Moneta Money Bank A.S.

Annual Report (ESEF) • Mar 20, 2025

MONETA Money Bank - EN - 2024_v5_FINAL I6USJ58BDV2BO5KP3C312024-01-012024-12-31I6USJ58BDV2BO5KP3C312023-01-012023-12-31I6USJ58BDV2BO5KP3C312024-12-31I6USJ58BDV2BO5KP3C312023-12-31I6USJ58BDV2BO5KP3C312022-12-31ifrs-full:IssuedCapitalMemberI6USJ58BDV2BO5KP3C312022-12-31ifrs-full:StatutoryReserveMemberI6USJ58BDV2BO5KP3C312022-12-31ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMemberI6USJ58BDV2BO5KP3C312022-12-31ifrs-full:RetainedEarningsMemberI6USJ58BDV2BO5KP3C312022-12-31I6USJ58BDV2BO5KP3C312023-01-012023-12-31ifrs-full:IssuedCapitalMemberI6USJ58BDV2BO5KP3C312023-01-012023-12-31ifrs-full:StatutoryReserveMemberI6USJ58BDV2BO5KP3C312023-01-012023-12-31ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMemberI6USJ58BDV2BO5KP3C312023-01-012023-12-31ifrs-full:RetainedEarningsMemberI6USJ58BDV2BO5KP3C312023-12-31ifrs-full:IssuedCapitalMemberI6USJ58BDV2BO5KP3C312023-12-31ifrs-full:StatutoryReserveMemberI6USJ58BDV2BO5KP3C312023-12-31ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMemberI6USJ58BDV2BO5KP3C312023-12-31ifrs-full:RetainedEarningsMemberI6USJ58BDV2BO5KP3C312024-01-012024-12-31ifrs-full:IssuedCapitalMemberI6USJ58BDV2BO5KP3C312024-01-012024-12-31ifrs-full:StatutoryReserveMemberI6USJ58BDV2BO5KP3C312024-01-012024-12-31ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMemberI6USJ58BDV2BO5KP3C312024-01-012024-12-31ifrs-full:RetainedEarningsMemberI6USJ58BDV2BO5KP3C312024-12-31ifrs-full:IssuedCapitalMemberI6USJ58BDV2BO5KP3C312024-12-31ifrs-full:StatutoryReserveMemberI6USJ58BDV2BO5KP3C312024-12-31ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMemberI6USJ58BDV2BO5KP3C312024-12-31ifrs-full:RetainedEarningsMemberiso4217:CZKxbrli:sharesiso4217:CZKxbrli:shares 3 CONTENT Annual Financial Report 2024 CONTENT 7  |  LETTER FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 11  |  LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD 21  |  HIGHLIGHTS 21  |  KEY EVENTS IN 2024 27  |  2024 FINA NCIAL RESULTS AND GUIDANC E 28  |  CONDENSED  CONSOLIDATED FINANCIAL STATEMENTS 29  |  KEY PERFORMANCE INDICATOR S 30  |  2025–2029 MEDIUM-TERM GUIDANCE 31  |  MARKET PERFORMANCE OF THE BANK’S SHARES 35  |  1. PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES 35  |  1.1   BASIC INFORMATION ABOUT MONETA MONEY BANK AND ITS SUBSIDIARI ES 37  |  1.2   STRATEGY 38  |  1.3   DIVIDEND POLICY 39  |  1.4   SHAREHOLDER STRUCTURE  43  |  2. STRATEGY AND RESULTS 43  |  2.1   MACROECONOMIC ENVIRONMENT 43  |  2.2   MARKET DEVELOPMENT 45  |  2. 3   REPORT ON BUSINESS ACTIVITIES 45  |  2.3.1   Overview 46  |  2.3.2   Retail Segment B usiness Per formance  49  |  2.3.3   Commercial Segment Business Performance  52  |  2 .3.4   Treasury Segment Performan ce and Other 52  |  2 .4   GROUP FINANCIAL OVERVIE W 52  |  2 .4.1   Statement of Financial Posi tion Analysis  54  |  2.4.2   Statement of Profit or Loss Anal ysis 59  |  3. CAPITAL AND LIQUIDITY 59  |  3 . 1    C A P I T A L 59  |  3.1.1   Regulatory Framework 61  |  3.1.2   Capital and Risk-Weighted Assets  61  |  3.1.3   Capital Management  63  |  3.1.4    The Internal Capital Adequa cy A ssessment Process (ICAAP) 64  |  3.1.5   Recovery and R esolution 64  |  3.2   LIQUIDITY 64  |  3.2.1   Regulatory Framework 65  |  3.2.2   Internal Liquidity Adequacy Assessment Process (ILAAP) 65  |  3.2.3   Liquidity Position 66  |  3.3   FUNDING 69  |  4. CORPORATE GOVERNANCE STATEMENT 69  |  4.1   ORGANISATIONAL CHART 70  |  4.2   GENERAL MEETING 72  |  4.3   SUPERVISORY BOARD 72  |  4.3.1   Position and Responsibilities of the Supervisory Board 74  |  4.3.2   Mem bers of the Supervisory Board 77  |  4.3.3   Activity Report of the Supervisory Board 78  |  4.4   AUDIT COMMITTEE 79  |  4.4.1   Members of the Audit Committee 79  |  4.4.2   Activity Report of the Audit Committee 81  |  4.5   MANAGEM ENT BOARD 81  |  4.5.1   Management, Responsibilities and Structure of the Management Board  81  |  4.5.2   Duties and Responsibilities of the Management Board under Czech Law  83  |  4.5.3   Members of the Management Board 86  |  4.5.4   Activity Report of the Management Board 87  |  4.6   KEY EXECUTIVE MANAGERS 88  |  4.7   MATERIAL RISK TAKERS 4 CONTENT Annual Financial Report 2024 89  |  4.7.1   Remuneration of Material Risk Takers 89  |  4.8   REMUNERATION AND BENEFITS OF MEMBERS OF THE SUPERVISORY BOARD, THE MANAGEMENT BOARD AND KEY EXECUTIVE  MANAGERS 89  |  4.8.1   Remuneration Policy Applied to the Super visory and Management Boards 90  |  4.8.2   Remuneration and Benefits of Supervisory Board Members in 2024 90  |  4.8.3   Remuneration of Audit Committee Members in 2024 91  |  4.8.4   Remuneration and Benefits Awarded to and Received by Management Board Members in 2024 91  |  4.8.5   Remuneration and Benefits Awarded to and Received by Key Executive Managers in 2024 91  |  4.9   SHARES AND SHARE OPTIONS HELD BY THE SUPERVISORY BOARD, THE MANAGEMENT BOARD, AUDIT COMMITTEE MEMBERS  AND KEY E XECUTIVE MANAGERS  91  |  4.10   OT HER INFORMATION REGARDING THE MEMBERS OF THE MANAGEMENT BOARD, TH E SUPERVISORY BOARD, AUDIT  COMMITTEE AND KEY EXECUTIVE MANAGERS 92  |  4.11   COMMITTEES ESTABLISHED BY THE SUPERVISORY BOARD AND THE MANAGEMENT BOARD 92  |  4.11.1   Committees Established by the Superv isory Boa rd 93  |  4.11.2   Committees Established by the Management Board 98  |  4.12   INTERN AL AUDIT 98  |  4.13   INFORM ATION ON INTERNAL CONTROL AND APPROACH TO RISKS IN THE PROCESS OF ACCOUNTING AND PREPARING FINANCIAL  STATEMENTS 99  |  4.14   CORPORATE GOVERNANCE BU ILDING BLOCKS 101  |  4.15   REMUNERATION CHARGED BY EXTERNAL STATUTORY AUDITORS OF THE GROUP IN 2024 101  |  4.16   OTHER LEGAL REQUIREMENTS 102  |  4.17   REPORT ON RELATIONS 102  |  4.18   RIGHTS ATTACHED TO SHARES OF THE BANK 107  |  5. RISK MANAGEMENT 107  |  5.1   RISK GOVER NANCE 107  |  5.1.1   M ain Principles and Goals of Risk Management  107  |  5.1.2   Risk Management Organisational Structure  109  |  5.2   CREDIT RI SK 109  |  5.2.1   Credit Risk Management 109  |  5.2.2   Individually Managed Exposures 109  |  5.2.3   Portfolio Managed Exposures   109  |  5.2.4   Co unterparties in the Financial Market  110  |  5 .2.5   Categorisation of Exposures  110  |  5.2.6   Coll ateral  110  |  5.2.7   Allowances Calcul ation 110  |  5 .2.8   Credit Concen tration Risk 111  |  5.2.9   Credit Portfolio and Its Quali ty 111  |  5.2.10   Modified Financial Assets 111  |  5.2.11   Environmental, Social and Governance (ESG) Risk Management 112  |  5.3   CONCENTRATION RISK 112  |  5.4   MARKET AND LIQUIDITY RISK 112  |  5.4.1   Interest Rate Risk 112  |  5.4.2   Foreign Exchange Risk 112  |  5.4.3   Liquidity Risk 112  |  5. 5   OPERATIONAL RISK 113  |  5.5.1   Compliance Risk 114  |  5.5.2   C yber Security 117  |  5. 5.3   Business Continuity 117  |  5. 5.4   Legal Risk 118  |  5.5.5   Legal Disputes 118  |  5.6   MODEL RISK 118  |  5.7   RISK OF EXCES SIVE LEVERAGE 121  |  6. OPINION OF THE SUPERVISORY BOARD 125  |  7. MANAGEMENT AFFIDAVIT 129  |  8. FINANCIAL SECTION 129  |  INDEPENDENT AUDITOR’S REPORT 141  |  CONSOLIDATED FINANCIAL STATEMENTS OF MONETA MONEY BANK, a.s. 147  |  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF MONETA MONEY BANK, a.s. 225  |  SEPARATE FINANCIAL STATEMENTS OF MONETA MONEY BANK, a.s. 5 CONTENT Annual Financial Report 2024 231  |  NOTES TO SEPARATE FINANCIAL STATEMENTS OF MONETA MONEY BANK, a.s. 307  |  9. ADDITIONAL DISCLOSURES 307  |  9.1   GOVERNIN G LAW 308  |  9.2   SIGNIFICANT INVESTMENTS 308  |  9.3   TRADEMARKS, LICENCES AND SUB-LICENCES 308  |  9.4   EXPENSES ON RESEARCH AND DEVELOPMENT 308  |  9.5   INTELLECTUAL PROPERTY 308  |  9.6   DESCRIPTION OF REAL ESTATE OWNED AND LEASED BY THE GROUP 308  |  9.7   MEMBERSH IPS IN INDUSTRY AND OTHER ASSOCIATIONS  308  |  9.8   MATERIAL CONTRACTS 309  |  9.9   PHILANTHROPIC ACTIVITIES 313  |  10. ALTERNATIVE PERFORMANCE MEASURES 319  |  11. INFORMATION ABOUT CAPITAL AND CAPITAL REQUIREMENTS 325  |  12. FORWARD-LOOKING STATEMENTS 325  |  12.1   MACROECONOMIC OUTLOOK 326  |  12.2   MATERIAL ASSUMPTIONS FOR MEDIUM-TERM GUI DANCE FOR 2025–2029 329  |  13. SUSTAINABILITY STATEMENT 329  |  INDEPENDENT AUDITOR’S REPORT 335  |  CONSOLIDATED SUSTAINABILITY STATEMENT 455  |  ANNEX 455  |  THE LIST OF SIGNIFICANT INTERNAL POLICIES 457  |  2024 KEY PERFORMANCE INDICATO RS OF THE MANAGEMENT BOA RD AND KEY EXECUTIVE MANAGERS 463  |  GLOSSARY Gabriel Eichler Chairman of the Supervisory Board 7 LETTER FROM THE CHAIRMAN OF THE SUPERVISORY BOARD Annual Financial Report 2024 LETTER FROM THE CHAIRMAN  OF THE   SUPERVISORY  BOARD   Dear Shareholders, Your Bank ended the year 2024 with excellent results  and growth in a barely growing Czech economy. MONETA Money B ank outperformed the early market  guidance on every metric generating consolidated net  profit of CZK 5.8 billion, a near 12 per cent increase on  2023. While both net interest income and fee income  grew, the former by 4 per cent to CZK 8.9 billion and the  latter considerably by 16.6 per cent to CZK 3.1 billion,  resulting  in  operating  income  growth  by  more  than  6 per  cent  to  CZ K  12.9 billion,  the management  kept  operating expenses stable at CZK 5.7 billion. This  w as  underpinne d  by  a  solid,  nearly  8  per  c e nt  growth in  MONETA’s deposit base  to CZK 430  billion,  its gross perfor ming loan book was up by 4.5 per cent  to CZK 276 billion and the balance sheet neared half a  trillion Czech crowns. The recovery in MONETA’s lending  operations was balanced  across both the commercial  and retail businesses. Mortgage new volumes increased  by  104.4 per  cent, new  loans  to small  business  were  up by 59.5 per cent, while new investment lendin g to  businesses grew by 54.1 per cent .  MONETA’s  cost  of  risk  was  well  managed  in  2024,  coming in at CZK 386 million, or 14 basis points against  the  average  net  loan  portfolio.  The  non-performing  loan ratio in 2024 was 1.3 per cent, a record low. Moreover,  MONETA’s  focus  on  liquidity  and  capital  structure  ensured  that  the  Bank  strengthened  its  capital position in 2024. A successful bond issue raised  EUR  300  million  to  buttress  the  Bank’s  minimum  requirement  for  own  funds  and  eligible  liabilities  (MREL)  po sition.  T he  CNB’s  Supervisory  Review  and  Evaluation Process (SREP) gave a  positive assessment  of MONETA and reduced the SREP capital requirement  by 30 basis points to 10 per cent, effective 1 January  2025. MONETA comfortably met and exceeded all of its  regulatory capital requirements with reported cap ital  adequacy  ratio  of  18.25  per  cent  on  a  consolidated  basis and MREL ratio at 26.99 per cent.  The  Bank’s  robu st  capital  position  ensures  the  continuation o f the high dividend payout ratio policy.  In  2024  it  was  able  to  distribute  CZK  6.1  billion  to  shareholders  in  two  tranches  of  dividends  totalling  CZK 12 per share. The Management Board is proposing  and the Supervisory Board supports a 2024 dividend of  CZK 10 per share, a dividend payout ratio of 88 per cent  from  the  2024  consolidated  net  profit.  The  proposal  will be put to MONETA’s shareholders for approval at  the annual General Meeting on 24 April 2025. These  results were a chieved in  a slow-growing Czech  economy, with a CZK 271 billion budget deficit, which  was  above  the  government’s  original  target  partially  due to the costs of the devastating floods that hit the  country  in  Sep tember.  Inflation  fell  from  an  average  10.7 per cent in 2023 to 2.4 per cent in 2024, allowing the  C NB  to  reduce  interest  rates  by  a  cumulative  300  basis  points  from  December  2023  to  December  2024,  with  an  impact  on  interest  income  margins.  On  the  oth e r  hand,  continuing  l ow  unemployment  positively impacts clients’ behaviour and cost of risk.  MONETA maintained  a leading  role  in  digital  banking  in  2024.  The  award-winning  Smart  Banka  mobile  application  is  n ow  M ONETA’s  key  client  interaction  platform.  Digit al  channels  accounted  fo r  a  combined  1.5  million  register ed  users  in  2024,  an  increase  of  7.3 per cent year-on -year, and they play an increasingly  large  role  in  both  commercial  and  retail  lending  origination s.  Moreover,  MONETA  offers  41  pro ducts  fully  online.  With  more  banking  business  condu cted  online  and  cyber-crime  getting  more  sophis ticated,  MONETA  pays  consi derable  attention  to,  and  invests  in, its securit y systems and protocols. GOVERNANCE MONETA  Money  Bank  has  a  two-tier  corporate  governance  structure.  The  independent  and  non -executive  Supervisory  Board  that  I  chair  is  primarily  responsible  for  nominating  and  overseeing  the  Bank’s  Management  Board, providing advice and  guidance to the Management Board, and reviewing all of its key decisions and appointments. The Supervisory  Board  ensures  that  the  Bank  complies  with  all  Czech  and Europ ean regulatory requirements, that it adheres  to best practices, and that the Bank’s General Meetin gs  are  conduc te d  properly  and  in  accordance  with  protocol.  In 2024, the Bank convened  two General Meetings. At  the first one, held on 23 April, shareholders approved  the  2023  financial  results,  the  2023  Remuneration  Report and the appointment of Deloit te to conduct the  statutory  au dit for 2024. Shareholders also approved  the  distr i bution  of  2023  net  profit  via  a  dividend  of  CZK 9 per share, for a total amount of CZK 4.6 billion.  The divi dend was paid on 21 May 2024. This General  Meeting  was  attended  by  75  per  cent  of  the  shares  entitled to vote. At the sec ond General Meeting, held  8 LETTER FROM THE CHAIRMAN OF THE SUPERVISORY BOARD Annual Financial Report 2024 on 19 November, 76 per cent of shareholders approved  the distribution of an extraordinary dividend of CZK 3  per share, for a total amount of CZK 1.5 billion, which  was paid on 17 December 2024. The Supervisory Board has nine members, six of whom  are  appo i nted  by  shareholders  an d  three  elected  by  MONETA’s  employees.  In  September  2024,  the  terms  of  office  of  three  Supervisory  Board  members  expired:  Messrs.  Clare  Ronal d  Clarke,  Denis  Arthur  Hall  and  Michal  Petrman.  At  th e  19  November  2024  General  Meeting,  shareholders  re-elected  Mr.  Clarke  and Mr. Hall, and elected Mrs. Prokopcová to succeed Mr. Petrman. Mrs. Jirásková, a current m e mber of the  Supervisory Board, was  elected as a new  member of  the Audit Committee and Mrs. Prokopcová as its Chair.  Following  the  resignation  of  two  employee-elected  members  of  the  Supervis ory  Board,  Mrs.  Zuzana  Filipová  and  Mrs.  Jana  Výbošťoková,  the  Supervisory  Board accepted proposals by the Management Board  to  co-opt  Mrs.  Monika  Kalivodová  and  Mrs.  Linda  Kavanová  to  the  Supervisory  Board.  MONETA  employees will have th e opportunity to vote on their  membership  of  the  Supervisory  Board  at  the  next  employee  election,  which  will  take  p l ace  during  the  first half of 2025.  Current  members  of  the  Supe rvis ory  Board  are  thus  Miroslav  Singer  (Vice-Chairman),  Kateřina  Jirásková,  Zuzana  Prokopcová,  Clare  Ronald  Clarke  and  Denis  Arthur Hall,  the  employee-elected Klára Escobar, and  the  co-opted  employee  members Monika  Kalivodová  and Li nda Kavanová. The Supervisory Board has three  committees,  Nomination,  Remuneration  an d  Risk,  whose  Chairs  an d  members  are  detaile d  in  Chapter  4.11 of this Annual Financial Report. Members of the Supervisory Board and it s committees  regularly  e ngage  with  the  Management  Board  fo r  informal  discussi ons. The Supervisory  Board  formally  met six times in 2024. A crucial aspect of the Bank is  its  internal  c ontrol  systems,  the  functionality  and  efficiency of which were assessed by the Supervisory  Board  and  were  found  to  be  effective.  We  also  met  to discuss MONETA’s quarterly results, and the Bank’s  overall  performance  and  position  in  the  market  i n  the  context  of  the  Czech,  and  broader  European,  macroeconomic environment. Upon  the  propo sal  and  rec ommendation  of  the  Nomination  Committee,  the  Supervisory  Board  in  September  2024  el ected  Mr.  Andrew  John  Gerber,  MONETA’s  Chief  Retail  Banking  Officer,  to  the  Management  Board  for  a  four-year  term.  Mr.  Gerber  has  been  with  MONETA  since  2016.  The  Supervisory  Board  also  followed  the  Nomination  Committee’s  proposal  and  recommen d ation  to  extend  the  term  of  the  Management  Board’s  Vice-Chairman,  Mr.  Carl  Normann Vökt, by a f urther four years effective from  28 January 2025. RATINGS AND AWARDS MONETA’s  performance  was  recognised  by  rating  agencies,  with a Moody’s rating  of A2  stable,  and  an  AA  rating  from  M SCI,  which  cited  high  standards  of  corp orate  governance  and  a  rigorous  approach  to  cyber security. The  Bank  was  once  again  honoured  at  the  Czech  Republic’s prestigious annual Zlatá koruna (Gold Crown)  finan cial  i ndustry  awards,  r eceiving  nine  awards,  including  four  golds  in  the  Entrepreneurs,  Business  Loan  and  Business  Accounts  categories,  and  for  the  fourth  conse cutive  year,  the  Smart  Banka  mobile  banking application received the People’s Choice gold  crown.  In  the  annual  Visa  Best  Bank  awards  by  the  Czech  Republic’s leading economic newspaper, Hospod á řské  noviny, MONETA retained its silver ranking in the main  category of Best Bank 2024, and was rec ognised as the  most  customer-f riendly  bank .  MONETA  also  ranked  among  top  ten  most  valuable  Czech  companies  in  a  study carried out by Deloitte. GUIDANCE AND OUTLOOK FOR 2025 MONETA  Money  Bank  enters  2025  in  good  health.  The  Bank  is  well  capitalised,  profitable  and  very  well  managed.  The  Management  Board  of  MONETA  Money Bank has updated its guidance for 2025–2029,  with  consolidated  net  profit  for  the  entire  period  of  CZK 33.3 billion, including 2025 revised to CZK 6 billion  to  reflect  the  Bank’s  strategy  of  growing  its  l e nding  activities  while  at  the  same  time  maintaining  high  liquidity and a good capital position. MONETA  bases  its  plans  primarily  on  the  CNB’s  forec asts for the Czech economy. Th e CNB is cautiously  optimistic on economic growth, forecasting 2 per cent  in  2025  and  2.4  per  cent  in  2026.  Unemploym e nt  is  expected to  rise to 3  per cent but  will remain  below  the  European  Union  average.  The  central  bank  has  indicated  that it  will  adjust interest  rates as inflation  moves  closer  to  its  long-term  target  of  2  per  cent.  The last cut of 25 basis points to 3.75 per cent was in  February 2025. Cauti on is in order. The forecast should be viewed in the  context of relative pessimism among our main trading  partners, with no growth or indeed decline in Germany,  and the uncertainty arising from the very activist new  US  administration.  Traditional  key  industries,  th e  automotive  industry  in  particular,  are  facing  serious  challenges both in conversion to electro-mobility and  competition  from  C hina.  Large  European  economies  9 LETTER FROM THE CHAIRMAN OF THE SUPERVISORY BOARD Annual Financial Report 2024 are facing problems in a number of sectors, Europe is  showing signs o f serious disunity and lethargy at a time  of  nee d  for  major  improvements  in  competitiveness  and  military  pre paredness,  w hile  the  US  has  moved  towards aggressive activ ism in trade, military alliances  and territorial claims, suggesting dramatic changes in  world order. Yours sincerely, Gabriel Eichler Chairman of the Supervisory Board MONETA Money Bank, a.s. Tomáš Spurný Chairman of the Management Board 11 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 LETTER FROM THE CHAIRMAN  OF THE   MANAGEMENT  BOARD   Dear Shareholders, I am pleased to report that MONETA performed strongly  throughout 2024, and has de livered a set of financial  results  that  outperfo rmed  our  market  guid ance.  Our  net profit for th e year was CZK 5.8 billion, an increase of  11.7 per cent on 2023, and our operating income came  in at CZK 12.9 billion, up by 6.3 per cent year-on-year. The  recovery  in  lending  activity  that  we  saw  in  the  early months of 2024 continued throughout the year,  which  together with  lower interest rates  on  deposi ts  combined  to  under pin  our  net  interest  income  of  CZK 8.9 bi llion, an increase of 4 per cent on the previous  year. Demand for credit and the repr icing of our depo sit  products  were bo th  driven  by the  continuing  decline  in interest  rates, with  th e  Czech  National Bank (CNB)  delivering  eight  successive  reductions  in  its  key  rate  since December 2023 as inflation fell. As at the end of  the year the two-week repo rate stood at 4 per cent. A  further reduction took place in February 2025, when  the rate fell to 3.75 per cent.  Our  net  fe e  and  commission  income  exceed ed  our  expectations,  at  CZK  3.1  billion,  up  16.6  per  cent  year-on -year.  This  was  driven  primarily  by  the  distribution of third-party produ cts such as insurance,  and  wealth  management.  These  proved  particularly  attractive to our depositors who sought higher retur n s  than that offered by regular savings and term accounts. On the operating expenses side, I am pleased to report  stability, which was achieve d by our ongoing focus on  efficiency  and  cost-discipline,  despite  the  per sistent  upward pressure on our cost base. Ope rating expen ses  came in at CZK 5.7 billion, which was stable compared  to last year.  We  benefitted  from  a  consistently  low  cost  of  risk  throughout the year, which stood at CZK 386 million, or  14 basis points of the average net loan portfolio, and  was in line with our guidance.  Every year MONETA’s tax bill increases, and we make  significant payments into the national budget by way of  income, withholding, value added and other taxes. In  2024 our effective tax rate was 14.6 per ce nt, as guided.  MONETA’s  total  tax  payments  to  the  state  budget  in  2024 came to CZK 4.4  billion, up by 10.4 per cent on  the CZK 4 billion we paid last year. In  2024  our  balance  sheet  increased  by  8  per  cent  to  CZK  495  billion.  Our  customer  deposit  base  rose  by 7.7 per cent year-on-year to CZK 430 billion as we  continued  to  gather  deposits  despite  the  decline  in  interest rates. Our lending volumes also increased, with  our gross performing loan  portfolio up by 4.5 per cent  to C ZK 276 billion.  It  is  pleasing  that  the  year-on-year  recovery  in  our  lending  was  distributed  across  almost  all  of  our  products in both the commercial and retail segments. Mortgage  new  volumes  were  up  by  104.4  per  cent,  consumer lending volumes grew by 39.7 per cent, and  our  loans  to  small  businesses  ros e  by  59.5  per  cent.  Investment  loans  also  grew  by  54.1  per  cent.  The  increase in our le nding volumes was facilitated by our  online digital distribution, as well as the sterling work  of  our customer-facing  staf f,  who  are  incentivised to  support MONETA’s lending activ ities.  Of  particular  note  this  year  has  been  the  growth  in  our  business  of  distributing  third-party  wealth  management  p roducts,  where  new  volumes  nearly  doubled  compared  to  2023.  Demand  increased  on  the  back  of  declining  interest  rates  as  clients  sought  higher  yields on  their savin gs and  reserves.  MONETA  distributed  net  n ew  volumes  o f  CZK  23.5  billion,  up  by 88.2 per  cent  a gainst last year. Our wide  range of  funds,  and  the  fact  that  we  continually  update  our  offering,  is  a  contributory  factor  to  the  success  of  this particular area of our busine ss. The total balance  of  distributed  wealth  management  products  reached  CZK 59.4 billion, up by 54.2 per cent.  In Septemb e r we raised EUR 300 million through bonds  issued to further strengthen and optimise our position  regarding the minimum requirement for own funds and  eligible liabilities (MREL). The six-year b ond issue w as  nine-times oversubscribe d, and was  placed with more  than  130  mostl y  international  institu tional  investor s.  This strengthened our MREL position to 26.99 per cent  as  at  31  December  2024,  a  level  which  comfortably  exceeds our management target of 21.95 per cent. Our  regulatory  capital  stood at  C ZK 31.6 billion  as at  31 December 2024, and our capital adequacy ratio was  18.25 per cent. MONETA’s overall excess capital stood  at CZK 5.5 billion, or CZK 10.8 per share over the capital management  target  of  15.05  per  cent,  excluding  the  2024 dividend accrual. We therefo re comfo rtably meet  and exceed all re gul atory c apital requirements.  MONETA’s capital position provides a solid foundation  for our business in 2025, with the potential to expand  our lending activities and to c ontinue with our dividend  12 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 policy.  In  2024  we  made  total  di vidend  payments  of  CZK  12  per  share,  including  the  extraordinary  dividend of CZK 3 per share that was approved at our  19  November  2024  General  Mee ting  and  distributed  on  17  December  2024.  Gi ven  our  strong  financial  performance in 2024 and our robus t  capital position,  the Management Board will propose a 2024 dividend  distribution  of  CZK  10  per  share.  This  represents  88  per  cent  of  our  consolidated  net  pro fit  for  the  year  and  is  thus  consistent  with  o ur  dividend  target  of  distributing  approximately  90  per  cent  of  our  consolidated net profits to shareholders. The  shared  network  of  ATMs  that  we  established  in  2022 in partnership with three other banks continued  to  develop  in  2024.  MONETA  and  two  of  its  partner  banks  introdu ced a  deposit  tak ing function,  with  the  fourth  partner  committed  to  doing  likewise  in  early  2025. Small businesses and entrepreneurs have found  this se rvice particularly useful, especially for those who  operate  over the  weekends  and during the evenings.  Our alliance now operates 1,966 ATMs across the Czech  Republic, of which 795, or 40 per cent of the network ,  offer the deposit sharing function.  The foun d ation Nadace MONETA Clementia had a very  active 2024. It distributed financial aid and assistance  in the total amount of CZK 35 million to org ani sations,  to employee initiatives, and to those who through no  fault of their own have found themselves  in  financial  hardship.  The  foundation  waived  de bts  totalling  more  than  CZK 13 million  for 36  customers, donated  more  than  CZK  7  million  to  support  the  education  and  personal  developme nt  of  725  disadvantaged  children, provided more than CZK 13 million in grants  to 114 organis ations focused on the environment and  disadvantaged  peop le,  and  also  provided  more  than  CZK  1  million  to  charitable  initiatives  undertaken  by  MONETA’s employee s.  As  every  year,  we  have  prepared  a  medium-term  outlook for  the  next  five  years.  Based  on  our  strong  results  for  2024  and  taking  into  account  economic  forec asts, we aim to  deliver a cumulative net profit of  CZK 33.3 billion in 2025–2029, which is 46.2 per cent  higher than in the last five years.  I will now turn to the Czech economy. CURRENT ECONOMIC ENVIRONMENT Inflation,  the  state  budget  deficit  and  economic  growth were the three main themes running through  the Czech economy during the course of 2024, and with mixed results. Inflation was close to the C NB’s target of  2 per cent for most of the year, which has to be seen  as  a  vindication of  the  central bank’s  tight  monetary  policy  in  t ackling  the  heights  it  reached  in  2023.  As  inflation fell, the central bank made eight consecutive  cut s  to  its  key  2-week  repo  rate,  for  a  total  of  300  basis points to 4  per cent sin ce December 2023. The  latest redu ction came in February 2025, when the rate  was trimmed further 25 basis points to 3.75 per cent.  Inflation  ended-up at 2.4 per  cent in for the full year  2024, with  the  cost  of  food and housing expenses as  main drivers. The central bank has updated its inflation outlook for the next two years, for ecasting that it will  stabilise close to the 2 per cent target in 2026.  The  central  bank  cited  public  sector  spending  and  the  “risk  of  the  state  budget  having  an  inflationary  effect” in its Autumn report . The state budget deficit  is  certainly  something  that  the  government  grappled  with  throughout  2024.  It  seemed  as  if  the  budget  consolidation package introduced by the government  earlier in the year might, despite its unpopularity with  certain sections of society, make some correcti ons to  the  national  books.  At  the  end  of  October  2024,  the  budget deficit stood at CZK 201 billion, an improvement  of CZK 38 billion year-on-year, according to the finance  ministry. Bu t the severe flooding that hi t the country  in  September  blew  away  most  of  the  progress  that  had  been  made.  The  government  was  obliged  to  set  aside  CZK  3 0  billion  to  cover  the  impact  of  the  natural disaster. This increased the 2024 state budget  deficit  to  final CZK 271  b i llion, which  is  however  still  CZK 17 billion lower than th e deficit for 2023. M oreover,  the flood devastation meant that the government had  to revise upwards  the 2025 state budget deficit target  by CZK 10 billion to CZK 241 billio n. The challenges facing public finance are not dissimilar  to those facing economic growth. The Czech economy  was  sluggish  throughout  2024,  with  scant  positive  movement. The CNB reports that the economy in fact  “started to grow again” in 2024, which is confirmed by  the  preliminary  statistics,  according  to  which  Czech  GDP  grew  by  1  per  cent.  The  central  bank  identifies  household consumption as the main growth driver and notes that “investment activity has been subdued”. The  central bank has a more positive outlook going forward  and rec kons that GDP growth wi ll reach 2 per cent i n  2025 and 2.4 per cent in 2026, supported by a pick-up  in  fixed  investment s.  But  it  cautions  that  external  demand will recover “very slowly” and that even this  is  “not  risk-free”  should  there  be  an  “escalation  of  the  probl e ms  in  German  industry”  or  if  “continued  stagnation  of  the  German  economy ”  spills  over  to  other countries, including ours.  The  average  CZK/EUR  exchange  rate  in  2024  was  CZK 25.1 to the euro. According to the CNB’s for ecast  from February 2025, the rate will average somewhere  in the region of CZK 25.3 to the euro over the next two  years.  This, says  the  CNB, reflects a  slow recovery in  external  demand,  subdued  productivi ty  growth  at  home, and the narrowing of interest rate differentials  with the euro area. 13 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 Unemployment  in  the  Czech  Republic  is  among  the  lowest in the European Union, with an unemp loyment  rate of 2.7 per cent as at the end of Dece mber. The CNB  observes a slow easing of labour market tightness, and  notes  that  wage growth slowed  during  the  course of  the year. In  October  2024,  the  central  bank  announced  the  doubling  of  the  mandatory  minimum  reserve  requirement from 2 per  cent to 4 per c e nt with e ffect  from 2 January 2025. This lowers the cost to the CNB  of implementing its monetary po licy. We estimate that  the decision will impact MONETA’s net interest income by CZK 250–300 million a year, therefore obligin g us to  generate such income from other areas of our business,  preferably with no negative impact on our clients. CORPORATE GOVERNANCE During  the  course  of  the  year  our  management  and  corp orate  governance  structures  were  strengthened.  I  was  delighted  that  Mr.  Andrew  John  Gerber,  who  has been with  us for  more than eight  years  and who  has  materially  contributed  to  the  digitalisation,  cost  efficiency,  product  and  communication  development  of our retail franchise, joined our Management Board  in  September  2024.  In  his  newly  established  Board  position,  Andrew  oversees  the  management  of  our  branch  ne twork,  management  of  our  r etail  product  suite, and customer value steering.  I  am  also  very  pleased  that  the  Supervisory  Boar d  extended  the  term  of  the  Vice-Chairman  of  the  Management  Board,  Mr.  C arl  Normann  Vökt,  for  a  further four  years  with effect  from  28 January 2025.  Mr.  Vökt  has  been  a  member  of  our  Management  Board since 2013 and has served as its Vice-C hairman  since 2019. This extension confirms the quality of his  professionalism in the area of risk management for the  bank.  There  were  also  developments  in  the  composition  of  our  Supervisory  Board.  Ms.  Zuzana  Prokopcová  replaced  Mr.  Michal  Petrman,  whose  term  had  expired.  She  was  co-opted  to  the  Supervisory  Board  in September 2024 and was confirmed by shareholder  vote  at  our  General  Meeting  on  19  November  2024.  Ms.  Prokopcova’s  appointment  was  based  on  her  contribution to the Audit Committee, her contribution  to  the  MONETA  Clementia  Foundation  and  her  out standing  professional  credentials.  In  addition,  Messrs. Clar e Ronald Clarke and Denis Arthur Hall were  re-elected at the General Meeting to the Supervisory  Board following the expiry of their previous terms.  Our  Supervisory  Board  also  added  two  new  employee  representatives  Ms.  Monika  Kalivodová  and  Ms.  Linda  Kavanová,  who  were  co-opted  until  the next employee election. Ms.  Kalivodová is Senior  Manager  of  Collections  and  Ms.  Kavanová  is  Senior  Manager  of  Investor  Relations.  Both  have  enjoyed  long  and  suc cessful  car eers  with  the  bank,  and  have  made  outstanding  contributions  with  respect  to  the  foundation  Nadace  MONETA  Clementia  and  th e  establishment  of  the  employer-organised  internal  kindergarten.  Ms.  Kavanová  is  als o  essential  in  the  shaping of employee dialogue through our MON FAIR  committee.  MREL BOND ISSUANCE In  Septemb e r  2024  we  strengthened  and  optimised  our  position  regarding  the  minimum  requireme nt  for  own  funds  and  eligible  liabilities  (MREL)  by  raising  EUR 300 million through a bon d issue. With a maturity of  six years, the bonds give an option for early repayment  after  five  years,  and  they  pay  a  fixed  interest  rate  of  4.41 per cent per annum. The issue was very positively  received  by  the market, with more than  200 investors  from 32 countr ies expressing interest: the issue was nine  times oversubscribed. This strong investor interes t had a  positive impact on th e final rate of interest, reducing the  spread by approximately 50 basis points.  As a result, MONETA’s over all MREL position increased by  more than 400 basis points and stood at  26.99 per cent  as  at  31  December  2024,  which  was  well  above  the  targeted  21.95  per  cent.  This  strengthened  capital  position provides us with sufficient capacity to further  expand  our  lendi ng  activiti e s ,  and  i ndirectly  supports  our ability to  continue with our current dividend policy.  I  would  like  to  acknowledge  our  banking  partners  on  the issue, J.P. Morgan, G oldman Sachs, BNP Par i bas and  J&T  Banka,  and  our  legal  coun sel,  Allan  &  Overy,  our  long-term advisor on such matters.  I will now run through our financial performance. FINANCIAL PERFORMANCE MONETA  has  outpe rformed  the  minimum  2024  targets that we outlined in both our market guidance,  and in our internal plans. Net profit for the year was  CZK  5.8  billion,  up  11.7  per  cent  year-on-year,  and  represents a Return on Tangible Equit y of 20.4 per cent.  Our  op e rating  income  of  CZK  12.9  billio n,  was  6.3  p e r  cent  up  year-on-year.  MONETA’s  net interest  income  was  CZK  8.9  billion  in  2024,  an  increase  of  4  per  cent  over  2023.  This  was  thanks  to  the  combination  of  lower  interest  expense s  on  deposits,  which in turn reflected our successful deposit re pricing,  and a pick-up in lending that helped to stabilise our net  interest income.  MONETA’s net fee an d commission income was higher  than in 2023 by 16.6 per cent, at CZK 3.1 billion, mainly due  to  the  successful  distribution  of  third-party  14 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 wealth management and in surance products. The fee  and  commission  income  from  third  party  products  reached  CZK  2  billion,  with  income  from  insurance  products  reaching  CZK  1.2  billion  and  the  income  from investment funds increasing by 123.3 per cent to  CZK 739 million.  Operational  expenses  were  stable  and  came  in  at  CZK  5.7  billion  for  the  year,  which  is  in  li ne  with  our  guidance  and  reflects  our  commitment  to  cost  discipline.  Regulatory  charges  decreased  by  29.6  per  cent  against  the  previo us  year  to  CZK  216  million,  which  was  a  clear  benefit.  Our  administrative  expenses  also  fell,  by  5  per  cent  to  CZK 1.6 billion. Although we s aw a year-on-year bump  in personnel expens e s of 6.4 per cent to CZK 2.7 billion,  this  has  to  be  seen  in  the  c ontext  of  remuner ation  adjustments  that  were  made  to  address  inflation,  maintain  morale  and  motivation,  and,  frankly,  to  remain competitive in the labour market.  The  cost  of  risk  reco gni sed  in  2024  amounted  to  CZK 386 million, which translates into 14 basis points  against  our  average  net  loan  portfolio  size,  which  is  in  accord  with  our  guidance.  O ur  loan  portfolio  performed  well,  with  low  delinquencies  and  good  repayment  di scipline. Our  non-performing loan  (NPL)  ratio for the year was at a record low of 1.3 per cent.  In  2024  we  disposed of  NPLs in  the  nominal  amount  of  CZK  1.5  billion,  which  generated  income  of  CZK 131.8 million. MONETA’s operating profit increased by 12 per ce nt to  CZK 7.2 billion . Throughout 2024 we invested in government bonds, the  income from which is unburdened by tax. Our effective  tax  rate  for  2024  was  14.6  per  cent,  whi ch  is  in  line  with our guidance. As at 31 December 2024, we held  government bonds in the amount of CZK 113 billion, of  which more than half generated tax exempt income. MONETA’s  balance  sheet  in  2024  expanded  by  8 per cent to CZK 495 billion. Our balance sheet growth  was driven by our customer deposit base, which gr ew  by  7.7  per  cent  year-on- year  to  CZ K  430  billion  and  our  successful  issu e  of  MREL  bonds.  This  p rovided  resources for an increase in our gross performing loan  port folio, which grew by 4.5 per cent to CZK 276 billion.  This also gives us a very strong liquidity position, which  enables  credit  expansion  should  demand  strengthen.  Our strong  liqui dity position was reflected in our key  ratios such as our loan to deposit ratio (at 64 per cent), our liquidity coverage ratio (357 per cent) and our net  stab le funding ratio (181 per cent).  MONETA served 1.6 million clients as at 31 December  2024, an increase of 1.4 per cent. BUSINESS PERFORMANCE It  has  been  a  good  year  for  MONETA’s  business.  Our  gross  perfor ming  loan  portfolio  increased  by  4.5 pe r cent in 2024 to CZK 276 billion as n ew lending  grew more or  less in line with the  decline i n  interest  rates.  Our  commercial  lending  rose  by  10  pe r  cent  on  2023  to  CZK  92.8  billion,  and  our  retail  lending  increased  by  2 per cent to CZK 183 billion. Particular  highlights  included  new  mortgage  volumes,  which  more than doubled and were up 104.4 per cent, while  new  consumer  lending  rose  by  39.7  pe r  cent.  New  small business volumes were up 59.5 per cent and new investment loans 54.1 per cent.  Our  overall  business  performance  was  above  our  assumptions for the gui d ance. In total we underwrote  CZK 62.5  billion  in new  loans  in  2024, an  increase of  53.4 per cent on the previous year. On the other side  of  th e  ledger,  our  total  deposit  base  increased  by  7.7 per cent to CZK 430 billion, despite the decrease  i n  our interest r ates on savings and term accounts.  Retail segment business performance The  year  2024  saw  a  revival  in  demand  for  loan  products,  especially  mortgages and  consumer credit.  Our  total  gross  pe rforming  retail  loan  balances  thus  grew  by  2  per  c e nt  to  CZK  183  billion.  Total  retail  new volumes rose by 59.4 per cent to CZK 37 billion;  new  mortgage  and  new  consumer  loans  were  up  by  104.4  per  cent  and  39.7  per  cent,  respectively.  Total  mortgage  recei vables  were  up  by  2.1  per  cent  and  stood  at  CZK  130  billion,  while  total  consumer  lending  receivables  were  at  CZK  47.8  billion.  Credit  card  and  overdraft  lending  volumes  were  stable  at  CZK  2.4  billion.  And  our  retail  auto  lending  rose  by  9 per cent to CZK 2.7 billion. Over  the  course  of  the  year  MONETA  decreased  savings  d e posit  rates  seven  times  by  a  cumulative  230  basis  points  against the  CNB’s  key rate  decrease  of a cumulative 300 basis points since December 2023.  Despite this reduction we managed to keep our savin g  account interest  rate at a competitive 3 per cent per  annum.  Our  managed  approach  to  repricing  clearly  worked, as our retail deposits increased by 3.5 per cent  to C ZK 324 billion as at 31 December 2024. Our retail depositors  have  been an important  source  of third-party fund distribution, which is testament  to  our business strategy of diversifying income across our  port folio of products.  We saw record sales of third-party wealth management  products in 2024, as many savers moved some of their  reserves  out  of  cash  and  into  investments  that  can  generate better returns . MONETA distributed net new  volumes  of  CZK  23.5  billion,  up  by  88.2  per  cent  on  15 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 2023. Our r egular introduction of new funds gives us a  compellin g and attractive pro position, which certainly  contribute d to the success. The  total  balance  of  investment funds  distributed by  us was CZK 59.4 billion and grew by 54.2 per cent. This  significantly contributes to our fee income, and to o ur  profitability.  Commercial segment business performance MONETA’s commercial gross performing loan balances  grew by 10 per cent in 2024 to CZK 92.8 billion thanks  to the revival in demand related to lower interest rates.  New volumes were up by 45.5 per cent year-on-year to  a total of CZK 25.5 billion.  Growth  was  supp orted  by  lending  to  our  small  business  clients,  where  new  volumes  grew  by  59.5  per  cent.  Our  overall  small  business  loan  book  reached CZK  16.3 bi llion, an increase o f 17.6 per ce nt  year-on -year. We also saw a strong revival of investment  lending,  where  new  volumes  rose  by  54.1  per  cent,  and  the  investment  loan  book  therefore  reached  CZK  50.1  billion  at  the  year’s  end,  an  increase  of  10.8 per cent. The commercial working capital portfolio grew by 7.7 per cent, to reach CZK 16.6 billion. And our  commerc ial  auto loan b ook grew by 11.6 per ce nt  to  CZK 8.6 billion.   Our  commercial  deposit  base  reache d  a  record  CZK  106  bi llion  by  the  end  of  year,  an  increase  of  22.9  per  cent  on  2023.  As  in  retail,  our  commercial  funding  has  been  subject  to  repricing,  but  we  were  nevertheless able to achieve sustained growth, as the  results testif y.  DIGITAL STRATEGY PROGRESS REVIEW MONETA continues to be a digital leader in the Czec h  banking  sector, as  confirmed  by  independent market  research  conducted  by  MarketVision  and  published  earlier in the year. We currently offer 41 products via  our  digital  channels,  and  in  the  first half  of  2024  we  widened  our  service  range  with  the  introduction  of  Click  to  Pay,  an  online  payment  platform  developed  by VISA. During the year we moved to re-enforce and  strengthen our cus tomer on-boarding and pr ocessing  in  order  to  protect  our  custo mers  from  cybercrime,  which  is  a  significant  problem,  and  an  issue  that  I address in a little more detail elsewhere in my letter. Our  award-winning  mobile  application,  Smart  Banka,  continues  to  attract  new  users  and  is  now  our  most  important  client  interaction  platform.  Our  digital  platforms  had  a  combined  1.5  millio n  registered  users , up 7.3 per cent year-on-year and an average of  684,000  client  visits  per  day,  in  2024.  Our  focus  has  been, and will remain, to relentlessly strive to improve the  functionality  and  security  aspects  of  our  digital  offering, thus delivering a quality customer experience  and more overall security. In July 2024, we gave the MONETA website a new l ook  with  a  redesign  built  on  a  ‘mobile  first’  approach,  meaning that the website works seamlessly on mobi le  devices.  Indeed,  the  r edesign  of  the  website  was  intentionally  unified  with  our  Smart  Bank  mo bile  application.  The  aes th etics  and  functionality  of  the  new  site  have  translated  into  commercial  suc cess,  with  our  offers  securing  materially  higher  attention,  which dir ectly translates into a higher number of new  business leads.  We  delivered  solid  growth  in  the  online  dis tribution  across all of our key products. Online consumer lending  origination increased and accounted for 57 per cent of  all consumer new volumes. Our fully online mortgage  offering  accounted  for  33  per  cent  of  all  newly  signed  mortgage  volumes  in  2024.  Online  mortgage  distribution carr ies less cost than traditional mortgage  transacting,  and we were able  to pass  this on  to  our  custome rs with more competitive mortgage offerings,  including refinancing. We also grew the online share of  small business le nding, with 46 per cent of new small  business  l oans  origi nating  via  our  digital  c hann e ls  in  2024.  Looking ahead, we are aiming to compl ete the transition  of our digital and online  o fferings to a cloud platform,  with all banking applications transferred by 2025, apart  from our core system. We are confident that this will  enable  u s  to  accelerate  innovations,  includi ng  the  prudent use of AI. As the coming year progresses, we  will update o ur customers and the market with these  exciting new d evelopments. RISK MANAGEMENT In  2024,  o ur  co st  of  risk  came in  at  CZK  386 million,  or  14  basis  points  against  our  average  net  loan  port folio. This falls within our previously guided range  of  10–30  basis  points.  Broadly  speaking,  our  loan  port folio  continued  to  perform  very  well,  with  good  repayment discipline and r e l atively few delinquencies.  Our NPL ratio was at a record l ow of  1.3 per cent. And  during the course of the year we reduced the level of  management overlays  that were originally created to  cover uncertainties stemming from 2023.  In the first half of 2024, the CNB introduced mandatory registration rules for buyers of non-performing l oans.  This  required some adjustments and patience on  the  part of both  buyers  and sellers, but  we  met o ur  NPL  disposal  t arget for  the  year,  successfully  selling  NPLs  with  a  nominal  value  of  slightly  over  CZK  1.5  billion .  These  sales  generated  an  addi tional  income  of  CZK 131.8 million.  16 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 CYBER CRIME Throughout  2024,  we  invested  in  our  online  s ecurity  systems  to  protect  our  customers  from  increasing  levels of cyber-attack, which is a challenge for the entire  banking  sector  and  not  just  MONETA. Unfortunately,  our own c lients suffered los ses of CZK 125 million due  to cyber- crime, an in crease of 45.5 per cent on 2023.  Cybe r  criminals  are  using  increasingly  complex  tricks  and techniques to steal, whi ch makes the fi ght against  them  ever  more  challenging.  Accordingly,  MONETA  intensified  its  efforts  to  combat  such  cr i me,  and  to  protect our clients f rom criminal losses.  We  have  invested  in  AI  tools  that  s tudy  client  transaction  patterns,  and  thus  improve  our  ability  to  monitor,  detect  and  blo ck  suspiciou s  behaviour.  And  we  have  improved  the  efficiency  of  our  exis ting  technology  and  tools.  We  are,  therefore,  confident  that  our  ability  to  prevent  cyber  fraud  and  related  client los ses has significantly increased.  Specifically,  MO NETA  has  strengthened  its  secur ity  protocols  regarding  customer  registration  of  new  devices.  And we have launched a new communication  campaign to increase client awareness of the different  types of possible attack. We believe that 2025 w ill be  safer for our clients, and for the bank itself. STRENGHTENED CAPITAL POSITION AND DIVIDEND CAPACITY During  2024 we maintained  a  strong capital po sition,  which allowed us to propose an extraordinary dividen d  in the amount of CZK 3 per share, or C ZK 1.5 billion. It was  duly accepted by our  shareholders and distributed in  December 2024 from the retained earnings o f previous  years.  In  total,  MONETA  made  dividend  paym e nts  of  CZK 12 per share in 2024. In  September  2024,  MONETA  further  strengthe ned  its MREL capital position when we, as I have already mentioned,  successfully  raised  EUR  300  million  in  MREL bonds. As at 31 December 2024, the MREL ratio  stood  at  26.99  pe r  cent  and  comfortably  exceeded  our target of 21.95 per cent.  The  following  month,  in  October  2024,  we  received  a  positive  assessment  from  the  CNB’s  Supervisory  Review and Evaluation Process (SREP), with the central  bank requiring MONETA to maintain a total SREP capital  requirement of 10 per cent, effective 1 January 2025, which is 30 basi s points lower than in 2024.  MONETA’s  management  capital  target  was  15.05  per  cent  as  at  31  Decemb e r  2024  and  will  increase  to  15.25  per  cent  f rom  1  January  2025  as  descr ibed below. MONETA’s  total  capit al  requirement  consists  of  the  regulatory  capital  requirement  under  Pillar  I  of  8  per  cent,  and  SREP  under  Pilar  II  of  2.3  per  cent,  which will decrease to 2 per cent from 1 January 2025.  In  addition,  we  are  required  to  hold  capital  to  cover  the combin ed capital buffer,  which was 3.75 per  cent  at  th e  end  of  December  2024.  This  co n sisted  of  a  capital  conservation  buffer  of  2.5  p e r  c ent  and  a  countercyclical capital buffer of 1. 25 per cent. Although  the CNB reduced the countercyclical  buffer  from 1.75  to  1.25  per  ce nt  from  1  July  2024,  at  the  same  time  it  introduced  a  systemic  risk  buffer  of  0.5  per  cent  effecti ve  from  1  January  2025.  The  combined  capital  buffer  requirement  will  therefore  revert  to  4.25 per cent from  1 January 2025. In addition to the  regulatory require ments, MONETA maintains a capital  buffer of 1 per cent of risk weighted assets.  Over  and  above  our  regulatory  capital  requirem e nts  and  obligations,  we  enjoy  a  str ong  capital  position.  Our  regulatory  cap ital  was  CZK  31.6  billion  as  at  31 December 2024. Our c apital adequacy ratio was at  18.25  per  cent,  with the  MREL  position  improving  to  26.99 per cent. We comfortably met and exceeded all  regulatory capital requirements in 2024. As  a  result, MONETA’s overall  e xc e ss capital stood at  CZK 5.5 billion, or CZK 10.8 per share over the capital  management target of 15.05 per cent.  Our  rob ust  capital  position  underp i n s  our  potential  to expand our l e nding activities and to continue with  our  healthy  dividend  policy.  At  the  en d  of  the  year,  we had acc rued 88 per cent o f our 2024 consolidated  net profit, or CZK 5.1 billio n to o ur dividend account .  The Management Board will propos e to shareholders  the distribution of  dividend  in the  amount  of CZK 10  per  share  to  be  approved  at  the  April  2025  General  Meeting. In  summary,  our  capital  position  is  favourable  and  for  the  upcoming  year  we  expect  it  to  remain  so.  This is due to our lower Pillar II re qui rement and CRR  III  i mplementation,  assuming  our  ability  to  maintain  recurrent  profitability,  projected  l oan  growth,  and  stability in regulatory requirements.  SHARED ATM NETWORK I  am  pleased  to  report  that  the  national  network  of  ATMs that we established in 2022 in partner ship with  Komerčni banka, Air Bank and UniCredit Bank continued to develop in 2024. In August, MONETA and two of its  partner  banks  introduced  a  deposit  taking  f unction,  with  the fourth partner, UniCredit Bank, committed to  developing the necessary technical c apabilities in early  2025. The alliance now operates 1,966 ATMs acro ss the  Czech Republic, of which 795 offer the deposit sharing  function.  17 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 Under  the  commercial  terms  agre ed  between  the  partner  banks  in  the  shared  ATM  network,  fees  are  based on the number of ATMs each bank contributes  to the  alliance, and which ref lect the capital value of  each partner bank. In this way, each bank avoids per  transaction  fees,  and  ope rates  on  the  basis  of  fixed  annual contribu tions, adding to the pre dictabili ty and  sustainability of our ATM -related costs.  Our  shared  ATM  network  boosts  client  convenience,  giving  MONETA  cu stomers  a ccess  to  almost  800  locations  where  they  can  make  cash  deposits.  This  service i s particularly app reciated by small businesses,  entrepreneur s  and shops  that handle  cash outside of  regular branch opening hours, and especially over the  weekends.   AWARDS The talent, professionalism and innovation of MONETA  and  its  employees  were  on  full  display  this  year  as  the  bank  successfully  competed  against  much  larger  competitors  to  secure  industry  awards  in  a  broad  range of categories. My thanks go out to all our staff  for these achievement s:  MONETA’s successes are their  successes. At the prestigious Zlatá koruna (Golden Crown) annual  banking  awards,  MONETA  received  a  total  of  nine  medals  in  the  22 nd   edition  o f  the  competition.  Once  again,  our  mobile  banking  app lication,  Smart  Banka,  won  the  People’s  Choi ce  Award,  for  the  fourth  year  in a row. This is a remarkable feat that underlines our  strong leadership position in digital banking. MONETA  won  a  further  three  Golden  Crowns  that  reflect  the  bank’s  commitment  to  supporting  entrepreneurship,  small business and women in business: the re was first  place in the Entrepreneurs' Award for a savings account  for  sole-tra ders  and  companies;  first  place  in  the  Business Lo an category for a loan tailored for female  entrepreneur s; and first place in the Business Accounts  category with the “Konto PRO podnikání” product. MONETA’s  services  for  small  and  medium-sized  businesses  were  also  recognized  in  the  CEE  SME  Banking  Awards,  taking  the  silver  position  among  26 banks from  eight  countries  in  the  mobile  banking  category, and fourth spot in the category focused on online banking, the highest placing of all Czech banks.  Since  July  2024,  MONETA’s  website  has  had  a  new  look.  It  has  been  visually  unified  with  the  Smart  Banka mobile app in a redesign that earned first place at  the  Internet  Effectiveness  Awards  competition  in  the  Digital  Trans formation  and  Banks,  Insurance  and  Finance  categories.  This  was  complemented  by  secon d  place in the WebTop  100 competition in the  SEO category of 2024. MONETA’s  strong  customer-focused  approach  was  confirmed  by  its  recognition  as  the  most  custome r-friendly  bank  on  the  market  in  this  year’s  Vis a Best Bank competition, organized by leading Czech  business  media  Hospodářské  noviny.  This  excellent  result  helped  MONETA  defend  its  silver  ranking  in  the  main  category  o f  Best Bank,  meaning  it  has  now  been ranked among the top three banks in the Czech  Republic for a third straight year. Our  banking  products  were  also  well  represented  in  the  13 th   year  of  the  p rofessional  competition  Finparáda – Financial Product of the Year 2023, winning  a  total  of  four  gold  medals,  including  first  place  for  the  Tom  Plus  current account,  flexible  m ortgage and  loan  repayment  ability  insurance (BNP  Pari bas C ardif  Pojišťovna). And  finally,  thanks  to  our  range  of  advantageous  mortgages and the option to negotiate and refinance  fully online, MONETA was able to turn last year's silver  place  into  gold in  the Mortgage of  the  Year category  in the Mastercard Bank of the Year 2024 competition. ESG During 2024 MONETA accomplish ed some notable ESG  achieve ments.  We  continued  to  successfully  reduce  our  carbon  footprint and remained ahead of schedule with regard  to the targets set in our ESG strategy, published  at the  end of October 2021, which is the cornerstone for all  such  i nitiatives and  projects  that we  have  conducted  since then. We believe we set our targets aggressively,  and  within  a  reasonab le  timeframe.  So  far,  we  have  been able to not only fulfil the majority of them, but  also exceed them. Based on the assessment of 2024 data completed in Jan uary  2025,  MONETA  has  decreased  direc t  carbon  emissions (Scope  1 and 2) by 88.8 per cent since 2016  and  will,  therefore,  meet  its  original  target  ah ead  of  time; the original target was for a 90 per cent reduction  by 2026. Measures taken in furtherance of this include  replacin g combustion-engine cars with electric vehicles  in our company fleet, staying diligent in our purchase of green energy, and remaining rigorous  in  saving o n  our central and branch heating. Our success in reducing our emissions was recognised  by our inclusion in the 2024 Financial Ti mes’ Europe’s  Climate  Leaders  table,  which  lists  600  European  companies that  have achieved the greatest reductions  in  their  greenhouse  gas  emissions  in  order  to  lower  their  carbon  footprint.  MONETA  is  the  only  Czech  company listed in the FT’s table. 18 LETTER FROM THE CHAIRMAN OF THE MANAGEMENT BOARD Annual Financial Report 2024 Another target we achieved ahead of schedule is the proportion  of  electric  car s  in  MONETA's  corporate  fleet.  At  the  end  of  the  year,  this  proportion  was  84%,  which  exceeds  the  target  set  by  the  ESG  strategy for 2026. Further validation of our ESG approach was evidenced  by  the  strong  assessment  of  several  independent  organisations.  Specifically,  we  are  rated  by  MSCI  at  ‘AA’.  Additionally,  we  are  evaluated  by  Sustainalytics  at  ‘Low  Risk’  and  by  I SS  at  ‘C-’.  And  CDP  confirmed  MONETA’s ‘B’ rating. And as mentioned earlier i n my letter, the found ation  Nadace MONETA Clementia distributed CZK 35 million  in financial aid and support to organisations, charities and individuals. Everyone at MONETA is very proud of  the  work  done  by  our  Clementia  Foundation  and  its  independent Board of Trustees. The Foundation makes  a real and meaningful differenc e to those it helps, and  we look forward to ensuring that it has the resources  to continue doing so. ACCOLADE TO COLLEAGUES On  be half  of  the  Management  Board  of  MONETA  Money B ank, I would like to extend sincere thanks to  everyone  at  the  bank  for  their  contr i bution  to  w hat  was a succe ssful 2024. Our work has been recognised  by our professional peers in the form of a wide range  of  prestigious  industry  awards,  and  our  ESG  strategy  has be en judged po sitively by independent third-party  agencies.  Our  financial  results  outperformed  everyone’s  expectations,  and  are  a  testament  to  the  skills and dedication of our staff. MONETA is in a strong position as we enter 2025, and we must all ensure that we maintain our discipline and  dedic ation throughout the coming year. OUTLOOK FOR 2025 MONETA  is  in  good  condition  to  meet  its  financial,  business  an d  ESG  related  aspirations.  S pecifically,  we  aspire to deliver a minimum net profit  o f CZK 6 billion  in  2025,  and  in  such  context,  we  aim  to  repeat  and  improve  the  commercial  metrics  of  2024  while  preserving  the  prudent  profile  of  our  balance  sheet.  Details  of  our  minimum  targets  and  aspirations  are  available in the market guidance section of this Annual  Financial Report. With respect to ESG, o ur key targets  remain  as  these  were  set  out  in  o ur  ESG  strategy  published in 2021 and subsequently amende d . During  2025, we will  work  towards  further  improvements  in  the  disclosure  of  key  ESG  related  m etrics  and  facts,  and  to  make  further  progress  with  respect  to  our  quantitative targets.  Overall,  we  are  well  poised  to  continue  cr eating  and  delivering shareholder value. Sincerely, Tomáš Spurný Chairman of the Management Boar d and CEO MONETA Money Bank, a.s. 21 HIGHLIGHTS Annual Financial Report 2024 GUIDANCE MONETA Money Bank (“Bank”) published its me dium-term guidance for 2024–2028, which targeted  the delivery  of a cumulative  net  profit  of at least CZK 27.7 billion. That  was  32% higher  than  the  cumula tive net profit delivered in th e previous five years. 1 AWARDS MONETA  won  four  gold  medal s  in  the  traditional professional competition Finparáda –  Financial  Product  of  the Year in  2023,  for  its  current  account  for  retail  and  small  business  clients,  flexible  mortgage and payment protection insurance (with BNP Paribas Cardif Pojistovna). 2 PRODUCTS MONETA began offering clients a long-term investment product in the form of a new state-supported  form of saving for ret irement that combines tax benefits and employer contributions wi th the clien t’s  choice of investment strategy. 3 KEY EVENTS IN 2024 DIGITAL MONETA  furthered  the  range of  its  digital  payment  services  for  clients with  the introduction,  in  coop eration with VISA, of the Click to Pay service for online payments. This service simpl ifies online  payments by el iminating the need to enter card det ails as they are stored in a secure, encrypted  form. 3 PRODUCTS MONETA signed a EUR 100 million loan, equivalent to CZK 2.5 billion, with the European Investment  Bank. The funds will be used to finance special loan products for entrepreneurs and small businesses  with  up  to  3,000  employees.  In  addition,  up  to  CZK 700 million  w ill be  used for environmentally  sustainable projects related to renewable energy, soil erosion, public transportation, and improved  energy efficiency for buildings. 3 GENERAL MEETING/DIVIDEND The Annual General Meeting of the Bank was held on 23 April 2024 and approved the distribution of  a dividend in the amount of CZK 9 per share from the 2023 net profit. In addition, the shareholders  appr oved the 2023 consolidated and separate financial statements of the Bank as well as the 2023  Remuneration Report. The General Meeti ng was attended by 74. 59% of shareholders. 1 AWARDS MONETA won a total of nine medals in the 22 nd  edition of the prestigi ous "Golden  Crown" financial  sector awards. For the fourth year in a row, the Bank took first place  in the People’s Choice Awa rd  with its Smart Banka mobile banking application. It also won three gold crowns for products for small  business clients. 4 2024 HIGHLIGHTS DIGITAL MONETA  unveiled  a completely  redesigned  website  on 1  July. The new  design  better  serves  the  needs of  retail and small  business  customers. Inspired by the Smart  Ban ka mo bile applicat ion, it  prioritises op timisation for smartphones and tablets, addressing the growing number of users who  acc ess the site from their m obile devices. The new website won an award for Digital Transformation  in the professional competition Internet Effectiveness Awards. 3, 5 FEBRUARY MARCH APRIL MAY JUNE JULY 22 HIGHLIGHTS Annual Financial Report 2024 MARKET VALUE MONETA was deemed to be the 8 th  most va luable Czech company in the 2 nd  editio n of the “100 Czech   Elite” ranking compiled by th e economic portal Seznam Byznys and consulting company D eloitte,  moving up two places compared to the previous year. The ranking incl uded companies controlled  by  Czech  owners  that  are  both  domiciled  and  taxable  in  the  Czech  Republic.  As  at  the  date  of  publication of the ranking, the market capitali sation of MONETA was CZK 57 billion, which increased  to CZK 63.3 billion as at 31 December 2024. In the same ranking, MONETA also received the highest  score in the ESG Excellence category, primarily for its approach to susta inability. 7 AWARDS •  MONETA was named the “Most client frien dly Bank” in the 2024 Best Bank competition organised  by VISA and Hospodářské noviny, and w as run ner-up in the main cat egory, the Bank of the Year.  MONETA was successful thanks to its attractive interest rates on both loan and deposit products  as well as its widely accessible bra nch and ATM networks. 8 •   In the 23 rd  editio n of the Mastercard Bank of the Year competition, MONETA won the award for  the best mortgage on the market. In the m ain category, Bank of th e Year, MONETA took third  place. 9 GENERAL MEETING / EXTRAORDINARY DIVIDEND A  General  Meeting  was  held  on  19  Novem ber  2024  at  which  shareholders  approved  the  distribution of an extraordinary dividend of CZK 3 per share, for a total amount of CZK 1.5 billion. Shareholders  also  approved  new  members  of  the  Bank’s  Supervisory  Board  and  the  Audit  Committee. 1 SUPERVISORY BOARD / AUDIT COMMITTEE The G eneral Meeting elected Mrs. Zuzana Prokopc ová as a new member of th e Supervisory Board  of  the  Bank  and  confirmed Mr.  Clare  Ronald  Clarke  and Mr.  Den is Arth ur Hall in  their positions.  Mrs. Kateřina Jirásková was  e lected as  a  new member of the Audit  Comm ittee  of  the Bank  and  Mr. Denis Arthur Hall was re-elected as a member of the Audit Committee of the B ank. 1 MREL BOND ISSUANCE MONETA issued senior preferred bonds in the total nominal amoun t of EUR 300 million (equivalent  to CZK 7.5 billion as at 4 September 2024) at a fixed interest r ate of 4. 41% p.a. for the first five  years. The issue was c arried out to strengthen the Ba nk’s capital structure and was well received  by the financial markets. 1 MANAGEMENT BOARD On  the  recommendation  of  the  Nomination  Committee  of  the  Supervisory  Board,  Mr. And rew  John  Gerber was elected as the new sixth me mber of the Ban k’s Management Board. Mr. Gerber also holds  the position of Chief Retail Banking Officer. 1 CREDIT RATING The  rating  agency  Moody’s  Deutschland  GmbH  confirmed  MONETA’s  credit  rating  at  A2  with  a stable outlook. The rating has remained unchanged since December 2019. SREP CAPITAL REQUIREMENT The CNB decreased the Pillar II capital requirement for MONETA by 30bps to 2% effective from  1  January  202 5.  The  overall  management  capital  target  will  the refore  decrease  to  15.25%,  cons isting of an 8% Pillar I requirement, 2% Pillar II requirement, 2.5% capital co nservation buffer,  1.25%  countercyclical  buffer,  0.5%  new ly introduced systemic  risk buffer  and  1%  management  buffer. 1 SHARED ATM NETWORK MONETA,  Komerční  bank a  and  Air  Bank  introduced  a  deposit  function  at  almost  800  shared  ATMs. This was the la t est step in the 2023 joint initiative of a shared ATM network, in which the  above-mentioned banks and UniCredit Ban k enable their customers to withdraw cash from nearly  2,000 shared AT Ms. 3 ESG RATING MSCI confirmed MO NETA’s ESG rating at the secon d highest level AA. 6 AUGUST SEPTEMBER OCTOBER NOVEMBER 23 HIGHLIGHTS Annual Financial Report 2024 2025 1  Source: https://investors.mone ta.cz/news. 2  Source: https://www.finparada.cz/Zebricky-Produkt-Roku.aspx (Czech on ly). 3  Source: https://www.moneta.cz/servis-pro-media/tiskove-zpravy (Czech only). 4  Source: https://www.zlatakoruna.info/soutez/2024 (Czech only). 5  Source: https://www.iea.cz/rocnik-iea-2024/. 6   Source: https://www.msci.com. Disclaimer Statement: The use by MONETA Money Bank, a.s. of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the  use of M SCI lo gos, trademarks, service marks or index names here in, do not constitute a sponsorship, endorsement, re commendation or promotion of MONETA  Money Bank, a.s. by MSCI. MSCI services and data are the property of MSCI or its information providers and are provide d ’as-is’ and without warranty. MSCI  names and logos are trademarks or service marks of M SCI. 7  Source: https://www.seznamzpravy.cz/tag/ceska-elita-95008 (Czech only). 8  Source: https://nejbanka.hn.cz/vysledky/. (Czech only). 9  Source: https://ban karoku.cz/banka-roku/. (Czech only.) 10  Source: Prague Stock Exchange (www.pse.cz). Total Shareholder Return according to Bloomberg methodology, inc luding reinvested dividend. ESG •  The share  of  electric cars  in  MONETA’s  fleet  had  increased  to  84%  by the  end of  2024.  This  achievement allowed MONETA to meet its sustainability target approximately two years ahead  of sc hedule. •  MONETA reduced its direct (Scope 1 and Scope 2) carbon dioxide emissions by 88.8% since 2016,  according to the carbon footprint calculati on for the year 2024. As a result, MONETA has almost  achieved its goal of reducing direct carbon dioxide emissions by 90% by 2026 compared to 2016,  two years ahead of schedule. TOTAL SHAREHOLDER RETURN The  share  p rice  of  the Bank reached CZK 123.8  at  the  end of  2024, which represents a 32.3%  increase year-on-year. Together with a total dividend paid in 2024 of CZK 12 per share, it represents a Total Shareholder Return for 2024 of 48%. 10 DECEMBER 27 HIGHLIGHTS Annual Financial Report 2024 2024 FINANCIAL RESULTS AND GUIDANCE 1 Metrics 2024 Results 2024 Guidance 2 Difference in % Difference Total operating income (CZK bn) 12.9 12.4 4.1% +0.5 Total operating expense (CZK bn) (5.7)   (5.8) (1.3)% +0.1 Operating profit (CZK bn) 7.2   6.6 8.9% +0.6 Co st of risk (CoR, bps) (14) (10–30) - - Net profit (CZK bn) 5.8 5.2 11.7% +0.6 Earnings per share (CZK) 11.4 10.2 11.7% +1.2 Return on Tangible Equity (RoTE) 20.4% 17.0% 19.8% +3.4 pp 1  Based on consolidated results. 2  Market guidance published on 2 February 2024 as part of FY 2023 Financial Results presentation. In 2024 MONETA successfully delivered all key financial  commitments to its shareho lders, as ex pressed in the  market guidance published on 2 February 2024 2 . MONETA  generated  a  net  profit  of  CZK  5.8  billion,  exceeding  its  2024  guidance  of  CZK  5.2  billion  by  CZK  0.6  billion.  The  main  drivers  of  th e  stronger  performance  were  higher  operating  income,  lower  operating  expenses  and  a  cost  o f  risk  b e low  the  mid-point of the guided ran ge.  Supported  by  the  suc cessful  exp an sion  of  the  distribution of commission-based third-party products,  MONETA exceeded its targeted total operating income  of  CZK  12.4  billio n  by  CZK  0.5  billion.  Net  interest  income was negatively impacted by the faster declin e  of market interest rates, namely in the first half of 2024, which was, however, offset by the repricing of savings  and  term  deposi t  balances,  and successful  expansion  of the lending portfolio.  In  2024  MONETA  also  continued  the  efficient  management of operating expenses desp ite persistent  inflationary  pre ssures.  Total  operating  expenses  amounted to CZK 5.7 billi on, CZK 0.1 billion less  than  market  guidance.  This  was  achieved  mainly  by  lower  administrative  and  other  operating  expenses  and  reduced  regulatory  charges,  primarily  due  to  lower  contribution  to  the  Resolution  Fund.  However,  the  prevailing inflationary pressure on salaries resulted in  higher-than-expected  per sonnel exp e n ses. MONETA’s  cost to income ratio for 2024 reached a solid 44.3%. The  cost  of  risk  was  reported  at  CZK  386  million,  o r  14bps  of  the  average  net  loan  portfolio,  below  the  mid-point  of  the  guided  range  o f  10–30bps.  This  result was positively impacted by solid core portfolio  performance and successful NPL disposals, which mad e  a positive impact on the cost of risk in the amount o f  CZK 127 million.  Return  on  Tangible  Equity  for  the  year 2024 reached  20.4%,  surpassing  the  minimum  market  gui d ance  o f  17%. 28 HIGHLIGHTS Annual Financial Report 2024 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in CZK m) 31 Dec 2024 31 Dec 2023 Change Cash and cash balances at the central bank 13,541 10,871 24.6%  Investment securities 116,664 104,353 11.8%  Lo ans and receivables to banks 79,206 69,632 13 .7%  Lo ans and receivables to customers 275,383 263,064 4.7%  Remaining assets 10,188 10,264 (0.7)% Total Assets 494,982 458,184 8.0% Due to banks 3,834 5,423 (29.3)% Due to customers 43 0,021 39 9,497 7.6%  Issued bonds 11,562 3,808 203.6%  Subordinated liabilities 7,622 7,60 4 0.2%  Remaining liabilities 10,064 9,649 4.3%  Total Liabilities 463,103 425,981 8.7% Total Equity 31,879 32,203 (1.0)% Total Liabilities and Equity 494,982 458,184 8.0% CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (in CZK m) 2024 2023 Change Inte rest and similar income 22,207 22,046 0.7%  Inte rest expense and similar char ges (13,288) (13,469) (1.3)% Net interest income 8,919 8,577 4.0% Net fee and commission income 3,060 2,624 16.6% Other income 932 946 (1.5)% Total operating income 12,911 12,147 6.3% Total operating expenses (5,722) (5,730) (0.1)% Operating profit 7,189 6,417 12.0% Net impairment of financial assets (386) (305) 26.6% Profit for the period before tax 6,803 6,112 11.3% Profit for the period after tax 5,808 5,200 11.7% 29 HIGHLIGHTS Annual Financial Report 2024 KEY PERFORMANCE INDICATORS 3 Business performance (in CZK bn) 31 Dec 2024 31 Dec 2023 Change Gross performing loan balance 275.9 263.9 4.5% Retail gross perform ing loan balanc e 183.1 17 9.5 2.0% Commerc ial gross performing loan balance 92.8 84.4 10.0% Customer deposits 429.8 399.2 7.7%  Retail customer d eposits 324.0 313.2 3.5%  Commercial customer d eposits 105.8 86.1 22.9% Figures in the table may not add up to the total due to rounding differences. 3  Based on consolidated results. Profitability and Efficiency 2024 2023 Change Average loan portfolio yie ld  4.9% 4.7% 0.2pp Co st of funds (CoF) on customer deposits  2.93% 3.30% (0.37)pp Net interest margin 1.9% 2.1% (0.2)pp Co st of risk (CoR)  0.14% 0.11% 0.03pp Risk- adjusted yield  4.8% 4.6% 0.2pp Net fee & commission income/total oper ating income 23.7% 21.6 % 2.1pp Net non-intere st income/total ope rating income 30.9% 29.4% 1.5pp Co st to income ratio 44.3% 47.2% (2.9)pp Return on Tangible Equity (RoTE) 20.4% 18.0% 2.4pp Return on Equity (RoE) 18.2% 16.1% 2.1pp Return on Average Assets (RoAA) 1.2% 1.2% 0.0pp Capital and Liquidity 31 Dec 2024 31 Dec 2023 Change Total capital adequacy ratio 18.2% 20.1% (1.9)pp Tier 1 capital adequacy ratio 14.5% 1 5.7% (1.2)pp Lo an to deposit ratio 64.1% 65.9% (1.8)pp Total equity/total assets 6.4% 7.0% (0.6)pp High- quality liquid ass ets / Customer deposits 43.5% 40.0% 3.5pp Liquidity coverage ratio 357.2% 354.4%   2.8pp Net stable funding ratio 180.9% 164.1% 16.8pp 30 HIGHLIGHTS Annual Financial Report 2024 2025–2029 MEDIUM-TERM GUIDANCE 4 4  Latest market guidance published on 31 January 2 025 as part of FY 2024 re sults presentation. 5  Based on the assumption that current tax legislatio n remains unchanged. Based  on  recent  developm e nts,  M ONETA’s  2024  results  and  the  latest  macr oeconomic  outlook,  the  Management  Board  has  provided  the  following  market guidance for  th e  next five-year  pe riod from  2025  to  2029.  Overall,  MONETA  aims  to  deliver  a  minimum  cumulative  ne t  profit  of  CZK 33.3 billion,  which is 46.2% higher than in the previous five-year  period. MONETA is aiming to gradually increase total operating  income by 5% CAGR to reach CZK 16.5 billion in 2029.  MONETA  also  targets  to  keep  operating  expenses  under tight control, reducing the cost- to-inc ome ratio  to 40% , with operating expenses of CZK 6.6 billion by  2029. The target for the cost of risk i s to normalise in  the  range  of  25–45bps  over  the  medium  term.  The  effecti ve tax rate should be around 15.5%. The Return  on Tangible Equity is projected to reach a minimum of  20% throu ghout the period. Metrics 2025 2026 2027 2028 2029 CAGR 2025–2029 Total operating income (CZK bn) 13.6 14. 6 15.1 15.8 16.5 5.0% Total operating expenses (CZK bn)  (5.9) (6.1) (6.2) (6.4) (6.6) 2.8% Operating profit (CZK bn) 7.7 8.5 8.9 9.4 9.9 6.5% Co st of risk (CoR, bps) (15-35) (25-45) (25-45) (25-45) (25-45) n/a Effec tive ta x rate 5 15.5% 15.5% 15.5% 15.5% 15.5% n/a Net profit (CZK bn) 6.0 6.3 6.6 7.0 7.4 5.4% Earnings per share (CZK) 11.7 12.3 12.9 13.7 14.5 5.4% Return on Tangible Equity (RoTE) 20% 20% 21% 21% 22% n/a More details on the medium-term guidance are also available in Chapter 12 “Forward-Looking Statements” of this  Annual Financial Report. 31 HIGHLIGHTS Annual Financial Report 2024 MARKET PERFORMANCE OF THE BANK’S SHARES 6  Latest available market price of the shares. The Prague Stock Exchange does not trade on 31 December and on weekends. 7  Source: https://www.pse.cz/en/market-data/shares/prime-market. 8   The m arket capitalisation of the Ban k wa s calculated on the basis of the share price of CZK 123.8 as at 30 December 2024. (Source: https://www.pse.cz/en/ market-data/shares/prime -market). 9  Calculated as a percentage of the aggregate market capitalisation of all companies included in the PX index (Source: Prague Stock Exchange www.pse.cz). 10   Calculated a s average of daily total turnover in 2024 based on data from https: //www.pse.cz/en/detail/CZ0008040318?ta b=detail-history. 11  Including the proposed, not yet paid, dividend from the consolidated net profit of 2024. 12  Source: Bloomberg. Total Shareholder Return according to Bloomberg methodology, including rein vested dividend. 13   The dividend yield per share is calculated as the ratio (expressed as a percentag e) of dividends per sh are distributed durin g the pe riod and the Bank’s shares  closing price as at the last trading day of the period. (Source: Prague Stock Exchange). 14  Calculated as consolidated net profit for the year divided by the n umber of shares issued. 15  Calculated as consolidated Total E quity divided by the number of shares issued. •  On  30  December  2024 6 ,  the  closing  price  of  the  Bank’s  shares  o n  the  Prime Market  of the  Prague  Stock Exchange was CZK 123.8. The high e st closing  price in 2024 was CZK 127 recorded in November. 7 •  The  market  capitalisation  of  the  Bank  reached  CZK  63.3  billion 8   as  at  31  December  2024,  which  represents  14%  of  the  aggregated  mar ket  capitalisation  of  all  companies  inclu ded  in  the  PX index (as at 31 December 2024). 9 •  In  2024,  the  aver age  daily  volume  of  trading  in  the  shares  of  the  Bank  on  the  Prime  Market  of  the  Prague  Stock  Exchange  amounted  to  422,000  shares. 10 •  In  2024,  MONETA  distributed  to  its  shareholders  two dividend payments totalling CZK 12 per share.  The  divi dend from 2023  net  profit  in  the  amount  of  CZK  9  per  share  was  paid  on  21  May  2024.  On 19 November 2024, the  year’s second General  Meeting approved the payme nt of an extraordinary  dividend  from  the  previous  year’s  net  profits  in  the amount of CZK 3 per share, which was paid on 17 December 2024. •  The  Management  Board  will  propose  a  dividend  distribution  from  2024  net  profit  in  the  amount  of  CZK  10  per share,  representing  a  pay-out  ratio  of  88%  of  the  2024  consolidated  net  profit.  The  payment of this dividend will be subject to approval  at  the  Annual  General  Meetin g  to  be  held  on  24 April 2025. •  The Management Board of the B ank is committed  to  its  dividend  policy  to  dis tribute  at  minimum  70% of annual net profit subject to corporate an d  regulatory approvals. S ince th e IPO in 2016 the Bank  has distributed to its shareholders in total 88% 11 of  cumulative cons olidated net profit. Further details  are available in chapter 1.3 “Dividend Policy”.  •  MONETA’s  Total  Sharehol der  Return  in  2024  reached  48%  (35.7%  in  2023) 12 ,  and  th e  dividend  yield for the same period was 9.7% (8.5% in 2023) 13 . Market information on shares of the Bank as at 31 December 2024, unless otherwise indicated: Number of shares issued 511,000,000 Mar ket capitalisation (CZK m) 8 63,262 Consolidated earnings per share (CZK) 14   11.4 Consolidated book value per share (CZK) 15   62.4 Share price (CZK), Prime Market of Prague Stock Exchange 7   Closing price as at 30 December 2024 123.8   Maximum closing price during 2024 127.0   Minimum closing price during 2024 93.7 32 HIGHLIGHTS Annual Financial Report 2024 The foll owing chart shows the development of the Total Shareholder Return in 2024. 16 16  PX Index - Czech stock market index, Euro Stoxx Banks - European bank in dex (Stoxx 600). TOTAL SHAREHOLDER RETURN (PRICE REBASED TO 100) MONETA Money Bank Index PX Euro Sto xx Banks 80 90 100 110 130 150 140 120 Total Shareholder Return in 2024 MONETA  +48.0% Index PX  +33.8% Euro Sto xx Banks  +35.4% 160 May 24 June 24 July 24 August 24 September 24 October 24 November 24 December 23 February 24 March 24 April 24 January 24 December 24 35 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 1.  PROFILE OF MONETA MONEY BANK   AND ITS SUBSIDIARIES 1  On 6 May 2016, the conditional trading in the Bank’s shares was commenced. The official trading in the Bank’s shares was comme nced o n 10 May 2016. 1.1 BASIC INFORMATION ABOUT MONETA MONEY BANK AND ITS SUBSIDIARIES Company name MONETA Money Bank, a.s. Registered office Vyskočilova 1442/1b, Michle, 140 00  Prague 4, Czech Republic, Post code  140 28 Company ID No. 25672720 LEI code I6USJ58BDV2BO5KP3C31  Legal form Joint-stock company  Registered in the Czech Commercial  Register maintained by the  Municipal Court in Prague in Section  B under Entry No. 5403 Date of registration 9 June 1998 Share capital CZK 10.22 billion Paid-up share capital 100% Type, form and format of issued shares and their nominal value The company’s registered capital  is divided into 511,000,000 fully  pai d ordina ry registe red book-entry  shares with a p ar value of CZK 20.00  each. Number of branches (as at 31 December 2024) 124 Organisation units abroad None Telephone +420 224 441 111 Webpage www.moneta.cz ISIN/Ticker CZ0008040318/MONET MONETA  (hereafter  also  the  “Group”)  is  a  hol di ng  consisting of the parent controlling company MONETA  Money  Bank,  a. s.  (hereafter  also  the  “Bank”  or  “MONETA Mon ey Bank”) and its controlled subsidiaries:  MONETA  Stavební  Spořitelna,  a.s.  (hereafter  also  the  “Building  Savings  Bank”),  MONETA  Auto,  s.r.o.  (hereafter  “MONETA  Auto”)  and  MONETA  Leasing,  s.r.o. (hereafter “MONETA Leasing”). The  Bank  as  well  as  its  controlled  subsidiaries  are  headquartered in Prague. Th e Shared Services Centre  is located in Ostrava. Number of Employees 2024 2023 Average number of FTEs during the year 2,475 2,493 - of which at branches 1,202 1,240 Number of FTEs as at 31 December 2,490 2,511 Shares and Share Capital The  registered  share  capital  in  the  amount  of  CZK  10.22  billion  consists  of  511,000,000  fully  paid  ordinary registered book-entry shares with a par value of CZK 20.00  each. No  shares  in the Bank are  owned  by the Bank or its subsidiaries or o n behalf or for the  account  of  the  Bank or  i ts subsidiaries. The Bank  has  not  issued  any  securities  or  instruments  convertible  into  or  exchangeable  for  the  Bank  shares,  nor  any  securities or other instruments with warrants . All  shares  in  the  Bank  are  traded  on  the  Prime  Market organised by Burza cenných p apírů Praha, a.s.  (hereafter  as  the  “Prague  Stock  Exchange”), whic h  is  a regulated market within the meaning of Sections 55 and  64  of  Act No.  256/2004 Coll.,  on  Capital Market  Business, as amended (hereafter the “Capital Markets  Act”). The shares of th e B ank are also traded without  the  Bank’s  consent  on  regulated  markets  o perated  by  RM-SYSTÉM,  česká  burza  cenných  papírů  a.s.  (on  the multilateral trading facility within the meaning of  Section 69 of the Capital Markets Act) and can also be  traded on certain foreign markets. Security Share ISIN CZ0008040318 Total nominal value CZK 10.22 billion Issued as Book-entry share Form Registered share Nominal value per share CZK 20 Market Prague Stock Exchange Traded since 6 May 2016 1 36 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 Statutory Bodies of the Bank Members of the Supervisory Board as at 31 December 2024: Name Role Member position held from Member position held to Gabriel Eichler Chairman 26 October 2017 (Chairman since 2 August 2018) 20 Decembe r 2025 Miroslav Singer Vice-Chairman 24 April 2017 (Vice-Chairman since 22 May 2017) 28 April 2025 Clare Ronald Clarke Member 21 April 2016 19 November 2028 Denis Arthur Hall Member 21 April 2016 19 November 2028 Kateřina Jirásková Member 25 April 2023 25 April 2027 Zuzana Prokopcová Member 19 November 2024 19 November 2 028 Klára Escobar Employee representative 7 May 2021 7 May 2025 Monika Kalivodová Employee representative 1 June 2 024 7 May 2025 Linda Kavanová Employee representative 1 August 2024 7 May 2025 The function term of Mr. Clare Ronald Clarke, Mr. Michal Petrman and Mr. Denis Arthur Hall expired on 2 Se ptember  2024. The Supervisory Board co-opted Mrs .  