Hrvatska Poštanska Banka d.d.

Interim / Quarterly Report • Jul 29, 2022

Financijski izvještaji za razdoblje od 01.01. – 30.06.2020. godine

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

(nerevidirani)

Type and name of prescribed information:	Financial statements for the period 1.1.2022 - 30.6.2022, HPB d.d. H1 2022 Unaudited Financial statements for period from January 1 to June 30, 2022
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. publishes unaudited financial statements for the period from January 1 to June 30, 2022.

Original and official report is published in Croatian.

The report includes:

• Management report of Hrvatska poštanska Banka p.l.c.
• Statement by persons responsible for compiling the report
• Unaudited set of unconsolidated financial statements (balance sheet, profit or loss statement, statement of changes in equity, cash flow statement) and
• Notes to the financial statements

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

The acquisition of Nova Hrvatska banka marked the first half of 2022. On March 2, 2022, the Bank became the new owner of Sberbank d.d. in resolution, and on April 14, 2022, took control of Nova Hrvatska banka (NHB), which strengthened the largest banking business network.

European Central Bank and the European Commission confirmed the Croatia's entry to the euro area from January 1, 2023 hence further activities for the introduction of the euro continued as the Bank's priority in 2022.

An increase in assets of HRK +2.2 billion compared to December 31, 2021 led to the historically highest asset.

Realized net profit in the amount of HRK 57.8 mn despite strong price competition on domestic banking market, further decline in government bond prices and impact on trading portfolio as well as increased expenses for deposit insurance and intensive project activities.

The increase in the gross loan portfolio is the result of acquisition activities in all Bank's segments. In the retail segment, historical results were achieved in terms of the number of processed and approved applications in one tranche of APN (subsidized housing) loans.

The quality of the loan portfolio was improved - lowest NPL ratio in recent history, as a result of the recovery of part of the portfolio and the positive collection effects in the first half of the year (including significant exposures covered by guarantees from the Republic of Croatia). At the same time, the NPL coverage ratio is significantly above the Croatian market average and amount 78.5%.

The Russian invasion of Ukraine did not have a significant impact on the Bank's financial statements - it has no exposure to entities in Belarus, and minimal exposure to entities in Russia and Ukraine (0.00003%).

Key financials – Income statement

		6M 2021	6M 2022	∆ y-o-y
Net interest income	HRK mn	271	255	(16.2)	6
Net fee income	HRK mn	88	95	6.8	5
Operating income	HRK mn	414	329	(85.3)	6
Operating expense	HRK mn	(235)	(258)	23.0	5
Operating profit	HRK mn	179	70	(108.3)	6
Provisioning	HRK mn	(1)	(13)	12.0	5
Net profit	HRK mn	147	58	(88.8)	6
Cost-to-income ratio	%	56.8	78.6	21.7	5
Net interest margin	%	2.6	2.4	(0.1)	6

Net interest income lower by 6.0% due to strong price competition on domestic banking market and continued decrease in interest rates. Due to the agile interest expenses management, they were reduced by a significant 23.7%, but this could not fully compensate the drop in interest income.

Net fee and commission income higher by 7.7% mainly due to higher provisions in card business as a result of HPB's activities on increasing the quality and diversification of card products.

Net loss from trading primarily refers to the adjustment of the book value of the securities in Bank's portfolio to market prices, and represents the biggest burden on operating income (down by HRK 60.4 mn y-o-y), which could not be avoided due to the change in current inflationary expectations and the announced increase in reference interest rates. However, the Bank's portfolio consists of high-quality government bonds of the Republic of Croatia, whose credit rating was recently increased due to the expected entry of the Republic of Croatia into the Eurozone, and these current losses will be completely eliminated by the maturity of these securities. In addition to these effects, a one-off gain from the sale of the non-core share portfolio was recorded in 2021, which in that year increased the result for financial assets by HRK 30.8 mn, while no such sales transactions were recorded in 2022.

In contrast to these effects, in a last year prior to entrance into the eurozone, an excellent result was recorded from the FX trading (HRK + 5 mn vs H1 21), in accordance with a successful tourist season.

