HPB d.d. 2021

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. (hereinafter referred to as the Bank or HPB) and its activities. It is supplied in summary form and therefore not necessarily complete. Certain statements contained herein may be statements of future expectations and other forward-looking statements about HPB, which are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, words such as "may", "will", "should", "expects", "plans", "contemplates", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions typically identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such, no forward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and the development of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.
This presentation contains financial and non-financial information and statistical data relating to HPB. Such information and data are presented for illustrative purposes only. This presentation may include information and data derived from publicly available sources that have not been independently verified, therefore HPB hereby expressly makes no representation of warranty of any kind, including, but not limited to the accuracy, completeness or reliability of the provided information and data. This presentation is for information purposes only and contains neither a recommendation to buy or sell nor an offer of sale or subscription to shares nor does it constitute an invitation to make an offer to sell shares.
This presentation has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typesetting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages, rounding-off differences may occur.

Type and name of prescribed information:	Quarterly financial statements for the period 1.1.2021 - 31.12.2021, HPB d.d. 2021 Investor information and unaudited Financial statements
Issuer name, headquarter and address:	Hrvatska poštanska banka p.l.c., Jurišićeva 4, HR-10000 Zagreb
Issuer's Legal Entity Identifier (LEI) Home Member State:	529900D5G4V6THXC5P79 Republic of Croatia
International Securities Identification Number (ISIN)	HRHPB0RA0002
Stock code (ticker):	HPB-R-A
Regulated market and segment:	Zagreb Stock Exchage, Official market

In accordance with the Capital Markets Act, Hrvatska poštanska Banka p.l.c. publishes unaudited financial statements for the period from January 1 to December 31, 2021.

Original and official quarterly 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).

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

We are creating conditions for a better life in Croatia

We volunteer for Croatia

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

Plant with HPB

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

*Data as of 30.9.2021

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

Source: HPB management reports

Promoting financial literacy

Video series of financial education (LinkedIn)

APN loans

We support young people who are buying or building their home

Feel the harmony

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

Sustainability and corporate social responsibility

*ESG = environmental, social , governance

Sustainability and corporate social responsibility

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

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

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

Ongoing activities

Sustainability and corporate social responsibility Plan 2022

KRI: key risk indicator
KPI: key performance indicator

Record profit after tax in 30-year history

Further progress across strategic pillars

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

Stable capital position

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

Strong growth in 2021

Asset increase HRK +2.4 bn in 2021;
Improved portfolio quality with NPL ratio excluding 100% government guaranteed exposures on historically lowest level.
Income statement items are shown in cumulative from start of the period until the reporting date; cumulative 01.01 – 31.12;
Balance sheet items are shown as at reporting date; 31.12.

Key Financials 2021

Operating profit (in HRK mn)

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

Profit after tax (in HRK mn)

Record profit after tax driven by operating profit.

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

CET 1 capital ratio (in %)

High capitalisation level.

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

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

Highest profit after tax in history

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

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

Results by business segments as of 31.12.2021

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

Corporate Financial market SME

Retail

Other

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

Gross loans development

Gross loans (in HRK mn)

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

Subsidised Housing Loans

Number of approved subsidised housing loans

Bank's share in APN loans is significantly above its market share;
Bank participates in subsidised housing loan program since 2017;
In the last, sixth, round, the Bank approved HRK 270.4 mn APN loans.

* Sourcehttps://mgipu.gov.hr/

^** In 2020, two APN tranches were conducted

Portfolio quality improves

NPL ratio development (in %)

NPL coverage development (in %)

12.8 10.8 10.4 9.8 12.8 11.6 10.4 8.7 8.4 2017 2018 2019 2020 2021 NPL NPL (excl. 100% gov. guar. exp.) * As of 30.9.2021

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

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

Strong NPL coverage

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

*CET 1 with inclusion of H1 2021 net profit

Uncovered NPLs to CET 1 trend

Active NPL portfolio management with an objective to maintain uncovered NPLs to CET1 ratio at low level;
NPL coverage by total provisions is 72.4%.

