatian Benchmark Stock Exchange Index
ECB	European Central Bank
ESG	Environmental, Social and Governance
GDP	Gross Domestic Product
HICP	Harmonised index of consumer prices
HPB	Hrvatska poštanska banka
ISIN	International Securities Identification Number
LCR	Liquidity Coverage Ratio
MREL	Minimum Requirement for Own Funds and Eligible Liabilities
NSFR	Net Stabile Funding Ratio
Q	Quarter
ROAE	Return on Average Equity
RWA	Risk-Weighted Assets
SEE	South East Europe
Stage 1 and 2	Performing Loans
Stage 3 or NPL	Non-Performing Loans
Y-o-Y	Year-over-Year
YTD	Year to Date
12M	Twelve-month period

Indicies calculation

Indicator	Calculation
Liquidity coverage ratio (LCR)	The ratio of liquid assets to net liquidity outflow
NPL coverage	Ratio of accumulated impairments for non-performing loans to total non-performing loans
NPL ratio	Ratio of non-performing loans to total loans
Net stable funding ratio (NSFR)	Ratio of the available amount of stable funding relative to the required amount of stable funding
Loan to deposit ratio	Ratio of net loans to deposits as of the reporting date
Cost to income ratio (CIR)	Operating cost to net operating income ratio
Return on average equity (ROAE)	Ratio of annualized profit for the current year to average equity (arithmetic mean of the balance in equity at the end of the reporting period and the balance in equity at the end of the previous year)
Common Equity Tier 1 (CET 1)	Common Equity Tier 1 (CET1) capital to risk-weighted assets (RWA) ratio

We are creating conditions for a better life in Croatia.

HEADQUARTER Address: Jurišićeva ulica 4 Telephones: 072 472 472 Fax: +385 1 4810 773

E-mail: hpb@hpb.hr