Increased administrative costs because of intensive activities initiated on regulatory projects (EURO, ESG and others), the acquisition of NHB and improvements of Bank's processes to eliminate technological bottleneck. At the same time, due to the deposit growth at the credit institutions level, the costs for deposit insurance started to be calculated again in 2022 in accordance with legal regulations.

Slight increase in total provision expenses is primarily the result of increased sales activities and changes in certain parameters in 2022, which led to recorded expenses of HRK 8.6 mn for Stages 1 and 2 (vs 21: revenue of HRK 22 mn).

Despite above developments in 2022 and despit all the aggravating exogenous effects, HPB achieved net profit of HRK 58 mn in 2022, thereby continuing to create value for its shareholders.

	31.12.2021	30.6.2022	∆ ytd
HRK mn	27,834	30,207	5 2,373
HRK mn	15,727	16,345	5 619
HRK mn	23,450	26,084	5 2,634
HRK mn	2,650	2,355	6 (296)
HRK mn	2,631	2,424	(207) 6
%	60.7	57.0	6 (3.8)
%	7.9	4.6	6 (3.3)
%	9.8	7.2	6 (2.5)
%	8.4	7.0	6 (1.3)
%	61.1	75.9	5 14.8
%	75.9	78.5	5 2.6
HRK mn	(1,575)	(1,589)	5 15

Key financials – Balance sheet

Assets records continuous growth +8.5% ytd as a result of increase in liquid assets +17.2% primarily due to continuous increase in deposits and increase in gross loans +3.9% and securities +4.6%.

Gross loans portfolio up 3.9% due to the acquisition activities in all segments. Retail segment record increase by 2.1% in H1 2022 due to the increase in loan volume according to successful results of seventh APN tranche (historical year in term of the number of processed and approved applications), that will be seen even more in following months. Corporate segment showed significant credit growth in H1 2022 because of intensive acquisition activities. Although lack of significant investments affected lending activities, the focus was on liquidity requirements. Public sector records a constant increase in loans to local self-government units through the financing of investments in communal infrastructure and working capital. In the government segment, the Bank maintains its position with minor fluctuations in the movement of the portfolio. SME growth is the result of portfolio diversification to a larger number of clients, client acquisitions made through quality refinancing exposures in other banks, monitoring of clients' investments and working capital in accordance with their growth and potential.

Portfolio quality continuously improves. Expected decrease in NPL ratio reached lowest level in recent history. It's result of efficient collection activities, recovery of part of portfolio and collection/exit of significant exposure covered by guarantees of the Republic of Croatia. Increase in asset additionally confirms the positive trend of coverage and NPL ratio development. NPL coverage grown significantly above Croatian market average. Expectations represent continuation of the positive trend in line with the planned portfolio movements.

Customer deposits dominate the funding mix with an 86.2% share. Deposits up +11.2% in all segments comparing to December 31, 2021: SMEs +22.4%, corporate +20.8%, financial markets +9.9% and retail +2.8%.

Capital reduction is result of falling prices of securities in Bank's portfolio (government bonds).

Bank's total capital ratio in H1 2022 amount 24.01% and is above first binding transitional MREL requirement (23.4%) which entered into force on 1 January 2022.

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

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

President of the Management Board Member of the Management Board

Marko Badurina Anto Mihaljević

Ivan Soldo Member of the Management Board

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

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

8

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	do	30.6.2022
Year:		2022
Quarter:		2
		Quarterly financial statements
Registration number (MB):	03777928		Issuer's home Member State code:	HRVATSKA
Entity's registration number (MBS):	080010698
Personal identification number (OIB):	87939104217		LEI:	529900D5G4V6THXC5P79
Institution code:	319
	Name of the issuer: HRVATSKA POŠTANSKA BANKA, p.l.c.
Postcode and town:	10000		ZAGREB
Street and house number: JURIŠIĆEVA STREET 4
E-mail address: hpb@hpb.hr
Web address: www.hpb.hr
Number of employees (end of the reporting	1303
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 No
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)
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)

