Hrvatska Poštanska Banka d.d.

Interim / Quarterly Report • Jul 29, 2022

HPB Group H1 2022

Investor information and unaudited Financial statements

Limitation of liability

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

Type and name of prescribed information:	Consolidated financial statements for the period 1.1.2022 - 30.6.2022, HPB Group H1 2022 Investor information and unaudited Financial statements
Issuer name, headquarter and address:	Hrvatska poštanska banka p.l.c., Jurišićeva ulica 4, HR-10000 Zagreb
Issuer's Legal Entity Identifier (LEI)	529900D5G4V6THXC5P79
Home Member State:	Republic of Croatia
International Securities Identification Number (ISIN)	HRHPB0RA0002
Stock code (ticker):	HPB-R-A
Regulated market and segment:	Zagreb Stock Exchage, Official market

In accordance with the Capital Markets Act, Hrvatska poštanska Banka p.l.c. (Bank), as the parent company of the Hrvatska poštanska banka Group (Group), publishes unaudited financial statements for the period from January 1 to June 31, 2022.

Original and official report is published in Croatian.

The report includes:

3

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

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

HPB Group significantly strengthened by the acquisition of Nova Hrvatska banka

▪ On April 14, 2022, HPB took control over NHB

• Intensive acquisition activities are underway, and integration with the parent company is expected in 2023
• Consolidated unaudited financial statements include the financial result of NHB from the acquisition date (April 14, 2022) to the reporting date (June 30, 2022)
• This report contains all data available and known at the time of creation
• Given that post-acquisition activities (PPA and due diligence) are ongoing, during this process it is possible to obtain information that is not, nor can be, known at the moment
• This report contains the expected costs of the transaction, which are based on the estimates of the consultants, without estimating the costs of the software application, restructuring costs and other related costs, which are not known at this time
• The aforementioned circumstances may have an impact on the content of the report.

Ensured preconditions for successful NHB's integration by the end of 2023

1 Executive Summary

2 Macroeconomic environment

3 Financials

HPB took a strong step towards the 5th position on the market through acquisition and organic growth

• On April 14, 2022, the Bank took control of Nova Hrvatska banka (NHB); intensive acquisition activities of NHB marked the second quarter of 2022
• Increase in assets by HRK +7.7 mn due to the acquisition of NHB
• Strengthening the presence on the Croatian market (new business centres for retail and corporate clients)
• Expanded client base on HPB Group level
• Complementary and qualitative loan portfolio without significant exposure to entities from Russia, Ukraine and Belarus; additional strength for growth and expansion of business through acquired human and financial capital
• Integration activities will be carried out in parallel with the process of adopting euro, which is an absolute priority for both institutions
• Achieved 10-digit net profit at the consolidated level as a result of gain on bargain purchase (badwill) and continued profit generation at parent level.

Consolidated data HPB and NHB 30.6.2022

Source: Nova hrvatska banka d.d., management reports as of 30.6.2022 or for the period 14.4. – 30.6.2022 and HPB management reports; financial indicators as of 30.6.2022 or for the period 1.1. – 30.6.2022.

HPB Group made strong strides towards the Top 5 banks on the market

		30 6 2022
Assets	HRK mn	37 922 ,
Net loans to customers	HRK mn	21 909 ,
Deposits	HRK mn	31 049 ,
Equity	HRK mn	3 345 ,
NPL ratio	%	6 9
NPL coverage	%	74 4

		1 1 . - 30 6 2022
Income	HRK mn	587
Net profit	HRK mn	1 066 ,
Cost-to-income ratio	%	75 6
(ROE) Return equity on	%	31 9

Market share by total assets as of 31.3.2022 (in HRK bn)

▪ Significant growth in assets + HRK 7.7 bn is opportunity to enter the top 5 banks by total assets on the Croatian market

• Preserved financial stability, NHB's entrance into HPB Group stopped the deposit outflow caused by the geopolitical situation in Ukraine
• Qualitative loan portfolio with effective cost management and success in default collection resulted in a low level of NPL ratio and NPL coverage significantly above the market level
• High net profit at consolidated level is result of gain on bargain purchase and achieved operating profit made by HPB.

Bank's loan portfolio growth further strengthened by the acquisition

• Gross retail loans dominate the total loans as a result of HPB's strategic focus on this segment, with favorable financing conditions, especially in APN tranches in which HPB has a significant share
• Economy recovery enabled the implementation of acquisition activities, which resulted in further growth of total loans.