Zuzana Prokopcová (current member of the Audit Committe e), Mr.  Clare Ronald Clarke and Mr. Denis Ar thur Hall as members of the Supervisory Board from  3 Septembe r 2024 until  the next General Me eting, which took place on 19 November 2024 and at which they  were  e lected as members of  the Supervisory Board with immediate effect for another four-year term. Following  the  resignation of  Mrs. Zuzana Filipová from the  Supervisory  Board as  at  31 May  2024, Mrs. Monika  Kalivodová was co-opted by the Supervisory Board as a member of the Supervisory Board represe nting employees  until new elections for employee members of the Supervisory Board are held. Following  the  r e signation o f  Mrs. Jana Výbošťoková fro m  the Supervisory Board  as  at  31 July 2024, Mrs .  Linda  Kavanová was co-opted by the Supervisory Board as a member of the Supervisory Board representing employees  until new elections for employee members of the Supervisory Board are held. Members of the Management Board as at 31 Dec e mber 2024: Name Role Member position held from Member position held to Tomáš Spurný Chairman 1 October 2015  (Chairman since 1 October 2015) 3 October 2027 Carl Normann Vökt Vice-Chairman 25 January 2013 (Vice-Chairman since 1 March 2019) 28 January 2029 Jan Novotný Member 16 December 2013 18 December 2025 Jan Friček Member 1 March 2019 2 March 2027 Klára Starková Member  1 June 2 021 1 June 2 025 Andrew John Gerber Member 10 September 2024 10 September 2028 On the proposal and recommendation of  its Nomination Committee, the Bank’s Supervisory Board elected Mr.  Andrew  John  Gerber  as  a  new  member  of  the  Bank’s  Management  Board  for  a  four-year  term  effective fr om  10 September 2024. On th e recommendation of its Nominatio n Committee, the Supervisory Board also approved the reappointment  of Mr. Carl Normann Vök t as a member of the Bank’s Management Boar d for a further four years until 28 January  2029. The Bank’s Management Board subsequently re-elected him as its Vice-Chairman. 37 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 Subsidiaries and associates Investments in subsidiaries and associates as at 31 December 2024: Name Registered office Business activity Bank‘s share in registered capital and voting rights MONETA Stavební Spořitelna, a.s. Vyskočilova 1442/1b,   Michle, 140 00 Prague 4 Building savings and bridging loans 100% MONETA Auto, s.r.o. Vyskočilova 1442/1b,   Michle, 140 00 Prague 4 Auto financing (loans and leases) 100% MONETA Leasing, s.r.o. Vyskočilova 1442/1b,   Michle, 140 00 Prague 4 Financing of loans and leasing 100% CBCB - Czech Banking Credit Bureau, a.s. Štětkova 1638/18,   Nusle, 140 00 Prague 4 Banking credit register 20% As at 31 December 2024 MONETA also held a position in Bankovní identita a.s. of 8%. Credit Rating In 2024 the Bank has bee n assigned following credit rating:  Rating agency Long-term rating Outlook Short-term rating Long-term rating valid since Last report date Moody’s Deutschland GmbH A2 stable P-1 10 June 2019 16 December 2024 Rating agency Mo ody’s Deutschland GmbH. (“Moody’s”) is established in th e European Union and is registered  under  Regul ation  (EC)  No.  10 60/2009,  as  amended  (the  “CRA  Regulation”).  As  such,  Moody’s  is  included  in  the  list  of  credit  rating  agencies  p ublished  by  the  European  Se curities  and  Markets  Authority  on  its  website  (https://www.esma.europa.eu/supe rvision/credit-rating-agencies/risk)  in  accordance  with  the  CRA  Regulation.  When selecting the rating agency, the Bank proceeded in accordance with the obligations laid down in Article 8d  of the CRA Regulation.  1.2 STRATEGY MONETA remains focused on its strategic goals and on meeting commitments to its shareholders. Corporate Sustainability Cost Control and Operational Excellence Risk Management Sustainability Efficient Capital Strategy Maintain & Improve Retail Franchise Develop Small Business Banking Retain & Reinforce SME Banking Digital Capabilities 38 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 Maintain and Improve Retail Franchise •  Maintain  an d  further  develop  its  retail  banking  franchise  with  a  strong  focus  o n  mortgage  and  unsecured  consumer  lending through  a continued  concentr ation  on  capital  returns,  risk-based  originations  and  risk  management.  Additionally,  MONETA  aims  to  further  expand  its  offering  of  third-party  product s ,  namely  insurance  and  asset  management. Develop Small Business Banking •  Maintain a strong focus on small business lendin g  represented  by  self-employed  professio nals,  tradesmen  and  women,  and  entrepreneurs,  continue in gradually changing the overall business  mix,  targe ting  diversification  of  revenue  streams  and  building  recognition  of  MONETA  as  a  leading  retail and small business bank in the Czech Republic. Retain and Reinforce SME Banking •  Significantly  grow  its  presence  within  the  SME  segment  and  deepen  relationships  with  medium-sized  commercial  customers,  leveraging  MONETA’s  unique po sition within  the agri cultural  sector of the Czech economy. Digital Capabilities •  Improve and develop MONETA’s digital capabilities  through p roviding lending, deposit and third-party  products  and  services  via  digital  channels ,  while  maintaining the position of digital banking leader in  the Czech Republic. Risk Management Sustainability •  Protect  strong  asset  quality  through  pr udent  and  sustainable risk management. Efficient Capital Strategy •  Pursue capital strategy to efficiently allocate capital  resources  on  exposures  with  sufficie nt  r eturn  through diligent capital management. Cost Control and Operational Excellence •  Focus  on  efficient  cost  control  and  operational  excellence in M ONETA’s processes. Corporate Sustainability •  Continue  to  pursue  it s  Environmental,  Social  and  Governance  Strategy  that  is  based  o n  M ONETA’s  positive economic, social and environmental impact.  MONETA  will  con tinue  to  buil d  its  r ecognition  as  one of the leaders in reducing its carbon footprint  and  a  corp orate  leader  in  e-mobility.  MONETA  is  commi tted  to  running  its  business  ethically,  including its relationship s with its key stakeholders,  who  play  an  important  part  in  this  strategy,  with  its suppliers and external organisations; p romote a  healthy, agile, open and diverse co rporate culture  based  on  mutual  trust,  co-operation,  recognition  and  transparency;  MONETA  enc ourages  and  motivates  employees  to  become  mor e  deeply  connected with their communities throughout the  year  as  volunteers  and  continues  to  support  and  help non-profit organisations in regions as a part of  its corporate philanthropy programme. 1.3 DIVIDEND POLICY Subject  to  corporate,  regulatory  and  regulator’s  limitations , the Bank’s target is to distribute the Group’s  excess capi tal above that required to meet the Group’s  internal  target  of  the  capital  adequacy  ratio,  which  stood  at  15.05%  as  at  31  December  2024.  However,  the internal capital adequacy r atio tar get is not leg ally  binding upon the Group and is subject to change on the basis of the ongoing re-assessment by the Management  Board  of  the Bank based  on the business  results  and  development .  In  line  with  its  dividend  policy,  the  Bank is  targeting a minimum annual dividend of 70%  of  c onsolidated  net profit for  the  year.  However, the  dividend  may  potentially  increase  if  less  capital  is  required to f und future loan growth, intangibles and/ or  potentially  decrease in  the  event  of  any  accretive  investment opportunity for the Bank. Following  the  approval  at  the  General  Me eting  held  on  23  April  2024,  MONETA  distributed  a  dividend  relating to 2023 consolidate d net profit in the amount  of CZK 9 per share to its shareholders, representing a  dividend pay-out ratio of 88%. The dividend was paid  on 21 May 2024.  On  17  October  2024,  the  Bank’s  Management  Board  announced  that  it  will  propose  an  extraordinary  dividend  in  the  amount  of  CZK  3  per  share  to  be  distributed from the retained earnings from the previous  year. The dividend was approved by the shar eholders  at the General Meeting held on 19 November 2024 and  was paid on 17 December 2024. On  31  January  2025,  the  Bank’s  Management  Board  announced  that  it  would  propose  a  dividend  for  the  year  2024 in the amount of CZK 10 per share from the  2024 consolidated net profit for sharehold e r’s approval  at the General Meeting, which will be held on 24 April  2025. The total amount of the dividend to be paid will  reach CZK 5.1 billion, which represents a payou t ratio  of 88% o f the consolidated net profit for 2024. The Bank will pay div idends, if any, to its shareholders  in CZK. Each of the Bank’s shareholders has the right to  receive div idends from the Bank to the extent approved  by the General Me eting. 39 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 1.4 SHAREHOLDER STRUCTURE The  Bank  had  mo re  than  26,000  investors  from  47  countries  according  to  the  excerpt  from  th e  Czech  Central Securities Depository as at 31 December 2024.  An overview of the shareholder str ucture of the Bank  as at 31 December 2024 and 31 December 2023 (as per  the  extract  from  the  regi stry  o f  book-entry  shares  obtained  from the Czech  Central Securities) is shown  below:  26,111 89 323 231 191 511 191 SHAREHOLDER STRUCTURE AS AT 31 DECEMBER 2024 Private individuals Number of  shareholders Czech legal  e n ti  ti  e s Foreign legal  e n ti  ti  e s Number of shares  (in millions) 26,625 23,358 88 307 229 186 511 194 23,851 Private individuals Czech legal  e n ti  ti  e s Foreign legal  e n ti  ti  e s SHAREHOLDER STRUCTURE AS AT 31 DECEMBER 2023 Number of  shareholders Number of shares  (in millions) As  at  31  Dec e mber  2024,  the  following  entities  were  record ed  in  the  re gistry  of  book-entry  shares  maintained by the Czech Central Securities Depository  in Prague as holding at least 1% of the registered share  capital of the Bank. These entities  may not ne cessarily  be the beneficial owne rs of the Bank shares but may  hold  shares  of  the  Bank  (as  custodians,  securities  brokers, banks, or nominees) for the beneficial owners. Shareholder Shareholding Tanemo a.s.  29.94% MYTHESSA HOLDINGS LTD  11.20% MANECOMTE Limited 9.56% Chase Nominees Limited  3.50% Banka CREDITAS a.s.  3.49% Brown Brothers Ha rriman CO. 2.53% Sta te Street Bank and Trust Company 2.08% J.P. Morgan SE - Luxembourg Branch  1.82% GENERALI CEE Holding B.V. 1.36% Nortrust Nominees Limited  1.32% BROWN BROTHERS HARRI MAN  (Luxe mburg) S.C.A.  1.15% As at 31 December 2024, the following entities notif ied  the  Bank  and  the  Czech  National  Bank  pursuant  to  Section  122  of  the  Capital  Markets  Act  o f  holding  a  direct  or  indirect  proporti on  of  the  Bank’s  voting  rights of at least 1%. T hese enti ties have rights pursuant  to  Section  365  et  seq.  of  Act  No.  90/2012  Coll.,  on  business  companies  and  cooperatives  (Business  Corporations  Act),  as  amen ded.  This  list  is  prepared  in accordance with the information sent by the Bank’s  shareholders to the CNB pursuant to Section 122 of the  Capital Market Undertakings Act, which, however, does not impose an obligation to notify the CNB again of a  change in  the  shareholding  unless the threshold (1%,  5%, 10% and more) is crossed. Therefore, the amount  of  the  voting  shares  of  the  individual  shareholders  listed may not  correspond to their actual shares in th e  voting rights of the Bank as at 31 December 2024. Shareholder Shareholding AMALAR Holding (Kellner family) 29.94% Ivan Jakab ovič, Jozef Tkáč (MYTHESSA  HOLDINGS LTD)  10.37% MANECOMTE Limited 10.04% J.P. Morgan Securities Plc 5.96% BlackRock Inc. 3.41% NN Investmen t Partners Luxembourg S.A. 1.36% Kuwait Investment Authority (KIA) 1.29% Generali CEE Holdi ng B.V. 1.28% Schroder International Selection Fund 1.11% Goldman Sachs Group 1.06% AllianceBernstein 1.05% Seafarer Capital Partners 1.00% American Century Investment  Management 1.00% 40 PROFILE OF MONETA MONEY BANK AND ITS SUBSIDIARIES Annual Financial Report 2024 GEOGRAPHICAL STRUCTURE OF THE BANK’S SHAREHOLDERS AS AT 31 DECEMBER 2024 AND 31 DECEMBER 2023 2 Czech Republic United Kingdom 51.8% 25.0% 5.2% 2023 2024 United States of America Cyprus 11.5% 6.5% Other 52.6% 23.6% 5.3% 11.4% 7.1% 2   Source: Analysis pr ovided by external company as at December 2024 and December 2023. 43 STRATEGY AND RESULTS Annual Financial Report 2024 2.  STRATEGY AND RESULTS 1   Source: Czech Statistical Office: G DP Preliminary Estimate - 4th quarter of 2024. 2   Source: Czech Statistical Office: Industry - December 2024. 3   Source: Czech Statistical Office: Consumer price indices - infla tion - D ecember 2024. 4   Source: Czech Statistical Office: Av erage wages - 3rd quarter of 2024. 5   Source: Czech Statistical Office: Retail trade - December 2024. 6   Source: Czech Statistical Office: Rates of employment, unemployment and economic activity - December 2024. 7   Source: Czech National Bank: CNB Board dec isions, 21 December 2023. 8    Source: Czech National Bank: CNB Board decisions, 8 February 2024, 20 March 2024, 2 May 2024, 27 June 2024, 1 August 2024, 25 September 2024, 7 November 2024. 9   Source: Czech National Bank: CNB Board dec isions, 6 February 2025. 10   Source: CNB ARAD monthly report banking sector, residents incl. building societies, deposits and loans according to sector. 11   Source: CNB ARAD monthly report banking sector, residents incl. building socie ties, loans accor ding to sector. 12   Source: CNB ARAD mont hly report banking secto r, residents incl. building societies ,  household loans according to type in CZK. 2.1 MACROECONOMIC ENVIRONMENT In  2024,  the  Czech  eco nomy  recovered  from  the  economic  impacts  of  the  ongoin g  w ar  in  Ukraine.  The high  inflation of recent years was brought under  control  and  economic  growth  resumed,  albeit  at  a  slow  pace.  The  year  2024  was  also  characterized  by  decreasing interest rates, which followed the reduction  in inflationary pressures. Czech  gross  domestic  product  incr eased  by  1% 1 year-on -year in 2024. The economy was driven mainly  by  consumption,  whic h  regained  momentum  as  real  wages grew. On the other hand, industrial production  and foreign tra de, which made positive contributions  to  the  econo my  at  the  beginning  o f  the  year,  lost  ground and had by the year-end pulled the economy’s  performance down. Industrial  performance  displayed  a  decelerating  trend throughout th e  year and,  as  a  result, industrial  production  fell  by  3% 2   year-on-year  as  at  December  2024. The key factor of this decrease was the diffi cult  situation in the automotive industry, which suffered a  downturn in demand. Industrial new orders were flat 2  year-on -year  to  D ecember  2024, mainly  due  to  weak  orders in the automotive sector.   Czech  consume rs  benefited  from  lowering  inflation,  although the average annual inflation rate was 2.4% in  2024, and consumer prices  grew by 3% 3 year-on-year  as  at  December  2024.  Increases  in  consumer  prices  were  outweighed  by  growing  average  gross  nominal  wages, which increased by 7% year-on-year in the third  quarter of 2024 and by 4.6% 4  in real terms. Increasing  real  wages  and  improved  consumer  sentiment positively affected retail sales, w hich rose by  4.6% 5  in 2024 over 2023. This was underpinned by very  low  unemployment  levels,  with  th e  unemployment  rate  at  2.7% 6   in  De cember  2024,  lower  by  10bp s  year-on-year. The  lower  inflation  rate  provided the  Czech  National  Bank with th e room to continue reducin g interest rates,  which  began  in  December  2023  with  a  25bps  cut 7 ,  and  continued  in  2024  wi th  the  Czech  National  Bank  lowering its base rate from 6.75% to 4% 8 in seven steps. In February 2025, the Czech National Bank performed  an  additional 25bps  cut,  thus  moving its key interest  rate to 3.75% 9 . The  Czech  economy  experienced  a  year  of  slow  recovery  fr om  the  mild  recession  of  2023.  National  economic  performance  continuously  improved  throughout  2024,  although  its  drivers  changed.  At  the beginning of 2024, stronger international demand  supported gross domestic product with exports. In the  secon d  half  of  2024,  however,  industrial  production  started to weaken and household consumption moved  into the driving seat of the domestic economy.  Positive  econ omic  prospects  are  predicted  for  2025.  On  the  other  hand,  internati onal  risks,  such  as  the  continuing  war  in  Ukraine,  the  weak  performance  of  the German economy, and th e threat of international  trade wars, supress the growth outlook for the Czech Republic. These risks, if elevated, might lead to a worse  than expected economic performance for the country. 2.2 MARKET DEVELOPMENT During  2024,  the  Czech  banking  sector  maintained  a  positive  trend:  loans  increased by  5.5%  and  deposits  rose by 7.6% year-on-year. 10 The  overall  volume  of  loans  provided  by  the  Czech  banking sector reached CZK 4,184 billion, up by 5.5%  year-on -year.  The  retail  lending  market  continued  to  show  steady  growth,  with  a  6%  year-on-year  rise  to  CZK  2,277  billion,  while  the  commercial  segment  experienced  a  slightly  slower,  but  still  solid, increase  of 4.9% year-on-year to CZ K 1,907 billion. 11  The rise i n  the retail segment was primarily driven  by  consumer  loans,  building  savings  loans  and  overdrafts. 12   The  44 STRATEGY AND RESULTS Annual Financial Report 2024 commerc ial segment recorded growth in all categories,  but  medium -term  loans  saw  the  most  significant  increase. 13 CZECH LENDING MARKET (in CZK bn) +5.5% Retail loans +6.0% YoY Commercial loans  +4.9% YoY 31 Dec 2024 4,184 31 Dec 2023 3,966 2,148 1,819 2,277 1,907 Figures in the chart may not add up to the total due to rounding diff erences. The  deposit  market  in  the  Czech  Republic  reached  a  total  of  CZK  6,927  billion  in  2024,  up  by  7.6%  year-on -year.  Retail  deposits  grew  by  7.1%  year-on -year  to  CZK 3,659  billion, which  was  driven  mainly  by  non-term  deposi ts  as  term  dep osits  declined .  Commercial  deposits  had  an  increase  of  8.2% year-on-year to CZK 3,268 billion, with growth in  both non-term and term deposits. 14 CZECH DEPOSIT MARKET (in CZK bn) 6,927 6,438 3,417 3,021 3,659 3,268 Retail deposits  +7.1% YoY Commercial deposits   +8.2% YoY 31 Dec 202431 Dec 2023 +7.6% Throughout  the  year,  the CNB  gradually  reduced  the  key 2-week repo rate from 6.75% in January 2024 to 4%  valid in December 2024. Interest rates in the banking  13   Source: CN B ARAD mont hly report banking sector, residents incl. building societies, loans to non-financial businesses and entrepreneurs according to time. 14   Source: CNB ARAD monthly report banking sector, resident s incl. building societies, deposits according to time. 15   Source: CNB ARAD monthly report banking sector, r esidents incl. building societi es, loan interest rates - ou tstanding amounts. 16   Source: CNB ARAD monthly report banking sector, residents incl. building societies, deposit interest rates outstanding amounts. 17   Source: CNB ARAD quarterly mandatory disclosur es, total banking sector. sector  decreased  compared  to  2023,  except  for  mortgage  r ates.  Retail  loan  interest  rates  marginally  declined year-on-year in consumer loans by 4bps, while  mortgages rose by 38bps. Interest rates on commercial loans  d ecreased  by  186bps  year-on-year. 15   Deposit  interest rates declined in both segments comp ared to  the  previous  year;  commercial  depo sit  interest  rates  fell by 115bps and retail deposit interest rates by 70bps  year-on-year. 16 In the first three quarters of 2024, the total operatin g  income  of  the  Czech  banking  sector  increased  by  2.9%  year-on -year  to  CZK  186.3  billion,  largely  due  to  an  8.2%  growth  in  net  non-interest  income  to  CZK 61.5 billion. This was driven by gains from fees and  foreign exchange operations. Net interest income grew  by 0.4% year-on -year to CZK 124.8 billi on, reflecting a  decline in the cost of funding. 17 CZECH BANKING MARKET – TOTAL OPERATING INCOME (in CZK bn) +2.9% Net interest  income +0.4% YoY Net non-interest  income +8.2% YoY 3Q 2024 YTD 186.3 3Q 2023 YTD 124.8 61.5 181.1 124.3 56.8 The  net profit of the  entire Czech  banking  s ector  for  the  first  three  quarters  of  2024  increased  by  9.5%  year-on -year  to  CZK  91  billion.  Thi s  was  driven  by  higher total  operating income and a decreasing cost of  risk thanks to good portfolio performance acros s  the  whole banking market. 17 CZECH BANKING MARKET – NET PROFIT (in CZK bn) +9.5% 83.1 91.0 3Q 2024 YTD 3Q 2023 YTD The  capitalisation  of  the  Czech  banking  sector  remained  stro ng  as  at  30  Sep tember  2024,  resulting  from  a  combinati on  of  prudent  management  and  strong business perfor man ce. Tier 1 capital increased  by 4.2% year-on-year to CZK 669.1 billion as at the e nd  of the third quarter of 2024. 17 45 STRATEGY AND RESULTS Annual Financial Report 2024 CZECH BANKING MARKET – TIER 1 CAPITAL (in CZK bn) 30 Sep 202430 Sep 2023 +4.2% 642.1 669.1 2.3 REPORT ON BUSINESS ACTIVITIES 2.3.1 Overview MONETA is positioned uniquely as a mi d-sized b ank with  market-leadin g  digital  capabilities,  a  well-established  position in Czech household financing, and a growing  position  in  the  small  business  segment.  It  seeks  to  provide excellent product propositions to clients from these  segments,  accompanied  by  the  best  possible  customer experience.  MONETA has built a strong and well-recognised brand  within  the Czech  Republic. The  brand  is  built  around  trust, stability, innovation, fairness and  transparency.  This was established following the IPO on the Prague  Stock  Exchange  in  2016,  and  within  two  years  had  reached  the  level of  spontaneous awareness  enjoyed  by  its  predecessor  brand.  In  2024,  spontaneous  awareness reache d an average of 49%. 18 The Bank is regulated by the C zech National Bank and  holds a universal banking licenc e. Operating Platform MONETA  operates  through  a  well-dispersed  network  within  the  Czech  Republic,  comprising  124  branches  as  at  31  December  2024  and  a  full-service  contact  centre. The Bank has a front-office staff totalling 1,352  people.  MONETA  also  operates  a  network  of  557  of  its  own  ATMs  with  a  further  1,409  ATMs 19   available  free of charge to its clients via an alliance with three  other  banks.  Dur i ng  2024  a  deposit-taking  function  was  enabled  on  795  ATMs  of  the  shared  network.  Together,  MONETA’s  branch  and  ATM  networks  provide extensive coverage of the entire country, with  a particular strength in smaller cities and towns, which  are relatively underserved by other banks.  In 2024, in line with its strategy, MONETA discontinued  distribution  through  third-party  broker s  to  focus  on  sales  through  its  own  branch network  and  via its  digital  channels. H owever, car dealers continue  to be  an important distr i bution channel for MONETA Auto.  18   Source: CO NFESS Research 2024, Retail. 19   The ATM shared network included as at 31 December 2024 also Komerční Banka (791 ATMs), AirBa nk (367 ATMs) and UniCred it Bank (251 ATMs). MONETA  bene fits  from  a  market-leading  digital  banking  pl atform,  which  is  an  impo rtant  channel  for  both sales and services.  As at 31 December 2024, MONETA served 1.6 million retail  and  commercial  clients,  an  increase  of  1.4%  year-on -year,  with  deposit  products  continuing  to  be  the  main  attraction for  new clients. MONETA’s  client  base  represents  approx imately  15%  of  the  Czech  population. CLIENT BASE EVOLUTION (number of clients in thousands) 1,578  +1.4% 31 Dec 202431 Dec 2023 Non performing  clients (9.7)% YoY Performing  clients - other +0.5% YoY Performing  clients - primary +2.7% YoY 774 778 1,600 Figures in the chart may not add up to the total due to rounding diff erences. 774 795 28 31 Business Segments MONETA’s business is organised into two main segments:  retail  and  commercial.  These  segments  are  reported  separately in MONETA’s financial statements, along with  a third operating segment, “Treasury/Other”. The retail and commercial segments manage product  and  servi ce  propositions  customised  for  their  respective clients. The retail business provides banking  services  to  indiv iduals,  with  a  focus  on  the  mass  market.  The  comme rcial  busine ss  provides  banking  services  primarily  to  SME  clients  with  a  particular  focus  on  small  businesses  and  entrepreneurs.  Th e re  is, however, a considerable overlap between the client  bases and synergies in terms of the physical and digital infrastructure of the Group. The  ret ail  banking proposition  includes  the  following  key products:  •  Deposit  products:  current  accounts,  savings  accounts, building savings accounts, term deposits  and  transactional  banking  products,  inc luding  payment services and debit cards;  •  Len di ng  p roducts:  co nsum e r  loans,  c redit  cards,  overdrafts,  mortgages,  building  saving s  loans,  46 STRATEGY AND RESULTS Annual Financial Report 2024 bridging loans and auto loans; and •  Supplementar y  third-party  products  such  as  insurance and investment funds.  The  commercial  banking  proposition  includes  the  following key products:  •  Deposit  products:  current  accounts,  savings  accounts, building savings accounts, term deposits  and  transactional  banking  products,  inc luding  payment services and debit cards; •  Len di ng produ cts: investment loans (including real  estate  loans),  ope rating  financing  loans,  leasing  products, building savings loans and bridgin g loans;  and  •  Supplementar y  products  such  as  domestic  and  foreign  payments,  merchant  acquiring,  insurance,  investment  funds,  treasury  and  trade  finance  products.  A  revival  in  demand  for  lending  products  increased  both  the  retail  and  commercial  loan  portfolios.  MONETA  reported  total  gross  performing  loans  in  the  amount  of  CZK  275.9  billion  as  at  31  December  2024, up 4.5% year-on-year. The volume of new loans  increased  by  53.4%  year-on-year  to  CZK  62.5  billion.  Custome r deposits also increased by 7.7% year-on-year  to  CZK  429.8  billion,  despite  the  re pricing  of  deposit  products during 2024. 2.3.2 Retail Segment Business Performance MONETA  provides  a  full  retail  banking  proposition  covering  the  main  borrowing,  saving/investing  and  transactional  needs  of  customers,  as  well  as  a  wide  range  of  insurance  needs.  MONETA  has  a  market-leadin g  digital  proposition  for  retail  clients  built around its secure digital banking platform.  In  the  retail  s egment,  M ONETA  served  1.5  million  client s ,  up  0.9%  year-on-year.  The  retail  ac tive  base  remained  stable  in  2024,  with  71%,  or  1  million,  of  all  re tail  clients  were  considered  active.  MONETA  continued  to  e njoy  high  levels  of  loyalty;  62%  of  customers  have  had  a  relationship  with  MONETA  for  more than 8 years. Clients positively rated the mo bile  banking  application  Smart  Banka 20   and  the  staff  at  MONETA’s branches. Overall, MONETA maintaine d a retail market share of  13.4% 21 in consumer loans, 7.4% 21 in retail mortgages  and  8.9% 22   i n  retail  dep osit  balances  in  the  C zech  banking market as at 31 December 2024.  20   Source: https://play.google.com/store/ https://www. apple.com/app-store/. 21   Source: CNB ARAD monthly report banking sector, residents incl. building societies, household loans according to type in CZK – consumer loans and mortgages. 22   Source: CNB ARAD monthly report banking sector, residents incl. building societies, deposits according to time – househol ds. 2.3.2.1 Retail Segment Strategic Priorities Delivery MONETA’s retail business focused on four key strategic  priorities, with a strong focus o n deposits  in the context  of the higher interest rate environment of 2024:  1.  Retention  of  deposit  balances  through  market  leading daily banking and savings proposition; 2.  Returning  to  sustainable  growth  in  unsecured  consumer lending and mor tgage loans;  3.  Continued  growth  in  wealth  management  and  insurance distribution businesses;  4.  Continued  optimisation  of  the  digital  platform  and  physical  presence  to  build  a  market  leading  customer service proposition. 1. Retention of Deposit Balances through Market Leading Daily Banking and Savings Proposition Retail  customer  deposits  grew  by  3.5%  year-on-year,  from  CZK  313.2  billion  as  at  31  December  2023  to  CZK 324 billion as at 31 December  2024. The relatively  lower  growth  in  retail  deposits  was  the  result  o f  MONETA’s  focus  on  reducing  the  cost  of  fun di ng  on  customer  deposits  and  the  gradual  reduction  of  interest  rates  offered,  in  line  with  the  decline in  the  two-week  repo  rate.  The  shift  of  custome r  funds  from  deposit  products  to  higher  yielding  wealth  management  pr oducts  also  had  a  significant  impact.  Here,  MONETA  recor ded  an  88.2%  increase  in  new  volumes  to CZK  23.5 billion,  with  approximately  70%  of  new  producti on  coming  from  savings  and  term  deposits.  A s  a  result  of  the  repricing  of  savings  and  term  accounts,  the  cost  of  funds  on  retail  deposits  decreased from 3.5% in 2023 to 3.1% in 2024.  RETAIL CUSTOMER DEPOSITS (in CZK bn) 25.4 313.2 +3.5% 31 Dec 202431 Dec 2023 Building savings Current accounts Savings and term  accounts and other 233.8 243.8 324.0 26.8 52.6 54.8 47 STRATEGY AND RESULTS Annual Financial Report 2024 2. Returning to Sustainable Growth in Unsecured Consumer Lending and Mortgage Loans MONETA increased lending activity during 2024 thanks to the revival in demand for lending products. The retail gross performing loan portfo lio grew by 2%  year-on -year, from CZK 179.5 billion as at 31 December  2023 to CZK 183.1 b i llion as at 31 December 2024.  GROSS PERFORMING RETAIL LOAN PORTFOLIO (in CZK bn) +2.0% 179.5 183.1 31 Dec 202431 Dec 2023 The increase in the portf olio was driven by new retail  loan  volumes  of  CZK  37  billion  in  2024,  up  59.4%  year-on-year. Mortgage  loan  production  increased  by  104.4%  year-on -year  to  CZK  15.1  billion.  As  a  result,  the  gross  performing  mortg age  loan  portfolio  reached  CZK  130.2  billion,  up  2.1%  year-on-year,  as  at  31 Dece mber 2024. GROSS PERFORMING MORTGAGE PORTFOLIO (in CZK bn) +2.1% 130.2 127.6 31 Dec 202431 Dec 2023 New  volumes  of  consumer  loans,  inc luding  building  savings  loans  and  internally  refinanced  volumes,  increased  by  39.7%  year-on-year  to  CZK  20.4  billion,  resulting  in  a  gross  performing  consumer  loan  portfolio balance of CZK 47.8 billion, up CZK 0.7 billion  or  1.5%  year-on-year  as  at  31  December  2024.  T he  gross  performing  consumer  loan  portfolio,  excluding  building  saving  l oans,  grew  by  5%  year-on-year  to  CZK  38.1  bi llion,  supported  by  new  volumes,  which  grew by 47% year-on-year to CZK 20.2 billion. GROSS PERFORMING CONSUMER LOAN PORTFOLIO (in CZK bn) 23 +5.0% 36.3 38.1 31 Dec 202431 Dec 2023 23   Excluding building savings loans. The gross performing revolving loan portfolio of credit  cards and overdrafts remained stable at CZK 2.4 billion.  GROSS PERFORMING CREDIT CARD AND OVERDRAFT PORTFOLIO (in CZK bn) (0.3)% 2.4 31 Dec 202431 Dec 2023 2.42.42.4 3. Continued Growth in Wealth Management and Insurance Distribution Businesses Throughout 2024 MONETA focused on its str ategic goal  of expanding the distribution of third-party products.  The  outstanding  balance  of  distributed  wealth  management  product s  reached  C ZK  59.4  billion,  up  54. 2%  year-on-year.  This  was  supported  by  a  record  net  new  investments  of  CZK  23.5  billio n,  up  88.2%  compared to 2023, as clients turned to investing in funds  in search of higher yields due to declining interest rates  on dep osit products. MONETA’s regular introduction of  new funds is a compelling and attractive proposition,  which  contributed  to  the  success.  As  a  result,  the  income  from  this  category  more  than  doubl ed  to  CZK 739 million in 2024, up by 123.3% year-on- year. Insurance  dis tribution  generated  stable  income  of  CZK 1.2 billion in 2024, up 0.9% year-on-year, however the recurring income increased by 18.6% year-on -year,  driven  by  the dis tribution  of  life and  other insurance  products.  The  annual  premium  equivalent  of  sold  life  in surance  products  reached  CZK  169  million,  an  increase  of  19.1%  compared  to  CZK  142  million  in  2023.  The  number  of  new  pension  insurance  contracts  reached 32,000  units,  a  decrease  of  13.5%  year-on -year.  Personal  item  insurance  continued  to  develop  well,  with  almo st  45,000  units  sold  in  2024,  up  7.2%  year-on-year.  Payment  protection  insurance  also  continued to grow, with  gr oss written  premiums  increasing by 5.1% year-on-year.   4. Continued Optimisation of the Digital Platform and Physical Presence to Build a Market Leading Customer Service Proposition MONETA’s  str ategy  is  to  maintain  its  position  as  the  digital  leader  in  the  Czech  b anking  market  while  continuing  to  provide  high quality, in person support  for  client s  with  more  complex  needs.  MONETA  continues to focus o n moving daily banking and basic  servicing operations online. As at 31 December 2024,  MONETA had 1.5  million users of its o nli ne platform,  representing  7.3%  growth  year-on-year,  with  retail  representing  the  majority.  The  popularity  of  online  channels  is  reflected  in  their  usage.  In  2024,  the  average  number  of  visits  to  online  channels  per  day,  48 STRATEGY AND RESULTS Annual Financial Report 2024 from both, retail and commercial clients, was 684,000,  and  6 6%  of  all  payment  transactions  were  initiated  through digital channels. Growth is al so visible in loan  applications,  with  707,000  initiated  online,  a  19.5%  increase on 2023.  NUMBER OF DIGITAL PLATFORM USERS (in thousand) +7.3% 1,208 31 Dec 202431 Dec 2023 1,523 Mobile and  internet banking Internet banking 315 1,076 1,419 344 Figures in the chart may not add up to the total due to rounding diff erences. In 2024 MONETA made significant progress in moving  mortgage  servicing  onli ne,  with  85%  of  servicing  operations  initiated  through  digital  channels  in  December  2024  (compared  to  39%  in  January  2024).  Regarding loan o rigination, MONETA merged the online  and branch-based mortgage platforms to create a truly omnichannel cus tomer exper ience, allowing clients to  move  seamlessly  between  channels  throughout  the  origination process.  In  2024,  33% of  all  n ewly signed  mortgage volumes were originated online.  SHARE OF NEWLY SIGNED MORTGAGE VOLUMES ORIGINATED ONLINE 20242023 +13pp 20% 33% MONETA intends to extend this model to other products and  will  continue  to  rationalise  and  moder ni se  the  branch network as i ts role changes from daily banking  to the sale and advisory on complex products.  Regarding  retail  deposits,  MONETA,  in  line  with  its  strategy,  continued  to  enhance  the  digital  deposit  product  proposition,  resulting  in  more  than  234,000  new  deposit  products ,  excluding  building  savings,  originated  online  in  2024,  which  represe nts  a  61%  share on  total  newl y  opened  retail  deposit  products.  More  than  half  of  the  units,  approximately  140,000,  24   Excluding building savings. 25   Effective from 1 January 2025, MONETA’s branch network is managed in six regional areas. are  repres e nted  by  term  deposits,  where  the  online  share reached 79% in 2024. SHARE OF RETAIL DEPOSIT PRODUCTS ORIGINATED ONLINE 24 20242023 +7pp 54% 61% Branch Network As at 31 December 2024, MONETA operated a network  of 124 well-distributed branches, providing convenient  acces s for clients across the entire Czech Republic. The  network is managed in four areas 25 , w ith 38 sales teams,  two  mort gage  teams  and  four  investment  teams.  MONETA’s  branch  network  serves  both  retail  and  commerc ial segments and during 2024 had 1.6 million  visits to its branches, of  which approximately 590,000  were visits from unique clients. Branches continued to  play an important ro le in loan originations, with more  than 770,000 loan applications originated at branches  in 2024, up 7.8% year-on-year.  BRANCH NETWORK REGIONAL DISTRIBUTION North South East Moravia 29×  33×  30×  32×  MONETA recognises the need to maintain an adequate  physical  presence,  although  this  is  being  optimised  based  o n  changing  cus tomer  preferences  and  behaviour  as  the  digital  proposition  gains  traction  in  both sales an d servi ces. MONETA invests strategically  in  the  modernisation  of  its  flagship  branch  loc ations  and  in  the  refur bishment  of  smalle r  locations,  which  creates  a  unique  spac e  for  meeting  and  advising  client s ,  whilst  using  digitalisation  to  streamline  both  the customer experience and administrative processes.  49 STRATEGY AND RESULTS Annual Financial Report 2024 During 2024 MONETA closed 10 branch e s , mainly those  with  the  lowest  traffic.  Additionally,  eight  branches  were modernised and three branches were relocated to more attractive locations. ATM Network As  at  31  Decemb e r  2024,  MONETA  operated  its  own  network  of  557  ATMs.  They  proc e ss  an  average  of  1.2  million  cash  withdrawals  per  month,  with  all  locations  equipped  for  contactless  transactions  and  197 locations capable of taking deposits. MONETA  established  a  partner  ATM  network  with  Komerční banka in 2022, which was further ex panded  by  the  a ddition  of  two  other  banks,  Air  Bank  and  UniCredit Bank, in early 2023. In addition, during 2024,  part of the shared ATM network was equipped with a  deposit function . As at 31 Decembe r 2024, the shared  ATM network consiste d  of 1,966 ATMs (of which 795  were  deposit  ATMs),  providing  wide  coverage  in  high-traffic  areas  and  offering  convenient  a ccess  to  withdrawals, deposits and a range of other services. The shared ATM network also allows for the reduction  of  overall  costs  and  also  reduces  the  environm e ntal  impact by relocating and rebalancing ATM coverage.  2.3.3 Commercial Segment Business Performance The  commercial  division  provides  a  full  range  of  commerc ial  products  to  clients  from  all  segments  of  the market, with a focus on small business clients.  MONETA s e rved more than 145,000 commercial clients  as at  31 December 2024, up 6.8% year-on-year, driven  by continued growth in the small business segment. The  commercial  division  has  countryw ide  coverage,  with commercial clients supported by a network of 124 retail branches. In line with its strategy of promoting  lending growth to the small busine ss sector, M ONETA  employed  138  small  business  segment  bankers  as  at  31  D ecember  2024.  Small  business  bankers  provide  specific  small  busin e ss  products  and  service  knowledge  combined  with  industry  know-how.  In  addition, the division also has an experienced team of  126  relationship  managers  with  expertise  in  serving  SME customers and a smaller team of bankers for real  estate and corporate clients. MONETA Auto’s products  are  distributed  through  a  wide  network  of  1,155  car  dealers.  Overall,  MONETA  had  a  market  share  of  5%  in  commerc ial lendin g and 3% in commercial deposits in  the Czech market as at 31 December 2024. 26 26   Source: CNB ARAD, total commercial l oans and deposits excluding non-residents. Commercial Customer Deposits MONETA’s  comme rcial  deposit  balance  amounted  to  CZK  105.8  billion  as  at  31  December  2024,  up  22.9%  year-on -year, with such growth resulti ng from attra ctive  propositions  on  s av ings  accounts  and  term  deposits  together with targeted, segment specific, offers. COMMERCIAL CUSTOMER DEPOSITS (in CZK bn) 51.8 86.1 +22.9% Building savings Savings and term  accounts and  other Current accounts 41.6 53.0 105.8 43.3 1.2 1.0 31 Dec 202431 Dec 2023 The cost of funds on commercial deposits peaked in 4Q  2023 and 1Q 2024 whe n it reached 2.8%. Following cut s  to the key market rate by the CNB, and the subsequent  reduction in MONETA offered rates, the cost of funds  began to decline. For the full year 2024 it reached 2.2%.  Commercial Lending Portfolio The  commerc ial  loan  portfolio  comprised  CZK  92.8  billion  i n  gross  performing  loans  as  at  31 December  2024, up 10% year-on-year. The increase  was  mainly  driven  by  inves tment  loans  portfo lio  (up  10.8% year-on-year), the small business loan portf olio  (up  17.6%  year-on-year)  and  the  working  capital  portfolio (up 7.7% year-on-year).  GROSS PERFORMING COMMERCIAL LOAN PORTFOLIO (in CZK bn) 31 Dec 202431 Dec 2023 +10.0% 84.4 92.8 50 STRATEGY AND RESULTS Annual Financial Report 2024 2.3.3.1 Commercial Segment Strategic Priorities Delivery MONETA  focused  on  maintaining  and  further  developing  its  cap abilities  in  the  small  business  an d  agricultural  segments  whilst  continuing  its  targeted  approach to the SME segment. In parallel it continues  to  focus  on  digital  transformation  in  the  commercial  segment, with a particular focus on the small business  proposition. Key strategic priorities for commercial banking in 2024  were fully aligned with the overall strategy to become  a  leading  provider  of  services  to  small  businesses  and  SMEs  through  both  a  trul y  national  network  of  specialised  bankers  and  innovative  digital  servicing  channels.  The  five  key  prior ities  in  the  commercial  segment remain unchanged and are as follows: 1.  Further develop  small business  segment  financing  capabilities; 2.  Continue digital transformation for small businesses  and SMEs; 3.  Maint ain SME lending portfolio, optimise its capital  intensity and profitability; 4.  Maintain pr ofitable growth in MONETA Auto; and 5.  Develop  the  capability  to  provide  sustainable  financing to small businesses and SMEs.  1. Further Develop Small Business Segment Financing Capabilities MONETA has remained focused on becoming a market  leader  in  serving  small  business  clients  thro ugh  its  proprietary  service  model.  The  model  comprises  specialised  physical  distribution,  the  development  of  new  products  and  further  expansion  of  digital  distribution channels.  The number of dedicated small business bankers stood  at  138  as  at  31 Dec ember 2024. MONETA  intends  to  continue  its  focus  on  the  training  and  effectiveness  of  its  sales  force  so  as  to  further  increase  physical  distribution capacity and to leverage its strong digital presence,  thus  providin g  customers  with  a  cho ice  of  sales and service through either channel.   The  gross  perfor ming  small  business  loan  portfolio  reached  CZK  16.3  billion, up  17.6%  year-on-year.  The  increase  was  driven  by  a  key  small  business  product  –  an  inst alment  l oan.  The  total  gross  performing  balance  of  this  product  grew  by  21.9%  year-on- year  to  CZK  14.1  billion.  In  the  same  period,  the  gross  performing  portfolio  of  commercial  overdraft  loans  decreased  by  11.3%  year-on-year  to  CZK  1.6  billion,  and  the  gross  performing  portfolio  o f  unsecured  commerc ial  credit  cards  i ncreased  by  27.3%  year-on -year to CZK 0.6 billion.  GROSS PERFORMING SMALL BUSINESS LOAN PORTFOLIO (in CZK bn) 13.8 31 Dec 202431 Dec 2023 +17.6% 16.3 2. Continue Digital Transformation for Small Businesses and SMEs MONETA sees continuing its digital transformation for  commerc ial clients as pivotal for the further expansion  of its commercial distri bution capabilities as well as for  positioning MONETA fo r the future. In 2024, MONETA  continued  to  develo p  its  fully  digital  solutions  and  expanded the range of products offered fully online in  its  mobile  and  internet  banking  platforms.  The  share  of small busines s instalm e nt loans provided via online  channels increased from 35% in 2023 to 46% in the year  2024, driven  by an  optimised  online product  offering  together  with  continuous  o nli ne  marketing  support  and a focus o n effectivity. SHARE OF SMALL BUSINESS INSTALMENT LOANS ORIGINATED ONLINE 20242023 +11pp 35% 46% MONETA continued to digitise and automate processes  in  the  branch  network  and  focused  on  developing  the  ability  to  digitally  sign  contract s  that  originated  in  physical distribution.  In  the  small  business  lending  process,  a  pos si bility  to  sign  branch-originated  contracts  by  BankID  (digital  authe n tication)  was  added  to  the  signing processes in  the  Internet Banka  and  Smart  Banka  channels,  enabli ng  a  seamless  omnichannel  process.  In  the  SME  lending  process,  MONETA  introduced  the  possibility  to  digitally  sign  contracts  using  BankID  in  a  fully  integrated  solution  in  2023,  and  in  2024  MONETA  automated  digitally  signed  documentation  processing,  further  i ncreasing  effectivity of the process 3. Maintain SME Lending Portfolio, Optimise its Capital Intensity and Profitability MONETA  remains  focused  on  maintaining  an  SME  lending  portfolio  as  it  is  vital  to  deli vering  a  strong  commerc ial performance. The key focus is on portfolio  quality, capital deployment and profitability. 51 STRATEGY AND RESULTS Annual Financial Report 2024 Overall, the gross performing investment loan portfolio  increased by 10.8% year-on-year from CZK 45.2 billion  as  at  31  December  2023  to  CZK  50.1  billion  as  at  31 December 2024. Growth was supported by a stron g  performance in the agricultural segment and growth in  real estate secured lending. GROSS PERFORMING INVESTMENT LOAN PORTFOLIO (in CZK bn) 31 Dec 202431 Dec 2023 +10.8% 45.2 50.1 The gross performing working capital portfolio balance  grew by 7.7% year-on-year, reaching CZK 16.6 billion as  at 31 Decembe r 2024 compared to CZK 15.4 billion as  at 31 Dece mber 2023. GROSS PERFORMING WORKING CAPITAL PORTFOLIO (in CZK bn) 31 Dec 202431 Dec 2023 +7.7% 15.4 16.6 Throughout  2024,  MONETA  continued  optimisation  of the c apital deployed in SME lendi ng through credit  risk  mitiga ting  techniques ,  namely  through  collateral  management  (i.e.,  state  guarantees,  cash  collaterals,  cross-collater als), a new type of general pledge c ontract  that  allow s  mo re  effective  collateral  allocation,  and  other measures. 4. Maintain Profitable Growth in MONETA Auto All retail and commerc ial activities of MONETA Auto are  managed by the commerc ial division. Gross performing  MONETA Auto loans i ncreased by 10.9% year-on- year  from  CZK  10.2  b i llion  as  at  31  December  2023  to  CZK  11.3  billion  as  at  31  December  2024  (including  inventory financing). In the commercial segment, gross  performing  loans  increased  by  11.6%  year-on-year to  CZK 8.6 billion as at 31 December 2024, whilst in the  retail  segment,  gross  performing  loans  increased  by  9.0% to CZK 2.7 billion as at 31 December 2024.  GROSS PERFORMING MONETA AUTO LOAN PORTFOLIO (in CZK bn) +10.9% Retail  +9.0% YoY Commercial  +11.6% YoY 11.3 2.7 8.6 31 Dec 202431 Dec 2023 10.2 2.5 7.7 27   Source: https://portal. sda-cia.cz/stat.php?n#rok=2024&mesic=12&kat=OA&vyb=cel&upr=&obd=m&jine=false&lang=CZ&str=nova (Czech only). In  2024,  MONETA  Auto  focused  on  maintaining  the  profitability of its products, new volume delivery and  the  digitalization  of  internal  processes.  The  market  for  new  cars  continued  to  grow  by  4.6% 27 ,  while  the  used-car  market  remained  stable.  MONETA  Auto  increased  its  market  share  as  new  busin e ss  volume  originations grew by 11.3% year-on-year.  In the area of digitalisation, MONETA Auto conti nued  to focus on the development of new functions within  its  internal  systems,  the  implementation  of  legal  requirements and on paperless contract processes. The  share of di gitally (paperless) signed contracts reached  92% in full-year 2024. New regulatory requirements for the  online  insurance  model  and  the  implementation  of  electronic  ID  card  processes  were  successfully  implemented.  5. Develop the Capability to Provide Sustainable Financing to Small Businesses and SMEs In  2024  MONETA  secured  a  EUR  100  million  loan  from the European Investment Bank to support small  and  medium-sized  enterprises  in  the  Czech  Republi c.  This  loan  will  significantly  enhance  environmental  sustainability and competitiveness. Notably, MONETA  will double this amount, bringing the total investment  to EUR 200 million . At least 12% of the total funds will  be  allocated  to  climate  and  environmentally  posi tive  projects,  underscoring  MONETA’s  commitment  to  sustainable development.  Throughout 2024 MONETA continued to provide small  business loans secured by a portfolio guarantee under  the  Employment  and  Social  Innovation  programme  initiated  by  the  European  Investment  Fund  (EaSI),  as  well  as  via  its  first  sustainable  financing  product  for  commerc ial clients called “Green Expres Business”. The  main  goal  of  the  EaSI  programme  is  to  improve  acces s to financial resources for market-disadvantaged  entities .  Through  this  programme,  M ONETA  offers  more  favourabl e  lending  for  women  entrepreneurs,  self-employed peo ple and small companies affected by  the energy crisis. The  benefits include a lower interest  rate, the availability of a higher finan ced amount and  the possibility of deferring the first principal payment  by up to six months. “Green Expr es Business” is an unsecure d instalment loan  for  financing  energy-saving  and/or  environmentally  oriented projects of up to CZK 2.5 million. T he benefits  of the product include financing of up to 100% o f the  costs, loan maturity of up to 15 years, and no collateral  requirements. 52 STRATEGY AND RESULTS Annual Financial Report 2024 2.3.4 Treasury Segment Performance and Other The B ank offers curr e ncy trading services such as currency  spots, c urrency  swaps and forwards, to  its commercial  client s , especially from the SME segment. These trades  are intended for hedging clients’ curre ncy risks and their  average monthly volume in 2024 was CZ K 2.2 billion.  MONETA  also  has  a  trade  finance  desk  providing  other services to its comme rcial clients active in both  domestic and foreign trade. Its main areas of focus are  customers oper ating in the construc tion and industry  sectors. The offered products includ e bank guarantees,  letters of credit and docum e ntary collections. 2.4 GROUP FINANCIAL OVERVIEW 2.4.1 Statement of Financial Position Analysis MONETA  c ontinued  to  maintain  a  strong,  highly  liquid,  and  well-s ecured  balance  sheet,  which  at  31 December 2024 sto od at C ZK 495 billion. This is an  increase  of  8% year-on-year,  driven by deposit  base  expansion and th e MREL bo nd issue. 2.4.1.1 Total Assets TOTAL ASSETS 28 (in CZK bn) Cash and cash  balances at the  central bank Loans to banks Reverse repo  operati ons Net customer  loans Investment  securiti es Remaining assets 10.3 10.2 Figures in the chart ma y not add up to the total due to rounding diff erences. 31 Dec 2023 31 Dec 2024 10.9 66.7 263.1 458.2 104.4 2.9 13.5 75.4 275.4 495.0 116.7 3.8 +8.0% 28   Loans to banks excluding reverse repo operations with the CNB. Cash and Transactions with the Central Bank The  balance  of  cash  and  cash  at  the  central  bank,  including reverse  repo operations, incr eased by 14.6%  year-on -year  to  CZK  88.9  billion  as  at  31  December  2024.  Growth  was  mainly  observed  in  reverse  repo  operations  with  the  CNB,  which  increased  by  12.9%  year-on -year to CZK 75.4 billion. Investment Securities The  portfolio  o f  investment  securities  i ncreased  by  11.8%  year-on-year  to  CZK  116.7  billion  as  at  31 December 2024. This was driven by the strategy to  invest  part  of  the  incremental  liquidity  coming  from  the continuing expansion of the customer deposit base  into Czech  government  bonds. MONETA measures all  purchased bonds at amortised cost as Hold to Collect  (“HTC”) assets, in accor d ance with IFRS 9. Loans and Receivables to Customers The  overall  portfolio  of  ne t  customer  loans  and  receiv ables  increased  by  4.7%  year-on-year  to  CZK  275.4  billion  as  at  31 December  2024.  The  main  driver of the increase in net custome r loans were SME  loans, which grew by CZK 6 billion, or 8.6% year-on -year,  to C ZK 76.4 billion. NET LOANS AND RECEIVABLES TO CUSTOMERS BREAKDOWN (in CZK bn) 31 Dec 2023 31 Dec 2024 SME  +8.6% YoY Retail  +2.0% YoY +4.7% Small Business  +20.0% YoY 182.8 76.4 275.4 16.2 Figures in the chart may not add up to the total due to rounding diff erences. 179.2 70.3 263.1 13.5 MONETA’s  portfolio  of  net  customer  loans  is  mainly  denominated  in  CZK,  with  a  balance  of  CZK 260.6 billion as at 31 December 2024, or 94.6%  of  total  net  customer  loans.  Foreign  currency  loans  are only provided to MONETA’s SME clients. The EUR- denominated  portfolio  amounted  to  EUR  0.6  billion  (equivalent  to  CZK  14.8  billion)  as  at  31  December  2024.  MONETA  also  provides  commercial  l oans  53 STRATEGY AND RESULTS Annual Financial Report 2024 denominated in USD, the balance of which, however,  is not material. 2.4.1.2 Total Liabilities and Equity TOTAL LIABILITIES AND EQUITY (in CZK bn) 458.2 5.4 399.2 32.2 9.9 3.8 7.6 495.0 3.8 429.8 31.9 10.3 11.6 7.6 Figures in the chart may not add up to the total due to rounding diff erences. 31 Dec 2023 31 Dec 2024  Subordinated  liabiliti es Issued bonds Equity Customer  deposits Remaining  liabiliti es Due to banks and  repo operati ons +8.0% Customer Deposits MONETA’s customer deposits reported strong growth  in both the retail and commercial segments, and stood  at CZK 429.8 billion as at 31 December 2024, up 7.7%  compared  to  the  previous  year.  Deposits  from  retail  custome rs  grew  by  3.5%  to  CZK  324  billio n,  while  deposits  from  commerc ial  customer  increased  by  22.9% year-on-year to CZK 105.8 billion. CUSTOMER DEPOSITS (in CZK bn) +7.7% 324.0 31 Dec 202431 Dec 2023 429.8 Retail  +3.5% YoY Commercial  +22.9% YoY 105.8 313.2 399.2 86.1 Figures in the chart may not add up to the total due to rounding diff erences. The  recorded  growth  of  customer  deposits  further  reinforced MONETA’s self-funding capacity and its solid  liquidity position. The ratio of high-qu ality liquid assets  to  customer  d e posits  increased  to  43.5%,  providing  MONETA  w ith substantial capacity  to  further  expand  its loan portfolio. The loan to deposit ratio continued to decrease in 2024, reaching 64.1% as at 31 Decemb e r  2024, down from 65.9% on 31 December 2023. Issued Bonds and Subordinated Liabilities The  balance  of  issued  bonds  and  subordinated  liabilities  increased  from  CZK  11.4  billion  at  the  end  of  2023  to  CZK  19.2  billion  at  the  end  of  2024.  This  increase was driven by the issuance of EUR 300 million  of  MREL-eligible  senior  preferred  bonds,  which  further  strengthened  MONETA’s  c apital  p osition,  ensured  sufficient  capitalization  to  meet  regulatory  requirements, and provided capacity for future growth.  As at 31 December 2024, the carrying amount of issued  Tier 2 and senior unsecured bonds was CZK 16.3 billion.  The  total  amount  of  subordinated  deposits  on  the  same date was CZK 2.9 billion.  54 STRATEGY AND RESULTS Annual Financial Report 2024 Equity MONETA  maintained  a  strong  equity  position  of  CZK  31.9  billion  as  at  31  December  2024,  down  1%  year-on-year.  The  decrease  was  driven  by  the  retained  earnings  balanc e,  which  decreased  by  1.5%  year-on -year  to  CZK 21.6  b i llion. This  was due  to the  2023 dividend of CZK 4.6 billion paid in May 2024 and  the  extraordinary  dividend  of  CZK  1.5  billion  paid  in  December  2024,  and  was  partially  offset  by  the  net  profit of CZK 5.8 billio n generated in 2024.  EQUITY BREAKDOWN (in CZK bn) 31 Dec 2023 31 Dec 2024 Share capital Retained earnings (1.0)% Statutory reserve  and other reserves 21.6 10.2 31.9 0.1 21.9 10.2 32.2 0.1 2.4.2 Statement of Profit or Loss Analysis MONETA  generated  a  net  profit  of  CZK  5.8  billion  in  2024, an increase of 11.7% year-on-year. Thi s increase  was  achieved  through  higher  operating  income,  which  reached  CZK  12.9  billion,  a  stable  cost  base  of  CZK  5.7  billion,  and  a  favourabl e,  albeit  higher  year-on -year, cost of risk of CZK 0.4 billion. As a result,  the Return on Tangible Equity for 2024 reached 20.4%,  up 240bp s year-on-year. Total operating income amounted to CZK 12.9 billion in  2024, which represents an increase  o f 6.3% compared  to 2023, with increases  in net interes t  income and in  net fee and commission income. TOTAL OPERATING INCOME (in CZK m) 8,577 2,624 946 12,147 +6.3% 8,919 3,060 2024 2023 Net interest  income  +4.0% YoY Net fee and  commission income  +16.6% YoY Other income  (1.5)% YoY 932 12,911 29  Net interest m argin is calculated including (if applicable) opportunistic repo operations and encumbered assets and excluding h edging derivatives. Net Interest Income Net  interest  income  incr eased  by  4%  year-on-year  to  CZK  8.9  billion  in  2024.  Interest  inc ome  from  loans  increased  by  6%  to CZK 13. 2  billion,  thanks  to a  higher  portfolio yield of 4.9% in 2024 compared to 4.7% in 2023,  and to net loan portfolio growth of 4.7%. Interest expense  on customer deposits remaine d stable year-on-year and  was CZK 12.1 billi on despite customer depo sit growth of  7.7% year-on-year. The cost of funds on customer deposits  decreased  from 3.3% in 2023 to 2.9%  in 2024. Treasury  and other net interest income amounted to CZK 7.9 billion  in 2024, a slight decr ease from CZK 8.2 billion in 2023, due  to declining market interest rates.  Net  interest  margin 29   dropped  in  the  first  quarter  of  2024 to 1. 8% as a result of postponed deposit repricing  before gradually returning to 2% in the fourth quarter.  The  net interest margin for  the  full year was  1.9% in  2024 compared to 2.1%  i n 2023, reflecting the gradual  decline of market interest rates as well as the balance  sheet expansion.  NET INTEREST INCOME (in CZK m) AND MARGIN (in %) 8,577 12,451 8,209 8,919 7,864   13,199  Interest expense on  customer deposits  +0.5% YoY Interest income  on loans  +6.0% YoY 2.1% 1.9% Treasury and other  interest income  (4.2%) YoY Net interest  margin  (12 083) 20242023  (12 144) +4.0% 55 STRATEGY AND RESULTS Annual Financial Report 2024 Net Fee and Commission Income Net  fee  and  commission  income  increased  to  CZK  3.1  billion  in  2024  from  CZK  2.6  billion  in  2023.  The  increase  was  driven  by  higher  income  from  the  distribution  of  third-party  products  which  increased  by 27.2% year-on-year to CZK 2 billion mainly driven by  distribution of investment funds. Transactio n and other  fees increased by 5.6% year-on-year to CZK 0.8 billion.  Servicing fees remained stable at C ZK 0.6 billion in 2024  while penalty and earl y terminatio n fees increased by  14.8% to C ZK 0.3 billion. NET FEE AND COMMISSION INCOME (in CZK m)  (593)  (665) 3,060 2,624 +16.6% 20242023 Fee Expense  +12.1 YoY Fee income  +5.3 YoY Third-party  commission income  +27.2 YoY 1,763  1,674  1,962 1,543 Other Income Other income and net in come from financial opera tions  amounted to CZK 0.9 billion during 2024, remaining flat  year-on -year, as higher gains on bond sales and higher  client FX margins offset the negative impact of hedging  derivatives. Operating Expenses Operating expenses in 2024 remained flat year-on-year  at  CZK 5.7  billion.  Persistent inflationary  pressure  on  salaries  was  offset  by  savings  achieved  across  other  cost  cate gories.  Pers onnel  expenses  increased  by  6.4%  due  to  higher  variable  incenti ves  and  salary  inflation, partially offset by a 0.8%  reduction  in FTEs.  Administrative and other operating expenses decreased  by 4.1% year- on-year to CZK 1.6 billion in 2024 due to  lower  expenses  for  faci lities  and  ATMs.  Depreciation  and  amortisation  decreased  by  0.6%  year-on-year  and  amounted  to  CZK  1.2  billi on in  2024.  Regulatory  charges reached CZK 216 million in 2024, decreasing by 29.6% year-on-year due to lower contributions to the  Resolution Fund.  OPERATING EXPENSES (in CZK m) 307 2,504 1,686 1,233 216 5,722 2,664 1,617 1,225 Regulatory  charges  (29.6)% YoY Personnel  +6.4% YoY Admin & Other  operati ng  (4.1)% YoY Depreciati on  and amorti zati on  (0.6)% YoY (0.1)% 5,730 2023 2024 Cost of Risk In  2024,  MONETA  reported  a  cost  of  risk  (net   impairment  of  financial  assets)  in  the  amount  of  CZK  386  million,  or  14bps  of  the  average  net  loan  portfolio,  which  represents  an  increase  of  CZK 81 million compared to 2023. The cost of risk in  2024 was positively impacted by the goo d credit quality  of  the  portfolio,  the  gradual  release  of  management  overlays, and updated macroeconomic scenarios. The  cost of risk in 2024 was also supported by income from  NPL disposals of CZK 127 million. As at 31 December  2024, MO NETA maintained a management overlay in  the total amount of CZK 394 million to cover potential  anticipatory credit losses (compared to C ZK 643 million  as at 31 December 2023).  COST OF RISK (in CZK m) 386 +26.6% 370 15 Retail  Commercial 160 305 145 20242023 Figures in the chart may not add up to the total due to rounding diff erences. 59 CAPITAL AND LIQUIDITY Annual Financial Report 2024 3.  CAPITAL AND LIQUIDITY 1   Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No. 575/2013 as regards requirements for  cr edit risk, credit valua tion adjust ment risk, operational risk, market r isk and the output floor. 2   Directive  (EU)  2024/1619  of  the  European  Parliament  and  of the Counc il  o f  31  May  2024 amending  Directive  2013/36/EU  as regards supervisory  powers,  sanctions, third-country branches, and environmental, social and governance risks. 3.1 CAPITAL 3.1.1 Regulatory Framework As  the  Group ope rates only in the Czech market, the  Bank  is  subject  to  supervisi on  by  the  Czech  National  Bank.  The framework used for capital management involves  monitoring  and  complying  with  capital  adequacy  limits  in  accordance with  the  Basel III  rules codified  in  Regulation  (EU)  No.  575/2013  of  the  European  Parliament,  and  of  the  Council  of  26  June  2013  on  prud e ntial  requirements  for  credit  institutions  and  investment  firms  and  amending  Regulation  (EU)  No.  648/2012,  as  amended  (hereafter  “CRR”),  Directive  2013/36/EU  of  the  Europ ean  Parliament  and of the Council o f 26 June 2013 on access to the  activity  of  credit  institu tions  and  the  prudential  supervision  of  cr edit  institutions  and  investment  firms, amending Directive 2002/87/EC and repealing  Directives 2006/48/EC and 2006/49/EC,  as  amended  (hereafter  “CRD”),  and  Di rective  (EU)  2014/59  of  the  European  Parliame nt  and  of  the  Council  of  15  May 2014 establishing a framework for the rec overy  and  resolution  of  credit  institutions and  investment  firms,  as  amende d  (hereafter  “BRRD ”),  and  their  implementing  measures.  This  European  regulatory  framework  was significantly  revised in May 2024 by  the adoption of amendments to CRR (hereafter “CRR III”) 1  an d CRD (hereafter “CRD V I”) 2 effective from 1  January  2025.  According  to  the  p reliminary  impact  asses sment  of  CRR  III,  MONETA  estimates  that  the  risk-weighted  assets  will  decrease,  especially  in  the  credit risk category. Furthermore,  the  re gul atory  framework  within  the  Czech  legal  system  is  compri sed  mainly  of  Banking  Act  No.  21/1992  Coll.,  as  ame nded,  CNB  Decree  No.  163/2014  Coll.,  as  amended,  and  Act No. 374/2015 Coll., on recovery and resolutio n in  the fi nan cial market, as amended . MONETA  manages  i ts  capital  on  a  consolidated  and  an  individual  basis  in  order  to  meet  the  regulatory  capital adequacy  requi rements prescribed in Basel III  and codified in EU law and regulation, and to allow the  Group  to continue  its  operations  on  a  going-concern  basis  while  maximising  the  returns  for  shareholders  through the optimisation of its Debt-to-Equity Ratio.  The overall capital requirement on a consolidated basis  stood at  14.05% as  at  31 December 2024,  composed  of  the  Pillar  I  requirement  (8%),  Pillar  II  requirement  (2.3%  applicable  since  1  January  2024)  and  r equired  capital bu ffer s , which are app lied to the whole Czech  banking sector – cap ital conser vation buffer (2.5%) and  countercyclical buffer (1.25%). On an individual basis,  the  overall  capital  requirement  as  at  31  December  2024  stood  at  11.75%  for  the  Bank.  Since  1  January  2025  the  CNB  implemented  a  systemic risk  buffer  of  0.5%, applicable to the whole Czech banking sec tor. Pursuant to the ass e ssment of the Bank’s Materials for  the supervisory review and evaluation process (“SREP”)  submitted to the  CNB in  2024, the CNB  decreased  in  October  2024  the  Pillar  II  capital  require ment  on  a  consolidated  basis  to  the  level  2%  (compared  to  the  previous level of 2.3%) effective from 1 January 2025.  That  means  that  the  Bank’s  total  SREP  capital  ratio  requirement on a consolidated basis decreased to 10%  effecti ve from 1 January 2025.  60 CAPITAL AND LIQUIDITY Annual Financial Report 2024 TARGET FOR CAPITAL DEVELOPMENT ON A CONSOLIDATED BASIS 3 1 Jan 2023 31 Dec 2023 1 Jan 2024 31 Dec 2024 1 Jan 2025 Pillar I – CRR requirement 8.0% 8.0% 8.0% 8.0% 8.0% Pillar II – SREP requirement 2.6% 2.6% 2.3% 2.3% 2.0% CRR capital conservation buffer 2.5% 2.5% 2.5% 2.5% 2.5% CRR counter cycl ical buffer 2.0% 2.0% 2.0% 1.25% 1.25% Systemic risk buffer N/A N/A N/A N/A 0.5% Total regulatory requirement for capital 15.1% 15.1% 14.8% 14.05% 14.25% Management capital buffer 1.0% 1.0% 1.0% 1.0% 1.0% MANAGEMENT TARGET FOR CAPITAL 16.1% 16.1% 15.8% 15.05% 15.25% 3   Expect ed values are derived from the current values of the relevant indicators.  4   Accordin g to definit ion in the Recovery and Resolution Act. 5   Although Pillar II capi tal require ment was set only on a consolidated basis, its value w as used for setting of MREL r equirement on an individ ual basis. In  response  to  the  global  financial  crisis,  the  EU  introduced  a  new  pan-European  crisis  management  framework  in  the  financial  markets.  Part  of  th e  new  framework,  primarily  provided  for  in  BRRD,  is  the  requirement for EU-establi shed banks to maintain an  adequate amount o f own funds and eligible liabilities  to ensure that they have sufficient loss-absorbing an d  recapitalisation capacity to withstand future crises. As  a result, the Recovery and Resolution Act i mplementing  BRRD in the Czech Repub lic requires banks  established  in  th e  Czech  Republic  to  comply  with  the  Minimum  Requirement  for  Own  Funds  and  Eligible  Liabilities  (“MREL”). The CNB, through its independent Res olution  Department, was designated as the national resolution  authori ty, and, as such, is responsible for, among other  things,  s etting  the  MREL  requirement  specifically  fo r  each  bank  on  an  individual  and,  where  appropriate,  also on a co n solidated basis.  In  March  2024,  the  Bank  received  an  updated  MREL  specification fro m the CNB pursuant to whi ch it must  comply  with  the  MREL  requirement  on  an  individual  basis of 17.2% of its total risk exposure and 5.04% of  its total exposure effective from 26 March 2024. 4 The  MREL  requirement  is  calculated  as  a  sum  of  a  Loss  Absorption Amount (Pillar I capital requirement of 8% and Pillar II capital requirement of 2.3% 5   – values valid  as of the date of the initiation of the planning process  for  resolution)  and  a  Recapitalisation  Amount  se t  at  6.9%.  The  combined  buffer  requirement  (a  capital  conservation  buffer  of  2.5%  and  a  countercyclical  capital buffer of 1.25% – values valid as at 31 December  2024) is not t aken into account in the MREL calcul ation,  and the Bank mu st comply wi th it on top of the MREL  requirement.  On  top  of  the  MREL  requi rement  the  Bank  must  also  co mply  with the  systemic risk  buffer  requirement of 0. 5% established from 1 January 2025. In  February  2025,  the  Bank  received  an  updated  MREL  specif ication  from  the  CNB,  effective  from  21  February  2025.  The  specification  reduces  the  Bank’s Loss Absor ption Amount to 10% and increases  the Rec apitalisation  Amount to  7.1%.  The  total MREL  requirement  therefore  dec reases  fr om  17.2%  as  at  1 January 2025 to 17.1%. Above the MREL requirement,  the Bank must continue to meet the combined capital buffer requirement of 4.25%. The  Bank’s  management  decid ed  to  set  its  internal  capital adequacy target as one percentage point above  the overall capital requirement both on an indi vidual  and  consolidated  basis.  The  capital  adequacy  target  is  subject  to  an  ongoing  re-assessment  by  the  Management Board of the Bank b ased on the business  results, regulatory changes and development needs. 61 CAPITAL AND LIQUIDITY Annual Financial Report 2024 TARGET FOR CAPITAL AND ELIGIBLE LIABILITIES DEVELOPMENT ON AN INDIVIDUAL BASIS 6 (AS A SHARE OF THE TOTAL RISK EXPOSURE AMOUNT) 1 Jan 2023 31 Dec 2023 1 Jan 2024 31 Dec 2024 1 Jan 2025 28 Feb 2025 MREL requirement – Loss abso rptio n amount 10.4% 10.6% 10.6% 10.3% 10.3% 10.0% MREL requirement – Recapitalis ation amount 4.7% 6.6% 6.6% 6.9% 6.9% 7.1% Total MREL requirement 15.1% 17.2% 17.2% 17.2% 17.2% 17.1% CRR capital conservation buffer 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% CRR counter cycl ical buffer 2.0% 2.0% 2.0% 1.25% 1.25% 1.25% Systemic risk buffer N/A N/A N/A N/A 0.5% 0.5% Total regulatory requirement for capital and eligible liabilities 19.6% 21.7% 21.7% 20.95% 21.45% 21.35% Management capital buffer 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% MANAGEMENT TARGET FOR CAPITAL AND ELIGIBLE LIABILITIES 20.6% 22.7% 22.7% 21.95% 22.45% 22.35% REQUIREMENT FOR CAPITAL AND ELIGIBLE LIABILITIES DEVELOPMENT ON AN INDIVIDUAL BASIS 6 (AS A SHARE OF THE TOTAL EXPOSURE) 1 Jan 2023 31 Dec 2023 1 Jan 2024 31 Dec 2024 1 Jan 2025 28 Feb 2025 MREL requirement – Loss abso rptio n amount 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% MREL requirement – Recapitalis ation amount 1.40% 1.92% 1.92% 2.04% 2.04% 2.15% Total MREL requirement 4.40% 4.92% 4.92% 5.04% 5.04% 5.15% 6   Expect ed values are derived from the current values of the relevant indicators.  7   https://investors.moneta.cz/bonds. The  mortgage covered bonds were issued by the Bank in accordance with the requirements of Act No.190/2004 Coll., on  Bonds (the Bonds Act), as amended, and in particular as amended by Act No.96/2022 Coll., which transposed the requirements of Directive (EU) 2019/2162 of  the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public sup ervision and amending Directives  2009/65/EC and 2014/59/EU (Covered Bond s Directive) into the Bonds Act with effect from 29 May 2022. 3.1.2 Capital and Risk-Weighted Assets The  Group ’s  regulatory  capital  on  a  consolidated  basis primarily  consists of share capital and  retained  earnings,  that  is,  the  hi ghest  quality  CET  1  capit al,  and  issued Tier 2 capital. The Group incorporates into  CET 1 capital periodically (subject to permissions from the CNB) a portion of its quarterly net p rofit lowered  by expected dividend payments. The  Bank  uses  a  standardised  approach  to  calculate  the  regulatory  capital  requirement  for  credit  risk  and  operational  risk  on  both  an  individual  and  a  consolidated basis.   The  Bank  calculates  reg ul atory  cap ital  requirements  against  the  market  risk  of  the  trading  book.  As  at  31  December  2024,  the  capital  requirement  against  the market risk of the trading book was immaterial. In order to calculate the internal capital requirement,  the  Bank  applied  methods  similar  to  advanc ed  approaches according to regulatory Pillar I, both on an  individual and a consolidated basis.  3.1.3 Capital Management In  acc ordance  with  ap plicable  regulations,  the  Bank  manages  capital  on  a con solidated  basis  bo th  above  the level of the regulatory capital requirement and the  management capital target. On an individual basis, the  Bank manages capital above the level of both capital  and MREL regulatory requirements and management  targets for capital and MREL ratios. The  Bank has a bond issuance programm e  approved  by  th e  CNB  allowing  the  issuance  of  covered,  se nior  unsecured,  s e nior  preferred,  senior  n on-preferred,  subordinated  Tier  2  capital  and  mortgage-backed  bonds.  The  programme  was  updated  in  September  2023  to  enable  th e  issuance  of  mortgage-backed  bonds  particularly  in  compliance  with  regulations  concerning covered bonds from 2022. 7 The  overall  capital  position,  both  on  an  individual  and  consolidated  basis,  is  stre ngthened  by  issu ed  subordinated T ier 2 bonds, seni or preferred bonds and  subordinated deposits in the total carrying amount of CZK 19.2 billion as at 31 December 2024. 62 CAPITAL AND LIQUIDITY Annual Financial Report 2024 The Bank has s trengthened its MREL position through the subordinated deposit product for retail clients  o ffered  in June 2023. This deposit has a fixed maturity of five years, bears interest at a fixed rate of 7% and was only  available during a limited period from 1 to 23 June 2023. The total balance of subordinated deposits amounted to  CZK 2.9 billion as at 31 December 2024.  In September 2024 the Bank issued MREL-eligible seni or preferred bonds in the nominal value o f EUR 300 million  (the equivalent of CZK 7.6 billion as at 31 December 2024). The bonds were i ssued under the Bank’s approved bond  issuance programme and were placed mainly with international investo rs.  As at 31 December 2024, the Bank had issued the following bonds: Bond type /ISIN Issue date Currency Nominal (in m) Interest type Interest rate Call option Maturity date Moody’s rating Tier 2 CZ0003704918 25 Sep 2019 CZK 2,001 Fixed to float 5.65% p.a 8 . After 5  years 9 25 Sep 2029 Baa2 Tier 2 CZ0003705188 30 Jan 2020 CZK 2,601 Fixed to float 3.79% p.a. first five years After  5 years 30 Jan 2030 Baa2 Senior Unsecured  XS2435601443 10 3 Feb 2022 EUR 100 Fixed to float 1.625% p.a. first five years After  5 years 3 Feb 2028 A3 Senior Unsecured CZ0003707671 10 15 Dec 2022 CZK 1,500 Fixed 8% p.a. After 3  years 15 Dec 2026 n/a Senior Unsecured XS2898794982 10 11 Sep 2024 EUR 300 Fixed to float 4.414% p.a. first five years After  5 years 11 Sep 2030 A3 8   Effective 25 September 2024, in accordance with the bond prospectus, the interest rate was changed from a fixed rate of 3.30% p.a. for the first five years to a  floating rate calc ulated as 6-month PRIBOR plus a margin of 1.63%. 9   The first opportunity to exercise the call option after 5 years has expired. The call option can now be exercised each year on the anniversary date. 10   MREL eligible. REGULATORY CAPITAL AND CAPITAL RATIOS ON A CONSOLIDATED BASIS (in CZK bn) 31 Dec 2024 31 Dec 2023 Tier 1 regu latory cap ital  25.1 26.3 Tier 2 regu latory cap ital  6.6 7.2 Total regulatory capital 31.6 33.6 Risk-weighted assets 173.5 167.3 Capital adequacy ratio 18.25% 20.07% Management capital target 15.05% 16.10% Excess capital over management capital target 3.20% 3.97% Excess capital over management capital target 5.5 6.6 Tier 1 capital adequacy ratio 14.46% 15.74% Tier 1 management capital target 12.23% 13.20% Excess capital over Tier 1 management capital target 2.24% 2.54% Excess capital over Tier 1 management capital target 3.9 4.3 Figure s in the table may not add up to the to tal due to rounding differences. The  total  regulatory  capit al  on  a  consolidated  basis  decreased  from  CZK  33.6  billion  as  at  31  December  2023 to CZK 31.6 billion as at 31 December 2024 due  to the distribution of the extraordinary dividend in the total amount of CZK 1.5 billion in December 2024.  Overall,  the capital adequacy ratio  on a consolidated  basis  decreased  from  20.07%  as  at  31  Decemb e r  2023 to 18.25%  as  at 31 De cember 2024 as  a  result  of lower regulatory capital following the distribution of  the  dividend  and  higher  ri sk-weighted  assets.  The  increase in risk-weighted assets from CZK 167. 3 billion  as  at  31  December  2023  to  CZK  173.5  billion  as  at  31 December 2024 was driven by an increase in the net  loan portfolio following renewed demand for lending  products.   The  Tier  1  capital  adequacy  ratio  on  a  consolidated  basis  decreased  due  to  the  above-desc ribed  drivers  from 15.74% as at 31 December 2023 to 14.46% as at  31  December  2024.  MONETA  maintained  an  e xce ss  capital over the Ti e r 1 capital target in the amount of  CZK 3.9 billion as at 31 December 2024 (compared to  CZK 4.3 billion as at 31 December 2023).   63 CAPITAL AND LIQUIDITY Annual Financial Report 2024 REGULATORY CAPITAL AND ELIGIBLE LIABILITIES, CAPITAL AND MREL RATIOS ON AN INDIVIDUAL BASIS (in CZK bn) 31 Dec 2024 31 Dec 2023 Tier 1 regu latory cap ital  26.3 26.9 Tier 2 regu latory cap ital  6.6 7.2 Total regulatory capital 32.8 34.2 MREL instruments  12.5 4.2 Total regulatory capital and MREL instruments 45.4 38.4 Risk-weighted assets 168.1 159.8 Capital adequacy ratio 19.53% 21.40% MREL ratio 26.99% 24.05% MREL management target 21.95% 22.70% Excess over MREL management target 5.04% 1.35% Excess over MREL management target 8.5 2.2 Figures in the table may not add up to the total due to rounding differences. The total regulatory capital and eligible liabilities on an individual  basis  increased  from  CZ K  38.4  billion  as  at  31 December 2023 to CZK 45.4 billion as at 31 December 2024  as  a  result  of  the  issuance  of  MREL  eligible  bonds in the nominal amount of EUR 300 million (the  equivalent of CZK 7.6 billion as at 31 December 2024) in  September 2024. Overall,  the  capital  ade quacy  r atio  on  an  individual  basis  decreased  from  21.40%  as  at  31  December  2023  to  19.53%  as  at  31  December  2024  as  a  result  of  lower  regulatory  capital  following  the  distribution  of  the  dividend  and  higher  ri sk-weighted  assets.  The  increase in risk-weighted assets from CZ K 159.8 billion  as  at  31  Decemb e r  2023  to  CZK  168.1  billion  as  at  31 December 2024 was driven by an increase in the net  loan portfolio following renewed demand for lending  products. Overall,  the  MREL  ratio  increased  from  24.05%  as  at  31 December 2023 to 26.99% as at 31 December 2024 mainly as a result of issued MREL instruments, which  was partially offset by higher risk-weighted assets.  The  Bank  maintain ed  an  excess  over  the  MREL  management target in the  amount of CZK 8.5 billion as  at 31 December 2024 (compared to CZK 2.2 billion as at  31 Dece mber 2023).  Overall,  the  Bank  met  all  regulatory  requirements  regarding  capital  adequacy  o n  an  individual  and  a  consolidated basis. 3.1.4 The Internal Capital Adequacy Assessment Process (ICAAP) 3.1.4.1 Internal Capital Requirement on a One-Year Horizon The internal capital requirement repr esents the stock  of capital which is needed to cover unexpecte d losses  in the following  12 months  at  the  chosen confidence  level. To  deter mine  the  internal  capital  requirement  on  an  individual  and  consolidated  basis,  the  Bank  currently  uses  the  inter nal  economic  capital  (“ECAP”)  model.  This  model  covers  all  regular  risks  that  are  material  for the Group and which the Group decid ed to cover  by capital. The ECAP model is calibrated, and relevant risks  are  quantified  on  at  least  a  99.9%  conf idence  level. Other  risks,  which  are  not  covered  by  the  ECAP  model and are material to the Group in the following  planning  period,  are  identified  through  workshops  with  members  of  the  Bank’s  Management  Board,  selected  senior  managers  of  the  Bank  and  key  executive representatives of subsidiaries. The relevant  stress  s cenarios are built  on  the key material r isks as  identified  during  the  workshops  and  subsequently  discus sed  and  approved  by  the  ERMC  or  the  Bank’s  Management Board. Capital  sources  to  cover  the  internal  capital  requirement  are  the  same  as  the  capital  sources  to  cover the regulatory capital requirement. 3.1.4.2 Mid-term Capital Outlook and Stress Testing In  addition  to  the  assessment  of  the  internal  capital  requirement,  the  Bank annually  prepares  a  mid-term  forward-looking  business  plan,  which  summarises  the  proje cted  development  of  the  Group’s  balance  sheet and profit or loss statements. The business plan  includes  dividend  pay-outs  and  r etained  earnings  assumptions . The business plan is based on an expected  evolution  of  external  factors,  mainly  macroeconomic  development,  and  market  behaviour  obtained  from  generally respected sources (e.g., the CNB, Bloomberg or Ministry of Finance). Based  on  the  business  plan,  the  Bank  prepares  a  mid-term  cap ital  outlook  on  an  individual  and  consolidated  basis  with  the  as sessment  of  capital  adequacy  and  potential  actions  to  fulfil  the  capital  needs  for  business  growth.  The  capital  outlook  is  composed of the ou tlook of the regulatory requirement  on  capital  and  eligible  liabilities  as  well  as  inter nal  capital  requirements,  considering  profitability,  other  sources of capital and dividend pay-out assumptions. 64 CAPITAL AND LIQUIDITY Annual Financial Report 2024 The capital outlook is regularly stressed, with the main  stress  scenario  assuming  the  wor sening  of  the  most  significant  risk  factors  that  may  occur  ap proximately  once  in  a  25-year  period.  Other  potential  stress  scenarios  cover  material  identified  as  strategic  and  other risks. The capital outlook and the stress test are up d ate d with  a mid-year update of the business plan and on a yearly  basis,  reported  to  the  Czech  National  Bank  together  with the Internal Capital Adequacy Assessm e nt Proce ss  (ICAAP) report.  3.1.5 Recovery and Resolution The  2008–2009  financial  crisis  highlighted  the  importance of both financial institutions and regulators being  prepared  to  respond  effectively  to  unforeseen  severe  stress  events  and  the  disruptive  and  costly  nature of a disorderly failure of financial institutions.  As  part  of  the  subsequent  glo bal  regulatory  reforms  stipulated  in  BRRD  and  the  Recovery  and  Resolution  Act,  regulators  have  called  on  financial  institutions  to  improve recovery plans  for  restoring  their  capital,  liquidity  and  balance  sheet  positions  during  time s  of  severe  stress. In  addition, in  the  event  of  the  failure  of  these  recovery  p lans,  regulators  re quire  the  institutions to ensure they have capabilities to support  their resolution. 3.1.5.1 Recovery Plan Given  the  above  regulatory  requi rements,  the  Bank  also maintains a Group recovery plan whi ch describes  the readiness of th e Group to recover from  a situation  threatening  the  Group’s  existence.  This  includes  the  strategic  analysis  of  the  Gro up,  governance  and  responsibility process settings (including the escalation  process  and  communication  plan) and  a  set  of  three  stress scenarios p rovided for in the current regulatory  framework  (an  idiosyncratic  event,  a  system-wide  event and a combination of the two) with a proposal  of relevant measures to ensure the ability of the Group  to  respond  to  the  developing  situation  in  a  timel y  and prop e r  manner when nee ded. The recovery  plan  activation  is  triggered  by  a  combination  of  external  and/or  internal  events,  w hich  are  identified  through  monitoring  of  re covery  indicators.  The  recovery  indicators  cover,  among  others,  capital  adequacy,  liquidity adequacy,  profitabi lity, ass et quality, market  risk  and  macroeconomic  develop ment  and  are  regularly reported to ERMC. The Group’s recovery plan  is  updated  at  leas t  on  a  yearly  basis ,  and  significant  updates are submitted to the Czech Natio nal Bank. The Group manages systemic risk to which it is exposed  within the framework of the recovery pl an and internal  capital adequacy assessment process. 