Submitter: Hrvatska poštanska banka p.l.c. in HRK Last day of the AOP At the reporting date Item preceding business code of the current period year 1 2 3 4 Assets Cash, cash balances at central banks and other demand deposits (from 2 to 4) 001 6,177,602,131 5,615,880,966 Cash in hand 002 1,422,548,361 1,264,461,689 Cash balances at central banks 4,339,757,848 4,270,681,775 003 Other demand deposits 415,295,922 80,737,502 004 Financial assets held for trading (from 6 to 9) 616,670,614 420,429,546 005 Derivatives 006 - 1,298,415 Equity instruments 007 105,639,274 94,298,480 Debt securities 008 511,031,340 324,832,651 Loans and advances - - 009 Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13) 9,316,729 8,926,433 010 Equity instruments - - 011 Debt securities 012 - - Loans and advances 9,316,729 8,926,433 013 Financial assets at fair value through profit or loss (15 + 16) - - 014 Debt securities 015 - - Loans and advances - - 016 Financial assets at fair value through other comprehensive income (from 18 to 20) 4,601,319,906 2,993,069,082 017 Equity instruments 48,896,784 27,295,178 018 Debt securities 019 4,552,423,122 2,965,773,904 Loans and advances - - 020 Financial assets at amortised cost (22 + 23) 15,955,565,325 20,543,226,355 021 Debt securities 022 454,371 2,046,837,680 Loans and advances 023 15,955,110,954 18,496,388,675 Derivatives - hedge accounting - - 024 Fair value changes of the hedged items in portfolio hedge of interest rate risk - - 025 Investments in subsidiaries, joint ventures and associates 026 9,760,843 80,760,843 Tangible assets 027 310,680,257 293,762,038 Intangible assets 028 93,319,300 94,823,971 Tax assets 029 642,640 68,583,033 Other assets 51,761,294 56,017,675 030 Fixed assets and disposal groups classified as held for sale 9,200,000 32,001,100 031 Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31) 27,835,839,039 30,207,481,042 032 Liabilities Financial liabilities held for trading (from 34 to 38) - 4,073,957 033 Derivatives 034 - 4,073,957 Short positions 035 - - Deposits 036 - - Debt securities issued - - 037 Other financial liabilities - - 038 Financial liabilities at fair value through profit or loss (from 40 to 42) - - 039 Deposits 040 - - Debt securities issued 041 - - Other financial liabilities - - 042 Financial liabilities measured at amortised cost (from 44 to 46) 24,851,379,590 27,542,120,023 043 Deposits 24,756,955,639 27,442,214,081 044 Debt securities issued - - 045 Other financial liabilities 046 94,423,951 99,905,942 Derivatives - hedge accounting 047 - - Fair value changes of the hedged items in portfolio hedge of interest rate risk 048 - - Provisions 049 89,416,940 106,714,284 Tax liabilities 050 64,392,779 11,455,849 Share capital repayable on demand - - 051 Other liabilities 052 180,219,880 188,301,485 Liabilities included in disposal groups classified as held for sale - - 053 Total liabilities (33 + 39 + 43 + from 47 to 53) 25,185,409,189 27,852,665,598 054 Equity Capital 055 1,214,775,000 1,214,775,000 Share premium 056 - - Equity instruments issued other than capital 057 - - Other equity 058 - - Accumulated other comprehensive income 240,193,702 - 107,949,310 059 Retained profit 060 291,352,537 487,676,736 Revaluation reserves 061 - - Other reserves 062 702,479,098 702,479,098 ( - ) Treasury shares 063 (477,000) - Profit or loss attributable to owners of the parent 064 202,106,513 57,833,920 (--) Interim dividends - - 065	BALANCE SHEET as at June 30, 2022
	Minority interests [non-controlling interests]	066	-	-
Total equity (from 55 to 66) 067 2,650,429,850 2,354,815,444 Total equity and liabilities (54 + 67) 27,835,839,039 30,207,481,042 068