HPB's NPL ratio at a record low level

		30 6 2022
Exposure (total loans)	HRK mn	31 497 ,
Total NPL stock	HRK mn	2 182 ,
NPL %	%	6 9
Loss allowance for loans	HRK mn	(1 964) ,
NPL provision	HRK mn	(1 623) ,
PL provision	HRK mn	(340)
NPL Coverage	%	74 4
NPLs covered by provisions not	HRK mn	218

• NPL coverage significantly above market average
• HPB's NPL ratio at a record low level as a result of the recovery of part of the portfolio and successful collection activities.

1 Executive Summary

2 Macroeconomic environment

3 Financials

Economic indicators (y-o-y)

*Source:https://www.porezna-uprava.hr/Dokumenti (data for H1 2020, 2021 and 2022) "I- ACCOMMODATION AND FOOD SERVICE ACTIVITIES " 13

28/07/2022 "G- WHOLESALE AND RETAIL TRADE OF MOTOR VEHICLES AND MOTORCYCLES, REPAIR OF MOTOR VEHICLES AND MOTORCYCLES "

1 Executive Summary

2 Macroeconomic environment

3 Financials

HRK 1.06 bn net profit

Credit institutions key financials – Income statement

		H1 2022
Net interest income	HRK mn	319 9
Net fee loss	HRK mn	114 4
Net trading income	HRK mn	(29 2)
Net other income	HRK mn	0 4
Operating income	HRK mn	405 6
Employee expenses	HRK mn	(148 1)
Administrative expenses	HRK mn	(113 5)
Depreciation	HRK mn	(30 1)
Deposit insurance	HRK mn	(14 9)
Operating expenses	HRK mn	(306 7)
Operating profit	HRK mn	98 9
Bargain purchase (badwill)	HRK mn	1 018 8 ,
Provisioning	HRK mn	(59 8)
profit Net	HRK mn	1 065 6 0 0 ,
Cost-to-income ratio	%	75 6
Return (ROA) asset on	%	2 81
(ROE) Return equity on	%	31 90

Operating profit development in Q2 2022 (in HRK mn)

• Record net profit of HPB Group of HRK 1.1 bn as a result of a bargain purchase resulting from the difference between the fair value of the acquired net assets of NHB and the acquisition cost of that bank
• HPB's operating profit in H1 2022 reduced due to the loss from the adjustment of the book value of bonds to market prices and the absence of the effect of certain one-off transactions, while inflationary pressures and deposit insurance expenses inevitably had an impact on operating expenses
• Despite the decrease in operating profit, HPB continues to record solid positive results and create value for shareholders with a net profit of HRK 57.8 mn
• NHB's contribution to HPB Group's operating result amounts to HRK 28.5 mn (result after HPB took control over NHB)
• Changes in methodology and parameters for provisioning calculation to align with the group policy, as well as increased provisions for court cases (CHF loans) led NHB to a loss of HRK - 35.3 million.

Acquired NHB's human and financial capital led to additional strength for growth

Composition of operating income (in HRK mn) 30.6.2022

Composition of operating expenses (in HRK mn) 30.6.2022

Additional provisions due to alignment with the more conservative standards of the HPB Group

Structure of net provision expenses (in HRK mn) 30.6.2022

• Stage 1&2 changes in macroeconomic parameters on NHB's performing portfolio had most significant impact
• Stage 3 result of successful collection activities and recovery of part of the NPL portfolio
• Other provisions mostly relate to litigations; largest impact on the volume of provision expenses had the increase in legal provisions for loans in CHF in NHB portfolio.

Significant assets growth along with preserved business stability

Credit institutions key financials – Balance sheet

		30. 6. 2022
Liquid assets	HRK mn	9,088
Securities	HRK mn	6,093
Gross loans	HRK mn	23,727
Net loans	HRK mn	21,909
Other assets	HRK mn	831
Total assets	HRK mn	37,922
Deposits	HRK mn	31,049
Loan liabilities	HRK mn	2,692
Other liabilities	HRK mn	837
Total liabilities	HRK mn	34,577
Paid-in capital	HRK mn	1,215
Accumulated other comprehensive income	HRK mn	(126)
Retained earnings or loss carried forward	HRK mn	488
Other reserves	HRK mn	702
Profit or loss for the year	HRK mn	47
Badwill (Gain on bargain purchase)	HRK mn	1,019
Equity and reserves	HRK mn	3,345
Loan-to-deposit ratio	%	70.6
NPL ratio	%	6.9
NPL coverage	%	74.4

• The acquisition of NHB resulted in a significant increase in assets, which brings HPB Group closer to the top 5 banks by total assets on the Croatian market
• Preserved financial stability and maintained stable liquidity position in NHB despite the high level of uncertainty following the Russia's invasion of Ukraine
• Deposit outflow in NHB was stopped, retail segment in particular, after the end of resolution procedure and change in the ownership structure.