3.1.5.2 Readiness for Resolution In 2021, the CNB introduced its expectations regarding  banks’  resolvability  to  create  a  resolution  regime  that  ensures  banks  can  fail  in  an  orderly  way,  thus  reducin g risks to depositors, the financial system, and  public  finance.  The  CNB  continuously  updates,  alters  and clarifies these expectations. In January 2025, the  Bank  received  from  the  CNB  an  updated  summary  of  key  elements  of  the  resolution  plan,  specifying  the  preferred  resolution  strategy  for  the  Group  with  the  Bank  confirmed  as  the  only  point  of  entry  with  envisaged resolution tool implementation and with the  liquidation of other companies within the Group. To  r eflect  the  importance  of  resolvability,  the  Bank,  in  cooperation  with  external  advisors,  launched  an  internal  Resolution  Readiness  Implementation  Program  for  2023  aimed  to  e n sure  effective  coordination of the work to improve r esolvability and  to  enhance  the  capabilities,  dedicated  res ources  and  established arrangements to remove potential barriers  to resolution. In 2024, the Bank continued to develop  capacities required for resolution. To  ensure  the  resolvability  capabilities  c ontinue  to  be  enhanced  and  subje ct  to  effective  governance  in  business -as-usual operations, the Bank has developed  internal  policies  and  handbooks,  which  ensur e  the  maintenance of the Bank’s resolvability, and has bui lt  sufficient resolution capabilities that aim to:  •  Maintain  continuity  of  the  Bank’s  core  business  lines and critical functions; •  Minimise  the  impa ct  of  the  Bank’s  resolution  on  the  financial  system,  depositors,  clie nts,  and  counterparties; and  •  Avoid the de struction of the Bank’s value associated  with  a  disorderly  and/or  sudden  break-up  of  its  business. The  Bank  will  continue  to  develop  and  refine  its  capabili ties  in  line  with  upcoming  changes  to  regulatory  expectations  and  will  make  f urther  enhancements  and  improvements  to  its  resolution  readiness to meet the se expectations. 3.2 LIQUIDITY 3.2.1 Regulatory Framework Liquidity  risk  represents  the  risk  of  an  inability  to  meet  financial  liabilities  when  du e  or  to finance an  increase in assets.  The Basel III framework for liquidity risk measurement,  stan dards  and  monito ring  was  anch ored  into  the  EU  and Czech law by CRR and by implementing measures,  65 CAPITAL AND LIQUIDITY Annual Financial Report 2024 which  together  specify  the  Liquidi ty  Coverage  Ratio  (“LCR”)  and  the  Net  Stable  Funding  Ratio  (“NSFR”)  requirements. The LCR addr esses the liquidity risk o f banks over a  30-day period and aims to ensure that banks have a  sufficient buffer of high-quality li quid assets available  to  meet  their  short-term  liquidity  needs  in  a  given  stress scenar io. The minimum required level for LCR  is 100%. MONETA maintains LCR well in excess of the  requirement of 100 % and as at 31 December 2024, it  stood at 357.2% on a conso lidated basis (compared to  354.4% as at 31 December 2023).  The  Bank  forms,  together  with  the  Building  Saving s  Bank,  a  liquidity  sub-group,  which  allows  the  Bank  to  manage  liquidity  f reely  within the  liquidity  sub-group.  The  regulatory  requirement  for  LCR  is  applied  on  the  liquidity sub-group level and the consolidated level only.  The LCR for the liquidity sub-group  stood at 363% as at  31 Dece mber 2024 (366% as at 31 December 2023). The second liquidity ratio  intr oduced by the Basel III  framework is the NSFR, which establishes the criteria for a minimum amount of stable funding to support a bank’s assets and activities in the medium term (i.e. one year). The bindi ng minimum standards for NSFR  were introduced by the EU in CRR 2 and have been applicable  since  June  2021.  The  minimum  required  level is 100%, and the Bank maintains NSFR above the  regulatory  minimum  both  on  a  consoli d ate d  level,  which reached 180.9% as at 31 December 2024, and  on  the  liquidity  sub-group  level,  which  was  179.7%  for the same period (compared to 164.1% and 162.8%  respectively as at 31 December 2023). 3.2.2 Internal Liquidity Adequacy Assessment Process (ILAAP) The  concept  of  an  internal  liquidity  adequ acy  asses sment process (hereafter “ILAA P”) was introduced  by  the  European  Banking  Authority  Guidelines  on  common  procedures  and  methodologies  for  SREP  as  at  19  Dece mber 2014  (EBA/GL /2014/13),  as  amended.  Within ILAAP, the Bank assesse s annually the compone nts  that  constitute  the  liquidity  risk  mana gement  of  the  Group and submits an ILAAP report to the CNB. 3.2.3 Liquidity Position The  liquidity  positi on  at  the  Group  and  liquidi ty  sub-group level is managed solely by the Bank.   The Bank invests its free cash mostly in high-quality  and high-liquid financial instruments, such as Czech  government bonds. As at 31 December 2024, 57.5% of  total highly liquid assets were invested in securities,  with the remaining part held at the CNB and interbank deposits. Almost all of these securities were eligible to be placed as collateral for funding purp oses from  the CNB and other banks, as at 31 December 2024, no  securities were encumbered.  As  at  31  December  2024,  the  Group  reported  a  strong  liquidity  position  w ith  excess  liquidity  of  CZK 13 4.5 billion  (compared  to  CZK 114.7  billion  as  at 31 December 2023). The chart below sets out the  composition of the Group’s high-quality liquid as sets  in the amount of CZK 186.8 billion as at 31 December  2024 and its comparison with C ZK 159.8 billion as at  31 Dece mber 2023: BALANCE AND BREAKDOWN OF HIGH-QUALITY LIQUID ASSETS – HQLA (in CZK bn) 186.8 107.4 75.6 Cash and cash  equivalents  Loans and  receivables to the  CNB (including  reverse repo) 31 Dec 2023 31 Dec 2024 Government  bonds 3.8 +16.9% 159.8 91.0 65.6 3.2 The  volume  of  high-quality  liquid  assets  incr eased  during 2024 by CZK 27 billion, of which, 61% was invested  in government bonds, with the remaining part placed  with the CNB as reverse repo operations. As a result  of the purchases of Czech and European government  bonds, the balance of investment securities increased  to CZK 116.7 b i llion as at 31 December 2024. Almost  all of these investments were measured at amortised  costs  (except  for  CZK  67  million  of  investments  measured  at  FVTPL  or  FVTOCI).  The  increase  is  also  in  line  with  MONETA’s  investment  strategy  to  keep  up to 25% of total assets as an investment portfo lio.  The  average  durati on  of  the  investment  securities  port folio  before  interest  rate  hedging  measured  at  amortised costs was 5.6 years as at 31 December 2024,  as  the  Bank  predominantly  invests  in  longer-tenure  securities.  However,  65%  of  the  portfolio  is  hedged  through  interest  rate  derivatives  into  floating  rates,  which reduces the effective duration to 2.6 years. T he  average  yield,  including  hedging,  of  the  investment  securities portfolio measured at amortised costs stood  at 3.45% as at 31 Dec e mber 2024, which was 181bps  66 CAPITAL AND LIQUIDITY Annual Financial Report 2024 lower than in previous year due to the gradual decline  of the short interbank rate PRIBOR during 2024. 11 3.3 FUNDING The  Bank  is  fully  funded  from  its  customer  deposit  base.  MONETA’s  overall  funding  base  in  the  amount  of  CZK 452.4 billion 12 as at 31 December 2024 consists of customer deposits, deposits from other banks, issue d  bonds and subordinated liabilities. Customer deposits  provide  95%  of  MONETA’s  funding  and  reached  CZK  429.8  billion  as  at  31  December  2024.  Deposits  from other banks accounted for CZK 3.4 billion, or 0.8%  of total funding. The remainder of CZK 19.2 billion, or  4.2%, is represented by issued bonds and sub ordinated  liabilities.  In  terms  of  concentration,  the  custom e r  d e posits  are  not  concentrated  into  large  amount s ,  and  as  at  31 Dece mber 2024, the top 10 dep ositors accounted for  only 3.5% of the total amount. At the sam e time, 80.9%  of the Group’s customer deposits were “on-demand”  deposits (79.7 % as at 31 December 2023). Of the total  volume of customer deposits, 81.9% were covere d by  the Deposit Insurance Fund 13 .  In 2024, MONETA’s strategy focused on optimising the  cost of funding and the associated reduction of rates  offered  on  savings  and  term  deposits.  Nevertheless,  MONETA’s customer deposits grew at the same rate as  the overal market. The annual growth rate of the Czech  deposit  market  reached  7.6% 14   in  2024,  whereas  the  Group’s customer  d e posits grew by 7.7% in  the same  period.  As  at  31  December  2024,  MONETA  reported  a  loan  to  deposit  ratio  of  64.1%  compared  to  65.9%  as  at  31 December 2023. The Bank itse lf provides funding to  other companies within the Group. 11   The average yield excluding hedging stood at 3.4% as at 31 December 2024 , the same as in the previous year. 12   Excluding CZK 0.6 billion of funds received as collateral under Credit Support Annex (CSA). 13   Deposit Insurance Fund is a f und within the Financial Market Guarantee System established by Act No. 374/2015 Coll., on recovery and resolution in the f inancial  market, as amended, that p rotects depositors at banks. 14   Source: CNB ARAD. In September 2024, the liquidity position of MONETA  was  also  improved  by  the  issuance  of  MREL-eligible  senior preferred bonds of EUR 300 million (more detail s  are provided in sectio n 3.1.3). In 2023 the Bank issued internally he ld mortgage bonds  in accordance with its bond programme. These bonds are issued on MONETA’s own books and are intended  to provide an additional liquidity buffer if needed in the  future.  They  can  be  placed  as  collateral for  Lombard  or  repo  operations  with  the  CNB.  At  inception,  the  Bank  issued  such  bonds  in  the  nominal  amount  of  CZK 15 billion and has an option to increase the nominal amount of the bonds up to CZK 90 billion, which would  provide an additional source of liquidity in the amount  of  CZK  70  billion.  As  at 31 December 2024, the  Bank  held  on  its  books  such  mortgage  b onds  in  the  total  nominal value of CZK 15 billion.  FUNDING STRUCTURE (in CZK bn) 12 452.4 429.8 19.2 Due to banks  (29.5)% YoY Issued bonds  and subordinated  liabiliti es  +68.1% YoY 31 Dec 2023 31 Dec 2024 Customer  deposits  +7.7% YoY 3.4 +8.9% 415.5 399.2 11.4 4.9 69 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 4.  CORPORATE  GOVERNANCE  STATEMENT A separate part of the Annual Financial Report pursuant to Section 118 (4) and (5) of Act No. 256/2004 Coll.,  on conducting business in the capital markets, as amended. 4.1 ORGANISATIONAL CHART The rights of the Bank’s shareholders are, as set out in the chart below, exercised through: •  De cisions of the General Meeting of the Bank; and •  Participation of persons elected by the General Meeting in the Supervisory Board of the Bank. Shares of the Bank are traded on the Prague Stock Exchange. There is no majori ty shareholder. The  Bank  has  a  two-tier  corporate  governance  structure,  which  ensures  the  separation  of  the  executive  and  control functions. The Supervisory Board is an integral non-executive element of this structure and is responsible  for the oversight of the Bank’s operations and the Management Board activities, while also contributing to the  definition of the Bank’s strategic direction. Shareholders General Meeting External Audit Supervisory Board Committees Supervisory Board Management Board Management Board Committees Audit Committee Internal Audit The  Supervisory  Board  has,  among  other  things,  the  following powers: •  To  review  financial  statements  and  accounting  records; •  To  request  information  on  all  business  activities  and  inspect all  documents and  records  related  to  business activities of the Bank; and  •  To  convene  the  General  Meeting  of  the  Bank  if  required by law or if it i s in the Bank’s interest. The  Supervisory  Board  established  the  principle s  for  appointing  members  of  the  Management  Board  and  candidates  to  the  Supervisory  Board,  and  for  the  composition  and  performance  of  both  the  Management  and  S uperv isory  Boards.  These  key  principles  ensure  that  members  of  both  the  Management  and  Supervisory  Boards  are  individuals  with  suitabl e  professional  ex perience,  time  served  and  other  qualifications  so  that  both  bodies  have  a  balance  of  expert  qualifications  and  experience  and  that  the  composition  of  the  Management  Board  and  the Supervisory Board as a whole is diverse.  During 2024, the Supervisory B oard had nine members.  Until  2  September  2024,  it  was  composed  of  four  women and five men. Following the expiry  of the term  of  office  of  Mr.  Michal  Petrman  and  the  subs equent  co-option and election of Mrs. Zuzana Prokopcová as a  new member, the Superviso ry Board of the Bank is now  composed of five wom e n and four men. Six members  are elected by shareholders and thr ee are elected by  employees.  Until  9  September  2024,  the  Management  Board  consiste d of five me mbers, represented by one woman  and  four  men .  Mr.  Andrew  John  Gerber  was  elected  as  the  sixth  memb e r  of  the  Management  Board  on  10 September 2024 and the Board now consists of six members – one woman and five men.   70 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 Further  information  on  the  Bank’s  diversity  policies  is  available  in  Chapter  13  “Sustainability  Statement”,  which  is  prepared  in  line  with  the  Corporate  Sustainability  Reporting  Directive.  The  di versity  policy  ap plies  to  members  of  the  Supervisory  and  Management Boards. The  Management  Board is  the  second component of  the two-tier corporate governanc e structure. It is the  corp orate  body  that  manages  the  Bank ’s  business,  including  ensuring  the  proper  keepin g  of  the  Bank’s  books, prope r existence, the establishment, and timely  evaluation  of, management and contro l  systems,  and  that the Bank complie s with the law. 4.2 GENERAL MEETING Participation at the General Meeting The  General  Meeting  may  b e  attended  by  any person  who is registered, as at the record date, as a share holder,  shareholder’s proxy, administrator, or pe rson authorised  to exercise rights attached to the shares in the registry  of  book-entry  shares maintained  by  the  Czech  Central  Securities Depository. The record date  for participation  at the General Meeting is the seventh (7 th ) day prior to  the date of the respective General Meeting. Furthermore,  the  General  Meeting  is  attended  by  members of the Management Board, the Supervis ory  Board and the Audit Committee. Subject to approval by  the Management Board, the General Meeting may also  be  attended  by  individuals  who  can  reasonably  give  their opinion on agenda items of the General Meeting, including  the  Bank’s  external  auditors,  advisers  or  individuals  that  make  arrangements  for  the  General  Meeting. Procedure at the General Meeting The  Chairman  of  the  General  Meeting  shall  ensure  that  all  pro posals,  counterpr oposals,  and  requests  for  explanation  made  by  shareholders  are  presented  at  the  General  Meeting, provided that they  relate to  the agenda of the General Meeting. A shareholder may  request  and  shall  receive at  the  Ge neral  Meeting  an  explanation of matters related to th e Bank or entities  controlled by the Bank if such explanation is necess ary  to consider items on the agenda of the General Meeting  or  for  exercising  shareholder’s  rights  at  the  General  Meeting, unless it follows fro m the applicable law that  providing the explanation may be denied. Explanations  may be provided at the General Meeting as a summary  answer to multiple questions with similar contents . Exp l anati ons of matters related to the current General  Meeting are provided by the Bank to a shareholder at  the General Meeting. If this is not pos si ble du e to the  complexity  o f  the expl anation, the  Bank will  provide  the  ex planation  to  the  shareholder  within  15  days  after the date on which the General Meeting is held. Decision of the General Meeting The  G e neral  Meeting  constitutes  a  quo rum  if  the  present  shareh olders  hol d  shares  whose  aggregate  nominal  value  exceeds  50%  (fifty  per  cent)  of  the  Bank’s registered share capital. The  General  Meeting  makes  decisions  by  a  simpl e  majority  of  the  votes  of  the  shareholders  present,  unless a different majority is required by  l aw or by the  Articles of Association. The right to vote at the General  Meeting is linked with  the  Bank  share  and  each  Bank  share  with  a  no minal  value of CZK 20.00 carries one vote. A total of all votes  of  the  Bank’s  shareholders  is  511,000,000  (in  words:  five hundred and eleven million). 1.  Th e General Meeting is the highest corporate body  of the Bank.  2.  Th e General Meeting is auth orised to: a)  amend  the  Articles  of  Associatio n,  save  for  amendments  resulting  fr om  increasing  the  Bank’s  regi stered  share  capital  by  the  duly  authorised Management Board or amendments  resulting from other legal matters;  b)  decide on changes in the Bank’s registered share  capital;  c)  deci de on an  increase  in  the Bank’s  registered  share capital by in-kind contributions;  d)  authorise  the  Management  B oard  to  increase  the Bank’s re gistered share capital;  e)  approve  the  offs et  of  the  Bank’s  receivable  towards the B ank’s shareholder for payment of a  subscription pric e for the shares and the Bank’s  shareholder’s receivable against the Bank;  f)  decide  on  issuing  convertible  or  preference  bonds; g)  decide  on  restriction  or  limitation  of  the  shareholders’  pre-emptive  right  to  subscribe  for a pro rata portion of the new shares or the  preference  or  convertible  bonds  issued  by  the  Bank;  h)  elect  and  recall  member s  of  the  Supervisory  Board,  with  the  exce ption  of  members  of  the  Supervisory  Board  who  are  elected  by  the  Bank’s employees; i)  elect  and  recall  members  of  the  Audit  Committee; j)  approve service contracts with members of the  Supervisory  Board  and  the  Audit  Co mmittee,  and  fixed  and  variabl e  components  of  their  compensation;  k)  approve any compensation to members o f  the  Supervisory  Board  and  the  Audit  Co mmittee,  71 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 unless  such  comp e n sation  is  established  by  applicable laws, by a se rvice contract or by the  Bank’s internal rules;  l)  d ecide  that  the  amount  of  the  variable  component of  the compensation of a  member  of the Management Board may be higher than  the  amount  of  the  fixed  component  of  his/ her compensation, b ut not  higher than double  the amount of the fixed component of  his/her  compensation; m) approve contracts for settlement of loss caused  by a breach of the duty of due care by a member  of the Bank’s body;  n)  approve a distribution of profit or other resource  of the Bank or to co mpensate loss; o)  approve a distribution of the profit to a person  that is not a shareholde r o f the Bank;  p)  decide to unwind the Bank;  q)  approve  a  prop osed  distribution  of  the  Bank’s  liquidation balance;  r)  decide  to  apply  for  listing  or  delisting  of  the  Bank’s  securities  on  the  European  regulated  market;  s)  approve  a  transfer  or  a  pledge  of  the  Bank’s  undertaking  or  a  part  thereof  constituting  a  substantial  change  of  the  existing structure  of  the Bank’s undertaking or a substantial change  of the Bank’s scope of business;  t)  decide on a change of classes of the shares;  u)  decide  on  a  change  of  rights  attache d  to  individual classes of the shares;  v)  decide on a conversio n  of registered shares to  bearer shares and vice-versa;  w)  approve restrictions or limitations of the shares’  transferability;  x)  decide on a merger of two or more shares into  one share; y)  decide on splitting shares;  z)  decide  on  an  acquisition  of  the  Bank  treasury  shares; aa) approve  a  transfer  of  all  othe r  shareholders’  shares to the Bank’s sharehold e r that owns Bank  shares in the total nominal value corresponding  to at least  90% (ninety per cent) of  the  Bank’s  registered share capital created by shares w ith  voting rights and carrying  at  least 90% (ninety  per cent) of voting right s in the Bank;  bb) approve  a  transformation  of  the  Bank  in  compliance  with  Act  No.  125/2008  Coll.,  on  transformations o f companies and cooperatives,  as  amended  (hereafter  the  “Transformations  Act”); cc) approve  the  Bank’s  annual,  extraordinary  or  consolidated and,  if  required,  interim  financial  statements; dd) appoint  an  auditor  to  perform  the  statutory  audit; ee) approve principles for the Management Board, the Supervisory B oard or other Bank body, and  give  instruction s  to  the  Management  Board,  the  Supervisory  Board  or  other  Bank  bod y, all  subject to the terms set forth by applicable laws  and the Articles of Association; and  ff)  exercise all other powers vested to the General  Meeting by applicable laws or by the Articles of  Association. 3.  Th e  Gener al  Meeting  may  not  reserve  powers  which are not vested to it by ap plicable laws or by  the Articles of Assoc iation.  4.  Resolutions  under  Article  2  Lett.  a),  b),  d),  e),  f),  p), q), s) and y) above shall be passed at a General  Meeting  with  a  qualified  majority  of  at  least  two-thirds  (2/3)  of  the  votes  cast  at  a  General  Meeting. 5.  Resolutions  under  Article  2  Lett.  b)  and  s)  above  shall be passed at a General Meeting with a qualified majority of at least two-thirds (2/3) of the votes cas t  at  a  General  Meeti ng  by  the  Bank’s  shareholders  that hold each class of the shares, whose rights are  affected by such resolutions. 6.  Resolution  under  Article  2  Lett.  m)  above  shall  be  p assed  at  a  General  Meeting  with  a  qualified  majority of at least two-thirds (2/3) of the votes of  all Bank’s shareholders.  7.  Resoluti ons under Article 2 Lett. c), g) and o) above  shall be passed at a General Meeting:  a)  with  a  quali fied  majority  of  at  least  three- quarters  (3/4)  of  the  votes  cast  at  a  General  Meeting; and b)  in  ad dition,  w ith  a  qualified  major ity  of  at  least  three-quarters  (3/4)  of  the  votes  cast  at  a  General  Meeting  by  the  Bank’s  shareholder  that  h old  each  class  of  the  shares,  unless  the  respective  resolution  will  not  affect  any  right s  of the owners of these classes of shares.  8.  Resolution  unde r  Article  2  Lett.  r)  (only  as  for  delisti ng the Bank securities) above shall be passed  at a General Meetin g by a qualifie d majority of at  least  three-quarters  (3/4)  of  the  votes  cast  at  a  General  Meeting  by  the  Bank’s  shareholders  that  hold the classes of shares affe cted by this r esolution.  9.  Resolutions  under  Article  2  Le tt.  t),  u),  v)  and  w)  hereof shall be passed at a General Mee ting: a)  with a  quali fied majority of  at least  two-thirds  (2/3) of the votes cast at a General Meeting; and b)  in  ad dition,  w ith  a  qualified  major ity  of  at  least  three-quarters  (3/4)  of  the  votes  cast  at  a  Gene ral Meeting  by  the  Bank’s  shareholders  that hold the classes of shares affected by such  resolutions. 10. Resolution  under  Article  2  Le tt.  l)  above  shall  be  passed at a General Meeting with a quali fied majority  of at least three-quarters (3/4) of the votes cast at a  General M eeting (qualified majority of at least 66%  (sixty-six  per  cent)  of  the  votes  cast  at  a  General  Meeting  is  sufficient,  provided  that  shareholders  holding at leas t half o f the voting rights in the Bank  are present at a General Meeting).  72 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 11. Resolution  under  Article  2  Lett.  x)  above  shall  be  passed at a General Meeting:  a)  with a  quali fied majority of  at least  two-thirds  (2/3) of the votes cast at a General Meeting; and b)  in addition, by all shareholders of the company  whose shares are to be merged.  12. Resolution under Article 2 Lett. aa) above shall be  passed at a General Meeting by a qualified majority of at least 90% (ninety per cent) of the votes of all  shareholders in the Bank.  13. Resolution under Article 2 Lett. bb) above shall be  passed at a General Meeting by a qualified majority of at least three-quarters (3/4) of the votes cast at  a General Meeting by the Bank’s shareholders that  hold each class of share, however: a)  a  demerger of the Bank with an unequal shares  exchange  proportion  shall  be  approved  by  a  resoluti on  passed  at  a  General  Meeting  by  a  qualified  majority  of  at  least  90%  (ninety  per  cent) of the votes of all the Bank’s shareholders  that hold each class of share; and b)  a transfer of all the Bank’s assets to the Bank’s  shareholder  shall  be approved  by  a  resolution  passed  at  a  General  Me eting  by  a  qualified  majority of at least 90%  (ninety per cent) of the  votes of all shareholders in the Bank. Correspondence Voting at a General Meeting The  Bank  allows  correspondence  voting at  a General  Meeting. Thus, each shareholder has the right to vote  before the General Meeting under the conditions set  forth  by  the  Articles  o f  Association  and  applicable  laws. Correspond e nce voting is carried out through the  delivery of written correspon dence ballot cards. Corr e spondence  voting  is  allowed  subject  to  the  following conditions: a)  The  Management  B oard  shall  decide  on  the  possibi lity  of  correspondence  voting  b efore  a  specific General Meeting and st ate the conditions  of such voting in the notice of the General Meeting; b)  Th e shareholder shall exercise his/her voting r ight  through  c orrespondence  voting  within  the  period  of time spec ified by the Management Board in the  notice of the General Meeting; and c)  Correspondence  voting  meets  all  the  other  prerequisites set by the Articles of Association and  stated in th e notice of the General Meeting. Electronic Voting at the General Meeting The  Bank allows  for  electronic  voting  at  the  General  Meeting.  Thus ,  each  shareholder  has  a  right  to  vote  before the General Meeting under the conditions set  forth  by  the  Articles  o f  Association  and  applicable  laws.  Shareholders  cast  their  votes  electronically  via  the  system  of  the  Central  Securities  Deposi tory  Prague  and/or its memb e rs and  dependant registries  connected  to  such  system,  unless  the  Management  Board stipulates otherwise. Electronic  voting  is  allowed  subject  to  the  following  conditions: a)  The Management Board decides on the possibility  of  electronic  voting  before  the  specific  General  Meeting  and  states  or  refers to  the  conditions  of  such voting in the notice of the General Meeting; b)  Th e  shareholder  shall  exerc ise  his  or  her  voting  right by casting his or her vote electronically within  the period stipulated by the Management Board in  the notice of General Meeting; and c)  Electronic voting meets all the other prerequisites  set by the Articles of Association and stated in the  notice of the General Meeting. 4.3 SUPERVISORY BOARD 4.3.1 Position and Responsibilities of the Supervisory Board The Supervisory Boar d is the Bank body that oversees  the  Management B oard and  the Bank’s  activities,  as  well as informing the General Meetin g  on the results  thereof. The Supervisory Board shall decide on all  matters and  exercise  all  p owers,  rights  and  duties  vested  to  the  Supervisory Board by applicable  law or by the Articles  of  Association.  The  Supervisory  B oard  shall  among  others:  a)  review annual, extraordinary or consolid ate d  and,  if required, interim financial statements, proposals  for the distribution of profit or the compensation of  loss, and submit its opinion thereon to the General  Meeting;  b)  establish  the  Nominatio n  Committee,  the  Remuneration Committee and the Risk Committee  (hereafter  jointly  as  the  “Supervisory  Board  Committees”),  adopt  statutes  of  the  Supervisory  Board  Committees  and  have  discretion  to  set  up  any oth e r committees of the Supervisory Board and  adopt their statutes; c)  elect  and  recall  members  of  the  Management  Board, of the Supervisory Board Committees and of other committees of the Supervisory Board;  d)  approve  service  contracts  with  members  of  the  Management  Board,  the  fixed  component  of  their  compensation  and  the  variable  component  of  their  compensation set  forth, inter alia,  by the  Executive Variable Incenti ve Plan (“EVIP”) including  Long-Term  Incentive  Premium  Award,  up  to  the  amount corresponding  to  the fixed component of  their compensation;  73 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 e)  approve  any  compensation  to  members  of  the  Management  Board,  unless  a  member’s  compensation is established by applicable law,  by  a service contract or by the Bank’s internal rules;  f)  propose  to  the  General  Meeting  an  auditor  to  perform the statutory audit; g)  convene a General Meeting if required by applicable  law or by the Bank’s interests, an d propose to the  General Meeting appropriate measures to be taken; h)  designate  one  member  of  the  Supervisory  Board  who  shall  r e present  the  Bank  before  courts  or  other authorities in disputes with members of the  Management Board;  i)  review the affiliated parties report and submit its  opinion thereon to the General Meeting; j)  inspect  all  documents  and  records  related  to  the  activities of the Bank;  k)  examine whether th e Bank’s books and records are  kept pr operly, whether they comply with the true  current  state of  affairs  and  wheth e r  the  bu si ness  activities  o f the Bank are carried out in compliance  with applicable law and the Articles of Association;  and l)  exercise all other powers, rights and duties vested  to  the  Sup e rvis ory  Board  by  applicable  law,  including powers, rights and duties of a controlling  bod y under CNB regulation No. 163/2014 Coll., on  activities  of  banks,  saving  and  credit  unions  and  securities traders, as amended, or, as the case may  be, under any replace ment thereof (hereafter the  “CNB Decree No. 163/2014 Coll.”). The  Supe rvisory  Board  makes  decisio n s  by  a  simpl e  majority of votes cast at the meeting. The quorum for  a meeting of the Supervisory Board is a simple majority  of all its members. Members of the Supervisory Board  may participate in Supervisory Board  meetings through  telephone  o r  other technical  d evices. When necessary  in matters of urgency, a decision may be made by the  Supervisory Board without holding a meeting. In  accordance  with  the  Articles  of  Association,  meeting s  of  the  Supervisory  Board  are  called  by  the  Chairman of the  Supervisory  Board.  The Chairman of  the Supervisory Board is required to call the meeting  at the request of any me mber, or at the request of the  member of the Management Board responsible for risk  management. At i ts dis cretion, the Sup e rvis ory Board  may invite members of  other Bank  corporate bodies,  employees, or other persons to its meetings. The  Supervisory  Board  consists  of  nine  members.  Six  members  of  the  Supervisory  Board  are  elected  and  recalled  by  a  decision  of  the  Gene ral  Meeting.  Three  members  of  the  Supervisory  Board  are  e lected  and  recalled  by  employees  of  the  B ank.  O nly  curr e nt  employees of the Bank have the right to elect and recall  employee-elected  members  of  the  Supervisory  Board.  The election order of the Bank sets forth the method and  rules  for elections and  the  recalling  of memb e rs of  the  Supervisory Board elected by employees . The  majority  of  members  of  the  Supervisory  Board  elected by th e Gener al Meeting, including the Chairman  of  the  Supervi sory  Board,  must  be  independent.  For  purposes of the Articles of Association an indep e ndent  member of the Supervisory Board shall mean a member who is: a)  independent of the Bank’s management; b)  not an employee of the Bank or any of its affiliates; c)  not closely related to the Bank or its management  through signific ant economic, family or other ties;  and  d)  independent  of  the  Bank’s  controllin g  shareholder(s), if any. No  membe r  of  the  Supervisory  Board  may  be  a  member  of  the  Management  Board  or  the  Bank’s  procura holder (if any).  Members of the Supervisory Board serve a four-year  term and may be re-elected. Members  of  the  Supervisory  Board  elect  and  recall  the Chairman and Vice-Chairman of  the  Supervisory  Board  from  among  members  of  the  Supervisory  Board. The relationship b etween a m e mber of the Supervisory  Board and the Bank is governed by a service contract  conclu ded  between  the  Bank  and  the  respective  member  of  the  Supervisory  Board,  and  further  by  applicable law. The re are no service contracts between  the B ank and members of the Supervisory Board that  provide benefits upon termination of office. A member of the Supervisory Board may resign from  the Supervisory Board through a written notification  delivered  to  the  Superviso ry  Board,  or  through  a  written  notification  addr e ssed  to  the  Supervisory  Board  and delivered to  the Bank’s registered office.  A member of the Supervisory Board may also resign  through an oral declaration made at a meeting of the  Supervisory  Board  an d  record ed  i n  the  minutes.  A  member of the Supervisory Board may not resign at  an improper time for the Bank. A  memb e r’s  office  terminates  one  month  after  the  delivery  of  the  membe r’s  resignation  to  the  Supervisory Board or to the Bank’s registered off ice,  unless the Supervisory Board appr oves another date  at the resigning member’s request. If  the  number  of  Supervisory  Board  members  has  not  dropped  below  half,  it  may  appoint  substitute  members  until  the  next  meeting  of  the  company’s  bod y, which elects the members. 74 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 4.3.2 Members of the Supervisory Board As at 31 December 2024, the following persons were members of the Supervisory Board: Name Role Member position held from Member position held to Gabriel Eichler Chairman 26 October 2017  (Chairman since 2 August 2018) 20 Decembe r 2025 Miroslav Singer Vice-Chairman 24 April 2017  (Vice-Chairman since 22 May 2017) 28 April 2025 Clare Ronald Clarke Member 21 April 2016 19 November 2028 Denis Arthur Hall Member 21 April 2016 19 November 2028 Kateřina Jirásková Member 25 April 2023 25 April 2027 Zuzana Prokopcová Member 19 November 2024 19 November 2028 Klára Escobar Employee representative 7 May 2021 7 May 2025 Monika Kalivodová Employee representative 1 June 20 24 7 May 2025 Linda Kavanová Employee representative 1 August 2024 7 May 2025 The  terms  of  office  of  Mr.  Clare  Ronald  Clarke,  Mr. Michal Petrman and Mr. Denis Arthur Hall expired  on 2 September 2024. The Supervisory Board co-opted  Mrs. Zuzana Prokopcová (current member of the Audit  Committee of the Bank), Mr. Clare Ronald Clarke and Mr.  Denis Arthur Hall as m e mbers of the Supervisory Board  from 3 September 2024 until the next General Meeting,  which  took  place  on  19  November  2024  and  at  which  they were elected as members of the Supervisory Board  for the next four-year term with immediate effect. Following  the  r e signation  of  Mrs.  Zuzana  Filipová  from the Sup e rvis ory Board with  effect from 31 May  2024,  Mrs.  Monika  Kalivodová  was  co-opted  by  the  Supervisory Board as an employee  representative on  the Supervisory Board until new e lections for members  of  the  Supervisory  Board  elected  by  the  Bank ’ s  employees are held. Following  the  resignation  of  Mrs.  Jana  Výbošťoková  from  the  Supervisory  Board  with  effec t  from 31 July  2024,  Mrs.  Linda  Kavanová  was  co-opted  by  the  Supervisory  Board  as  an  employee  represe ntative  on  the  Supervisory Board  until the  new  elections for  members  of  the  Supervisory  Board  e lected  by  the  Bank ’ s employees are held. Except as stated below, no member of the Supervisory  Board  has  been  a  member  of  the  administrative,  management  or  supervisory  bodies,  or  a  partner,  of  any company or partnership other than the Bank at any  time in the previo us five years. GABRIEL EICHLER  is  an  independent  member  and  Chairman of the Supervisory Board of MONETA Money  Bank.  Mr.  Eichler  studied  econo mics  and  international  relations,  and  has  de grees  from  Brandeis  University,  The  University  of  Chicago,  and  the  University  of  Toronto. He began his  international bankin g  career  at Bank  of  America,  where  he  spent  15  years  (1975–1990),  half  of  it  at  the  bank’s  headquarters  in  th e  US  (his  last  position was Chief International Economist) and half as  regional General Manager  o f Bank of America in Paris,  Vienna  and  Frankfurt. After leaving Bank  of  America,  Mr.  Eichler  spent  a  year  as  a  partner  and  Executive  Vice-President (EVP) in a US private equity group.  From 1994 to 1998, Mr. Eichler w as Vic e-Chairman of the  Management Board and, until th e end of 1996, CFO of  ČEZ. In 19 98–2001, he was Chairman of the Management  Board,  President & CEO of Východoslovenské železiarne  (VSŽ). Mr. Eichler also acted as the Vice-Chairman of the  Supervisory  Board of  Československá  obchodní  banka,  and  as  a  member  of  the  Supervisory  Bo ards  of  Česká  pojišťovna and Slovenská spori te ľňa.  Until  September  2016,  Mr.  Eichler  was  the  Vice- Chairman (earlier Executive Chairman) of the AVG  Techn ologies  Supervisory  Board.  Mr.  Eichler  helped  bring AVG Technologies, as the first Central European  company, to the N ew York Stock Exchange (NYSE). He  was also a member of the Board of Ness Technologies  (a company traded on the NASDAQ sto ck exchange). Apart from his position as Chairman of the Supervisory  Board of MONETA Money Bank, he is the founder and a  director of Benson Oak spol. s r.o., originally a boutique  investment bank, later a pr ivate equity group, that he  founded in August 1991. Currently, he is also Chairman  of  the Board of  Trustees of  the  Vaclav  Havel Librar y,  Chairman o f the Board of Trustees of the International  Sch ool of Prague and a member of the Advisory Council  at the Division of S ocial Sciences of the University of  Chicago. The current service contract between Mr. Eichler and the  Bank was entered into o n 20 December 2021 per approval  of the General Meeting with effect fro m 26 October 2021  and will terminate upon the termination of his office. 75 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 MIROSLAV SINGER  is  an  independent  member  and  Vice- Chairman  of  the  Supervi sory  Boar d  of  MONETA  Money Bank. Mr.  Singer  graduated  from  the  Prague  University  of  Economics  and  Busi ness,  where  he  obtained  an  engineering  degree  in  econometrics  and  operations  research. He also holds a doctoral degr ee in econo mics,  majoring  in  econometrics  and  labour,  f rom  the  University of Pittsburgh. Mr. Singer served for six years (from July 2010  to June  2016) as the Governor and prior to that for five years  (from February 2005 to June 2010) as the Vice-Governor  of the Czech National Bank.  He also  has broad  experience  from having served on  a  number  of  boards.  Mr.  Singer  served  from  1994  until  1996  at  the  Centre  for  Economic  Research  and  Doctoral  Studies  at  Charles  Uni versity,  within  the  Economic Ins titute of the Academy of Sciences of the  Czech Republic, where he was the Deputy Director for Research. Between  1995 an d 19 96, Mr. Singer worked  as a member of the S uperv isory Board and the Board  of Directors of Česká poji šťovna a.s. He subsequently  joined  Expandia  Group,  where  he  served  as  Chief  Economist and a member of the Supervisory Bo ard of  Expandia Bank and later as CEO and Chairman of the  management boards of the Expandia Gr oup indus trial  companies.  From  2001 to 20 05, he was  a  Director  of  Business  Restructuring  Services  at  th e  international  consulting  firm  PwC.  In  2019,  Mr.  Singer  also  served  as  a  member  of  the  Supervisory  B oard  of  ADRIATIC  Slovenica.  The  company  merged  with  Generali  zavarovalnica d.  d.  Slovenia  i n  2019. Until  its  merger  with Generali Če ská pojišťovna in 2022, he also served  as  Chairman  of  the  Supervisory  Board  of  Generali  Poisťovňa, a.s. (Board membership sin ce 2018). Apart  from  his  position  as  Vice-Chairman  of  the  Supervisory  Board  of  MONETA  Mon ey  Bank,  h e  currently ser ves as Chairman of the Supe rvisory Board  of  Generali  Česká  pojišťovna  a.s.  (since  May  2017),  as  a  member  of  the  Supervisory  Board  of  G e nerali  zavarovalnica  d.d.  Slovenia,  and  as  Dir ector  for  Institutional  Affairs  and  Chief  Economist  in  Generali  CEE  Holding  B.V.  (since  January  2017),  in  which  he  also  became  a  member  of  the  Executive  Committe e  on 1 January 2018. He has also been a member of the  European  Securities  and  Markets  Authority  (ESMA)  Stakeholder Group since June 2024. The  curre nt  service  contract  between  Mr.  Sin ger  and the Bank  was  entered into on 28 April 2021 per  approval  of  the  General  Meeting  with  effec t  f rom  24 April 2021, and will terminate upon the termination  of his office. CLARE RONALD CLARKE is an independent member of  the Supervisory Board of MONETA Money Bank. Mr. Clarke hol ds an  Associate degree from Dalhousie  University. He worked as a Human Resources Manager at  Pfizer  and  Warner-Lambert  Canada.  He  joined  Cesky  Te lecom/Eurotel,  subsequently  acquired  by  Telefónica, fulfilling HR Business Partner and Head of  HR  roles  through  2010  for  the  rebranded  O2  Czech  Republic business. He subsequently became the Head  of Learning & D evelopment for O2 Europe, rep orting to  the Director of Human Resourc e s at the Europ e region  level.  Mr.  Clarke  was  responsible  for  Commercial  &  Techni cal  Learning  across  five  country  regions.  He  designed  and  implemented  Telefónica’s  European  Region Commercial/Technical Learning & Development  Organisation. He  has  been  Chairman  of  the  Nomination  an d  Remuneration  Committees  (advisory  bodies)  of  the  Supervisory Board of the Bank since 2016 and, through  his  professional  capability,  initiative  and  transparent  approach, has been instrumental in the  development  of  policy,  practice  and  governance  in  both these  key  areas of the Bank.  Apart from his position as a member of the Supervisory  Board  of  MO NETA  M oney  Bank,  he  currently  holds  the  position  of  the  sole  member  and  director  of  ReDefine s.r.o. The current service  contract be tween Mr. Clarke and  the Bank  was  entered into on  2  September 2020 per  approval  of  the  General  Meeting  with  effect  fr om  1 July 2020, and will terminate upon the  ter mination  of his office. DENIS ARTHUR HALL is an independent member of the  Supervisory Board of MONETA M oney Bank. Mr. Hall previously held senior executive positions as  Chief  Risk  Officer  at  C itibank  (1985–20 01),  Deutsche  Bank  (2001–2007)  and  GE  Capital  International  (2007–2016). From 2008 to November 2016, he worked  as a Supervisory Board member and Chairman of the  Risk Committee at BPH Bank SA, and fr om November  2013 to March 2017 as a non-executive Board member  of  Hyundai  Capital  Cards.  From  2012  to  June  2015,  he  worked  as  a  member  of  the  Superviso ry  Board  of  Budapes t  Bank  Zrt,  and  from  October  2013  to  December 2016 as the non-executive Chairman of the  Board  of  UK  Home  Lending  Ltd.  From  2013  to  April  2022 he was a me mber of the Supervisory Board and  Audit and Risk Committee of Cembra Money Bank AG,  Switzerland, a bank listed on the SIX Swiss Exchange. Apart from his position as a member of the Supervisory  Board  and  the  Audit  Committee  of  MONETA  Money  Bank, Mr. Hall has hel d, since March 2017, the position  76 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 of a non-executive Board member and Chairman of the  Risk Committee of the Skipton Building Society in the UK .  Since November 2020, Mr. Hall has also been Chairman  of the Audit and Risk Committee and a non-executive Board  member  of  Auxmoney  Europe  Holding  Ltd,  a  consumer  finan ce  company  based  in  Irelan d .  Since  August 2022, he has been a member of the Supervisory  Board of Aareal Bank AG, an International Commercial  Real Estate Bank based in Wiesbaden, Germany, and is currently Chair of its Audit Committee and also sits on  its Risk and Technology committees.  The  c urrent  service  contract  between  Mr.  Hall  (as  a  member of the Supervisory Board) and the Bank was  entered i nto on 2 September 2020 per approval of the  General Meeting with effect from 1 July 2020, and will  terminate upon the termination of hi s o ffice. KATEŘINA JIRÁSKOVÁ is  an  independent  member  of  the Supervisory Board of MONETA Money Bank. After  graduating  from  the  Prague  University  of  Economics  and  Business,  she  worked  as  a  securities  trader at Cons eq and, in 2000, joined PPF Group as a  port folio  manager.  For  eight  years  she  managed  PPF  Asset  Management  (from  2008  Generali  PPF  Asset  Management),  where she  was  responsible for  one of  the largest inves tment portfolios in Central and Eastern  Europe.  At the same time, she was responsible for the  investment  performance  of  27  Generali  PPF  holding  companies in 14 countries with assets o f EUR 15 billion.  In 2013, she became CFO and COO of PPF Group. Apart from her positi on as a member of the Supervisory  Board  and  the  Audit  Committee  of  MONETA  Money  Bank,  Mrs.  Jirásková  has  b een,  since  January  2013,  the CFO  of PPF Group.  Since June 2021,  she  has also  served as a member of the Management Board of PPF Financial  Holdings a.s.  She  is  also  Chair  of  the  Board  of Trustees of  the  foundation Nadace PPF, a membe r  of  the  Management  Board  of  Tanemo  a.s.  and  Chair  of the Supervisory Board of PPF Art a.s. Additionally,  she  serves  as  Chair  of  the  Management  Board  of  PPF a.s. and  Moranda,  a.s.  and  holds  the  position of  Chair  of  the  Supe rvis ory  Board  of  PPF  Gate  a.s.  and  PPF Advisory (CR) a.s.  The  current  service  contract  between  Mrs.  Jirásková  (as a member of the Supervisory Board) and th e Bank  was entered into on 25 April 2023 per approval of the  General  Meeting with effect fr om 25  A pril 2023, and  will terminate upon the terminatio n o f her office. ZUZANA PROKOPCOVÁ is an indepen dent member of  the Supervisory Board of MONETA Money Bank. Zuzana  Prokopcová  graduated  from  the  Pr ague  University  of  Economics  and  Business,  Faculty  of  Finance and Accounting. She has extensive experience  as an auditor in an i nternational advisory company and  in  the  management  of  large  comp anies.  She  b egan  her professi onal career at the international consulting  company  Pricewaterh ouseCoopers  (PwC)  in  1998,  where  she  served  as  an  auditor  until  2014,  focusing  mainly on finan cial institutions. She was recommended  for  her  knowledge  of  financial  repo rting  and  IFRS;  she  is  also  a  certified  member  of  the  A ssociation  of  Chartered Certified A ccountants (ACCA). Between  2014  and  2016  sh e  served  as  Vice-Chair  of  the Management Board and CFO of Czech Aeroholding,  the  leading  aviation  c ompany  in  the  Czech  Republic,  where  she  was  responsible  for  treasury,  accounting,  tax,  controlling,  internal  au dit  and  risk  mana gement  areas.  She  also  he ld  the  position  of  the  Chair  of  the  Supervisory Board of Czech Airlines Handling, a.s., Czech  Airlines  Technics, a.s., Realitní  developerská,  a.s., Sky  Venture a.s., Whitelines Industries a.s., and B. aircraft, a.s. Since April 2020, she has also been a member of  the  Audit  Commit tee  of  Wüstenrot  hypoteční  banka  a.s., which was dissolved by the merger with  MONETA  Money  Bank  in  January  2021.  From  November  2020  until November 2024, she served as Vice-Chair of the Supervisory Commission of Council o f Czech Television,  and until January 2023 she was also a member of the  Audit Committee of PPF Financial Holdin gs, a.s.  Apart  from  her  position  as  a  member  of  the  Supervisory Board and  Chair of the Audit  Committee  of  MO NETA  Money  Bank,  Mrs .  Prokopcová  currently  also serves as Chair of the Audit Committee o f Kofola  ČeskoSlovensko  a.s.  Since  April  2020,  she  has  also  been  a memb e r  of  th e  Audit  Committee of  MONETA  Stavební Spořitelna of whi ch she has been Chair since  November  2024.  Since  2021,  she  has  also  been  a  member  of  the Supervisory Board (which also  serves  as  the  Audi t  Committee)  of  PPF  Gr oup  N.V.  In  April  2021, she b ecame a member of the Bo ard of Trustees  of  the  foundation  Nadace  MONETA  Clementia  an d  in  September 2022 she was elected its Vice-Chair. The  current  service  contract  between  Mrs.  Zuzana  Prokopcová  (as  a  member  of  the  Supervisory  Board)  and the Bank was entered into on 3 September 2024, and will terminate upon the termination of her office. KLÁRA ESCOBAR is a member of the Supervisory Board  of MONETA Money Bank representing employees. Klára  E scobar  is  a  graduate  of  the  Faculty  of  Arts  of  Palacký Uni versity  in Olomou c, majoring i n  Soc iolog y  and  Andragogy  with  a  focus  on  Human  Resources.  She has been working in the field of human reso urces  management for over 19 years. She started her career  in recruitment and gradually p rogressed to senior roles  in Human Resources.  77 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 She  has  been  i n  the  banking sector since  2010 when  she joined the original GE Money Bank as HR Business  Partner. In October 2016, she became HR Director at  Cetelem  and  was  instrumental  in  its  transformation  into  the  new  digital  bank  Hello  bank!  She  returned  to  MONETA  Money  Bank  in  January  2020  as  Human  Resources Dir ector.  From  June  2020  until  September  2023,  she  was  a  member  of  the  Management  Board  of  MONETA  Stavební Spořitelna, and until its m e rger with the Bank  in January 2021, she also served as a member of the  Management Board of Wüstenrot hypoteční banka a.s.  From  May  2023 to  January  2024,  she  was  a member  of  the  Supervisory  Board  of  the  foundation  Nadace  MONETA Clementia.   Apart from her positi on as a member of the Supervisory  Board  elected  by  employees,  she  currently  serves  as  a member of the Board of Trustees of the foundation  Nadace MONETA Cleme ntia. The employment contract between Klára Escobar and  the Bank was entered into with e ffect from 1 January  2020 for an indefinite period. MONIKA KALIVODOVÁ has b een co-opted as a member  of the Supervisory Board representing employees.  Monika  Kalivodová  is  a  graduate  of  the  Czec h  University  of  Life  Sciences  Prague.  Before  joining  MONETA Money  Bank, sh e  worked in the corporations  Santander Co n sum e r, GE Capital and then Internatio nal  Personal  Finance.  Her  area  of  expertise  is  credi t  and  operational  risk  management  in  the  credit  sector.  She  joined MONETA Money Bank in 2020, and she now holds  the position of Senior Manager Collections. Apart from her positi on as a member of the Supervisory  Board  elected  by  employees,  she  currently  serves  as  Chair of the Board o f Trustees of the foundation Na dace  MONETA Clementia.  The employment contract between Monika Kalivodová  and the Bank was entered into with effect fr om 18 May  2020 for an indefinite period. LINDA KAVANOVÁ  has been co-opted as a member of  the Supervisory Board r e presenting employees. Linda Kavanová is a graduate of the Faculty of Business  Administration of the Prague University of Economics  and  Business.  She  has  b een  working  in  the  financial  sector for more than 15 years.  1   Memb er of the Supervisory Board since 3 Sept ember 2 024. 2   Memb er of the Supervisory Board since 1 June 2024. 3   Memb er of the Supervisory Board since 1 August 2024. Before  joining  MONETA  M oney  Bank,  she  worked  as  a  Country  Controller  in  a  foreign  insurance  company and before that, i n the finance division of a  telecommunications  company.  She  joined  MONETA  Money  Bank  (previously  GE  Money  Bank)  in  2009  as  Chief  Accountant  and  subsequently  held  several  positions within  the  Finance  D ivision.  She  now  holds  the position of Head of Investor Relations. Apart from her positi on as a member of the Supervisory  Board  elected  by  employees,  she  currently  serves  as  a member of the Board of Trustees of the foundation  Nadace MONETA Clementia. On 1 November 2024, she  was appointed  by  the Supervisory Board of MONETA  Stavební  Spořitelna  as  Chief  Executive  Officer  and  a  member  o f  the  Management  Board  of  MONETA  Stavební Spořitelna and subsequentl y, on 1 3 November  2024, she was elected as its Chair.  The  employment  contr act  between  Linda  Kavanová  and  the  Bank  was  entered  into  with  effect  from  15 September 2009 fo r an i ndefinite period. 4.3.3 Activity Report of the Supervisory Board In 2024, the Supervisory Board held five regular and  one extraordinary meeting and adopted six decisions outside the meeting through per rollam voting. Overview  of  the  Supervisory  Bo ard  meetings  attendance: Member of the Supervisory Board The Supervisory Board meetings attended in 2024 Gabriel Eichler 100% Miroslav Singer 100% Clare Ronald Clarke 100% Denis Arthur Hall 83% Kateřina Jirásková 83% Zuzana Prokopcová 1  100% Klára Escobar 83% Monika Kalivodová 2  100% Linda Kavanová 3  100% The  Supervisory  Board  reviewed  the  Bank’s  separate  and  consolidated  financial  statem ents  as  at  31 December 2023 prepared under IFRS and audited by the external auditor, the audit firm Deloitte Audit s.r.o.  The Supervisory Board recommended that the General  Meeting held on 23 April 2024 appr ove these financial  statements. 78 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 The Supervisory Board also reviewed the Management  Board’s proposal for the distribution of pro fit after tax  for the financial year 2023 in the form of a dividend in  the amount of CZK 9 per share, and recommended it to the General Meeting for approval.  Upon  recommendation  o f  the  Audit  Committee,  the  Supervisory  Board  made  a  proposal  at  the  Gener al  Meeting  held  on  23  April  2024  to  appoint  Deloit te  Audit s.r.o. as an auditor to conduct the statutory audit  of the Bank for the financial year 2024. During 2024, the Supervisory Board was continuously  informed  of  the  Bank’s  activities  and  regularly  presented wi th reports and analyses. The Supervisory  Board  assessed,  in  particular,  the  functionality  and  efficiency  of  the  Bank’s  internal  control  systems,  conclu di ng  that  the  internal  control  systems  are  functional  and  effective.  Moreover,  it  examined  the  2023 annual assessment report on the Bank’s s ystem  for anti-money laundering and preventing the financing  of  terrorism,  including  a  related  risk assessment  and  the annual compliance management report. The Supervisory Board regularly disc ussed the Bank’s  quarterly financial results and its position on the market  in  line  with  developments  in  the  macroeconomic  environment. Furthermore, it discussed the actions of  the Internal Audit team and their results in individual  periods of the year, changes in the audit plan for 2024, as well as the internal audit plan for 2025. In  the  course  of  its  activities,  the  Supervisory  Board  continued to rely on the opinion of its Risk, Nomination  and  Remuneration  Committees  and  was  informed  of  the issues dis cussed by the Audit Committee.  In September 2024, the Supervis ory Board appointed,  upon  the  recommendation  of  its  Nomination  Committee, a new, sixth, member  o f the Management  Board, Mr. Andrew John Gerber. In October 2024, the Supervis ory Board reviewed the  Management  Board’s  proposal  for  the  distribution  of an extraordi nary dividend of CZK 3 pe r share from  retained earnings of previous years, and recommended  it  for  approval  at  the  General  Meeting  held  on  19 November 2024. Other  acti vities  o f  the  Supervisory  Board  in  relati on  to the 2024 Financial Statements and Annual Financial Report are described i n the Report of the Supervisory  Board in Chapter 6 “Opinion of the Supervisory Board”  and in the “Letter from the Chairman of the Supervisory  Board”. The  Supervisory  Board  discussed  the  remuneration  of  the  members  of  the  Management  Board  and  recommended  bonus  amounts  for  the  performance  year  2023,  the  payment  of  which  is  subject  to  the  principles of the deferred bonus scheme. The  opinion  of  the  Supervisory  Board  (i)  on  the  consolidated  and  separate  financial  stateme nts  for  the  year  ende d  31  D ecember  2024  and  (ii)  on  the  proposal of the Management Board on the distribution  of the profit after tax for the year 2024 to the Bank’s  shareholders is available in Chapter 6 “Opinion of the  Supervisory Board”. 4.4 AUDIT COMMITTEE The Audit Committee is a separate body of the Bank  and  consists  of  three  member s.  The  composition  of  the  Audit  Committee  and  qualification  of  its  members complies with the requirements set forth by  Act No. 93/2009 Coll., on auditors and o n other acts,  as amended (hereafter the “Ac t on Auditors“), and the  members  of  the  Audit  C ommittee  also  comp ly  with  the same  eligibility  qualification s  as members of the  Supervisory Board. The Audit Committee is empowered to:  a)  monitor  the  effectiveness  of  the  Bank’s  internal  control and risk management system; b)  monitor  the  effectiveness  of  the  Bank’s  internal  audit and its functional independence;  c)  monitor  the  process  of  compiling  the  Bank’s  consolidated  and  non-consolidated  financial  statements,  and  submi t  recommendations  to  ensure the integrity of the accounting and financial  reporting systems to the Management Board or to the Supervisory Board; d)  recommend  an  auditor  to  the  Supervisory  Board  whereas  such  recommendation  shall  be  duly  reasoned,  unless  provided  otherwise  by  directly  applicable law of the  European  Union on specific  requirements  regarding  the  statutory  audit  of  public-interest entities; e)  evaluate  the  independence of  the  Bank’s  auditor  and  the  provision  of  non-audit  services  by  that  auditor; f)  discuss with the Bank ’s auditor threats to his/her  independence and the safeguards applied by that  auditor to mitigate those threats; g)  monitor the process of the statutory audit; h)  opine on the termination of obligation arising from  the  agreement  on  performance  of  the  statutory  audit  or  the  withdrawal  from  the  agreement  on  performance  of  the  statutory  audit,  pursuant  to  Section 17a sub. 1 of Act on Auditors; i)  evaluate whether  the  Bank’s auditor  engagement  shall be subject to an enga gement quality control  review  by  anothe r  auditor  pursuant  to  Article  4  sub.  3  first  subsection  of  Regulation  (EU)  No.  537/2014  of  the  European  Parliament  and  of  the  79 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 Council of 16 April 2014 o n specific requirements  regarding  the  statutory  audit  of  public-interest  entities,  as  amended  (hereafter  ”EU  Regulati on  No. 537/2014“); j)  inform the Supervisory Board of the outcome of the  statutory  audi t  and its findings discovered within  monitoring the process of the statutory audit; k)  inform  the  Supervisory  Board  how  the  statutory  audit contributed to the integrity of the accounting and financial reporting systems; l)  decide whether the statutory audit shall be further  carried  out  by  the  Bank’s  au ditor  pursuant  to  Article 4 sub. 3 second subsection of EU Regulation  No. 537/2014; m) approve the provision of other non -audit services; n)  approve  a  report  on  the  outcome  of  sel ection  procedure in the selection procedure pursuant to  Article 16 of EU Regulation No. 537/2014; o)  be  entitled  to  inspect  documents  and  records  related to the activiti e s of the Bank to the extent  required for the execution of its activities; p)  receive  and  discuss  with  the  Bank’s  auditor  information,  declarations  and  notifications  as  required by appli cable laws;  q)  provide other bodies of the Bank with information  on  matters  within  the  Audit  Committee’s  competences; r)  prepare  a  report  on  its  activities,  evaluating  its  activities  in  relation  to  the  activities  specified  in Section 44a sub. 1  of the Act on Auditors, and  provide this report to the Council for public audit  supervision; and s)  exercise all other powers , rights and duties vested  to the Audit Committee by applicable laws. The  Audit  Committee  makes  decisions  by  a  simple  majority of votes cast at the meeting. The quorum for  a meeting of the Audit  Commit tee is a simple majority  of all its members. The Audit Committee has discretion  to invite to its meetings members of the Bank’s other  corp orate bodies, employees, o r other persons. 4.4.1 Members of the Audit Committee As at 31 December 2024,  the following person s were  members of the Audit Committee: Name Role Zuzana Prokopcová Chair of the Committee Denis Arthur Hall Member of the Commi ttee Kateřina Jirásková Member of the Committee Due to the expiration of the terms of office of Mr. Michal  Petrman and Mr. Denis Arthur Hall, the Audit Committee  co-opted Mr s. Kateřina Jirásková, a current membe r of  the  Supervisory  Board,  and  Mr.  Denis  Arthur  Hall  as  members effective from 3 September 2024. At the same  time, Mrs. Zuzana Prokopcová was elected as the new  Chair  of  the  Audit  Committee.  The  General  Meeting,  which  was  held  on  19  November  2024,  elected  both  Mr.  Hall  and  Mrs.  Jirásková  as  members  of  the  Audit  Committee for a four-year term with immediate effect. Members  of  the  Audit  Commit te e  serve  four-year  terms and may be re-elected. The  relationship  between  a  member  of  the  Audit  Committee  and  the  Bank  is  governe d  by  a  service  contract  a greed  upon  between  the  Bank  and  the  respective  member  of  the  Audit  Committe e  and  further  by  applicable  laws.  There  ar e  no  service  contracts between the Bank and members of the Audit  Committee that provide benefits upon termination of  their office or employment. Information about ZUZANA PROKOPCOVÁ is available  in  th e  section  “Supervisory  Board”.  The  service  contract between Zuzana Prokopcová (as a member of  the Audit Committee) and the Bank was entered into  on  20  Decembe r  2021  and  will  terminate  upon  the  termination of her off ice. Information  about  DENIS ARTHUR HALL  is  available  in  th e  section  “Supervisory  Board”.  The  service  contract  between  Denis  Arthur  Hall  (as  a  member  of  the  Audit  Committee)  and  the  Bank  was  entered  into on 26 October 2017 and will terminate upon the  termination of his office. Information  about  KATEŘINA JIRÁSKOVÁ  is  availab le  in  th e  section  “Supervisory  Board”.  The  service  contract between Kateřina Jirásková (as a member of  the Audit Committee) and the Bank was entered into  on  3  September  2024  and  will  terminate  upon  the  termination of her off ice. Except  as  s tated  ab ove,  none  of  the  members  of  the  Audit  Committee  has  been  a  member  of  the  administrative,  management  or  supervisory  bodies  or  partner  of  any  company  other  than  the  Bank  or  partnership at any time in the previou s five years. 4.4.2 Activity Report of the Audit Committee In 2024, the Audit Committee held five meetings and  adopted  two  decisions  out side  the  meeting  through  per rollam voting.  The Audit Committee is responsible for conducting all  its duties in accordance wi th the relevant law. Until  2 September 2024,  the  main areas  of  responsibility  were split as follows: Mr. Petrman was responsible for  the internal and external audit, Mrs. Prokopcov á was  responsible for the financial reporting and controls,  Mr. Hall was responsible for risk management. From 3  September 2024, following the end of Mr. Peterman’s term of office and the appointment of Mrs. Jirásková  80 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 as a new member,  th e  responsibilities  were  split as  follows: Mrs.  Prokopcová, as  Chair,  was responsible  for  the  internal  and  external  audit,  Mrs.  Jirásková  was responsible for financial reporting and controls, and Mr. Hall’s responsibility remained unchanged for  risk management.  During  2024,  all  five  meetings  were  attended  by  all  respective member s o f the Audit Committee. The Audit Co mmittee’s activities primarily focused on  the following five major areas: I. Internal Control System, Compliance and Risk Management Matters The Audit Commit te e discussed internal controls with  the  Chief  Finance  Officer,  Chief  Risk  Officer  and  the  Director of Comp liance, in particular around financial  reporting, risk and compliance matters. Any significant  changes and/or issues relating to th e se matters were  on  the  agenda  of  the  Audit  Committee.  Th e  Audit  Committee  also  reviewed  the  Annual  Report  on  the  Evaluation  of  the  Functionality  and  Efficiency  of  the  Internal  Control  System  prepared  by  the  Internal  Audit. The Audit Committee continues to oversee the  effecti ven e ss of internal controls and risk management,  with a focus on financial reporting. II. Preparation of Annual Financial Statements The Audit Committee reviewed and assessed processes  and  c ontrols  relating  to  financial  reporting  and,  in  particular,  to  the  preparatio n  o f  the  Bank’s  annual  separate  and  consolidated  financial  statements.  The  review  of  the  annual  financial  statements  included  inquiries  regarding  changes  to  accounting  policies,  significant  ac counting  estimates,  compliance  with  accounting  stan dards  and  major  trends  in  f i nancial  results.  Based on the above and the oversight of external audit  activities (see below), the Audit C ommittee concluded  that  the  annual  separate  and  consolidated  f inancial  statements  for  the  year  ended  31  December  2023  were pre pared in accordance with applicable laws and  accounting standards. III. Selection of the External Statutory Auditor and Approval of Non-Audit Services Provided by the Statutory Auditor Based  upon  the  proposal  of  the  Supervisory  Board  and  the  recomme ndation  of  the  Audit  Committee,  the Gen e ral Meeting held on 23 April 2024 appointed  the  audit  firm  Deloitte  Audit  s.r.o.  (“Deloitte”)  as  an  auditor to con duct the statutor y audit of the Bank for  the fi nan cial year 2024.  In 2024, the Audit Committe e reviewed and approved  all requests for the p e rformance of non-audit services  by Deloitte. In its review, the Audit Committee focused  on  any  potential  threats  to  the  statutory  auditor’s  independence. IV. Oversight of Internal Audit Activities The  Audit  C ommittee  approved  the  internal  audit  plan  and  any  changes  in  the  plan  during  the  year.  A summary of key internal audit findings and remedial  action  plans  were  regularly  presented  to  the  Audit  Committee. Implement ation of the 2024 internal audit  plans was regularly monitored by the Audit Committee.  In December 2024, the  Audit Committee approved the  2025 internal audit plan.  The  Audit  Committee  did  not  identify  any  material  deficiencies  with  respect  to  the  functioning  and  independence of the Bank’s internal audit function in  2024. V. Oversight of External Audit Activities The  Audit  Committee  als o  monitored  the  p rocess  of  the statutory audit of the B ank’s annual separate and  consolidated financial statements  for the  year  ended  31 December 2023, which were conduc te d by Deloitte. The  Audit Committee  discussed  the audit  report  and  the  process  of  the  annual  statutory  audit  including  unadjusted  audit  differences  and  other  matters  as  specified in the agenda with the external auditor.  The  Audit  Committee  reviewed  and  acknowledged  Deloitte’s 2023 audit report where Deloitte concluded  that,  in  their  opinion,  the  consolidated  and  separate  finan cial  statements  give  a  true  and  fair  view  of  the  finan cial  position  of  the  Group  and  the  B ank  as  at  31 December 2023 and of its financial performance and  its  cash flows for the  year  then  ended in  accordance  with IFRS. The Audit Committee also received and reviewed the  Additional  Report  to  the  Audit  Committee  for  2023  from Deloitte as the statutory auditor as required by EU  Regulation  No.  537/2014  of  the  European  Parliament  and the Council. The  Audit  Committee  was  satisfied  with  assuring  the  auditor’s  independence  and  with  the  scope  and  execution o f the statutory audit. The  statutory  audit  contributed  to  the  integrity  of  financial  reporting  primarily  by  challenging  the  assumptions used by management in the p reparation  of  the  financial  statements.  The  Audit  Committee  confirms  the appropriate  risk  focus  of  the  auditor  in  the 2024 audit. 81 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 The Audit Committee informed the  Supervisory Board  of the outcome of the 2023 statutory audit, the Audit  Committee’s observations and the contribution of the  statutory audit to the integrity of the Bank’s accounting  and financial reporting system. VI. Conclusion In  conclusion,  the  Audit  Commi ttee  states  that  it  has  fulfilled  all  it s  responsib i lities  as  set  forth  by  applicable  Czech  and  EU  law,  the  Bank’s  Articles  of  Association,  the  Bank’s  internal  rules  and  policies  and,  where  relevant,  prov ided  its  recommendations  to  the  Bank’s  Superv isory  Board.  Within  the  scope  of  its  responsibiliti e s ,  the  Audit  Committee  did  not  identify any substantial facts relating to the Bank and  its activities of which the General M eeting should be  informed. 4.5 MANAGEMENT BOARD 4.5.1 Management, Responsibilities and Structure of the Management Board The  Management  Board is the co rporate body which  manages the Bank’s business. The Management Board  is  charged  with  business  management,  including  ensuring the pr oper keeping of the Bank’s books. The  Management  Board  further  guarantees  the  proper  set-up,  running  existence  and  timely  evaluation  of  the management and control system, and ensures the  Bank is comp liant with the law. The  Management  Board  is  responsible  for  the  continuous  functioning  and  effectiveness  of  the  management  and  control  system,  and  creates  conditions  for  the  indepe ndent  and  objecti ve  performance  of  complianc e  rel ate d  operations  and  of the internal audit. The Mana gement Board ensures  the  establishment,  maintenance  and  implementation  of  the  management  and  control  system  to  ensure  the  adequacy  of  information  and  communication  in  conducting  the  Bank’s  operation s.  Th e  Management  Board  shall  de cide  upon  all  matters  concerning  the  Bank unl e ss they are  assigned to the General Mee ting,  the Supervisory Bo ard or the Audit Co mmittee by law  or by the Articles of Assoc iation. The  Management  Board  consists  of  six  members  (individuals)  who  comply  with  the  law  for  servin g  as  a  member  of  the  Bank’s  Management  Board.  They  are  ele cted  for  a  four-year  term  by  a  majori ty  of  all  Supervisory  Board  members  at  the  recommendation  of  the  Nomination  Committee.  The  Nomination  Committee  ensures  the  trus tworthiness,  adequate  professional  qualifications,  and  experience  of  the  members of the Management Board. The professional  qualifications, trustworthiness, and experience of the  members  of  the  Bank’s  Management  Board  are  also  asses sed by the Czech National Bank. 4.5.2 Duties and Responsibilities of the Management Board under Czech Law The  Management  Board is responsib le for  the Bank’s  management  and  conducts  the  business  activities  of  the Bank. The Management Board represents the Bank  in all matters.  The  Management  Board  shall  decide  on  all  the  Bank’s  matters,  save  for  matter s  reserved  for  other  Bank’s bodies by applicable laws or by the Articles of  Association. The Management Board shall, inter alia: a)  ensure  proper  maintenance  of  th e  Bank’s  book-keeping;  b)  decide  on  an  inc rease  in  the  registered  share  capital, provided that the Management Board has  been duly au thorised by the General Meeting;  c)  deci de  on  establishing  and  dissolving  the  Bank’s  funds  and  reserves,  on  the  rules  relating  to  such  funds and reserves and on the use of resources from  such  fun ds  and  reserves,  unless  stated  otherwise  by applicable laws;  d)  have  discre tion  to  set  up  any  committees  and  other bodies of the Management Board (hereafter the “Management Board Bodies”) and adopt their  statutes;  e)  elect  and  recall  members  of  the  Management  Board Bodies;  f)  exercise rights of the Bank as a shareholder in the  Bank’s subsidiaries;  g)  exercise employer’s rights;  h)  convene  a  General  M eeting  and  implem e nt  its  resoluti ons;  i)  prepare  and  submit  to  the  General  Meeting  the  following documents:  i.  annual,  extraordinary  or  con solidated  and,  if  required, interim financial statements;  ii.  p roposals  for  the  distribution  of  profit  or  for  the compensation of loss; iii.  affiliated parties re port;  iv.  report on the Bank’s business and its assets;  v.  summary report pursuant to Section 118 sub. 9  of the Czech Capital Markets Act;  vi.  proposals to amend the Articles of Association;  vii.  proposals to i ncrease or decr ease the regis tered  share capital;  viii. pr oposals  to  issue  preference  or  convertible  bonds;  ix.  othe r  documents  and  proposals,  if  required  by  applic able  laws  or  by  the  Articles  of  Association;   j)  approve and issue the election order setting forth  the method and rules for elections and  recalling of  members of the Supervisory Board elected by the  Bank’s employees; 82 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 k)  organise  elections  and  recalling  of  members  o f  the  S uperv isory  Board  elected  by  the  Bank’s  employees; l)  exercise all other powers , rights and duties vested  to  the  Management  Board  by  applicable  laws,  including power s , rights and duties o f a managing  bod y under CNB Decree No. 163/2014 Coll. The Management Board informs the Supervisory Board  on the following matters:  a)  approval  or  modification  of  the  Bank’s  strategy,  business  plan,  annual  budget  and/or  organisation  rules;  b)  the issue o r modification of any material terms or  approval of pre-payment of any bonds or any other  debt securities (other than deposit taking), unless: i.  the  issue  of  bonds  is  reserved  by  applicable  laws for the General Meeting; and  ii.  the issue or modification of any material  terms  or  approval  of  pre-payment  of  any  bonds  or  any  other  debt  securities  are  included  in  the  approved  Bank’s  business  plan  and/or  annual  budget; c)  entering  into  or  modification  of  any  material  terms  of  any  agreements  c oncerning  loan,  credit,  guarantee  or  any  other  instruments  i ncurring  to  the Bank financial indebtedness (other than deposit  taking)  in  the  aggr egate  nominal  value  in  excess  of  5%  (five  per  cent)  of  th e  Bank’s  consolidated  equity  as  recorded  in  the  latest  available  consolidated quarterly financial statements of the  Bank  (hereafter  the  “Equity”),  unless  inclu ded  in  the  approved  Bank’s  business  plan  and/or  annual  budget; d)  entering into or modification of any material terms  of  any loan,  credit  or  guarantee  agreements with  persons  with  a  special  relationship  to  the  Bank  pursuant  to  Act  No.  21/1992  Coll.,  on  b anks,  as  amended (hereafter the “Act on Banks”);  e)  entering into or modif ication of any material ter ms  of any agreements concerning loans, credit or any  other financial products with the Bank’s receivables  in  the  aggregate  nominal  value  in  excess  of  5%  (five  per  cent)  of  the  Equity,  unless  included  in  the  approved  Bank’s  business  plan  and/or  annual  budget; f)  approval  of  any  c orporate  transformation  of  the  Bank,  unless  approval  of  such  corp orate  transformation  is  reserved  by  applicable  l aws  for  the General Meeting;  g)  the  establishment,  corporate  transformation,  dissolution  or  liquidation  of,  o r  acquisition,  disposition  or  encumbrance  of  any  ownership  interest  in,  or  increase  in  the  registered  share  capital  of  any  Bank  subsidiary,  unless  included  in  the  Bank’s  approved  business  plan  and/or  annual  budget; h)  approval  or  modification  or  cancellation  of  any  investment with th e acquisition value in excess of  5% (f ive per cent .) of the Equity, unless included in  the  Bank’s  approved  business  plan  and/or  annual  budget; i)  disposition  of  any  non-perfo rming  loan,  credit  or  other  financial  produ ct  receivables  with  the  aggregate  book  value  in  exc ess  of  5%  (five  per  cent.) of  the Equity,  unless included  in the  Bank’s  approved business plan and/or annual budget; j)  acquisition,  disposition  or  encumbrance  of  any  other  assets  of  the  B ank  with  the  book  value  in  excess of 5% (five per cent.) of the Equity, if outside  the Bank’s ordinary course of business and unless  included i n the Bank’s approved business plan and/ or annual budget; and  k)  approval  of any compensation to  members of the  Bank’s staff identified in the Bank ’s internal rules . The  Management  Board makes decisions  by a simple  majority  of  votes  cast  at  a  meeting.  A  quorum  is  present  when  a  simple  majority  of  members  of  the  Management  Board  is  present  at  a  meeting.  Members of the Management Board may participate in  Management Board meetings by telephone or through another  techni cal  d evice.  If  n ecessary,  in  matters  of  urgency, a decision may be made by the Management  Board  without  holdi ng  a  meeting.  Th e  Management  Board  has  the  discretion  to  invite  members  of  the  Bank’s  other  corporate  bodies,  employees  or  o ther  persons to its meetin gs. The  Management  Board  consists  of  six (6)  members.  No  member  of  the  Management  Board  may  be  a  member  of  the  Supervisory  Board  or  the  Audit  Committee.  Members  of  the  Management  Board are  elected and recall ed by a decision of the Supervisory  Board. Members of the Management Board serve four  (4) year terms and may be re-elected. Members of the  Management Board elect and recall the Chairman and  Vice- Chairman of the Management Board from among  members of the Management Board. The relationship  between  a  me mber  of  the  Management  Board  and  the Bank is governed by a service contract concluded  between the Bank and the respective membe r of the  Management Board and further by applicable laws.  A member of the Management Board may resign from  the Management Board thro ugh a written notification  delivered  to  the  Chairman  of  the  Supervisory  Board  or  through  a  written  notification  addressed  to  the  Chairman of the Supe rvisory Board and delivered to the  Bank’s registered office. A member of the Management  Board may not resign at an improper time for the Bank. The  Bank  is  represented  by  two  Management  Board  members,  one  of  whom  must  b e  the  Chairman  or  Vice-Chairman. 83 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 4.5.3 Members of the Management Board As at 31 December 2024, the following persons were members of the Management Board:  Name Role Member position held from Member position held to Tomáš Spurný Chairman of the Management  Board 1 October 2015 (Chairman since 1 October 2015) 3 October 2027 Carl Normann Vökt Vice-Chairman of the  Management Board 25 January 2013 (Vice-Chairman since 1 March 2019) 28 Jan uary 2 029  Jan Novotný Member of the Management  Board 16 December 2013 18 December 2025  Jan Friček Member of the Management  Board 1 March 2019 2 March 2027 Klára Starková Member of the Management  Board 1 June 2 021 1 June 2025 Andrew John Gerber Member of the Management  Board 10 September 2024 10 September 2028 On the pr oposal and recommendation of its N omination  Committee, the Bank’s Supervi sory Board elected Mr.  Andrew John Gerber as a new me mber of the Bank’s  Management Boar d for a four-year term effective from  10 September 2024. On the recommendation of its Nomination Committee,  the Supervisory Board als o ap proved the reappointment  of Mr. Carl N ormann Vökt as a member of the Bank’s  Management  Board  for  a  further  four  years  until  28  January  2029.  The  Bank’s  Management  Board  subsequently re-el ected him as its Vice-Chairman.  Except  as  stated  below,  none  of  the  members  of  the  Management  Board  has  been  a  member  of  the  administrative, management or supervisory bodies of,  or a partner of, any company or partnership other than  the Bank at any time in the previous five years. TOMÁŠ SPURNÝ holds a bachelor’s degree from New  York University  and  an  MBA  from  Columbia  Business  Sch ool. He started his career at McKinsey & Company  and has extensive experience in managerial positions  in the banking and financial sector.  He  served  as CEO  and Chairman of  the Management  Board  of  Banca  Comercială  Română,  a  Romanian  subsidiary  of  Erste  Group  in  Romania.  Previously,  he  served  as  CEO  at  major  banks  in  the  CEE  region,  including CIB in Hungary and VUB in Slovakia, and held  the CFO position at  Komerční banka. Mr.  Spurný also  held CEO positions at PPF and CCS. On 1 October 2015, he w as appointed CEO and Chairman  of the Management B oard of the Bank for four years  until  1  October  2019.  Mr.  Spurný  was  re-elected  for  another  four-year  term  from  2  October  2019  and  again for a four-year term from 3 October 2023 until  3  October  2027.  Both  decisio n s  were  adopted  after  the  confirmation  of  the  Czech  National  Bank,  which  declared Mr. Spurný fit and proper for the performance of his function as Chairman of the Management Board.  As Chief Executive Officer, he actively fulfils his duties, which are set by applicable law, internal regulations of  the Bank and dec isions by the General Meeting of the  Bank. Apart from his position as a member and Chairman of  the Management  Board of MONETA  Money Bank,  he  has also been a member of the Sup e rvis ory Boards of  MONETA Leasing since  November 2015 and MONETA  Auto since May 2016. Since April 2021, he has also held  the position of Chairman of the Supervi sory Board of  the foundation Nadace MONETA Clementia. The current service contract between Mr. Spur ný and  the  Bank  became  effective  on  3  October  2023  and  will terminate upon the termination of hi s o ffice. The  service  contract  provides  for  the  following  ben efit s  upon  termination  of  hi s  office:  in  the  perio d  of  up  to  twelve  months  following  the  termination  of  his  office,  Mr.  Spurný  is  entitled  to  receive  monthly  in  arrears  a  salary  continuance  equal  to  his  monthly  pre-termination base salary, subject to compliance by  Mr.  Spurný  with  non-compe te  obligations  and  other  terms and conditions of his service contract.  CARL NORMANN VÖKT holds a university degr ee with  a  major  in  Finance  and  Marketing  gained  at  the  Karl  Franzens University in Graz, Austria. His  career  star te d  in  1990  in  Vienna  in  the  area  of  Project  and  Structured  Finance  at  C reditanstalt,  followed  by  a  short  seco ndment to  the  International  Finance  Corporation  in  Washington.  From  1996,  he  worked in Poland. During hi s  more than 15-year stay  in Poland,  Mr. Vökt  held  different  senior  positions  in  Corporate  Banking  and  Risk  Management.  The  last  position he held in Poland was Chief Risk Officer and  Deputy  President  of  the  Management  Board at  Bank  BPH in Warsaw. Since November 2012, Mr. Vökt has held the p osition  of  Chief  Risk  Officer  at  MONETA  Money  Bank.  On  25  January  2013,  he  was  appointed  as  a  member  of  84 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 the  Management  Board  of  the  Bank  for  four  years  and  reappointed  with  effect  from  26  January  2017  for  a  further  four  years.  On  1  March  2019,  he  was  appointed  as  Vice-Chairman  of  the  Management  Board  of  the Bank.  