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	001	287,009,820	143,235,247	266,965,246	135,215,142
(Interest expenses)	002	18,919,654	8,926,693	14,239,907	7,358,474
(Expenses on share capital repayable on demand) Dividend income	003 004	- 1,077,695	- 1,077,695	- 1,676,379	- 1,647,927
Fees and commissions income	005	218,458,416	114,661,249	236,276,121	130,479,502
(Fees and commissions expenses)	006	130,051,416	67,895,930	141,037,670	78,627,550
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	007	169,597	75,768	2,286,048	-
Gains or (-) losses on financial assets and liabilities held for trading, net	008	27,721,428	12,960,908	(29,856,223)	(14,941,891)
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	012	(4,115,310)	(819,326)	(4,253,473)	(943,332)
Gains or (-) losses on derecognition of investments in subsidiaries, joint ventures and associates, net	013	-	-	-	-
Gains or (-) losses on derecognition of non-financial assets, net	014	-	-	-	-
Other operating income (Other operating expenses)	015 016	4,909,411 5,914,838	2,679,298 3,556,129	17,240,661 8,306,997	13,989,294 5,399,442
Total operating income, net (1 – 2 – 3 + 4 + 5 – 6 + from 7 to 15 – 16)	017	409,520,711	221,307,607	326,874,258	174,118,622
(Administrative expenses)	018	191,774,124	99,069,657	209,336,027	107,909,310
(Cash contributions to resolution boards and deposit guarantee schemes )	019	6,958,179	4,216,929	11,612,046	8,132,957
(Depreciation) Modification gains or (-) losses, net	020 021	33,724,172 (1,457,954)	16,746,259 1,851,610	35,400,230 (3,666,444)	17,679,904 (875,698)
(Provisions or (-) reversal of provisions)	022	22,472,806	19,260,570	18,654,644	13,923,663
(Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or	023
loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	024	(24,992,891) -	(45,264,569) -	(9,659,323) -	(1,862,140) -
(Impairment or (-) reversal of impairment on non-financial assets)	025	-	-	-	-
Negative goodwill recognised in profit or loss	026	-	-	-	-
Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for	027
using the equity method Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as	028	-	-	-	-
discontinued operations		-	-	-	-
Profit or (-) loss before tax from continuing operations (17 – 18 to 20 + 21 – from 22 to 25 + from 26 to 28)	029	178,126,367	129,130,371	57,864,190	27,459,230
(Tax expense or (-) income related to profit or loss from continuing operations)	030	31,449,818	22,794,378	30,270	(679,486)
Profit or (-) loss after tax from continuing operations (29 – 30)	031
Profit or (-) loss after tax from discontinued operations (33 – 34)		146,676,549 -	106,335,993 -	57,833,920 -	28,138,716 -
Profit or (-) loss before tax from discontinued operations	032 033	-	-	-	-
(Tax expense or (-) income related to discontinued operations)	034	-	-	-	-
Profit or ( – ) loss for the year (31 + 32; 36 + 37)	035	146,676,549	106,335,993	57,833,920	28,138,716
Attributable to minority interest [non-controlling interests] Attributable to owners of the parent	036 037	- 146,676,549	- 106,335,993	- 57,833,920	- 28,138,716
STATEMENT OF OTHER COMPREHENSIVE INCOME
Income or (-) loss for the current year Other comprehensive income (40 + 52)	038 039	146,676,549 (15,771,394)	106,335,993 (19,795,737)	57,833,920 (348,143,012)	28,138,716 (123,863,216)
Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	040	(457,723)	-	-	-
Tangible assets	041	-	-	-	-
Intangible assets	042	-	-	-	-
Actuarial gains or (-) losses on defined benefit pension plans	043	-	-	-	-
Fixed assets and disposal groups classified as held for sale	044	-	-	-	-
Share of other recognised income and expense of entities accounted for using the equity method Fair value changes of equity instruments measured at fair value through other comprehensive income	045	-	-	-	-
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
changes in their credit risk	050	-	-	-	-
Income tax relating to items that will not be reclassified Items that may be reclassified to profit or loss (from 53 to 60)	051	(457,723) (15,313,671)	-	-	-
			(19,795,737)	(348,143,012)	(123,863,216) -
	052
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	057	(18,675,208)	(24,141,142)	(425,072,380)	(159,069,948)
Fixed assets and disposal groups classified as held for sale Share of other recognised income and expense of investments in subsidiaries, joint ventures and	058	-	-	-	-
associates	059	-	-	-	-
Income tax relating to items that may be reclassified to profit or (-) loss	060	3,361,537	4,345,405	76,929,368	35,206,732
Total comprehensive income for the current year (38 + 39; 62 + 63) Attributable to minority interest [non-controlling interest]	061 062	130,905,155 -	86,540,256 -	(290,309,092) -	(95,724,500) -