Russia's invasion of Ukraine without significant impact on HPB Group's operations

▪ Russia's invasion of Ukraine did not have a significant impact on the financial statements of HPB Group

NHB has low exposure to entities in Russia (0.45%) and negligible exposure to entities in Ukraine and Belarus.

HPB has no exposure to entities in Belarus, and has minimal exposure to entities in Russia and Ukraine (0.00003%)

19 * On July 4, 2022, loan and deposit relationship between NHB and thus HPB Group and Sberbank Europe AG was completely terminated, https://eho.zse.hr/en/issuer-announcements/view/44467

HPB Group supports development of the Croatian economy

Corporate gross loans per industry (in %) 30.6.2022

Preserved financial stability of Croatian banking market

• Achieved funding synergies NHB's acquisition and change in ownership structure stopped deposit outflows caused by Russia's invasion of Ukraine
• Customer deposits are key financing source (81.7%); a vista deposits dominate in the structure of HPB's deposits (83.0%), while in the NHB's structure term deposits make up the majority (72.2%) due to longer fixed terms and attractive interest rates
• Other liabilities relate primarily to loans received from credit institutions CBRD, CNB repo loans and foreign financial institutions.

Financial and liquidity position in the HPB Group maintained stable

• Slightly higher level of the loan-to-deposit ratio at the consolidated level due to the temporary deposits outflow at the end of the first and the beginning of the second quarter due to the impact of the geopolitical situation in Europe on NHB's operations
• Liquidity at a solid level with a liquidity coverage ratio of 139.5%
• Customer deposits dominate funding mix with a share of 81.4%.

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

In accordance with the Capital Market Act, the Management Board of HPB p.l.c., the parent company of HPB Group, states that according to their best knowledge the set of consolidated unaudited financial statements for the period from January 1 to June 30, 2022, are compiled in accordance with the accounting regulation applicable to credit institutions in Croatia, presents complete and accurate view of assets and liabilities, losses and gains, financial position and results of HPB p.l.c., as well as companies included in consolidation as a whole.

On behalf of HPB p.l.c., the parent company of HPB Group:

Executive Head of finance division Chief Executive Officer

Tea Bažant Marko Badurina

Anto Mihaljević

Member of the Management Board

Ivan Soldo

Member of the Management Board

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

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

The HPB Group's net profit after tax is HRK 1,066.6 million. The Group's result relates largely to the results of the parent company in the amount of HRK 57.8 million, while Nova hrvatska banka made a net loss of HRK - 35.3 million, HPB Invest a net loss of HRK - 31.3 thousand and HPB-Nekretnine a net profit of HRK 1.6 million.

President of the Management Board Member of the Management Board

Marko Badurina Anto Mihaljević

Ivan Soldo

Member of the Management Board

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	30.6.2022 do
Year:		2022
Quarter:		2
		Quarterly financial statements
Registration number (MB):	03777928	Issuer's home Member	HRVATSKA
Entity's registration number (MBS):	080010698		State code:
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	1758
Consolidated report:	KD	(KN-not consolidated/KD-consolidated)	KN	KD
Audited:	RN	(RN-not audited/RD-audited)	RN	RD
Names of subsidiaries (according to IFRS):			Registered office:	MB:
HPB Invest d.o.o.		Strojarska 20, 10000 Zagreb		01972278
HPB-nekretnine d.o.o.		Ulica Milana Amruša 8, 10000 Zagreb		01972260
Nova hrvatska banka d.d.		Varšavska ulica 9, 10000 Zagreb		080126398
				Yes
Bookkeeping firm:	No	(Yes/No)	(name of the bookkeeping firm)	No
Contact person: Tea Bažant
	(only name and surname of the contact person) Telephone: 014804670
	E-mail address: Tea.Bazant@hpb.hr
Audit firm:
Certified auditor:	(name of the audit firm)
	(name and surname)