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Economic indicators (y-o-y)

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

2020 2021

Number of accounts* (in mn)

Average account balance* (in HRK)

24/02/2022

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

COVID-19 measures

Approved retail moratoria status at 31.12.2021 (in HRK mn)

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

Source: HPB management reports

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Key financials – Income statement

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

▪ Negative impact events in Q4 2021:

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

Operating profit development

Operating profit development (in HRK mn)

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

Net income development

Composition of net income

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

Net fee income (in HRK mn)

Net interest income (in HRK mn)

Fees and commissions

Net fee income overview (in HRK mn)

Composition of net fee and commission income by sales segments

* Market data available for 9M 2021

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

Increase in net fee and commision income mainly driven by successful tourist season, recovery of economic activities and withdrawal of COVID-19 measures related to card business (net income from card business +44.0%);
HPB net fee income on par with the banking sector with a relatively stable share.

Source: HPB management reports

Operating expenses

Composition of operating expenses (in HRK mn)

Administrative expenses development (in HRK mn)

Operating expenses slightly lower (HRK 1 mn or 0.1%) coming from reduction of deposit insurance premium and lower depreciation expense;
Employee costs up as a result of investing in IT internal resources;
Administrative expenses increased (+11.0%) due to the timely addresing regulatory requirements and improvements of Bank's processes in order to eliminate technological debt:
consulting services for initiated regulatory projects (Euro, MREL),
migration to Visa brand,
write-offs,
renovation of earthquake-damaged buildings and
costs caused by COVID-19 pandemic (disinfection of business premises and COVID certificates).
Source: HPB management reports 24

Provisioning

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

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

Key financials – Balance sheet

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

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

Corporate portfolio industry distribution

Corporate gross loans per industry (in %)

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

Composition of equity and liabilities

Favourable impact on costs from observable trend of reduction of interest rates on deposits and continuous effective interest rate management;
Customer deposits dominate the funding mix with an 83.2% share
Bank holds 5.92% of all deposits on a market at 30.11.2021 (31.12.2020 = 5.75%);
Stable wholesale funding structure attracted funds through foreign financial institutions, CBRD and CNB repo loans.

Liquidity Overview

Liquidity ratios

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

Continuously strong capital position

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

Source: HPB management reports

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Regulatory Capital Development

Regulatory capital development (in HRK mn)

*Note there is a difference to regulatory capital reported in Investor information for Q4 2020 (HRK 2,314 mn) due to revised deduction amount of deferred tax assets - a decrease of HRK 1.8 mn in comparison with unaudited calculation of regulatory capital presented in Investor information for Q4 2020 **Regulatory capital with inclusion of 2021 net profit

Source: HPB management reports

RWA Development

RWA development (in HRK mn)

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

Meeting MREL requirements

Actual CET1 ratios vs. total MREL requirement

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

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

*Relates to the exposure below HRK 0.5 mn.

1 Executive Summary

2 Macroeconomic environment

3 Financials

4 Risk Management

5 Appendix

Management report of Hrvatska poštanska Banka p.l.c.

Management report of Hrvatska poštanska Banka p.l.c. for the period from January 01 to December 31, 2021 is contained in the previous section of this material.

Marko Badurina Anto Mihaljević

President of the Management Board Member of the Management Board

Ivan Soldo

Member of the Management Board

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

In accordance with the Capital Market Act, the Management Board of HPB plc., states that according to their best knowledge the set of unaudited financial statements for the period from January 01 to December 31, 2021, compiled in accordance with the accounting regulation applicable to credit institutions in Croatia, presents complete and accurate view of assets and liabilities, losses and gains, financial position and results of HPB p.l.c.

Tea Bažant

Executive Head of finance division

Marko Badurina

Chief Executive Officer

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

Annex 1		ISSUER'S GENERAL DATA

Reporting period:		01.01.2021.	to	31.12.2021.
Year:		2021
Quarter:		4
		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 4
	E-mail address: [email protected]
	Web address: www.hpb.hr
Number of employees (end of the reporting	1289
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)			No
Contact person: Tea Bažant				(name of the bookkeeping firm)
	(only name and surname of the contact person) Telephone: 014804670
	E-mail address: [email protected]
Audit firm:
Certified auditor:	(name of the audit firm)
	(name and surname)