Following recommendations from  the Nomination Committe e, the function and term of  Mr. Vökt on the Management Board of the Bank was  prolonged for ano th e r four-year term until 27 January  2025 and  again for  a  four-year term  until 28  January  2029.  As Chief Risk Officer, he i s responsible for the overall  direction of the  Risk function of  the  Group. He  l eads  the  underwriting,  portfolio  management  and  risk  management functions and also provides leadership to  executive and senio r risk managers. He is accountable  for enabling the efficient and effective governance of  significant risks and related opportunities.  Apart from his position as a memb e r and Vice-Chairman  of the Management Board of MONETA Money Bank, he  has also been a member of the Sup e rvis ory Boards of  MONETA Leasing since  November 2015 and MONETA  Auto  since  May  2016.  Since  April  2020  he  has  been  Chairman  of  the  Supervisory  Board  of  MONETA  Stavební  Spořitelna,  and  until  its  merger  with  the  Bank  in  January  2021,  he  was  also  Chairman  of  the  Supervisory Board of Wüstenrot hypoteční banka a.s.  Since  April  2021  he  has  been  Vice-Chairman  of  the  Supervisory Board of the foundation Nadace M ONETA  Clementia. The  current  service  contract  between  Mr.  Vökt  an d  MONETA Money Bank became effective on 28 January  2025  and  will  terminate  upon  the  termination  of  his  office. The service contract provides for the following  benefits upon termination of Mr. Vökt’s off ice: in the  period of up to twelve months following the ter mination  of  his  office,  Mr.  Vökt  is  entitled  to  receive  monthly  in  arrear s  a  salary  continuance  equal  to  his  monthly  pre-termination base salary, subject to co mpliance by  Mr. Vökt with his non-c ompete obligations and other  terms and conditions of his service contract. JAN NOVOTNÝ has worked in several positions at the  Bank since joining in 2003. He began as a commercial  banking  analyst  and  later  became  the  data  team  leader.  Mr.  Novotný  also  led  product  development  and, ultimately, product management. He left in 20 07  to gain more exp e rience within the GE Capital Group in  Singapore, where he was product manager for the SME  segment for the Southeast Asia Region (Singapore, the  Philippines,  Thailand  and  China).  He  returned  to  the  Czech Republic the following year, worki ng as the Head  of th e Micro and Small Enterprises Segm e nt and later  as the Manager of the entire SME segment of the Bank.  He was appointed Chief Commercial Banking Officer in  May 2013 and on 16 December 2013 was ap pointed as  a member of the Management Board fo r four years. On  10 August 2017, his service contract was exten ded for  an additional  four  years. Following recommendations  from  the  No mination  Committee,  the  function  and  term of Mr. Novotný on the Management Board of the Bank was extended  fo r  another  four-year term until  18 December 2025.  As  Chief Commercial Banking  Officer,  he is responsible  for  leading  and  managing  all  aspects  of  the  c lient  relationship and portfolio performance. His mandate is  to manage and increase assets and accounts, profitably  execute  growth  initiatives,  introduce  additional  products, manage assigne d resources and enhance client  relationships in order to retain and grow the business.  Apart from his position as a member of th e Management  Board  of  MONETA  Money  Bank,  he  has  also  been  a  member of the Supervisory Boards of MONETA Leasing  since  November  2015  and  MONETA  Auto  since  May  2016. Since April 2020 he  has be e n  Vice-Chairman of  the Superviso ry Board of MONETA Stavební Spořitelna,  and  until  its  merger  with  MONETA  Money  Bank  in  January  2021,  he  was  also  Vice-Chairman  of  the  Supervisory Board of Wüstenrot hypoteční banka a.s. The  current  service  contra ct  between  Jan  Novotný  and  MONETA  Money  Bank  became  effective  on  18  September  2021  and  will  terminate  upon  the  termination of his office. The service contract provides for  the  following  benefits  upon  termination  of  his  office: in the p e riod of up to twelve months following  the termination of his office, he is entitled to receive  monthly  in  arrears  a  salary  continuance  equal  to  his  monthly  pre-termination  base  salary,  subject  to  compliance  with  his  non-compete  obligations  and  other terms and con ditions of his service contract.  JAN FRIČEK is a graduate  of  the  Pr ague Uni versity  of  Economics and Business i n Prague, Faculty of Finance  and  Accounting;  he  is  also  a  Fellow  Member  of  the  Association of Chartered Certified Accountants (FCCA).  Prior  to  joinin g  MONETA  Money  Bank,  between  the  years  2004  and  20 09,  he  worked  as  an  auditor  with  Deloitte. Jan Friče k has been at MONETA Money Bank,  a.s. since 2009, during whi ch time he has held a number  of senior positions within the Finance div ision.  During  the  years  2016  and  2017,  he  became  the  managing  director  and  Chief  Financial  Officer  of  MONETA Leasing, s.r.o., and between 2018 and 2019, he  also  served  as  Chief  Financial  Officer  of  MONETA  Auto, s.r.o.  In March 2019, he was appointed Chief Finan cial Officer  and a member of the Management Boar d of MONETA  Money  Bank,  a.s .  for  four  years.  In  December  2022,  following  recommendations  from  the  Nomination  Committee,  the  function  and  term  of  Mr.  Friček  on  85 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 the Management Boar d of the Bank was e xtended for  another four-year term until 2 March 2027.  As  Chief  Financial  Officer,  he  is  mainly  responsible  for  business  performance,  financial  and  regulatory  reporting, investor relations, financial planning, capital  and liquidity management, operational accounting and  procurement. Apart  from  his  position  as  a  member  of  the  Management  Board of MONETA Money  Bank, he has  been,  since April 2020, a  m e mber o f  the Supervisory  Board and the Audit Committee of MONETA Stavební  Spořitelna, and until it s merger with the Bank in January  2021, he  was also a member of the Supervisory Board  of Wüstenrot hypo teční banka a.s. Sin ce March 2019  he  has  been  a  member  of  the  Supervisory  Board  of  MONETA Auto. From March 2019 until December 2023, he was a member of the Supervisory Board, and sin ce  January 2024, he has held a position in the statutory  bod y of MONETA Leasing. Since April 2021, he has been  a member of the Supervisory Board of the foundation  Nadace MONETA Cleme ntia. The  current  service  contra ct  between  Jan  Friček  and  MONETA  Money  Bank  became  effective  on  2  March  2023  and  will  terminate  upon  the  termination  of  his  office. The service contract provides for the following  benefits upon termination of hi s office: in the perio d  of  up  to  twelve  mo nths  following the  termination  of  his offi ce, he is entitled to receive monthly in arrears  a  salary  continuance  equal  to  his  monthly  pre- termination  base  salary,  subject  to  compliance  with  his  non-compete  obli gations  and  other  terms  and  conditions of his service contract. KLÁRA STARKOVÁ  graduated  f rom  Wirtschaftsuniversität  in  Vienna  an d  Rochester  Institute  of  Technology  in  the  USA.  She  started  her  career  at McKinsey and  Company, where she worked  for almost 11 years.  Between 2007 and 2016, she was a member of the  Executive Committee wi th  responsibili ty for  IT and  Operations,  and  she  also  served  as  a  member  of  the Executive Committee for Polan d and Slovakia at  Generali CEE and Generali PPF Holding, respectively, where she was also responsible for strategic human resources  management,  th e  legal  division  and  internal  communications,  as  well  as  competence  centres.  Klára  Star ková  also  has  extensive  experience  as  a  director and senior consultant at Accenture, where she  worked from 2017, and was responsible for consulting for major financial institutions in the Central European  region.  Since June 2021, Klára Starková has held the position of C hief Operating Officer and has been a member of  the Management Board of MONETA M oney Bank, a.s. As  Chief  Operating  Officer,  she  is  responsib le  for  IT  and  Shared  Services.  As  such,  she  is  leading  the  IT,  operations and strategic change areas. The  service  contract  be tween  Klára  Starková  and  MONETA M oney Bank became effective on 1 June 2021  and will terminate upon the termination of her office.  The service co ntract provides for the following benefits  upon termination of her offi ce: in the period of up to  nine  months  following  the  termination  of  her  office,  she  is  e ntitled  to  recei ve  monthl y  in  arrears  a  salary  continuance equal to her monthly pre -termination base  salary,  subject  to  compliance  with  her  non-compete  obligations  and  other  terms  and  conditions  of  her  service contract. ANDREW GERBER  holds  a  bachelor’s  degree  from  Durham University in  the United Kingdom. Mr. Ge rber  started  his  career  at  Bain  and  Company,  where  he  worked in Australia, Sweden and the UK. He entered banking in 2002, working for several British  institutions,  including  the  Royal  Bank  of  Scotland,  where he was responsible for retail lending, including  mortgages,  and  insurance  activities.  Before  joining  MONETA  Money  Bank,  Mr.  Gerber  spent  five  years  in Banca Comercială Română, a Romanian subsidiary  of  Erste  Group,  as  the  Executive  Director  for  retail  product and segment management. From July 2016 until June 2024, he h e ld the position  of  Chief  Pro ducts  &  Marketing  Officer  at  MONETA  Money  Bank.  In this  role  he was  responsible  for  the  strategy and performance of the Bank’s retail franchise products,  including  product  development,  pricing  and  financial  performance.  He  also  led  the  Bank’s  digital  transformation  and  customer  analytics/CRM  development .  Between  June  2020  an d  September  2024,  he  served  as  C hairman  of  the  Management  Board  of  MONE TA  Stavební  S pořitelna,  and  until  its  merger with the Bank in January 2021, he also served  as Chairman of the Management B oard of Wüstenrot  hypoteční banka a.s. In  July  2024  he  was  appointed  Chief  Retail  Banking  Officer  respo nsi ble  for  the  entire  retail  division.  In  Septembe r  2024,  on  the  r ecommendation  of  the  Nomination  Committee  of  the  Bank’s  Sup e rvisory  Board,  he  was  elected  as  a  new  member  of  the  Management Board fo r a four-year term. Apart  from  his  position  as  a  member  of  the  Management  Board  of  MONETA  Money  Bank,  he  is  also a member of the Supervisory Board o f MONETA  Stavební Spořitelna. 86 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 The service contract between Andrew John Gerber and  MONETA Mon ey  Bank  became  effective on  the date  of his elec tion, 10 September 2024, and will terminate  upon  the  termination  of  his  off ice.  The  service  contract  provides  for  th e  foll owing  benefits  upon  termination of his o ffice: in the period of up to nine  months following the  termination of  his  office, he is  entitled to receive a monthly salary continuance equal  to  his  monthly  pre-termination  base  salary,  subject  to compliance with  his  non-compete obligations and  other terms and con ditions of his service contract. 4.5.4 Activity Report of the Management Board During 2024, the main tasks of the Management Board  were managing business activities across both the retail  and  commercial  franchises,  and  the  delivery  of  the  Group’s  strategic  objectives.  The  Management Bo ard  prepared and  discussed the s e parate and consolidated  finan cial statements of the Bank and the Group for the  finan cial year 2023, which were prepared acco rding to  IFRS.  The  Mana gement  Board  submitted  the  separate  an d  consolidated financial statements of the Bank fo r the  finan cial year 2023 for r eview to the Supervisory Boar d  and then to th e Annual General Meeting he ld on 23 April  2024,  wh e re  they  were  approved.  The  Management  Board  also  submitted  a  proposal  regarding  2023  net  profit distribution to the Supervisory Board for review, which was subsequently approve d at the same Annual  General  Meeting.  At  the  Annual  General  Me eting,  the  Management  Board  presented  its  rep ort  on  the  Bank’s business activities and the Supervisory Board’s  proposal for the appointment of the external st atutory  auditor.  The  Management  Board  also  prepared  and  approved  the  Bank’s  Annual  Financial  Report  for  the  finan cial year 2023.  During  2024  the  Management  Board  regularly  reviewed  and  published  co n solidated  quarterly  finan cial results.  In  October  2024,  the  Management  Board  submitted  to  the  Supervisory  Board  for  its  review  a  proposal  for  the  distrib ution  of  an  extraor dinary  dividend  in  the  amount  of  CZK  3  per  share  from  the  account  of  retained earnings. This proposal was ap proved at the  General Me eting held on 19 November 2024. In 2024, the  Management  Board held  53 meetings  in  total and  adopted eight decisions o utside the m eeting  through per rollam voting. A quorum is present when a  simple majori ty of members of the Management Board  are present at a meeting. 4   Memb er of the M anagement Board since 10 September 2024. Overview  of  the  Management  Board  meetings  attendance. Member of the Management Board Number of Management Board meetings attended in 2024 Tomáš Spurný 89% Carl Normann Vökt 94% Jan Novotný 91% Jan Friček 92% Klára Starková 92% Andrew John Gerber 4  93% In  2024,  the  Management  Board  regularly  evaluated  the Bank’s capital adequacy and liquidity and approved  the  Internal  Capital  Adequa cy  Assessment  Process  (“ICAAP”) and Internal Liquidity Adequacy Ass essment  Process  (“ILAAP”)  reports,  which  were  submitted  to  the  Czech  National  Bank  in  a ccordance  wi th  CNB  Decree No. 163/2014 Coll. The Management Board also  discus sed the cap ital management policy and reports  on the market situation during each quarter of 2024.  The  Management  Board  also  allocated  resources  to  implement  regulatory  expectations  in  the  area  of  resolu tion  planning.  During  the  implementation,  the  Management  Board  regularly  reviewed  the  implementati on  status  and  docum e nts,  which  were  submitted to the CNB. As part of its activities, the Management Board regularly  asses sed all risks to which the Bank is exposed. In the  field  of  risk  management,  the  Management  Bo ard  discus sed  reports  on  the  devel opments  in  market  and  capital  risks  and  developments  in  lending  on  capital  markets.  At  the  same  time,  the  Management  Board  discus sed and  approved  limits on  market risks  and approved  certain  l arge loans  provided  to  clients.  The  Management  Board  approved  competencies  in  providing  the  loans  and  dealt  with  issues  of  risk  management  supervision  across  the  entire  Group.  In  the  operational  risks  area,  the  Management  Board  discus sed  regular  quarterly  reports  co ntaining  information on the results of first-level controls.  Compliance risks were evaluated by the Management  Board both in the  Annual Report for the financial year  2023 and in the quarterly reports on the development  of  these  risks.  At  the  same  time,  the  Management  Board approved the 2023 annual evaluation report on the Bank’s system against  money laundering and the  finan cing of terrorism.  The  Management  Board  identified  tho se  employees  whose professional activities have a material impa ct on  the B ank’s risk profile (“Material Risk Takers”). In 2024,  87 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 the  Management  Board  considered  31  positions  as  material risk takers (see Chapter 4.7 Material Risk Takers).  In the ar ea of Internal Audit, the Management Board  discus sed  a  number  of  documents  and was  regularly  informed  of  all  actions  carried out  by  Internal  Audit.  The  management  of  rem edial  measures  and  their  proper  implementation  was  fully  addressed  by  the  Management Board. The Board monitore d the status of individual projects  relating to IT and digital strategy.  The  Management  Board  evaluated  the  overall  functioning and efficiency of th e Bank’s management  and control system, which is functional and effective. Furthermore,  the  Management  Board  addressed  reports  on  the  handling  of  complaints  and  claims  (including complaints sent to the Bank’s Ombudsman). The  Management  Bo ard  also  discussed  the  Bank’s  strategic  direction  and  business  plan  for  the  year s  2025–2029.  The Management Board disc ussed all issues falling within  its  competence  as  the  sole  sharehold e r  performing  the  duties  of  th e  Gener al  Meetin g  in  the  Group’s  subsidiaries,  such  as  approvin g  financial  statements,  the ele ction and remuneration o f members of company  bodies, amendments to the articles of association, the  appointment of audi tors and other matters. Throughout  2024  the  Management  Board  was  in  regular contact with inves tors and conducted in total  83 hours of group or individual meetings or phone calls  with 106 inves tors. MONETA also participated in four  conferences and one roadshow organised by renowned  banks and i nvestment companies. In  2024,  the  committees  established  by  the  Management  Board  held  in  total  108  meetings,  which  were  attended  by  individual  members  of  the  Management  Board.  Such  committees  were  established to ensure efficient management, and their  detaile d  description  and  structure  are  described  in  Chapter 4.11.2 below.  As part of its activities, the Management Board decided  on  many  other  matters  related  to  the  organisational  structure, approving internal directives within various  areas or granting powers of attorney. Great  attention  was  further  devoted  to  corporate  governance  issues in  the  context of  new  developments  in  Czech  legislation  and  in  th e  context  of  co rporate  governance stand ards. The Management B oard evaluated  its  activities  in  2024 and  submitted its report  on  th ose  activities for this period to the Supervisory Board. 4.6 KEY EXECUTIVE MANAGERS The  Chief  Shared  Services  Officer,  the  C hief  Digital  Officer  and  the  Chief  Marketing  Officer  are  the  Key  Executive Managers of the B ank. They provide strategi c  recommendations to the Management Board on retail products, marketing and retail franchise development  and,  in  acco rdance  with  the  internal  governance  polic ies  of  the  Bank,  have  the  power  to  make  certain  managerial  decisions  that  may  affect  future  development and the commercial strategy of the Bank,  however not the overall busines s management in the  meaning  of  section  121m  (1)  of  the  Capital  Markets  Act. Therefore, they are not persons in the m eaning of  section 121m (1) of the Capital Markets Act. The  Chief  Shared  Services  Officer  ensures  th e  implementati on  of  foreign  and  domestic  non- cash  payments,  settlement  of  interbank  Treasury  operations, ensures the oper ation of the ATM network,  ensures  the  render i ng  of  b anking  i nformation  to  law  enforcement  bodies,  the  courts,  public  authorities,  executors, notaries and insolvency trustees, manages  the  Bank’s  car  fleet  and  mobile  phones,  provides  operational and  technical  management  of  the Bank’s  headquarters, sets rules and processes when handling  documents, and ensures their storage and liquidation. The Chief Digital Officer is responsible for defining the  strategy for the development of digital platforms and  their i mplementation and oversees all activities related  to the Bank’s digital platforms. Chief  Marketing  Officer  is  responsible  for  planning  and  implementin g  marketing  activities  in  accordance  with the business and marketing strategy of  MONETA,  developing  and  realising  the  strategy  of  M ONETA’s  brand  in  order  to  strengthe n  the  brand  ima ge  through  marketing  communicati on  as  well  as  having  responsibility  for  the  optimisation, improvement  and  consistency of communications and web-design across MONETA according to the lates t  market trends  while  aligned with the communication strategy of the Group. As at 31 December 2024, the following persons were Key Executive Managers: Name Current role In current role since Employed since Jiří Huml Chief Shared Services Officer 1 February 2017 15 August 2016  Jakub Valenta Chief Digital Officer 1 May 2023 1 May 2020 Sandra Kalijanko Chi ef Marketing Officer 1 October 2024 1 February 2016 88 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 None of the aforementioned Key Executive Managers  has been a member of the administrative, management  or supervisory bodies of, or partner of, any company or partnership at any time during the previous five years,  excluding companies within the Group. JIŘÍ HUML  has  worked  in  the  financial  sector  since  1992, mainly in banking and insurance. Since 1999, he  has held several executive positions in operations, IT,  product management  and s ales in the Czech Republic,  Austria  and  Slovakia.  He  has also  held  non-executive  positions  in  other  finan cial  institutions  (asset  management,  insurance  and  buildin g  socie ty)  and  in  various charities. Mr. Huml joined MONETA Money Bank in August 2016  as  a  Senior  Project  Manager  for  Rebranding.  Later,  he  assumed  responsibility  for  Facility  Mana gement,  Security, Business Continuity, and Central Procurement.  In February 2017, Mr. Huml was prom oted to Chief Shared  Services  Officer,  thus  also  acquiring  responsibility  for  Retail Back-Office, Comm e rcial Back Office, Payment s,  and Business Process Support departments.  From May 2020 until September 2023, Mr. Huml was  a  member  o f  the  Management  Board  of  MONETA  Stavební Spořitelna responsible for Operations and IT.  Until its merger with MONETA Money Bank in January  2021, he also served as a member of the Management  Board of Wüstenrot hypoteční banka a.s. The  employme nt  contract  between  Mr.  Huml  an d  MONETA  Money  Bank  was  entered  into  wi th  effect  from  15  August  2016  and  was  later  extended  for  an  in definite  peri od.  The  employment  contr act  provides  for  the  following ben efit s  upon termination  of  his  employ ment:  Mr.  Huml  is  entitled  to  an  extraordinary  p ayment  in  the  amount  of  up  to  six  months’ remuneration in case of the termination of his employment. Such extraordinary remuneration will be paid to Mr. Huml in six individual payments after the  termination of his employment. JAKUB VALENTA  is  a  gra du ate  of  Lappeenranta  University  of  Technolog y  in  F i nland.  He  has  be e n  working  in  the  IT  field  for  more  than  22  years.  He  started  his  career  at  GE  Healthcare  Finland  in  a  team  developing  software  for  anaesthesia  care.  Subsequently,  he  worked  for  13  years  at  Accenture,  a  consulting  company,  where  his  pr imary  focus  was  on  the  development  of  IT  systems  in  the  financial  services  sector  in  the  Central  European  regio n .  He  joined MONETA in 2020 after havin g cooperated as a  contractor on the su ccessful implementation of a key  Card  Management  system  solution.  He  first  held  the  role of Head of IT Infrastructure and, from 2021, also  Head  o f  Data  Management.  Since  May  2023,  he  has  been  in  the role  of  Chief Digital Officer  with the  aim  of  further developing and expanding M ONETA’s  digital  platforms. The  employment  contract  between  Mr.  Valenta  and  MONETA Money Bank was entered into with effect from  1 May 2020 for an indefinite perio d. The employment  contract does  n ot provide any specific b e nefits up on  the termination of his employment. SANDRA KALIJANKO graduated  from  the  Faculty  of  Social Scien ces at Charles University in Prague, where  she  studied Media  Studies.  She  started  her  career in  2006 in the online marketing department of the Allianz  insurance  company  and  then  further  developed  her  specialisation  at  UniCredit  Bank,  where  she  focu sed  on  marketing  within  multi-channel  activities  through  mobile applications, internet b anking and web pages.  In addition to banking and insurance, she also worked  for Danone Group, whe re she focused on B2C channel  development in the Early Life Nutrition division within  e-commerce. She  has  been  wi th  MONETA  M oney  Bank since  2016  and has held various marketing roles during her time,  including  agile  leadership  roles.  She  has  worked  in  online  marketing,  social  media  marketing, and  direct  and  affiliate  marketing  and  has  successfully  led  two  progressive  redesigns  of  MONETA’s  websites  over  the  course  of  six  years,  both  from  a  web design  and  user  experience  perspecti ve,  as  well  as  from  an  IT development perspective.  Since October 2024, she has held th e position of Chief  Marketing Officer with the aim of consistently covering marketing activities across all communication channels  and  developing  MONETA’s  visual  and  communication  identity. The  employment  contract  between  Sandra  Kalijanko  and MONETA Money Bank was entered into with effect  from  1  February  2016  for  an  indefinite  pe riod.  The  employment  co ntract  does  not  provide  any  specific  benefits upon termination of her employment. 4.7 MATERIAL RISK TAKERS Material  Risk  Takers  are  employees  with  significant  impact on the risk profile of MONETA Money Bank, a.s.  on a consolidated basis in line  with the requirements of  European  legislation  and  Czech law.  Besides  memb e rs  of  the  Management  and  Supervisory  Board,  Material  Risk  Takers  are  statutory  bodies  and/or  membe rs  of  statutory  b odies  of  companies  within  the  Group  and  other  employees  with managerial  responsibility within  business, control and enabling functions.  89 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 In  2024,  the  following  functions  have  been  identified  as  Material  Risk  Takers  besides  the  Management  and  Supervisory Boards: •  Key  Executive  Mana gers  (please  refer  to  Chapter  4.6); •  Statutory  bodies  of  M ONETA  Auto,  s.r.o.,  and  MONETA Stavební Spořitelna, a.s.; •  Membe rs  of  senior  management  engaged  in  control functions (Director Internal Audit; Director  Compliance); •  Staff member s having managerial responsibility for  critical support  function s  (Director  Legal; Dire ctor  Human  Resource s;  Senior  Manager  Accounting,  Taxes & IFRS Reporting; Director IT Infras tructure &  Enterprise  Services;  Director  Core  Banking  Solutions; Senior Manager Cyber Security); •  Membe rs  of  committees  es tablished  by  the  Management  Board  (Seni or  Manager  Financial  Planning  and  Business  Performance;  Senior  Manager Treasury; Senior Manager Enterprise Risk  Management);  •  Other staff members significantly influencing cre dit  risk  exposures  (Senior  Manager  Commercial  Risk;  Senior Manager Retail & Small Business Risk; Senior  Manager  Colle ctions;  Senior  Manager  AML  &  Collater al  Mana gement;  Senior  Manager  Risk  Models & Fraud Management); and •  Upon  the  approval  of  the  Management  Bo ard,  other  staff  members  managing  critical  processes  with significant i mpact on MONETA Group (Director  Retail Distribution; Senior Manager Small Business;  Senior  Manager  Te rm  Lo ans;  Senio r  Mana ger  Structured Finance).  Persons  considered  as  Material  Risk  Takers  are  identified  by  evaluating  both  quantitative  and  qualitative criteria prepared by the Human Resources  Department.  The  Management  Board  approves  the  Material  Risk  Takers  group  base d  on an  assessment  of  these  cr iteria.  The  process  of  identific ation  is  performed on a regular basis, at least annually and is  subject to  the internal  audit  review.  The  list  can  be  extended on an as needed basis. The list of persons  included in the Material Risk Takers group is regularly  reviewed, at least once a year. Based o n the pro posal  of  the  Management  Board,  it  is  reviewed  by  the  Remuneration  Committee  and  definitively  approved  by the Supervisory Board. In 2024, the list of persons  was  reviewed  t wice  and  was  extended  by  one  new  position, while another two p ositions were removed  from the list. The total number of identified persons  is 31.  4.7.1 Remuneration of Material Risk Takers Remuneration  of  Material  Risk  Takers  is  governed  by  the  Remuneration  Policy  of  Material  Risk  Takers  in  the  MONETA  Group  approved  by  the  Management  Board.  Due  to  that,  their  remuneration  must  follow  the  l ong-term sustainable remuneration principles to  avoid unnecessary risk-taking. This includes but is not  limited to: a balanced mix between fixed and variable remuneration,  th e  deferred  pay-out  of  variab le  remuneration,  and  the  application  of  malus  and  clawback  clauses .  All  Material  Risk  Takers  participate  in the Executive Variable Incentive Plan (“EVIP”), which  complies with regulatory r equirements.  4.8 REMUNERATION AND BENEFITS OF MEMBERS OF THE SUPERVISORY BOARD, THE MANAGEMENT BOARD AND KEY EXECUTIVE MANAGERS 4.8.1 Remuneration Policy Applied to the Supervisory and Management Boards 4.8.1.1 Legal Framework Pursuant to Section 121k and following of the Capital  Markets  Act,  which  was  introduced  into  Czec h  law  in  order  to  implement  new  provisions  inse rted  to  Directive  (EU)  2017/828  of  the  European  Parliament  and  of  the  Council  of  17  May  2017  amending  Directive  2007/36/EC  as  regar ds  the  encoura gement  of  long-ter m  shareholder  engagement,  the  Bank  i s  obliged to prepare a p olicy governing remuneration of  Management  and  Supervisory  Boards  members  (the  “Remuneration Policy”) and submit the Remuneration  Policy to the General Meeting for  its app roval. Against  this  backdrop,  the  Management  Board  submitted  a  new  Remuneration  Policy  to  the  General  Mee ting  of  the  Bank  held  on  23  April  2024,  at  which  the  Remuneration  Policy  was  approved  in  its  submitted  wording by the shareholders with effect from the s ame  date. The Management Board is required to submit th e  Remuneration Policy to the General Meeting at every  substantial change or at least once every four years. 4.8.1.2 Key Principles The  Remuneration  Policy  is  based  on  the  following  principles: •  Regulatory Compliance. Reflecting good corporate  governance  and  regulatory  co mpliance,  ensuring  sustainability and effective risk management. •  Shareholder Alignment.  Reflecting  shareholder  value interest  through the linking  of  management  variable rewards with respect to the Management  Board and senior management of the Group. •  Pay for Performance.  A  long-established  best  practice of  pay for performance, including rewards  or clawbacks pertaining to individual remuneration  based  on  performance  against  specific  metrics,  90 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 both internally (indivi dual, d e partment, and Group  objective achievement) and externally (shareholder  return).  Ultimately  ensuring  the  attraction,  retention,  and  motivation  of  top  pe rformers  and  the sound management of the Group. •  Equity, Internal/External.  Remuneration  principles  reflect  internal  equity  requirements  and  prudent  risk  management,  based  on  organizational  level,  individual  responsibilities,  and  long-term  performance.  Further,  the  policy  utilizes  external  market  benchmarks,  where  feasible.  The  Gr oup  does  not  allow  any  form  of  dis crimination,  including  bu t  not  limited  to  ensuring  comparable  remuneration for women and men. The  above  principles  reflect  MONETA’s  long-term  strategy.  The  general  rul es  and  principles  of  remuneration  of  members  of  the  Management  Board  and  the  Supervisory  Board  are  set  out  in  the  Remuneration  Policy.  The  detailed  structure  of  targets and re mune ration paid and granted is part of  the  Remuneration  Report  for  2024.  Both  doc uments  are  available  on  MONETA’s  investor  website  https://investors.moneta.cz/. 4.8.2 Remuneration and Benefits of Supervisory Board Members in 2024 For performance of their offic e in the Supervisory Board  and  the  committees  established  by  the  Supervisory  Board, the Supervisory Board members are rewarded  with fixed remuneration, paid monthly, in arrears. No  variable  remuneration  (e.g.,  annual  bonus)  is  awarded by the Bank or other member of the Group to  the Supervisory Board m e mbers. The  tabl e  be low  sets  out  the  total  remuneration  received  by  the  Supervisory  Board  members  in  the  year  2024  for  p e rformance  of  th eir  office  in  the  Supervisory Board and the committees established by  the Supervisory Board: Item Amount 5 (in thousands CZK) Total remuneration (fixed part) 11, 512 Benefits - Total 11,512 5    Does not include the remuneration paid to Mr. Petrma n, Mr. Hall, Mrs. Prokopcová and Mrs.Jirásková for performance of their office in the Audit Committee.         Does not include the remuneration paid to all three members of the Supervisory Board elected b y employees. Their annual remuneration for performing their  jobs as employees was higher than the annual remuneration for performing the function as the member of the Supervisory Board stipulated by the internal  regulation. In such cases, the performance of the office of the member of the Supervisory Board is without remuneration. 6     The above remuneration of the Supervisory Board members is fixed in CZK using the EUR/CZK exchange rate an nounced by the CNB as at 26 October 2017.         If the annual remuneration of members of the Superviso ry Board elected by the employees for performing his/her job as employee is the same as, or  higher than, the annual remuneration for performing the function of the member of the Supervisory Board stipulated by the internal regulation, then the  performance of this function of the member of the Supervisory Board is without remuneration. 7    Does not include the remuneration paid to Mr. Petrma n, Mr. Hall, Mrs. Prokopcová and Mrs. Jirásková for performance of their of fic e in the Supervisory Board  or Nomination/Remuneration Committee. Remuneration  o f  the  Superviso ry  Board  and  committees  established  by  the  Supervisory  Board  follows the internal regulation approved by the General  Meeting hel d on 26 October 2017: Position Annual Remuneration 6 (in EUR) Supervisory Board Chairman Vice-Chairman Member 100,000 70,000 48,000 Risk Committee Chairman Member 17,000 7,000 Remuneration Committee Chairman Member 16,000 7,000 Nomination Committee Chairman Member 16,000 7,000 4.8.3 Remuneration of Audit Committee Members in 2024 For performance of their offi ce in the Audit Committees,  the Audit Committee members are rewarded with:  •  Fixed remuneration, paid monthly in arrears; and •  Compensation of travel costs, if an Audit Commi ttee  member travels in connection with the performance  of his/her function. No  variable  remuneration  (e.g.,  annual  bonus)  is  awarded by the Bank or other member of the Group to  Audit Committee members. The table below sets out the total remuneration pai d  to  Audit  Committee  members  in  the  year  2024  for  performance of their office: Item Amount 7 (in thousand CZK) Total remuneration (fixed part) 1,011 Total 1,011 91 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 The  internal  regulation  concerning  the  remuneration  of the Audit Committee was approved by the General Meeting hel d on 26 October 2017, as follows: Position Annual Remuneration 8 (in EUR) Chairman 19,000 Member (within the Supervisory Board) 8,000 Member (outside the Supervisory Board) 15,000 4.8.4 Remuneration and Benefits Awarded to and Received by Management Board Members in 2024 The  table below s ets out the total  remuneration and  benefits awarded to or recei ved by Management Board  members in 2024: Item Amount (in thousand CZK) Remuneration for the year 2024   Fixed remuneration 58,215    Variable remuneration recognised  and received in cash -    Variable remuneration recognised   (not received in cash) 40,460   Ben efits 6, 333 Total remuneration for 2024 105,007 Variable remuneration received in 20 23 in  cash and related to pe rformance 2019–2023 25,504 4.8.5 Remuneration and Benefits Awarded to and Received by Key Executive Managers in 2024 The  table below s ets out the total  remuneration and  benefits  awarded  to  or  received  by  Key  Executive  Managers in the year 2024: Item Amount (in thousand CZK) Remuneration for the year 2024   Fixed remuneration 21 ,631    Variable remuneration recognised  and received in cash -    Variable remuneration recognised  (not received in cash) 8,670   Ben efits 2,514 Total remuneration for 2024 32,815 Variable remuneration received in 20 24 i n  cash and related to pe rformance 2019–2023 8,001 8    The above remuneration of Audit Committee members is f ixed in CZK using th e EUR/CZK exchange rate announced by the Czech National Bank as at  26 October 2017. 4.9 SHARES AND SHARE OPTIONS HELD BY THE SUPERVISORY BOARD, THE MANAGEMENT BOARD, AUDIT COMMITTEE MEMBERS AND KEY EXECUTIVE MANAGERS The  fo llowing  table  provides  information  on  the  number  o f  shares  issued  by  the  Bank  and  share  options  r e l ating  to  the  Bank’s  shares  which  were  as  at  31  December  2024  held  by  members  of  the  Management  Board,  the  Supervisory  Board,  Key  Executive  Management  Members  and  the  Audit  Committee and their close persons: Shares Share options Management Board Members (total) 398,164 - Supervisory Board Members (total) 100,000 - 4.10 OTHER INFORMATION REGARDING THE MEMBERS OF THE MANAGEMENT BOARD, THE SUPERVISORY BOARD, AUDIT COMMITTEE AND KEY EXECUTIVE MANAGERS In the last five years no member of the Management  Board, the Supervi sory Boar d and the Audi t Committee,  and no Key Execu tive Manager, has been: •  Convicted in relation to any (fraudulent) offence; •  Subject to any offic ial public incrimination and/ or  sanctions  by  statutory  or  regulatory  authoriti es  (including designated pro fe ssional bodies); •  Dis qualified  by  a  co urt  from  acting  as  a  membe r  of the administrative, management or supervisory  bodies of any issuer of securities or from acting in  the  management  or  conduct  of  the  affair s  of  any  issuer of securities; and •  Associated  with  any  bankruptcies,  receiverships  or liquidations,   whe n  acting in his/her c apacity  as  a  member  of  the  administrative,  management  or  supervisory body or as a senior manager. There  are  no  conflicts  of  interest  between  the  duties  of  members  of  the  Management  Board,  the  Supervisory  Board,  the  Audit  Committee,  and  Key  Executive  Managers  and  th eir  private  interests  or  other duties. 92 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 4.11 COMMITTEES ESTABLISHED BY THE SUPERVISORY BOARD AND THE MANAGEMENT BOARD 4.11.1 Committees Established by the Supervisory Board The  Nomination  Committee,  the  Remuneration  Committee  and  the  Risk  Committee  establishe d  by  the  Supervis ory  Board,  together  with  their  powers  and  duties,  and  chairs  and  members,  are  described  below. 4.11.1.1 Nomination Committee The Nomination Committee is a supporting and advisory  bod y  of  the  Supervisory  Board.  The  Nomination  Committee  consis ts  o f  thr ee  membe rs  elected  and  recalled  by  the  S upervisory  Board  from  among  its  own members, with the majority of it s members being  independent. The Nomination Committee shall in particul ar: a)  identify  and  recommend  candidates  to  fill  the  vacancies  on  the  Management  Board  o r  the  Superviso ry  B oard  for  the  approval  of  the  Supervisory Board or the Gene ral Meeting, as the  case may be;  b)  asse ss  and  recommend  candidates  to  fill  the  vacancies  for  the  po sitions  of  Director  Internal  Audit and Director Comp liance; c)  periodically,  and  at  least  annually,  assess  the  structure,  size,  composition  and  performance  of  the Management Board and the Supervisory Board and  make  recommendations  to  the  Supervisory  Board with regard to any changes; d)  periodically,  and  at  least  annually,  assess  the  trustworthiness,  knowledge,  skills  and  experience  of  individual  members of  the  Management  Board  and of the Supervisory Board; of the Management  Board  collectively  and  of  the  Supervisory  Bo ard  collectively;  and  report  to  the  Supe rvisory  B oard  accor dingly; e)  periodically review  the policy of the Management  Board and the Supervisory Board for selection and  appointment  of  senior  management  and  make  recommendations to the Supervisory Board; and f)  exercise  other  powers  and  respon sibilities  vested  to  the  Nomination  Commi ttee  by  applicable  law,  the Bank’s Articles of Association or by the Bank’s  internal rules, to the extent that those comply with  applicable law. The  Nomination  Committee,  when  nominating  candidates  for  vacancies  on  the  Supervisory  Board  and  the  Management  Board,  analy ses  the  overall  composition  of  the  various  b odies  in  terms  of  professional skills and experience and takes into account  the level of diversity in terms of experience, education, qualifications,  profession,  social  status,  gender,  nationality  and  age.  Candidate  pr o files  are  assessed  in  terms  of  knowledge,  professional  experience,  past  work, results, reliability and reputation. The  Nomination  Committe e  makes  decisions  by  a  simple  majority  of  votes  cast  at  the  meeting.  The  quorum  for a mee ting of  the Nomination  Committee  is a simple majority of all its members. Meetings of the  Nomination Committee are called by the Chairman of  the Nomination Committee. As  at 31 Dec e mber 2024, the following persons were  members of the Nomination Committee: Name Role Clare Ronald Clarke Chairman of the Committee Gabriel Eichler Member of the Committee Zuzana Prokopcová Member of the Commi ttee In 2024 the Nominatio n Committee held four meetings,  which were attended by all member s.  4.11.1.2 Remuneration Committee The  Remuneration  Committee  is  a  supporting  and  advis ory body of the Supervisory Board. Th e commi ttee  consists of three members elected and recalled by the  Supervisory Board from amo ng its own members, with  the majority of its members being independent.  The Remunerati on Committee shall, in particular: a)  establish the remuneration strateg y for the Bank; b)  establish  and  maintain  remune ration  principles  of new and existing members of the Management  Board and Material Ri sk Takers; c)  review  and  approve  all  aspects  of  fixed  and  variable remuneration of the Management Board;  d)  approve the Remuneration Report; e)  comment  on  remuneration  matters  of  Material  Risk Takers, as they arise; f)  review  and  approve  all  aspects  of  f ixed  and  variable compensation for th e position of Director  Internal Audit and Director Compliance; and g)  exercise other powers and resp onsibilities vested  to  the  Remuneration  Committee  by  applicable  law,  the  Bank’s  Articles of  Association or  by the  Bank’s  internal  rules,  to  the  extent  that  those  comply with applicable law. The  Remuneration  Committee  makes  decisions  by  a  simple  majority  of  votes  cast  at  the  meeting.  The  quorum for a meeting of the Remuneratio n Committee  is a simple majority of all its members. Meetings of the  Remuneration Committee are called by the Chairman  of the Remuneration Committee. 93 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 As  at 31 Dec e mber 2024, the following persons were  members of the Remuneration Committee: Name Role Clare Ronald Clarke Chairman of the Committee Miroslav Singer Member of the Committee Gabriel Eichler Member of the Committee In  2024  the  Remuneration  Committee  held  five  meeting s , which were attended by all m e mbers. 4.11.1.3 Risk Committee The Risk Commi ttee is a supporting and advisory body  of  the  Supervisory  Board. The committee consi sts  of  three membe rs elected and recalled by the Superviso ry  Board from among its own members, with the majority  of members being independent. The Committee shall in particular: a)  advise the Supervisory  Board on the Bank’s overall  current and future risk approach, risk strategy and  risk appetite;  b)  assist  the  Supervisory  Board  in  overseeing  the  implementati on of  the risk strategy  by  the Bank’s  senio r management; c)  on  a  quarterly  b asi s ,  review  the  regulatory  risk  profile of the Bank or any of its subsidiaries; d)  on a quarterly basis, r eview the Group’s IT security  polic ies and measures; e)  on  a  quarterly  basis,  monitor  major  regulatory  risks or issues along with compliance with the risk  appetite and with all other risk policies (as approved by the Management Board) and oversee any actions  taken as a result of material risk policy breaches; f)  on  a  quarterly  basis,  oversee  changes  in  the  Group’s  regulatory  risk  mana gement  environment  and other emerging risks and monitor the Group’s  preparedness for such changes; g)  on a quarterly basis, oversee the Group’s capi tal and  liquidity  position  through  escalation  and  regular  reporting  from  the  Enterprise  Risk  Management  Committee  (“ERMC”)  and  the  Asset  and  Liability  Committee (“ALCO ”); h)  on  an  annual  or  as  required  basis,  review  information  and  r e ports  on  key  management  and  control  functions  (including  but  not  limited  to,  the  ERMC  and  the  ALCO  to  assess  the  level  and nature of the risks the Group is facing and to  make  recommendations  to  the  Management  and  Supervisory  Board  to  adjust  its  risk  appetite  if  necessary); and i)  provide other activities pertaining to business risk s  of the Bank. The  Risk  C ommittee  makes  decisions  by  a  simp le  majority of votes cast at the meeting. The quorum for  a meeting of the Risk Committee is a simple majority  of all its members. Meetings of the Risk Committee are called by the C hairman of the Risk Committee. As  at  31  Decembe r  2024 the  following  persons were  members of the Risk Committee: Name Role Miroslav Singer Chairman of the Committee Denis Arthur Hall Member of the Commi ttee Kateřina Jirásková Member of the Committee In 2024, the Risk Committee held four meetings, which were attended by all members. 4.11.2 Committees Established by the Management Board The  committees  established  by  the  Mana gement  Board,  their  roles  and  responsibilities,  and  their  composition  as  at  31  December  2024  are  listed  below. 4.11.2.1 Asset & Liability Committee The  Asset  &  Liability  Committee  (“ALCO”)  is  responsible fo r  the management and  coordination  of  activities in the area of asset & liability management,  capital, market risk  and liquidity  r isk management of  companies of the Group. In 2024, ALCO meetings were  held on a monthl y basis.  Its main responsibilities include:  a)  advising  the  Mana gement  Board  in  the  area  of  asset  & liability management, c apital, market and  liquidity risk management;  b)  monitoring market and liquidity risk, asset & liability  structure, capital, capital requirements (regulatory and internal) and capital adequacy;  c)  approving remediation measures in case of adverse  trends or limited b reaches;  d)  approving methods, scenar ios and limits; including  limits for funding;  e)  approving  investment  products  and  transaction  limits for Treasury transactions;  f)  approving  investment  strategy  for  Treasury  transactions;  g)  approving Funds Transfer Pricing methodology;  h)  approving hedging strategy;  i)  assessing the profitability of Treasury transactions; j)  di scussing  and  appr oving  documents  related  to  the resolvability in the area of its competence and  taking measures in case of identified deficiencies. 94 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 The ALCO makes decisions by a simple majority of votes  present  at  the  meeting.  The  quorum  for  a  meeting  of  the  ALCO  is  half  of  its  voting  members  exercising  a  simple  majority  of  votes  of  all  voting  members.  If absent, a voting member of the ALCO may ap point  another  voting  member  to  exercise  hi s  or  her  voting  rights. Non-voting members have no voting rights. As at 31  December 2024, the following positions were  members of the ALCO: Members Voting members Chi ef Financial Officer (Chair) Chi ef Executive Of ficer (Vi ce-Chair) Chi ef Risk Officer Chi ef Commercial Banki ng Officer Chi ef Retail Banki ng Officer Senior Manager Treasury Non-voting members Director Legal Se nior Manager Enterprise Risk Management Senior Manager Financial Planning and Business Performance Manager ALM 4.11.2.2 Credit Committee The Credit Committee (“CRCO”) is responsible for the  management and coordination of a ctivities in the area  of  credit  risk  of  the  Group.  In  2024,  CRCO  mee tings  were held on a weekly b asis. Its main responsibilities include:  a)  advising the Management Board conce rning credit  risk;  b)  maintaining  prope r  methods  for  credit  risk  management;  c)  managing the credit portfolio and its limits as well  as collateral, including setting action plans in cas e  of limit breaches;  d)  approving credit-r isk-related stress tests  and othe r  parameters and monitoring of their resul ts;  e)  tracking  and  assessing  the  changes  of  macro-economic  enviro nment  as  well  as  external  legislation  and  regulation  relevant  for  credit  risk  management;  f)  keeping the internal control system and processes  for credit risk management efficient and ade qu ate;  g)  informing  other  relevant  bodies  of  the  Group  about  significant  events  in  the  area  of  credit  risk  management;  h)  evaluating,  approving  and  monitoring  large  exposures,  including  those  towar ds  financial  institutions, governments and countries;  i)  monitoring of loan-loss allowances and their overall  trends; and  j)  tracking  large  defaulted  exposures  and  credit  frauds. The CRCO makes decisions by a simple majority of votes  present at the mee ting. The quorum for a meeting of  the CRCO  is  two (until 30  December 2024 half) of its  voting membe rs exercising a simple majority of votes  of  all  votin g  members.  If  absent,  a  voting  member  of  the CRCO  may appoint  another  voting  member  to  exercise his or her voting rights. Non-voting members  have no voting rights. As at 31  December 2024, the following positions were  members of the CRCO: Members Voting members Chi ef Risk Officer (Chair) Chi ef Executive Of ficer (Vi ce-Chair) Chi ef Financial Officer Chi ef Commercial Banki ng Officer Chief Retail Banking Officer Non-voting members Senior Manager Commercial Risk Chi ef Risk Officer of the Building Saving s Bank Se nior Manager Collections Se nior Manager Ret ail & Small Business Risk Se nior Manager Enterprise Risk Management 4.11.2.3 Enterprise Risk Management Committee The Enterprise Risk Management Committee (“ERMC”)  is responsible for the management and coordination of  activities in the area of risk management framework ,  model risk management and internal capital adequacy  asses sment process (“ICAAP”)  of the  Group.  In  2024,  ERMC meetings were held on a monthly basis. Its main responsibilities include:  a)  advising the Management Bo ard concerning the risk  management framework ,  model  risk management  and ICAAP;  b)  monitoring  of  effectiveness  and  adequacy  of  the  risk management framework;  c)  ensuring  effecti ve,  efficient  and  re liable  methods  for risk management;  d)  reviewin g risk management limits;  e)  discussing  and  appr oving  documents  relating  to  resolvability  in its area  of  competence  and tak i ng  measures in case of recognised deficiencies f)  reviewing  and  appr oving  information  security  principles;  g)  approving ICAAP principles and remedial measures  in case of recognised deficiencies;  95 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 h)  monitoring risks identified within I CAAP; and  i)  approving m ethodology for risk-weighted assets. The ERMC makes decisions by a simple majority of votes  present  at  the  meeting.  The  quorum  for  a  meeting  of  the ERMC  is  half  of  its  voting  members exercising  a  simple  majority  of  votes  of  all  voting  members.  If  absent,  a  voting  member  of  the  ERMC  may  appoint  another  voting  member  to  exercise  hi s  or  her  voting  rights. Non-voting members have no voting rights. As at 31  December 2024, the following positions were  members of the ERMC: Members Voting members Chi ef Risk Officer (Chair) Chi ef Executive Of ficer (Vi ce-Chair) Chi ef Financial Officer Chi ef Commercial Banki ng Officer Chi ef Operating Of ficer Non-voting members Director Legal Director Compliance Se nior Manager Enterprise Risk Management Se nior Manager Treasury 4.11.2.4 Operational Risk Committee The  Operational  Risk  Committee  (“ORCO”)  is  responsible fo r  the management and  coordination  of  activities in the area of  o perational risk management  and the internal control system of the Group. In 2024, ORCO meetings were held on a monthly basis. Its main responsibilities include:  a)  advising  the  Management  Board  concerning  the  operational risk management and  internal  control  system;  b)  monitoring  of  effectiveness  and  adequacy  of  the  internal control system;  c)  ensuring  effecti ve,  efficient  and  re liable  methods  for operational risk management;  d)  approving  limits,  scenarios,  Key  Risk  Indicators  and  other  parameter s  used  in  operational  risk  management;  e)  monitoring  trends  and  limits  in  operational  risk  and approving remedial actions in case of adverse  trends.  The ORCO makes decisions by a simple majority of votes  present  at  the  meeting.  The  quorum  for  a  meeting  of  the ORCO  is  half  of  its voting  members exerc ising  a  simple  majority  of  votes  of  all  voting  members.  If  absent,  a  voting  member  of  the  ORCO  may  ap point  another  voting  member  to  exercise  hi s  or  her  voting  rights. Non-voting members have no voting rights. As at 31  December 2024, the following positions were  members of the ORCO: Members Voting members Chi ef Risk Officer (Chair) Chi ef Executive Of ficer (Vi ce-Chair) Chi ef Financial Officer Chi ef Operating Of ficer Chi ef Retail Banki ng Officer Se nior Manager Enterprise Risk Management Non-voting members Director Legal Director Compliance Chi ef Shared Services Offi cer Chi ef Digital Officer Director IT Infrastructure & Enterprise Service s Se nior Manager AML & Collateral Management Se nior Manager Risk Models & Fraud Management Manager Operational Risk and Risk Governance 4.11.2.5 Business Review Committee The Business Review Committee is responsible for the  management and coordination of a ctivities in the area  of prices, fees and commissions of the Group. In 2024,  Business Review Committee meetings were hel d on a  monthly basis. The Business Review Committee mainly:  a)  reviews and approves pricing plans and the Group’s  pricing strategy; b)  approves rates and fees for particular products;  c)  ensures compliance of rates, fees and commissions  with legal and regulatory r equirements; and  d)  approves  parameters  and  conditions  o f  contracts  with external partners. The  Business  Review  Committee  makes  de cisions  by  a simple majority of votes present at the meeting. The  quorum for a meeting of the Business Review Committee  is half of its voting members exercising a simple majority  of  votes  of  all  votin g  memb e rs.  If  absent,  a  voting  member of the Business Review Committee may appoint  another  voting  member  to  exer cise  his  or  her  voting  rights. Non-voting members have no voting rights. 96 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 As at 31  December 2024, the following positions were  members of the Business Review Committee: Members Voting members Chi ef Executive Of ficer (Chair) Chi ef Financial Officer (Vice- Chair) Chi ef Commercial Banki ng Officer Chi ef Risk Officer Chi ef Retail Banki ng Officer Senior Manager Financial Planning and Business Performance Non-voting members Se nior Manager Term Loans  Manager Product Finance & Sales Incentives Se nior Manager Treasury  Se nior Manager Deposits & Cards Se nior Manager Investments & Insurance Director Retail Distribution Se nior Manager Products Development Se nior Manager Small Business Managing Director MONETA Aut o 4.11.2.6 Compensation Committee The  Compensation  Committee  is  responsible  for  the  management and coordination of a ctivities in the area  of  compensations  and  benefits  for  the  employees  of  the  Group.  In  2024,  Compensation  Co mmittee  meeting s were he ld on a quarterly basis. The main responsibilities include:  a)  preparing  compensation  strategy  and  communicating  the  benefit  and  compensation  philosophy to the employees;  b)  proposing  to  the  Bank’s  Management  Board  positions  into  the  Material  Risk  Takers  category  and  reviewing  and  appr oving  individual  changes  in their  wages (except for members of  the  Bank’s  Management Board);  c)  reviewing,  discussing  and  approving  of  i ndividual  exceptions in employee’s co mpensation above the  level defined by internal policies; d)  reviewin g and approving  o f promotio n s , offers and  salary changes for str ategic positions; e)  approving  of  incentive  programmes  and  their  payouts,  payments  exceeding  the  approved  programme  bud gets  an d  incentive  payments  out side the currently valid incentive programmes. The  Compensation  Committee  makes  decisions  by  a  simple majority of votes present  at  the  meeting. The  quorum for a meeting of the Compe nsation Committee  is  half  of  its  voting  members.  Non-voting  members  have no voting rights. As  at 31 Dec e mber 2024, the following persons were  members of the Compensation Committee: Members Voting members Chi ef Executive Of ficer Chi ef Financial Officer Chi ef Risk Officer Chi ef Commercial Banki ng Officer Chi ef Operating Of ficer Chi ef Retail Banki ng Officer Non-voting members Director Human Resources (Chair) 4.11.2.7 Compliance and Anti-Fraud Committee The  Compliance &  Anti-Fraud  Committe e  (“CA FC”)  is  responsible fo r  the management and  coordination  of  activities  in  the area  of internal  controls, compliance  risk, anti-fraud management and prevention in the area  of anti-money laundering and combating the financing  of terrorism (“AML/CFT”) of companies of the Group.  In 2024, CAFC meetings were held on a quarterly basis. Its main responsibilities include:  a)  using reliable,  efficient and  effective  methods  for  managing complian ce risk;  b)  maintaining  a  reliable  and  integrated  framework  for managing compliance risk;  c)  approving methods  and  limits  for  compliance  risk  management;  d)  approving remedial measures in case of identified  deficiencies of internal controls;  e)  reviewing  of  new  le gislation  and  regulatory  requirements  and  addressing  responsibility  for  their implementation;  f)  reviewing  anti- fraud  re ports  and  approving  material  remedial  measures  in  the  area  o f  anti- fraud management; and  g)  approving and deciding on actions to remedy any  deficiencies  and  regularly  reviewing key  AML/CFT  metrics. The CAFC makes decisions by a simple majority of votes  present  at  the  meeting.  The  quorum  for  a  meeting  of  the  CAFC  is  half  of  its  voting  members  exercising  a  simple  majority  of  votes  of  all  voting  members.  If  absent,  a  voting  member  of  the  CAFC  may  appoint  another  voting  member  to  exercise  hi s  or  her  voting  rights. Non-voting members have no voting rights. 97 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 As at 31  December 2024, the following positions were  members of the CAFC: Members Voting members Director Compliance (Chair) Chi ef Risk Officer (Vic e-Chair) Chi ef Executive Of ficer Chi ef Financial Officer Chi ef Operating Of ficer Chi ef Commercial Banki ng Officer Non-voting members Chi ef Retail Banki ng Officer Chi ef Shared Services Offi cer Director Human Resources Se nior Manager AML & Collateral Management Manager Operational Risk and Risk Governance 4.11.2.8 Business Continuity Management Committee The  B usiness  Continuity  Management  Committee  is  responsible  for  the  activities  in  the  area  of  busi ness  continuity mana gement (“BCM”) of the Gr oup. In 2024,  Business Continuity Management Committee meetings  were held on a quarterly basis. Its main responsibilities include:  a)  reviewing and recommending the BCM Programme  and  consolidated  evaluation  of  Business  Impact  Analysis for the Management Board’s approval;  b)  approving  the  background  for  the  Management  Board’s  d ecision  on  the  scope  of  the  Business  Impact Analysis;  c)  determining further requirements for managing the  risks related to maintaining business continuity;  d)  reviewin g  and  assessing  control  reports  of  regulatory  authorities  in  the  area  of  business  continuity management; e)  reviewing BCM test scenarios and their evaluati on  and  approving  corrective  actions  to  address  identified deficiencies; and f)  monitoring the progress of the B CM Programme. The  Business  Continuity  Management  Committee  makes  d ecisions  by  a  simple  majority  of  votes  of  members or their deputies present at the meeting; in  the case of a tied vote, the chairperson’s vote is decisive.  The quorum for a meeting of the Business Continuity  Management  Committee  is  a  simple  majority  of  all  its members o r  their deputies, and present members  exceed  present deputies. If  abs e nt,  a member  of the  Business  Continuity  Management  Committee  may  appoint a deputy to exercise his or her voting rights. As at 31  December 2024, the following positions were  members  of  the  Business  Continuity  Management  Committee: Members Voting members Chi ef Shared Services Offi cer (Chair) Director IT Infrastructure & Enterprise Service s (Vice-Chair) Chi ef Digital Officer Director Compliance Director Human Resources  Manager Security (Shared Services Division) Se nior Manager Products Development   (Commercial Banking Division) Se nior Manager Treasury (Finance Division) Manager Operational Risk and Risk Governance  (Risk Manageme nt Division) Se nior Manager Payments & Customer Service   (Building Savings Bank) Se nior Manager Deposits & Cards (Retail Banking Division) Manager Dealer Management, Sales (MONETA Auto) Managing Director (MONETA Leasing) 4.11.2.9 Sustainability Committee The  Sustainability  Committee  is  responsible  for  the  management and coordination of a ctivities in the area  of environmental, social and governance („ESG“) of the  Group. In 2024, the Sustainability Committee meetings  were held on a quarterly basis. Its main responsibilities include:  a)  advising the Management Board in the area of ESG; b)  discussing the Group’s ESG strategy and propo si ng  it to the Management Board for approval; c)  discussing  ESG  reports  (at  least  quarterly)  on  the  achievement of the objectives set out in the Group’s  ES G strategy and deciding on remedial measures in  case of adverse trends;  d)  asse ssing changes in the surrounding environment  (in particular, the regul atory and le gal environment  and  significant  external  events)  relevant  to  ESG  in  order  to  identify  risks  and  opportunities  and  take  appropriate  action  to  mitigate  risks  or  take  advantage of such opportunities. The  Sust ainability  Committee  makes  decisions  by  a  simple majority of votes present  at  the  meeting. The  quorum for a meeting o f the Sustainability Committee  is  half  of  its  voting  members  exercising  a  simple  majority  of  votes  of  all  voting  members.  If  absent,  a  voting  member  of  the  Sustainability  Committee  may  appoint another voting member to exerc ise his or her  voting rights.  98 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 As at 31  December 2024, the following positions were  members of the Sustainability Committee: Members Voting members Chi ef Executive Of ficer (Chair) Chi ef Risk Officer (Vic e-Chair) Chi ef Financial Officer Chi ef Commercial Banki ng Officer  Chi ef Operating Of ficer  Chi ef Retail Banki ng Officer Non-voting members Chi ef Shared Services Offi cer Director Human Resources Director Compliance Se nior Manager Sustainability, Talent Acquisition & Development 4.11.2.10 MON FAIR Committee MON FAIR is an advisory committee to the Management  Board  for  diversity,  fair  treatment  and  inclusion  of  employees.  In  2024  MON  FAIR  Committee  meetings  were held on a monthly basis. Its main responsibilities include:  a)  oversees  the  equal  remuneration  of  men  and  women  working  in  co mparable  positions  and  develops  support  programme s  to  increase  the  number of women in managerial positions; b)  oversees the inclusion of disab led colleagues; c)  focuses on removing  ine qu alities towards LGBTQ+  employees; d)  prepares  support  programmes  for  employees  on  maternity and parental leave in order to facilitate  their return to working environment and supports  the  balance  between  family  and  work  life  of  employees who are parents;  e)  sets  up  intergenerational  dialogue,  supports  informal care givers and chronic ally ill employees; f)  plans activities to broaden the scope of employee  care in th e area of di versity and inclusion in order to  cover the widest possible range of topics.  MON  FAIR  makes  decisions  by  a  simple  majority  of  votes  of  pres e nt  voting  memb e rs.  The  quorum  for  a  meeting  of  the  MON  FAIR  is  a  simp le  major ity  of  all  voting members. As at 31  December 2024, the following positions were  members of the MON FAIR: Members Voting members Director Human Resources (Chair) Se nior Manager Investor Relations Se nior Manager Deposits & Cards 4.12 INTERNAL AUDIT The  Internal  Audit  function  operates  in  accordance  with CNB Decree No. 163/2014 Coll ., as amended. The  Internal Audit and its activities follow the International  Professional  Practices  Framework  issued  by  the  Institute of Internal Auditors. The  Internal  Audit  in  a  complete  and  interconnected  manner,  covers  all  activities  within  the  Bank  and  focuses  on  identifying  risks  to  which  the  Bank  is  exposed.  The  Internal  Audit  provides  objective  and  independent  assurance  to  the  Management  Board,  the Audit Committee and the Supervisory Board as to  the  functionality  and  efficiency  of  risk  management,  control and governance processes within the Bank. In 2024, the Internal Audit completed  the delivery of  the  2021–2024  audi t  cycle  according to  the  Strategic  Audit  Plan.  The  Internal  Audit  executed  assurance  engagements  in  accordance  with  the  Strategic  an d  Periodic Audit Plans based on regular risk assessments  and  reflecting  regulatory  requirements.  In  2024,  the  Internal Audit delivered the Audit Plan and evaluated  relevant auditable processes in the Group and issued  in total 36 audit reports for assurance engagements. The  Internal  Audit  evaluates  the  Internal  Control  System  of  the  Bank.  The  results  of  this  assessment  are issued annually in the Report on Evaluation of the  Functionality  and  Efficiency  of  the  Internal  Control  System.  In  this  Report,  issued  in  2024,  the  Internal  Audit evaluates the Internal Control System of the Bank as functioning and effec tive.  4.13 INFORMATION ON INTERNAL CONTROL AND APPROACH TO RISKS IN THE PROCESS OF ACCOUNTING AND PREPARING FINANCIAL STATEMENTS The  Group  uses  v arious  techni cal  and  governance  measures in order to maintain its financial statements.  These measures ensure compliance with the relevant  accounting standards and provide users of the financial  99 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 statements with  a  true  and  fair  view  of  the  financial  position,  equity po sition, c ash  flows  and  profitability  of the Group. These measures comprise internal governance, namely  the  Group’s  consistent  accounting  poli cies,  and  process  set-up.  This  means  multi-level  controls  over  transactions being recorded, and maximum attention being  paid  to  the  automation  of  b ooking  accounting  entries. Pursuant  to  Act  No.  563/1991  Coll.,  on  accounting,  as  amended,  the  Bank  and  its  subsidiary  Building  Savings  Bank  p resent  their  financial  st atem e nts  in  accor dance with IFRS. Subsidiaries MONETA Auto and  MONETA Leasing prepare their financial statements in accor dance with Czech Acc ounting Standards and are  subject to IFRS consolidation at the Group l evel. The  Group  maintains  its  accounting  ledgers  through  Oracle  Financials,  using  inputs  of  several  auxiliary  systems which are regularly subject to internal testin g  as  an  important  comp onent  of  the  Group’s  financial  reporting environment. Governance  and  process  set-up  measures  control  the  circulation  of  documents  suppo rting  the  journal  entries. As a key rule, any accounting record may only be posted on the basis of the mul ti-level approval process.  This rule excludes any possibility of a single employee having more than one role in the hierarchy. Approval  takes  place  online  through  the  approval  process  in  Oracle’s  accounting system. In  terms of or ganisation,  the accounting function is separated from the process  of managing business partners (e.g., the setup of bank accounts or payment condition s) or procurement.  Only  users  with  appropriate  rights  have  access  to  the  accounting  s ystem.  Access  rights  for  the  system  are  granted  by  means  of  a  software  application  and  are  subject  to  appr oval  by  b oth  a  superior  and  by  the  own e r  of  the  accounting  process.  Access  is  provided according to the employee’s job position  and  reviewed  on  a  regular  basis.  Only  employees  of  the  relevant de partment have rights for active operations  (posting)  in  the  accounting  system.  The  accounting  system  maintains  an  audit  trail  which  allows  for  the  identification  of  th e  user  that  created,  changed  or  reverse d any accounting record. The  Group  has  established  a  system  of  defining  responsibilities  for  the  groups  of  individual  balance  sheet  accounts  (known  as  the  reconciliation  system)  whereby  a  specific  employee  is  responsible  for  reconciling a  particular  account or group  of  accounts  in  the  general  ledger  with  independent  back-up.  Control  over  th e  account  reconciliation  is  tracked  in  the  reconciliation  sys tems  on  a  mo nthly or  qu arterly  basis and is approved by a superior and, on an ad hoc  basis, by a senior member of the finance department  (always different from the person who is preparing or reviewing the reconciliation). Within the reconc i liation  process, the Group stipulates several criteria for p roper  account  reconciliation,  such  as  the  exact  description  of  the  account,  timeliness,  independe nt  supporting  documentation  and  its  accessi bility,  and  manager  oversight control.  The  correctness  of  the  accounts  and  presented  financial statements is monitored on an ongoing basis.  In  addition,  annual  financial  statements  are  audited  by  an  external  auditor  who  carries  out  the  audit  of  separate  and  consolidated  financial  statem ents  as  at  the  balance  sheet  date,  i.e.,  31  December  of  a  given  year. 4.14 CORPORATE GOVERNANCE BUILDING BLOCKS The  corporate  governance  structure  of  the  Bank  complies  wi th  Act  No.  90/2012  Coll.,  on  business  corp orations  and  co-operatives,  as  amended  (hereafter the “Business Corporations Act”), as well as stringent  requirements  under  Czech  and  EU  banking  regulation and international  capital markets corporate  governance  s tandards.  This  ensure s  that  the  Bank  maintains  a  high  s tandard  of  transparency,  over sight  and accountability. Rather  than  adopting  an  external  corporate  governance  code,  the  Bank  has  chosen  to  rely  on  its  own  r obust  governance  practices,  as  outlined  in  the  Articles  of  Association  and  detailed  throughout  this  Annual  Financial  Report.  This  approach  allows  the  Bank  to  provide  a  governance  structure  that  is  understandable, transparent and tailored to its specif ic  operations and stakeholders.  The  Bank’s  corporate  governance  is  b ui lt  on  the  following  building  blocks  and  principles  that  guide  governance across the Group:  Sharehold e rs – The Bank’s significant shareholders have  a sound reputation, integrity, professional co mpetency  and  a  stable  fi nancial  situation.  The  shareholders’  right  to  participate  in  the  management  of  the  Bank  is  exercised  mainly  through  their  participation  and  decisions at th e General Meeting. The General Meeting  is  authorised  to  decide  on  mat ters  falling  under  established areas of competence. More informatio n on the General M eeting is available  in Chapter 4.2 of this Annual Financial Report – General  Meeting. Management  and  Supervisory  Bodies  –  In  order  to  ensure an effective oversight and management p rocess,  100 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 the  roles and responsibilities of the Superviso ry Board  and  the  Management  Bo ard  are  clearly  defined.  The  Management  and  Supervisory  Bodies  members  are  and remain quali fied, individually and coll ectively, for  their  positions.  They  understand  their  oversight  and  corp orate  governance  role  and  are  able  to  exercise  sound,  objective  judgement  in  all  the  affairs  i n  their  area of competenc e. More information on the Management and Supervisory  Bodies is available in Chapters 4.3 and 4.5 of this Annual Financial Report – Supervisory Board and Management  Board. Group Structure – The Bank, as a parent company, has  the overall responsibility for the Group and for ensuring  the establishment and operation of a clear governance  framework appropriate to the size, structure, business  complexity and risks of the Group and its entities. More information on the Group structure is available in Chapter 1 of this Annual Financial Report – Profile of  MONETA Money Bank and Its Subsidiaries. Risk  Management  Function  –  The  Bank  has  an  effecti ve independent risk management function (Risk  Management),  under  the  coordination  of  Chief  Risk  Officer  (CRO),  with  sufficient  statur e,  independence,  resources  and  a ccess  to  the  Management  and  Supervisory  Bodies.  Risks  are  identified,  monitored  and  controlled  on  an  ongoing  basis.  The  Bank’s  risk  management  and  internal  control  infras tructure  is  reviewed and enhanced whenever changes arise in the  Bank’s risk profile, to the external risk landscape or in  industry practice. More information on the Risk Management Function is  available in Chapter 5 of this Annual Financial Report –  Risk Management. Compliance  Function  –  The  Bank  has  an  effective  and  i ndependent  compliance  function  with  sufficient  authori ty,  resources,  and  direct  acce ss  to  the  Management and Supervisory Bodies. It is  responsible  for  identifying,  assessing,  monitoring,  and  reporting  compliance  risks.  The  compliance  function  within  the  Bank  is  carried  out  in  cooperation  with  other  departments  by  the  Compliance  Department,  under  the  leadership  of  the  Director  of  Compliance.  Its  primary role is to e n sure that the Bank adheres to all  relevant legal an d r egulatory requirements. In addition,  the Compliance Department advises the Management  Board  and  oth e r  Bank  departments  on  compliance  matters, manages the internal regulatory base, ensures  data protection, organises regular compliance training,  and condu cts c ompliance testing, along with other key  activities. More  information  on  the  Compliance  Function  is  available  in  Chapter  5.5  of  this  Annual  Financial  Report – Operati onal Risk. Internal Audit Function – The Internal Audit Function  (Internal  Audit)  provides  independent  assurance  to  the  Management  and  Supervisory  Bodies  as  well  as  support in promoting an effective governance process  and the long-term soundness of the Bank. More  information  on  the  Internal  Audit  Function  is  available  in  Chapter  4.12  of  this  Annual  Fi nan cial  Report – Internal Audit. Remuneration  –  The  Bank’s  remuneration  structure  supports  sound  corporate  governance  and  risk  management. More  information  on  remuneration  is  available  in  Chapter  4.8  of  this  Annual  Financial  Report  –  Remuneration  and  Benefits  of  Members  of  the  Supervisory  Board,  the  Management  Board  and  Key  Executive Managers. Disclosure and Transparency – The governance of the  Bank  is  ade quately  transparent  to  its  shareholde rs,  depositors,  othe r  relevant  clients  and  market  participants. T he Bank ensures appropriate disclosures  and transparenc y towards its stakeholders in line with  applicable  regulatory  require ments.  The  Bank  has  implemented a formal policy in order to ensure mainly:  (i) identification of all regul atory requirements related  to  public  disclosures,  (ii)  disclosure  is  in  accordance  with all app licable standards, regulatory re qui rements  and applicable law, (iii) disclosure content, format and roles  and  responsib i lities  with  regards  to  disclosure  development  for meeting the reg ulatory re qui rements  or (iv) assessm e nt of the appropriateness of disclosures,  including their verific ation and frequency.  The  Supervisory  Board  and  the  Management  Board  are  responsible  for  establishing  and  maintaining  an  effecti ve internal co ntrol structure over the disclosure  of  fi nan cial  information .  They  must  also  ensure  that  an appropriate review  of  the disclosures takes  pla ce.  As  part  o f  maintaining  an  effec tive  internal  control  mechanism over the disclosure of financial information,  the Audit Commit tee oversees the financial statements  preparation,  creation  and  closing  process,  and  the  process of the external statutory audit. More information on corporate governance prepar ed  in  line  with  the  Corporate  Sustainability  Reporting  Directive  (“CSRD”)  is  available  in  Chapter  13  “Sustainability Statement”.  101 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 4.15 REMUNERATION CHARGED BY EXTERNAL STATUTORY AUDITORS OF THE GROUP IN 2024 CZK m Bank Group Statutory audit 13 19 Other assurance services 9 13 13 Other services 10 2 2 Total (incl. VAT) 28 34 4.16 OTHER LEGAL REQUIREMENTS The summary explanatory report pursuant to Section  118(4)  of  the  Capital  Markets  Act  is  based  on  the  requirements set forth in Section 118(5)(a) through (k)  of the Capital Markets Act. a)  Information on  the structure  of  the Bank’s  equity  on a consolidated basis as at 31 December 2024: CZK m Share capital 10,220 Sta tutory res erve 102 Other Reserves 11 1 Retained earnings 21,556 Total equity 31,879 As at 31 Dece mber 2024, the registered share capital  consiste d of 511,000,000 shares, with a nominal value  of CZK 20 each. The issue price of all shares has been  paid up in full. All the shares were is sued as regi stered  book-entry shares. The Bank’s registered share capital is divided exclusively  into common shares, with no special rights attached.  All of the Bank shares have been admitted to trading  on the Prime Market of the Prague Stoc k Exchange in  the Czech Republic. b)  Information on restrictions of the transferability  o f  securities: The tran sferability of the Bank shares is not restricted. c)  Information on significant direct and indire ct shares  in the Bank’s voting rights: Please, r efer to Chapter 1 “Profile of MONETA Money  Bank  and  Its  Subsidiaries”  section  “Shareh older  Structure”  for information on (i) the entities recorded  in  the  registry  of  book-entry  shares  maintained  by  9    Other assurance services which are allowed to be provided by statutory auditor pursuant to the Act on Auditors, in particular Quarterly financial review, ESG  reporting audit, Review of Remuneration report and issued bond comfort letter (CZK 5 million being part of amortised cost of the issued bonds). 10   Other non-audit services, which are allowed to be provided by statutory auditor pursuant to the Act on Auditors, in particular MiFID R eporting, Review of  Internal control system requested by the CNB, proofread of the Annual Financial Report and train ing. 11  Other Reserves represent reserve related to Cash Flow hedge revaluation.  the C zech Central Securities Depository in  Prague as  holding at least 1% of the registered share capital of  the Bank as at 31  December 2024 and (ii) the entities,  which notified the Bank an d the Czech National Bank  pursuant to Section 122 of the Capital Markets Act  o f  holding  a direct or  indirect proportion  of the  Bank’s  voting rights of at least 1% as at 31 De cember 2024. d)  Information  on  owner s  of  securities  with  spe cial  rights, including description of such rights: No special rights are attached to any of the Bank shares. e)  Informatio n on restrictions on voting rights: The voting rights attached to the Bank shares ar e not  restricted.  f)  Information on agreements between shareholders  that  may  restrict  or  limit  the  transferability  of  shares or voting rights: The  Bank  is  not  aware  of  any  a greements  between  its  shareholders  that  might  restrict  or  limit  the  transferability of its shares or voting rights. g)  Infor mati on on special rules for the election of and  recalling of membe rs o f th e Management Board and  amendments to the Bank’s Articles of Associatio n: Pursuant to the Bank’s Articles of Association, members of  the  Management  Board  are  elected  an d  removed  by the Supervisory Board by a simple majority of the  votes of the Supervisory Board members present at a  meeting. The  Articles  of  Association  may  be  amended  by  a  decision  of  the  Ge neral  Meeting  by  a  qualif ied,  two-third majority of the votes cast by the shareholders  at the General Meeting.  Apart  from  regulatory  prudential  requirements,  no  special  rules  are  in  place  for  the  election  of  and  recalling of  member s  of  the  Management  Board  and  for ado ption of the amendme nts to the Bank’s Articles  of Association. h)  Information  on  special  powers  of  the  Bank’s  Management Board: The  Bank’s  Management  Board  has  n o  such  special  powers. 102 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 i)  Information  on  significant  contracts  relating  to  change  in  control  over  the  Bank  as  a  result  of  a  takeover bid: The  Bank  has  not  entered  into  signific ant  contracts  that will becom e effective, change,  or expire if c ontrol  over the Bank changes as a result of a takeover bid. j)  Information  on  co ntracts  with  members  of  its  Management  Board  or  its  employees  binding  the  Bank in relation to a takeover bid: Based  on  their  service  contract s,  members  of  the  Management  Board  are  entitled  to  receive  a  monthly  payment for a period of 12 months or nine months after  the  end  of  their term  (subject to  specified conditions)  in  the  amount  o f  fixed  monthly  remuneration  paid  during the term of their office (hereinafter the "Salary  Continuance"). In the event that their office is terminated  within a period of one year after the event, which results  in  a  change  o f  control  over  the  Bank,  which  may  also  occur  in  connection  with  a  t akeover  bid,  members  of  the Management Board may be entitled to an increased  Salary  Continuance.  This  entitlement  arises  if  the  acquirer  of  co ntrol  over  the  Bank  pay s  in  connection  with the acquisition of control a premium in excess  of  the average price of the Bank’s shares (hereinafter the  "Share  Premium").  In  the  event  of  termination  of  the  office  due  to  non-renewal,  dismissal  or  redundancy  during the per iod, members of the Management Boar d  are entitled to rec eive 12 or nine twelfths respectively,  of the most recently awarded bonus under the Executive  Variable Incentive Programme in a lump sum payment at  the end of the salary continuance p e riod.  The  additional  amount  of  S alary  Continuance  shall  be  determined  on  the  basis  o f  the  share  premium  reflecting  MONETA  Money  Bank’s  share  value  at  the  time of the Change of Control event and calculated as  follows: i.   Establishing  th e  begin  p rice  as  the  avera ge  daily  close of the Bank’s share price for the 20 trading days  immediately precedi ng the public announcement of  an intention to execute a Change of Control ii.   Establishing  the  end  price  as  the  average  dail y  close  of  the  B ank’s  shar e  price for  the  20  trading  days immediately preceding the C hange of Control,  which  brings  the  Share  Premium  expr e ssed  as  a  percentage  of  increas e  in  the  Bank’s  share  price  compared to the begin price, if any; iii.   