BALANCE SHEET as at June 30, 2022
Submitter: Hrvatska poštanska banka p.l.c.			in HRK
Item	AOP code	Last day of the preceding business year	At the reporting date of the current period
1	2	3	4
Assets
Cash, cash balances at central banks and other demand deposits (from 2 to 4)	001	6,177,641,914	7,182,669,657
Cash in hand	002	1,422,548,361	1,473,281,701
Cash balances at central banks Other demand deposits	003 004	4,339,757,848 415,335,705	5,398,668,791 310,719,165
Financial assets held for trading (from 6 to 9)	005	616,670,614	512,867,142
Derivatives	006	-	1,490,810
Equity instruments Debt securities	007 008	105,639,274 511,031,340	94,298,480 417,077,852
Loans and advances	009	-	-
Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13)	010	9,316,729	8,926,433
Equity instruments Debt securities	011 012	- -	- -
Loans and advances	013	9,316,729	8,926,433
Financial assets at fair value through profit or loss (15 + 16)	014	-	-
Debt securities Loans and advances	015 016	- -	- -
Financial assets at fair value through other comprehensive income (from 18 to 20)	017	4,601,319,906	3,519,401,142
Equity instruments	018	48,896,784	27,436,178
Debt securities Loans and advances	019 020	4,552,423,122 -	3,491,964,964 -
Financial assets at amortised cost (22 + 23)	021	15,955,565,325	25,870,900,426
Debt securities	022	454,371	2,060,548,527
Loans and advances Derivatives - hedge accounting	023 024	15,955,110,954 -	23,810,351,899 -
Fair value changes of the hedged items in portfolio hedge of interest rate risk	025	-	-
Investments in subsidiaries, joint ventures and associates	026	43	43
Tangible assets Intangible assets	027 028	311,192,057 93,395,736	372,624,192 216,070,466
Tax assets	029	642,640	117,048,303
Other assets	030	60,114,393	86,751,768
Fixed assets and disposal groups classified as held for sale Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	031 032	9,200,000 27,835,059,357	32,001,100 37,919,260,672
Liabilities
Financial liabilities held for trading (from 34 to 38)	033	-	3,765,990
Derivatives	034	-	3,765,990
Short positions	035	-	-
Deposits Debt securities issued	036 037	- -	- -
Other financial liabilities	038	-	-
Financial liabilities at fair value through profit or loss (from 40 to 42)	039	-	-
Deposits Debt securities issued	040 041	- -	- -
Other financial liabilities	042	-	-
Financial liabilities measured at amortised cost (from 44 to 46)	043	24,842,134,412	33,891,597,262
Deposits Debt securities issued	044 045	24,747,710,461 -	33,732,360,043 -
Other financial liabilities	046	94,423,951	159,237,219
Derivatives - hedge accounting	047	-	-
Fair value changes of the hedged items in portfolio hedge of interest rate risk Provisions	048 049	- 89,416,940	- 362,771,140
Tax liabilities	050	64,392,779	4,403,882
Share capital repayable on demand	051	-	-
Other liabilities Liabilities included in disposal groups classified as held for sale	052 053	182,369,233 -	304,752,832 -
Total liabilities (33 + 39 + 43 + from 47 to 53)	054	25,178,313,364	34,567,291,106
Equity
Capital	055	1,214,775,000	1,214,775,000
Share premium Equity instruments issued other than capital	056 057	- -	- -
Other equity	058	-	-
Accumulated other comprehensive income	059	240,193,702	- 125,888,263
Retained profit Revaluation reserves	060 061	297,151,162 -	493,992,836 -
Other reserves	062	702,479,141	702,479,141
( - ) Treasury shares	063	(477,000)	-
Profit or loss attributable to owners of the parent (--) Interim dividends	064 065	202,623,988 -	1,066,610,853 -
Minority interests [non-controlling interests]	066	-	-
Total equity (from 55 to 66) Total equity and liabilities (54 + 67)	067 068	2,656,745,993 27,835,059,357	3,351,969,567 37,919,260,673