BALANCE SHEET as at December 31, 2021





















































Total equity and liabilities (54 + 67)	068	25.462.977.490	27.834.657.526

STATEMENT OF PROFIT AND LOSS for the period January 01, 2021 to December 31, 2021
Submitter: Hrvatska poštanska banka p.l.c.					in HRK
Item	AOP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
Interest income	001	588.918.099	147.709.898	560.475.074	135.480.277
(Interest expenses) (Expenses on share capital repayable on demand)	002 003	51.583.346 -	11.627.607 -	36.363.820 -	8.838.268 -
Dividend received	004	3.292.513	11.671	2.043.665	53.598
Fees and commissions income (Fees and commissions expenses)	005	450.155.698	108.279.355	482.976.369	112.905.359
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through	006	273.888.635	65.272.158	290.099.614	69.031.008
profit or loss, net	007	35.035.565	-	671.529	508
Gains or (-) losses on financial assets and liabilities held for trading, net	008	47.068.263	18.424.922	59.962.657	10.403.671
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	(571.077)	(787.789)	30.491.412	53.461
Gains or (-) losses on 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 Gains or (-) losses on derecognition of non-financial assets, net	012 013	(8.624.819) -	(1.037.018) -	(7.592.753) -	(1.436.657) -
Other operating income	014	10.448.879	4.092.981	18.529.530	11.730.813
(Other operating expenses)	015	13.223.239	3.575.095	19.815.032	11.397.317
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 14 – 15) (Administrative expenses)	016 017	787.027.901 381.956.776	196.219.160 72.394.373	801.279.017 408.674.319	179.924.437 124.512.807
(Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	018	42.002.367	10.488.737	13.916.357	3.479.089
(Depreciation)	019	75.816.110	17.704.706	67.020.386	16.768.958
Modification gains or (-) losses, net (Provisions or (-) reversal of provisions)	020 021	(3.386.347) (61.671.217)	(2.550) 1.020.378	(4.328.639) 306.219	(2.350.084) (20.428.201)
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or	022	109.876.155	26.428.653	63.262.189	61.565.820
loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	023	-	-	-	-
(Impairment or (-) reversal of impairment on non-financial assets)	024	8.711.610	8.711.610	(1.903.399)	(1.903.399)
Negative goodwill recognised in profit or loss	025	-	-	-	-
Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method	026	-	-	-	-
Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as discontinued operations	027	-	-	-	-
Profit or (-) loss before tax from continuing operations (16 – 17 – 18 + 19 – from 20 to 23 + from 24 to 26)	028	226.949.753	59.468.153	245.674.307	(6.420.721)
(Tax expense or (-) income related to profit or loss from continuing operations)	029	44.887.608	10.841.591	43.567.794	(1.968.869)
Profit or (-) loss after tax from continuing operations (27 – 28)
	030	182.062.145	48.626.562	202.106.513	(4.451.852)
Profit or (-) loss after tax from discontinued operations (31 – 32)	031	-	-	-	-
Profit or (-) loss before tax from discontinued operations (Tax expense or (-) income related to discontinued operations)	032 033	- -	- -	- -	- -
Profit or ( – ) loss for the year (29 + 30; 34 + 35)	034	182.062.145	48.626.562	202.106.513	(4.451.852)
Attributable to minority interest [non-controlling interests]	035	-	-	-	-
Attributable to owners of the parent STATEMENT OF OTHER COMPREHENSIVE INCOME	036	182.062.145	48.626.562	202.106.513	(4.451.852)
Income or (-) loss for the current year	037	- 182.062.145	- 48.626.562	- 202.106.513	- (4.451.852)
Other comprehensive income (38 + 50)	038	(82.538.216)	9.184.875	(24.780.853)	(18.371.251)
Items that will not be reclassified to profit or loss (from 39 to 45) + 48 + 49)	039	(4.199.151)	(4.199.151)	1.831.095	2.288.818
Tangible assets Intangible assets	040 041	(7.533.354) -	(7.533.354) -	6.411.028 -	6.411.028 -
Actuarial gains or (-) losses on defined benefit pension plans	042	1.825.625	1.825.625	(2.968.225)	(2.968.225)
Fixed assets and disposal groups classified as held for sale	043	-	-	-	-
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	044 045	- -	- -	- -	- -
Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive	046	-	-	-	-
income, net Fair value changes of equity instruments measured at fair value through other comprehensive income
[hedged item]	047	-	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument]	048	-	-	-	-
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk	049	-	-	-	-
Income tax relating to items that will not be reclassified	050	1.508.578	1.508.578	(1.611.708)	(1.153.985)
Items that may be reclassified to profit or loss (from 51 to 58) Hedge of net investments in foreign operations [effective portion]	051 052	(78.339.065) -	13.384.026 -	(26.611.948) -	(20.660.069) -
Foreign currency translation	053	-	-	-	-
Cash flow hedges [effective portion]	054	-	-	-	-
Hedging instruments [not designated elements]	055	-	-	-	-
Debt instruments at fair value through other comprehensive income Fixed assets and disposal groups classified as held for sale	056 057	(95.463.311) -	16.394.117 -	(32.525.728) -	(25.195.206) -
Share of other recognised income and expense of investments in subsidiaries, joint ventures and	058
associates		-	-	-	-
Income tax relating to items that may be reclassified to profit or (-) loss Total comprehensive income for the current year (36 + 37; 60 + 61)	059 060	17.124.246 99.523.929	(3.010.091) 57.811.437	5.913.780 177.325.660	4.535.137 (22.823.103)
Attributable to minority interest [non-controlling interest]	061	-	-	-	-
Attributable to owners of the parent	062	99.523.929	57.811.437	177.325.660	(22.823.103)