Multiplier  of  eligible  Salary  Continuance  amount  (Base Salary) is linked to Share Premium as follows: •  Share pre mium 5–15% – multiplier 0.25, •  Share pre mium 15.1–20% – multiplier 0.5, •  Share pre mium 20.1–25% – multiplier 1.0, •  Share pre mium 2 5.1–30% – multiplier 1.25, •  Share pre mium > 30% – multiplier 2.0. The  aim  of  the  above  arrangement  is  to  motivate  members  of  the  Management  Board  to  ensure  that  the acquirer of the control pays the highest possible  Share  Premium  in  connection  with  the  acquisition  of  c ontrol.  This  measure  further  strengthens  the  alignment  of the  motivation  of  the  members of  th e  Management Board  with the interests of  the  Bank’s  shareholders. According to  their  contracts on  the  performance  of  office,  independent  members  of  the  Supervisory  Board  are  eligible  to  receive  a  monthly  payment  during  12  or  nine  m onths  after  the  termination  of  office in case the termination occurs within one year after the event, which results in a change of control  in the amount of fixed remuneration paid during the  term of the offic e. k)  Information  on  programmes  that  allow  acquiring  the Bank’s corporate securities: The  Bank  doe s  not  have  in  place  any  programmes  allowing  the  acquisition  of  securities  issued  by  the  Bank. 4.17 REPORT ON RELATIONS As  the  Bank  did  not  have  any  controlling  person  in  2024, n o report on relatio ns according to the Business  Corporations  Act  was  prepared  for  the  accounting  period from 1 January 2024 to 31 December 2024. 4.18 RIGHTS ATTACHED TO SHARES OF THE BANK The  shar e s  of  the  Bank  are  freely  transferable,  fully  fungible and rank pari passu in all r e spects.  Un der the  Business  Corporations  Act  and  the  Bank’s  Articles  of  Association,  each of the Bank’s shareholders has, inter  alia, the following rights: 1.  A  pre-emptive  right  to  subscribe  for  a  pro  rata  portion of the shares in the Bank if the registered  share  capital  o f  the  Bank  is  in creased  by  cash  contributions  into  the  Bank  unless  that  the  pre-emptive  right  is  r e stricted  or  excluded  by  a  General Me eting resolution;  2.  A  pre-emptive  right  to  subscribe  for  a  pro  rata  portion  of  any  preference  or  convertible  bonds  unless  that  the  pre-emptive  right  is  restricted  or  excluded by a Ge neral Meeting resolution;  3.  A  right  to  participate  in  the  Bank’s  profi t  and  liquidation  balance  to  the  extent  approved  at  a  103 CORPORATE GOVERNANCE STATEMENT Annual Financial Report 2024 General Me eting;  4.  A right to atten d and vote at a General Meeting;  5.  A  right  to  receive  information  on  matters  re l ate d  to the Bank  or  its  subsidiar ies from the  Bank at  a  General Meeting if such information is necessary to  asses s items on the agenda of the General Meeting  or to exercise shareholder rights (and in particular,  voting rights);  6.  A  right  to  make  proposals  and  counterproposals  in  relation  to  items  on  the  agenda  of  a  General  Meeting; 7.  Within  three  months  following  th e  date  of  the  relevant General Mee ting, a right to challenge the  validity of resolutions of the G e neral Meeting in a  court ac tion against the Bank; and  8.  A  right  to  request  a  copy of  the  General  Meeting  minutes from the Management Board. 107 RISK MANAGEMENT Annual Financial Report 2024 5.   RISK  MANAGEMENT 5.1 RISK GOVERNANCE 5.1.1 Main Principles and Goals of Risk Management The Group  aims  to  achieve competitive returns at  an  acceptable ri sk  level as part of  i ts business a ctivities.  Risk management covers the control of risks associated  with all business activities in the environment in which  the Group operates, and ensures that the risks taken  are  in  compliance  with  regulatory  limits,  as  well  as  falling wi thin its risk appetite.  When managing risks, the Group relies on three pillars:  •  People  (the  qualifications  and  expe rience  of  its  employees);  •  Risk governance (including well-defined information  flows, pro cesses, models and r esponsibilities); and  •  Risk  data  (including  the  use  of  sophisticated  analytical instruments and technologies). This  combination  has  supported  the  Gro up’s  success  and the stability of its economic resul ts. The  Group’s  risk  management  processes  are  underpinne d  by  advanced  analytics,  based  on  an  enterprise-wide  data  war e house  and  a  centralised  underwriting  process.  This allows  the  Group  to  price  on  a  risk  basis,  according  to  its  in-house  scoring  and  rating models. The  level  of  risk  is  measured  in  terms  of  its  impact  on  the  value  of  assets  and/or  capital,  as  well  as  on  the profitability of  the Group. To  determine  this ,  the  Group evaluates the potential effects on its business of changes in political, economic, market and operational  conditions, as well as changes in clie nt creditworthiness. The  Bank  provi des  centralised  risk  management  for  the  Group  whe rever  po ssible  and  practical.  It  does  so  primarily  through  outsourcing  or  by  providing  methodology guid ance to other Group members.  This chapter descr ibes the main principles and rules of  credit,  market  and  liquidity  risk  management  within  MONETA .  More  information  on  MONETA’s  approach  to  risk  management  is  available  in  section  44  “Risk  Management”  of  the  Notes  to  the  Consolidated  Financial Statements of MONETA Money Bank, a.s. 5.1.2 Risk Management Organisational Structure The  B ank’s  key  committees  for  ri sk  management  of  the Group, as established by the Bank’s Management  Board, are:  •  Enterprise Risk Management Committee (“ERMC”),  for  the  risk  management  framework,  internal  capital  ad equacy  assessment  proc e ss,  an d  model  risk management;  •  Operational  Risk  Committee  (“ORCO”),  for  the  internal  control  system  and  operational  risk  management; •  Credit  Committee  (“CRCO”),  for  credit  risk  management;  •  Asset  &  Liability  Co mmittee  (“ALCO”),  for  asset  and liability management, capital, market risk and  liquidity risk management; and •  Compliance  &  Anti-Fraud  Committee,  for  compliance,  opera tional  managing  of  internal  controls,  anti-fraud  management,  preventio n  of  anti-money  laundering,  and  combating  the  financing of terr orism.  The  members  of  these  committees  i nclude  the  members of the Bank’s Management Board and other  senior  managers  of  the  Bank.  The  committees  are  responsible for, inter alia: •  Approval  of  the  relevant  risk  management  framework,  in cluding  the  b asic  m ethods,  limits,  scenario  assumptions  and  any  other  parameters  used in the risk mana gement process;  •  Moni toring  the  d evelopment  o f  relevant  ri sks,  including  the  observance  of  limits,  approval  of  remedial  measures  in  case  of  exceeded  limits  or  unfavourable development trends; and •  Moni toring the adequacy, reliability and efficiency  of  internal  polic ies,  processes  and  limits  for  risk  management in the area of their responsibility. Other  Bank  committees  that  are  established  by  th e  Bank’s  Chie f  Risk  Officer  (“CRO”)  and  that  manage  individual risks include the following: •  Credit  Monitoring  and  Management  Committee  (“CMMC”),  monitors  and  manages  the  credit  risk  of  the  commercial  individually  managed  credit  portfolio  not  in  the  work-out  process.  Members  of  the  committee  are  employees  of  the  Risk  Management D ivision and the Commercial Banking  Division. The CMMC reports to the CRCO; 108 RISK MANAGEMENT Annual Financial Report 2024 •  Problem  Loan  Committee  (“PLC”),  monitors  and  manages  the  credit  risk  of  the  commercial  individually  managed  credit  portfolio  in  the  work-out process, and its members are employees  of  the  Risk  Management  Division  and  the  Legal  Department. The PLC reports to the CRCO; •  Cyber Security C ommittee (“CSC”), manages cyber  security. Members of the committee are executive  employees  and  senior  managers  of  the  Risk  Management  Division,  Information  Te chnologies  Division,  Compliance  Department  and  Chief  Operating Officer. The CSC reports to the ERMC; •  Third-Party  Products  Council  (“TPPC”),  manages  the introduction of new investment, insurance and  pension products of third parties for clients of the  Group’s  companies.  Its  me mbers  are  executive  employees an d managers of the Risk Management  Division,  Retail  Banking  Division  and  Compliance  Department; •  Model  Risk  Oversight  Committee  (“MROC”),  monitors the model risk. Its m e mbers are employees  of the  Risk  Management Division and  the Finance  Division. The MROC reports to the ERMC; •  Key  Vendors Management  Co mmittee  (“KVMC”),  oversees  key  ven dor  management.  Its  members  are  executive  employees  and  senior  managers  of  the  Risk  Management  Division,  Finance  Division  and  Shared  Services  Division  and  Chief  Executive  Officers of the Bank and Building Savings Bank. The  KVMC reports to the ORCO. The Bank’s Risk Management Divisi on is responsible for  risk management on an individual and a consoli d ate d  basis. The Risk Management Division is headed by the  CRO, who is also a member of the Bank’s Management  Board. The Risk Management Division primarily: •  Mon itors,  measures 1   and  reports  credit,  market,  model, op e rational and liquidity risks and pr oposes  remedial measures in case of limits being exceeded  or unfavourable trends; •  Sets  terms  and  conditions  for  grantin g  loans  and  lines of credit, including their subsequent approval; •  Assesses  the  adequacy  of  collateral  given  by  borrowers to  the  Group  as  security for  extending  loans and lines of credit; •  Manages the loan portfolio; •  Executes controls in the area of credit deals; •  Ensures methodo logy suppo rt and control functions  in  the  area  of  informati on  security  and  digital  operational resilience; •  Participates  in  th e  development  of  the  dat a  infrastructure  and  analytical  systems  supporting  risk management; •  Ensures the model risk management; •  Maintains  and  develops  mod e ls  for  credit  risk  management,  c ollecti ons,  provisioning,  1  Credit risk is measured in cooperation with Finance Division of the Bank. management  of  operational  risks  and  capital  allocation; •  Moni tors indicators of fraudulent operations in the  credit portfolio and is involved in the prevention of credit frauds; •  Collects amounts due from borrowers; •  Implements and applies appropriate strategies and  proce dures of internal controls in the area of AML/ CFT; •  Ensures  the  investigation  of  external  f rauds,  proposes measures for their prevention; and •  Ensures  the  setting  up  of  AML/CFT processes and  processes  for  the  investigation  and  prevention  of  fraud in accordance with regulatory requireme nts.   The  particular  departments  of  the  Risk  Management  Division are responsible mainly for the following: •  Commercial  Ri sk  department:  commercial  credit  risk for individually managed exposures (products’ conditions, underwriting, mo nitoring, reporting);  •  Retail  &  Small  Business  Risk  department:  credit  risk  for  portfolio-managed  ex posures  (products’  conditions, underwriting, mo nitoring, reporting); •  Collections  department:  preparation  of  NPL  Management  Strategy,  overall  co llectio n s  process  and overall coll ections reporting; •  AML  &  Collateral  Management  department:  prevention,  detection,  reporting  and  strategy  in  the  area  of  AML/CFT,  collateral  management  (metho dolog y, valuation), administrative and  data  support of early warning system in the area of credit  risk of individually managed commercial exposures,  credit risk quality assurance and controls; •  Risk  Models  &  Fraud  Management  department:  provisioning methodology and provisioning model  development, provisi oning in the planning process  (including stress testing of credit losses), credit risk  models  development  and  prevention,  detection,  reporting  and  strategy  in  the  area  of  fraud  management and investigation of exter nal frauds; •  Enterprise Risk Management (“ERM”) department:  market, liquidity, and oper ational risk methodology  and  internal  policies,  measuring,  monitoring  and  reporting,  regulatory  and  internal  capital  requirement  methodology  and  calculation,  mo del  governance, and model validation; •  Cyber  Security  department:  governance,  methodology,  monitoring,  management  and  reporting of cyber risks; investigation of emerging  threats and security trends. The teams ensuring activities related to the prevention  of money  laundering  and  countering  the  financing of  terrorism  (AML/CFT)  are  under  the  management  of  a  member  of  the  management  body  of  the  relev ant  Group company auth orised with ensuring compliance  109 RISK MANAGEMENT Annual Financial Report 2024 with obligations stipulated by the AML/CF T Act. In both  the  Bank  and  Building  Savings  Bank,  the  authorised  person  is  the  respective  Chief  Risk  Officer.  From  1 October 2024, the investigati on of internal fraud was  transferred  to  a  department  reporting  to  the  Chief  Executive Officer. The  Group’s  business  activities  involve  pr oviding  deposit  accounts,  loans  and  lines  of  credit  to  retail  custome rs,  providing  funding  to  entrepreneurs  and  SME  businesses,  and  the  distr i bution  of  third-party  products,  such  as  mutual  funds  an d  insurance,  in  the  Czech Republic. The Group  takes steps  to  avoid  risks  that  are  not  associated  with  its  main  lines  of  business  and  minimise  all  oth e r  risks.  The  principal  objectives in the management of risks and tolerance of  individual  types  of  risk s  are  defined  in  the  Risk  Appetite Statement document approved by the Bank’s  Management Board.  5.2 CREDIT RISK Credit risk is the risk of loss for a party resulting from the  failure of a counterparty to meet its obligations arising  from  the  terms and conditions of the contract under  which the party became a creditor to the counterparty.  The Group is exposed to credit risk in particular in case  of  credits  granted,  non-approved  debits,  guarantees  provided,  le tters  o f  credit  issued,  bonds  purchased,  deriv atives and interbank deals. 5.2.1 Credit Risk Management Credit  risk  management  is  organised  along  the  following appr oval processes:  Individually  managed  exposures  represent  expo sure s  to  entrepreneurs and  SMEs  where  loans  and  lines  of  credit are approved based on an individual assessment  of the borrower’s creditworthiness in connection with the loan size. Portfolio  managed  exposures  inc lude  exposures  to  natural  p e rsons,  natural  persons  acting  as  entrepreneur s ,  and  SMEs  where  lo ans  and  lines  of  credit are approve d using an automated credit sco ring  process.  M ortgages,  bridging  loans  and  building  savings  loans  have  a  specific  position,  as  these  form  a part o f retail exposures (usually portfolio managed)  but a number of the processes and methods used fall  within the category of individu ally managed exposures .  Exposures to counterparties in the financial markets  include  exposures  to  financial  institutions  and  governments. These exposures primarily arise as part of liquidity management and market r isk management.  Transactions  in  th e  financial  markets are performed  only  by  the  Bank  and  Building  Savings  Bank;  other  entities in the Group only have receivables to banks  in  re spect  of  current  account  balances.  The  credit  risk of these exposures is managed through limits to  countries and counterparties that are approved due, mainly, to external ratings. 5.2.2 Individually Managed Exposures The  Group  manages  the  cre dit  risk  of  individually  managed  exposures  mainl y  by  setting  processes,  approval  authorities,  and  the  use  of  systems  and  models  for  underwriting,  portfolio  management,  monitoring (including early warning system), reporting  and  collectio n .  Internal  statistical  and  expert  judgement-based  models  used  for  und e rwriting  estimate  th e  probability  of  default  of  a  borrower,  taking  into  account financial, behavioural, qualitative  and ESG indicators in relation to the type of product  and the size of the bor rower. Underwriting, po rtfolio  monitoring  and  collection  are  u sually  executed  individually.  Underwriting  of  the  MONETA  Auto  and  MONETA Leasing exposures is centralized in the Bank. 5.2.3 Portfolio Managed Exposures The  Group  manages  th e  cre dit  risk  of  portfolio  managed  exposures  mainl y  by  setting  processes,  approval  authorities,  and  the  use  of  systems  and  models  for  underwriting,  portfolio  management,  monitoring,  reporting  and  collection.  Internal  statistical  scoring  models  used  for  underwriting  classify  individual  borrowers  into  categories  of  homogeneous exposures using socio-demographic and  behavioural data as well as information from the credit  bureau.  Au tomated  underwriting  is  compl e mented  by  individual  u nderwriting  where  the  clie nt  does  no t  meet  t he  criteria  for  automatic  approval.  The  approval  strategy  for  MONETA  Auto  exposures  is  set  by the Bank. Monitoring is taken on a portfolio basis,  while  collection  combines  the  use  of  a  portfolio  and  individual  approach  according  to  the  recovery  phase  and the existence of collateral.  5.2.4 Counterparties in the Financial Market The  Group  manages  the  credit  risk  of  counterparties  in  the  financial  markets  mainly  by  setting  processes,  approval  authorities,  and  the  use  of  systems  and  models  for  underwriting,  monitoring  and  reporting.  The main tool for measuring the credit risk of countries  and  counter parties  is  the  rating  set  by  international  rating agenc ies. The Bank decides on maximum limits  to  countries  and  counterparties  and  their  allocation  among  the  Group’s  entities.  Underwriting  and  monitoring takes place individually. 110 RISK MANAGEMENT Annual Financial Report 2024 5.2.5 Categorisation of Exposures The  Bank  has  assigned  ex posures  to  individual  categories  in  complian ce  with  CNB  Decree  No.  163/2014  C oll.,  as  ame nded. The categorisation  is  use d  mainly  for  r egulatory  reporting  and  the  calculation of loan loss allowances. The categorisation  is as follows: •  Exposures without borrower default  are classified  as performing;  •  Exposures  where  the  borrower  has  defaulted  are  classi fied as non- performing.  5.2.6 Collateral The  Group  determines  the  nature  and  extent  of  collateral  that  is  required  either  by  individually  asses si ng  a  prospec tive  borrower’s  creditworthiness  or  as  an  integral  part  of  the  given  cre dit  product.  The  Group  sets  up  types  of  collateral  acceptable  for  mitigating  the  credit  risk  on  a  loan  or  line  of  credit,  ways  to  determine  the  realisable  value  of  coll ateral,  and collateral management processes.  5.2.7 Allowances Calculation Allowances  for  credit  losses  are  determined  using  an expected  credit  loss  approach as  required  under  IFRS 9. The  measurement  of  expected  credi t  losses  and  the  assessment  of  significant  increases  in  credit  risk  considers information about  past events  and  current  conditions  as  well  as  reasonable  and  supportable  forec asts  of  future  events  an d  economic  conditions.  The  estimation  and  application  of  forward-looking  information requires significant judgement. To  calculate allowances,  the portfolio is  divided into  four  segments inc luding three  Stages and Purchased  or  originated  as  credit  impaired  (“POCI”).  POCI  includes  exp osures  of  Acquired  entities  which  were  non -performing  at  the  time  of  Acquisition,  as  well  as  exposures  originated  as  credit  impaired.  These  represent  modified  financial  assets  where  material  concessions  were  granted  to  obligors  in  default.  Exposures which do no t qualify for POCI are as signed to  Stage 1, Stage 2 or Stage 3. Non-performing exposures  belong to  Stage 3. Performing exposures are assigned  into Stage 2 when a significant increas e in credit risk  (“SICR“) after their origination occurs. Exposures that  are not assigned into Stage 3 or 2 belong to Stage 1. The  Group estimates  12 months  expected credi t  loss  (“ECL“)  for  Stage  1  exposures  and  lifetime  expe cted  credit  loss  for  Stage  2, Stage  3  and  POCI. The  Group  also  uses  multiple  macro-economic  forecasts  for  estimation  of  future losses; thus the future e xpected  development of macro-economic variables is reflected  in risk parameters. The  calculation  of  allowances  is  based  on  statistical  models.  These  m odels  are  used  to  calculate  the  probabili ty  of  default  (“PD“),  loss  given  default  (“LGD“ ), exposure at default (“EAD“) and the cure rate.  In  situatio ns  where  th e  statistical  models  used  for  calculation  of  allowances  do  n ot  sufficiently  capture  the  forward-looking  r isks  in  ECL  level,  management  overlays are applied.  5.2.8 Credit Concentration Risk As  part  of  managing  credit  risk,  the  Bank  regularly  monitors and actively manages the credit concentration  risk  of  the  Gro up  through  limits  to  countries,  counterparties,  collateral  providers,  ec onomic  sectors  and  top  10  commercial  exposures  (groups  of  custom e rs). Regional  concentration is not relevant  as  most  income  is generated  within  the territory  of the  Czech Repub lic. The top 10 commercial exposures (groups o f customers)  represented  13.9%  of  commercial  receivables  (exposure includes gross loans and receivables, unused  commitments including credit lines and guarantees) as  at 31 Dece mber 2024.  The top three sector exposures and their share in the  Group’s commercial portfolio as at 31 December 2024 were agriculture (24.8%), real estate activities (20.3%) and services (18.3%). The  main  collateral  providers,  via  guarantees,  were  Národní rozvojová bank a,  a .s. (National  Development  Bank),  the  European  Investment  Fund,  and  Exportní  garanční  a  pojišťovací  společnost,  a.s.  (Export  Guarantee and Insuranc e Corporation). 111 RISK MANAGEMENT Annual Financial Report 2024 5.2.9 Credit Portfolio and Its Quality 5.2.9.1 Non-performing Loans and Receivables to Customers 22 (in CZK m) 31 December 2024 31 December 2023 Retail Commercial Total Retail Commercial Total Non-performing Receivables 2,415 1,153 3,568 2,808 1, 040 3,849 Allowances to NPL Receivables 976 434 1,411 1,307 535 1,843 NPL Ratio 1.3% 1.2% 1.3% 1.5% 1.2% 1.4% Total NPL Coverage 110.8% 119.5% 113.6% 110.3% 152.2% 121.6% Core NPL Coverage 40.4% 37.7% 39.5% 46.6% 51.5% 47.9% Figures in the table may not add up to the total due to rounding differences. 2   Data on non-performing loans and receivab les to customers include g ross loan portfolio balance at Stage 3 and non-performing gross loan portfolio balance at  Stage POCI per IFRS 9. The  NPL Ratio  decreased  to 1.3%  as at  31 De cember  2024  (compared  to  1.4%  as  at  31  December  2023)  thanks  to  sales  of  non-performing  loans  and  the  continuous  good  repayment  discipline  of  MONETA’s  client s.  At  the  same  time,  the  Group  maintained  a  conservative Total NPL Coverage of 113.6% on the tot al  loan portfolio (121.6% as at 31 Dece mber 2023). 5.2.10 Modified Financial Assets Modification in the form of forbearance is  reflected in  the  categorisation  of  receivables  in  accordance  with  the exposures categorisation rul es (5.2.5). 5.2.10.1 Forborne Receivables Forborne  receivables  are  receivables  for  which  the  Group provided the debtor with relief as it assessed that  it would likely incur a loss if it did not do so. For economic  or  legal  reasons  associate d  with  the  debtor’s  financial  position,  the  Group  granted  it  relief  that  the  Group  would  not  otherwise  have  granted.  Reliefs  primarily  include  reworking  the  repayment  plan,  a  decrease  in  the interest rate, a waiver of default interest, a deferral  of  principal  or  accrued  interest  repayments.  Forborne  receiv ables  do  not  includ e  receivables  arising  from  the  ro ll-over  of a  short-term  l oan for  current assets if  the  debtor  met  all  of  its  payment  and  non-payment  obligations arising from the loan contract.  5.2.11 Environmental, Social and Governance (ESG) Risk Management ES G risk is the risk of losses arising from any negative  finan cial  impact  o n  the  Group  stemming  from  the  current or prospective impacts of ESG factors  on  the  Group’s counterparties or invested assets. Environmental  risk  is  the  risk  of  damage  to  the  reputation  or  financial  si tu ation  of  the  Group  (including  the  ability  to  u tilise  collateral  or  sell  ownership stakes)  or client (including adverse impact  on the client’s assets or the client’s ability to continue  its  business  activities) due to the  a dverse impact of  client’s  business  activities  on  the  environment  and  vice-versa. Climate-related and environmental  risks include  both  physical risk and transition risk . Physical  risk  is  the  risk  of  losses  arising  from  any  negative fi nan cial impact on the Group stemming from  the  current  or  pr ospective  impacts  of  the  physical  effects  of  environmental  factors  on  the  Group’s  counterparties or invested assets. Transition  risk  is  the  risk  of  losses  arising  from  any  negative fi nan cial impact on the Group stemming from  the  current  or  prospective  impacts  of  the  transition  to  an  environmentally  sustainable  economy  on  the  Group’s counterparties or invested assets. Social risk is the risk of losses arising from any negative  finan cial  impact  o n  the  Group  stemming  from  the  current  or prospective impacts of social factors on the  Group’s counterparties or invested assets. Governance  risk is the  ri sk   of losses arising  f rom any  negative fi nan cial impact on the Group stemming from  the  cur rent  or  prospective  impacts  of  governance  factors  on  the  Group ’s  counterparties  or  invested  assets. Within  credit  risk  management,  the  Gro up  assesses  environmental risk both fo r clients and their businesses  and for collateral. Environmental risk is assessed at a  transaction  level  for  individually  managed  exposures  and a product c onditions level for portfolio-mana ged  exposures.  The  CRCO  sets  up  principles  for  environmental risk management, including res trictions  for  economic  sectors,  activities  and  collateral.  The  112 RISK MANAGEMENT Annual Financial Report 2024 Group  assesses  the  overall  ESG  risks  of  selected  commerc ial borrowers within the internal rating m odel  (see Note 44.2.1 Cre dit Risk Management of Notes to  Cons olidated Financial Statements of MONETA Money  Bank, a.s.).  In  addition,  the  Group  adopted  an  ESG  Strategy  summarising  the  main  principles  and  th e  Group’s  approach  to  ESG  and  sustainabili ty  and  se tting  objectives  that  are  to  be  achieved  in  the  following  years.  5.3 CONCENTRATION RISK Conc e ntration risk is d efined as the risk arising f rom th e  concentr ation of exposures with respect to a person,  an  economically  related  group  of  persons,  se ctor,  region, activity or commodity. The Group manages the  concentr ation risk within individual risks, primarily the  credit  risk  and  liquidity  risk.  Activity  and  commodity  concentr ations are not relevant for the Group. 5.4 MARKET AND LIQUIDITY RISK Market risk is the risk of loss arisin g  from c hanges in  prices, rates and indices in the financial markets. Due  to its activities, the Group is exposed mainly to interest  rate risk and for eign exchange risk. 5.4.1 Interest Rate Risk Interest rate risk is the risk of loss arising from changes  in  interest  rates  in  the  financial  markets.  The  Group  is  exposed  to  interest  rate  risk  as  interest-bearing  assets and liabilities have different maturity periods or  interest rate repricing periods.  The Bank strives to minimise  th e Group’s interest rate  risk by setting limits and keepin g positions within these  limits.  The  interest  rate  risk  management  activities  are aimed at reducing the  risk of  losses. The  Group’s  interest  rate  risk  management  is  centralis ed  in  the  Bank.  Only certain client products (FX swap, FX forward, FX spot)  of  the  B ank  are  included  in  the  Tra di ng  book,  all  other  positio n s  of  the  Group  ar e  included  in  the  Banking book.  5.4.2 Foreign Exchange Risk Foreign  exchange  risk  covers  the  risk  o f  loss  due  to  changes  in  exchange  rates.  The  Group  is  exposed  to  the foreign exchange risk primarily due to the foreign exchange  loan  produ cts  to  commercial  borrowers,  issuance  of bonds denominated  in foreign  currencies  and foreign exchange deposits.  The  management  of  the  Group’s  foreign  exchange  risk  is  centralised  in  the  Bank.  The  Bank  strives  to  minimise the foreign  exchange risk  of the Group. For  this  purpose, the  Bank  maintains a  balance  of  assets  and liabilities in foreign currencies (by using a mix of FX  spot, forward and swap transactions). 5.4.3 Liquidity Risk Liquidity risk repres e nts the risk of an inability to meet  finan cial liabilities when due or to finance increases in  assets.  The  liquidity  risk  of  subsidiaries  is  managed  by  the  Bank,  providing  funding  if  needed.  For  liquidity  and  liquidity risk management, the bank s in th e Gr oup (in  2024 the Bank and the Building Savings Bank) created  a  liquidity  sub-group.  As  the  banks  in  a  liquidity  sub-group  were provided  an  exemption  from  certain  liquidity requirements on individual levels by the CNB  in 2020, and so since 2021 the Czech National Bank has supervised  the  Bank  and  Building  Savings  Bank  as  a  liquidity sub-group for liquidity purposes. 5.5 OPERATIONAL RISK Operational  r isk  repr e sents  the  ri sk  of  loss  resulting  from inadequate or failed internal processes, people or  systems, or from external events, including the risk of loss due to a breach of, o r failure to comply with,  legal  or regulatory requirements, or a threat to the Group’s  reputation. It also includes l egal and outsourcing risks.  The  Group  implemented  standardised  tools  and  processes for operational risk management, includin g  Risk  &  Control  Self-Assessment  (“RCSA”),  Lo ss  Data  Collection  (“LDC”)  of  ac tu al  internal  operational  risk  losses,  monitoring  of  external  risk  events,  Key  Risk  Indicators,  scenar io  analyses  and  Issue  management  that  is  used  to record, monitor  and  report identified  risks  and  issues.  The  Issue  management  system  is  also  used fo r  monitoring  the relevant  action plans,  if  applicable, and is closely linked to the RCSA process.  To mitigate operational risk, the Group produc e s  and  maintains  business  continuity  plans  for  the  recovery  of  critical  situati ons  and  oper ations  with  the  aim  of  ensuring business activities at a back-up workplace and  IT disaster-recovery plans for key IT applications. The  Group  also  uses  the  following  methods  for  mitigation of operational risk: •  De crease of risk by means of process improvements,  organisation  changes,  introduction  of  limits,  Key  Risk Indicators or controls, or use of technologies; •  Transfer of risk via outsourcing; •  De crease  of  risk  impact  via  insur ance  (mainly  for  113 RISK MANAGEMENT Annual Financial Report 2024 high  severi ty  and  low  frequency  operational  risk  events); and •  Avoidance  of  risk  by  terminating  risk-inducing  activities. The  Bank’s  Management  Board  specifically  approves  the  operational  risk  governance  str ucture  and  framework, the Group’s objec tives for operational risk  management,  and  decides  whether  to  accept  major  risks if there are no feasible remedial measures. The  ORCO  oversees  th e  Group’s  o perational  risk  management  process  and  approves  methods,  limits  and  Key  Risk  Indicators,  monitors  adherence  to  approved limits and Key Risk Indicators and appr oves  principal changes in the insurance progr amme.  The ERM department especially develops and maintains  the operational risk methodology fo r  RCSA, LDC, Key  Risk  Indicators,  outsourcing  and  insurance,  provides  measurement of operational risk using the LDC process  and Key Risk Indicators and reporting to the ORCO. Individual  organisational  units  across  the  Bank  have  operational  risk  co-or di nato rs  who  co-operate  with  the ERM department in RCSA and  issue management  processes.  W henever it  is  effective,  th e  collection  of  certain loss events within the LDC process is centralised  in selected organisation units. Other important parts of operational risk (compliance,  cyber security,  business  continuity and  legal risk) are  managed  by  other  organisational  units  as  d e scribed  below. 5.5.1 Compliance Risk Compliance  risk  represents  the  risk  of  legal  or  regulatory  sanctions,  material  financial  loss  or  loss  of  reputation  as  a  result  of  failure  to  comply  with  laws and regulatio n s , and the relevant self-regulatory  organisations’ standards and codes of conduct. The Bank’s Compliance  Department is an independent  control function responsible for monito ring  compliance  with laws, regulations and internal policies. It oversees  the implementatio n  of applicable laws and regulations  and  provides  compliance  training  to  the  Group’s  employees. The Compliance Department is managed by  the Director Compliance, who functionally reports to the  Bank’s Management Board and organis ationally reports  directly to the Chief Executive Officer of the Bank. The  Group  manages  compliance  risk  by  requiring  business activities to adhere to the various complian ce  polic ies  which  it  has  established  and  by  monitoring  compliance with these standards. The Group also has  an Issue management s ystem in place to monitor and  resolve any compliance issues as they arise.  The  key  areas  of  responsibilit y  of  the  Compliance  Department include: •  Compliance  Advisory:  Adviso ry  services  on  regulatory compliance, particularly in the areas of i)  product regulation (banking pr oducts, investments,  and  insurance),  ii)  data  protection  regula tion,  iii)  AML,  ESG,  and capital markets  regulation,  and iv)  prudential r egulation; •  Second-level  controls  related  to  compliance  with  legal and i nternal regulations (compliance controls):  Conduct regular and ad hoc compliance monitoring  and testing within the Group, including ensuring the  remediation of identified issues and their validation; •  Coordination  of  communica tion  with  regulators:  the Compliance Department acts as the main point  of contact for the Group in its communication with  local and  international regulators and supervisory  authorities (e.g., the CNB, Financial Arbitrator, Office  for  Personal  Data  Protection,  National  Cyber  and  Information  Security  Agency,  Financial  Analytical  Office,  or  the  EBA).  It  ensures  the  recording  of  all  incoming  co mmuni cation,  its  distribution  to  relevant employees, and oversees timely responses to regulatory requests, including the management  and  monitoring  of  remediation  actions  stemming  from off-site and on-site regulatory in spections; •  Handling  client  complaints:  the  Compliance  Department ensures the ombudsman function  for  client s ,  working with  relevant departments of  the  Bank to resolve serious client comp l aints; •  Identification  and  management  of  compliance  risks:  Regular  assessm e nt  and  mana gement  of  compliance  risks  within  the  Group,  including  addressin g  legislative and regulatory changes that  significantly impact the Group’s operations. A  key  element o f this process is the timely implementation  of changes and their valida tion; •  Data  protection and incident management: Ensuring  compliance with legal regulations and internal rules  related  to  data  protection  and  banking  se crecy,  including  setting  up  and  approving  processes  related to the processing and use of personal data,  as well as reporting  any eventual inc idents in this  area; •  Management  of  internal  po licies:  the  Compliance  Department  is  respon sible  for  managing  and  updating  the  Group’s  internal  regulatory  base,  including an electronic application for comm e n ting  on,  app roving,  and  publishing  internal  policies.  Additio nally,  the  Complian ce  Department  plays  a  crucial  role  in  e nsuring  the  consistency  of  the  Group’s  internal policies with applicable legal  and  regulatory  requirements  and  with  o ther  internal  policies; •  Employee  training:  Organising  regular  compliance  training  for  employees,  senior  mana gers,  and  members  of  st atutory  bodies,  focusing  on,  among  oth e r  topics,  current  legal  and  regulatory  114 RISK MANAGEMENT Annual Financial Report 2024 requirements, data protection, and the prevention of unethical behaviour; •  Anti-corruption programme, prevention of improper  payments,  and  con flict  of  interest:  Ensuring  the  prevention  of  impr oper  payments ,  reportin g  of  contacts with competitors and regulators, and the  prevention and management of conflicts of interest; •  Whistleblowing:  Operating  an  independent  and  confidential  reporting  channel  to  p rotect  whistleblowers  who  report  potentially  illegal  or  unethical behaviour (Employee Ombudsman). During  the  r e porting  period,  the  Compliance  Department  success fully  coordinated  the  implementati on  of  action  p l ans  resulting  from  inspections  conducted  by  the  CNB  in  2023.  These  inspections focused on the management of operational  risks,  risks  related  to  infor mation  systems  and  technologies,  and  the  provision  of  foreign  currency  loans. Details regarding these inspections are included  in the 2023 Annual Financial Rep ort. The action plans  were successfully complete d w ithin the set deadlines. In 2024, the Compliance Department also coordinated  two newl y i nitiated CNB inspections 1.  In February 2024, the CNB laun ched a market-wide  investigation  focusing  on  funding  and  liquidity  risk  management. At the CNB’s request, the Bank provided  extensive  documentation,  which  was  subsequently  analysed  by  th e  regulator.  In  September  2024,  two  working  meetings  were  held  to  clarify  certain  detaile d  aspects  of  liquidity  management.  Th e  Bank does not anticipate any findings of significant  deficiencies or the need to create an action plan for  their  resolution.  This  investigation  is  ex pected  to  serve as the basis for the issuance of a supe rvis ory  benchmark by the CNB. 2.  On 1 October 2024, the CNB initiated an inspection  focusing on processes related to the circulation of  banknotes  and  coins,  includin g  the  notification  of  a mystery shopping exercise. The Bank p rovided all  requeste d docume ntation to the CNB and actively  cooperated during the inspection. During the course  of the inspection, the Bank addressed a minor finding  related to verif ying the required certification levels  for newly hired cashiers. On 17 December 2024 the  Bank received the inspection repo rt from the CNB  confirming the absence of significant or unexpected  deficiencies in its processes. The Bank accepted the  report without objectio n s. During  the  reporting  period,  no  administrative  proceedings were initiated against the bank. However,  the  bank  was  fined  by  the  Offic e  for  Personal  Data  Protection (ÚOOÚ). The  fine, amounting  to CZK 50,000,  was  imposed  for  violations of Act No. 110/2019 Coll., on the Processing  of Personal Data, in relatio n to two clients. One issue  involved a system er ror that failed to properly rec ognise  the  withdrawal  of  consent  by  certain  customers  regarding  the  receipt  of  marketing  communications.  This  is sue  was  identified  and  resolved  by  the  Bank  before  the  ÚOOÚ  notification.  The  secon d  issue  concerned inaccurately defined rules for distinguishing  between  marketing  and  technical  communic ations.  These rules were revised to fully comply with regulatory  requirements. In the above cases and all similar situations, the Bank  adopts  a  highly  proactive  approach  in  cooperating  with  regulators  (espec ially  the  CNB  as  the  p rimary  supervisory  autho rity)  and  acts  with  maximum  transparency. 5.5.2 Cyber Security The  main  objective  of  cyber  security  is  to  protect  information assets by maintaining their confidentiality,  integrity  and  availability  as  well  as  the  authenticity  of  information  stored  in  these  as sets.  T he  Group  understands  the  significance  of  well-designed  and  implemented  organisational  and  technic al   cyber  security  measures  an d  considers  it  a  key  priority.  Cybe r security is ensured and applied via a volume of  security processes and tools covering all security areas  ranging  from  overall  e xternal  and  internal  perimeter  protection,  end-point protection,  identity and access  management,  data  loss  prevention,  vulne rability  management, and bolstering user awareness through  a  security  awareness  developm e nt  programme.  The  aim  is  to  ensure  the  maximal  level  of  cyber  security  risk coverage and protection of the Group’s assets and information, including client data. In 2024 the trends observed in previous years continued.  The National Cyber and Information Security Agency of  the Czech Republic (NÚKIB) reports phishing, scannin g,  and attacks on availability mainly in the form of DDoS  attacks  as  being  prevalent  during  the  past  year  in  the  C zech  Repub lic.  Furthermore,  the  NÚKIB  noticed  a  growing  trend  in  the  quality  and  s ophistication  of  phishing attacks. DDoS attacks were the most frequent  and most serious type of cyber security attack that the  Group  was  exposed  to  during  this  period.  However,  thanks to a robust infrastructure  and network filteri ng  technologies, the Bank’s operation and availability of  digital channels experienced only minor interruptions.  Amids t  the  most  serious  threats  in  future  years,  the  NÚKIB and other sources that analyse cyber security  threats,  warn  against  supply  c hain  attacks,  DDoS  attacks,  social  engineering  and  “hacktivism“  as  the  most  serious  threats.  There  is  also  a  worrying  rise  in  the  Cyber  Crime-as- a-Service  model.  MONETA  is  aware of these threats and is impl e menting security  measures  to  properly  mitigate  them.  The  Group  is  also  monitoring  the  risks  ass ociated  with  the  use  115 RISK MANAGEMENT Annual Financial Report 2024 of  emerging  trends  (such  as  AI  technologies  and  quantum  computing)  by  malic ious  actors,  and  is  analysing  possible  security measures  to  be  taken  in  cases of direct risk to the Group. Throughout  2024  the  Group  continued  conducting  Red  Teaming  activity  (i.e.,  simulated  cyber-attacks)  with the help of  an external p artner. The goal of this  engagement  was  to  identify  potential  weaknesses  in  the Bank’s  IT environment as  well as  physical access,  and to  test employee resilience to social engineering  by realistically simulating an attack of a motivated and  well-funded group, which would utilise any techniques  available  to  achieve  its  goals.  Key  findings  of  this  exercise have been incorporated into MONETA’s Cyber  Security Strategy and the underlying initiatives plan for  the period of 2025–2026. To further strengthen the security of applications and  digital channels, the Bank launched a public bug bounty  programme  in  June  2023  (see  https://www.moneta. cz /bug-bounty).  This  allows  ethical  hac kers  and  security researchers who find b ugs and vulnerabilities  in  MONETA’s  environment  to  responsibly  report  them  and,  upon  verification  by  the  Cyber  Security  department, be rewarded. Thanks to its added value in ensuring  cyber se curity, MO NETA  continued with the  bug bounty programme throughout 2024 and plans to  continue in the coming years .    5.5.2.1 Cyber Security Strategy The  Group  has  established  a  cyber security  s trategy,  which  is  endorsed  by  the  Management  Board.  The  strategy  is  reviewed  yearly  in  order  to  assure  its  validity,  to  perform  adjustments  to  the  objectives  of  the business and IT strategy, and to keep abreast of the  overall  situation  in  the  banking  sector  and  the  latest  cyber  security  industry  trends.  The  latest  update  is  valid from November 2024. The cybe r securi ty strategy  of the Group i s stron gly based on the foundation of the  following three pillars: •  Governance; •  Risk management; •  Compliance management. Governance is a critic al co mponent of the strategy and  the main defensive buil di ng b lock defining an overall  cyber  security  app roach.  Concise  and  consis tent  rules  and  accountability  defi ne  clear  policies  and  procedures that must be followed. In order to broaden  cyber security  competencies,  cyber  security risks are  continuously mana ged by re peatedly: •  Specifying security objectives; •  Executing  regular  and  ad-hoc  risk  assessments  (including internal and external audits) an d controls; •  Continuous implem e ntation of corre ctive measures; •  Moni toring  and  reviewing  the  performance  of  measures applied; •  Maintaining an d i mproving the process. The  Cy ber  Security  department  is  a  part  of  the  Risk  Management  Division  and  follows  an d  achieves  the  defined strategy goals by: •  Ongoing  communication  of  an  accurate  risk  landscape to the top management; •  Periodical assessment reviews; •  Issuing security poli cies, guide lines and procedures; •  Providin g gui d ance and assurance in implementing  controls and measures; •  Moni toring adherence to controls via suitable tools; •  Investigating emerging threats and security tr e nds; •  Acting  as  a  second  line  of  defence  (the  IT  departments being the first); •  Cooperating  with  othe r  second-level  control  departments/teams,  internal/external  audit  and  regulators; •  Effectively managi ng cyber security i ncidents; •  Increasing  c yber  security  awareness  within  the  Group. 5.5.2.2 Monitoring and Incident Management To  ensure  the  reliability,  availability,  and  security  of  business  servi ces  within  an  increasingly  complex  IT  environment,  the  internal  IT/network  traffic  i s  constantly monitored for anomalies with a special focu s  on assets in the scope of the Act o n Cyber Security of  the  Czech  Republic.  Real-time  analysis  of  generated  security alerts and collected logs are provided by the  Security Information and Event Management (“SIEM”)  system, whose operational cap acities were significantly  enhanced in 2021 in order to meet increase d volumes of  incoming security-related data and which is monitored by  the  24x7  Security  Operations  Centre  (“SOC”).  Subsequently, in  2023, the  capabilities  of  the  system  were further improved by the connection of additional  log  sources  of  selected  applications.  In  2024  further  actions were taken to improve the capabilities of SIEM.  Alerts  and incidents  are  investigated/resolved  by the  Cybe r Sec urity department and, when appropriate, are  escalated  to  Incident  managers.  The  Cyber  Security  department follows the incident end-to-end and makes sure  that the incident i s resolve d and that appropriate  “lessons learned” from the incident are identified and  implemented. 5.5.2.3 Endpoint and Server Protection Special  attention  in  ter ms  of  covera ge  of  cyber  security-related  risks  is  paid  to  the  pro tection  of  endpoints an d servers because they are often used as  the main entry points into companies  for  all kinds of  threat actors. The protection of such devi ces in MONETA  116 RISK MANAGEMENT Annual Financial Report 2024 is  secured  by  a  full-scale  EDR  (Endpoint  Detection  and Response) solution. The ad vanced features of the  solution  are  based  on  traditional  signature  scanning  and  on  behavioural  analys e s  and  threat  intelligence,  to provide better protection against advanced threats  like polymorphic viruses and ransomware. 5.5.2.4 Vulnerability Management and Penetration Testing Vulnerability  management  an d  penetr ation  testing  have always been an integral part of resilience testing  against  cyber security  threats.  To  remain  up to  date,  the scope and methodology of  vulnerability scanning  and  the  tools  used  for  this  activity,  are  constantly  updated and tuned as new threats and vuln erabilities  emerge.  In  addition,  regular  and  ad-hoc  control  vulnerability  management  activities  provided  by  reliable,  respected  partners  are  conducted.  Similar ly,  application penetration testing is based o n coop eration  with  proven  vendors  and  contemporary  tools  and  is  adjusted  to  recent  technologies  and  development  concepts.  In  addition,  regul ar  Red  Teaming  activities  are performed to further improve MONETA’s resiliency  against threats. 5.5.2.5 Vendor Management The  Group  diligently  selects  external  resources  via  a  structured  and  docum e nted  p rocess  of  monitoring  and performing assessments of vendors and external  out sourcing  providers.  To  minimise  the  risk  and  to  evaluate their security status, the process in corporates  multiple  divi sions  and  d e partments  (mainly  th e  Risk  Management Div ision, Procurement Department, Legal  Department, Compliance Department,  etc.)  to  de fine  the correct contractual requirements and agreeme nts.  Contracts  between  the  Group  and  p roviders  of  IT- related  services  always  include  agree ments  focused  on  ensuri ng  that  entrusted  data  remain  secure  and  protected  and  that  the  provided  service  is  secure  and  resilient to  thr eats. These requireme nts are  also  extended  to  oth e r  sub-processors  or  3 rd   parties  that  receive  entrusted data  or  that  are  needed  to  ensure  the  provi sion  of  the  services.  The  performance  of  the  Group ’s  outsourcing  providers  is  monitored  continuously  and  reviewed  at  least  once  a  year  or  in  the  case  of  significant  chan ge  in  the  provided  service.  The  Group  seeks to  leverage  the  benefits  of  cloud services  that are highly  secure, able to provide  scalable  innovative  digital  platforms  within  a  secure  environment, and that mee t  the requirements  o f  the  most  security-sensitive  organisations.  In  an  effort  to  further utilise cloud services, part of MONETA’s services  was  migrated  to  Amazon  Web  Services  (“AWS”),  and  a  network  segmentation  in  line  with  these  changes  was  implemented.  With  cloud  services,  MONETA  c o- operates very closely with the regulators (the CNB and  NÚKIB)  and  cloud  providers  to  make  sure  it  remains  within regulatory boundaries. The Group has taken an active approach to implementin g DORA requirements  in the management of ICT suppliers . 5.5.2.6 Data Protection and Data Privacy Trust  and  confidentiality  are  essential  in  banking.  The  Group  strives  to  achieve  the  maximum  protection  of  data  in  its  custody,  especially  client  data.  T he  Group  follows and enforces the “need to know” principle (i.e.,  limited access to information based on the necessity to  conduct  work  duties) and  has  established  appropriate  processes  focused  on  privacy  and  information  protection. Data  security  is  governed  by  the  general  information  security  policy,  applicable  ac ross  the  whole  Group,  that  is  further  elaborated  into  policies,  procedures  and  guidelines  applicable  to  all  company  processes.  Data  classification  in  custody  is  enforced.  Mandatory  encryption  of  both  data  “at  rest”  (data  stored  in  a  fixed location, e.g., files b eing stored on a hard drive  or cloud) and  data “in transit” (data bein g  transferred  between locations, e.g., by e-mail) are ap plicable to any  data classified as Confidential or Res tricted.  Special  attention  is  dedicated  to  personal  data  and  sensitive personal data. The Group is fully subject to the  European Union’s GDPR  and  therefore meets its strict  requirements  for  securing,  handling,  an d  managing  personal  data.  Third  parties  with  whom  the  dat a  is  shared  are  assessed  and  evaluated  during  the  vendor  management process (see 5.5.2.4) and data priva cy and  non -disclo sure agreements are con cluded to achieve an  adequate level of data protection. Data stored on endpoints , especially from lost or stolen  equipment,  has  always  been  an  interesting  target  for  attackers  in  attempts  to  gain  access  to  valuable data.  In  order  to  meet  compliance  requirements  and  to  prevent the theft of personally identifiable information  or sensitive personal information, the Group leverages  a  powerful  software  component  composed  of  several  protection suites, which provide: •  Strong access control and data encryption; •  Certified encryption technol ogy; •  Support for both company-issued and “bring your  own” device environments. To  further  enforce  policie s  on  compliance,  privacy,  and intellectual property protection, a market-leading  data  loss  preventio n  (“DLP”)  solution  is  deployed  company-wide. Access  to  the  DLP  too l  is  logged  and  strictly limited to authorised personnel from the Cyber  Security  department  and  author ised  personnel  from  the Fraud Investigation department. The DLP solution  protects the Group’s assets against  unauthorised use  of valuable company data by internal users via numerous  117 RISK MANAGEMENT Annual Financial Report 2024 means, including hardware and content-based filtering  and the blocking of confidential data on any removable  storage  device  (e.g.,  USB  devices).  Any  suspicious  activity related to possible data leakage is thoroughly investigated, and if proven correc t, defined action steps  are  taken  in  close  cooperation  with  the  Compliance  Department,  including  notificati on  of  data  subjects,  stakeholders and regulators. 5.5.2.7 Training and Awareness Bearing  in  mind  that  peop le  are  the  weakest  link  in  cyber  security  defence,  the  Group  has  developed  thorough training pr ogrammes to raise awareness and  help  employees  as  well  as  clients  navi gate,  survive  and thrive in the digital environment, make informed  decisions,  and  successfully  recognise  and  deal  with  various types of possible threats. The cyber security awareness programme in M ONETA  consists of several parts, including articles distributed  via  intranet  and  e-mail,  quar terly e-learning  course s ,  and  the  utilisation  of  digital  signage  in  headquarters  and branches. Additionally, all newly hired employees must  complete  a  special  introductory  course  in  the  area  of  information  security.  A  strong  organisational  culture  and  moral e,  supported  by  a  strong  cyber  security  education  pr ogramme,  combined  with  teamwork,  collaboration,  and  loyalty,  create  an  incredibly powerful security measure. The Group also pays special attention to October, international Cyber  Security  month,  during  which  the  Bank  publishes  for  employees weekly educational articles that explain the  current most common cyber security risks and how to  avoid them both in their professional and private lives. The  Group  also  utilises  a  special  cyber  sec urity  awareness  platform  that  via  phishing  simulation  campaigns helps to keep users aware of the dangers of  phishing ,  and which statistically  evaluates the results  and risk score based on numerous criteria. Employees  who  are  deemed  at  risk  of  being  victims  of  phishin g  attacks receive additional training focused on phishing  and how to properly defend themselves against it. Furthermore, using analysis of the data that is available  from  various  cyber  security  activities  an d  analysed  risks, the Group is able to adjust its security awareness  programmes and overall level of security measures. 5.5.2.8 Cyber Threat Intelligence To further enhance MONETA’s cyber security and risk  management  capab i lities  and  to  improve  reaction  to  cyber securi ty events, MONETA partnered with a cyber  threat  intelligence  vendor.  Cyber  threat  intelligence  allows the Group to prevent, mitigate or react to cyber  security risks quickly, sometimes before they occur or  during their very early stages. This enables MONETA to  defend its assets and the assets of its customers (e.g.,  Internet  Banka  credentials,  bank  cards,  etc.)  more  proactively  by  maintaining  up-to-date  information  on  a  vas t  number  of  threats,  including  m ethods,  vulnerabilities, targets and malicious actors.  This partnership has enabled MONETA to monitor open  and closed sources on the internet and to be alert to  direct threats to the Group and its clients. Since 2020  the Group has been able to search for compromised or  stolen client information being sold by c ybercriminals  on dark web marketplaces. Information was obtained  on  stolen  internet  bank i ng  credentials  and  details  of  payment  cards  which  th e  attackers  obtained  from  a  vulnerable third party or with malware present on client  devices (PCs, smartphones). Thanks to this monitoring,  the Group was able to warn affected  c lients, provide  recommendations  and  prevent  possible  fraudulent  activity. 5.5.3 Business Continuity The  main  goal  of  business  continuity  management  is  to  ensure  the  lowest  possible  impact  on  the  Group’s  business  in  the  case  of  an  extraordinary  situation  with  regard  to  employee  sec urity  or  health,  while  maintaining duties prescribed by legal and regulatory  requirements.  The  r egular b usiness continuity management proce ss  includes  Risk  Assessment  –  decisions  about  critical  and  non-critical  proces ses,  Business  Impact  Analysis  and  Business  Continuity  Plans  for  critical  processes,  training and tests. The Group has developed Business  Continuity  Plans  for  all  criti cal  processes.  The  Group  regularly  tests Business  Continui ty  Plans  and  reviews  and assesses their adequacy. During the past five years, the Group, including Building  Savings Bank, has experienced no material interruption  in its business operations. 5.5.4 Legal Risk Dealing  with  l egal  risk  and  managing  it  means  minimising  uncertainty  associated  with  enforcement  and  interpretatio n  of  applicable  laws,  contr acts  and  regulations.  In  addi tion  to  stan dard  legal  functions  in  the  various  areas  such  as  contract,  banking  and  corp orate law, the main tasks  of  the  Group’s lawyers  during  2024 con si sted of  keeping both  the  re tail and  commerc ial  contractual  documentation  aligned  with  both  the  business  strategy  and  various  needs  of  the  business  departments  of  the  Group,  as  well  as  new  regulations.  The  Group  continuously  monitors  legal  disputes,  and  p rovision  is  created  for  the  estimated  amount of payment if it is more probable than not that a cash outflow will have to be made. 118 RISK MANAGEMENT Annual Financial Report 2024 5.5.5 Legal Disputes The Group is not party to any significant legal disputes.  5.6 MODEL RISK Model  risk  refers  to  the  possibility  of  adver se  consequences  or  other  negative  impacts  emerging  from decisions based on the results of a flawed model  or the incorrect use of mode l outputs and/or rep orts  (linked to errors in the development, impl e mentation  or use of the models). The  Group  manages  model  r isk  mainly  by  actively  managing  individual  phases  of  the  m odel  life  cycle,  among others by imposing requirements and standards  on: •  Model Tiering; •  Model development documentation; •  Model validation; •  Model approvals; •  Model performance monitoring. Model  Tier  reflects  the  influence,  co mplexity  and  other  aspects of models and triggers mainly the depth  of  model  documentation,  validati on,  and  approval  requirements. The ERMC is responsible for the general set-up of the  model  risk  management  process  in  the  Group,  with  the  Model  Risk  Oversight  Committee  monitorin g  compliance  and  model  performance  on  a  regular  basis  and  reporting  regularly  to  the  ERMC.  The  ERMC  authorities  notably  cover  approv al  of  the  Tier  framework and approval of model use. 5.7 RISK OF EXCESSIVE LEVERAGE The risk of excessive leverage is the risk resulting from vulnerability  due  to  leverage  or  contingent  leverage  that  may  require  unintended  corrective  measures  to  a business plan, including the distressed sale of assets which might result in losses or valuation adjustments  to remaining assets. The  Group  manages  the  risk  by  setting  limits  on  regulatory  leverage  and  keepin g  regulatory  leverage  within  these  limits.  Limits  are  set  by  the  Bank  and  Building  Savings  Bank  on  an  individual  level  and  by  the  Bank  on  a  conso lidated  level.  Leverage  at  a  consolidated level was  5.1% as  at 31 December 2024  (5.7%  as  at  31  Dec e mber  2023).  C RR  2  introduced  a  binding  leverage  ratio  requirement  of  3%  fro m  June  2021. 121 OPINION OF THE SUPERVISORY BOARD Annual Financial Report 2024 6.   OPINION  OF THE SUPERVISORY BOARD Throughout 2024 the Supervisory Board fulfilled all its duties stipulated by law, the Articles of Association an d  internal  policies,  and  also  maintained  its  supervision  over  the  e xer cise  of  powers  by  the  Management  Board.  It  reviewed  the  accounts  and  other  financial  documents,  ascertained  the  effectiveness  of  the  management  and  control  system,  and  made  regular  assessments.  Having  reviewed  the  co nsolidated  and  separate  finan cial statements for the year 2024, the Supervisory  Board reports that the accounting records and financial  documents  have  been  kept  in  a  transparent  manner  and  in  accordance  with  the  laws  and  regulations  governing  the  conduct  and  accounting  of  banks.  The  finan cial  statements  pr e pared  on  the  basis  of  these  accounting records present a true and fair view of the  accounting  and  finan cial position of  MONETA  Money  Bank, a.s. and the Group as a whole. For the year 2024, MONETA Money Bank, a.s. reported  a  net  profit  of  CZK  5, 807,662,881.21  according  to  the  consolidated  financial  statements  and  a  net  profit  of  CZK  6,390,863,561.51  according  to  the  separate financial statements. The Supervisory Boar d  recommends  that  the  General  Meeting  ap prove  the  consolidated and separate fi nan cial statements. The Supervisory Board further reviewed the proposal  of  the  Management  Board  and  recommends  to  the  General  Meeting  to  approve  the  distribution  of  net  profit  for  the  financial  year  2024  according  to  the  separate  financial  statements  of  MONETA  Money  Bank,  a.s .  for  the  year  2024  in  the  total  amount  of  CZK 6,390,863,561.51 as follows: (i)  to  be  distributed  to  share holders  of  the  Bank  as  dividend: CZK 5,110,000,000.00 (ii) to  be  transferred  to  the  account  of  retained  earnings: CZK 1,280,863,561.51  The amount of profit to be distributed to shareholders  as a dividen d is CZK 10 per share. In Prague on 18 March 2025 On behalf of the Supervisory Board: Gabriel Eichler Chairman of the Supervisory Board MONETA Money Bank, a.s. 125 MANAGEMENT AFFIDAVIT Annual Financial Report 2024 7.  MANAGEMENT  AFFIDAVIT To the best of our knowledge, we believe that both the consolidated and individual financial statements, which  are part of this Annual Financial Report and were compiled in accordance with ap plicable accounting standards,  provide a true and fair view  o f the Bank and Group’s assets, liabilities, financial position, business activities, and  results in the year 2024.  Additionally, this Annual Financial Report, compiled pursuant to laws regulating accounting, offers a fair overview  of the  development, perfo rmance, and position of the  Bank and Group in 2024, along with  a description of the  main risks and uncertainties they face. The  C onsolidated  Sust ainability  Statement  inclu ded  in  this  Annual  Financial  Report  has  been  prepared  in  accor dance  with  the  Sustainability  Reporting  Standards  adopted  by  the  European  Commission  and  the  requirements of Article 8(4) of the Taxonomy Regulation. In Prague on 17 March 2025 Tomáš Spurný Chairman of the Management Boar d and CEO  MONETA Money Bank, a.s. Jan Friček Member of the Management Board and CFO  MONETA Money Bank, a.s. 129 FINANCIAL SECTION Annual Financial Report 2024 8. FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 131 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally se parate and independent entities, which cann ot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. 6F8EDA1414B2073FE3D2A79A5EEE5458 INDEPENDENT AUDITOR’S REPORT To the Shareholders of MONETA Money Bank a.s. Having its registered office at: Vyskočilova 1442/1b, Michle, 140 00 Prague 4 REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS Opinion We have audited the accompanying consolidated financial statements of MONETA Money Bank, a.s. and its subsidiaries (hereinafter also the “Group”) and separate financial statements of MONETA Money Bank, a.s. (hereinafter also the “Company”) prepared on the basis of IFRS Accounting Standards as adopted by the European Union. The consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2024, consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information (the “Consolidated Financial Statements”). The separate financial statements comprise the separate statement of financial position as at 31 December 2024, separate statement of profit or loss and other comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended, and notes to the separate financial statements, including material accounting policy information (the “Separate Financial Statements”). In our opinion: • The accompanying Consolidated Financial Statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2024, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the European Union. • The accompanying Separate Financial Statements give a true and fair view of the financial position of the Company as at 31 December 2024, and of its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the European Union. Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.:49620592 Tax ID. No.: CZ49620592 132 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 Basis for Opinion We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European Parliament and of the Council and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and the Company in accordance with the Act on Auditors and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated and Separate Financial Statements of the current period. These matters were addressed in the context of our audit of the Consolidated and Separate Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter - Allowances for loans and receivables As at 31 December 2024, Gross carrying amount of Loans to and receivables to customers (hereinafter “loans”) amounted to CZK 279,435 million and CZK 263,612 million for the Group and the Company, respectively, against which Loss allowances for Loans and receivables to customers (hereinafter “allowances”) of CZK 4,052 million and CZK 3,679 million, respectively, were recorded. The allowances are determined using statistical models, with the exception of non-performing commercial operating and investment loans (Stage 3), for which allowances are determined on an individual basis using discounted cash flows. The measurement of allowances for loans is deemed a key audit matter due to the level of judgment applied by the Management, especially with regard to identifying impaired receivables and quantifying loan impairment. There is a persistent level of uncertainty and level of subjectiveness of management judgments relating to 2024 financial reporting due to the current persistent macroeconomic risks, as well as the impacts of the deteriorated geopolitical situation. The Group implemented a management overlay outside the framework of the model approach, with the aim of compensating for the insufficient level of sensitivity of the expected credit loss (ECL) model towards risks related to the high-interest rate environment. The most significant judgments applied in determining allowances are: • Assumptions used in the ECL statistical models such as the probability of default, recovery rates and macroeconomic factors reflected in forward-looking information, and assumptions used for management overlays; • Timely identification of exposures with a significant increase in credit risk (Stage 2) and credit-impaired exposures (Stage 3) in the context of the observed macroeconomic risks and the impacts of the deteriorated geopolitical situation; and • Valuation of collateral and assumptions of future cash flows on individually assessed credit-impaired exposures. The management provided further information about loan impairment in Notes 5.7.10, 16, 23 and 44.2 to the Consolidated Financial Statements and in Notes 5.6.10, 16, 23 and 43.2 to the Separate Financial Statements. The management provided further information about the current geopolitical situation and the macroeconomic risks related to the high-interest rate environment that persisted during the year 2024 (the credit risk related to the increase in interest rates upon re-fixation, on the loan portfolio in Notes 5.7.10, 16 and 44.2 to the Consolidated Financial Statements and in Notes 5.6.10, 16 and 43.2 to the Separate Financial Statements. 133 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 Basis for Opinion We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European Parliament and of the Council and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are independent of the Group and the Company in accordance with the Act on Auditors and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated and Separate Financial Statements of the current period. These matters were addressed in the context of our audit of the Consolidated and Separate Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter - Allowances for loans and receivables As at 31 December 2024, Gross carrying amount of Loans to and receivables to customers (hereinafter “loans”) amounted to CZK 279,435 million and CZK 263,612 million for the Group and the Company, respectively, against which Loss allowances for Loans and receivables to customers (hereinafter “allowances”) of CZK 4,052 million and CZK 3,679 million, respectively, were recorded. The allowances are determined using statistical models, with the exception of non-performing commercial operating and investment loans (Stage 3), for which allowances are determined on an individual basis using discounted cash flows. The measurement of allowances for loans is deemed a key audit matter due to the level of judgment applied by the Management, especially with regard to identifying impaired receivables and quantifying loan impairment. There is a persistent level of uncertainty and level of subjectiveness of management judgments relating to 2024 financial reporting due to the current persistent macroeconomic risks, as well as the impacts of the deteriorated geopolitical situation. The Group implemented a management overlay outside the framework of the model approach, with the aim of compensating for the insufficient level of sensitivity of the expected credit loss (ECL) model towards risks related to the high-interest rate environment. The most significant judgments applied in determining allowances are: • Assumptions used in the ECL statistical models such as the probability of default, recovery rates and macroeconomic factors reflected in forward-looking information, and assumptions used for management overlays; • Timely identification of exposures with a significant increase in credit risk (Stage 2) and credit-impaired exposures (Stage 3) in the context of the observed macroeconomic risks and the impacts of the deteriorated geopolitical situation; and • Valuation of collateral and assumptions of future cash flows on individually assessed credit-impaired exposures. The management provided further information about loan impairment in Notes 5.7.10, 16, 23 and 44.2 to the Consolidated Financial Statements and in Notes 5.6.10, 16, 23 and 43.2 to the Separate Financial Statements. The management provided further information about the current geopolitical situation and the macroeconomic risks related to the high-interest rate environment that persisted during the year 2024 (the credit risk related to the increase in interest rates upon re-fixation, on the loan portfolio in Notes 5.7.10, 16 and 44.2 to the Consolidated Financial Statements and in Notes 5.6.10, 16 and 43.2 to the Separate Financial Statements. 6F8EDA1414B2073FE3D2A79A5EEE5458 Key audit matter - Related audit procedures Based on our risk assessment and industry knowledge, we examined the allowances and evaluated the methodology applied and the assumptions used for the calculation of allowances. Together with our specialists, we re-performed the calculation of the allowances. We tested the design and operating effectiveness of selected key internal controls the management of the Bank has established for the impairment assessment and allowance recognition. With the assistance of our IT specialists, we tested IT controls relating to the access rights and change management of relevant IT applications. Assumptions used in the expected credit loss models and in management overlays. In cooperation with our specialists, we assessed the model methodology, internal validation reports and the results of the back-testing for selected internal models. We assessed whether the modelling assumptions considered all relevant risks, were relevant in the light of historical experience and future outlook, economic climate and the circumstances of customers, as well as our own knowledge of procedures used by similar banks. We used a selected sample to evaluate the appropriateness of risk parameters used in the calculation of allowances. On a selected sample, we calculated risk parameters and performed analytical substantive testing. In light of the volatility in economic scenarios caused by the current geopolitical situation and macroeconomic risks, we assessed whether the macroeconomic and other parameters used in the ECL statistical models fairly reflect the expected degree of defaults and recoverability of loans in the future. We assessed the assumptions and calculation of allowances in the form of a management overlay. Identification of exposures with a significant increase in credit risk and credit-impaired loans We tested system-based and manual controls of the timely classification of loans to the relevant stage. In cooperation with our specialists, we evaluated assumptions used for staging models and we recalculated the staging on a portfolio basis. We assessed the approach to staging and to modification loss recognition adopted by the Bank for loans to customers with deferred payments related to measures that were implemented to mitigate the negative consequences of the current macroeconomic and geopolitical situation. We tested a sample of loans and receivables (including loans that had not been classified by the management as Stage 3 and specific industries which were most impacted by the current macroeconomic and geopolitical situation to make our own assessment as to whether impairment had occurred and to assess whether impairment had been identified in a timely manner. Allowances for individually assessed credit-impaired loans We tested controls of the regular assessment and approval of allowances by the management. We selected a sample of loans and, where we deemed them impaired, evaluated the estimated future cash flows from customers including from the realisation of the collateral held, application of different scenarios and scenario weight. Our testing took into consideration the borrowers’ financial status and performance in the current economic environment affected by the current geopolitical situation and macroeconomic development. Interest and fee income recognition - Allowances for loans and receivables For the year ended 31 December 2024, the interest income from financial assets measured at amortised cost amounted to CZK 20,632 million and CZK 19,017 million for the Group and the Company, respectively. Total fee and commission income for the same period amounted to CZK 3,725 million and CZK 3,475 million for the Group and the Company, respectively. These items are the main contributors to the operating income of the Company and the Group affecting their profitability, with their main source being loans and deposits from clients. 134 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 While interest income is recognised on an accrual basis over the expected life of a financial instrument, the recognition of fee income depends on the nature of the fees as follows: • Fees that are directly attributable to financial instruments are accrued over the anticipated lifetime of the instrument and reported as interest income. • Fees for the services rendered are recognised over time and reported as fee and commission income. • Fees for transaction acts are recognised when the act is performed and reported as fee and commission income. • Commissions for mediating third-party products are recognised when the contract is concluded and reported only up to the amount of net commission as fee and commission income. The specifics of revenue recognition and a large volume of individually small transactions, which depends on the quality of input data relating to interest and fees and on IT solutions for their recognition, resulted in this matter being identified as a key audit matter. The management provided further information about interest income and fees and commissions in Notes 5.4, 5.5, 6 and 7 to the Consolidated Financial Statements and in Notes 5.3, 5.4, 6 and 7 to the Separate Financial Statements. Interest and fee income recognition - Related audit procedures Based on our risk assessment and industry knowledge, we evaluated the methodology applied and the assumptions used by the management. We tested the design and operating effectiveness of the key internal controls and focused on: • Assessment of interest/fees recognition during new product validation; • Input data related to interest/fees on customer loans and deposits, including authorisation of the changes in the interest and fees price list and authorisation of non-standard interest/fees; and • IT controls relating to access rights and change management of relevant IT applications with the assistance of our IT specialists. We also performed the following substantive tests with regard to interest and fee income recognition: We evaluated the accounting treatment applied by the Company to determine whether the methodology complies with the requirements of the relevant accounting standard. We focused our testing on the verification of the correct classification of: • Fees that are identified as directly attributable to the financial instrument; and • Fees that are not identified as directly attributable to the financial instrument. We evaluated the mathematical formulas used for accruing the relevant income over the expected life of the financial instrument. We analysed the accuracy of the recognised amount of interest income and fee and commission income using substantive analytical tests and monthly data analytics. Other Information in the Annual Financial Report In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in the Annual Financial Report other than the Consolidated and Separate Financial Statements and auditor’s report thereon. The Management Board is responsible for the other information. Our opinion on the Consolidated and Separate Financial Statements does not cover the other information. In connection with our audit of the Consolidated and Separate Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated and Separate Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we assess whether the other information, with the exception 135 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 While interest income is recognised on an accrual basis over the expected life of a financial instrument, the recognition of fee income depends on the nature of the fees as follows: • Fees that are directly attributable to financial instruments are accrued over the anticipated lifetime of the instrument and reported as interest income. • Fees for the services rendered are recognised over time and reported as fee and commission income. • Fees for transaction acts are recognised when the act is performed and reported as fee and commission income. • Commissions for mediating third-party products are recognised when the contract is concluded and reported only up to the amount of net commission as fee and commission income. The specifics of revenue recognition and a large volume of individually small transactions, which depends on the quality of input data relating to interest and fees and on IT solutions for their recognition, resulted in this matter being identified as a key audit matter. The management provided further information about interest income and fees and commissions in Notes 5.4, 5.5, 6 and 7 to the Consolidated Financial Statements and in Notes 5.3, 5.4, 6 and 7 to the Separate Financial Statements. Interest and fee income recognition - Related audit procedures Based on our risk assessment and industry knowledge, we evaluated the methodology applied and the assumptions used by the management. We tested the design and operating effectiveness of the key internal controls and focused on: • Assessment of interest/fees recognition during new product validation; • Input data related to interest/fees on customer loans and deposits, including authorisation of the changes in the interest and fees price list and authorisation of non-standard interest/fees; and • IT controls relating to access rights and change management of relevant IT applications with the assistance of our IT specialists. We also performed the following substantive tests with regard to interest and fee income recognition: We evaluated the accounting treatment applied by the Company to determine whether the methodology complies with the requirements of the relevant accounting standard. We focused our testing on the verification of the correct classification of: • Fees that are identified as directly attributable to the financial instrument; and • Fees that are not identified as directly attributable to the financial instrument. We evaluated the mathematical formulas used for accruing the relevant income over the expected life of the financial instrument. We analysed the accuracy of the recognised amount of interest income and fee and commission income using substantive analytical tests and monthly data analytics. Other Information in the Annual Financial Report In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in the Annual Financial Report other than the Consolidated and Separate Financial Statements and auditor’s report thereon. The Management Board is responsible for the other information. Our opinion on the Consolidated and Separate Financial Statements does not cover the other information. In connection with our audit of the Consolidated and Separate Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated and Separate Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we assess whether the other information, with the exception 6F8EDA1414B2073FE3D2A79A5EEE5458 of the sustainability statement, has been prepared, in all material respects, in accordance with applicable law or regulation, in particular, whether the other information, with the exception of the sustainability statement, complies with law or regulation in terms of formal requirements and procedure for preparing the other information in the context of materiality, i.e. whether any non-compliance with these requirements could influence judgments made on the basis of the other information. Based on the procedures performed, to the extent we are able to assess it, we report that: • The other information describing the facts that are also presented in the Consolidated and Separate Financial Statements is, in all material respects, consistent with the Consolidated and Separate Financial Statements; and • The other information, with the exception of the sustainability statement, is prepared in compliance with applicable law or regulation. In addition, our responsibility is to report, based on the knowledge and understanding of the Group and the Company obtained in the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we have performed on the other information obtained, we have not identified any material misstatement of fact. Responsibilities of the Company’s Management Board and Supervisory Board for the Consolidated and Separate Financial Statements The Management Board is responsible for the preparation and fair presentation of the Consolidated and Separate Financial Statements in accordance with IFRS Accounting Standards as adopted by the European Union and for such internal control as the Management Board determines is necessary to enable the preparation of Consolidated and Separate Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Consolidated and Separate Financial Statements, the Management Board is responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Board either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. The Supervisory Board is responsible for overseeing the Group’s and the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements Our objectives are to obtain reasonable assurance about whether the Consolidated and Separate Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated and Separate Financial Statements. As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the Consolidated and Separate Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management Board. 