STATEMENT OF PROFIT AND LOSS for the period January 01, 2022 to June 30, 2022
Submitter: Hrvatska poštanska banka p.l.c.					in HRK
Item		Same period of the previous		Current period
	AOP code	year Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
Interest income (Interest expenses)	001 002	287,010,146 18,921,614	143,235,248 8,927,817	344,206,272 26,817,423	212,454,928 19,935,028
(Expenses on share capital repayable on demand) Dividend income	003 004	- 1,077,695	- 1,077,695	- 1,090,684	- 1,062,232
Fees and commissions income	005	223,141,627	117,029,726	260,179,015	152,101,785
(Fees and commissions expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	006 007	130,055,834 169,597	67,898,061 75,768	141,816,028 2,286,048	79,403,546 -
Gains or (-) losses on financial assets and liabilities held for trading, net	008	27,721,428	12,960,908	(24,396,038)	(9,481,705)
Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	29,175,562	27,815,520	124,073	57,446
Gains or (-) losses on derecognition of financial assets and liabilities at fair value through profit or loss, net	010	-	-	-	-
Gains or (-) losses from hedge accounting, net	011	-	-	-	-
Exchange rate differences [gain or (-) loss], net Gains or (-) losses on derecognition of investments in subsidiaries, joint ventures and associates, net	012 013	(4,115,310) -	(819,326) -	(11,127,330) -	(7,817,189) -
Gains or (-) losses on derecognition of non-financial assets, net	014	-	-	960	960
Other operating income (Other operating expenses)	015 016	6,174,530 5,706,669	3,458,925 3,357,426	21,384,495 7,359,594	17,074,161 5,584,597
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	415,671,158	224,651,160	417,755,134	260,529,447
(Administrative expenses) (Cash contributions to resolution boards and deposit guarantee schemes )	018 019	196,495,423 6,958,179	101,557,580 4,216,929	267,016,957 14,918,143	162,994,695 11,439,054
(Depreciation)	020	34,126,132	16,947,337	44,261,811	26,343,402
Modification gains or (-) losses, net	021	(1,457,954)	1,851,610	(3,666,444)	(875,698)
(Provisions or (-) reversal of provisions) (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or	022	22,472,806	19,260,570	13,657,892	8,926,912
loss)	023	(24,992,891)	(45,264,569)	27,870,345	35,667,528
(Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) (Impairment or (-) reversal of impairment on non-financial assets)	024 025	- -	- -	- 6,057,464	- 6,057,464
Negative goodwill recognised in profit or loss	026	-	-		1,018,765,149 1,018,765,149
Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method	027	-	-	-	-
Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as discontinued operations	028	-	-	-	-
Profit or (-) loss before tax from continuing operations (17 – 18 to 20 + 21 – from 22 to 25 + from	029
26 to 28)	030	179,153,555	129,784,923		1,059,071,227 1,026,989,843
(Tax expense or (-) income related to profit or loss from continuing operations) Profit or (-) loss after tax from continuing operations (29 – 30)		31,640,211	22,914,896	(7,539,626)	(8,552,038)
	031	147,513,344	106,870,027		1,066,610,853 1,035,541,881
Profit or (-) loss after tax from discontinued operations (33 – 34)	032	-	-	-	-
Profit or (-) loss before tax from discontinued operations (Tax expense or (-) income related to discontinued operations)	033 034	- -	- -	- -	- -
Profit or ( – ) loss for the year (31 + 32; 36 + 37)	035	147,513,344	106,870,027		1,066,610,853 1,035,541,881
Attributable to minority interest [non-controlling interests] Attributable to owners of the parent	036 037	- 147,513,344	- 106,870,027	-	- 1,066,610,853 1,035,541,881
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year Other comprehensive income (40 + 52)	038 039	147,513,344 (15,771,394)	106,870,027 (19,795,737)	(366,081,965)	1,066,610,853 1,035,541,881 (194,947,853)
Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	040	(457,723)	-	-	-
Tangible assets	041	-	-	-	-
Intangible assets Actuarial gains or (-) losses on defined benefit pension plans	042 043	- -	- -	- -	- -
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 Gains or (-) losses from hedge accounting of equity instruments at fair value through other comprehensive	046	-	-	-	-
income, net	047	-	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item]	048	-	-	-	-
Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument]	049	-	-	-	-
Fair value changes of financial liabilities measured at fair value through profit or loss attributable to	050
changes in their credit risk 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	(15,313,671)	(19,795,737)	(366,081,965)	(194,947,853)
Hedge of net investments in foreign operations [effective portion] Foreign currency translation	053 054	- -	- -	- -	- -
Cash flow hedges [effective portion]	055	-	-	-	-
Hedging instruments [not designated elements]	056	-	-	-	-
Debt instruments at fair value through other comprehensive income Fixed assets and disposal groups classified as held for sale	057 058	(18,675,208) -	(24,141,142) -	(446,949,152) -	(238,030,223) -
Share of other recognised income and expense of investments in subsidiaries, joint ventures and	059
associates Income tax relating to items that may be reclassified to profit or (-) loss	060	- 3,361,537	- 4,345,405	- 80,867,187	- 43,082,370
Total comprehensive income for the current year (38 + 39; 62 + 63)	061	131,741,950	87,074,290	700,528,888	840,594,028
Attributable to minority interest [non-controlling interest] Attributable to owners of the parent	062 063	- 131,741,950	- 87,074,290	- 700,528,888	- 840,594,028