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	178,126,367	57,864,190
Adjustments:		-	-
Impairment and provisions	010	(1,062,131)	12,661,765
Depreciation	011	33,724,172	35,400,230
Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss	012	(57,066,587)	27,446,102
(Profit)/loss from the sale of tangible assets	013	-	-
Other non-cash items	014	(268,090,166)	(124,868,673)
Promjene u imovini i obvezama iz poslovnih aktivnosti
Deposits with the Croatian National Bank	015	(55,561,516)	(22,184,481)
Deposits with financial institutions and loans to financial institutions	016	(126,725,072)	-
Loans and advances to other clients	017	164,363,340	(2,790,789,969)
Securities and other financial instruments at fair value through other comprehensive income	018	(240,109,840)	1,141,486,267
Securities and other financial instruments held for trading	019	57,603,783	166,899,214
Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	-	-
Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	20,000,000	-
Securities and other financial instruments at amortised cost Other assets from operating activities	022	(877,887)	(2,046,383,309)
Deposits from financial institutions	023 024	2,105,485 (135,636,590)	(5,437,893) 286,814,664
Transaction accounts of other clients	025	1,021,093,171	294,875,512
Savings deposits of other clients	026	986,663,638	2,420,945,132
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)	9,555,948
Other liabilities from operating activities	029	266,958,751	(9,374,433)
Interest received from operating activities [indirect method]	030	287,009,820	131,750,105
Dividends received from operating activities [indirect method]	031	1,077,695	1,676,379
Interest paid from operating activities [indirect method] (Income tax paid)	032	(18,919,654)	(6,881,432)
Net cash flow from operating activities (from 1 to 33)	033 034	- 1,556,480,989	(5,782,314) (825,685,867)
Investing activities		-	-
Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	(39,651,990)	(42,787,782)
Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint
ventures	036	-	(71,000,000)
Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to	037	-	-
maturity
Dividends received from investing activities	038	(877,887)	-
Other receipts/payments from investing activities Net cash flow from investing activities (from 35 to 39)	039	-	-
Financing activities	040	(40,529,877) -	(113,787,782) -
Net increase/(decrease) in loans received from financing activities	041	289,244,441	51,071,660
Net increase/(decrease) in debt securities issued	042	-	-
Net increase/(decrease) in Tier 2 capital instruments	043	-	-
Increase in share capital	044	-	-
(Dividends paid)	045	-	-
Other receipts/(payments) from financing activities	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	1,805,195,553	(887,720,389)
Cash and cash equivalents at the beginning of period Effect of exchange rate fluctuations on cash and cash equivalents	049	4,084,192,801	6,586,943,842
Cash and cash equivalents at the end of period (48 + 49 + 50)	050 051	(4,115,310) 5,885,273,044	(4,253,473) 5,694,969,980

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 sive income	Other items	Total
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
Opening balance [before restatement]	001	1,214,775,000	-	-	-	240,193,702	291,352,537	-	702,479,099	(477,000)	202,106,512	-	-	-	2,650,429,850
Effects of error corrections	002	-	-	-	-	-	(5,782,313)	-	-	-	-	-	-	-	(5,782,313)
Effects of changes in accounting policies	003	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Opening balance [current period] (1 + 2 + 3)	004	1,214,775,000	-	-	-	240,193,702	285,570,224	-	702,479,099	(477,000)	202,106,512	-	-	-	2,644,647,537
Ordinary shares issue	005	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Preference shares issue	006	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Issue of other equity instruments	007	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Exercise or expiration of other equity instruments issued	008	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Conversion of receviables to equity instruments	009	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Capital reduction	010	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividends	011	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Purchase of treasury shares	012	-	-	-	-	-	-	-	-	(204,600)	-	-	-	-	(204,600)
Sale or cancellation of treasury shares	013	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Reclassification of financial instruments from equity to liability	014	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Reclassification of financial instruments from liability to equity	015	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Transfers among components of equity Equity increase or ( - ) decrease resulting from business combinations	016	- -	- -	- -	- -	- -	202,106,512 -	- -	- -	- -	(202,106,512) -	- -	- -	- -	- -
Share based payments	017 018	-	-	-	-	-	-	-	-	681,600	-	-	-	-	681,600
Other increase or (-) decrease in equity	019	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Total comprehensive income for the current year	020	-	-	-	-	(348,143,012)	-	-	-	-	57,833,920	-	-	-	(290,309,092)
Closing balance [current period] (from 4 to 20)	021	1,214,775,000	-	-	-	(107,949,310)	487,676,736	-	702,479,099	-	57,833,920	-	-	-	2,354,815,445