136 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 • Conclude on the appropriateness of the Management Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated and Separate Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the Consolidated and Separate Financial Statements, including the disclosures, and whether the Consolidated and Separate Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Management Board, the Supervisory Board and the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Management Board, the Supervisory Board and the Audit Committee, we determine those matters that were of most significance in the audit of the Consolidated and Separate Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Information required by regulation (EU) no. 537/2014 of the European parliament and of the council In compliance with Article 10(2) of Regulation (EU) No. 537/2014 of the European Parliament and of the Council, we provide the following information in our independent auditor’s report, which is required in addition to the requirements of International Standards on Auditing: Appointment of the Auditor and the Period of Engagement We were appointed as the auditors of the Company by the General Meeting of Shareholders on 23 April 2024 and our total uninterrupted engagement has lasted for 6 years. Consistency with the Additional Report to the Audit Committee We confirm that our audit opinion on the consolidated and separate financial statements expressed herein is consistent with the additional report to the Audit Committee of the Company, which we issued on 18 March 2025 in accordance with Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and of the Council. 137 INDEPENDENT AUDITOR’S REPORT Annual Financial Report 2024 6F8EDA1414B2073FE3D2A79A5EEE5458 • Conclude on the appropriateness of the Management Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated and Separate Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the Consolidated and Separate Financial Statements, including the disclosures, and whether the Consolidated and Separate Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Management Board, the Supervisory Board and the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Management Board, the Supervisory Board and the Audit Committee, we determine those matters that were of most significance in the audit of the Consolidated and Separate Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Information required by regulation (EU) no. 537/2014 of the European parliament and of the council In compliance with Article 10(2) of Regulation (EU) No. 537/2014 of the European Parliament and of the Council, we provide the following information in our independent auditor’s report, which is required in addition to the requirements of International Standards on Auditing: Appointment of the Auditor and the Period of Engagement We were appointed as the auditors of the Company by the General Meeting of Shareholders on 23 April 2024 and our total uninterrupted engagement has lasted for 6 years. Consistency with the Additional Report to the Audit Committee We confirm that our audit opinion on the consolidated and separate financial statements expressed herein is consistent with the additional report to the Audit Committee of the Company, which we issued on 18 March 2025 in accordance with Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and of the Council. 6F8EDA1414B2073FE3D2A79A5EEE5458 Provision of Non-audit Services We declare that no prohibited non-audit services referred to in Article 5 of Regulation (EU) No. 537/2014 of the European Parliament and of the Council were provided. In addition, there are no other non-audit services which were provided by us to the Company and its controlled undertakings and which have not been disclosed in the Annual Financial Report. Report on compliance with the ESEF regulation We have conducted a reasonable assurance engagement on the verification of compliance of the financial statements included in the Annual Financial Report with the provisions of Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (the “ESEF Regulation”) that apply to the financial statements. Responsibilities of the Management Board The Company’s Management Board is responsible for the preparation of the financial statements in compliance with the ESEF Regulation. Inter alia, the Company’s Management Board is responsible for: • The design, implementation and maintenance of the internal control relevant for the application of the requirements of the ESEF Regulation; • The preparation of all financial statements included in the Annual Financial Report in the valid XHTML format; and • The selection and use of XBRL mark-ups in line with the requirements of the ESEF Regulation. Auditor’s Responsibilities Our task is to express a conclusion whether the financial statements included in the Annual Financial Report are, in all material respects, in compliance with the requirements of the ESEF Regulation, based on the audit evidence obtained. Our reasonable assurance engagement was conducted in accordance with the International Standard on Assurance Engagements 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (hereinafter “ISAE 3000”). The nature, timing and scope of the selected procedures depend on the auditor’s judgment. Reasonable assurance is a high level of assurance; however, it is not a guarantee that the examination conducted in accordance with the above standard will always detect a potentially existing material non-compliance with the requirements of the ESEF Regulation. As part of our work, we performed the following procedures: • We obtained an understanding of the requirements of the ESEF Regulation; • We obtained an understanding of the Company’s internal control relevant for the application of the requirements of the ESEF Regulation; • We identified and evaluated risks of material non-compliance with the ESEF Regulation, whether due to fraud or error; and • Based on this, we designed and performed procedures responsive to those risks and aimed at obtaining a reasonable assurance for the purposes of expressing our conclusion. The aim of our procedures was to assess whether: • The financial statements included in the Annual Financial Report were prepared in the valid XHTML format; • The disclosures in the Consolidated Financial Statements were marked up where required by the ESEF Regulation and all mark-ups meet the following requirements: - XBRL mark-up language was used; - The elements of the core taxonomy specified in the ESEF Regulation with the closest accounting meaning were used, unless an extension taxonomy element was created in compliance with the ESEF Regulation; and 6F8EDA1414B2073FE3D2A79A5EEE5458 - The mark-ups comply with the common rules for mark-ups pursuant to the ESEF Regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Conclusion In our opinion, the Company’s financial statements for the year ended 31 December 2024 included in the Annual Financial Report are, in all material respects, in compliance with the requirements of the ESEF Regulation. In Prague on 19 March 2025 Audit firm: Statutory auditor: Deloitte Audit s.r.o. registration no. 079 Miroslav Mayer registration no. 2529 141 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONSOLIDATED    FINANCIAL   STATEMENTS    OF MONETA MONEY BANK,  a.s. As at and for the Year Ended 31 December 2024 Prepared according to IFRS Accounting Standards as adopted by  the European Union 142 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 31 December 2024 CZK m Note 2024 2023 Inte rest and similar income 1) 22,207 22, 046 Inte rest expense and similar char ges (13,288) (13,469) Net interest income 6 8,919 8,577 Fee and commission income 3,725 3, 217 Fee and commission expense   (665) (593) Net fee and commission income 7 3,060 2,624 Dividend income 8 - 3 Net income from financial operations 9 860 889 Other operating income 10 72 54 Total operating income 12,911 12,147 Personnel expenses 11 (2,664) (2,504) Administrative expenses 12 (1,552) (1,633) Regulatory charges 13 (216) (307) Depreciation and amortisation 14 (1 ,225) (1,233) Other operating expenses 15 ( 65) (53) Total operating expenses (5,722) (5,730) Profit for the period before tax and net impairment of financial assets 7,189 6,417 Net impairment of financial assets 16 (386) (305) Profit for the period before tax 6,803 6,112 Taxes on income 17 (995) (912) Profit for the period after tax 5,808 5,200 Items that will not be reclassified to profit or loss   - Change in fair value of Investment securities recognised in OCI - - Items that may be reclassified subsequently to profit or loss   - Movement in hedging reserve: - -     - Cash flow hedg es – effective porti on of changes in fair value - -   - Deferred tax 38.2 - - Other comprehensive income, net of tax - - Total comprehensive income attributable to the equity holders 5,808 5,200 Profit for the year after tax attributable to the equity holders 5,808 5,200 Profit for the year after tax attributable to the equity holders per share Weighted average of ordinary shares (millions of shares) 511 511 Basic earnings per share (in CZK) 18 11.37 10.18 Diluted earnings per share (in CZK) 18 11.37 10.18  1)  Calculated using the effective interest meth od with the exception of hedging derivativ es. 143 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2024 CZK m Note 31 Dec 2024 31 Dec 2023 Assets Cash and cash balances at the central bank 1) 19 13,541 10,871 Derivative fi nancia l instruments with positiv e fair values 27 596 544 Investment securities 24 116,664 104,353 Hedging deriva tives with positive fa ir values 27 2,314 2,701 Change in fair value of items he dged on portfolio basis 200 122 Lo ans and receivables to banks 22 79,206 69,632 Lo ans and receivables to customers 23 275,383 263,0 64 Intangible assets 28 3,365 3,332 Property and equipment 29 2,260 2,400 Investments in associa tes 37 3 3 Current tax assets 30 70 76 Other assets 32 1,380 1,086 TOTAL ASSETS 494,982 458,184 Liabilities Derivative fi nancia l instruments with negative fair values 27 532 523 Due to banks 33 3,834 5,423 Due to customers 34 430,021 399,49 7 Hedging deriva tives with negative fair values 27 4,259 4,548 Change in fair value of items he dged on portfolio basis 78 63 Issued bonds 25 11,562 3,808 Subordinated liabilities 26 7,622 7,6 04 Provisions 35 263 266 Current tax liabilities 30 47 54 Deferred tax liabilities 31 469 462 Other liabilities 36 4,416 3,733 Total liabilities 463,103 425,981 Equity Share capital 38 10,220 10,220 Sta tutory res erve 38 102 102 Other reserves 1 1 Retained earnings 21,556 21,880 Total equity 31,879 32,203 TOTAL LIABILITIES AND EQUITY 494,982 458,184 1)   The caption of the line has been changed to “Cash and ca sh balances at the central bank” without any change to the items reported. The previous caption of the  line was “Cash and balances with the central bank”.  144 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2024 CZK m Share capital Statutory reserve Reserve from revaluation of FVTOCI Retained earnings Total Balance as reported 1 January 2024 10,220 102 1 21,880 32,203 Transactions w ith owne rs  of the company   - Dividends - - - (6,132) (6,132) Total comprehensive income Profit for the year after tax - - - 5,808 5,808 Other comprehensive income after tax   -  Change in fair value of FVTOCI investment  securities - - - - -   -  Cash-flow hedges – effective portion o f changes  in fair value - - - - -   - Deferred tax - - - - - Balance 31 December 2024 10,220 102 1 21,556 31,879 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2023 CZK m Share capital Statutory reserve Reserve from revaluation of FVTOCI Retained earnings Total Balance as reported 1 January 2023 10,220 102 1 20,768 31,091 Transactions w ith owne rs  of the company   - Dividends - - - (4,088) (4,088) Total comprehensive income Profit for the year after tax - - - 5,200 5,200 Other comprehensive income after tax   -  Change in fair value of FVTOCI investment  securities - - - - -   -  Cash-flow hedges –  effective por tion  of changes in fair value - - - - -   - Deferred tax - - - - - Balance 31 December 2023 10,220 102 1 21,880 32,203 145 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2024 CZK m Note 2024 2023 Cash flows from operating activities Profit for the year after tax 5,808 5,200 Adjustmen ts for:   Depreciation and amortisation 14 1,225 1,233   Net impairme nt of financial assets (excl. cash collection and recovery) 16 378 320   Net gain on revaluation of investment securities 9 (10) (6 )    Accrued coup on, amortisation of discount/premium of investmen t securities 873 609   Accrued interest income from derivatives 796 955   Accrued interest income on loans and receivables to customers and ban ks 1) 464 129   Accrued interest expense due to cu stomers and banks 1) (451) 221   Net gain/loss from revalu ation of hedging derivatives 9 (751) 4,915   Net gain/loss from revalu ation of items hedged on portfolio basis 9 771 (5,009)   Net gain/loss from unrealised FX (4 3) (7)    Change in provisions not recognised in d epreciation and amortisation 7 (10)   Net gain/loss on sale of investment securities (59) (26)   Net loss on sa le and other disp osal of tangible and intangible assets 28, 2 9 1 3   Share of profit or loss of associates accounted for using the equity method 9 (3) -   Dividend income 8 - (3)   Tax expense 17 995 912 10,001 9,436 Changes in:   Loans and receivables to customers and banks 1) 22, 23 (13,481) 3,229   Oth er assets 32 (294) 49   Due to banks 1) 33 (1,558) (587)   Due to customers 1) 34 30,944 65,073   Other liabilities 36 788 (16) 26,400 77,184 Income ta xes paid (989) (1,445) Net cash used in operating activities 25,411 75,739 Cash flows from investing activities   Acquisition of investment securi ties (15,191) (45 ,320)   Proceeds from investment s ecurities 1,549 1,817   Acquisition of property and equipment and intangible assets 28, 2 9 (916) (794)    Pr oceeds from the sale of property and equipment and intangible assets 28, 29 14 38   Dividends received 3 3 Net cash used in investing activities (14,541) (44,256) 146 CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m Note 2024 2023 Cash flows from financing activities   Proceeds from issued bonds 7,474 -   Repayment of issued bonds - (1,900)   Proceeds from subordinated deposits - 2,922   Payments of lease liabilities (309) (299)   Dividends paid (6 ,132) (4,088) Net cash used in financing activities 1,033 (3,365) Net change in cash and cash equivalents 11,903 28,118 Cash and cash equivalents at beginning of period 20 78,263 50,101 Effec t of excha nge rate fluctuations on cash and cash equivalents held 65 44 Cash and cash equivalents at end of period 20 90,231 78,263 Inte rest receive d 2) 29,452 26,794 Interest paid 2) (18,694) (16,180) 1)   In 2024, the Group added separate lines “Accrued interest income on l oans an d receivables to customers and banks” and “Accrued interest expense due to  customers an d banks”.  For the purpose of comparability, the previous period has been adjusted. 2)   Lines “Interest  received”  and  “Interest paid” represent  interest  paid  by  customers  and  counterparties  and received  from  custom ers  and  counterparties,  respectively, and are inclu ded in cash flows from operating activities. 147 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 NOTES  TO  CONSOLIDATED    FINANCIAL   STATEMENTS    OF MONETA MONEY BANK , a.s. As at and for the Year Ended 31 December 2024 Prepared according to IFRS Accounting Standards as adopted by  the European Union 148 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CONTENT 151  |  1. GENERAL INFORMATION 151  |  2. BASIS OF PREPARATION 151  |  2.1  BASIS OF PRESENTATION 151  |  2.2  GOING CONCERN 151  |  2.3  FUNC TIONAL AND PRESENTATION CURR ENCY 152  |  2.4  MEASUREMENT 152  |  3. USE OF ESTIMATESAND JUDGEMENTS 152  |  4. NEW IFRS ACCOUNTING STANDARDS AND INTERPRETATIONS 152  |  4.1  STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND ENDORSED BY THE EU 152  |  4.2  STA NDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY TH E IASB AND NOT ENDORSED BY THE EU 153  |  5. SUMMARY OF MATERIAL ACCOUNTING POLICIES 153  |  5.1  CHANGES IN ACCOUNTIN G POLI CIES – NEWLY EFFECTIVE AND ENDORSED IFRS ACC OUNTING STANDARD S 154  |  5.2  FOREIGN CURR ENCY 154  |  5.3  BASIS OF CONSOLIDATION 154  |  5.3.1  Busines s Comb i nati ons 154  |  5.3.2  Non-Controlling Interests 154  |  5.3.3  Subsidiaries 154  |  5.3.4  Associa tes 154  |  5.3.5  Loss of Control 155  |  5.3.6  Transactions Eliminated on Consolidation 155  |  5.4  INTEREST 155  |  5.5  FEES AND COMMISSIONS 156  |  5.6  DIVIDENDS 156  |  5.7  FINANCIAL ASSETS AND FINANCIAL LIABILITIES 156  |  5.7.1  Recognitio n 156  |  5.7.2  Cl assification of Financial Assets 157  |  5.7.3  Classification of Financial Liabilities 158  |  5.7.4  Reclassification 158  |  5.7.5  Derecognition 158  |  5.7.6  Modifications 158  |  5.7.7  Offsetting 158  |  5.7.8  Amortised Cost Measurement 158  |  5.7.9  D erivatives and Hedge Accounting 159  |  5.7.10  I mpairment of Financial Assets 160  |  5.8  REPURCHASE AND REVERSE REPURCHASE AGREEMENT S 161  |  5.9  FAI R VALUE MEASUREMEN T 161  |  5.10  PROVISIONS 161  |  5.11  LEASES 162  |  5.12  PROPERTY AND EQUIPMENT 163  |  5.13  INTANGIBLE ASSETS 163  |  5.14  I MPAIRMENT OF NON-FIN ANCIAL ASSETS 164  |  5.15  EMPL OYEE BENEFITS 165  |  5.16  CASH AND CASH BALANCES AT THE CENTRAL BANK 165  |  5.17  INCOME TAX AND DEFERRED TAX 165  |  5.18  SEGMENT REP ORTING 166  |  5.19  FINANCIAL GUARANTEES AND LOAN COMMITMENTS 166  |  5.20  SUBORDINATED LIABILITIES 166  |  5.21  MORTGAGE-BACKED BONDS 166  |  5.22  OTHER IS SUED BONDS 167  |  6. NET INTEREST INCOME 169  |  7. NET FEE AND COMMISSION INCOME 169  |  8. DIVIDEND INCOME 169  |  9. NET INCOME FROM FINANCIAL OPERATIONS 169  |  10. OTHER OPERATING INCOME 169  |  11. PERSONNEL EXPENSES 149 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 170  |  12. ADMINISTRATIVE EXPENSES 170  |  13. REGULATORY CHARGES 170  |  14. DEPRECIATION AND AMORTISATION 170  |  15. OTHER OPERATING EXPENSES 170  |  16. NET IMPAIRMENTOF FINANCIAL ASSETS 171  |  17. TAXES ON INCOME 172  |  18. EARNINGS PER SHARE 172  |  19. CASH AND CASH BALANCES AT THE CENTRAL BANK 172  |  20. CASH AND CASH EQUIVALENTS 173  |  21. TRANSFER OF FINANCIAL ASSETS – REPURCHASE TRANSACTIONS 174  |  22. LOANS AND RECEIVABLES TO BANKS 174  |  23. LOANS AND RECEIVABLES TO CUSTOMERS 175  |  24. INVESTMENT SECURITIES 176  |  25. ISSUED BONDS 176  |  26. SUBORDINATED LIABILITIES 177  |  27. FINANCIAL DERIVATIVES 179  |  28. INTANGIBLE ASSETS 180  |  29. PROPERTY AND EQUIPMENT 181  |  30. CURRENT TAX ASSETS AND CURRENT TAX LIABILITIES 181  |  31. DEFERRED TAX ASSETS AND LIABILITIES 181  |  32. OTHER ASSETS 181  |  33. DUE TO BANKS 182  |  34. DUE TO CUSTOMERS 182  |  35. PROVISIONS 183  |  36. OTHER LIABILITIES 183  |  37. CONSOLIDATION GROUP 184  |  38. EQUITY 184  |  38.1  SHARE CAPITAL OF THE GROUP 185  |  38.2  STATUTORY RESERVE AND RESERVE FROM REVALUATION OF FINANCIAL ASSETS OF THE GRO UP 186  |  38.3  DIVIDENDS PER SHARE 186  |  39. BONUSES TIED TO THE EQUITY 186  |  40. CONTINGENT LIABILITIES 186  |  40.1  L OAN COMMITMENTS AND ISSUED GUARANTEES 186  |  40.2  LEGAL DISPUTES 186  |  41. LEASES 189  |  42. TRANSACTIONS WITH RELATED PARTIES 190  |  42.1  REMUNERATION TO MEMBERS OF SUPERVISORY BOARD, MANAGEMENT BOARD AND OTHER KEY EXECUTIV E MANAGERS 190  |  43. SEGMENT REPORTING 191  |  44. RISK MANAGEMENT 192  |  44.1  CAPITAL MANAGEMENT 193  |  44.2  CREDIT RISK 193  |  44.2.1  Credit Risk Management 195  |  44.2.2  Catego risation of Exposures 196  |  44.2.3  Collateral Assessment 196  |  44.2.4  Allowan ces Calculation 202  |  44.2.5  Credit C oncentration Risk 205  |  44.2.6  Credit Portfolio and its Quality 208  |  44.2.7  Modified Financial Assets 210  |  44.3  INTEREST RATE RISK 212  |  44.4  FOREIGN EXCHANGE RISK 214  |  44.5  LIQUIDITY RISK 219  |  44.6  OPERATIONAL RISK 220  |  44.6.1  Legal Risk 220  |  45. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES 222  |  46. MANDATORY PUBLISHED INFORMATION 222  |  47. SUBSEQUENT EVENTS 151 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 1. GENERAL INFORMATION MONETA (the “Group”) consists of the parent co mpany  MONETA  Money  Bank,  a.s.  (the  “Bank”),  and  its  subsidiaries and associates listed in note 37.  The  latest  available  list  of  entities  recorded  in  the  registry of book-entry shares of the B ank kept by the  Central  S ecurities  Depository  in  Prague  (Centrální  depozitář  cenných  papírů,  a.s.)  with  a  shareholding  interest of m ore than 1% of the Bank’s registered share  capital  is  available  in  the  investor  relations  section  of  the  Bank’s  website  at:  https://investors.moneta. cz /shares.  Such  entities  may  no t  necessarily  be  the  beneficial  shareholders  of  the  Bank  but  may  h old  shares of the Bank for the beneficial shareholders (such  as securities brokers, banks, custodians or nominees). Please  r efer  to  chapter  1.4  o f  the  Annual  financial  report to the section “Shareh older structure” for the  information on the shareholder structure of the Bank as at 31 December 2024. As far as the Bank is aware, no shareholder was a co ntr olling entity of the Bank as at  31 Dece mber 2024. The Bank’s registered office is at Vyskočilova 14 42/1b,  Michle,  140  00  Prague  4,  po st  code  140  28 ,  Czech  Republic and its ID number is 25672720, ISIN number:  CZ0008040318. As  at  31  December  2024  the  Group  consis ts  of  the  following entities, which are further descri bed in note 37: Name Business activity MONETA Auto, s.r.o. Auto financing  (Providing of loans) MONETA Leasing, s.r.o. Financing of loans  and leasing MONETA Money Bank, a.s. Providing loan  and deposit products MONETA Stavební Spořitelna, a.s. Building savings and  bridging loans The Gr oup operates in the Czec h Republic and focuses  primarily on secured and unsecured consumer lending,  commerc ial financing and building savings. The consumer  port folio  co n sists  of  secured  and  uns ecured  lending.  Unsecured lending products include consumer and auto  loans, credit cards, personal overdrafts, building savings  loans and bri dging loans. Secured lendin g is  provided  i n  the  form  of  mortgages.  Commercial  lending  products  range  from  working  capital,  investment  loans,  auto  loans, inventory financing, fi nancing of small businesses  and entrepreneurs through guarantees, letters of credits  and foreign exchange transactions. The Group provides  a wide  range of  deposit  and  transactional products  to  retail and commercial customers. The Group issues debit and credit cards in cooperation with  VISA  and  cooperates  with  EVO  Payments  International  in  acquiring  services.  In  addition,  the  Group  interme diates  additional  payment  pro tection  insurance  which  covers  the  customer’s  monthly  lo an  payment  in  the  event  of  unemployment,  accident  or  sickness. Th e  Group  also  acts  as  the  intermediary  to  provide  its  custom e rs  with  other  insurance  and  investment products. The  Group’s  consolidated  financial  statements  were  authorised  for  issue  by  the  Management  Board  on  17  March  2025,  examined  by  Supervisory  Board  and  recommended  to  be  pub lished  on  18  March  2025.  In  additio n,  the  financial  statements  are  subject  to  approval at the General Meeting of sharehold e rs. All press releases, financial reports and other i nformation  are available on the Bank’s website: www.moneta.cz. 2. BASIS OF PREPARATION 2.1 BASIS OF PRESENTATION The  finan cial  statements  contained  herein  are  consolidated  financial  statements  of  the  Group  prepared in accordance with IFRS Accounting Standards  as adopted by the European Union (IFRS® Accounting  Standards). IFRS Accounting Standards as adopted by the European  Union  comprise  acc ounting  standards  issu ed  or  adopted  by  the  International  Accounting  Standards  Board  (IASB)  as  well  as  interpretations  i ssued  or  adopted by the IFRS Interpretations Committee (IFRIC). These financial statements were not prepared for any  special purpose such as potential merger or ac quisition. 2.2 GOING CONCERN The  consolidated financial statements are  pre pared  on a going concern basis, as the Management Board is  satisfied that the Gro up has the resources to continue  in business for the fo reseeable future. In making this  asses sment, the Management Board has considered  a wid e range of information r e lating to present and  future  conditions,  including  future  projections  of  profitability, cash flows and capi tal resources. 2.3 FUNCTIONAL AND PRESENTATION CURRENCY The Group’s financial statement s are presented in the  Czech  Koruna  (CZK),  which  is  the  Group’s  functional  currency.  All  am ounts  have  been  rounded  to  the  nearest million, except where otherwise indicated. 152 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 2.4 MEASUREMENT The  consolidated  financial  statements  have  b een  prepared  on  a  historical  cost  basis,  except  for  investment  securities  measured  at fair  value  through  other  co mprehensive  income  (FVTOCI),  investm e nt  securities measured at fair value thro ugh profit or lo ss  (FVTPL)  and  derivative  financial  instruments  which  have been measured at fair value. The carrying values  of recognised assets that are hedged items in fair value  hedges, and otherwise carried at  amortised cost, are  adjusted to record changes in fair value attributable to  the  risks  that are  being  hedged,  and  this  adjustment  is either reported on a separate line of the statement of  financial  position  in  the  case of  the  application  of  port folio  fair  value  hedges,  or  is  directly  adjusting  carrying value of the hedged item in the case of micro  hedges. 3. USE OF ESTIMATES AND JUDGEMENTS The preparation of the Group’s financial statements in  conformity  with  IFRS  Accounting  Standards  requires  the  use  of  estimates  and  judgements  about  fu ture  conditions. In  view  of  the  inherent uncertainties  and  the high level of subjectivity involved in the r ecognition  or measurement of the items listed below, it is possible  that  the  outcomes  in  the  next  financial  year  could  differ  from  those  on  which  management’s  estimates  are based, resulting in materially different c onclusions  from those reached by management for the purposes  of the 2024 Consolidated Financial Statement s. Estimates  and  unde rlying  assump tions  are  rev iewed  on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are  revised and i n any f uture periods affected. Information  abo ut  critical  judgements  an d  estimates  in  applying  accounting  policies  that  have  the  most  significant  effect  on  the  amounts  recognised  in  the  Group’s  financial  statements  is  included  in  the  following notes: •  Deferred tax assets and liabilities – note 31; •  Impairment of finan cial assets – notes 16 and 44; •  Provisions – note 35; •  Fair value – note 45; •  Classification of leases – note 5.11; •  Classification of financial assets – note 5.7.2. Significant  estimates  related  to  future  develo pment  of  pre payments  of  the  loan’s  notional  amount  were  made by the management of the Group in the area of  expected cash  flows from  loan receivables which are  used for determination of amortised cost of the debt  finan cial assets. Impact of the current macroeconomic environment Significant  jud gements  made  by  the  management  i n  applying the Group’s accounting policies and  the key  sources  of  uncertainty  estimation  were  significantly  impacted mainly by macroeconomic effects of a high  interest-rate  environment  which  were  reflected  in  the  loan  loss  allowances  level  through  management  overlays. Further description of these impacts is provided in the  following notes: •  Net impairment of financial assets – note 16; •  Credit Risk – note 44.2. 4. NEW IFRS ACCOUNTING STANDARDS AND INTERPRETATIONS 4.1 STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND ENDORSED BY THE EU (a) New standards and amendments to the existing standards with a significant impact on the Group None. (b) New standards and amendments to the existing standards with a minor or no impact on the Group •   Amendments  to  IAS 21  The  Effects  of  Changes  in  Foreign  Exchange  Rates  –  Lack of  Exchangeability  (effective for annual periods beginning on or after  1 January 2025). 4.2 STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND NOT ENDORSED BY THE EU The  below  listed  new  accounting  standards  and  amendments  to  the  existing  standards  have  been  published  by  the  IASB  that  are  not  mandato ry  for  reporting periods ended 31 December 2024 and have  not been adopted by the European Union. The Group intends to adopt these standards and amendments, if  applicable, when they become effec tive as endorsed by  the EU. The Group’s assessment of the impact of these  new stand ards and amendments is set out below. 153 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (a) IFRS 18 – Presentation and Disclosure in Financial Statements In April 2024,  the Board issued IFRS 18 Presentation and  Disclosure in Financial Statements, which replaces IAS 1  Presentation of Financial Statement s. The new standard  introduces new categories and subtotals in the statement  of profit or loss an d prescribes disclosure of management- defined performance measures (MPM). The standard also  brings  new  requirements  for  the  location,  aggregation  and disaggregation of financial information. Requirements regarding Statement of profit or loss All  income  and  expense  items  shall  be  classified  into  one  of  the  five  catego ries:  operating,  i nvesting,  finan cing, income taxes, and discontinued operations.  On top of that the standard requires the prese ntation  of subtotals such as “Operating profit or loss”, “Profit or  loss before financing and income taxes” and “Profit or  loss”. Classification is influenced by the main business  activity  defined  by  the  s tandard  as  “Investing  in  particular types of assets” and “Prov ision of financing  to  customers”.  Th e  entity  may  be  subject  to  one  of  them or both. Management-defined performance measures The  standard  introduc e s  the  concept  of  a  management-defined  performance  measure  (MPM)  which is in general the subtotal of income and expenses  that  an  entity  uses  to  externally  communicate  management’s  view  on  the  fi nan cial  performance  of  the  entity  to  users  of  financial  statements.  The  stand ard requires  disclosure  of  information  about  all  of an entity’s MPMs within a single note to the financial  statements and requi res disclosures to be made about  each MPM, such as how the measure is calculated or a reconciliation to the mos t comparable subtotal of the  Statement of profit or loss . Aggregation and disaggregation and location of information The  standard  differentiates  between  “presentation”  within  primary  finan cial  statements  and  “disclosure”  within  notes  to  f i nan cial  statements  and  prescribes  which  items  shall  be  presented  and  which  shall  be  presented  and/or  disclosed.  Aggregati on  and  disaggregation shall be done with reference to similar  and dissimilar characteristics and also with respect to  the materiality of the information. The amendments shall b e effective for annual p e riods  beginning 1 January 2027. The  Group  is  currently  evaluating  the  impact  of  the  new  standard  on  the  Group´s  consolidated  primary  finan cial statements and notes. (b) New standards and amendments to the existing standards with a minor or no impact on the Group: •  IFRS 19 Subsidiaries without Public Accountability:  Disclosures (effective for annual periods beginning  on or after 1 January 2027); •  Annual Improvements to IFRS Accountin g Standards  – Volume 11 (effective for annual periods beginning  on or after 1 January 2026); •  Amendments to the Classification and Measurement  of Financial Instruments  –  Amendments to IFRS 9 and  IFRS  7 (effecti ve  for  annual  perio ds beginning  on or  after 1 January 2026). 5. SUMMARY OF MATERIAL ACCOUNTING POLICIES The  Group  applies  accounting  poli cies  consistently  with  the  exception  described  in  chapter  5.1 Changes  in  accounting  policies.  These  changes  resulted  from  the  adop tion  of  new  standards  or  amendments  as  listed  below.  However,  none  of  those  standards  or  amendments  have  a  material  impact  on  the  Group’s  finan cial statements. 5.1 CHANGES IN ACCOUNTING POLICIES – NEWLY EFFECTIVE AND ENDORSED IFRS ACCOUNTING STANDARDS The  following  ame ndments  to  the  existing  standards  issued  by  the  International  Accounting  Standards  Board (IASB) and adopted by the EU are effective for the  current  reporting  perio d .  Their ado ption  has  not  had any material impact on the disclosures or on the  amounts reported in these financial statements. •  Amendments  to  IAS  1  Prese ntation  of  Financial  Statements  –  Classification  of  Liabilities  as  Current  or  Non-Current  and  Classification  of  L iabilities  as  Current or Non-Current – Deferral of Effective Date  (effective  for  annual  periods  beginning  on  or  after  1 January 2024); •   Amendments  to  IAS  1  Presentatio n  of  Financial  Statements – Non-Current Liabiliti e s with Covenants  (effective for annual periods beginning on or after  1 January 2024); •  Amendments to IAS 7 Statement of Cash Flows and  IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements (effective for annual periods beginning on or after 1 January 2024); •  Amendments to IFRS 16 Leases – Lease Liability in  a Sale and Leaseback (effective for annual periods  beginning on or after 1 January 2024). 154 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 5.2 FOREIGN CURRENCY The  co nsolidated  financial  statements  are  presented  in  the  Czech  Koruna  (CZK),  which  is  also  the  Group’s  functional currency. Transactions in foreign currencies  are translated into the functional currency of the Group  at the exchange rates published by the Czech National  Bank at the date of the transactions. Foreign  e xchange gains  and  losses  resul ting f rom the  settlement of such transactions and from the translation  of  monetary  assets  and  liabilities  de nominated  in  foreign  curren cies  at  year-end  exchange  rates  are  recognised  in  the  profit  or  loss  in  “Net  inco me from  finan cial operations”. 5.3 BASIS OF CONSOLIDATION 5.3.1 Business Combinations Business  combinations  are  accounted  for  using  the  acquisition  method  as  at  the  acquisition  date  –  i.e.  when the change of control occurs. The consideration  transferred in  the  acquisition  is  measured  at  the  fair  value, as are the identifiable n et assets acquir ed. Any  goodwill that arises is tested annually for impairment.  Goodwill is  measured  as  the  excess  of  the aggr egate  of  the  consideration  transferred,  the  amount  of  any  non -controllin g  interest  and  the  fair  value  of  any  previously  held  equi ty  interest  in  the  acquir ee,  if  any, over the net of the fair values of the identifiable  assets and  liabilities  assumed.  Any  gain  on  a  bargain  purchase  is  recognised  in  p rofit  or  loss  immediately.  Acquisition-related costs are recognised as an expense in  the  pr o fit  or  loss  in  the  period  in  which  they  are  incurred. Any contingent  consideration  payable is measured  at  fair value at the acquisition date. If  the  acquisition  occurs  within  the  current  period,  prior period figures (comparatives) are not adjusted by  preacquisition balances  of  the  acquiree (i.e.  acquired  entity).  Thus  reported  figures  shall  be  read  in  such  context. As  there  is  no  specific  guidance  in  IFRS  Accounting  Standards  for  business  combinations  under  common  control,  the  Group  app lies  method  within  the  assets  and  liab i lities  that  these  are  measured  by  using  the  acquirer’s  book  values,  i.e.,  book  values  from  consolidated financial s tatements of the Group. 5.3.2 Non-Controlling Interests Non -controllin g  interests  ar e  measured  at  the  proportionate share on the acquiree’s identifiable net  assets at the date of acquisition. Changes  in  the  Group’s  interest  in  a  subsidiary  that  do not result in a loss of control are accounted for as  equity transactions. 5.3.3 Subsidiaries Subsidiaries are investees c ontrolled by the Group. The  Group  controls  an  investee  if  it  is  exposed  to,  or  has  rights to, variable re turns from its involvement with the  investee and has the ability to affect those returns through  its power over the investee. The financial statements of  subsidiaries  are  included  in  the  consolidated  financial  statements from the date on which control commences  until the date when control ceases. 5.3.4 Associates Associates are all entities over which the Group has  significant influence but not control or joint control.  The  Group  evidences  the  e xistence  of  significant  influence  i f  one  o r  more  of  th e  following  points  is  met. The Group: •   has  represent ation  on  the  board  of  directors  or  equivalent governin g body of the investee; •  participate  in  policy -making  proce sses,  including  participation in decisions about dividends or other  distributions; •  has material transactions with its investee; •  interchange  of  managerial  p e rsonnel  with  its  investee; •   provision of essential tec hnical information with its  investee. The  Group  uses  the  rebuttable  presumption  that  significant influence exists if the Group holds between  20-50% of the voting rights. The  consolidated  financial  statements  of  the  Group  also include the  attributable share  of the results  and  other comprehensive income of associates determined  using the equity method and based on either financial  statements for the annual period ended 31 December  or  on  pro-rate d  amounts  adjusted  for  any  material  transactions or events occurring between the date of  the fi nan cial statements availab le and 31 December. 5.3.5 Loss of Control When  the  Group  loses  control  over  a  subsidiary,  it  derecognises the assets and liabilities of the subsidiary  and  any  related  non-controlling  interests  and  other  components  of  equity.  Any  resulting  gain  or  loss  is  recognised  in  profit  or  loss.  Any  interest  retained  in  the former subsidiary is measured at fair value  when  control is lost. 155 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 5.3.6 Transactions Eliminated on Consolidation Intra-group  balances  and  transactions,  and  any  unrealised  income  and  expenses  arising  from  intra-group transactions, are eliminated in preparing th e  consolidated financial statements. Unrealised losses are  eliminated in the same  way as unrealised gains but only  to the extent that there is no evidence of impairm e nt. 5.4 INTEREST Interest  income  or  expen se  from  all  interest-bearing  finan cial  instruments  recognised  using  the  effective  interest  rate  is  reported  in  the  profit  or  loss  in  th e  line items “Interest and similar incom e” and “Interest  expens e  and  similar  charges”  respectively  as  part  of  revenue  and  expenses  from  continuing  operations.  Additionally,  interest  income  and  expense  fr om  hedging derivatives is reported in the same lines. The  effective  interest  rate  method  is  a  method  of  calculating  the  am ortised  cost  of  a  financial  asset  or  a  finan cial liability.  The  effective  interest  rate is a  rate that exactly discounts the estimated future cash payments  and  receipts  through  the  expected  life  o f  the financial asset o r financial liability to their carrying  amount. When calculating the effective interest rate,  the  Group  estimates  future  cash  flows  consid e ring  all  contractual  terms  of  the  financial  instrument  and  includes  transaction  costs  and  fees  paid  or  r eceived  that are an integral part of th e effective interest rate  but excludes future credit losses. Transaction  costs  include  incremental  costs  that  are  directly attributable to the acquisition or issue of the  finan cial asset or financial liability. Interest income and expense presented in the profit or loss include: •  Interest  on  financial  assets  and financ ial  liabilitie s  measured  at  amortise d  cos t  calculated  on  an  effective interest rate basis; •  Interest  o n  interest r ate  derivatives designated as  hedging  derivatives  using  the  contractual  interest  rate of the corresponding derivative. If the financial asset is consid e red impaired, the interest  income representing the time value of money between  the impairment event and the estimated recovery date  continues to be recognised using the effective interest  rate  method  (unwinding)  and  the  effective  interest  rate  is  applied  on  the  financial  asset’s  net  carrying  amount.  The  Group calculates  the  unwinding  for  the  period using  an indi vidual deal-by-deal approach an d  individual effective interest rates. 5.5 FEES AND COMMISSIONS Fee  and  commission  income  from  contracts  with  custome rs  is  measured  based  on  th e  consideration  specified  in  a  contract  with  a  customer.  The  Gro up  recognises  revenue  w hen  it  transfers  control  over  a  service to a customer. The  foll owing  is  a  description  of  principal  activities  of the Group including their nature and timing of the  satisfaction  of  performance  obligation  in  contracts  with customers, as well as  significant  p ayment terms  and related revenue rec ognition policies. The  Group  provides  banking  and  lending  services  and  distribution  of  third-party  products  to  ret ail  and  or  commercial  customers,  such  as  account  management, provision of overdraft facilities, foreign currency  transactions,  c redit  cards,  lending  se rvice s ,  inventory financing, building savings, distributing asset  management and insurance products. Fees  and  commissi ons  paid  o r  received  that  are  directly  attributable  to  the  issue  or  acquisition  of  a  finan cial asset or financial liability are an integr al p art  of the effective interest rate on that financial asset or  finan cial liability and are included in the measurement  of the effective interest rate. Revenue  from  commission-based  fees  for  arranging  the  sale  of  third  party  insurance  and  investment  products  is  recognised  at  the  point  in  time  when  the  respective  contract  is  concluded.  The  Group  has  evaluated that i t act s as an agent as the Group does not  control  the  provi ded services  that  are  transferred  to  the customer (the Group does not integrate the related  services  and  does not  have discretion  in  establishing  the  price).  There fore,  the  Group  recognises  only  the  net  amount  of  expected  consideration  as  revenue.  The  commission  fee  is  typically  derived  from  the  volume of arranged contract as well as the respective  contract  p e rformance.  The  Group  has  evaluated  that  the  performance-based  fee  shall  not  be  included  in  the  measurement  of  transaction  price  as  variable  consideration, because co llection  of  the  fee  is  highly  susceptibl e  to  factors  outside  th e  Group’s  influence.  The  Group  recognises  performance-based  fees  when  confirmed  by  the  respective third  party. Commission  fees that are subject to claw-back are recognised only to the e xtent that it is highly probable that a significant  reversal  in  the  amount  of  revenue  will  not  occur  (historical  data  are  used  for  evaluation).  The  Group  has  concluded  that  respective  liability  does  not  give  rise to accounting of a significant financ i ng component  because it arises for reasons other than the provi sion  of fi nan ce to the Group. Revenue  from  servicing  fees  and  fees  for  ongoing  deposit  and  lending  account  maintenance  are  156 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 charged to customer’s account on a regular basis and  recognised over time as the customer simultane ously  consumes the  respective  be nefits. The Group applie s  different fees for each custom e r se gment and service  level. Revenue from s e rvicing fees is recognised on a  strai ght-line  basis.  The  c ontracts,  with  the  exception  of  term  deposits  and  building  saving s ,  do  not  have  a  minimal  committed  duration  period.  In  the  case  of  contracts  with  the  Group’s  client s ,  the  fees  are  settled  from  their  accounts  or  through  the  regular  periodic repayments. In  the  case  of  third  parties  the  Group applies the standard payment conditions for the  finan cial industry sector. The  Group  does  not provide  service incentives (such  as  temporary  service  discounts)  that  would  give  rise  to recognition of a contr act asset. The Group does not  receive  any  non -refundable  upfront  payments  from  its  cus tomers  that  would  give  rise  to  r ecognition  of  a  respe ctive  contract  liability  or  customer  option  or  significant fi nan cing component. Incremental distribution costs paid for the acqui sition  of  deposit  contracts  (current  accounts  and  savings  accounts) are recognised as an asset and amortised over  the period for which a customer is expected to receive  the respective services. The Group has evaluated the  expected amortisation period to five years. Commissions  paid  for  the  origination  of  building  savings  and    term  deposits  and  respective  opening  fees  are  part  of  the  amortised  cost  of  the  financial  liability to custome rs and are linearly amortised (linear  amortisation  is  used  due  to  immaterial  difference  to  effecti ve  interest  rate method in  the  case  of deposit  products) until the allotment or the expiry of th e term  deposit in the profit or loss line item “Interest expense  and similar charges”. Revenue from tr ansaction-based fees is given mainly by  interchange fees relate d to card transactions, foreign  currency transactions and other payment transactions. The revenue is recognised at a point in time when the  related transaction is performed. Fee income on impaired finan cial assets is recognised  on  receipt  of  cash  or  performance  of  the  service  obligation, whichever is later. The  Group  has  decided  to  apply  practical  e xpedient  IFRS  15.121  and  is  no t  disc losing  information  on  the  aggregated  amount  of  the  remaining  tr ansaction  price  for  servicing  and  commission  revenues  as  the  enforceable  duration  of  the  respective  contract  is  less  than one  year  and the  right  to  consideration for  ser v ic ing  and  commission  contracts  corresponds  directly with the value prov ided to customer. 5.6 DIVIDENDS Dividend  income  is  recognised  when  the  right  to  receive the payment is estab lished. Dividend incom e is  reported in the profit or loss in the line item “Dividen d  income”. 5.7 FINANCIAL ASSETS AND FINANCIAL LIABILITIES 5.7.1 Recognition The Group initially recognises financial assets measured  at amortised cost on the date on which they originate.  All  other  financ ial  instruments are recognised on the  trade  date  which  is  the  date  the  Group  becomes  a  party to the contractual prov isions of the instrument. All financial instruments are initially recogni sed at their  fair  value  plus ,  for an  item  not  at  fair  value  through  profit  or  loss,  transaction  costs  that  are  directly  attributable to its acquisition or issue. 5.7.2 Classification of Financial Assets 5.7.2.1 Debt Instruments Debt  instrume nts  include  loans  and  rec eivables  (disclosed especially in the lines “Loans and rec eivables  to banks”, “Loans and receivables to customers”) and  debt  securities  (disclosed  in  the  line  “Investment  securities”). They are classified into o ne of the followin g  measurement categorie s: •  Amortised cost; •  Fair  value  through  other  comprehensive  inco me  (FVTOCI); or •  Fair value through profit or loss (FVT PL). Classification  is  base d  o n  the  as sessment  of  the  business model under which the asset is held and on the  asses sment of the contractual cash flow characteristics  of the instrum e nt. The Group has defined its business model s as follows: •  Held  to  collect  (HTC)  –  the  busines s  model  for  financial assets acquired with the intention of being  held until maturity and to collect contractual cash flows.  Sales  which  ar e  insignificant  or  infrequent,  related to the management of increased credi t risk  of  the  asset,  or  close  to  maturity  of  the  financial  assets are considered to be consistent with the HTC business model. •  Held to collect and sell (HTCS) – the business model  for  financial assets acquired  with  the  intention  to  be h e ld, to colle ct contractual cash flows and to be  sold. More fr equent sales within this portfolio are  157 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 expected, mainly fo r the purpose of managing the  Group’s liquidity needs. •  Other busines s models for financial assets neither  classi fied as HTC nor HTCS. Currently,  the  Group  holds  all  debt  financ ial  assets  within the HTC business model except an insignificant  portion  of  securities  measured  at  fair  value  through  profit or loss (FVTPL). Contractual  cash  flow  characteristics  are  assessed  by  analysing the contra ctual features of the financial asset  to  determine  whether  they  are  c onnected  with  cash  flows  consistent with  a  basic  lending arrangement,  i.e.  comprising  solely  payments  of  principal  and  interest  from  the  principal  amo unt  outstanding  (SPPI  test).  Principal is the fair value of a financial asset at the initial  recognition and it changes due to repayments over time.  Interest represents a consideration for the time value of  money, p rofit margin, credi t risk an d other basi c lending  risks. If a finan cial asset does not pass th e SPPI test it is  measured at fair value thr ough profit or loss (FVTPL). Debt instruments measured at amortised cost Debt  instruments  are  measured  at  amortised  cost  if  they  are  held  within  a  business  model  whose  objective  is  held  to  coll ect  (HTC)  contractual  cash  flows  where  those  cash  flows  represent  solely  payments  of  principal  and  interest.  After  the  initial  measurement,  debt  ins truments  in  this  cate go ry  are  carri ed at  amortised cost using the effec tive interest  rate method. The effective interest rate is the rate that  discounts estimated future cash payments or rec eipts  through the expected life of the financial asset to the  carrying  amount.  Amortised  cost  is  calculated  t aking  into account any discount or p remium on acquisition,  transaction costs and fees that are an integral part of  the effective interest rate. Interest income from debt instruments measured at amortised cost is recorded in  profit or loss in the line “Interest and similar income”. Impairments  on  d e bt  instruments  measured  at  amortised  cost  are  calculated  using  the  expected  credit  loss approach. Loans and receivables and debt  securities measured  at  amortised  cost  are  presented  net of the allowance for credit losses in the st atem e nt  of fi nan cial position. Debt instruments measured at FVTOCI Debt  instruments  are  measured  at  FVTOCI  if  they  are  held within  a  business  model  held  to collect  and  sell  (HTCS),  w here  the  assets’  cash  flows  represent  payments  that  are  solely  payments  of  principal  and  interest.  Subsequent  to  initial recognition, unrealised  gains  and  losses  on  debt  instruments  measured  at  FVTOCI  (excl.  the  related  expected  credit  losses  which are dir ectly recognised in the profit or loss) ar e  recorded in other comprehensive income (OCI). Upon  derecognition, realised gains and losses are reclassified  from OCI to profit or loss. Currently, the Group did not  classify any debt ins trument as FVTOCI. Debt instruments measured at FVTPL Debt  instruments  are  measured  at  FVTPL  if  they  are  held within other business models or do no t meet the  SPPI  test.  Subsequent  to  initial  recognition,  all  gains  and  losses  on  debt  instruments  measured  at  FVTOCI  are recognised in the line “Net income from financial  operations”. 5.7.2.2 Equity instruments Equity instruments are disclo sed in the line “Investment  securities”.  They  are  measured  at  FVTPL,  unless  an  election is made  to  designate them at  FVTOCI at  the  initial recognition or at the date of transition to IFRS 9. All  equity  instrum e nts  are  measured  at  fair  value.  In  case  that  there  are  no t  eno ugh relevant or  actual  inputs for fair value determination, the Group uses the  instrument‘s cost as the best availabl e estimate of the  instrument‘ s fair value. For equity instruments measured at FVTPL, c hanges in  fair value are reco gni sed in the profit or loss in the line  “Net income from financial operations”. For  equi ty  instruments  for  which  the  Group  decided  for the irrevocable option provided by IFRS 9 to classify  it as at the date of transition as FVTOCI, all gains and  losses  resulting  from  FVTOCI  equity  instruments  including  when  derecognis ed or  sold are  recorded  in  OCI and are not subsequently reclassified to profit o r  loss.  Nevertheless,  dividends  received  from  FVTOCI  equity instruments are disclosed in the profit or loss in  the line “Dividend income”. 5.7.2.3 Derivatives Derivatives  are  measured  at  FVTPL,  changes  in  fair  value  ar e  recognised  in  the  profit  or  loss  in  the  line  “Net  income  from  financial  operations”.  For  more  details s ee note 5.7.9. 5.7.3 Classification of Financial Liabilities The  Group  classifies  its  non-derivative  financial  liabilities,  other  than  financial  guarantees  and  loan  commitments,  at  amortised  cost.  Non-der ivative  finan cial  liabilities  are  contractual  arrangements  resulting  in  the  Group  having  an  obligation  to  either  deliver cash or another financial asset to the holder. Classification  of  derivative  financial  liabili ties  is  presented in note 5.7.9. 158 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 5.7.4 Reclassification Generally, the Group does not reclassify any financial  asset or liabilities after initial recognition. 5.7.5 Derecognition The  Group  derec ognises  a  financial  asset  when  the  contractual  rights  to  receive  cash  flows  from  the  finan cial  assets  expi re  or  the  rights  to  receive  th e  contractual  cash  flows  and  substantially  all  the  risks  and  rewards  of  ownership  have  been  transferred,  or  when subst antially modified. On derecogni tion, the dif fe rence between the carrying  amount of the asset and the sum of the consideration  received and any cumulative gain or loss recognised in other comprehensive income is recognised in profit or  loss.  Any  cumulative gain  or  loss  recognised in  other  comprehensive income  re lating  to  equity  investment  securities  designated  at  FVTOCI  is  not  r ecognised  in  profit  or  loss  on  the  derecognition  but  re mains  recognised in other comprehensive income. The  Group  derecogni ses financial liabilities  when  the  obligation under the liability as specified in the contract  is discharged, cancelled or expired. 5.7.6 Modifications In  terms  of  modification  of  conditions  of  a  financial  asset  (e.g.  change  in  interest  rate  not  at  refix  date  or  ren egotiation of the  contractual terms) the Group  evaluates  whether  the  cash  flows  of  the  modi fied  finan cial  asset  are  substantially  different.  If  th ey  are  substantially different (net present value of the modified  finan cial asset differs by more than 5% from net present  value of the original financial asset) the n  the ori gi nal  finan cial asset is  derecognised and  the  new  financial  asset  is  recognised .  Th e  fees  that  are  considered  in  determining  the fair  value of the  new  asset  and  fees  that  represent  reimbursement  of  eligible  transaction  costs  are  included  in  the  initial  measurement  of  the  asset;  and  other  fees  are  included  in  pro fit  or  loss  as  part  of  the  gain  or  loss  on  derecognition.  Whe n  modification results in derecognition, a  new financial  asset is recognised and allocated to a stage as per risk  management assessment. If  the  cash  flows  of  a  modified  financial  asset  are  not  subst antially  different  from  cash  flows  from  the  original  financial  asset,  then  the  original  financial  asset remains to be recognised but the gross carrying  amount i s recalculated using the modified cash flows  using the original effective interest rate of the asset.  The  resulting  difference  between  the  original  gross  carrying  amount  and  the  recalculated  gross  carry i ng  amount  is  recognised  as  modification  gain  or  loss  in  profit or loss. 5.7.7 Offsetting Financial  assets  and  financial  liabilities  are  offs et  and the net amount is presented in th e statement of  finan cial position when, and only when, the Group has  a legal right to set off the amounts and it intends either  to settle them on a net basis or to realise the asset and  settle the liability simultaneously. Income and expens es are presented on a net basis only  when permi tted under IFR S A ccounting Standards. 5.7.8 Amortised Cost Measurement The  amortised  cost  of  a  financ ial  asset  or  financial  liability  is  the  amount  at  which  the  asset  or  liability  is  measured  at  initial  recognition,  minus  principal  repayments , plus or minus the cumulative amortisation  using the effective interest method of any difference  between  the  initial  amount  recognised  and  the  maturity  amount,  minus  any  allowance  for  expected  credit l osses. 5.7.9 Derivatives and Hedge Accounting Derivatives  are  initially  recognised,  an d  are  subsequently r e measured, at fair value. Fair values of  deriv atives are obtained by using valuation techniques.  The Gr oup designates at inception certain deri vatives  as hedgin g instruments according to IAS 39 (the Group  continues to apply the hedge accounting requirements  of IAS 39 as allowed by IFRS 9) and other derivatives ar e  held for trading despite being held for r isk management  purposes rather than speculative purposes. (a) Derivatives classified as held for trading A derivative  that is not designated and effective as a  hedging  i n strument  measured  at  fair  value  through  profit  or  loss  and  reported  in  the  lin e  “Derivative  finan cial  instruments  with  positive/negative  fair  values”  (derivatives  with  p ositive  fair  values  within  assets,  derivatives  with  negative  fair  values  within  liabilities).  These  derivatives  include  currency  and  interest rate derivatives (swaps and forwards) and  are  carri ed as assets when their fair value is positive and  as liabilities when th eir fair value is negative. Changes  in derivatives’ fair values and all interest revenues and  expens es  are  reported  in  the  profit or  loss line  “Net  income f rom financial operations”. (b) Derivatives designated as hedging instruments The  Group  continues  to  apply  the  hedge  accounting  requirements  of  IAS  39  as  allowed  by  IFRS  9.  Hedge  accounting is applied if, and only if, all of the following  conditions are met: •  The  hedge  is  in-line  with  the  approved  Group  159 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Hedging Strategy; •  The hedging relationship is formally documented at  the inception; •  The  hedge  effectiveness  can  be  objectively  and  reliably measured; •  The  he dge  is  expected  to  be  highly  effective  at  inception and throughout its life. Fair value hedges on interest rate risk and foreign exchange risk The Group designates at initial recognition interest rate  swap or cross-currency interest rate swap derivatives  as hedgi ng instruments.  Either to hedge i ts exposure  to the change in the fair value of a defined part of the port folio  of  loans  to  customers,  loan  commitments,  purchased or issued bonds, loans received from banks  or customer de posits related to interes t rate risk that  could  affec t  p rofit  or  loss  or  the  Group  uses  cross- currency  interest  rate  swaps  to  hedge  purchased  bonds  or  loans  denominated  in  foreign  currencies.  On  the  designation  of  the hedge, the Group  formally  documents  the  relationship  be tween  the  hedging  instrument  and  hedged  item,  including  the  risk  management  objective  and  strategy  in  undertaking  the hedge, together with the method that will be used  to  assess  the  effectiveness  of  the  hedge  relationship  at the inception and  on an ongoing  basis. The Group  applies  for  hedge  relationships  a  fair  v alue  hedge  of  the  defined  hedged  i tem  (micro  hedge)  as  well  as  a  port folio fair value hedge (macro hedge). The hedge is considered to be effective when a change  in the fair valu e of the hedged item compared to the  change in  the  fair value  of the  hedging  instrument is  within a range of 80-125%. Change in clean fair value excluding accrued interest of  a derivative, which is designated as a fair value hedge,  is booked daily to the profit or loss and presented in  the  line  “Net  income  from  financial  ope rations”  to  match the change in fair value of the hedged portfolio.  Accrued interest from hedging de rivatives is recognise d  in  the  profit  or  loss  in  the  line  “Interest  and  similar  income”,  or  in  the  case  of  hedged  deposit  products  in  the  line  “Interest  expense  and  similar charges”,  to  match the interest income or expense from the hedged  port folio or hedged item. In the case of hedging foreign currency ri sk chan ge in  fair value attributable to r isk being hedged is booked to  the profit or loss and presented in the line “Net income  from financial operations”. In the statement of financial position, derivatives with positive  fair values  (total  fair value including accrued  interest)  are  presented  in  the  lin e  item  “Hedging  deriv atives with positive fair values ”, derivatives with  negative fair valu es (total fair value including accrued  interest) are presented in the line “Hedging derivatives  with negati ve fair values”. If the hedgi ng instrument expires, is sold, terminated  or exercis ed, or the hedge no longer meets the criteria  for  hedge  accounting,  th e  hedge  relationship  is  discontinued . In this case, the fair value adjustment to  the carryin g amount of the hedged item is am ortised  to profit or loss on a straight-line basis under the line  “Interest and similar income”. 5.7.10 Impairment of Financial Assets The  Group  measures  allowance  for  credit  losses,  using  an  expecte d  credit  loss  approa ch  as  required  under IFRS 9, for the following categories of financial  instruments: •  Amortis ed cost financial assets; •  Debt securities classified as measured at F VTOCI; •  Undrawn loan commitments. Financial assets migrate through the three stages based  on the change in credit risk since initial recognition. Expected credit loss impairment model (ECL) The  Group’s  allowance  for  credit  loss  calculations  are  outp uts  of  models  with  a  number  of  underlying  assumptions  regarding  the  choice  of  variable  inputs  and their interde pendencies. The expected credit loss  impairment  model  reflect s  the  present  value  of  all  cash shortfalls related to def ault events either (i) over  the following twelve months or (ii) over the expected  life  of  a  financial  ins trument  depending  on  cr edit  deterioration from inception. The allowance  for credit  losses  reflects  an  unbiased,  probability-weighted  outcome whi ch considers multiple scenarios based on  reasonable and supportable forecasts. The impairment model measures credit loss allowances  using  a  three- stage approach based  on  the extent of  credit d eterioration since origination: •  Stage 1 – If there has not been a significant i ncrease  in  credit  ri sk  (SICR)  since  initial  recognition  of  a  financial instr ument, a loss allowance at an amount  equal to 12-month expected credit losses (exp ected  credit losses that r esult fr om thos e default events  on the financial instrument that are possible within  12  months  after  the  reporting  date)  i s  recorded.  Interest  revenue  is  recognised  using  the  effective  interest rate method applied on the financial asset’s  gross carrying amount. •  Stage 2 – When a financial instrument experiences a  SICR subsequent to origina tion but is not c onsidered  to be in d efault, a loss allowance at an amount equal  to  full  lifetime  expected  credi t  losses  (expected  credit  losses  that  result  from  all  po ssible  def ault  160 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 events  over  the  life  of  the  financial  instrument)  is  recorded.  Interest  revenue  is  recognised  using  the  effective interest  rate  method  applied on  the  financial asset’s gross car rying amount. •  Stage 3 – F i nan cial instrument s that are considered  to be in default are included in this stage. Similarly  to Stage 2, a loss allowance at an amount equal to  the full lifetime expected credit losses is recorded.  Interest  revenue  is  recognised  using  the  effective  interest rate method applied on the financial asset’s  net carrying amount. Measurement of expected credit loss The  p robability  of  default  (PD),  exposure  at  def ault  (EAD),  and  loss  given  default  (LGD)  inputs  used  to  estimate expected cr edit losses are mod e lled based  on  macroeconomic  variables  that  are  most  closely  related  to  credit  losses  in  the  relevant  portfolio.  Details  of  these statistical parameters/inputs are as  follows: •  PD – The probability of default is an estimate of the  likelihood of default over a given time horizon. •  EAD –  The  exposure  at  default  is  an  estimate  of  the  exposure at  a futur e  default date, taking  into  account expected changes in the exposure after the  reporting  date,  including  repayments  of  principal  and  interest,  wh ether  scheduled  by  contract  or  otherwise,  expected  drawdowns  on  committed  facilities,  and  accrued  interest  from  missed  payments. •  LGD – The loss  given default is an estimate of the  loss ari si ng in the case where a default occurs at a  given  time.  It is based on  the  difference  between  the contractual cash fl ow s due and those that the  lender would expect to receive, including from the  realisation of any co llateral. The  measurement  of  expected  credit  l osses  for each  stage  and  the  assessment  of  significant  increases  in  credit  r isk  considers  information  about  past  events  and  current  c onditions  as  well  as  reasonable  and  sup portable  forecasts  of  future  events  and  economic conditions.  The  estimation  and application  of  for ward-lo oking  information  require  significant  judgement. Presentation of allowance for credit losses (ACL) in the statement of financial position •  Financial  assets  measured  at  amortised  cost:  ACL  is deducted from the gross carryi ng amount of the  financial assets; •  Debt  instruments  measured  FVTOCI:  no  ACL  is  recognised  in  the  statem e nt  of  financial  po sition  because the carrying value of these assets is their  fair  value.  However,  the  ACL  is  presented  in  the  accumulated OCI; •  Off-balance sheet credit risks (e.g. credit c ards with  undrawn  limit):  In  the  case  that  the  determined  expected  credit  loss  exceed s  the  gross  carrying  value of  the financial asset the excess is recognised  as a provision . Purchased or originated credit-impaired financial assets (POCI) Financial  assets classified  as  POCI  are  always  subject  to  lifetime  allowance  for  credit  losse s.  At  initial  recognition  expected  credit  loss  is  initially  reflecte d  in  the  credit-adjusted  effective  interest  rate.  As  a  result,  no  loss  allowance  is  recognised  at  incepti on.  Subsequently,  only  negative  changes  in  lifetime  expected credit losses are r ecognised as allowance for  credit losses, whilst positi ve changes are reco gni sed as  impairment gains increasing the gross carrying amount  of such financial assets. Management overlay Management  overlay  allows  management  of  the  Group  to  override  results  of  ECL  models  in  the  case  that  these  models  are  not  able  to  timely  respond  to  changes  in  economic  e nvironment.  Applic ation  of  management  overlay  is  subject  of  approval  process,  detail documentation and monitoring. 5.8 REPURCHASE AND REVERSE REPURCHASE AGREEMENTS The Group  enters into contra cts to sell and buy back  finan cial instruments at a specific future date (repo) or  to buy and s e ll back financial instruments at a  specific  future date (reverse repo). In  repo  transactions  the  securities  provided  by  the  Group continue to be rec ognised and reported in the  statement  of  financial  position  as  the  Group  retains  substantially  all  the  risks  and  rewards  of  ownership  together with all coupons and other income payments  received  during  the  period  of  the  repo  transaction.  The co rresponding cash  r eceived is recognis ed in the  statement  of  financial  position  and  a  corresponding  obligation  to  return  it  (includi ng  accrued  interest)  is  recorded as a liability. Securities purchased as a reverse repo transaction are  not recognised in the statement of financial position.  The  consideration p aid (including accrued  interest) is  recorded in the statement of financial position as “Loans and receivables to banks” o r “Loans and receivables to  custom e rs”. The Group is allowed to provide securities  received  in  reverse  repo  transactions  as  collateral  or  sell them,  even  in  the absence  of default by  their  owner. 161 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The difference between the sale and repurchase price  or b etween the purchase and resale price is treated as  interest and recognised in net interest income over the life of the agreement. 5.9 FAIR VALUE MEASUREMENT Fair value is the price the Group would re ceive to sell an  asset or pay to transfer a liability in an orderly transaction  with a market participant at the measurement date in  the principal or, in its absence, the most advantageous  market to which the Group has access at that date. In the absence of active markets for the identical assets  or  liabilities,  such  measurements  involve  developing  assumptions  based  on  market  observable  data  and,  in the absence of such data, internal information that  is  consistent  with  what  market  participants  would  use  in  a  hypothetical  transaction  that  occurs  at  the  measurement date. Observable inputs reflect market data obtained fr om  independent  sources,  while  unobservab le  inputs  reflect the Group’s market assumptions. Preference is  given to observable inputs. These two types of inputs  create the following fair value hierarchy: •  Level 1 – Quoted prices for ide n tical instruments in  active markets. •  Level 2  –  Quoted  prices  for  similar  instruments  in  active  markets;  quoted  prices  for  id e n tical  or  similar instruments in markets that are not active;  and  model-derived  valuations  whose  inp uts  are  observable  or  whose  significant  value  drivers  are  observable. •  Level 3 – Significant inputs to the valuation model  are unobservable. The  Group  maintains  policies  and  procedures  to  value  instruments.  In  addition,  the  Group  has  risk  management  teams  that  revi ew  valuation,  includi ng  independent  price  validation  for  certain  instruments  (e.g. treasury bills). Fair values of financial assets and liabilities that are not  presented in the Group’s balance shee t  at  fair values  are shown in note 45. 5.10 PROVISIONS A provision is recognised by the Group when: •  It  has a present ob ligation (legal or constructive) as  a result of a past event; and •  It  is  probable  that  an  o utflow  of  resources  embod ying  economic  benefits  will  be  required  to  settle the obligation; and •  The Group can reliably estimate the amount of the  obligation. Provisions  are  reported  in  the statement  of  financial  position  and  include  provisions  for  expected  credit  losses (loan commitments) and provisions for litigati on  and  other  obligatio n s.  Gains  and  losses  related  to  provisions  are  reported  base d  on  their  substance.  Provisions are disclosed in note 35. 5.11 LEASES At inception of a contract, the Group assesses whether  a  contract  is,  or  contains,  a  lease.  A  contract  is ,  o r  contains,  a  lease  if  the  contract  conveys  the  right  to  control  the use  of an  identified asset  for  a  perio d  of  time in exchange for consideration. To assess whether  a contract conveys  the  right to control the  use of an  identified  asset,  the  Group  uses  the  definition  of  a  lease in IFRS 16. (i) Group as a Lessee At  ini tiati on  or  modification  date  of  a  contract  that  contains a lease component, the Group allocates th e  consideration in the contr act to each lease component  on  the  basi s  of  its  relative  stand-alone  prices.  The  Group  ac counts  for  each  lease  c omponent  within  the  contract  separately  i.e.  lease  and  non-lease  components  of  the  contract  are  separated,  unless  practical expedient is applied. The  Group  recognises  a  right-of-use  asset  and  a  lease  liability  at  the  l ease  commencement  date.  The  right-of-use  asse t  is  initially  measured  at  cost  w hich  comprises  the  initial  amount  of  the  lease  liability  adjusted  for  any  lease  payments  made  at  or  before  the  commencement  date,  plus  any  ini tial  direct  costs incurred and  an estimate  of  costs  to dismantle  and  remove  the  underlying  asset  o r  to  restore  the  underlying asset or the site on w hich it is located, less  any lease incentives received. The  right-of-use  asset  is  subsequently  depreciated  using  the  straight-line  method  from  the  commencement date to the end of the lease term or  over the useful life of the underlying asset (in case the  lease  transfers  ownership  of the  underlying  asset  to  the  Group  by  the  end  of  the  lease  term  or  the  cost  of  the  right-of-use asset  reflects  that  the  Group  will  exercise a purchase option). In addition, the right-of- use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the  lease liability. The lease liability is at initial recognition measured at the present value of fixed and variable lease payments  that depend on an index or a rate, initially measured  162 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 using  the  ind ex  or  rate  as  at  the  commencement  date net of cash lease incentives that are not paid at  the  commencement  date,  dis counted  using  the  rate  implicit in the lease contract, and where not av ailable,  using incremental borrowing rate. The Group determines its incremental borrowing rate  based on market conditions for which it would obtain additional credit financ ing (loan or debt securities). Subsequently,  the  lease  liability  is  measured  at  amortised  cost  using  the  effective  interest  method.  It  is  remeasured  when  ther e  is  a  change  in  future  lease  payments  arising  from  a  change  in an  index  or  rate,  if  there  is  a  change  in  the  Group’s  estimate  of  the amount  expecte d  to be  p ay able under a  re sidual  value guarantee, if th e Group changes its assessment  of  whether  it  will  exercise  a  purchase,  extension  or  termination option or if there is a revised in-substance  fixed lease payment. In cas e the lease liability is subject to the above mentioned  remeasurement, a corresponding adjustment is made to  the carrying amount of the r ight-of-use asset, and it is  recorded in profit or loss if the carrying amount of the  right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet  the definition of investment property in “Property and  equipment” and lease  liabilities in  “Other liabilities” in  the stateme nt of financial posi tion. The  Gro up  has  elected  not  to  recognise  right-of-use  assets  and  lease  liabilities  for  leases  of  low-value  assets (up to CZK 100 thousand) and short-term leases  (up to 12 months), including IT equipment. The Group  recognises the  lease  payments associated with  these  leases as an expense on a straight-line basis over the  lease term. The Group has not entered any lon g-term agreement of  purchase of  goods or services exclusively produced for  the Group such as Power Purchase Agreement (PPA). (ii) Group as a Lessor At  inception  or  on  modification  of  a  contract  that  contains  a lease  component, the  Gr oup allocates  the  consideration in the contr act to each lease component  on the basis of their relative stand-alone prices. When the Group acts as a lessor, it determines at lease  inception whether each lease is a finance lease or an  operating lease. To  classify  each  lease,  the  Group  makes  an  overall  asses sment of whether the l ease transfers substantially  all of the risks and rewards incidental to ownership of  the underlying asset. If this is the case, then the lease  is a finance lease; if not, then it is an operating l ease.  As part of this assessm e nt, the Group considers certain  indicators such as  wh ether the  lease  i s  for the major  part of the economic life of the asset. The Group  accounts for sub-lease contracts separately  from the master lease. It assesses the l ease classific ation  of a sub-lease with reference to the right-of-use asset  arising from the master lease, not with reference to the  underlying asset. If a master lease is a short-term lease  to  which the  Group applies  the exemption descr i bed  above, then it classifies the sub-lease as an operating lease. Since  March  2024,  the  Group  sub-leased  part  of  its  HQ  building  in  Prague.  T he  sub-lease  is  classified  as  an  operating  lease.  Rentals  re ceivable  are  spread  on  a  straight-line  basis  over  the  lease  per iods  and  are  recognised in “Other operating income”. If  an  arrangement  co ntains  lease  and  non-lease  components, then the Group applies IFRS 15 to allocate the consideration in the contract. The Group applies  the derecognition and impairment  requirements  in  accordance  with  IFRS  9  to  the  net  investment in the lease. See n ote 5.7.10. The  amount due from the lessee under a finance lease  is  recognised  in  the  Gr oup’s  statement  of  financial  position  as  a  receivable  at  an  amount  equal  to  the  lessor’s net investment in the lease and presented in  “Loans and receiv ables to customers”. Th e underlying  asset is not recognised on the balan ce sheet. The finance incom e from finance leases is recognised  in  “Interest  and  similar  income”  based  on  a  p attern  reflecting a constant periodic rate of return on the net  investment, i.e. using the effective interest method. Payments  re ceived  by  th e  Group  as  a  lessor  und e r  operating leases are recognised in profit or  loss on  a  strai ght-line basis over the term of the lease in “Other  operating  income”.  Any  lease  incentives  paid  ar e  recognised as an i ntegral part of the total lease incom e  over the term of the lease. The  assets  provide d  under  operatin g  leases  are  recognised in the statement of financial position of the  Group i n “Property and Equipment” and corresponding  deprec iation is rec orded in the statement of profit or  loss line “Amortisation and depreciation”. 5.12 PROPERTY AND EQUIPMENT Items of property and equipment are measured at cost  less accumulated deprec iation less impairment losses  over their estimated useful lives. 163 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Cost  includes  the  purchase  price  of  the  asset,  any  costs directly attributable to bringing the asset to the  location and  condition necessary  fo r  it to be  capable  of  operating  in  the  manner  intended  by  the  Group,  and the initial estimate of the costs of dismantling and removing the item. Property and equipment is depreciated on a str aight-line  basis over their estimated useful lives as follows: Technical Improvements related to real estate 5-15 years 1) Furniture 4-10 years Equipment 5-10 years Cars 8 years Computers and servers 5-7 years ATMs 10 years 1)   Based on  the estimated duration of  use in accordance with the IFRS 16  lease agreement. Leasehold  improvements  are  depreciated  on  a  strai ght-line basi s over the shorter of the lease terms  or their remaining useful lives. Assets  leased  by  the  Group  to  third  parties  under  operating  lease  contracts  are  depreciated  over  the  estimated  useful  lives  in  the  same  way  as  other  property and equipment. Assets’ residual value s and use ful lives are monitored  and adjusted if appropriate at each financial statement  date. Property and equipment are subject to quarterly impairment  reviews  (see  note  5.14).  If  the  carrying  amount of the asse t exceeds its estimated recoverable  amount, the asset is adjusted accordin gly. Its estimated  recoverable amount is the higher of fair value including costs to sell and its v alue in use. The Group presents r ight-of-use ass ets resulting fro m  lease  agreements that  do  not  meet  the  definition  of  investment  property  in  the  statement  of  financial  position in line “Property and equipment”. Gains and losses on disposals are determined by deducting  the carrying v alue from the consideration received. Any  gain/loss on sale is recognised in the profit or loss. 5.13 INTANGIBLE ASSETS Software Soft ware acquire d  by  the  Group  is  measured  at  cost  less  accumulated  amortisation  and  any  accumulated  impairment losses. Expenditure  on  internally  develope d  software  is  recognised  as  an  ass et  when  the  Group  is  able  to  demonstrate its intention and ability to complete the  development and use the sof tware to generate f uture  economic  benefit s  and  the  cos ts  to  complete  the  development can be reliably measured. Internally developed software is state d  at capit ali sed  cost less accumulated amortisation and impairme nt. Purchased  software  an d  internally  developed  soft ware  is amortised over its  expected  useful life that is usually  considered to be 5 years when recognised initially. During  its useful life, development is performed on the soft ware.  This development prolongs the useful life of the software. The following table shows the weighted average of the  remaining usef ul life of software asse ts: Core systems 6 years Data warehouses 6 years Infrastructure 5 years Distribution channels 5 years Enterprise software 3 years Subsequent  expenditure  on  software  assets  i s  capitalised only wh e n it increases the future economic  benefits  embodie d  in  the  specific  asset  to  whi ch  it  relates. All other expenditure is expe nsed as incurred. Core deposit intangible (CDI) Core deposit intangible resulting from the Acquisition  represents the benefit o f having a  low-cost and stable  funding source to the Group. In times when alternative  sources of funds have higher rates, core deposits have  greater worth to an ac quirer. CDI can be also interp reted  as  an  intangible  asset  recorded  upon  acquisitions  to  capture  the  value  of  the  customer  relationships  the  acquired  deposits  represent.  The  Group  amortise s  CDI  linearly  over  60  months.  Assessment  whether  circumstances triggering potential impairment is done  annually.  If  such  circumstances  are  identified  CDI  is  tested for impairment in line with note 5.14. 5.14 IMPAIRMENT OF NON-FINANCIAL ASSETS At the end of each reporting date, the Group reviews  the  carrying  amounts  of  its  non-financial  assets  to  determine  whether  there  is  any  indication  of  impairment.  If  any  such  indication  exists  then  the  assets  recoverable  amount  is  estimated.  