for the period January 01, 2021 to December 31, 2021
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)	003 004	- -	- -
(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	- 227.124.253	- 245.674.307
Adjustments:		-	-
Impairment and provisions	010	174.933.719	67.897.047
Depreciation	011	74.952.898	67.020.386
	012
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	(73.479.009) -	(91.125.598) -
Other non-cash items	014	(537.334.753)	(524.111.254)
Promjene u imovini i obvezama iz poslovnih aktivnosti		-	-
Deposits with the Croatian National Bank	015	(280.916.192)	(107.284.615)
Deposits with financial institutions and loans to financial institutions	016	258.285.873	-
Loans and advances to other clients	017	(1.316.301.519)	496.539.424
Securities and other financial instruments at fair value through other comprehensive income	018	468.611.329	(470.130.770)
Securities and other financial instruments held for trading Securities and other financial instruments at fair value through statement of profit or loss, not traded	019 020	(65.609.242) -	171.790.050 -
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	-	50.800.000
Securities and other financial instruments at amortised cost	022	2.326.911	1.524.413
Other assets from operating activities	023	2.682.650	(10.258.008)
Deposits from financial institutions	024	105.943.541	(78.058.830)
Transaction accounts of other clients Savings deposits of other clients	025 026	1.255.559.114 720.175.408	914.860.795 1.918.206.578
Time deposits of other clients	027	(928.046.118)	(773.984.130)
Derivative financial liabilities and other liabilities held for trading	028	5.952.655	(24.867.990)
Other liabilities from operating activities	029	862.044	244.034.990
Interest received from operating activities [indirect method]	030	588.918.099	552.108.813
Dividends received from operating activities [indirect method] Interest paid from operating activities [indirect method]	031	3.280.842 (51.583.346)	2.043.665 (36.363.820)
(Income tax paid)	032 033	-	-
Net cash flow from operating activities (from 1 to 33)	034	636.339.157	2.616.315.452
Investing activities
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(58.989.941)	(62.657.347)
Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint ventures	036	-	-
Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to
maturity	037	-	-
Dividends received from investing activities	038	2.326.911	1.524.413
Other receipts/payments from investing activities Net cash flow from investing activities (from 35 to 39)	039	-	-
Financing activities	040	(56.663.030) -	(61.132.934) -
Net increase/(decrease) in loans received from financing activities	041	475.822.595	(44.838.724)
Net increase/(decrease) in debt securities issued	042	-	-
Net increase/(decrease) in Tier 2 capital instruments	043	-	-
Increase in share capital (Dividends paid)	044	-	-
Other receipts/(payments) from financing activities	045 046	- -	- -
Net cash flow from financing activities (from 41 to 46)	047	475.822.595	(44.838.724)
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	1.055.498.721	2.510.343.794
Cash and cash equivalents at the beginning of period	049	3.037.318.898	4.084.192.801
Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at the end of period (48 + 49 + 50)	050	(8.624.819)	(7.592.753)
	051	4.084.192.800	6.586.943.842