1) INTEREST INCOME				in HRK
AOP 001	Same period of the previous year 01.01.-			Current period 01.01. – 30.06.2022
	30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	39,340,466 247,665,494	19,843,714 123,387,674	36,349,114 230,599,107	18,727,910 116,478,520
Other assets Deposits	3,860 0	3,860 0	17,025 0	8,712 0
Other liabilities Total	- 287,009,820	- 143,235,247	- 266,965,246	- 135,215,142
2) INTEREST EXPENSE				in HRK
AOP 002	Same period of the previous year 01.01.-			Current period 01.01. – 30.06.2022
	30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	0 1,321,432	0 716,423	0 2,165,184	0 1,271,789
Other assets Deposits	- 17,594,976	- 8,207,784	- 12,037,768	- 6,076,636
Other liabilities Total	3,246 18,919,654	2,486 8,926,693	36,954 14,239,907	10,049 7,358,474
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
	Cumulative	Quarter	Cumulative	Quarter
Securities Asset management	1,457,267 21,643	744,506 10,138	1,334,670 12,328	573,127 6,094
Custody [according to the type of client] Loan commitments	2,586,218 17,295	1,356,267 5,902	2,518,814 14,387	1,263,135 9,427
Other Total	214,375,993 218,458,416	112,544,436 114,661,249	232,395,922 236,276,121	128,627,719 130,479,502
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 2,076,935	Quarter 1,441,717
Other Total	129,068,935 130,051,416	67,359,703 67,895,930	138,960,734 141,037,670	77,185,833 78,627,550
				in HRK
5) GAIN/LOSSES ON TERMINATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES AOP 007	Same period of the previous year 01.01.-			Current period 01.01. – 30.06.2022
	30.06.2021. Cumulative	Quarter	Cumulative	Quarter
Debt securities Loans and advances	0 -	0 -	2,118,089 -	0 -
Deposits Debt Securities issued	- -	- -	- -	- -
Other financial liabilities Total	169,597 169,597	75,768 75,768	167,959 2,286,048	- 0
6) GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING				in HRK
AOP 008	Same period of the previous year 01.01.- 30.06.2021.			Current period 01.01. – 30.06.2022
	Cumulative	Quarter	Cumulative	Quarter
Equity instruments Debt securities	7,136,717 (4,087,657)	2,806,825 (2,763,481)	-11,356,251 (48,137,590)	-7,944,651 (23,596,953)
FX transactions and derivatives Total	24,672,367 27,721,428	12,917,564 12,960,908	29,637,618 (29,856,223)	16,599,713 (14,941,891)
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
8) OPERATING EXPENSES	Same period of the previous year 01.01.-			in HRK
AOP 015 & AOP 017 & AOP 018	30.06.2021. Cumulative	Quarter	Cumulative	Current period 01.01. – 30.06.2022 Quarter
Other operating expenses	5,914,838	3,556,129	8,306,997	5,399,442
Administrative expenses Employee expenses	191,774,124 115,471,619	99,069,657 58,024,106	209,336,027 124,757,280	107,909,310 64,630,893
Other administrative expenses (Contributions in cash rehabilitation committees and Deposit Insurance Schemes)	76,302,505 6,958,179	41,045,551 4,216,929	84,578,747 11,612,046	43,278,417 8,132,957
Amortization Property, plant and equipment	33,724,172 21,275,304	16,746,259 10,484,276	35,400,230 19,826,987	17,679,904 9,812,607
Investment property Other intangible assets	- 12,448,868	- 6,261,983	- 15,573,243	- 7,867,297
Total	238,371,313	123,588,973	264,655,300	139,121,614
9) IMPAIRMENT LOSSES AND PROVISION EXPENSES				in HRK
AOP 019 & AOP 020 & AOP 021 & AOP 023	Same period of the previous year 01.01.- 30.06.2021.			Current period 01.01. – 30.06.2022