STATEMENT OF CASH FLOW for the period January 01, 2022 to June 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)	003 004	- -	- -
(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	179,153,555	1,059,071,227
Adjustments:		-	-
Impairment and provisions Depreciation	010	- 1,062,131	45,194,681
	011	34,126,132	44,261,811
Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss	012	(57,066,587)	21,985,917
(Profit)/loss from the sale of tangible assets	013	-	-
Other non-cash items	014	(268,088,532)	(317,388,849)
Promjene u imovini i obvezama iz poslovnih aktivnosti
Deposits with the Croatian National Bank	015	(55,561,516)	(105,854,171)
Deposits with financial institutions and loans to financial institutions	016	- 126,724,669	-
Loans and advances to other clients	017	164,363,340	(7,465,911,646)
Securities and other financial instruments at fair value through other comprehensive income	018	(208,660,022)	0
Securities and other financial instruments held for trading	019	57,603,783	390,296
Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	20,000,000	-
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	-	-
Securities and other financial instruments at amortised cost	022	(877,887)	(2,060,094,156)
Other assets from operating activities	023	2,555,866	(27,818,887)
Deposits from financial institutions Transaction accounts of other clients	024 025	(135,636,590) 982,574,881	286,814,664 6,850,323,508
Savings deposits of other clients	026	986,663,638	2,470,931,128
Time deposits of other clients	027	(554,268,402)	(401,358,871)
Derivative financial liabilities and other liabilities held for trading	028	(3,927,388)	68,579,258
Other liabilities from operating activities	029	274,542,271	109,924,312
Interest received from operating activities [indirect method]	030	287,010,146	344,206,272
Dividends received from operating activities [indirect method]	031	-	1,090,684
Interest paid from operating activities [indirect method]	032	(18,921,614)	(26,817,423)
(Income tax paid) Net cash flow from operating activities (from 1 to 33)	033	-	- 5,782,313
	034	1,557,798,274	891,747,442
Investing activities Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(39,984,754)	(251,169,776)
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	- 877,887	-
Other receipts/payments from investing activities	039	-	-
Net cash flow from investing activities (from 35 to 39)	040	(40,862,641)	(251,169,776)
Financing activities
Net increase/(decrease) in loans received from financing activities Net increase/(decrease) in debt securities issued	041	289,244,441	51,071,660
Net increase/(decrease) in Tier 2 capital instruments	042 043	- -	- -
Increase in share capital	044	-	-
(Dividends paid)	045	-	-
Other receipts/(payments) from financing activities	046	-	681,600
Net cash flow from financing activities (from 41 to 46)	047	289,244,441	51,753,260
Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	1,806,180,074	692,330,926
Cash and cash equivalents at the beginning of period	049	4,091,821,698	6,595,426,694
Effect of exchange rate fluctuations on cash and cash equivalents	050	(4,115,310)	(11,127,330)
Cash and cash equivalents at the end of period (48 + 49 + 50)	051	5,893,886,462	7,276,630,290

STATEMENT OF CHANGES IN EQUITY for the period January 01, 2022 to June 30, 2022														in HRK
		Attributable to owners of the parent								Non-controlling interest
Item	AOP code	Equity	Share premium	Equity instruments issued other than capital		Other equity Accumulated other comprehensive income	Retained profit Revaluation	reserves	Other reserves	( ) Treasury shares	Profit or ( - ) loss attributable to owners of the parent	(-) Interim dividends Accumulat	ed other comprehen Other items sive income	Total
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15 16
Opening balance [before restatement]	001	1,214,775,000	-	-	-	240,193,702	297,151,162	-	702,479,141	(477,000)	202,623,987	-	-	- 2,656,745,992
Effects of error corrections	002	-	-	-	-	-	(5,782,313)	-	-	-	-	-	-	- (5,782,313)
Effects of changes in accounting policies	003	-	-	-	-	-	-	-	-	-	-	-	-	- -
Opening balance [current period] (1 + 2 + 3)	004	1,214,775,000	-	-	-	240,193,702	291,368,849	-	702,479,141	(477,000)	202,623,987	-	-	- 2,650,963,679
Ordinary shares issue	005	-	-	-	-	-	-	-	-	-	-	-	-	- -
Preference shares issue	006	-	-	-	-	-	-	-	-	-	-	-	-	- -
Issue of other equity instruments	007	-	-	-	-	-	-	-	-	-	-	-	-	- -
Exercise or expiration of other equity instruments issued	008	-	-	-	-	-	-	-	-	-	-	-	-	- -
Conversion of receviables to equity instruments	009	-	-	-	-	-	-	-	-	-	-	-	-	- -
Capital reduction	010	-	-	-	-	-	-	-	-	-	-	-	-	- -
Dividends	011	-	-	-	-	-	-	-	-	(204,600)	-	-	-	- (204,600)
Purchase of treasury shares	012	-	-	-	-	-	-	-	-	-	-	-	-	- -
Sale or cancellation of treasury shares	013	-	-	-	-	-	-	-	-	-	-	-	-	- -
Reclassification of financial instruments from equity to liability	014	-	-	-	-	-	-	-	-	-	-	-	-	- -
Reclassification of financial instruments from liability to equity	015	-	-	-	-	-	-	-	-	-	-	-	-	- -
Transfers among components of equity	016	-	-	-	-	-	202,623,987	-	-	-	(202,623,987)	-	-	- -
Equity increase or ( - ) decrease resulting from business combinations Share based payments	017 018	- -	- -	- -	- -	- -	- -	- -	- -	- 681,600	- -	- -	- -	- - - 681,600
Other increase or (-) decrease in equity	019	-	-	-	-	-	-	-	-	-	-	-	-	- -
Total comprehensive income for the current year	020	-	-	-	-	(366,081,965)	-	-	-	-	1,066,610,853	-	-	- 700,528,888
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	(125,888,263)	493,992,836	-	702,479,141	-	1,066,610,853	-	-	- 3,351,969,567