STATEMENT OF CASH FLOW

STATEMENT OF CHANGES IN EQUITY for the period January 01, 2021 to December 31, 2021															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 instruments	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	-	-		- 264.974.555	200.321.464	-	611.448.026	(477.000)	182.062.145	-	-	-	2.473.104.190
Effects of error corrections	002	-	-	-		- -	-	-	-	-	-	-	-	-	-
Effects of changes in accounting policies	003	-	-	-		- -	-	-	-	-	-	-	-	-	-
Opening balance [current period] (1 + 2 + 3)	004	1.214.775.000	-	-		- 264.974.555	200.321.464	-	611.448.026	(477.000)	182.062.145	-	-	-	2.473.104.190
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 debt to equity	009	-	-	-		- -	-	-	-	-	-	-	-	-	-
Capital reduction	010	-	-	-		- -	-	-	-	-	-	-	-	-	-
Dividends	011	-	-	-		- -	-	-	-	-	-	-	-	-	-
Purchase/sale of treasury shares	012	-	-	-		- -	-	-	-	-	-	-	-	-	-
Sale or cancellation of treasury shares Reclassification of financial instruments from equity to liability	013	- -	- -	- -		- - - -	- -	- -	- -	- -	- -	- -	- -	- -	- -
Reclassification of financial instruments from liability to equity	014 015	-	-	-		- -	-	-	-	-	-	-	-	-	-
Transfers among components of equity instruments	016	-	-	-		- -	91.031.073	-	91.031.073	-	(182.062.145)	-	-	-	-
Share based payments	017	-	-	-		- -	-	-	-	-	-	-	-	-	-
Other increase or ( - ) decrease of equity instruments	018	-	-	-		- -	-	-	-	-	-	-	-	-	-
Total comprehensive income for the current year	019	-	-	-		- (24.780.853)	-	-	-	-	202.106.513	-	-	-	199.820.152
Equity instruments increase or (-) decrease resulting from business combinations	020	-	-	-		- -	-	-	-	-	-	-	-	-	-
Closing balance [current period] (from 4 to 20)	021	1.214.775.000	-	-		- 240.193.702	291.352.537	-	702.479.099	(477.000)	202.106.513	-	-	-	2.672.924.342