An  asset’s  recoverable  amount  is  the  higher  of  the  asset’s  fair  value  less  costs  of  disposal  and  its  value  in  use.  An  impairment loss is recognised if the carrying amount of  an asset exceeds its recoverable amount. Impairment losses are recognised in the profit or loss in  the  “Oth e r  operating  expenses”  (see  note  15).  An  164 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 impairment loss may be reversed to the extent it does  not exceed the carrying amount that would have been  determined if no impairment loss had been recognised. The  Group  regularly  monitors  potential  impacts  resulting  from  c limate  changes  that  could  result  into  impairment of non-financial assets. Currently there are  no such impairm ent indicators.  5.15 EMPLOYEE BENEFITS Employee  benefits  includ e  short-term  bonus  payments,  flexible  benefits (Cafeteria), remuner ation  for  loyalty,  retention  bonuses  and  other  unclaimed  components of remunerati on. In 2017, a remuneration  programme  Executive  Variable  Incentive  Plan  (EVIP)  was intr oduced fo r the Management Board members  and other Material Risk  Taker s ,  under which bonuses  are partially linked to the share price and the dividend  (shareholder’s  return).  This  programme is  an integral  part of the Remuneration Policy periodically reviewed  and  approved  by  shareholders  at  least  once  every  4  years. The Remuneration Policy is available on investor  the relations web page.  Detail ed terms and co nditions for the remuneration of  other employees are governed by the Group Directive  Remuneration Policy as approved by the Management Board.  Executive Variable Incentive Plan (EVIP) for the Management Board members and other Material Risk Takers The  amount  of  the  variabl e  compensation  that  a  participant  receives  under  the  EVIP  in centive  programme is based on the participant’s performance  and the Bank’s performance; including the achievement of  goals  and  objectives  set  by  the  Supervisory  Board  and  the  Chief  Executive  Officer  (whereas  the  Chief  Executive Officer is not invol ve d in the decision-making  regarding the setting of his own goals and objectives). A  portion of the remuneration is paid in cash (part in the  year after the assessment year and part is deferred up  to five annual instalments in the following years), and  the remainder is linked to the total shareholder r eturn  (TSR) and spread over  up to five annual instalme nts.  This  part  of  the  deferred  b onus  represents  a  share- based  payment  and  is  disclos ed  in  line  with  IFRS  2  Share-based  payments,  specifically  as  cash-settled  share-based  paym e nts.  For  more  detail s  about  this  programme please refer to the Remuneration Report.  The payou t of an insigni ficant bonus (up to CZK 500,000  for calendar  year) is excluded from prov isions on  the  deferred payout and TSR adjustment. Bonus payments are accrued over time when earned in the amount of the estimated future pay-out. EVIP Executive Long-Term Premium Awards As part of the new Remuneration Policy, the Supervisory  Board proposed the EVIP Executive Long-Term Premium  Award to align Management Board  r e mune ration with  the  long- term  interests  of  shareholders.  This  award  replaces  the  prev ious  LTIP  programme,  which  was  introduced i n 2018 but had never been vested. The  EVIP  Executive  Long-Ter m  Premium  Award  is  granted on top of the EVIP bonus and is based on the  fulfilment  of  medium-term  financial  performance  targets,  which  are  defined  and  published  at  the  beginning  of  the  three-year  evaluation  cycle.  The  award i s de termined by the Supervisory Board upon the  proposal of the Remunerati on Committee and follows  the  princi ples  of  variable  remuneration,  including  risk-adjustment measures,  performance thr esholds, a  payout cap, and a five-year deferr al period. The  award  is  b ased  on  the  evaluation  of  t wo  key  performance indicators (KPIs): the average Return on  Tangible Equity, and the cumulative consolidated Profit  before  Tax,  both  measured  over  a  three-year  period.  The final award is further adjusted by the average TSR  over the  performance cycle, ensuring  alignment with  shareholder value creation. The  maximum award  amount is  capped at 50% of the  Personal  Variable  Target  for  the  EVIP  Bonus.  The  first  EVIP Executive Long-Term Premium Award was granted  in 2024 based on financial performance over the period  2021–2023, with performance targets set in line with the  medium- term guidance published on 5 February 2021. Sales, collections and customer service incentives Sales  incenti ves  represent  a  performance-based  remuneration  to  the  employees  of  retail  and  commerc ial  banking  at  branches.  The  volume  of  the  sales  incentives  depends  on  the  fulfilment  of  quantitative  and  qualitative  performance  targets,  which  are  evaluated  and  p aid  quarterly.  Employees  providing sales and service over the phone or working in  selected  support  departments  are  evaluated  and  paid  on  a  monthly  basis.  Incentives  in  the  Structur e  Finance unit are paid o n an annual basi s. Collection  incentives  represent  a  performance  remuneration  for  employees  participating  in  the  collection  of  debts.  The  frequency  of  evaluation  of  performance  and  payments  of  incentives  is  on  a  monthly  (retail  receivables)  or  on  a  quarterly  basis  (commer cial receivables). The  Gr oup  r ecognises  a  liability  as  at  the  reporting  date  repr e senting  the  sum  of  the  sales  incentives  in  the fourth quarter and the amounts d eferred from the  previous r e porting periods. 165 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Flexible benefits (Cafeteria) Each  employee  of  the  Group  selects  from  flexible  benefit offers upon his/her preference (includi ng meal  allowance)  or  contribution  to  pension/life  insurance,  eventually  its  combination.  Costs  of  flexible  benefits  are  recognise d  in  the  profit  or  los s  line  “Personnel  expenses”   on a  straight-line  basis  over  the  reporting  period. Retention programs Employees  involved  in  important  proje cts  or  having  a  significant  influenc e  on  the  operation  of  critically  important  processes  can  receive  a  motivation  award  under  predetermined  conditions.  Th e  liability  is  accrued on a monthly basis into expenses on the part  of remuneration to which the claim has already arisen  taking into account the probability of payment. 5.16 CASH AND CASH BALANCES AT THE CENTRAL BANK The line “Cash and cash balances at the central bank”  includes  current  accounts  and  time  deposits  with  the  Czech  National  Bank  (CNB),  cash  in  ATMs  and  in  branches.  The  Group’s  mandatory  minimum  reserve  held by the CNB is also included within this line. In previous periods, the caption of the li ne was “Cash  and  balances  with  the  central  bank”.  Starting  from  2024, the caption of the line has been changed to “Cash and  cash  balances  at  the  central  bank”  w ithout  any  change to the items reported. 5.17 INCOME TAX AND DEFERRED TAX Income  tax  expense  comprises  current  and  deferred  tax. It is recognised in the profit or loss except to the  extent  that  it  relates  to  items  recognised  directly  in  equity or in other comprehensive income. Current Tax Current tax represents the tax expected to be payable  on  the  taxable  profit  for  the  year,  calculated  using  tax  rates  ena cted  or  substantively  enacted  by  the  balance sheet date, and any adjustment to tax payable  in  respect  of  previous  years.  Current  tax  assets  and  liabilities ar e offset w hen the Group intends to settle  on a net basis and the legal right to offset exists. Deferred Tax Deferred  tax  is  recognised  on  temporary  differences  between  the carry i ng amounts of assets and liabilities  in the statement of financial position and the amounts  attributed to such assets and liabilities for tax purpo ses.  Deferred t ax liabilities are generally recognised for all  taxable temporary differences and deferred tax assets  are  recognised  to  the  extent  that  it  is  probable  that  future  taxable  profits  will  be  available  against  which  deductible  temporary  differences  can  be  utilised.  Deferred  tax  assets  are  reviewed  at  each  reporting  date and are reduced to the extent that it is n o longer  probable that the r e l ate d tax benefit will be realised. Deferred  tax  is  measured  at  the  tax  rates  that  are  expected to be applied to temporary differences when  they reverse, using tax rates enacted or substantively  enacted at the reporting date. Significant temporary and timing differences arise mainly  from different accounting and tax v alue adjustments  to  receiv ables,  provisions,  different  accounting  and  tax  economic  useful  life  of  tangible  and  intangible  assets  and from the revaluation of financ ial assets. 5.18 SEGMENT REPORTING The Group’s operating businesses are organised based on the nature of markets and c ustomers. Operating segments are  reported  in accor dance with  the  internal  reports  prepared  on  a  regular  basis  and  presented to the memb e rs of the Management Board. The Group has identified the following segments: •  Commercial  clients  –  includes  individually  and  portfolio  managed  commercial  loans.  Clients  are  mainly small and medium entrepreneurs. •  Retail  clients  –  this  segment  covers  most  of  the  Group’s  consumer  products  (consumer  loans,  mortgages,  bui lding  savings,  auto  financi ng,  etc.).  Products  in  the  Group’s  consumer  portfolio  have  similar characteristics. They consist mainly of term  loans  offered  through  a  network  of  individual  branches,  call  ce ntres  and  online  channels.  The  products are primarily t argeted at consumers and  households. •  Treasury/Other  –  includes  mainly  investment  banking  and  equity  investme nts  and  other  areas  that are not includ ed in the above segments . The Mana gement Board of the Bank (the chief operating  decision  maker)  does  not  use  the  above  d e scribed  segmental  view  on  all  items  of  th e  Consolidated  Statement of Profit or Lo ss. F or this reason, Operating  expens es, Taxes and  consequently Profit for  the  year  before  tax  and  Profit  for  the  year  after  tax  are  not  reported in segments but only on the Total level. Information about the reported segments is described  in note 43. 166 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 5.19 FINANCIAL GUARANTEES AND LOAN COMMITMENTS Financial  guarantees  are  contract s  that  require  the  Group  to  make  specified payments  to  reimburse  the  holder  for  a  loss  that  it  incurs  because  a  specified  debtor  fails  to  make  payment  when  it  is  due  in  accor dance with the terms of a debt instrument. Loan  commitments are firm commitments to provide credit under pre-specified terms and conditions. Liabilitie s  under  financial  guarantee  contracts  are  recorded initially at their fair value, which is generally  the fee received or present value of the fee receivable.  Financial  guarantee  liabilities  are  subsequently  measured  at  the  higher  of  the  initial  fair  value,  less  cumulative amortisation and the amount equalling the  expected  credit  loss  deter mined  in  acco rdance  wi th  IFRS 9 (see note 5.7.10). The provided guarantees are shown in note 40. 5.20 SUBORDINATED LIABILITIES Subordinated  liabilities  (bonds  and  de posits)  are  subordinated to all other liabilities of the Bank. As at  31 December 2024, it forms a fully or partially part of  the Tier 2 capital of the Bank as defined by the CNB for  the purposes of determination of its capital adequacy. These  instruments  are  initially  measured  at  fair  value  minus  incremental direct transaction costs and  subsequently  measured at  their  am ortised cost using  the effective interest m ethod. 5.21 MORTGAGE-BACKED BONDS Mortgage-backed  bonds  are  covered  by  mort gages  provided  to  clients  of  the  Group.  These  instr uments  were purchased as a part of the Acquisition and initially  measured  at  fair  value  and  subsequently  measured  at  their  amortised  cost  using  the  effective  interest  method. Mortgage-backed  bonds  are  presented  in  the  statement  of  financial  position  in  the  line  “Issued  bonds”. Internally Issued Mortgage-Backed Bonds (on own books) The mortgage-backed bonds are covered by mortgage  loans provided to the Group’s clients. The purpose of  the issuan ce of these bonds is only in case of potential  recovery  or  resolution  strategy  of  the  Bank.  In  such  events, internally held mortga ge-backed bonds would  be    used  as  collateral  for  a  lombard  loan  or  repo  operations  predominantly  with  the  Czech  National  Bank in order to support the liquidity position  of the  Bank.  As  at  31  Dec e mber  2024,  the  Group  did  not  realise any of these above-mentioned operations and  the  mortgage-backed  bonds  were  held  internally,  therefore,  these  bonds  are  not  recognised  in  th e  Statement of financial position. 5.22 OTHER ISSUED BONDS Other  is sued  bonds  are  represented  by  the  senior  preferred  bonds  which  are  in  compliance  with  the  minimum  requirement  for  own  funds  and  eligible  liabilities (“MREL”) requirement which was se t for the  Bank by the Czech Natio nal Bank. These  instruments  are  initially  measured  at  fair  value  minus  incremental direct transaction costs and  subsequently  measured at  their  am ortised cost using  the effective interest m ethod. Other issued bonds are presented in the statement of  finan cial position in the line “Issued bonds”. 167 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 6. NET INTEREST INCOME CZK m 2024 2023 Inte rest income from financial assets measured at amortised cost 1) 20,632 19,040   Loans to customers 13,199 12,44 9       out of which: interest income from impaired loans 2) 170 143       out of which: penalty interest 25 24       out of which: EIR amortisation, modificat ion/derecognition and amortisation of acquisition FV  adjustments (576) (530)   Loans to banks 4,133 3,906       out of which arising from repurchase and reverse repurchase agreements 4,068 3,867    Cash and cash balances at the central bank 3) 1 363    In terest income from investment securities at amortised cost 3,200 2,308    Other interest income 4) 99 14 Inte rest from hedging derivatives 1,575 3,006 Interest income and similar income 22,207 22,046 Inte rest expense from financial liabilities measured at amortised cost 1) (13,059) (12,852)   Due to banks (216) (159)   Due to customers (12,144) (12,085)       out of which: amortisation of acquisition FV adjustments 12 18    Subordinated liabilities (387) (282)    Mortgage-backed bonds 5) - (55)   Oth er issued bonds 6) (283) (175)   Oth er interest expense 4) (29) (96) Inte rest from hedging derivatives (180) ( 584) Inte rest expense on lease liabilities (49) (33) Interest expense and similar expense (13,288) (13,469) Net interest income 8,919 8,577 1)   All  interest  income  and  expense  from  financial  instrum ents  at  amortised  cost  are  calculated  using  the  effective  interest  method.  Ther e  are  no  FVTOCI  interest-bearing instruments. 2)   In 2024, the Group revised the methodology of reporting amounts of int erest income from impaire d loans. For the purpose of comparabi lity, the previous  period has been adjusted. 3)   The Bank Board of the CNB decided in Septe mber 2023 that it would discontinue remuneration of the mandatory minimum reserves. The decision became  effectiv e on 5 October 2023; prior to that, the mandatory minimum reserves were remunerated using the 2-week repo rate. 4)   Represents interest income or exp ense respectively from received or provided collateral resulting from Credit Support Annex (CSA). 5)   All externally issued mortg age-backed bonds were repaid in 2023. The remaining mortgage-backed bonds issued within the Group, as well as their interest  expense are eliminated on a consolidated basis. 6)  MREL requirement eligible bonds are included. 168 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Analysis of deferred costs and fees directly attributable to the origination of new loan products that are an integral  part of the effective interest rate and fair value adjustment resulting from the revaluation of acquired financial assets: Year ended 31 Dec 2024 CZK m Balance at beginning of period Amortisation Derecognitions/ Modifications Additions to deferred fees 1) Additions to deferred costs Balance at end of period   Consumer Loans 137 (9) (10) (77) 75 116   Mortgages 1,502 (153 ) (37) (1) 39 1,350    Credit Cards & Overdrafts 10 (9) - - 11 12    Auto Loan s 198 (105) (6) - 1 41 228 Retail loans deferrals 1,847 (276) (53) (78) 266 1,706   Inves tment Loans 441 (83) (2) (13) 50 393   Working Capital (8) 8 - (10) 4 (6)    Auto & Equipment Loans 234 (133) - - 160 261    Unsecured Instalment Lo ans and Overdrafts 102 (37) - (12) 47 100 Commercial loans deferrals 769 (245) (2) (35) 261 748 Total loan deferrals 2,616 (521) (55) (113) 527 2,454 1)  The majority is the loan account opening fee. Year ended 31 Dec 2023 CZK m Balance at beginning of period Amortisation Derecognitions/ Modifications Additions to deferred fees 1) Additions to deferred costs Balance at end of period   Consumer Loans 150 (5) (2) (64) 58 137   Mortgages 1,639 (143) (8) (4) 18 1,502    Credit Cards & Overdrafts 12 (9) - - 7 10    Auto Loan s 192 (102) (5) - 113 198 Retail loans deferrals 1,993 (259) (15) (68) 196 1,847   Inves tment Loans 508 (83) (3) (14) 33 441   Working Capital (3) 9 - (18) 4 (8)    Auto & Equipment Loans 231 (145) - - 148 234    Unsecured Instalment Lo ans and Overdrafts 98 (34) - (8) 46 102 Commercial loans deferrals 834 (253) (3) (40) 231 769 Total loan deferrals 2,827 (512) (18) (108) 427 2,616 1)  The majority is the loan account opening fee. 169 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 7. NET FEE AND COMMISSION INCOME CZK m 2024 2023 Insurance 1) 1,223 1,212 Investment funds 2) 739 331 Penalty fees (incl. early termination  fees) 318 277 Deposit servicing fees 377 387 Lending servicing fees 243 229 Transactional and other fees 825 781 Fee and commission income 3,725 3,217 Fee and commission expense (665) (593) Net fee and commission income 3,060 2,624 1)   The  lin e  “Insurance”  includes  especially  c ommissions  on  payment  protection  insurance,  car  insurance  (Casco  and  third  party  liability  insurance),  travel  insurance,  accide nt  insurance,  life  insurance  and  pension funds. 2)   The  amount  of  received  fees  se rve s  as  the  base  for  the  calculation  of  co ntribution of the Group to the Investor Compensation Fund. 8. DIVIDEND INCOME CZK m 2024 2023 Dividends from investments - 3 Dividend income - 3 9. NET INCOME FROM FINANCIAL OPERATIONS CZK m 2024 2023 Net gain/(loss) from hedging  instruments 751 (4,915) Net gain/(loss) from hedged  instruments (771) 5,009 Net gain/(loss) from financial assets  and liabilities at FVTPL 13 43    out of which: revaluation of  FVTPL securities to fair value 10 6    out of which: expense on  derivative instruments (359) (118)    out of which: income from  derivative instruments 362 155 Net income from sale of investment  securities 1) 59 26 Ex change rate differences 805 726 Share of profit or loss of associates  accounted for using the equity  method 3 - Net income from financial operations 860 889 1)   The sale of investment securities was considered in line with the business  model, in which they ha d been hol d. Further de tail is described in note 24. 10. OTHER OPERATING INCOME CZK m 2024 2023 Income from leases 1) - 1 Rent income 2) 23 1 Other collection income 3) 24 19 Other income 25 33 Total other operating income 72 54 1)   The  line  “Income  from  leases”  includes  income  from  operating  lease  co ntracts  provided  b y  M ONETA  Leasing,  s.r.o.  Assets  leased  under  operating leases are shown in the category “Assets leased under operatin g  lease” (see note 29). 2)   The line “Rent income ” compr ises operating leas e income from the sub- lease of the HQ building in Prague. 3)   The line “Other collection income” includes the balance of CZK 8 million  for 2024 (2023: CZK 10 milli on) which represents recoveries arising from  written-off receivables exceeding the write-off which is recognised in the  line “Net impairment of f inancial assets” out  of  which CZK 5 million for  2024 (CZK 4 million in 2023) results from legacy  NPL sales. The residual  amount  represents  legal  costs  paid  by  clients  being  under  co llection  proceedings by solicitor offices. 11. PERSONNEL EXPENSES 2024 2023 The average number of employees  during the period 1) 2,475 2,493 Number of Management Board  members 2) 6 5 Number of Supervisory Board  members 2) 9 9 Number of other Key Executive  Managers 2) 3 4 Physical number of employees at  the end of the period 2,587 2,580     CZK m 2024 2023 Salaries and bonuses 3) (1,950) (1,854)  out of which: salaries and  bonuses actuals (1,705) (1,630)  out of which: salaries and  bonuses accruals (245) (224) Social security and health insurance (612) (581) Restructuring costs (4) 25 Other employee-related expenses (98) (94) Total personnel expenses (2,664) (2,504) 1)   The average number of em ployees during the period is an av erage of t he  f igures  reported  to  the  Czech  Statistical  Authority  (CSA)  on  a  monthly  basis  in  accordance  with  Paragraph  15  of  Czech  Decree  No.  518/2004  Coll. The figures reported to the CSA equal the quotient of the following  nominator and the  following denominator. The nominator is defined as  all hours worked by all employees, their related leaves/holidays a nd their  related  sick  days.  The  de nominator  represents  the  standard  working  hours per employee and month. 2)   Represents number as of the period end. 3)   Remuneration to members of Supervisory Board, Management Board and  other Key Executive Managers are descri bed in n ote 42.1. 170 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 12. ADMINISTRATIVE EXPENSES CZK m 2024 2023 IT and softw are expense (694) (638) Rent expense 1) (36) (55) Rent-related services (123) (182) Advisory services (28) (22) Auditor’s fees (29) (27) Marketing (224) (205) Travel cost (36) (33) Other expenses 2) (382) (471)   out of which: ATM expense (51) (53)   out of which: legal exp ense (19) (27)   out of which: office supplies (8) (8)   out of which: transport of cash (58) (95) Total administrative expenses (1,552) (1,633) 1)   The line “Rent expense” includes mainly leases whose term ends within  twelve months from the date of in itial application or from the lease start  date (short-term leases) and leases of assets with a purchase price lower  than CZK 100 thousand (low-value assets). 2)   The line “Other expenses” comprises expenses on other services provided  by 3rd parties not disclosed separately, e.g. subscription fees, support of  ATMs, transport of cash, postage, training, cleanin g serv ices, car expense,  etc. In 2024 line “Auditor’s fee” consists of: •  Statutory audit CZK 19 million; •  Other  assurance services CZK 13 million – quarterly  financial  review  for  the  purpose  of  inclusion  o f  interim profit into regulatory capital, ESG reporting  audit,  r eview  of  Remuner ation  repo rt  and  bond  comfort letter (out of which CZK 5 million is  part of  the amortised cost of the issued bond s); •  Other    non-au dit  servi ces  CZK  2  million  –  MiFID  reporting,  review  of  i nternal  control  system  requeste d by the Czech National Bank, proofread of  Annual Financial Report and training. 13. REGULATORY CHARGES CZK m 2024 2023 Contributions to Deposit Insurance  Fund (147) (171) Contributions to Resolution and  Recovery Fund 1) (62) (130) Contributions to Investor  Compensation Fund (7) (6) Total regulatory charges (216) (307) 1)   Decrease  in  2024  is  mainly  driven  by  a  h igh  level  of  fulfilment  of  the  Resolution and Recovery Fund and the corresponding lower contribution  to the fund. 14. DEPRECIATION AND AMORTISATION   CZK m 2024 2023 Depreciation of property and  equipment (509) (532)  out of which: right-of-use assets (318) (319) Amortisation of intangible assets (716) (701) Total depreciation and amortisation (1,225) (1,233) Impairment losses are disclosed in no te 15. 15. OTHER OPERATING EXPENSES CZK m 2024 2023 Damages (7) (8) Unrecoverable VAT (1) (2) Other expenses (57) (43)    out of which: impair ment of  non-financial assets (3) (4) Total other operating expenses (65) (53) 16. NET IMPAIRMENT OF FINANCIAL ASSETS CZK m 2024 2023 Additions and release of loan loss  allowances (360) (327) Additions and release of  allowances/provisions to unused  commitments 11 32 Use of loan loss allowances  associated with written-off  receivables 951 710 Income from previously written-off  receivables 33 56 Write-offs of uncollectable  receivables (981) (727) Change in allowances to Investment  securities 1 (4) Change in allowances to operating  receivables - (4) Collection costs (41) (41) Net impairment of financial assets (386) (305) Line “Income from previously written-off receivables”  includes in 2024 CZK 17 million (2023: CZK 40 million)  representing  recovery  resulting  from  NPL  sales.  The  overall profit or  loss impact of the  NPL  sales in 2024  is CZK 132  million (2023: CZK 307 million) representing  recovery,  release  of  r e l ate d  unuse d  Loan  Loss  Allowances and Other income (see note 10). If  loss  given  default  (LGD)  (in  ei ther  the  indivi du al  asses sment  or  statistical  models)  changes  by  +/-  10%  in relative  terms, then  the  loan loss allowances would  change by +/- C ZK 476 million as at 31 December 2024  and by +/- CZK 482 million as at 31 December 2023. 171 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The  Gro up  ref lects  external  collection  costs  in  determining  the  impairment  loss  of  loans  and  receiv ables  and  these  costs  are  disclosed  in  the  line  “Net  impairment  of  financial  as sets”  when  they  are  incurred. An estimate of these costs also reduces the  present  value  of  recovery  cash  flows  expected  from  related, defaulte d receivables. At  each  financial  statement  date,  financial  assets  not  measured  at fair  value through  profit or  loss are  asses sed  for  impairme nt.  The  Gro up  determines  whether  as  a  result  of  an  event  o r  events  o ccurring  alone or in combination, a financial asset is considered in  default.  For  further  details,  s ee  note  44.2.2.  Calculation of loan loss allowances is performed in line  with IFRS 9. For further details, see note 44.2.4. Impacts of the current macroeconomic environment Significant  uncertainty  regarding  the  future  macroeconomic developments in connection with the  environment  of  high  interest  rates  remained  during  2024.  The  Group  continued  to  take  this  risk  factor,  which  is  not  adequately  reflected  in  the  current  IFRS 9 model of expected credit lo sses, into ac count  through  the  management  overlay framework, which  was  c ontinuously  monitored  and  updated  during  2024.  Thes e  regular  reviews  included  also  the  backtest of overlay assumptions. As at 31 December  2024, the total management overlay amount stood at  CZK 394 million.  Macroeconomic  assumptions  in  the  IFRS  9  model  were  updated  in  Augus t  2024.  The  scenarios  of  the  main  ma croeconomic  variables  of  the  m odel  (unemployment  rate  and  GDP  growth)  were  constructed  based  on  th e  latest  available  fo recasts  provided by  the  Czech  National  Bank.  The  potential  negative development of these drivers is reflected via  the adverse IFRS 9 macroeconomic scenario. The foll owing table shows an overview of internal scenarios based on the prognoses of the MFCR and the CNB: GDP Growth Year MFCR (1/2024) MFCR (4/2024) MFCR (8/2024) MFCR (11/2024) CNB (2/2024) CNB (5/2024) CNB (8/2024) CNB (11/2024) IFRS 9 MODEL 2024 1.2% 1.4% 1.1% 1.1% 0.6% 1.4% 1.2% 1.0% 1.2% 2025 2.5% 2.6% 2.7% 2.5% 2.4% 2.7% 2.8% 2.4% 2.8% 2026 2.4% 2.4% 2.4% Unemployment Year MFCR (1/2024) MFCR (4/2024) MFCR (8/2024) MFCR (11/2024) CNB (2/2024) CNB (5/2024) CNB (8/2024) CNB (11/2024) IFRS 9 MODEL 2024 2.8% 2.8% 2.8% 2.6% 3. 0% 2.9% 2.7% 2.7% 2.7% 2025 2.7% 2.7% 2.7% 2.5% 3.1% 3.1% 2.8% 2.9% 2.8% 2026 3.0% 3.0% 3.0% Management overlay Throughout 2024, the management overlay fram ework  was subject to regular reviews, backtests and updates in line with the pre-de fined governance framework.  In  May  2024,  the  management  overlay  reflecting  risks associated with  exposures  s ecured by COVID-19  guarantees  expiring  within  12  consequent  months  was dissolved in the amount of CZK 80 million  si nce its  initial assumptions have not materialised. As at 31 December 2024, the total management overlay  amount stood at CZK 394 million. 17. TAXES ON INCOME Tax expense from the Group’s profit before tax can be  analysed as follows: CZK m 2024 2023 Current income tax for the year (1,003) (934) Income ta x related to prior years 15 (12) Change in deferred tax position  recognised in profit or loss (7) 34 Taxes on income (995) (912) 172 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The table below show s the reconciliation of the actual  tax  charge an d  the tax  charge based  on applyi ng the  stand ard corporate income  tax  rate  accordin g  to  the  Czech Repub lic’s income tax law: CZK m 2024 2023 Profit for the period before tax 6,803 6,112 Theoretical income tax accounted  for i nto expenses, calculated at th e  rate of 21% (2023: 19%) (1,429) (1,161 ) Tax related to the prior y ears 3 (12) Impact of the tax non-deductible  expenses (53) (37) Impact of the tax-exempt inco me 1) 484 296 Impact of windf all tax on defer red  tax - 46 Impact of change in the inco me tax  rate from 19% to 21% (effective  from 1 January 2024) - (44) Taxes on income (995) (912) Effec tive income tax rate 14.6% 15.0% 1)   Tax-exempt  income  is  primarily  realised  from  investments  into  Governm ent bonds issued after 1 January 2021. The Group is not aware of any uncertain tax treatment  as  def ined  in  IFRIC  23  Uncertainty  over  Incom e  Tax  Treatments, thus calculation of current and deferre d tax  is not influenced by extra judgements and estimates,  which requires separate disclosure. The Bank shall be subject to the wind fall tax imposed  by the Government on Banks that report net interest income  higher  than  CZK 6 billion  in  2021, Power and  Fuel industry for tax  periods  from 2023 to 2025. The  Windfall tax base is positive excess over the individual  Bank’s  four-year  average  tax  base  (2018  to  2021)  increased by 20 percent and its actual tax bas e of the  given  tax  period.  Such  excess  if  any  is  subject  to  an  additional 60 percent taxation. In 2024, based on the current operating plan, the Bank  does  not  expect  payment  of  any  windfall  tax  in  the  future, thus there is neither an impact on pay able nor  deferred tax. The Group is generally subject to Global minimum tax under  Pillar  II.  Based  on  the  Group’s  tax  calculation,  in 2024, the threshold for application of the minimum  tax  is  not  met,  the refore,  income  tax  payable  is  not  impacted  in  the  c urrent  period.  With  respect  to  the  latest  available  tax  forecasts ,  the  Group  does  not  expect material exposure to Pillar II In come tax in 2025. 18. EARNINGS PER SHARE Earnings per share amounts are calculated by dividing  the  net  profit  for  the  year  after  tax  attributable  to  ordinary  equity  holders  by  the  weighted  average  number of ordinary shares outstanding during the year. CZK m 2024 2023 Profit for the year after tax  attributable to the equity holders 5,808 5,200 Weighted average of ordinary  shares (millions of shares) 511 511 Basic earnings per share (CZK ) 11.37 10.18 As  the  Group  has  not  issued  any  potentially  dilutive  instruments,  the  basic  earnings  pe r  share  equal  the  diluted earnings per share. 19. CASH AND CASH BALANCES AT THE CENTRAL BANK CZK m 31 Dec 2024 31 Dec 2023 Cash and cash in transit 3,770 3,206 Term deposits included in the cash  equivalents 1,639 - Mandatory minimum reserve and  clearing a ccount with the central  bank 8,132 7,665 Total cash and cash balances at the central bank 13,541 10,871 The Group includes a mandatory minimum reserve with  the Czech Nati onal Bank into “Cash and cash balances  at the central bank”. The Group may draw funds from  the mandatory minimum reserve at any point in time  provided  that  the  avera ge  balance  over  the  relevant  period meets the minimum levels  requi red according  to the regulations of the Czech National Bank. 20. CASH AND CASH EQUIVALENTS For  the  purposes  of  the  consolidated  statement  of  cash  flows,  cash  and  cash  equivalents  comprise  the  following balances with maturities from the acquisition  of less than 3 months: CZK m 31 Dec 2024 31 Dec 2023 Cash and cash balances at the  central bank 13,541 10,871 Lo ans and receivables to banks 76,690 67,392 Total cash and cash equivalents 90,231 78,263 173 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 21. TRANSFER OF FINANCIAL ASSETS – REPURCHASE TRANSACTIONS 31 Dec 2024 CZK m Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Liabilit ies arising from repurchase agreements   with clients - - - -   with banks - - - - Total liabilities arising from repurchase agreements - - - - Financial assets transferred as collateral in repurchase agreements   Financial assets measured at amortised cost - - - -   Financial assets receiv ed in reverse repos - - - - Total financial assets transferred as collateral in repurchase agreements - - - - 31 Dec 2023 CZK m Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Liabilit ies arising from repurchase agreements   with clients - - - -   with banks - 2,531 - 2,531 Total liabilities arising from repurchase agreements - 2,531 - 2,531 Financial assets transferred as collateral in repurchase agreements   Financial assets measured at amortised cost 2,824 - 3,229 -   Financial assets receiv ed in reverse repos - - - - Total financial assets transferred as collateral in repurchase agreements 2,824 - 3,229 - Liabilitie s from repurchase agreements represent the obligation to repay the borrowing and are shown in the lines  “Due to banks” (see note 33) and “Due to customers” (see note 34). As at 31 December 2024, no financial ass ets have been trans fe rred as collateral. As at 31 December 2023, financial  assets transferred as collateral consisted of Government bonds (see note 24) measured at an amortised cost of  CZK 2,824 million. 174 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 22. LOANS AND RECEIVABLES TO BANKS Loans and re ceivables to banks include: CZK m 31 Dec 2024 31 Dec 2023 Current accounts at banks 385 260 Overnight deposits 937 392 Rec eivables arising from reverse  repurchase agreements 1) 75,368 66, 740 Cash collateral granted 2) 2,513 2,238 Other 3) 3 2   Included in cash equivale nts 76,690 67,392 Total loans and receivables to banks 79,206 69,632 1)   The Group provides reverse repo operations with th e Czech National Bank.  The  colla teral  received  as  at  31  December  2024  of  CZK  73,856  million  (31 December 2023 CZK 65,422 mil lion) is  represented by  treasury  bills  that are not recognised in the statement of financial position. 2)   Comprises collateral granted for derivativ e transactions. 3)   Represents an  unsolicited  dividend for  the  years  2021 ,  2022, 2023  and  2024  transferred  to  Komerční  banka,  a.s.  that  is  administering  the  payment. The Group did not recognise any allowances to loans  and  receivables  to  banks  during  2024  and  2023,  as  such  exposures  are  short-term  only  and  impact  is  immaterial. 23. LOANS AND RECEIVABLES TO CUSTOMERS (a) Loans and receivables to customers by sector CZK m 31 Dec 2024 31 Dec 2023 Financial organisations 1,31 2 1,551 Non-financial organisations 57,437 52 ,052 Government sector 181 171 Non-profit organisatio ns 70 80 Entrepreneurs 23,819 20,699 Resident individuals 189,764 187,088 Non-residents 6,852 6,105 Gross carrying amount of Loans and receivables to customers 279,435 267,746 Less Loss allowance for Loans and  receivables to customers (4,052) (4,682) Net book value of Loans and receivables to customers 275,383 263,064 (b) Loans and receivables to customers by product 31 Dec 2024 31 Dec 2023 CZK m Gross carrying amount Allowances Carrying amount Gross carrying amount Allowances Carrying amount Retail loan balances   Consumer Loans 49,067 (1,847) 47,220 48,702 (2,144) 46,558   Mortgages 1) 131,179 (569) 130,610 128,604 (658) 127,946   Credit Cards & Overdrafts 2,449 (158) 2,291 2,470 (200 ) 2,270   Auto Loans 2,792 (94) 2,698 2,560 (89) 2,471   Other 7 (7) - 8 (8) - Total Retail 185,494 (2,675) 182,819 182,344 (3,099) 179,245 Commercial loan balances   Inves tment Loans 50,26 2 (290) 49,972 45,364 (291) 45,073   Working Capital 16,696 (202) 16,494 15 ,519 (193) 15,326    Auto & Equipment Loans 9,045 (194) 8,8 51 9,069 (2 04) 8,865    Unsecured Instalment Loans and Overdraft 16,879 (682) 16,197 14,380 (881) 13,499   Inventory Financing and Other 1,059 (9) 1,050 1,070 (14) 1,056 Total Commercial 93,941 (1,377) 92,564 85,402 (1,583) 83,819 Total Loans and receivables to customers 279,435 (4,052) 275,383 267,746 (4,682) 263,064 1)  Part of the mortgage portfolio is an underlying asset for mortgage-backed bonds. 175 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (c) Loss allowances for loans and receivables to customers by sectors CZK m Financial organisations Non-financial organisations Non-profit organisations Entrepreneurs Resident individuals Non-residents Total 1 Jan 2024 7 688 2 821 3,065 99 4,682 Net change of a llowances recognised in Statement  of Financial posit ion - 20 - (1) 305 (5) 319 Effec t of written-off  receivables - (51) - (156) (717) (27) (951) Ex change rate variances - 1 - - - 1 2 31 Dec 2024 7 658 2 664 2,653 68 4,052 CZK m Financial organisations Non-financial organisations Non-profit organisations Entrepreneurs Resident individuals Non-residents Total 1 Jan 2023 45 718 6 773 3,480 86 5,108 Net change of a llowances  recognised in Statement  of Financial posit ion (38) 42 (4) 152 102 25 279 Effec t of written-off  receivables - (74) - (104) (517) (15) (710) Ex change rate variances - 2 - - - 3 5 31 Dec 2023 7 688 2 821 3,065 99 4,682 24. INVESTMENT SECURITIES CZK m 31 Dec 2024 31 Dec 2023 Debt securities measure d at  amortised cost 116,597 104,297    out of which: government bonds 113,208 101,070   out of which: corpor ate bonds 3,389 3,227 Debt securities measure d at FVTPL 41 30 Equity securities measured at FVTOCI 1 1 Equity securities measured at FVTPL 25 25 Total investment securities 116,664 104,353 By listing:   - list ed 116,597 104,297   - unlisted 67 56 Debt securities measured at amortised cost are held with  the objective to hold the assets and co llect co ntractual  cash  fl ow,  thus  presented  under  the  Hold  to  Collect  business model. Expected  credit  losses  related  to  debt  securities  measured  at  amortised  cost  at  31  December  2024  amount  to  CZK  21  million  (31  December  2023:  CZK 23 million). In  2024,  there  was  sale  of  corporate  bond  from  the  port folio  measured  at  amortised  cost  held  within  the  business  mod e l  Hold  to  C ollect  in  the  amount  of  CZK 1,086 million  (2023:  CZK  1,186  million).  The  bond  sale  was  considered  as  infrequent  sale  of  in significant  value according to the business mo del assessment. Equity securities measured at FVTOCI includ e investment  in  SWIFT.  The  Gro up  elected  the  irrevocable  opti on  provided by  IFRS 9  to  cl assify its  investment  in  SWIFT  as at the date of transition to IFRS 9 as FVTOCI as the  Group intends to hold these in the long term an d they  were measured in the same way according to IAS 39 and  IFRS 9. Since transitioning to IFRS 9, all gains  and losses  resulting  from  FVTOCI  equity  instruments,  including  when  derecognised  or  sol d,  are  recorded  i n  OCI  and  are not subsequently  reclassif ied to profit or loss.  The  Group did not receive any dividends relating to FVTOCI  equity instruments in 2024 and 2023. There have been  no  disposals  from  FVTOCI  equity  sec urities  in  periods  2024 and 2023. In  April  2021,  the  Gro up  purchased  a  10%  share  of  Bankovní  identita,  a.s.  The  share  is  clas sified  as  an  equity instrument measured  at  FVTPL.  The reason  for  purchasing  the  share  was  to  closely  participate  in  the  provision  of  identity  verification  services  provided  by  Bankovní  identita,  a.s.  As  at  31  December  2024,  the  Group holds an 8% share of Bankovní identita, a.s. and  the total investment amounts to CZK 25.2 million. Debt secur ities measured at FVTPL consist of the VISA  Preferred Stock Series C securities that can be s old in the  future when it is possible and VISA Series A Convertible  Participating Preferred Stock that can be converted into  marketable shares. As at 31 December 2024,  the  Group had no repurchase  transactions, therefore, no debt s ecurities measured at  amortised cost are transferred as collateral under these  transactions.  As  at 31 December 2023, debt  securities  measured at amortised cos t with a carrying amount of  CZK 2,824 million were  transferred  as collateral under  repurchase transactions. 176 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 25. ISSUED BONDS Mortgage-Backed Bonds As at 31 December 2024, the Group did not maintain any tranche of mortgage-backed securities issued outside the  Group.  Internally Issued Mortgage-Backed Bonds (on own books) The m ortgage-backed bonds are covered by mortgage l oans provided to the Group’s clients. The purpose of the  issuance o f these bonds is only in case of potential recovery or resolution strategy of the Bank. In such events,  internally  held  mortgage-backed  bonds  would  be  used  as  collateral  for  a  lombard  loan  or  repo  op e rations  predominantly with the Czech National Bank in o rder to support the liquidity position of the Bank. As at 31 December  2024, the Group did not realise any of these above-mentioned op e rations and the mortgage-backed bonds were  held internally, therefore, these bonds are not recognised in the Statement of the financial position. Other Issued Bonds The  Bank issued the  bonds as a part of compliance  with the minimum requirement  for own  funds and eligible  liabilities (“MREL”) requirement which was set for the Bank by the CNB. The Bank issued the senior preferred bonds in the total nominal amount of CZK 1,500 million and EUR 400 million.  The EUR tranches were settled on 3 February 2022 and 11 September 2024 and the CZK tranche was settled on  15 December 2022. Further issue details are described in the followin g table. These instruments are initially measured at fair value minus incremental direct transaction costs and subsequently  measured at their amortised cost using the effective interest rate method. ISIN Issue date Currency Maturity date Interest rate Call option Total nominal amount outstanding EUR m/CZK m XS243560144 3 3 Feb 2022 EUR 3 Feb 2028 1.625% p.a. after 5 years 100 CZ0003707671 15 Dec 2022 CZK 15 Dec 2026 8.00% p.a. after 3 years 1,500 XS2898794982 11 Sep 2024 EUR 11 Sep 2030 4 .414 % p.a. after 5 years 300 Amortised cost of the outstanding Other issued bonds: CZK m 31 Dec 2024 31 Dec 2023 Other issued bonds at amortised cost 11,562 3,808 Total 11,562 3,808 The Gr oup did not report any default of principal or interest or other breaches with respect to other issued bonds  during the years 2024 and 2023. 26. SUBORDINATED LIABILITIES Issued Subordinated Debt Securities Subordinated debt securities were issued to strengthen regulatory capital on a consolidated as well as individual  level. These liabilities are subordinated to all other liabilities of the Bank. As at 31 December 2024, they form in the  partial amount of CZK 4.5 billion a part of the Tier 2 capital of the Bank as defined by the CNB for the purposes of  determination of i ts capital a dequacy. These instruments are initially measured at fair value minus incremental direct transaction costs and subsequently  measured at their amortised cost using the effective interest rate method. 177 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The B ank i ssued debt securities in the total nominal amount of CZK 4,602 million. ISIN Issue date Currency Maturity date Interest rate Call option Total nominal amount at issue date CZK m MB 3.30/29 CZ0003704918 25 Sep 2019 CZK 25 Sep 2029 5.65% p.a. 1) after 5 years 2) 2,001 MB 3.79/30 CZ0003705188 30 Jan 2020 CZK 30 Jan 2030 3.79% p.a. after 5 years 2,601 1)   Effective from 25 Septe mber 2024, in accordance with the bond prospectus, the interest rate was adjusted from a fi xed rate of 3.30% p.a. to a floating rate  calculated as 6M PRIBOR plus a 1. 63% margin. 2)   The first opportunity to exercise the call option after 5 ye ars has expired. The call option can now be exercised each year on the annivers ary date. Amortised cost of the outstanding subordinated debt securities: CZK m 31 Dec 2024 31 Dec 2023 Subordinated debt securities at amortised cost 4,706 4,690 Total 4,706 4,690 The  Group  did  not  report  any  default  of  principal  or interest  or  other  breaches  with  r espect  to  sub ordinated  liabilities during the years 2024 and 2023. Subordinated Deposits In the second quarter of 2023, the  Bank strengthened its capital and eligible liabiliti e s  through a subordinated  deposit offering. The Bank has rec eived subordinated deposi ts in th e amount of CZK 2.9 billion. The term of the  subordinated deposit is set at five years with a guaranteed interest rate of 7 percent for the entire term. As at  31 December 2024, they form in the partial amount of CZK 2.1 billion a part of th e Tier 2 cap ital of the Bank as  defined by the CNB for the purposes of determination of its capital adequacy (see note 44.1). CZK m 31 Dec 2024 31 Dec 2023 Subordinated deposits at amortised cost 2,916 2,914 Total 2,916 2,914 27. FINANCIAL DERIVATIVES The  Group  enters  into  financial  der ivatives  predominantly  to hedge its interest rate  risk  position  and secondly to economically hedge its FX risk position.  All  maintained  financial  derivatives  are  contracted  Over the Counter (“OTC”). Interest rate swaps or cross currency i nterest rate swaps  are  recogni sed  at  inception  as  hedging  instruments  accor ding to IAS 39, in order to hedge their exposure to  the change of the fair value of a define d part of assets  or liabilities portfolio related to interest rate risk (see  note 5.7.9). Foreign  exchange  derivatives  (curren cy  s waps,  currency  forwards)  are  constr ucted  to  economically  hedge the foreign currency risk  but these  derivatives  are  not  designated  at  initial  reco gnition  as  hedging  deriv atives. They are held under Other business model  (Derivatives classified as held for trading) and measured  at  FVTPL  and  pres e nted  in  the  lines  “Derivative  finan cial instruments with positive/negative fair value”  (derivatives  with  p ositive  fair  values  within  assets,  deriv atives with negative fair values within liabilities). In the statement of financial position, derivatives with positive  fair values  (total  fair value including accrued  interest)  are  presented  in  the  lin e  item  “Hedging  deriv atives with positive fair values ”, derivatives with  negative fair valu es (total fair value including accrued  interest) are  disclosed in the line “Hedging derivatives  with negati ve fair values”. In  th e  years  2024  and  2023,  the  immaterial  ineffectiveness  on  the  hedging  relationship  was  recognised in profit or loss. 178 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Financial derivatives classified as held for trading: 31 Dec 2024 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities CURRENCY DERIVATIVES Currency swaps 14,031 14,009 29 1 Currency forwards 3, 665 3,660 54 51 Cross currenc y interest rate swaps - discontinued  fair value hedges 738 735 41 37 INTEREST RATE DERIVATIVES Inte rest rate swaps - disco ntinued fair value  hedges 8,978 8,978 472 443 Total derivatives for trading 27,412 27,382 596 532 31 Dec 2023 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities CURRENCY DERIVATIVES Currency swaps 1,734 1,745 1 13 Currency forwards 2,617 2,612 66 61 Cross currency interest rate swaps - discontinued  fair value hedges 732 729 19 27 INTEREST RATE DERIVATIVES Interest rate swaps - discontinued fair value  hedges 7,673 7,673 458 422 Total derivatives for trading 12,756 12,759 544 523 Financial derivatives designated at initial recognition as hedging derivatives: 31 Dec 2024 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities INTEREST RATE DERIVATIVES Interest rate swaps designated as fair value hedges 143,032 143,032 2,314 4,147 CURRENCY DERIVATIVES Cross currency interest rate swaps designed as fair value hedges 1,996 2,093 - 112 Total hedging derivatives 145,028 145,125 2,314 4,259 31 Dec 2023 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities INTEREST RATE DERIVATIVES Interest rate swaps designated as fair value hedges 120,564 120,564 2,701 4,490 CURRENCY DERIVATIVES Cross currency interest rate swaps designed as fair value hedges 1,996 2,055 - 58 Total hedging derivatives 122,560 122,619 2,701 4,548 179 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Cash collateral of financial derivatives: 31 Dec 2024 Fair value Cash collateral CZK m Assets Liabilities Received Granted Financial derivatives 2,910 4,791 621 2,513 31 Dec 2023 Fair value Cash collateral CZK m Assets Liabilities Received Granted Financial derivatives 3,245 5,071 834 2,238 28. INTANGIBLE ASSETS CZK m Software purchased Software internally developed Core deposit intangible (CDI) Intangibles not yet activated Total Carrying amount as at 31 Dec 2022 276 2,712 74 317 3,379 Add itions to assets 76 548 - 654 1,278 Activa ted assets during period - - - (624) (624) Amortisation for pe riod (117) (551) (33) - (701) Impairment of asse ts - - - - - Carrying amount as at 31 Dec 2023 235 2,709 41 347 3,332 Add itions to assets 80 565 - 749 1,394 Activa ted assets during period - - - (645) (645) Amortisation for pe riod (124) (559) (33) - (716) Impairment of asse ts - - - - - Carrying amount as at 31 Dec 2024 191 2,715 8 451 3,365 CZK m Software purchased Software internally developed Core deposit intangible (CDI) Intangibles not yet activated Total Co st as at 31 Dec 2022 1,496 7,236 220 317 9,269 Accumulated Amortisation and Impairment 2022 (1,220) (4,524) (146) - (5,8 90) Carrying amount as at 31 Dec 2022 276 2,712 74 317 3,379 Co st as at 31 Dec 2023 1,589 7,771 189 347 9,896 Accumulated Amortisation and Impairment 2023 (1,354) (5,062) (148) - (6,564) Carrying amount as at 31 Dec 2023 235 2,709 41 347 3,332 Co st as at 31 Dec 2024 1,577 8,204 189 451 10,421 Accumulated Amortisation and Impairment 2024 (1,386) (5,489) (181) - (7,056) Carrying amount as at 31 Dec 2024 191 2,715 8 451 3,365 Annual  costs  related  to  research  and  d evelopment  that  did  not  meet  capitalisation  criteria  amounted  to  CZK 140 milli on in 2024 (2023: CZK 108 milli on). 180 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 29. PROPERTY AND EQUIPMENT CZK m Capital improvements of leased assets Equipment and machinery Fixtures and other tangibles Assets leased under operating lease Right-of- use assets – real estates Right-of- use assets – other assets Property and equipment not yet activated Total Carrying amount as at 31 Dec 2022 326 485 30 1 1,454 - 22 2,318 Add itions to assets 60 148 7 - 481 2) - 686 1,382 Disposals/Activated  assets during period (4) (3 3) - - - - (696) (733) Depreciation  for period (65) (135) (12) (1) (319) - - (532) Impairment of asse ts 1) - (3) - - (32) - - (35) Carrying amount as at 31 Dec 2023 317 462 25 - 1,584 - 12 2,400 Add itions to assets 52 100 20 - 170 20 385 747 Disposals/Activated  assets during period - (11) - - - - (362) ( 373) Depreciation  for period (62) (122) (7) - (314) (4) - (509) Impairment of asse ts 1) - (2) - - (3) - - (5) Carrying amount as at 31 Dec 2024 307 427 38 - 1,437 16 35 2,260 1)  Impairment of assets related to “Right-of-use assets – real estates” results from ATMs and branches ter minations. 2)  Increase of amount in 2023 is mainly driven by prolonging the lease term of the Prague Headquarters building by 2 years.  CZK m Capital improvements of leased assets Equipment and machinery Fixtures and other tangibles Assets leased under operating lease Right-of-use assets – real estates Right-of-use assets – other assets Property and equipment not yet activated Total Co st as at 31 Dec 2022 1,050 1,449 140 7 2,679 - 22 5,347 Accumulated  Depreciation 2022 (724) (964) (110) (6) (1,225) - - (3,029) Carrying amount as at 31 Dec 2022 326 485 30 1 1,454 - 22 2,318 Co st as at 31 Dec 2023 1,054 1,325 140 1 3,025 - 12 5,557 Accumulated  Depreciation 2023 (737) (863) (115) (1) (1,441) - - (3,157) Carrying amount as at 31 Dec 2023 317 462 25 - 1,584 - 12 2,400 Co st as at 31 Dec 2024 1,089 1,310 158 - 3,167 20 35 5,779 Accumulated  Depreciation 2024 (782) (883) (120) - (1,730) (4) - (3,519) Carrying amount as at 31 Dec 2024 307 427 38 - 1,437 16 35 2,260 181 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 30. CURRENT TAX ASSETS AND CURRENT TAX LIABILITIES CZK m 31 Dec 2024 31 Dec 2023 Current tax assets 70 76 Current tax liabilities 47 54 Corporate  income  tax  advances  were  offset  with  current income tax payable in the 2023 tax return and  the  difference  was  se ttled  with  the  tax  authority  in  2024. 31. DEFERRED TAX ASSETS AND LIABILITIES Deferred  tax  is  determined  based  on  all  temporary  and timing differences between the tax residual values  of assets and liabilities and their residual book values  in  the  Group’s  financial  statements.  Deferred  tax  is  determined using the tax rate enacted by the balance  sheet date. The tax rate used also considers the impact  of  the  Windfall  tax  (relevant  only  for  the  Bank).  Fo r  the determination of deferred tax assets and liabilities  as  at  31  December  2024,  a  tax  rate  of  21%  i s  used  (31 December 2023: 21%). The  recognition  of  deferred  tax  assets  relies  on  an  asses sment of the probability and sufficiency of future  taxable  profits,  future  reversals  of  existing  taxable  temporary  differences  and  on going  tax  planning  strategi e s. Deferred  tax  ass ets  and  liabilities  consist  of  the  following differences: CZK m 31 Dec 2024 31 Dec 2023 Deferred tax liabilities (629) (623) Loss allowances for loans and  receivables to customers (112) (132) Difference between book value  and tax residual value of long-lived  assets (517) (491) Deferred tax assets 160 161 Loss allowances for loans and  receivables to customers 4 11 Difference between book value  and tax residual value of long-lived  assets 54 33 Other temporary variances 102 117 Net deferred tax at the end of period 1) (469) (462) 1)   The  Group  is  offsetting  deferred tax asset  and deferred tax liability  on  the  subsidiaries  level,  however,  on  the  cons olidated  level  deferred  tax  resulting fro m subsidiaries level is not being off set. The  following  table  shows  the  movement  of  the  net  deferred tax asset: CZK m 2024 2023 Net deferred tax at the beginning of period (462) (496) Change in net deferred tax - total profit or loss impact (7) 34 -  Loss allowances for loans and  receivables to customers 13 (7) -  Difference b etween book value  and tax residual value of long-lived  assets (5) (2 3) - Other temporary variances (15) 64 Net deferred tax at the end of period (469) (462) 32. OTHER ASSETS   CZK m 31 Dec 2024 31 Dec 2023 Accounts receivable 141 156 Advances and guarantees for rent  related services 242 200 Receivables from finance  authorities 11 - Other receivables net of allowances 70 36 out of which: allowances (28) (32) Prepayments 373 299 Other accruals 543 395 Total other assets 1,380 1,086 33. DUE TO BANKS The Group has the following liabilities to other banks: CZK m 31 Dec 2024 31 Dec 2023 Deposits on demand 863 598 Liabilit ies arising from repurchase  agreements 1) - 2,531 Cash collateral received 2) 405 563 Other due to banks 3) 2,566 1,731 Total due to banks 3,834 5,423 Type of rate:   Fixed interest rate 2,566 4,262   Floating interest rate 1,268 1,161 1)   For more details about financial assets  granted as collateral for liabilities  arising from repurchase agreements see not e 21. 2)   Cash collaterals received represent Credit Support Annex (CSA) collaterals  of banks for derivative transactions in the amount of CZK 4 05 million as at  31 December 2024 (CZK 563 million as at 31 December 2023). 3)   Other due to banks comprises loan pr ovided by European Inves tment Bank  (“EIB”) in March 2024 to MONETA Money Bank, a.s. This loan amounts to CZK 2,566 million as at 31 December 2024 (2023: loan provided by EIB in  January 2021 in amount of CZK 1,731 mil lion as at 31 December 2023). 182 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 34. DUE TO CUSTOMERS Breakdown of due to customers by sector: CZK m 31 Dec 2024 31 Dec 2023 Financial organisations 791 2,006 Non-financial organisations 56,065 43,824 Insurance organisations 486 655 Government sector 8,869 8,372 Non-profit organisatio ns 15,666 12,141 Entrepreneurs 19,782 17,223 Resident individuals 323,199 312,460 Non-residents 5,163 2,816 Total Due to customers 430,021 399,497 Rate type:   Fixed interest rate 83,408 81,475   Floating interest rate 1) 345,848 317,235   Non-interest-bearing 765 787 Total due to customers 430,021 399,497 1)   This  item  principally  includes  client  depos its  where  the  Group  has  the  option to reset interest rates and hence, they are not sensitive to interest  rate changes. Generally, it is the rate d eclared by the Group. Breakdown  of  due  to  customers  by  product  is  as  follows: CZK m 31 Dec 2024 31 Dec 2023 Retail due to customers 323,821 312,998   Current accounts 54,839 52,592   Savings accounts and term  deposits 243,576 233,612   Buil di ng savings 25,406 26,794 Commercial due to customers 105,531 85,809   Current accounts 53,018 41,624   Savings accounts and term  deposits 51,499 43,018   Buil di ng savings 1,014 1,167 Cash collateral received 215 270 Other liabilities towards customers 454 420 Total due to customers 430,021 399,497 Unrecognised due to customers:  CZK m 31 Dec 2024 31 Dec 2023 Outstanding amount of investment  funds 59,373 38,498 35. PROVISIONS CZK m 2024 2023 Provisions for undrawn loan commitments 1) 1 Jan 101 131 Additions to provisions 300 301 Use of provisions - - Release of unused provisions (311) (331) 31 Dec 90 101 Other provisions 1 Jan 165 175 Additions to provisions 154 134 Use of provisions (144) (134) Release of unused provisions (2) (10) 31 Dec 173 165 Total provisions 263 266 1)   Majority  of  the  balance  re sults  from  overdraft  facilities  and  working  capital and is usually settled up to 1 year. Provisions for undrawn loan commitments are created  for irrevocable loan commitments (r efer to note 40). The  Group  created  other  provisions  for  its  legal  obligations  associated  with  the  r etirement  of  the  premises  leased  for  operation,  for  restructuring,  for  commissions claw-back and fo r collection services. Other provisions CZK m 31 Dec 2024 31 Dec 2023 Provisions for assets retirement  obligation 1) 34 34 Provisions for restructuring 5 2 Provisions for commissions claw- back 2) 126 118 Other 8 11 Total other provisions 173 165 1)   Settlement is driven by abandonment of leased property. Lease term of  such contracts is shown in note 41. 2)   Commission claw-back is applicable over 60 months f rom o rigination of  the contract. 183 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 36. OTHER LIABILITIES CZK m 31 Dec 2024 31 Dec 2023 Trade payables 206 267 Payables to employees 134 132 Payables for social and health  insurance 64 60 Payables to the state 165 21 9 Accruals for uninvoiced services/ goods 618 513 Accruals for employees bonuses 1) 405 310 Clearing account of payment  settlement 2) 1,120 621 Deferred income and accrued  expenses 40 33 Lease liabilities 1,389 1,501 Other 3) 275 77 Total other liabilities 4,416 3,733 1)   Accruals for employee bonuses as  at 31 December 2024 include bonuses  to  membe rs  of  the  Manageme nt  Board  under  the  EVIP  policy  of  CZK 211  million (2023:  CZK  148 million) described  in  note 39  and o ther  management, retention or sales bonuses. 2)   Line  “Clearing  account  of  payment  settlement”  comprises  especially  balances from settlement of card transactions and payments transactions  processed via the CNB clearing system. The line may result eithe r as an  asset or liability. In the case, the closing balance is an asset, it is recognised  within “Other assets”. 3)   Line  “Other”  as  at  31  December  2024  includes  an  unsolicit ed  dividend  for  the  years  2021  –  2024  in  the  amount  of  CZK  108  million  (2023:  CZK 2 million). 37. CONSOLIDATION GROUP The  definition  of  the  consolidation  group  as  at  31  December  2024  has  not  changed  compared  to  the  l ast  Cons olidated Annual Financial Statements.  Apart from the Bank, the Group’s companies included in the consolidation group as at 31 December 2024 together  with the owner ship were as follows: 31 Dec 2024 CZK m Name Registered office Business activity Equity as at 31 Dec 2024 Bank’s share of equity Method of consolidation MONETA Auto, s.r.o. Vyskočilova 1442/1b,  140 00 Prague 4 Auto financing  (Providing of loans) 762 100% Full MONETA Leasing, s.r.o. Vyskočilova 1442/1b, 140 00 Prague 4 Financing of loans  and leasing 181 2) 100% Full MONETA Stavební Spořitelna, a.s. Vyskočilova 1442/1b, 140 00 Prague 4 Building savings and  bridging loans 2,250 100% Full CBCB - Czech Banking Credit Bureau, a.s. 1 ⁾  Štětkova 1638/18  140 00 Prague 4 Banking Credit  Register 3 2),3) 20% Equity 1)   The Group holds  i ts share in CBCB - Czech Banking Credit Bureau, a.s. in  order to obtain information related to the credit quality of  c urrent and  potent ial  customers. 2)  Equity according to IFRS Accounting Stand ards - unaudited. 3)  Share of equity belonging to the G roup. 184 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Name Registered office Business activity Equity as at 31 Dec 2023 Bank’s share of equity Method of consolidation MONETA Auto, s.r.o. Vyskočilova 1442/1b,  140 00 Prague 4 Auto financing  (Providing of loans) 672 100% Full MONETA Leasing, s.r.o. Vyskočilova 1442/1b, 140 00 Prague 4 Financing of loans  and leasing 233 2) 100% Full MONETA Stavební Spořitelna, a.s. Vyskočilova 1442/1b, 140 00 Prague 4 Building savings and  bridging loans 2,832 100% Full CBCB - Czech Banking Credit Bureau, a.s. 1 ⁾  Štětkova 1638/18  140 00 Prague 4 Banking Credit  Register 3 2),3) 20% Equity 1)   The Group holds  i ts share in CBCB - Czech Banking Credit Bureau, a.s. in  order to obtain information related to the credit quality of  c urrent and  potent ial  customers. 2)  Equity according to IFRS Accounting Stand ards - unaudited. 3)  Share of equity belonging to the G roup. 38. EQUITY 38.1 SHARE CAPITAL OF THE GROUP All of the Bank’s shares are ordinary freely transfe rable  shares wi th no special rights or restrictions attached.  The ordinary shares carry, among other rights provided  for  in  law and  the Bank’s Articles  of  Association, the  right  to  participate  in  the  General  Meeting  of  the  Bank  through  exer cising  voting  rights  (with  one  vote  per  share)  and  the  right  to  share  in  profits.  Since  23  November  2015,  the  registered  capital  of  the  Bank  had  been  CZK  511  million,  was  f ully  pai d  up  and  is  pre sented as  “Share  capital”  in  the  statement  of  financial  position.  On  11  April  2016,  511  ordinary  registered  book-entry  shares  in  the  Bank  with  a  par  value of CZK 1,000,0 00 each were split into 511,000,000  fully  paid  ordinary  registered  bo ok-entry shares  with  a par value of CZK 1.00 each. On  26 November  2019 the increase  in the  registered  share  capital  was  approved  by  shareh olders  of  the  Bank  at  the  General  Meeting  and  was  accomplished  exclusively through the increase of the nominal value o f  the shares from the original nominal value  o f CZK 1.00  to  CZK  20.00.  Th e  registered  share  capital  cur rently  consists of 511,000,000 fully paid ordinary registered book-entry shares with a par value of CZK 20.00 each. Since  then,  the  Bank  has  not  issued  any  ordinary  or  other shares. The Group did not acquire any of its own  shares. The  latest  available  list  of  entities  recorded  in  the  registry  of  book-e ntry  shares  of  th e  Bank  kept  by  the  Central  Securities  Depositor y  Prague  (Centrální  depozitář  cenných  papírů,  a.s.)  with  a  shareholding  interest of m ore than 1% of the Bank’s registered share  capital  is  available  in  the  investor  relations  section  of  the  Bank’s  website  at:  https://investors.moneta. cz /shares.  Such  entities  may  no t  necessarily  be  the  beneficial  shareholders  of  the  Bank  but  may  h old  shares of the Bank for the beneficial shareholders (as  securities brokers, banks, custodians or nominees). Please  r efer  to  chapter  1.4  o f  the  Annual  financial  report to the section “Shareh older structure” for the  information on the shareholder structure of the Bank as at 31 December 2024. As far as the Bank is aware, no  shareholder was a co ntr olling entity of the Bank as at  31 Dece mber 2024. 185 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Overview of related parties holding shares of the Bank as at 31 December 2024: 31 Dec 2024 31 Dec 2023 Shareholder Number of shares Ownership in % Number of shares Ownership in % Tanemo a.s., Enti ty with significant influence on  MONETA 153,000,000 29.941% 153,000,000 29.941% Tomáš Spurný,  Chairman of the Management Board 304,839 0.060% 304,839 0.060% Jan Friček,  Member of the Management Board 35,000 0.007% 35,000 0.007% Jan Novotný,  Member of the Management Board 23,300 0.005% 23,300 0.005% Carl Normann Vökt,  Vice-Chairman of the Board 35,025 0.007% 25,122  0.005% Tatiana Eichler, closel y related to the  Chairman of the Supervisory Board 100,000 0.020% 100,000 0.020% Mr. Michal Petrman ’s four-year term of office in th e Bank’s Supervisory Board and Audit Committee expired in  September 2024 and therefore he was not a r e lated party as at 31 Decemb e r 2024. No other related person or o th e r related party with a rel ationship to the Bank held any shares of the Bank as at  31 Dece mber 2024 or 31 December 2023. 38.2 STATUTORY RESERVE AND RESERVE FROM REVALUATION OF FINANCIAL ASSETS OF THE GROUP Statutory reserve The reserve fund stood at CZK 102 million as at 31 December 2024 (31 December 2023: CZK 102 million) represents  Legal and statutory reserve of MONETA Money Bank, a.s. Reserve from revaluation of FVTOCI (presented in “Other reserves”) CZK m Debt instruments Equity instruments Deferred Tax Total 1 Jan 2024 - 1 - 1 Gains and losses in the period recognised in the income  statement - - - - Gains and losses in the period recognised in Reserve  from revaluation of FVTOCI - - - - 31 Dec 2024 - 1 - 1 CZK m Debt instruments Equity instruments Deferred Tax Total 1 Jan 2023 - 1 - 1 Gains and losses in the period recognised in the income  statement - - - - Gains and losses in the period recognised in Reserve  from revaluation of FVTOCI - - - - 31 Dec 2023 - 1 - 1 186 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 38.3 DIVIDENDS PER SHARE The following table shows dividends per share paid to  owners: CZK 2024 2023 Paid dividends per share within  period 12.00 1) 8.00 1)   The  General  Meeting  held  on  23  April  2024  approved  the  dividend  payment of CZK 9 per share w hich was paid on 21 May 2024. The General  Meeting held on 19 Novembe r 2024 ap proved the dividend payment of  CZK 3 per share which was paid on 17 December 2024. On  31  January  2025,  the  Bank’s  Management  Board  announced  that  it  will  pro pose  to  sharehol ders  a  dividend  for  the  year  2024  in  the  amount  of  CZK  10  per  shar e for appr oval at the Annual General Meeting,  which will be held on 24 April 2025. The total am ount  of the distributed dividend will reach CZK 5,110 million. 39. BONUSES TIED TO THE EQUITY Executive Variable Incentive Plan (EVIP) In  2017,  the  variable  remuneration  programme  Executive Variable Incentive Plan (EVIP) was introduced  for  the  Management  Board  members  and  othe r  Material  Risk  Takers.  Since  2024,  an  integral  part  o f  this programme  is  also the EVIP Executive Long-Term  Premium Award for  th e Management Board  members,  which  is  derived  from  the  fulfilment  of  mid-term  finan cial  targets  set  as  part  of  the  three-year  mid- term guidanc e  which  is  defi ned and p ublished at the  beginning of the three-year evaluation cycle. The first  award  granted  in  2024  was  based  on  the  financial  performance  for  the  year s  2021,  2022,  and  2023,  evaluated against the mid-term guidance published  on  5 February 2021. The total balance of accrual for EVIP disclosed in “Oth e r  liabilities” as at 31 December 2024 is CZK 211 million  (31  December  2023:  CZK  147.7  million),  of  which  CZK 106.4 million (31 December 2023: CZK 63.1 million) relates  to  cash  settled  share-based  payment  remuneration  that will  be paid in the  following year s  in  thre e  to  five  cash  instalm e nts  as  defined  in  EVIP  conditions  regardless  of  potential  termination  o f  the  membership o f the Management Board. This variable  part of  EV IP  bonu ses is  tied  to  the  total  shareholder  return (TSR), hence the amount paid will v ary according  to changes i n the market price of the Bank’s shares and  profit distributions of the Bank (dividend paid). For  more  details  about  EVIP  (esp.  total  awarded  and  paid  rewards  from  2020  to  2024),  please  refer  to  th e  Remuneration  Report  2024  (remuneration  documents have been published and ar e available on  the investors website in the Remunerati on section at   https://investors.moneta.cz/corporate-documents). 40. CONTINGENT LIABILITIES 40.1 LOAN COMMITMENTS AND ISSUED GUARANTEES CZK m 31 Dec 2024 31 Dec 2023 Lo an commitment 24,6 95 23,903 Issued guarantees 1,186 864 Credit limits on i ssued guarantees 1) 1,387 1,372 Issued letter of credit 8 5 Total loan commitments and issued guarantees - gross carrying value 27,276 26,144 Provisions to expected credit losses (104) (115) Total loan commitments and issued guarantees – net carrying value 27,172 26,029 1)   This  line  represents  committed  limits  on  guarantees  that  can  be  withdrawn by customers. 40.2 LEGAL DISPUTES The Group is not a party of any significant legal disputes. 41. LEASES The Group as a Lessee The  major  lease  contracts o f  the Group are  l ease s  of  administrative premises  in  Prague,  Ostrava,  leases  of  branches’  premises  and  space  for  ATM’s  across  the  Czech Repub lic. The Group de termines the lease term as spe cified in the  contract (for definite period leases) or the best estimate  made by  management (for all other  contracts)  based  on  hi storical  experience  and  branch  management  strategy.  The  Group  assesses  the  lease  term  at  commencement date and reassesses it on annual basis  or if there is a si gnificant event or significant change in  circumstances or branch management strategy. The lease payments vary with the location of  premises  and are payable either in CZK or EUR. Some of the leases  are  inde xed  annually,  depending  on  development  of  inflation. The Group leases IT equipment, ATMs and advertising  spaces,  which  are  expected  to  be  c losed  wi thin  12 months. These leases are short-term and/or leases  of  low-v alue  items.  The  Group  has  elected  not  to  recognise  right-of-use  assets  and  lease  liabilities  for  these leases. 187 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Movement of Right-of-us e resulting from leases for which the Group is a lessee is pr esented below: CZK m Buildings Space under ATMs Parking place IT Hardware Total Balance at 1 January 2024 1,507 61 16 - 1,584 Depreciation charge for the year (291) (19) (4) (4) (318) Additions and modifications to right-of-use assets 165 3 2 20 190 Derecognition of right-of-use assets (2) (1) - - (3) Balance at 31 December 2024 1,379 44 14 16 1,453 CZK m Buildings Space under ATMs Parking place IT Hardware Total Balance at 1 January 2023 1,372 67 15 - 1,454 Depreciation charge for the year (295) (20) (4) - (319) Add itions and modifications to right-of-use assets 459 1) 15 7 - 481 Derecog nition of right-of-use assets (29) (1) ( 2) - (32) Balance at 31 December 2023 1,507 61 16 - 1,584 1)   The increase in 2023 is driven by the extension of the lease term of the Prague Headquarters buildi ng by 2 years. Information about lease term of particular leased assets categories are presented below: 31 Dec 2024 CZK m Right-of-use Minimum lease term (in months) Maximum lease term (in months) Buildings 1,379 31 168 Space under ATMs 44 18 112 Parking place 14 15 168 IT Hardware 1) 16 60 60 Total 1,453 1)   In 2024, th e Group has entered into a new lease contract of IT infrastru cture assets. 31 Dec 2023 CZK m Right-of-use Minimum lease term (in months) Maximum lease term (in months) Buildings 1,50 7 23 145 Space under ATMs 61 8 97 Parking place 16 15 142 IT Hardware - - - Total 1,584 188 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Minimum lease payments r econciliation: CZK m Minimum lease payments under all leases as at  31 December 2024 1,509 Recognition exemption for short-term and low- value leases 18 Effect from discounting at the incremental borrowing rate 1) (120) Liabilities from leases as at 31 December 2024 1,389 1)   The weighte d  average of  the borrowing rate used for  discounting lease  liabilities  for 2024 is 2.87%  (2023: 2.71%) for contr acts denominated in  CZK and 3.78% (2023: 3.76%) for contracts denominated in EUR. CZK m Minimum lease payments under all leases as at  31 December 2023 1,643 Recognition exemption for short-term and low- value leases 25 Effect from discounting at the incremental borrowing rate 1) (142) Liabilities from leases as at 31 December 2023 1,501 1)   The weighte d  average of  the borrowing rate used for  discounting lease  liabilities  for 2024 is 2.87%  (2023: 2.71%) for contr acts denominated in  CZK and 3.78% (2023: 3.76%) for contracts denominated in EUR. There  were  no  leases  with  residual  value  guarantees  or  leases  not  yet  commenced  to  which  the  Group  is  committed. Some  property  leases  contain  early  termination  or  extension option exercisable by the Group up to one  year  before  the  end  of  the  non-cancellable  contract  period. Where practicable, the Group seeks to include  extension options in new leases to provide operational flexibility. The extension options  held are exercisable  only by the Group and not by the lessors. The Group  asses ses  at  lease  commencement  date  whether  it  is  reasonably  certain  to exercise  the  extensi on options.  The Group reassesses whether it is reasonably certain  to exercise the options if there is a significant event or  significant changes in circumstances within its control. A maturity analysis of lease liabilities: CZK m Total cash outflow for leases 1)  in 2024  (as at 31 December 2024) 359 Future expected cash outflows - undiscounted 1,509   out of which: less than one year 339   out of which: between one and three years 578   out of which: more than three years 592 Effec t from discounting at the incremental bo rrowing rate (120) Total lease liabilities as at 31 December 2024 1,389 1)   The figure also includes interest payment of CZK 49 million (2023: CZK 27  million). CZK m Total cash outflow for leases in 2023  (as at 31 December 2023) 325 Future expected cash outflows - undiscounted 1,643   out of which: less than one year 322   out of which: between one and three years 553   out of which: more than three years 768 Effec t from discounting at the incremental bo rrowing rate (142) Total lease liabilities as at 31 December 2023 1,501 Finance leases – the Group as a Lessor Minimum Lease Payments – Fi nan ce leases CZK m 31 Dec 2024 31 Dec 2023 No later than one year 71 172 Between one and two years 31 66 Between two and t hree years 16 33 Between three and four years 7 15 Between four and five years 5 7 Later than five years 5 10 Total minimum lease payments 135 303 Less unearned interest income (9) (14) Present value of lease receivable 126 289 Less allowances for credit losses (8) (14) Carrying value of lease receivable 118 275 The  carryi ng  value  of  lease  receivable  is  presented   under  “Loans  and  receivables  to  customers”  in  the  consolidated statement of financial position. The  Gro up  mainly  leases  machinery,  vehicles  and  equipment to SMEs or entrepreneurs with typical lease  term between 3 and 6 years. Operating leases - The Group as a Lessor Operating leases are represented by sub-lease of part  of HQ building in Prague. Minimum Lease Payments - Operating leases CZK m 31 Dec 2024 31 Dec 2023 No later than one year 25 - Between one and two years - - Between two and t hree years - - Between three and four years - - Between four and five years - - Later than five years - - Total minimum lease payments 25 - 189 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 42. TRANSACTIONS WITH RELATED PARTIES The Gr oup’s related parties in clude entities with significant influence on MONETA, associates, key management  personnel, Supervisory Board and their cl ose family members. Transactions  provided by the  Group  to related parties represent  bank services (esp. loans  and interest-bearing  deposits); expenses from transactions with related parties comprise remuneration to members of the Supervisory  Board, Management B oard and other Key Executive Managers. Transactions with related parties are carried out in the normal course of business operations and conducted under  normal market conditions. The balances at year-end are unsecured. Transactions with related parties: 2024 CZK m Related parties with significant influence on MONETA Associates Key members of the management 1) and Supervisory Board Total Statement of financial position Lo ans and receivables to customers - - 38 38 Derivative fi nancia l instruments with positiv e fair values 42 - - 42 Hedging deriva tives with positive fa ir values 294 - - 294 Due to customers 41 - 31 72 Due to banks 11 - - 11 Derivative fi nancia l instruments with negative fair values 49 - - 49 Hedging deriva tives with negative fair values 27 1 - - 271 Statement of profit or loss Inte rest and similar income 128 - - 128 Inte rest expense and similar char ges (3 5) - - (35) Fee and commission income 8 - - 8 Fee and commission expense (4) - - (4) Net income from financial operations 69 3 - 72 Operating expenses (44) 2) (21) (134) (199) Dividend income - - - - 1)    Includ es members of the Management Board and other Key Executive Managers. 2)   Comprises mainly telecommunication services.  2023 CZK m Related parties with significant influence on MONETA Associates Key members of the management 1) and Supervisory Board Total Statement of financial position Lo ans and receivables to customers - - 37 37 Derivative fi nancia l instruments with positiv e fair values 41 - - 41 Hedging deriva tives with positive fa ir values 317 - - 317 Due to customers 30 - 20 50 Due to banks 289 - - 289 Derivative fi nancia l instruments with negative fair values 47 - - 47 Hedging deriva tives with negative fair values 335 - - 335 Statement of profit or loss Inte rest and similar income 251 - - 251 Inte rest expense and similar char ges (32) - - (32) Fee and commission income 6 - - 6 Fee and commission expense (11) - - (11) Net income from financial operations (470) - - (470) Operating expenses (48) 2) (24) (124) (19 6) Dividend income - 3 - 3 1)   Includes members of the Management Board and other Key Executive Managers. 2)   Comprises mainly telecommunication services. 190 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The  line  “Op e rating  expenses” fr om  tr ansactions  with  key  members  of  the  management  and  Supervisory  Board  inc ludes  fixed  remun e ration  paid  and  variabl e  remuneration  recognised  to  members  of  the  Management  Board, Supervisory  Board  and  other Key  Executive Managers during the year. Tanemo  a.s.,  a  subsidiary  of  PPF  Group,  became  a  related party with significant  influence on  MONETA in  2021, thus transactions with entities from PPF Group are  considered as related parties transactions in 2024 and  2023. 42.1 REMUNERATION TO MEMBERS OF SUPERVISORY BOARD, MANAGEMENT BOARD AND OTHER KEY EXECUTIVE MANAGERS The  following  re mun e ration  was  paid  to  the  key  members of  the  management and Supervisory Bo ard  during the year:       CZK m 2024 2023 Short-term employee benefits, including: 101 97  Members of the Management Board and Other Key Executive  Managers 89 85  Members of the Supervisory  Board 12 12 Other long-term employee benefits, including: 33 27  Members of the Management Board and Other Key Executive  Managers 33 27 Total remuneration 134 124 This  table  shows  salaries,  compensation  and  other  benefits  that  have  been  paid  to  members  of  the  Management  Board,  Supervisory  Board,  Audit  Committee and other Key Executive Managers during  the year. It also includes long-term benefits paid during  the  year  that  were  granted  in  previous  years.  With  respect to the immaterial  effect of the time  value o f  money, liabilities resulting from long- term benefits are  not being discounted. 43. SEGMENT REPORTING The segment reporting is prepared in accordance wi th  IFRS 8 Operating segments. Operating  segments  are  reported  in  a  manner  consistent  with  reporting  to  the  Management  Board  and other Key E xe cutive Managers who are responsible  for allocating resources and ass e ssing performance of  operating segments. The  Group’s  operating  segments  are  the  following:  Commer cial, Retail, Other/Treasury. The  Commercial  segment  consists  of  deposits,  investment  loans, revolving products, financing of real  estate and other services related to transactions with  small and medium-sized enterprises, corporate clients,  finan cial  institutions,  and  public  sector  in stitutions.  Services are provide d through the branch network or  online channels. The  Ret ail  segment  focuses  on  d e posits,  loans,  revolving  products,  credit  cards,  mortgages,  building  savings  and other transactions  with retail customers.  Retail customers are co mprised of private indivi du als,  the  Group’s  employees  and  e mployees  of  Group’s  partners.  This  segment  provides  services  to  citizens  through the branch networ k or online channels. The  Other/Treasury  segment  provides  primarily  the  treasury  function.  The  focus  of  this  segment  is  o n  foreign  exchange  transactions,  interest  rate  swaps,  investment in deb t securiti e s , equity investments, other   non–interest-bearing  assets  and  other  operations  that cannot be  associated with the above-mentioned  segments. The Group has no client or econo mic group for w hich  the proceeds of realised transactions exceeded 10% of  the  income  of  the  Group  (except  the  Czech  Nati onal  Bank which is not considere d as a separate segment).  The segment reported revenues, below, represent only  revenues realised with external customers. The  Gro up  uses  transfer  pr ices  between  segments  where  treasury  income  and  expenses  are  allocated  based  on  a ctual  interest  rates  conditions.  This  allocation process aims to provide a fair representation  of  the  contribution  of  each  segment  to  the  overall  profitability of net interest income. Interest inc ome and interest expense are reported on  net basi s within the line “Net interest income” as this  indicator  is  regularly  reported  to  the  management.  Management  b oard  allocates  the  resources  among  segments on the basis of net interest income achieved by particular segment.  The Group’s income is generated within the terri tory of  the Czech Republic. 191 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m Commercial Retail Other/ Treasury Total 2024 Net interest income 3,852  5,097  (30) 8,919  Net fee and commission income 686  2,405  (31) 3,060  Dividend income - - - - Net income from financial operations 216  540  104  860  Other operating income 24  48  - 72  Total operating income 4,778 8,090 43 12,911 Net impairment of financial assets (16) (370) - (386) Total operating income after net impairment of financial assets 4,762 7,720 43 12,525 Total operating expenses (5,722) Profit for the year before tax 6,803 Taxes on income (995) Profit for the year after tax 5,808 Net value of loans and receivables to customers 92,564 182,819 - 275,383 Total customer deposits 105,784 324,022 - 429,806 CZK m Commercial Retail Other/Treasury Total 2023 Net interest income 3,138  5,449  (10) 8,577  Net fee and commission income 610  2,042  (28) 2,624  Dividend income -       -       3  3  Net income from financial operations 210  519  160  889  Other operating income 17  37  -       54  Total operating income 3,975 8,047 125 12,147 Net impairment of financial assets (160) (145) -       (305) Total operating income after net impairment of financial assets 3,815 7,902 125 11,842 Total operating expenses (5,730) Profit for the year before tax 6,112 Taxes on income (912) Profit for the year after tax 5,200 Net value of loans and receivables to customers 83,819 179,245 - 263,064 Total customer deposits 86,068 313,159 - 399,227 44. RISK MANAGEMENT The Group  aims  to  achieve competitive returns at  an  acceptable ri sk  level as part of  i ts business a ctivities.  