Modification gains or (-) losses, net	Cumulative -1,457,954	Quarter 1,851,610	Cumulative -3,666,444	Quarter -875,698
Financial assets at fair value through other comprehensive income Financial assets at amortized cost	- (1,457,954)	- 1,851,610	- (3,666,444)	- (875,698)
(Provisions or (-) reversal of provisions) Liabilities towards resolution committees and deposit insurance systems	22,472,806 -	19,260,570 -	18,654,644 -	13,923,663 -
(Liabilities and Guarantees) (Other Provisions)	7,078,587 15,394,220	4,164,052 15,096,518	11,966,759 6,687,885	7,177,751 6,745,913
(Impairment or (-) reversal of impairment on financial assets that are not measured at fair value through profit or loss)	(24,992,891)	(45,264,569)	(9,659,323)	(1,862,140)
(Financial assets at fair value through other comprehensive income) (Financial assets at amortized cost)	(1,373,211) (23,619,680)	(1,704,962) (43,559,607)	(12,975,621) 3,316,298	(7,376,726) 5,514,587
(Impairment or (-) reversal of impairment off of investments in subsidiaries, joint ventures, and associates)	-	-	-	-
(Impairment or (-) reversal of impairment off non-financial assets)	-	-	-	-
(Property, plant and equipment) (Investment property)	- -	- -	- -	- -
(Goodwill) (Other intangible assets)	- -	- -	- -	- -
(Other) Total	- (1,062,130)	- (27,855,608)	- 12,661,765	- 12,937,222
10) LOANS AND ADVANCES						in HRK
AOP 023	Stage 1	31.12.2021. Stage 2	Stage 3	Stage 1	30.06.2022. Stage 2
Central banks Gross loans	1,326,441,533 1,326,441,533	- -	- -	1,432,295,704 1,432,295,704	- -	Stage 3 - -
Allowance Government	- 3,442,887,361	- 27,214,597	- -	- 3,422,159,474	- 35,026,839	- -
Gross loans Allowance	3,456,836,667 (13,949,306)	27,813,410 (598,813)	92,006 (92,006)	3,428,340,279 (6,180,805)	35,606,786 (579,947)	92,006 (92,006)
Credit institutuions Gross loans	277,890,317 117,158	- -	- -	2,056,001,476 117,525	- -	- -
Allowance Deposits	(0) 278,323,532	- -	- -	(0) 2,065,686,677	- -	- -
Allowance Other financial institutions	(550,373) 170,320,447	- 122	- -	(9,802,725) 262,349,058	- 3,711	- 2,885
Gross loans	160,489,050	122	-	247,102,659	834	503,028
Allowance Deposits	(2,059,031) 12,188,549	(0) -	- -	(1,415,057) 17,079,706	(9) -	(500,143) -
Allowance Non - financial institutions	(298,121) 1,635,385,261	- 770,088,173	- 615,079,209	(419,076) 2,554,068,480	- 628,221,351	- 260,613,395
Gross loans Allowance	1,661,243,557 (25,858,296)	836,572,344 (66,484,172)	1,333,341,814 (718,262,605)	2,606,661,912	681,724,458 (52,593,432) (53,503,107)
Retail Gross loans	7,096,378,085 7,190,592,928	372,303,977 413,935,430	221,121,872 831,400,100	7,323,825,044 7,407,997,858	363,935,892 400,594,179	936,923,631 (676,310,235) 157,889,076 824,959,003
Allowance Total	(94,214,842) 13,949,303,005	(41,631,453) 1,169,606,868	(610,278,228) 836,201,081	17,050,699,236 1,027,187,793	(84,172,815) (36,658,287)	(667,069,926) 418,505,357
11) NON-TRADING FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS		in HRK
AOP 013 Central banks	31.12.2021. -	30.06.2022. -
Local state Credit institutions	- -	- -
Other financial institutions Non - financial institutions	- 2,895,155	- 2,670,835
Retail Total	6,421,574 9,316,729	6,255,597 8,926,433
12) DEPOSITS		in HRK
AOP 044 Government	31.12.2021. 401,789,616	30.06.2022. 402,285,506
Local state	6,575,113,951	6,881,900,280
Credit institutions Other financial institutions Non - financial institutions	103,484,950 1,472,818,860 3,602,215,243	185,274,966 1,702,928,632 5,145,813,916