Notes to financial statements
1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Debt securities	Cumulative 39,340,466	Quarter 19,843,714	Cumulative 38,714,851	Quarter 21,093,647
Loans and advances Other assets	247,665,494 3,860	123,387,674 3,860	305,328,932 134,677	191,208,344 126,363
Deposits Other liabilities	326 -	- -	27,813 -	26,574 -
Total	287,010,146	143,235,248	344,206,272	212,454,928
2) INTEREST EXPENSE AOP 002	Same period of the previous year		Current period 01.01. – 30.06.2022.	in HRK
	01.01.-30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	- 1,321,489	- 716,432	- 3,587,171	- 2,693,776
Other assets Deposits	- 17,596,879	- 8,209,703	- 23,046,481	- 17,085,364
Other liabilities Total	3,246 18,921,614	1,682 8,927,817	183,771 26,817,422	155,888 19,935,027
3) FEE AND COMMISSION INCOME				in HRK
AOP 005	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Securities	Cumulative 1,457,267	Quarter 744,506	Cumulative 1,691,833	Quarter 930,290
Asset management Custody [according to the type of client] Loan commitments	21,643 2,586,218 17,295	10,138 1,356,267 5,902	12,328 2,518,814 515,161	6,094 1,263,135 510,201
Other Total	219,059,204 223,141,627	114,912,912 117,029,726	255,440,879 260,179,015	149,392,065 152,101,785
4) FEE AND COMMISSION EXPENSE				in HRK
AOP 006	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Bank clearing and settlement	Cumulative 982,481	Quarter 536,226	Cumulative 5,486,354	Quarter 4,851,136
Other Total	129,073,353 130,055,834	67,361,834 67,898,061	136,329,673 141,816,028	74,552,410 79,403,546
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES				in HRK
AOP 007	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Debt securities	Cumulative -	Quarter -	Cumulative 2,118,089	Quarter -
Loans and advances Deposits	- -	- -	- -	- -
Debt Securities issued Other financial liabilities	- 169,597	- 75,768	- 167,959	- -
Total	169,597	75,768	2,286,048	-
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING AOP 008	Same period of the previous year		Current period 01.01. – 30.06.2022.	in HRK
	01.01.-30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Equity instruments Debt securities	7,136,717 (4,087,657)	2,806,825 (2,763,481)	(11,356,251) (51,939,077)	(7,944,651) (27,398,439)
FX transactions and derivatives Total	24,672,367 27,721,428	12,917,564 12,960,908	38,899,290 (24,396,038)	25,861,385 (9,481,705)
7) GAINS OR LOSSES ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS
AOP 009	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Equity instruments	Cumulative 30,800,000	Quarter 30,800,000	Cumulative -	Quarter (66,627)
Debt securities Loans and advances	- (1,624,438)	- (2,984,480)	- 124,073	- 124,073
Total	29,175,562	27,815,520	124,073	57,446 in HRK
8) OPERATING EXPENSES AOP 015 & AOP 017 & AOP 018	Same period of the previous year 01.01.-30.06.2021.		Current period 01.01. – 30.06.2022.
Other operating expenses	Cumulative 6,108,631	Quarter 3,759,388	Cumulative 7,359,594	Quarter 5,584,596
Administrative expenses Employee expenses	196,495,421 118,123,337	101,557,579 59,431,160	267,016,957 151,054,835	162,994,695 89,359,264
Other administrative expenses (Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	78,372,084 6,958,179	42,126,419 4,216,929	115,962,122 14,918,144	73,635,431 11,439,054
Amortization Property, plant and equipment	33,724,172 21,275,304	16,545,377 10,283,394	44,261,810 24,931,572	26,343,402 14,719,109
Investment property Other intangible assets	- 12,448,868	- 6,261,983	- 19,330,239	- 11,624,293
Total	243,286,403	126,079,272	333,556,505	206,361,747
