Hrvatska Poštanska Banka d.d.

Investor Presentation • Apr 30, 2025

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

Zagreb, April 30, 2025 No: F21-4/2025-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 March 31, 2025.

Hrvatska poštanska banka, p.l.c.

Investor information April ²⁰²⁵ 3M 2025

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 three-month financial results for 2025, Marko Badurina, President of the Management Board of Hrvatska poštanska banka, stated:

"After years of continuous and record-breaking growth in balance sheet volume, operating income and profit, HPB's operations in the first quarter of 2025 have been characterized by a challenging economic environment and a significant shift in monetary policy and reference interest rates.

The impact of business conditions on operating income and net profit was partially neutralized by cost cutting, as well as by proactively consolidating and repositioning the balance sheet by making investments in fixed-income bonds in order to mitigate the expected reduction in reference rates.

Credit activity has also expanded significantly, especially in the retail segment, where HPB was first in Croatia to enter the market with HPB - SUPER HOUSING LOAN, while simultaneously continuing to support entrepreneurship.

The HPB team continues to demonstrate resilience, adaptability and, most importantly, the ability to deal with the challenges that the times in which we operate bring.

In 2025, HPB will maintain its focus on innovation, digital transformation and sustainable growth in order to continue to strengthen its position among the market leaders in Croatia. "

Balance sheet transformation in a declining interest rate environment Focus on clients and the community

* Profit and loss account positions in this presentation for the year 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 – 31.12.2023) and for 2024 and 2025 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 31.12.2022 show the result of HPB on a stand-alone basis, while the reporting dates 31.12.2023 – 31.3.2025 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

5

Trading data for HPB share, www.zse.hr

Strong positioning in 2024 enabled agile reaction in response to expected market trends

To neutralize the effects of the reduction in the European Central Bank's reference rate, the balance sheet was transformed by investing EUR 700 mn in Croatian bonds, which will result in an average yield of 2.9%.

The initiation of the HPB Super Stambeni kredit resulted in an increase in new lending by almost 2x with growth in all segments.

We continue our mission of creating conditions for a better life in Croatia First on the market to introduce significantly more favorable conditions

from January, 15 2025 2.89%

As the first on the market, HPB's new housing loan promotes affordable living and enhances client quality of life.

For major financial decisions, it is important to have a bank that cares about its clients' quality of life, their plans and their expenses.

Stable deposit structure confirms client trust

Agile management of interest expenses on the deposit side

The return of excess liquid funds to corporate clients and typical seasonal trends resulted in a decrease in deposits by 8.9% and in the balance sheet by 8.6%, while simultaneously ensuring agile management of interest expenses on the deposit side.

Launched digital transformation program

Finacle Payments

The Bank's existing payment transaction solution - includes migration to a newer version and consolidation/migration of all payment schemes (SWIFT, SEPA Inst, SCT, SDD, Target) to the solution.

Finacle Core

Existing central banking system solution – includes migration to a newer version in order to improve system performance.

Digital Engagement Hub

A solution that connects sales channels with back-end systems, unifying data and processes across multiple platforms and applications.

Liquidity Management Solution

A solution for managing and optimizing liquidity across locations, currencies and systems, with tools for business clients to monitor liquidity and prepare realtime cash flow projections.

HPB's growth significantly exceeds the growth of the overall sector

25.2% 20.2% 18.0% 10.2% 9.4% 8.1% 21.2 17.0 15.1 8.5 7.9 6.8 Total assets (EUR bn) # 5 0 20 40 60 80 100 120 140 160 180 200 220 12/21 3/22 6/22 9/22 12/22 3/23 6/23 9/23 12/23 3/24 6/24 9/24 12/24 market HPB +70.6% Total assets development Base index = 2021 8.4% 10.2% 16.9% 20.6% 25.9% 9.0% Share 31.12.2024 Share 31.12.2023 ≈

HPB in the TOP 5 banks by total assets.

Macroeconomic indicators

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

Adapting to the new monetary and business environment

		and 1998, which haven and 1977, which hannel and the first formed the

Profit and loss account (EUR mn)	3M 2024	3M 2025	Y-o-Y	Y-o-Y %
Net interest income	46.6	40.5	(6.2)	(13.2)
Net fee and commission income	7.6	9.0	1.4	18.0
Net other income	0.9	1.0	0.1	7.5
Operating income	55.2	50.4	(4.7)	(8.6)
Employee expenses	(13.3)	(13.4)	0.2	1.2
Administrative expenses	(10.3)	(9.8)	(0.6)	(5.6)
Depreciation	(2.9)	(2.6)	(0.3)	(11.5)
Operating expenses	(26.5)	(25.8)	(0.8)	(2.9)
Operating profit	28.6	24.6	(4.0)	(13.9)
Provisions	0.2	(6.1)	(6.3)
Tax	(5.0)	(3.4)	(1.6)	(32.2)
Profit after tax	23.9	15.2	(8.7)	(36.3)

• A decrease in net interest income of EUR 6.2 mn (-13.2%) compared to the same period in 2024 due to lower volume and lower ECB's interest rates, which was strategically partially neutralized by higher income from securities and loans.
• Without an increase in fee prices, net fee and commission income continues its growth trend of EUR 1.4 mn (+ 18.0%) in the observed period, caused by an increase in transaction volume and expansion of the client base.
• With successful control, operating expenses were reduced by 2.9% compared to the previous period due to lower administrative expenses and depreciation, with stable employee expenses.
• Cost-to-income ratio is 51%.
• Increase in provisioning of the performing portfolio due to growth in client loans, as well as one-off costs related to new investments in securities. NPL provisions during the first quarter reflect expected trends, mostly realized through regular business activities.