Notes to financial statements
1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
	Cumulative	Quarter	Cumulative 72.516.026	Quarter
Debt securities Loans and advances	81.200.505 507.402.688 #	19.781.507 127.826.158	487.949.750	16.735.784 118.744.492
Other assets Deposits	314.906 # -	102.233 -	9.298 -	- -
Other liabilities Total	- 588.918.099	- 147.709.899	- 560.475.074	- 135.480.277
2) INTEREST EXPENSE				in HRK
AOP 002	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
Debt securities	Cumulative - -	Quarter -	Cumulative 123.676	Quarter 123.676
Loans and advances	2.873.659	847.064	4.101.084 -	1.495.434
Other assets Deposits	- 47.526.686	- 10.310.091	32.077.317	- 7.162.374
Other liabilities Total	1.183.001 51.583.346	470.451 11.627.606	61.743 36.363.820	56.784 8.838.268
3) FEE AND COMMISSION INCOME				in HRK
AOP 005	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
Securities	Cumulative 3.269.735	Quarter 3.037.509	Cumulative 3.023.066	Quarter 757.563
Asset management Custody [according to the type of client]	44.754 3.651.553	10.656 97.941	35.100 5.336.081	6.632 1.375.488
Loan commitments	72.553	13.757	25.465 474.556.657	4.283
Other Total	443.117.102 450.155.698	105.119.492 108.279.355	482.976.369	110.761.393 112.905.359
4) FEE AND COMMISSION EXPENSE				in HRK
AOP 006	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
Bank clearing and settlement	Cumulative 1.726.624 #	Quarter 454.600	Cumulative 1.936.040	Quarter 397.663
Other Total	272.162.011 273.888.635	64.817.558 65.272.158	288.163.574 290.099.614	68.633.344 69.031.008
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES				in HRK
AOP 007	Same period of the previous year 01.01.-			Current period 01.01. – 31.12.2021.
	31.12.2020. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	35.035.565 -	- -	- -	- -
Deposits Debt Securities issued	- -	- -	- -	- -
Other financial liabilities Total	- 35.035.565	- -	671.529 671.529	508 508
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING				in HRK
AOP 008	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
	Cumulative	Quarter	Cumulative	Quarter
Equity instruments Debt securities	(770.953) (7.006.878)	(770.953) 5.373.210	10.326.550 (7.400.995)	1.868.962 (4.798.306)
FX transactions and derivatives Total	54.846.094 47.068.263	13.822.665 18.424.922	57.037.101 59.962.657	13.333.015 10.403.671
7) GAINS OR LOSSES ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS
AOP 009	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
	Cumulative	Quarter	Cumulative 30.800.000	Quarter
Equity instruments Debt securities	- -	- -	-	- -
Loans and advances Total	(571.077) (571.077)	(787.788) (787.788)	(308.588) 30.491.412	53.461 53.461
8) OPERATING EXPENSES				in HRK
AOP 015 & AOP 017 & AOP 018	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
Other operating expenses	Cumulative 13.223.239	Quarter 3.575.095	Cumulative 19.815.032	Quarter 11.397.317
Administrative expenses Employee expenses	381.956.776 227.865.502	103.908.003 60.943.106	408.674.319 243.899.806	124.512.807 72.599.025
Other administrative expenses (Contributions in cash rehabilitation committees and Deposit Insurance Schemes) 42.002.367	154.091.274	42.964.897 10.488.737	164.774.513 13.916.357	51.913.782 3.479.089
Amortization	75.816.110	17.704.706	67.020.386	16.768.958
Property, plant and equipment Investment property	43.011.508 -	20.495.780 -	41.840.837 -	10.339.091 -
Other intangible assets Total	32.804.602 512.998.493	(2.791.073) 135.676.541	25.179.550 509.426.095	6.429.867 156.158.171
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES				in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year 01.01.- 31.12.2020.			Current period 01.01. – 31.12.2021.
Modification gains or (-) losses, net	Cumulative (3.386.347)	Quarter (2.549)	Cumulative (4.328.639)	Quarter (2.350.084)
Financial assets at fair value through other comprehensive income	-	-	-	-
Financial assets at amortized cost (Provisions or (-) reversal of provisions)	(3.386.347) (61.671.217)	(2.549) 1.020.378	(4.328.639) 306.219	(2.350.084) (20.428.201)
Liabilities towards resolution committees and deposit insurance systems (Liabilities and Guarantees)	- 17.214.299	- 6.384.646	- (16.209.564)	- (20.877.744)
(Other Provisions) (Impairment or (-) reversal of impairment on financial assets that are not	(78.885.516)	(5.364.268)	16.515.783	449.543
measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income)	109.876.155 577.174	26.428.653 (99.553)	63.262.189 6.409.709	61.565.820 8.141.886
(Financial assets at amortized cost) (Impairment or (-) reversal of impairment off of investments in subsidiaries, joint ventures, and associates) -	109.298.981	26.528.206 -	56.852.480 -	53.423.934 -
(Impairment or (-) reversal of impairment off non-financial assets)	8.711.610	8.711.610	(1.903.399)	(1.903.399)
(Property, plant and equipment) (Investment property)	- 8.711.610	- 8.711.610	(1.791.199) (112.200)	(1.791.199) (112.200)
(Goodwill) (Other intangible assets)	- -	- -	- -	- -
(Other) Total	- 60.302.895	- 36.163.190	- 65.993.647	- 41.584.303
10) LOANS AND ADVANCES						in HRK
AOP 023	Stage 1	31.12.2020. Stage 2	Stage 3	Stage 1	31.12.2021. Stage 2	Stage 3
Central banks	1.219.156.918	-	-	1.326.441.533	-	-
Gross loans Allowance	1.219.156.918 - -	- -	- -	1.326.441.533 -	- -	- -
Government Gross loans	3.942.201.966 3.964.782.989	30.961.917 32.372.813	645 92.659	3.456.836.667	3.442.887.361 27.214.597 27.813.410	- 92.006
Allowance Credit institutuions	(22.581.024) 368.510.087	(1.410.896) -	(92.014) -	(13.949.306) 277.890.317	(598.813) -	(92.006) -
Gross loans Allowance	57.300 27	- -	- -	117.158 (0)	- -	- -
Deposits Allowance	368.996.913 (544.154)	- -	- -	278.323.532 (550.373)	- -	- -
Other financial institutions Gross loans	179.270.857 168.686.297	3.893 3.983	- -	170.320.447 160.489.050	122 122	- -
Allowance Deposits	(584.453) 11.262.954	(90) -	- -	(2.059.031) 12.188.549	(0) -	- -
Allowance Non - financial institutions	(93.941) 2.197.948.615	- 401.530.258	- 636.985.919	(298.121)	- 1.635.385.261 770.088.173 615.079.209	-
Gross loans	2.308.641.061	458.968.687	1.456.435.166	1.661.243.557	836.572.344	1.333.341.814
Allowance Retail	(110.692.446) 7.022.179.455	(57.438.429) 251.126.985	(819.449.247) 162.079.076		(25.858.296) (66.484.172) 7.096.378.085 372.303.977 221.121.872	(718.262.605)
Gross loans Allowance	7.060.672.678 (38.493.224)	272.846.699 (21.719.714)	687.755.861 (525.676.785)	7.190.592.928	413.935.430 (94.214.842) (41.631.453)	831.400.100 (610.278.228)
Total	14.929.267.898	683.623.053	799.065.640	13.949.303.005 1.169.606.868 836.201.081
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS AOP 013	31.12.2020.	31.12.2021.				in HRK
Central banks Local state	- -	- -
Credit institutions	-	-
Other financial institutions Non - financial institutions	- 5.093.283	- 2.895.155
Retail Total	13.772.618 18.865.901	6.421.574 9.316.729
12) DEPOSITS						in HRK
AOP 044 Government	31.12.2020. 400.000.000	31.12.2021. 401.789.616
Local state Credit institutions	5.325.746.428 209.013.088	6.575.113.951 103.484.950
Other financial institutions Non - financial institutions	1.397.035.135 3.162.990.953	1.472.818.860 3.602.215.243
Retail	12.074.349.419	12.349.898.092 24.505.320.711
Total	22.569.135.023