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year		Current period 01.01. – 30.06.2022.	in HRK
	01.01.-30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Modification gains or (-) losses, net Financial assets at fair value through other comprehensive income	(1,457,954) -	1,851,610 -	(3,666,444) -	(875,698) -
Financial assets at amortized cost (Provisions or (-) reversal of provisions)	(1,457,954) 22,472,806	1,851,610 19,260,570	(3,666,444) 13,657,892	(875,698) 8,926,912
Liabilities towards resolution committees and deposit insurance systems (Liabilities and Guarantees)	- 7,078,587	- 4,164,052	- 20,945,774	- 16,156,766
(Other Provisions) (Impairment or (-) reversal of impairment on financial assets that are not	15,394,220	15,096,518	(7,287,882)	(7,229,855)
measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income)	(24,992,891) (1,373,211)	(45,264,570) (1,704,962)	27,870,345 (13,020,824)	35,667,529 (7,421,930)
(Financial assets at amortized cost) (Impairment or (-) reversal of impairment off of investments in subsidiaries, joint	(23,619,680)	(43,559,608)	40,891,170	43,089,459
ventures, and associates) (Impairment or (-) reversal of impairment off non-financial assets)	- -	- -	- 6,057,464	- 6,057,464
(Property, plant and equipment) (Investment property)	- -	- -	1,081,611 -	1,081,611 -
(Goodwill) (Other intangible assets)	- -	- -	- 4,975,853	- 4,975,853
(Other) Total	- (1,062,131)	- (27,855,609)	- 51,252,145	- 51,527,602
10) LOANS AND ADVANCES AOP 023		31.12.2021.			30.06.2022.
Central banks	Stage 1 1,326,441,533	Stage 2 -	Stage 3 -	Stage 1 1,734,580,675	Stage 2 -
Gross loans Allowance	1,326,441,533 -	- -	- -	1,734,925,219 (344,544)	- -
Government Gross loans	3,442,887,361 3,456,836,667	27,214,597 27,813,410	- 92,006	3,500,835,676 3,507,097,961	39,228,201 39,808,594
Allowance Credit institutuions	(13,949,306) 277,890,317	(598,813) -	(92,006) -	(6,262,286) 12,657,898	(580,393) 17,702
Gross loans Allowance	117,158 (0)	- -	- -	392,941 (76)	18,082 (380)
Deposits Allowance	278,323,532 (550,373)	- -	- -	12,268,020 (2,987)	- -
Other financial institutions Gross loans	170,320,447 160,489,050	122 122	- -	270,552,496 255,499,061	115,911 117,449
Allowance Deposits	(2,059,031) 12,188,549	(0) -	- -	(1,634,005) 17,106,515	(1,538) -
Allowance Non - financial institutions	(298,121) 1,635,385,261	- 770,088,173	- 615,079,209	(419,076) 4,866,569,487	- 902,856,036
Gross loans Allowance	1,661,243,557 (25,858,296)	836,572,344 (66,484,172)	1,333,341,814 (718,262,605)	4,933,641,265 (67,071,778)	965,591,986 (62,735,950)	1,006,949,489 (717,864,164)
Retail Gross loans	7,096,378,085 7,190,592,928	372,303,977 413,935,430	221,121,872 831,400,100	11,217,511,057 11,345,213,873	730,572,373 804,124,740	1,149,397,939
Allowance Total	(94,214,842) 13,949,303,005	(41,631,453) 1,169,606,868	(610,278,228) 836,201,081	(127,702,816) 21,602,707,289	(73,552,366) 1,672,790,223	(904,557,637)
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
AOP 013 Central banks	31.12.2021. -	30.06.2022. -
Local state Credit institutions	- -	- -
Other financial institutions Non - financial institutions	- 2,895,155 6,421,574	- 2,670,835 6,255,597
Retail Total	9,316,729	8,926,433
12) DEPOSITS	31.12.2021.	30.06.2022.
AOP 044 Government Local state	401,789,616 6,575,113,951	750,228,697 7,840,979,901
Credit institutions Other financial institutions	103,484,950 1,466,863,467	702,722,177 2,016,864,237
Non - financial institutions Retail	3,598,925,458 12,601,533,019	6,223,399,956 16,220,371,878
Total	24,747,710,461	33,754,566,845