Maintaining profitability despite a challenging environment

Income diversification mitigates market pressures

Cost optimization in support of profitability

NPL coverage maintained above the market average NPL volume remains unchanged

4.0 Stage 1 & 2 2.0 Stage 3 0.1 Other provisions 31.3.2025 EUR 6.1 mn

• The movement of provisions for the performing portfolio was influenced by the growth in the volume of the loan portfolio as well as one-off costs related to new investments in securities.
• The NPL ratio is currently influenced by the reduction of performing portfolio due to the redistribution of liquid deposit funds from central banks into bonds, which, with a stable level of non-performing exposures, results in a minimal increase in the ratio. The NPE ratio, which also includes the bond in its calculation, remains unchanged.

Market - NPL and NPEratio, %

HPB - NPL and NPE ratio, %

67.0 33.0 3.0 2.6 2022 69.0 31.0 2.6 2.3 2023 66.3 33.7 2.4 2.0 2024 -0.7 pp Covered NPL Uncovered NPL NPL share NPE share

Source: CNB statistics, SV2 Selected indicators of the structure, concentration and operations of credit institutions

Structure of provision costs

Repositioned low-risk balance sheet

Balance sheet (EUR mn)	31.12.2024	31.3.2025	YTD	YTD %
Cash and cash equivalents	3,799	2,205	(1,594)	(42.0)
Securities and other instruments	1,104	1,886	783	70.9
Net loans and advances	2,866	2,983	117	4.1
Other assets	114	130	16	13.5
Total assets	7,883	7,204	(678)	(8.6)

Total equity and reserves	560	575	16	2.8
Total liabilities	7,323	6,629	(694)	(9.5)
Other liabilities	140	123	(18)	(12.7)
Loan liabilities	444	367	(77)	(17.4)
Deposits	6,738	6,139	(599)	(8.9)

• The reduced position of cash and cash equivalents is a result of balance sheet transformation in a decreasing interest rate environment and the neutralization of these effects by investing in securities of the Republic of Croatia, as well as the seasonally lower deposit volume.
• Loan portfolio recorded a growth due to the Bank's initiative to introduce significantly more favorable housing loans conditions on the Croatian market as part of the new product HPB Super stambeni kredit, which was reflected in a larger volume of loans in the first quarter of 2025.
• Reduction of deposits due to seasonal changes in the deposit volume.

The reduction in loan liabilities is the result of regular repayments and price optimization.

Stability ensured through a healthy loan-to-deposit ratio

575 367 123 6,139 Equity and liabilities Other liabilities Loan liabilities Equity and reserves Deposits 130 1,886 2,205 2,983 Assets Other assets Securities Cash and cash equivalents Net loans and advances 31.3.2025 (EUR mn) LCR and NSFR significantly above regulatory requirements (= 100%) and market (LCR: 230.9%*; NSFR: 169.2%**). 48.6 % Net loans / deposits 268.0 218.0 31.3. 2024 260.9 225.2 30.6. 2024 256.0 233.8 30.9. 2024 261.4 253.8 31.12. 2024 LCR % NSFR % Net loans/ deposits % 50.6 49.8 47.0 42.5 31.3. 2025 255.2 230.4 48.6 Liquidity profile *Data as of December 31, 2024, source: CNB statistics, SV1 Data on operations of credit institutions **Data as of June 30, 2024, source: CNB Semi-annual Information on the Financial Condition, the Degree of Price Stability Achieved and the Implementation of Monetary Policy in the First Half of 2024

20 Source: Management report

Positioned for future opportunities – strong liquidity, balanced assets

21

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Loan growth with preserved portfolio quality

94% of loans in the performing portfolio

Retail deposits development

Government bonds as foundation of investment stability 31.3.2025

*Securities are presented in nominal amount

The securities portfolio consists of 83.2% bonds, with government bonds covering 78.9% of the total portfolio as the most significant investment.

Capital strength as the foundation of secure growth

Regulatory capital and MREL eligible instruments development

Common equity tier 1 capital (CET1), EUR mn Capital adequacy rate (CAR), % -150

-100

-50

0

50

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Stable and well diversified loan portfolio

Corporate gross loans structure per industry, %

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

HPB share still above relevant market indices

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

Ownership structure

31.3.2025

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.

Banks indices

Sustainability – Q1 2025

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
EIR	Effective interest rate
ESG	Environmental, Social and Governance
GDP	Gross Domestic Product
HICP	Harmonised index of consumer prices
HPB	Hrvatska poštanska banka
ir	Interest rate
ISIN	International Securities Identification Number
LCR	Liquidity Coverage Ratio
MREL	Minimum Requirement for Own Funds and Eligible Liabilities
NPE	Non Performing Exposures
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
ZSE	Zagreb Stock Exchange
3M	Three-month period
31

Indicies calculation

Indicator	Calculation
Liquidity coverage ratio (LCR)	The ratio of liquid assets to net liquidity outflow
NPE ratio	Ratio of non-performing exposures to total loans
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

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