HPB-R-A stock during the reporting period

Stock data and details

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

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

Direct channels

▪ Continuous growth in digital channels with focus on m-banking; m-banking users + 9.3% and transaction volume + 50.9% vs 12M 2020;

M-banking is primary digital channel for retail clients (80 %);
Further increase in e-banking users (+ 1.5%) and transaction volume (+ 30.8%) vs 12M 2020;
E-banking is primary digital channel for corporate clients (82%).

Transaction volume - Mobile banking (in HRK mn)

Transaction volume - Internet banking (in HRK mn)

Profitability

Profit development (in HRK mn)

Return on Average Equity ROAE

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

▪ Highest net profit in 30-year history as a result of increase in NCFI, trading and other income and reduction of deposit insurance premium.

Asset development

HPB's Asset development

(in HRK bn)

Comparative asset growth rates

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

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

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

Products and services are offered to our current and potential clients in:

51 offices and 6 branch offices for retail clients;
12 offices for corporate clients.

Post offices

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

AI Terminal

Hrvatska Poštanska Banka d.d.

2090_10-q_2022-02-28_6915578e-f6eb-4ad5-adfb-8bc81ed96680.pdf

HPB d.d. 2021

Limitation of liability

1 Executive Summary

3 Financials

We are creating conditions for a better life in Croatia

We volunteer for Croatia

Plant with HPB

Source: HPB management reports

Promoting financial literacy

APN loans

Feel the harmony

Sustainability and corporate social responsibility

Sustainability and corporate social responsibility

Sustainability and corporate social responsibility Plan 2022

Record profit after tax in 30-year history

Further progress across strategic pillars

Stable capital position

Strong growth in 2021

Key Financials 2021

Operating profit (in HRK mn)

Profit after tax (in HRK mn)

CET 1 capital ratio (in %)

Highest profit after tax in history

Results by business segments as of 31.12.2021

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

Gross loans development

Gross loans (in HRK mn)

Subsidised Housing Loans

Portfolio quality improves

NPL coverage development (in %)

Strong NPL coverage

Uncovered NPLs to CET 1 trend

1 Executive Summary

2 Macroeconomic environment

3 Financials

5 Appendix

Economic indicators (y-o-y)

COVID-19 measures

1 Executive Summary

3 Financials

Key financials – Income statement

Operating profit development

Net income development

Composition of net income

Net fee income (in HRK mn)

Net interest income (in HRK mn)

Fees and commissions

Net fee income overview (in HRK mn)

Operating expenses

Provisioning

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

Key financials – Balance sheet

Corporate portfolio industry distribution

Composition of equity and liabilities

Liquidity Overview

Liquidity ratios

Continuously strong capital position

1 Executive Summary

3 Financials

5 Appendix

Regulatory Capital Development

Regulatory capital development (in HRK mn)

RWA Development

RWA development (in HRK mn)

Meeting MREL requirements

Actual CET1 ratios vs. total MREL requirement

1 Executive Summary

3 Financials

5 Appendix

Management report of Hrvatska poštanska Banka p.l.c.

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

HPB-R-A stock during the reporting period

Stock data and details

Direct channels

▪ Continuous growth in digital channels with focus on m-banking; m-banking users + 9.3% and transaction volume + 50.9% vs 12M 2020;

Transaction volume - Internet banking (in HRK mn)

Profitability