Risk management covers the contro l of risks associated  with all business activities in the environment in which  the  Group  operates  and  ensures  that  the  risks  taken  are  in  compliance  with  regulatory  limits,  as  well  as  falling wi thin its risk appetite. When managing risks, the Group relies on three pillars: •  pe ople  (the  qualifica tions  and  ex perience  of  its  employees); •  risk governance (including well -defined information  flows,  processes,  model  governance  and  responsibilities); and •  risk  data  (including  the  us e  of  sophisticated  analytical instruments and technologies). This  combination  has  supported  the  Gro up’s  success  and the stability of its economic resul ts. The Group’s risk management processes are underpinned  by advanced analytics based on an enterprise-wide data  warehouse  and  centralised  underwriting  process.  This  allows the Group to price on a risk basis, according to its  in-house scoring and rating models. 192 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The l evel of risk is measured in ter ms of its impact on  the  value  of  assets  and/or  capital  as  well  as  on  the  profitability of the Group. To determine this, the Group  evaluates potential effects on its busines s of changes in  political, economic, market and operational conditions,  as well as changes in client s’ creditworthiness. The  Bank  provi des  centralised  risk  management  for  the  Group  whe rever  po ssible  and  practical.  It  does  this  primarily  thro ugh  outsourcing  or  by  providing  methodology guid ance to other Group members. 44.1 CAPITAL MANAGEMENT The framework used for capital management involves  monitoring and complying with the capital adequacy  limit  in  accordance  with  the  Basel  III  rules  codified  in  Regulation  (EU)  No.  575/2013  of  the  European  Parliament  and  of  the  Council  of  26  June  2013  on  prudential  requirements  for  credit  institutions  and  investment  firms  and  ame nding  Regulation  (EU)  No.  648/2012,  as  amended  (hereafter  “CRR”),  Directive  2013/36/EU  of  the  European  Parliament  and of the Council of 26 June  2013 on  access to the  activity  of  credit  institutions  and  the  prudential  supervision  of  credit  institutions  and  investment  firms,  amending  Directive  2002/87/EC  and  repealing  Directives  2006/48/EC  and  2006/49/EC,  as  amended  (hereafter  “CRD”), and Directive (EU)  2014/59 of  the  European  Parliament  and  of  th e  Council  of  15  May  2014  establishing  a  framework  for  the  recovery  and  resolution  of  credit  institutions  and  investment  firms,  as  amended  (hereafter  “BRRD”),  and  their  implementing  measures.  This  European  regulatory  framework  was  significantly  amended  in  2024  with  effecti vity  from  1  January  2025.  Furthermore,  from  a l ocal perspective, the regulatory framework is given  mainly by Banking  A ct No. 21/1992 Coll., as amended,  the CNB Decree No. 163/2014 Co ll ., as amended, and  Act No. 374/2015 Coll., on recovery and resolution in  the fi nan cial market, as amended . On a con solidated basis, the Group manages its capital  in  order  to  meet  the  regulatory  capital  adequacy  requirements  prescribed  in  the  abovementioned  regulations  and  all ow  the  Group  to  continue  its  operations on a going concern basis while maximising the return to shareholder s through the optimisation of  the Debt-to-Equity Ratio. The minimum regulatory capital requireme nt (Pillar I)  is  equal  to  8%  of  risk-weighted  assets.  Additionally,  in  2024,  the  Bank  w as  obliged  to  maintain  on  a  consolidated basis  the Pillar  II capital  requirement in  the amount of 2.3% (from 1 January 2024). The Bank  and Building Savings Bank were also obliged to maintain  a mandatory capital c onservation buffer of 2.5% and  a countercyclical capital buffer (of 2% from 1 January  2024, 1.75% from 1 April 2024 and 1.25% from 1 July  2024) that were applied for the whole Czech banking sector.  Therefore,  the  overall  minimum  regulatory  capital requirement for the Bank and Building Savings  Bank on an individual basis was 11.75% and for the Bank  on a consolidated basis 14.05% as at 31 December 2024. From 1 January 2025, the Bank is obliged to maintain the Pillar II capital requirement on a consolidated basis  in the amount  of  2%. In  addition, the  Czech National  Bank  decided to  set  the  systemic  risk  buffer  at  0.5%  effecti ve from 1 January 2025, which means the overall  minimum regulatory capital requirement for the Bank  on  a  consolidated  basis  increased  to  14.25%  from  1  January 2025. The  Group  decided  to  maintain  as  a  target  a  capital  adequacy  ratio  at  one  percentage  point  above  the  overall  regulatory  minimum  capital  requirement  both  on  an  i ndividual  and  a  consolidated  basis.  This  internal  target  is  subject  to  an  ongoing   re-assessment by the Management Board of the Bank  based  on  business  re sults,  regulatory  changes  and  development needs. According  to  the  Recovery  and  Reso lution  Act  implementing  BRRD,  banks  in  the  Czech  Republic  must comply with the Minimum Requirement for Own  Funds  and  Eligible  Liabilities  (hereafter  “MREL”).  In  2024, the Bank had to f ulfil the MREL requirement on  an individual basis  of  17.2% of its total  risk exposure  and  4.92%  (from  1  Januar y  2024)  and  5.04%  (from  26 March 2024) respectively, of its total exposure.  The  MREL requirement is appli ed for the Bank only on the  individual  level  and  no  MREL  requirement  has  been  applied for the Building Savings Bank. To  calculate  the  regulatory  capital  requirement  for  credit  risk,  both  on  an  indiv idual  and  a  conso lidated  basis,  the  Bank  and  the  Building  Savings  Bank  use  the  standardised  approach.  To  calculate  the  capital  requirement for operational risk, both on an individual  and  a  consolidated  basis,  the  Bank  and  the  Building  Savings Bank use the standardised method. The Group has calculated r egulatory capital requirements against  market risk of the Tra di ng book since 3Q 2018. In addition  to the Pillar I and to ensure a robust capital  management framework, the Group performs under the  Pillar II a calculation of internal capital requirements,  regular capital planning and stress testing. To calculate the  internal  capital  requirement,  the  Gr oup  applied  methods  similar  to  advanced  approaches  according  to regulatory the Pillar I on a probability level at least  99.9%. The  Group  creates  a  mid-term  capital  outlook  on  a  regular  basis  which  pre dicts  capital  adequacy  based  on  the  predicted  development  of  external  environment,  financial  markets  and  the  Group’s  193 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 port folio  characteris tics.  Next  to  the  base  capi tal  plan,  the  Group  assesses  the  capital  position  under  several  stress  scenarios.  These  are  usuall y  based  on  a  worsening  of  the  macroeconomic  environment  and key risks, which  are  i dentified  during the Pillar II  workshop  with  members  of  the  Bank’s  Management  Board, selected senior managers of the Bank and key  Executive representatives of subsidiari e s. The  Group’s  capital on a  consolidated  basis primar i ly  consists  of  share  capital,  share  premium  and  unallocate d pro fit from prior years that is the highest  quality Common Equity T ier 1 capital, and issued Tier 2  capital. The  Group  incorporates into  Common  Equity  Tier 1 capital periodically (subject to permissions from the CNB) portion of its quarterly  net profit lowered by  expected dividend payments. The Group met all regulatory re quirements re garding  capital adequacy on an individual and  a  consolidated  basis in 2024. Regulatory  capital  on  a  c onsolidated  basis  and  its  components: CZK m 31 Dec 2024 31 Dec 2023 Common Equity Tier 1 capital CET 1 Subscrib ed share capital 10,220 10,220 Share premium - - Sta tutory res erve and Retained earnings including eligible profi t for  the year 16,548 17,383 Reserve from revaluation of FVT OCI 1 1 Items deductible from Tier 1 capital (1,678) (1,270) Tier 2 capital Qualifying subordinated liabilities 6,557 7,249 Total Regulatory Capital 31,648 33,583 44.2 CREDIT RISK Credit risk is the risk of loss for a party resulting from the  failure  of  a  counterparty  to  me et  its  obligations  arising from the terms and conditions of the contract  under  which  the  party  became  the  creditor  of  this  counterparty.  Th e  Group  is  exposed  to  credi t  ri sk  in  particular  in  the  case  of  credits  granted,  unallowed  debits,  guarantees  provide d,  letters  of  credit  issued,  bonds p urchased, derivatives and interbank deals. The Group continues to improve its analytical processes  for  quantifying  the  impact  of  climate  change  risk  on  overall portfolio credit risk. So far, the results have not  indicated any impact on expected credi t losses. 44.2.1 Credit Risk Management Credit  risk  management  is  organised  along  the  following appr oval processes: Individually-managed  exposures  repres e nt  exposures  to  entrepreneurs and  SMEs  where  loans  and  lines  of  credit are approved based on an individual assessment  of the borrower’s creditworthiness in connection with the loan size. Portfolio-managed  exposures  include  exposures  to  natural  persons,  natural  persons  acting  as entrepreneurs, and SMEs where loans and lines of  credit are approve d using an automated credit sco ring  process. Mo rtgages, bridging loans and building savings  loans have a specific position as these form a part of  the retail exposures (usually portfolio managed) but a  number of the processes and methods used fall within  the category of individually-managed exposures. The  expo sure s  to  counterparties  on  the  financial  markets include the exposures to financial institutions  and  governments.  These  e xposures  primarily  arise  as  a  p art  of  liquidity  management  and  market  risk  management.  Transactio n s  on  financial  markets  are  performed  only  by  the  Bank  and  the  Building  Savings  Bank.  Other  companies  in  the  Group  have  only  insignificant  receivables  to  banks  in  respect  of  current  account  balances.  Th e  credit  risk  of  these  exposures is managed through limits to countries and  counterparties  approved  mainly  based  on  external  ratings. In 2024, the Bank started to clear selec te d OTC  deriv ative contrac ts with central counterparties. Individually-managed exposures (a) Internal Rating The  Group  uses  internal  statistical  and  expert  judgement-based  rating  models,  which  use  the  most  recent available qualitative and quantitative information to estimate the probability that a commercial borrower  will  default  in  the  followin g  12  months.  The  rating  calculation  is  based  on  an  assessm e nt  o f  financial,  behavioural,  quantitati ve  and  qualitative  information  about  the  customer’s  business.  The  rating  models  assign  an  ob ligor  rating  (OR)  grade  from  zero  to   twenty-one  to  borrowers  that  are  not  in  default.  Borrowers in default are given the internal rating grade  twenty-two (OR22). External ratings are also calibrate d  to the OR scale. The 23 ORs and their as sociated default  probabili ties representing the rating grade: •  OR 0 to 5: 0% to 0.07%; •  OR 6 to 10: 0.08 % to 0.39%; •  OR 11 to 15: 0.59% to 3.03%; •  OR 16 to 21: 4.55% to 35.00 %; •  OR 22: 100%. 194 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 For  the  clients  wi th  double  e ntry  book-keeping  and  yearly  turnover  above  predefined  threshold,  the  internal  statistical  rating  model  estimating  level  of  credit risk based on customer’s financials is e xtended  with  an  expert  judgement-based  qualitati ve  and  ESG  module.  The qualitative  module  considers  qualitative  criteria  suc h  as  evaluation  of  the  company  owner,  management,  market  position,  product,  supplier/ customers, chain, etc. ESG module considers the impact  of environmental, so cial and governance factors to the  credit  risk.  The  outputs  from  these  modules  modify  the  rating  derived  f rom  the  internal  statistical  rating  model. For  comm e rcial  real  estate  (“CRE”)  clients,  the  Bank  uses  an  expert  judgement-based  model  considering  project  information,  sp onsor  track  record,  risk  associated  with  the  construction  and  the  location  of  the project. The ratin g  grades assigned by the model  cover only a subset of the abovementioned OR scale. For commercial clients, the Building Savings Bank uses  the  internal  rating  model  based  on  external  rating  provided  by  CRIF  –  Czech  Credit  Bureau,  a. s.,  which  is  based  on  the  client’s  financial  and  n on-financial  information. The model output is calibrated to a subset  of the rating grades presented above. In order to ensure methodological and factual accuracy,  models  are  monitor ed  on  a  regular  basis.  Internal  rating is used inter alia for the definition of approval  authori ti e s and categorisation (see note 44.2.2). (b) Underwriting The approval pro cess is based on an individual evaluati on  of a borrower and is executed at the Bank for p roducts  of  the  Bank,  MONETA  Auto  and  MONETA  Leasing.  Exposures  of  the  Building  Savings  Bank  are  approved  by  it  provided  that  exposures  exceeding  certain  level  require prior consent of the Bank. Approval authorities  are  set  on  an  individual  basis  and  are  determined  by  combining the level of exposure, the borrower’s internal  rating, maturity, product and collateral. As  part  of  the  approval  process,  the  Group  asses ses  the  financial  situation  of  the  p rospective  borrower,  the persons econo mically related to the borrower and  the collateral being offered using internal and external  data sour ces, including credit registers. The implemented  IT solu tions support the process of  SME  c redit  approval  and  administration  f acilitating  the  preparation  of  credit  applications,  linking  the m  with  data  warehouses,  document  stora ge  and  the  subsequent  production  of  contract  documentation.  The  system  enables access  to  financial  analysis  tools  including internal ratings. (c) Monitoring and Reporting All SME clients are monitored both individually and on  a port folio basis. Reports  on  the  quality  of  the  commercial  po rtfolio  across  the  Gr oup  are  discussed  monthly  by  the  Credit  Committee  (CRCO)  and  relev ant  parts  by  the  Management Board of the Building Savings Bank. Individually-managed  exposures  above  a  certain  threshold  are  also  subject  to  at  least  a  yearly  credit  review, which follows  the  approval process similar to  new exposures. (d) Collection The  Group  manages  the  Group’s  loans  where  recoverability  of  the  exposure  is  not  reasonably  assured with the aim of achieving maximum recovery.  The  Group  en gages  affected  borrowers  with  a  view  to recovering the Group’s e xposure. This may involve  taking legal action against the borrower, restructuring  the loans, taking relevant legal steps to realise collateral, debt  sale  or  representing  the  Group  in  insolvency  proceedings.  The  Group  also  uses  the  assistance  of  external agencies in collecting their receivables. The  Bank  is  in  charge  of  the  collection  process  for  individually  managed  exposures  of  the  Group  and  decides on  collection  activities  in  MONETA  Auto  and  MONETA  Leasing.  Collection  activities  toward  third  parties are always executed by collection departments  of a particular entity. Portfolio-managed exposures (a) Scoring Instruments When  approving  and  monitoring  portfolio-managed  exposures,  internal  scoring  models  are  used.  These  statistical  models  cl assify  individual  b orrowers  into  categories  of  homo geneous  exposures  using  socio-demographic  and  behavioural  data  as  well  as  information  from  the  cr edit  bureau.  The  calculated  score for the commercial portfolio-managed exposures  is,  similarly  to  individually  managed  exposures,  mapped to the OR scale. The calculated score for retail  port folio-managed  performing  exposures  is  gro uped  into five credit rating  (CR) grades wi th  associated OR  grades  and  bands  of  probabili ti e s  of  default  in  the  following 12 months as o utlined below: •  CR1: OR 13 and better (1.3% and lower); •  CR2: OR 14–OR 15 (1.3% to 3.2%); •  CR3: OR 16–OR 17 (3.2% to 7.7%); •  CR4: OR 18–OR 19 (7.7% to 15.8%); •  CR5: OR 20–OR 22 (15.8% and greater). 195 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 In order to ensure methodological and factual accuracy,  models are m onitored on a regular basis. (b) Underwriting The approval process is based o n the use of internally  or externally devel oped scoring models  and access  to  external data sources (in  particular  credit registers).  Approval strategies  for  the  Bank  and  MONETA  Auto  are set by the Bank and for the Building Savings Bank  by the Building Savings Bank. The  Bank  underwriters  may  approve  individual  exposures  that  do  not  pass  the  automatic  approval  process.  For  auto  financing  produ cts,  more  than  50%  of  loans  are  approved  automaticall y,  the  rest  of  the  approvals  is  supplemented  with  individual  assessment. Mortgages,  bridging  loans  and  b ui lding  savings  loans  are  mostly  approved  based  on  an  individual  asses sment of the prospective borrower supported by  input  from  internally-developed  or  external  scoring  models  wi th  approval  required  from  an  authorised  underwriter from  the respective entity (the Bank  o r  the Building Savings Bank). (c) Monitoring and Reporting The Group regularly monitors segments of the portfolio  managed  exposures,  which  are  reported  monthly  to  the Credit  Committee  (CRCO) and  relevant parts  also  to the Management Board of the Building Savings Bank  and quarterly to the Supervisory Boards of the Bank’s  subsidiaries. (d) Collection The  Group  has  a  comp rehensive  collection  p rocess  which  includes  an  automated  colle ction  system.  The  Group  optimises  its  overall  recovery  capacity  and  performance by using external capabilities (collection  agencies  and  law  offices)  as  well  as  debt  sales  of   non -performing receivables usually within 24 mo nths  after the default. The  Bank  is  in  charge  of  the  collection  process  for  port folio managed exposures of the Group and decides  on  collection  activities  in  MONETA  Auto.  Collection  activities toward thir d parties are always executed by  collection departments of a particular entity. Within the collection process, the portfolio approach  is  taken  for  all  Ret ail  customers  and  Small  Business  custome rs in  the  early  collecti ons process (the Bank,  the  Building  Savings  Bank  and  MONETA  Auto)  and  for all unsecured exposures in the pre-legal and legal  collections  process  (the  Bank,  the  Building  Savings  Bank  and  MO NETA  Auto).  T he  individual  approach  is  taken  for  mortgages  and  other  secured  exp osures  in  the  pr e-leg al  and  legal  process  (the  Bank  and  the  Building Savings Bank). Counterparties in the Financial Market (a) External Rating The main tool for measuring the credit risk of countries and  counterparties  (financial  institutions  an d  governments)  with  respect  to  transactions in  financial  markets is  the  rating  se t  by  international  rating  agencies: Standard  &  Poor’s,  Moody’s  and  Fitch.  The  Group  s ets  individual  limits  for  individual  countries  and  counterparties  for  which  it  requires  a  minimum  short-term  rating  of  A-1/P-1/F1 (exceptions must be properly approved). (b) Approval Process The  Bank  decides  o n  maximum  limits  to countr ies and  counterparties  and  their  allocation  among  the  Group’s  entities. The approval of limits is based on an individual  asses sment with  approval re qui red from the Chief  Risk  Officer (CRO) or an authorised approver from the Bank.  The approval levels are determined individuall y and are  based primarily on the combination of the limit, external  rating, maturity and product. In selected cases, the prior  approval  of  the  C redit  Committee  (CRCO)  is  required.  The  Building  Savings  Bank  decides  on  its  limits  in  the  framework  approved  by  the  Bank.  Decision-making  bod y i s the Management Board, which may delegate the  approval authority to the CRO. (c) Monitoring and Reporting All  counterparties  and  countries  with  a  determined  limit  are  monitor ed  individually.  The  subject  of  the  monitoring  i s  primaril y  the  external  rating.  Remedial  measures (in particular a decrease/cancellation of the  limit, categorisation of receivables) are approved by an  authorised approver from the Bank. The Bank and Building Savings Bank monitor compliance  with respective limits . Any breach of limits is escalated  to the respective Senior Manager Treasury and CRO. In  addition,  breaches  over  a  certain  level  are  escalate d  also to the members of the respective Asset & Liability  Committee (ALCO). 44.2.2 Categorisation of Exposures The  Group  assigns exposure s  to  individual categories  in  compliance  with  CNB  Decree  No.  163/2014  Coll.  The  categorisation  is  used  mainly  for  regulatory  reporting  and  calculation  of  loan  loss  allowances.  The categorisation is as follows: •  exposures without  borrower  default are  classified  as performing; 196 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 •  exposures  where  th e  borrower  has  defaulted  are  classi fied as non- performing. A  default  of  a  borrower  i s  recognised  if,  given  the  borrower’s  financial  and  economic  situation,  full  repayment  of  exposures  toward  suc h  a  b orrower  is  unlikely. This definition is in line with the definition o f  default according to EBA guidelines on the application  of  the  definition  of  default  un der  Article  178  of  Regulation  (EU) No.  575/2013  (EBA/GL/2016/07).  The  Group consid e rs a borrower to be in default mainly if: •  the  material  p art  of  principal,  interest  or  fees  of  borrower’s exposure is more than 90 days past due; •  any  material  exposure  was  re struc tured  or  categorised  as  non-performing  forborne  in  past  12 months due to a deterioration in the borrower ’s  financial situation; •  the borrower’s internal rating is OR 2 2; •  a competent court has issued a decision on settling  the  borrower’s  bankruptcy  via  a  discharge  from  debt s or reorganisation; •  a borrower is subject to b ankruptcy or settlement  proceedings. 44.2.3 Collateral Assessment The  Group  determines  the  nature  and  extent  of  collateral  that  is  required  either  by  individually  asses si ng  a  prospec tive  borrower’s  creditworthiness  or  as  an  integral  part  of  the  given  cre dit  product.  The Group considers the following types of collateral  acceptable for  mitigating  the cre dit risk  on a  loan  or  line of credit: •  cash/depos its; •  securities; •  account receivables; •  bank guarantees; •  guarantee of a r e liable third party; •  insurance; •  real estate properties; and •  movab le  assets  (machinery,  equipment,  breeding  stock). For  mortgages,  bridgin g  loans  and  building  savings  loans (if secured) primarily real estate collateral is used,  for  Auto  loans  an d  financial  leases  mainly  movable  assets are used as collateral, for commercial loans all  types of collateral may be used. Retail consumer loans,  credit cards and overdrafts are unsecured. To  determine  the  realisable  value  of  a  collateral,  the  Group  uses  inter nal  and  external  expert  appraisals.  Internal appraisals  are processed by the AML & Collateral  Management d e partment of the  Bank’s Risk Management  Division, which is a department operating independently  of the  Group’s sales  and  und e rwriting  departments.  The  ultimate  realisable  value  of  the  collateral  is  then  set  by  applying collateral acceptance ratios reflecting the Group’s  ability to realise the collateral in case of default. Maximum  values of c ollateral acceptance ratios are approved by  the  Credit Committee (CRCO). In  determining the  realisable value, MONETA  Leasing  uses  a  discount on  the  acquisition  cost derived  fro m  model  depreciation  curves  (describing  the  relation  between  fair  value  as  a  percentage  of  acquisition  cost  and  time)  for  individual  asset  class es.  Curves  are  reassessed  regularly  and  app roved  by  the  Credit  Committee (CRCO). Vehicles securing MONETA Auto car financing exposures  are  valuated  acc ording  to  either  the  p urchase  price  (new cars) or the market prices derived from external  sources (used cars, new cars). For reporting purposes,  these exposures are treated as unsecured. 44.2.4 Allowances Calculation Allowances  for credit  losses  are determined  using an  expected c redit loss approach as required under IFRS 9. The  measurement  of  expected  credi t  losses  and  the  assessment  of  significant  increases  in  credit  risk  considers information about  past events  and  current  conditions  as  well  as  reasonable  and  supportable  forec asts  of  future  events  an d  economic  conditions.  The  estimation  and  application  of  forward-looking  information requires significant judgement. To  calculate  allowances,  the  portfolio  is  divided  into  three  Stages  and  POCI  (Purchased  or  Originated  as  Credit  Impaired).  The  portfolio  is  further  segmented  into commerc ial and retail exposures by product. POCI  includes  exposures  of  the  Acquired  entities  whic h  were  non-performing  at  the  tim e  of  acquisition  as  well as exposures originated as credit impaired. These  represent  modified  f inancial  assets  wher e  material  concessions  were  granted  to  obligors  in  default.  Exposures which do not qualify for POCI are assigned to  Stage 1, Stage 2 or Stage 3. Non-performing exposures  belong to Stage 3. Performing exposures are assigned to  Stage 2 when  a significant increase in credit risk (SICR)  occur red compared to their origination. Exposures that  are not assigned to Stage 3 or 2 belong to Stage 1. The Gro up considers mainly  the following situations as  SICR: •  customer’s days past due are higher than 30; or •  qualitative  cr iteria  including  behavioural  risk  indicators suggest deterioration in credit risk; or •  absolute  remaining  lifetime  probability  of  de fault  (PD) at reporting date is higher than the specified  threshold  and  any  of  the  following  conditions  is  met: 1.   the  r e lative  change  of  the  absolute  and  annualised  remaining  lifetime  PD  at  reporting  197 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 compared  to  ori gi nation  is  higher  than  the  specified relative threshold; 2.   the absolute increase of th e absolute remaining  lifetime PD at reporting compared to originatio n  is higher than the specified absolute threshold.  The thresholds are set by the Group. The Group estimates a 12-month expected credit loss  (ECL)  for  Stage  1  exposures  and  lifetim e  expected  credit  loss  fo r  Stage  2,  Stage  3  an d  POCI.  The  Group  also  uses  multipl e  macroeconomic  forecasts  for  estimation  of  future  losses,  thus  the  future  development of macroeconomic variables is reflected  in  risk  parameters.  The  sensitivity  of  th e  ECL  model  is  differentiated  across  the  portfolio  s egments  with  a  sufficient  level  of  h omogeneity  in  relation  to  th e  underlying  credit  risk.  The  main  factors  influencing  the  level  of  ECL  are  unemployment  rate  and  rate  of  GDP  growth.  The  Group  uses  three  ma croeconomic  scenarios  derived  from  the  base  macroeconomic  trajectory with assigned probabilities: optimistic (25%),  base (50%) and adverse (25%). The  calculation  of  allowances  is  based  on  statistical  models. These models are u sed for th e calculation of  the probability of default (PD), loss given default (LGD),  exposure at default (EAD) and the cure rate (CR). Loan loss allowances for some non-performing commercial  individually  managed  ex posures  ar e  set  individually  based on expected discounted cash flows. In situations  where  the  statistical  models used  for  the  calculation  of  allowances  do  not  sufficiently  capture  the   forward-looking  ri sks  at  the  ECL  level,  management  overlays  are  applied.  Management  overlays  are  descr i bed in detail below. PD and CR calculation PD  and  CR  are  c alculated  based  on  the  transition  matrices  model.  Transition  matrices  track  migration  between rating grades, d efaulted and cured s tatus. They  provide  an  intuitive  and  comprehensive  overview  of  port folio movements acro ss time. From these matr ices  through-the-cycle  (TTC)  matrices  are  created  for  each  segment that are i ndependent of the economy’s position  within  the  macro economic  cycle.  PIT  (point-in-time)  matrices  for  each  segment  and  month  are  created  by  conditioning  the  TTC  matrices  with  an  adjustment  for  the current and expected state of the macroeconomy.  PD and CR are then derived from PIT matrices. LGD calculation For  the  majority  of  exposures  without  collateral  and  for an unsec ured part of th e collateralised exposures,  models  reflecting  histori cal  recoveries  discounted  by  the original  e ffective interest rate  are  used to derive  LGD parameters. LGD for the collateralise d part of the  exposure  is  based  on  forward-looking  expectations  regarding  the  future  collateral  value  bas ed  on  macroeconomic scenarios. EAD calculation The exposure at default is an estimate of the exposure  at a future default date, taking into account expected  changes  in  the  exposure  after  the  reporting  date,  including repaym e nts of prin cipal and interest, whether  scheduled  by  a  contract  or  otherwise,  expected  drawdowns  on  committed  facilities,  and  accrued  interest from missed payments. There  is  a  provision  created  for  undrawn  l oan  commitments by using  estimate  of utilisation in  case  of default that determines the amount of loan drawn. Impact of Macroeconomic Environment Deterioration on Allowance Calculation To  reflect  the  implications  of  the  macroeconomic  environment  evolutio n,  the  Group  continuously  monitored the economic outlooks of the CNB and the  Ministry  of  Finance  of  the Czech Republic  and  based  on  these  outlooks,  macroeconomic  forecasts  for  the  estimation of future losses from financial assets were  formulated. The latest update of the forward-looking  macroeconomic scenarios took place in August 2024. In  2024,  the  mac roeconomic  situatio n  related  to  an  environment  of  high inflation and  high  interest rates  has  partially  normalised  relative  to  2023.  For  this  reason,  the  Group  continued  to  maintain,  ba cktest  and  review  the  framework  of  management  overlays  to  compensate  for  the  lack  of  sensitivity  of  the  IFRS  9 model to the high-interest rate environment. These  reviews resulted in partial releases of the management  overlay  amounts  reflecting  the  relative  improvement  of the macroeconomic environment. In  May  2024,  the  Group  decided  to  dissolve  the  management overlay in the amount of CZK 80 million  addressin g the increased level of expected credit losses  associated  with  exposures  secured  by  the  COVID-19  guarantee expiring within 12 consequent months. The  dissolution was  motivated  by the  fact that the  initial  assumptions had no t mater ialised. Management overlay – Pool-Managed Exposures The  pur pose  o f  this  management  overlay  was  to  account  for  the  impact  of  the  high-interest  rate  and  high-inflation environment on expected credit losses.  Throughout 2024,  th e  Group  continuously  monitored  and  updated  the  existing  management  overlay  for  the  portfolio  of  performing  mortgages,  consumer  loans and small business loans. These regular reviews  included also backtest of overlay assumptions. 198 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 As a part of these reviews, an evaluation of application  and activation conditions was performed. Application  conditions  describe  a  macro economic  environm e nt  where  a  lack  of  IFRS  9  mod e l  sensitivity  can  be  assumed due to the specificity of the enviro nment of  high  inflation  and  high  interest  rates.  Meeting  these  conditions is a pre-requisite to the application of the  management  overlay.  Deterioration  of  the  po rtfolio  credit  quality in  association with  the  environment  of  high inflation and high interest rates is evaluated based  on  activation  conditions.  In  case  these  conditions  are  met,  a  dec rease  in  the  overlay  amount  can  be  considered  to  offset  the  credit  loss  materialisation.  Evaluation  of  app lication  and  activation  conditions is  discus sed  by  the  Credit  Committee  (CRCO)  as  a  part  of  the  regul ar  quarterly  report.  In  case  of  activation  conditions violation or in case the activation conditions  are met, the CRCO  decides about  the  release plan of  the  overlay  amount  based  on  the  evaluation  of  the  current  macr oeconomic  situati on  and  the  forward- looking outlook.  The  amount  o f  the  management  overlay  was  determined  based  on  the  identification  of  the  exposures  exposed  to  the  potential  credit  loss  materialisation  in  connection  with  the  high-inflatio n  and  high-interest  rates  environment.  The  potentially  vulnerable exposures were  identified according to the  available  information  about  the  inc ome/revenue  of  client s accounting for increased c osts associated with  the high inflation and interest rate level. The amount  of the mana gement overlay was derived as the amount  of loan loss allowances required to offset the assumed  share  of  these  potentially  vulnerable  exposures  defaulting.  T he  assumpti on  of  the  d efault  rate  applied  to  potentially  vulnerable  balances  was  kept  at  15%.  Additionally,  since  the  activation  conditions  indicatin g  the  materialisation of  the  credit risk in the  commerc ial  pool  managed  segment  were  triggered,  the proportionate amount of the management overlay  was  deducted  from  the  final  management  overlay  amount. As a result, the management overlay amount  decreased to CZK 338 million as at 31 December 2024 compared to CZK 490 million as at 31 December 2023. The  sensitivity  of  the  management  overlay  amount  to  the  change  of  the  assumed  defaul t  rate  by  1%  (increase from 15% to 16%) stood at CZK 52 million as  at 31 Dece mber 2024. Management overlay – Commercial Individually Managed Exposures The  pur pose  o f  this  management  overlay  was  to  account    for  the  risk s  associated  with  the  imp act  of  the high-interest rate environment on expected credit  losses. Throughout 2024,  th e  Group  continuously  monitored  and  updated  the  existing  management  overlay  for  the  portfolio  of  performing  commercial  individually  managed ex posures of th e Bank and MONETA Leasing.  These regular reviews included also back test of overlay  assumptions . As a part of these reviews, an evaluation of application  and activation conditions was performed. Application  conditions  describe  a  macro economic  environm e nt  where  a  lack  of  IFRS  9  mod e l  sensitivity  can  be  assumed due to the specificity of the enviro nment of  high  inflation  and  high  interest  rates.  Meeting  these  conditions is a pre-requisite to the application of the  management  overlay.  Deterioration  of  the  po rtfolio  credit  quality in  association with  the  environment  of  high inflation and high interest rates is evaluated based  on  activation  conditions.  In  case  these  conditions  are  met,  a  dec rease  in  the  overlay  amount  can  be  considered  to  offset  the  credit  loss  materialisation.  Evaluation  of  app lication  and  activation  conditions is  discus sed  by  the  Credit  Committee  (CRCO)  as  a  part  of  the  regul ar  quarterly  report.  In  case  of  activation  conditions violation or in case the activation conditions  are met, the CRCO  decides about  the  release plan of  the  overlay  amount  based  on  the  evaluation  of  the  current  macr oeconomic  situati on  and  the  forward- looking outlook. The  amount  o f  the  management  overlay  was  determined  based  on  the  identification  of  the  exposures  exposed  to  the  potential  credit  loss  materialisation  in  connection  with  the  high-interest  rate  environment.  The  potentially  vulnerable  exposures  were  identified  assuming  that  clients  with  high levels of a debt/EBITDA ratio are more prone to  the  high-interest  rate environment  if  their  CZK loans  are with a floating rate or with recent or upcoming re- fixation to a much higher  i nterest rate. The amount of  the  management  overlay  was derived  as  the  amount  of loan loss allowances required to offset the assumed  share  of  these  potentially  vulnerable  exposures  defaulting. The assumpti on of the default rate applied  to  potentially  vulnerable   balances  was  kept  at  15%.  Additionally, since the activation conditions indicating  the materialisation of the credit risk in the commercial  individually  managed  se gment  were  triggered,  the  proportionate amount of the management overlay was  deducted from the final management overlay amount. As a result, the management overlay amount decr eased  to CZK 56 million as at 31 December 2024 compared to  CZK 83 million as at 31 Dece mber 2023. The  sensitivity  of  the  management  overlay  amount  to  the  change  of  the  assumed  defaul t  rate  by  1%  (increase from 15% to 16%) stood at CZ K 4 million as at  31 Dece mber 2024. 199 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Write-off principles Write-off is applied when one of the be low criteria is  met: •  Zero  or  negligible  cash  flow  is  expected  to  be  received; •  Collection  process  has  been  cancelled  and  as  a  consequence the Group does not expect any cash flow  (e.g.  collection  cost  would  be  higher  than  expected recovery); •  Finished insolvency pr ocedure; •  Inheritance  proceedings  ended  with out  a  legal  successor  (where  the  receivable  was  part  of  the  inheritance); •  Fraudulent lo an; •  Stopped execution of the receivable; •  Liquidation of the debtor (legal person). Rebuttable presumption “zero or negligible cash flow is expected to be received” is driven by defined term after  default, where the term is defined separately for each product. Presumption may be rebutted e.g. if recovery is expected to be received or there is still collateral that may be sold  and it s value is not zero or negligible. The  following  table shows  reconciliations from the  opening  to  the  closing  balance of  loans  and  receivables  to  custome rs at gross carrying amount: CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2024 160,796 18,697 2,797 54 182,344 Originations 23,438 1,230 31 - 24,699 Transfer to (out) Stage 1 9,114 (9,014) (100) - - Transfer to (out) Stage 2 (13,713) 14,345 (632) - - Transfer to (out) Stage 3 (838) (1,200) 2,038 - - Repayments and other movements (15,821) (4,005) (962) 5 (20,783) Write-offs - - (766) - (766) Balance 31 December 2024 162,976 20,053 2,406 59 185,494 Commercial Balance 1 January 2024 79,990 4,373 1,040 (1) 85,402 Originations 19,454 198 94 - 19,746 Transfer to (out) Stage 1 1,774 (1,746) (28) - - Transfer to (out) Stage 2 (3,058) 3,163 (105) - - Transfer to (out) Stage 3 (422) (354) 776 - - Repayments and other movements (9,139) (1,444) (410) 1 (10,992) Write-offs - - (215) - (215) Balance 31 December 2024 88,599 4,190 1,152 - 93,941 Total Balance 31 December 2024 251,575 24,243 3,558 59 279,435 200 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2023 171,656 14,933 2,827 65 189,481 Originations 14,908 945 30 - 15,883 Transfer to (out) Stage 1 7,782 (7,654) (128) - - Transfer to (out) Stage 2 (13,648) 14,250 (602) - - Transfer to (out) Stage 3 (1,012) (1,146) 2,158 - - Repayments and other movements (18,890) (2,631) (944) (10) (22,475) Write-offs - - (544) (1) (545) Balance 31 December 2023 160,796 18,697 2,797 54 182,344 Commercial Balance 1 January 2023 79,998 3,444 937 - 84,379 Originations 16,822 252 78 - 17,152 Transfer to (out) Stage 1 1,326 (1,283) (43) - - Transfer to (out) Stage 2 (4,795) 4,882 (87) - - Transfer to (out) Stage 3 (370) (509) 879 - - Repayments and other movements (12,991) (2,413) (542) (1) (15,947) Write-offs - - (182) - (182) Balance 31 December 2023 79,990 4,373 1,040 (1) 85,402 Total Balance 31 December 2023 240,786 23,070 3,837 53 267,746 The  following table shows  reconciliations  from  the  ope ning to  the  closing balance  of  allowanc e s  to  loan s  and  receiv ables to customers: CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2024 514 1,304 1,306 (25) 3,099 Originations 348 111 23 - 482 Derecognition and maturities (111) (209) (214) 4 (530) Transfer to (out) Stage 1 429 (393) (36) - - Transfer to (out) Stage 2 (131) 395 (264) - - Transfer to (out) Stage 3 (15) (339) 354 - - Remeasurements, changes in models and methods (552) 367 548 5 368 Use of allowances (writ e-offs) - - (744) - (744)   out of which: debt sales - - (601) - (601) Foreign exchange adjustments - - - - - Balance 31 December 2024 482 1,236 973 (16) 2,675 Commercial Balance 1 January 2024 626 427 535 (5) 1,583 Originations 470 31 33 - 534 Derecognition and maturities (51) (27) (80) - (158) Transfer to (out) Stage 1 166 (150) (16) - - Transfer to (out) Stage 2 (39) 93 (54) - - Transfer to (out) Stage 3 (10) (115 ) 125 - - Remeasurements, changes in models and methods (641) 164 99 1 (377) Use of allowances (writ e-offs) - - (207) - (207)   out of which: debt sales - - (160) - (160) Foreign exchange adjustments 2 - - - 2 Balance 31 December 2024 523 423 435 (4) 1,377 Total Balance 31 December 2024 1) 1,005 1,659 1,408 (20) 4,052 1)   The Group did not recognise any allowances to Loa ns and receivables to banks during 2024 and 2023 , as such exposures are short-term only and impact is  immaterial. 201 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2023 747 1,323 1,464 (24) 3,510 Originations 245 95 19 (2) 357 Derecognition and maturities (117) (143) (303) 5 (558) Transfer to (out) Stage 1 626 (570) (56) - - Transfer to (out) Stage 2 (143) 433 (290) - - Transfer to (out) Stage 3 (19) (357) 376 - - Remeasurements, changes in models and methods (825) 523 627 (3) 322 Use of allowances (writ e-offs) - - (531) (1) (532)   out of which: debt sales - - (436) (1) (437) Foreign exchange adjustments - - - - - Balance 31 December 2023 514 1,304 1,306 (25) 3,099 Commercial Balance 1 January 2023 699 347 557 (5) 1,598 Originations 404 42 27 - 473 Derecognition and maturities (34) (36) (131) - (201) Transfer to (out) Stage 1 165 (142) (23) - - Transfer to (out) Stage 2 (65) 112 (47) - - Transfer to (out) Stage 3 (10) (157) 167 - - Remeasurements, changes in models and methods (538) 261 163 - (114) Use of allowances (writ e-offs) - - (1 78) - (178)   out of which: debt sales - - (122) - (122) Foreign exchange adjustments 5 - - - 5 Balance 31 December 2023 626 427 535 (5) 1,583 Total Balance 31 December 2023 1) 1,140 1,731 1,841 (30) 4,682 1)   The Group did not recognise any allowances to Loa ns and receivables to banks during 2024 and 2023 , as such exposures are short-term only and impact is  immaterial. There  have  bee n  no  material  movements  in  allowances  to  other  finan cial  assets  (such  as  debt  securities  at  amortised cost or operating receivables) for the years 2024 and 2023 than those disclosed above. 202 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 44.2.5 Credit Concentration Risk As part of managing credit risk, the Group reg ularly monitors and actively manages the credit concentration risk  of the Group through the limits to countries, counterparties, collateral provi ders and economic sectors. Regional  concentr ation is not relevant as most income is generated within the territory of the Czech Republic. The main collateral providers (via guarantees) are Náro dní rozvojová banka, a.s., the European Inves tment Fund  and Exportní garanční a pojišťovací společnost, a.s. (a) The exposures to top 10 groups of customers CZK m 31 Dec 2024 31 Dec 2023 Top 10 exposures 1) 15,906 13,986 1)   Exposure includes gr oss loans and receivables, unused commitments including credit lines, guarantees and letters of credit. (b) The structure of the Group’s commercial credit portfolio by economic sectors 31 Dec 2024 31 Dec 2023 Sector CZK m 1) % CZK m 1) % 1 Agriculture 23 ,324 25% 22 ,420 26% 2 Mining 17 0% 16 0% 3 Food industry 1,408 1% 1,207 1% 4 Textile industry 280 0% 223 0% 5 Wood processing industry 616 1% 549 1% 6 Chemical industry 1,144 1% 1,107 1% 7 Metal processing industry 3,487 4% 3,085 4% 8 Electric and opt ical equipment 142 0% 188 0% 9 Manufacturing of equipment, including transportation 1,415 2% 1,208 1% 10 Construction industry and construction modifications 7,127 8% 6,022 7% 11 Wholesale 5,344 6% 4,622 5% 12 Retail sale 4,650 5% 4,648 5% 13 Transport and telecommunication 2,320 2% 2,326 3% 14 Finance 1,503 2% 763 1% 15 Services 17,226 18% 14,051 16% 16 Public sector 388 0% 338 0% 17 Health industry 1,013 1% 1,001 1% 18 Power sec tor 3,427 4% 3,429 4% 19 Real estate activities 19,106 20% 18,193 21% Total 93,937 100% 85,396 100% 1)   The  amounts repre sent  the r elevant gross  loans  and receivables  to c usto mers. Exposures  of unallow ed debits which  are fully pr ovided by allowances are  excluded. 203 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (c) Maximum credit risk exposure 31 Dec 2024 CZK m Statement of financial position Off-balance sheet Total credit risk exposure Available collateral 1) Cash and cash balances at the central bank 13,541 - 13,541 - Derivative financial instruments 596 - 596 621 Investment securities measured at FVTPL 66 - 66 -   Equity investments 25 - 25 -   Deb t investments 41 - 41 - Investment securities measured at FVTOCI 1 - 1 -   Equity investments 1 - 1 - Investment securities measured at amortised cost 116,597 - 116,597 -   Government and corporate bonds 116,597 - 116,597 - Hedging derivatives with positive fair values 2,314 - 2,314 -   Interest rate swaps 2,314 - 2,314 - Change in fair value of items hedged on portfolio basis 200 - 200 - Loans and receivables to banks 79,206 - 79,206 73,856   Current accounts at banks 385 - 385 -   Overnight deposits 937 - 937 -   Receivables arising from reverse repurchase agreements 75,368 - 75,368 73,856   Cash collaterals granted 2,513 - 2,513 -   Other 3 - 3 - Loans and receivables to customers 275,383 24,695 300,078 173,495   Consumer authorised overdrafts and credit cards 2,291 4,193 6,484 -   Consumer loans 47,220 27 47,247 2,486   Mortgages 130,610 2,606 133,216 125,887   Commercial loans 82,663 17,475 100,138 44,14 2   Auto & Equipment Financi al Lease 118 - 118 98     Commercial 118 - 118 98   Retail - - - -   Auto & Equipment Loans 12,481 394 12,875 882     Commercial 9,783 394 10,177 882   Retail 2,698 - 2,698 - Issued guarantees and credit limits on guarantees - 2,573 2,573 374 Issued letter of credit - 8 8 - Remaining assets 7,078 - 7,078 - 1)   Available collateral represents realisable value of collateral relevant for each loan exposure. The realisable value of collateral is capped up to the Total exposure  presented in the statement of financial position on a loan -by-loan basis f or the purpose of the presentation in these breakdowns. 204 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Statement of financial position Off-balance sheet Total credit risk exposure Available collateral 1) Cash and cash balances at the central bank 10,871 - 10,871 - Derivative financial instruments 544 - 544 829 Investment securities measured at FVTPL 55 - 55 -   Equity investments 25 - 25 -   Deb t investments 30 - 30 - Investment securities measured at FVTOCI 1 - 1 -   Equity investments 1 - 1 - Investment securities measured at amortised cost 104,297 - 104,297 -   Government and corporate bonds 104,297 - 104,297 - Hedging derivatives with positive fair values 2,701 - 2,701 -   Interest rate swaps 2,701 - 2,701 - Change in fair value of items hedged on portfolio basis 122 - 122 - Loans and receivables to banks 69,632 - 69,632 65,422   Current accounts at banks 260 - 260 -   Overnight deposits 392 - 392 -   Receivables arising from reverse repurchase agreements 66,740 - 66, 740 65,422   Cash collaterals granted 2,238 - 2,238 -   Other 2 - 2 - Loans and receivables to customers 263,064 23,903 286,967 170,066   Consumer authorised overdrafts and credit cards 2,270 4,223 6,493 -   Consumer loans 46,558 149 46,707 2,726   Mortgages 127,946 2,249 130,195 126,274   Commercial loans 73,898 16 ,912 90,810 39,315   Auto & Equipment Financi al Lease 276 - 276 240     Commercial 276 - 276 240   Retail - - - -   Auto & Equipment Loans 12,116 370 12,486 1,511     Commercial 9,64 5 370 10,015 1,511   Retail 2,471 - 2,471 - Issued guarantees and credit limits on guarantees - 2,236 2,236 415 Issued letter of credit - 5 5 - Remaining assets 6,897 - 6,897 - 1)   Available collateral represents realisable value of collateral relevant for each loan exposure. The realisable value of collateral is capped up to the Total exposure  presented in the statement of financial position on a loan -by-loan basis f or the purpose of the presentation in these breakdowns. 205 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (d) Quantitative information about available collateral for impaired financial assets (Stage 3 and non-performing POCI) 2024 2023 CZK m Retail Commercial Total Retail Commercial Total LTV 1)  lower than 50% 272 36 308 282 36 318 LTV 1)  51–70% 352 68 420 353 36 389 LTV 1)  more than 70% 405 253 658 483 257 740 Total 1,029 357 1,386 1,118 329 1,447 1)   The LTV (Loan to Value) rep resents ratio of gross carrying value of loan to fair va lue of collateral available at the reporting date. 44.2.6 Credit Portfolio and its Quality (a) Break down of allowances and provisions according to loan type and stages The  following  table  comprises  information  about  allowances  to  Loans  and  receivables  to  cus tomers  and  provisions to off-balanc e sheet items according to type of loan/off-bal ance sheet position and r e l ate d stage: 31 Dec 2024 Gross carrying amount Allowance/Provision CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Net book value Retail loans 162,976 20,053 2,406 59 185,494 (482) (1,236) (973) 16 (2,675) 182,819 Consumer Loans 39,985 7,767 1,314 1 49,067 (304) (880) (675) 12 (1,847) 47,220 Mortga ges 118,624 11,525 972 58 131,179 (86) (261) (22 6) 4 (569) 130,610 Credit Cards & Ov erdrafts 1,980 401 68 - 2,449 (60) (57) (41) - (158) 2, 291 Auto Loans 2,385 360 47 - 2,792 (30) (38) (26) - (94) 2,698 Other 2 - 5 - 7 (2) - (5) - (7) - Commercial loans 88,599 4,190 1,152 - 93,941 (523) (423) (435) 4 (1,377) 92,564 Investment Loans 49,005 1,071 186 - 50,262 (153) (82) (59) 4 (290) 49,972 Working Capital 15,801 821 74 - 16,696 (80) (92) (30) - (202) 16,494 Auto & Equipment Loans 8,353 539 153 - 9,045 (72) (50) (72) - (194) 8,851 Unsecured Instalment  Lo ans and Overdraft 14,591 1,688 600 - 16,879 (216) (198) (268) - (682) 16,197 Inventory Financing  and Other 849 71 139 - 1,059 (2) (1) (6) - (9) 1,050 Total loans 251,575 24,243 3,558 59 279,435 (1,005) (1,659) (1,408) 20 (4,052) 275,383 Debt instruments  measured at amort ised costs 116,618 - - - 116,618 (2 1) - - - (21) 116,597 Total loans and securities 368,193 24,243 3,558 59 396,053 (1,026) (1,659) (1,408) 20 (4,073) 391,980 Financial guarantees 2,328 252 1 - 2,581 (10) (3) - - (13) 2,568 Lo an commitments - Retail 6,539 271 16 - 6,826 (36) (10) - - (46) 6,780 Lo an commitments - Commerc ial 17,377 478 14 - 17,869 (38) (7) - - (45) 17,824 Total off-balance sheet items 26,244 1,001 31 - 27,276 (84) (20) - - (104) 27,172 Previously  written-off  receivables  amount  to  CZK  181  million  as  at  31  Decemb e r  2024  (31  December  2023:  CZK 184 million). 206 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 Gross carrying amount Allowance/Provision CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Net book value Retail loans 160,796 18,697 2,797 54 182,344 (514) (1,304) (1,306) 25 (3,099) 179,245 Consumer Loans 39,142 7,922 1,645 (7) 48,702 (260) (900) (1,006) 22 (2,144) 46,558 Mortga ges 117,460 10,059 1, 024 61 128,604 (146) (300) (215) 3 (658) 127,946 Credit Cards & Ov erdrafts 1,981 408 81 - 2,470 (76) (69) (55) - (200) 2,270 Auto Loans 2,211 308 41 - 2,560 (30) (35) (24) - (89) 2,471 Other 2 - 6 - 8 (2) - (6) - (8) - Commercial loans 79,990 4,373 1,040 (1) 85,402 (626) (427) (535) 5 (1,583) 83,819 Investment Loans 44,091 1 ,117 157 (1) 45,364 (164) (68) (64) 5 (291) 45,073 Working Capital 14,473 960 86 - 15,519 (104) (48) (41) - (193) 15,326 Auto & Equipment Loans 8,381 547 141 - 9,069 (83) (50) (71) - (204) 8,865 Unsecured Instalment  Lo ans and Overdraft 12,284 1,557 539 - 14,380 (273) (259) (349) - (881) 13,499 Inventory Financing  and Other 761 192 117 - 1,070 (2) (2) (10) - (14) 1,056 Total loans 240,786 23,070 3,837 53 267,746 (1,140) (1,731) (1,841) 30 (4,682) 263,064 Debt instruments  measured at amort ised costs 104,320 - - - 104,320 (23) - - - (23) 104,297 Total loans and securities 345,106 23,070 3,837 53 372,066 (1,163) (1,731) (1,841) 30 (4,705) 367,361 Financial guarantees 1,593 647 1 - 2,241 (8) (6) - - (14) 2,227 Lo an commitments - Retail 6,285 287 49 - 6,621 (41) (12) - - (53) 6,568 Lo an commitments - Commerc ial 16,881 361 40 - 17,282 (40 ) (8) - - (48) 17,234 Total off-balance sheet items 24,759 1,295 90 - 26,144 (89) (26) - - (115) 26,029 207 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (b) Loans and receivables to banks and customers according to the categorisation according to internal rating grade and stages The  following  table  s ets  out  information  abo ut  credit  quality  o f  financial  assets  measured  at  amortised  cost  classified according to the internal credit rating grade and stages: 31 Dec 2024 31 Dec 2023 CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Loans and receivables to customers at amortised costs CR 1 226,903 12,025 - 32 238,960 221,477 10,382 - 26 231,885 CR 2 13,705 4,045 - 12 17,762 10,957 3,922 - 6 14,885 CR 3 10,149 3,186 - 1 13,336 7,624 3,673 - 4 11 ,301 CR 4 593 2,869 - 3 3,465 465 2,763 - 4 3,232 CR 5 220 2 ,118 - 1 2,339 259 2,330 - 1 2,590 Not graded 5 - - - 5 4 - - - 4 NPL - - 3,558 10 3, 568 - - 3,837 12 3,849 Gross carrying amount 251,575 24,243 3,558 59 279,435 240,786 23,070 3,837 53 267,746 Allowance (1,005) (1,6 59) (1,408) 20 (4,052) (1,140) (1,731) (1,841) 30 (4,682) Net book value 250,570 22,584 2,150 79 275,383 239,646 21,339 1,996 83 263,064 Loans and receivables to banks at amortised cost without rating 1) Gross carrying amount 79,206 - - - 79,206 69,632 - - - 69,632 Allowance - - - - - - - - - - Net book value 79,206 - - - 79,206 69,632 - - - 69,632 Debt investment securities at amortised cost CR 1 116,618 - - - 116,618 104,320 - - - 104,320 Gross carrying amount 116,618 - - - 116,618 104,320 - - - 104,320 Allowance (21) - - - (21) (23) - - - (23) Net book value 116,597 - - - 116,597 104,297 - - - 104,297 Other receivables from operating activities without rating 1) Gross carrying amount 104 35 25 - 164 124 4 32 - 160 Allowance - - (25) - (25) - - (32) - (32) Net book value 104 35 - - 139 124 4 - - 128 Loan commitments CR 1 21,946 317 - - 22,263 21,598 293 - - 21, 891 CR 2 1,137 100 - - 1 ,237 1,001 98 - - 1,099 CR 3 826 248 - - 1,074 560 111 - - 671 CR 4 7 76 - - 83 3 136 - - 139 CR 5 - 8 - - 8 4 10 - - 14 Not graded - - - - - - - - - - NPL - - 30 - 30 - - 89 - 89 Gross carrying amount 23,916 749 30 - 24,695 23,166 648 89 - 23,903 Provision (74) (17) - - (91) (8 1) (20) - - (101 ) Net book value 23,842 732 30 - 24,604 23,085 628 89 - 23,802 208 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2024 31 Dec 2023 CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Financial guarantee contracts CR 1 2,322 228 - - 2,550 1,592 628 - - 2,220 CR 2 5 11 - - 16 1 11 - - 12 CR 3 1 7 - - 8 - 4 - - 4 CR 4 - 6 - - 6 - 4 - - 4 CR 5 - - - - - - - - - - NPL - - 1 - 1 - - 1 - 1 Gross carrying amount 2,328 252 1 - 2,581 1,593 647 1 - 2,241 Provision (10) (3) - - (13) (8) (6) - - (14) Net book value 2,318 249 1 - 2,568 1,585 641 1 - 2,227 1)   Loans and receivables to banks and other receivables from operating activities are not subject to an intern al grading system. 44.2.7 Modified Financial Assets The  following  table  provides  information  about  finan cial  asse ts  with  a  loss  allowance  at  an  amount  equal to full lifetime expected credit losses that were  modified during the ac counting period: CZK m 2024 2023 Financial assets modified during the period Amortised cost before modification 607 346 Net modification gain/loss (3) (1) Financial assets modified since initial recognition Gross carrying amount at 31 Dec  of financial assets for which loss  allowance has changed to 12-month  measurement during the period 139 61 The  modification  in  the  form  of  the  forbearance  is  reflected  in  the  categorisation  of  receivables  in  accor dance  with  the  exposures  cate gorisation  rules  (see no te 44.2.2). Forborne Receivables Forborne  receivables  are  re ceivables  for  which  the  Group  provided  the  debtor  with  relief  as  it  ass e ssed  that it would likely incur a loss if i t did not do so. For  economic or legal reasons associated with the debtor’s  finan cial  positio n,  the  Group  granted  it  r e lief  that  the Group would not o therwise have granted. Reliefs  primarily  include  reworking  the  repayment  plan,  a  decrease  in  the  interest  rate,  a  waiver  of  default  interest,  a  deferral  of  principal  or  accrued  interest  repayments.  Forb orne  receivables  do  not  include  receiv ables arising from the roll -over of a short-term  loan  for  current  assets  if  the  debtor  met  all  of  its  payment and non-payment obligations arising from the  loan contr act. The Group applies the following general principles for  forbearan ce: •  the  customer  lost  th e  ability  to  repay  the  loan  accor ding to the original loan contract; •  the cu stomer demonstrates a willingness and ability  to pay his/her debts; •  spe cific product/cus tomer criteria must be met. Forbear ance measures provided to clients t ake a form  of modification o f the existing contract or origination  of a new loan contract, where th e cus tomer’s original  credit  i s ,  by  entering  into  this  new  contract,  repaid  and  closed.  In  this  case,  a  new  (restr uctured)  loan  with  different  m onthly instalments, interest  rate and  maturity  is  then  opened .  According  to  the  rules  for  categorisation of exposure s , the new or modified loan  is treated as non-performing at leas t 12 months after  restructuring. Forborne  classificatio n  is  assign ed  also  during  the  24  month  probation  period,  which  applies  from  the  moment  when  the  client  was  upgraded  to  the  performing status. 209 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (a) All gross loans and receivables to customers with forbearance: 31 Dec 2024 CZK m Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Forborne receivables 710 722 196 3 32 19 1,682 Total 710 722 196 3 32 19 1,682 31 Dec 2023 CZK m Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Forborne receivables 1,040 1,202 264 2 47 16 2,571 Total 1,040 1,202 264 2 47 16 2,571 (b) Impaired loans out of all gross loans and receivables to customers with forbearance: 31 Dec 2024 CZK m Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Forborne receivables 352 444 144 1 21 15 977 Total 352 444 144 1 21 15 977 31 Dec 2023 CZK m Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Forborne receivables 471 564 117 - 27 12 1,191 Total 471 564 117 - 27 12 1,191 (c) Loans and receivables to customers forborne within the reporting year 2024 Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Number of incrementally  forborne receivables within the  reporting year 96 1,4 51 333 1 36 31 1,948 Balance of the incrementally  forborne gross receivables within  the reporting year measur ed at  the end of the reporting year  (CZK m) 217 307 99 1 13 10 647 2023 Mortgage loans Consumer loans Commercial loans Commercial auto and equipment financial leases Commercial auto and equipment loans Retail auto and equipment loans Total Number of incrementally  forborne receivables within the  reporting year 153 1,650 246 1 39 28 2,117 Balance of the incrementally  forborne gross receivables within  the reporting year measur ed at  the end of the reporting year  (CZK m) 296 348 65 - 19 11 739 210 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 44.3 INTEREST RATE RISK Interest  rate  risk  is  the  risk  of  a  loss  arising  from  changes  in  interest  rates  on  financial  markets.  The  Group  is  ex posed  to  interest  rate  risk  as  interest- bearing  ass ets  and  liabilities  have  different  maturity  periods or interest rate repricing periods. The Bank strives to minimise the Group’s interest rate  risk  by  setting  limits  and  keeping  positions  within  these  limits.  The  interest  rate  risk  management  activities are aimed at  reducing the risk of losses. The  Group’s  interest rate  risk management is  centralised  in the Bank. Only  certain  client  products  (FX  swap,  FX  forward,  FX spot) of the Bank are included in the Trading book;  all  other  positions  of  the  Group  are  included  in  the  Banking book. The  Group’s  interest  rate  risk  for  the  Trading  and  Banking  book  is  managed  separately.  The  interest  rate  risk  of  the  Trading  book  is  managed  by  the  requirement  to  close  each  FX  swap  and  FX  forward  transaction  on  a  back-to-back  basis.  To  monitor  and  measure  the  interest  rate  risk  of  the  Banking  book,  a  model  of  interes t  rate  sensitivity  is  used  which  serves  to  determine  the  sensitivity  of  the  Group  to  changes  in  the  market  interest  rates .  The  model  is  based on the inclusion of interest-sensitive assets and  liabilities into relevant time bands. The Group prefers  to use behavioural features of cash flows rather than  those  that  are  purely  contractual.  All  behavi oural  assumptions  are  approved  by  the  ALCO.  The  model  works with 1-month time bands up to 240 months. The  Bank  carries  out  stress  testing  of  the  Group ’s  Banking book positions in all cur rencies that account  for  more  than  5%  of  the Group’s  assets or  liabilities  (both on an individual  an d  consolidated basis) based  on  stress  scenarios  fo r  management  of  interest  rate  risk  arising  from  non -trading  activities  in  line  with  the  relevant  European  Bankin g  Authority  Guideline  EBA/GL/2018/02.  As  at  31  December  2024,  only  the  port folios  denominated  in  the  Czech  Koruna  and  Euro  exceed ed  a  5%  share  of  the  Group’s  assets/ liabilities.  The  set  of  limits  is  used  to  manage  and  monitor the impacts of all stress scenarios stipulated  in  the  Guideline.  The  results  of  stress  testing  are  presented to ALCO on a monthly basis. To manage the discrepancy between the interest sensitivity of as sets  and  liabilities ,  interest  rate  derivatives  are  us ed  in  line with the interest rate hedging strategy for hedge accounting approved by ALCO. The tables below show th e sensitivity of the Group to  changes in interest rates. CZK % change in annual net interest income 1) 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 1.55% 2.43% Impact of an interest rate  movement -200 basis points 0.05% (1.39)% 1)   The regulatory  calculation of  net interest income  was changed  in  2024,  where the cal culated impact on net interest income is measured against  Tier 1 capital i nstead of  actual  net interest  income.  For the purpose  of  co mparability, the previous period has been a djusted.  CZK Change in economic value of equity as a % of capital 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.70% 1.20% Impact of an interest rate  movement -200 basis points 0.53% 1.33% EUR % change in annual net interest income 1) 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.22% (0.19)% Impact of an interest rate  movement -200 basis points (0.22)% 0.19% 1)   The regulatory  calculation of  net interest income  was changed  in  2024,  where the cal culated impact on net interest income is measured against  Tier 1 capital i nstead of  actual  net interest  income.  For the purpose  of  co mparability, the previous period has been a djusted.  EUR Change in economic value of equity as a % of capital 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.64% (0.47)% Impact of an interest rate  movement -200 basis points (0.68)% 0.54% The percentage change in annual net interest income shows the impact of interest  rate movement s  o n  net  interest  income  on  a  12-month  horizon.  T he  change  in the economic value of equity shows the impact of  interest  rate  m ovements  on  the  difference  between  the  present  value  of  assets  and  liabilities  (i.e.  the  economic value  of  equity), so  this metric works  with  a long-term horizon. Given the mentioned dif fe rences  between the two metrics, the two kinds of impact can  have different signs and follow different trends. 211 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 The below table summarises the Group’s exposure to interest rate risk. Balances are allocated to the buckets based  on  the following parameters:  for assets, the  next repricing date  or princip al  payment  dates,  whichever occurs  earlier; for non-maturity deposits, the expected maturit y/repricing behaviour; and for term deposits, the maturity  date. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the  central bank 13,541 - - - - - 13,541 Derivative financial instruments  with positive fai r values 73 9 17 106 391 - 596 Hedging deriva tives with positive  fair values - 6 67 855 1,386 - 2,314 Change in fair value of items  hedged on portfolio basis 1 (1) 59 129 12 - 200 Investment securities - 408 3,943 35,432 76,814 67 116,66 4 Lo ans and receivables to banks 76,690 - - - - 2,516 79,206 Lo ans and receivables to  customers 29,232 16,066 54, 433 160,458 15,194 - 275,383 Remaining assets 193 - 743 13 3 6,126 7,078 Total assets 119,730 16,488 59,262 196,993 93,800 8,709 494,982 Due to banks 863 - - 2,566 - 405 3,834 Due to customers 146,686 47,565 59,360 129,744 46,451 215 430,021 Derivative financial instruments  with negative fair values 43 8 15 85 381 - 532 Hedging deriva tives with negative  fair values 51 92 274 2,195 1,647 - 4,259 Change in fair value of items  hedged on portfolio basis - - - 78 - - 78 Issued bonds - 37 1,600 9,925 - - 11,562 Subordinated liabilities 2,683 2,024 - 2,915 - - 7,622 Remaining liabilities 2,915 19 322 965 107 867 5,195 Total liabilities 153,241 49,745 61,571 148,473 48,586 1,487 463,103 Net balance sheet interest rate exposure (33,511) (33,257) (2,309) 48,520 45,214 7,222 31,879 Off-balance sheet assets 13,918 2,970 2,827 4,764 217 - 24,696 Off-balance sheet liabilities - - - - - - - Inte rest rate swaps assets 1) 23,573 104,154 7,238 12,885 4,160 - 152,010 Inte rest rate swaps liabilities 1) 4,673 11,605 15,285 71,827 48,620 - 152,010 Net off-balance sheet interest rate exposure 32,818 95,519 (5,220) (54,178) (44,243) - 24,696 Total net interest rate exposure (693) 62,262 (7,529) (5,658) 971 7,222 56,575 1)  In case of interest rate swap s, the notional amounts are used instea d of acc ounting balances. 212 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the  central bank 10,871 - - - - - 10,871 Derivative financial instruments  with positive fai r values 2 4 33 125 380 - 544 Hedging deriva tives with positive  fair values 8 14 144 995 1,540 - 2,701 Change in fair value of items  hedged on portfolio basis (2) (13) (66) 191 12 - 122 Investment securities - 299 1,424 31,213 71, 361 56 104,353 Lo ans and receivables to banks 67,392 - - - - 2,240 69,632 Lo ans and receivables to  customers 29,422 13,876 46,826 155,765 17,175 - 263,064 Remaining assets 179 - 620 4 3 6,091 6,897 Total assets 107,872 14,180 48,981 188,293 90,471 8,387 458,184 Due to banks 2,329 - 2,531 - - 563 5,423 Due to customers 148,811 18,286 68,211 114,674 49,245 270 399,497 Derivative financial instruments  with negative fair values 14 3 31 106 369 - 523 Hedging deriva tives with negative  fair values 3 2 128 2,214 2,2 01 - 4,548 Change in fair value of items  hedged on portfolio basis (2) (7) (31) 103 - - 63 Issued bonds - 37 5 3,766 - - 3,808 Subordinated liabilities 92 - 18 7,494 - - 7,604 Remaining liabilities 2,140 14 294 921 300 846 4,515 Total liabilities 153,387 18,335 71,187 129,278 52,115 1,679 425,981 Net balance sheet interest rate exposure (45,515) (4,155) (22,206) 59,015 38,356 6,708 32,203 Off-balance sheet assets 14,194 2,931 2,356 4,139 282 - 23,902 Off-balance sheet liabilities - - - - - - - Inte rest rate swaps assets 1) 15,67 0 85,827 11,020 12,81 9 2,900 - 128,236 Inte rest rate swaps liabilities 1) 6,868 9,696 11,880 55,281 44,511 - 128,236 Net off-balance sheet interest rate exposure 22,996 79,062 1,496 (38,323) (41,329) - 23,902 Total net interest rate exposure (22,519) 74,907 (20,710) 20,692 (2,973) 6,708 56,105 1)  In case of interest rate swap s, the notional amounts are used instea d of acc ounting balances. The data for th e individual time buckets except the “Unspecified” c olumn follow the interest rate gap from the  model of interest rate sensitivity. 44.4 FOREIGN EXCHANGE RISK Foreign exchange risk covers the risk of a loss due to  changes  in  exchange  rates.  The  Group  is  exposed  to  foreign  exchange  risk  primarily  due  to  the  provision  of  foreign  exchange  loan  products  to  commercial  borrowers, issuan ce of bonds denominated in foreign  currencies and foreign exchange deposits. The  management  of  the  Group’s  foreign  exchange  risk  is  centralised  in  the  Bank.  The  Bank  strives  to  minimise the foreign  exchange risk  of the Group. For  this  purpose, the  Bank  maintains a  balance  of  assets  and liabilities in foreign currencies (by using a mix of FX  spots, forwards and swaps transactions). To measure the foreign exchange risk on an individual basis, the Bank calc ul ates, on a daily basis, net currency  positions and an FX Value at Risk (maximum expected  loss per business day for the foreign currency portfolio  at the 99% confidence level). The Bank uses the limi ts  for the following metrics: •  ratio  of  the  absolute  value  of  the  net  currency  position to capital for each foreign currency; •  ratio of the absolu te value of the total net currency  position to capital; •  absolute value o f the net currency position for each  foreign curr e ncy; and •  FX VaR. 213 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 On  top  of  that,  the  foreign  exchange  risk  of  Tradi ng  book  is  managed  by  limits  (intraday  an d  end-of-day)  for open FX spot position and by requirement to close  each FX swap and FX forward trans action on a back-to- back basis. As  MONETA  Auto  and  Building  Savin gs  Bank  pr ovide  loans only in CZK and MONETA Leasing in EUR and CZK, the Bank measures on a consolidated basis only the net  currency position in EUR (monthly frequency). The  foreign  exchange  ri sk  at  MONETA  Leasing  at  an  individual  level  is  managed  primarily  by  the  funding  structure  (natural  hedging  due  to  EUR  funding)  and  MONETA Leasing regularly clo ses its open FX position  with the Bank. The t able below shows the FX VaR of the Bank. CZK ths 31 Dec 2024 Average of daily values in 2024 31 Dec 2023 Average of daily values in 2023 FX VaR 2,524 2,66 8 4,177 2,909 The foll owing table shows exposure o f the Group to foreign exchange risk: 31 Dec 2024 CZK m CZK EUR USD Other currencies Total CZK Cash and cash balances at the central bank 13,257 167 78 39 13,541 Derivative fi nancia l instruments with positiv e  fair values 145 451 - - 59 6 Investment securities 111,599 5,025 40 - 116,664 Hedging deriva tives with positive fa ir values 2,229 85 - - 2,314 Change in fair value of items he dged on po rtfolio basis 200 - - - 200 Lo ans and receivables to banks 75,371 3,514 229 92 79,206 Lo ans and receivables to customers 260,570 14,793 20 - 275,383 Remaining assets 7,052 26 - - 7,078 Total assets 470,423 24,061 367 131 494,982 Due to banks 19 3,804 11 - 3,834 Due to customers 409,674 18,791 1,452 10 4 430,021 Derivative fi nancia l instruments with negative  fair values 99 433 - - 532 Change in fair value of items he dged on po rtfolio basis 78 - - - 78 Hedging deriva tives with negative fair values 1,925 2,334 - - 4,259 Issued bonds 1,498 10,064 - - 11,562 Subordinated liabilities 7,622 - - - 7,622 Remaining liabilities 3,778 1,392 22 3 5,195 Equity 31,879 - - - 31,879 Total liabilities and Equity 456,572 36,818 1,485 107 494,982 Net exchange rate balance sheet position 13,851 (12,757) (1,118) 24 - Rec eivables from spot and derivatives 1,914 14,610 1,309 13 17,84 6 Liabilit ies from spot and derivatives 15,899 1,825 75 20 17,819 Net exchange rate off-balance sheet position (13,985) 12,785 1,234 (7) 27 Net exchange rate position (134) 28 116 17 27 214 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m CZK EUR USD Other currencies Total CZK Cash and cash balances at the central bank 10,607 162 65 37 10,871 Derivative fi nancia l instruments with positiv e fair values 113 431 - - 544 Investment securities 100,315 4,008 30 - 104,353 Hedging deriva tives with positive fa ir values 2,652 49 - - 2,701 Change in fair value of items he dged on portfolio basis 122 - - - 122 Lo ans and receivables to banks 6 6,742 2,545 325 20 69,632 Lo ans and receivables to customers 247,101 15,918 45 - 263,064 Remaining assets 6 ,916 (19) - - 6,897 Total assets 434,568 23,094 465 57 458,184 Due to banks 21 5,393 9 - 5,423 Due to customers 388,280 9,838 1,264 115 399,497 Derivative fi nancia l instruments with negative fair  values 102 421 - - 523 Change in fair value of items he dged on portfolio basis 63 - - - 63 Hedging deriva tives with negative fair values 2,100 2,448 - - 4,548 Issued bonds 1,490 2,318 - - 3,808 Subordinated liabilities 7,604 - - - 7,604 Remaining liabilities 3,575 915 20 5 4,515 Equity 32,203 - - - 32,203 Total liabilities and Equity 435,438 21,333 1,293 120 458,184 Net exchange rate balance sheet position (870) 1,761 (828) (63) - Rec eivables from spot and derivatives 2,193 1,232 1,064 71 4,560 Liabilit ies from spot and derivatives 1,412 3,076 77 - 4,565 Net exchange rate off-balance sheet position 781 (1,844) 987 71 (5) Net exchange rate position (89) (83) 159 8 (5) 44.5 LIQUIDITY RISK Liquidity  risk  represents  the  risk  of  inability  to  meet  finan cial liabilities when due or to finance increase in  assets. The  liquidity  risk  of  subsidiaries  is  managed  by  the  Bank  (providing  funding  if  ne eded).  For  liquidity  and  liquidity risk management, the banks in the Group (the  Bank and the Building Savings  Bank) created a liquidity  sub-group.  The  Czech  National  Bank  provided  to  the  banks  in  th e  liquidity  sub-group  an  exemption  from  certain liquidity requirements on indiv idual levels, and  so  in  2024,  the  Czech  National  Bank  supervised  the  Bank and the Building S avi ngs Bank as the onl y liquidity  sub-group for liquidity purposes. The  Group  has  access  to  diversified  sources  o f  finan cing, which include deposits, issued bonds, loans  taken,  as  well  as  the  Group’s  equity.  The  bond  and  money  markets  are  us ed to  further  diversify  source s  of liquidity and to deposit exc e ss cash (see chap ter 5). To manage liquidity risk, the Bank applies a system of  limits ap plied on the following metrics: •  Liquidity  p ositions  in  selected  time  buckets   (on a daily basis); •  Lo an to Deposit Ratio (on a monthly basis); •  Liquidity Coverage Ratio (on a monthly basis); •  Net Stable Funding Ratio (on a monthly basis); •  Liquidity Buffer (based on liquidity stress tests); •  Time to  wall  for  selected  scenarios  (idiosyncratic,  systemic and combined) (on a monthly basis); •  Concentration in dep osits (on a monthly basis); •  Interbank  Borrowing  to  Tot al  Assets  Ratio  (on  a  monthly basis).  The Group also monitors a chosen set of Early Warning  Indicators.  For  the  purpose  of  liquidity  management  under  extraordinary  circumstances,  the  Group  has  a  contingency  plan  containing  measures  for recovering  liquidity.  The  Bank’s  Treasury  &  ALM  department  regularly reviews the contingency plan and forwards it  to the ALCO for approval. 215 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (a) The table below summarises the remaining maturity of carrying amounts of assets, liabilities and equity according to their contractual maturity. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the central  bank 13,541 - - - - - 13,541 Derivative fi nancia l instruments with  positive fair values 73 9 17 106 391 - 596 Investment securities - 408 3,943 35,432 76,814 67 116,664 Hedging deriva tives with positive fa ir  values - 6 67 855 1,386 - 2,314 Change in fair value of items he dged  on portfolio basis 1 (1) 59 129 12 - 200 Lo ans and receivables to banks 76,690 - - - - 2,516 79,206 Lo ans and receivables to customers 1) 9,137 5,184 23,968 83,631 147, 3 40 6,123 275,383 Investments in associa tes - - - - - 3 3 Current tax assets - - 70 - - - 70 Remaining assets 193 - 673 13 3 6,123 7,005 Total Assets 99,635 5,606 28,797 120,166 225,946 14,832 494,982 Due to banks 863 - - 2,566 - 405 3,834 Due to customers 363,083 43,692 10,208 12,260 563 215 430,021 Derivative fi nancia l instruments with  negative fair values 43 8 15 85 381 - 532 Hedging deriva tives with negative fair  values 51 92 274 2,195 1,647 - 4,259 Provisions - - - - - 263 263 Current tax liabilities - - 47 - - - 47 Change in fair value of items he dged  on portfolio basis - - - 78 - - 78 Deferred tax liabilities - - - - - 469 469 Issued bonds - 37 127 3,893 7,505 - 11,562 Subordinated liabilities 92 30 - 4,909 2,591 - 7,622 Other liabilities 2,915 19 275 964 108 135 4,416 Equity - - - - - 31,879 31 ,879 Total liabilities and equity 367,047 43,878 10,946 26,950 12,795 33,366 494,982 Net liquidity position of assets and liabilities and equity 2) (267,412) (38,272) 17,851 93,216 213,151 (18,534) - Issued guarantees and credit limits on guarantees 3) 1,463 - - - - - 1,463 Loan commitments 4) 4,974 4 26 52 - - 5,056 1)   Loans  and  receivables  to  customers  presented  under  the  “Unspecified”  category  as  at  31  December  2024  of  CZK  6,123  million  (31  Decem ber  2023:  CZK 5,573 million) represent mainly the loans and receivables from Inventory Financing, loans an d receivables that are overdue more than 1 month, all owances  and deferred cost and fees that are an integral  part of the effective interest rate  and fair value adjustment resulting from the revaluation of acquired financial  assets. 2)   Net  liquidit y  position  of  assets  and  liabilities  and  equity  within  1  month  of  CZK  (267,412)  m illion  as  at  31  December  2024  (as  at  31  December  2 023  at  CZK (240,612) million) is primarily due to the fact that contractual maturity of current accounts falls with in 1 month. 3)   Contents irrevocable Issued guarantees and credit limits on guarantees. 4)   The  loan commitments  represent  irrevocable  loan  commitments only  relating  to  commercial  investment  loans,  commercial  auto &  equipment  loans  and  mort gages. Total undrawn commitments on credit cards are not included in the table above as, hi storically, average li mit usage is significantly below 100% and  this behaviour is expected to continue. 216 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the central  bank 10,871 - - - - - 10,871 Derivative fi nancia l instruments with  positive fair values 2 4 33 125 380 - 544 Investment securities - 299 1,424 31,213 71,361 56 104,353 Hedging deriva tives with positive fa ir  values 8 14 144 995 1,540 - 2,701 Change in fair value of items he dged  on portfolio basis (2) (13) (66) 191 12 - 122 Lo ans and receivables to banks 67,392 - - - - 2,240 69,632 Lo ans and receivables to customers 1) 9,301 5,442 23,551 82,447 136,750 5,573 263,064 Investments in associa tes - - - - - 3 3 Current tax assets - - 76 - - - 76 Remaining assets 179 - 544 4 3 6,088 6,818 Total Assets 87,751 5,746 25,706 114,975 210,046 13,960 458,184 Due to banks 2,329 - 2,531 - - 563 5,423 Due to customers 323,787 21,374 40,124 12,650 1, 292 270 399,497 Derivative fi nancia l instruments with  negative fair values 14 3 31 106 369 - 523 Hedging deriva tives with negative fair  values 3 2 128 2 ,214 2,201 - 4,548 Provisions - - - - - 266 266 Current tax liabilities - - 54 - - - 54 Change in fair value of items he dged  on portfolio basis (2) (7) (31) 10 3 - - 63 Deferred tax liabilities - - - - - 462 462 Issued bonds - 37 5 3,766 - - 3,808 Subordinated liabilities 92 - 18 2,913 4,581 - 7,604 Other liabilities 2,140 14 240 921 300 118 3,733 Equity - - - - - 32,203 32,203 Total liabilities and equity 328,363 21,423 43,100 22,673 8,743 33,882 458,184 Net liquidity position of assets and liabilities and equity 2) (240,612) (15,677) (17,394) 92,302 201,303 (19,922) - Issued guarantees and credit limits on guarantees 3) 1,119 - - - - - 1,119 Loan commitments 4) 3,538 4 19 183 - - 3,744 1)   Loans  and  receivables  to  customers  presented  under  the  “Unspecified”  category  as  at  31  December  2024  of  CZK  6,123  million  (31  Decem ber  2023:  CZK 5,573 million) represent mainly the loans and receivables from Inventory Financing, loans an d receivables that are overdue more than 1 month, all owances  and deferred cost and fees that are an integral  part of the effective interest rate  and fair value adjustment resulting from the revaluation of acquired financial  assets. 2)   Net  liquidit y  position  of  assets  and  liabilities  and  equity  within  1  month  of  CZK  (267,412)  m illion  as  at  31  December  2024  (as  at  31  December  2 023  at  CZK (240,612) million) is primarily due to the fact that contractual maturity of current accounts falls with in 1 month. 3)   Contents irrevocable Issued guarantees and credit limits on guarantees. 4)   The  loan commitments  represent  irrevocable  loan  commitments only  relating  to  commercial  investment  loans,  commercial  auto &  equipment  loans  and  mort gages. Total undrawn commitments on credit cards are not included in the table above as, hi storically, average li mit usage is significantly below 100% and  this behaviour is expected to continue. 217 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (b) The table below shows the remaining contractual maturity of non-derivative financial liabilities and issued financial guarantees and loan commitments held for the Group’s liquidity management purposes. The amounts include contractual non-discounted cash flows. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Due to banks 863 42 42 2,666 - 405 4,018 Due to customers 363,083 43,917 10,523 12,760 563 215 431,061 Issued bonds - 41 453 5,595 7,889 - 13,978 Subordinated liabilities 99 57 57 6,492 2,700 - 9, 405 Other liabilities 2,915 19 275 964 108 135 4,416 Total non-derivative financial liabilities 366,960 44,076 11,350 28,477 11,260 755 462,878 Issued guarantees and credit limits on guarantees 1,463 - - - - - 1,463 Loan commitments 1) 4,974 4 26 52 - - 5,056 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Due to banks 2,329 - 2,596 - - 563 5,488 Due to customers 323,787 21,507 41,318 13,377 1,293 270 401,552 Issued bonds - 40 120 4,373 - - 4,533 Subordinated liabilities 99 - 66 4,508 4,865 - 9,538 Other liabilities 2,140 14 240 921 300 118 3,733 Total non-derivative financial liabilities 328,355 21,561 44,340 23,179 6,458 951 424,844 Issued guarantees and credit limits on guarantees 1,119 - - - - - 1,119 Loan commitments 1) 3,538 4 19 183 - - 3,744 1)   The  loan commitments  represent  irrevocable  loan  commitments only  relating  to  commercial  investment  loans,  commercial  auto &  equipment  loans  and  mortgages. (c) The table below shows the remaining contractual maturity of liabilities from financial derivatives: 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Total Held for trading derivatives Currency swaps 1 - - - - 1 Inte rest rate swaps - - - 62 381 443 Currency forwards 5 8 15 23 - 51 Cross currency interest rate swaps 37 - - - - 37 Hedging derivatives Inte rest rate swaps 51 92 214 2,143 1,647 4,147 Cross currenc y interest rate swaps - - 60 52 - 112 Total financial derivatives 94 100 289 2,280 2,028 4,791 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Total Held for trading derivatives Currency swaps 13 - - - - 13 Interest rate swaps - - - 53 369 422 Currency forwards 1 3 31 26 - 61 Cross currency interest rate swaps - - - 27 - 27 Hedging derivatives Interest rate swaps 3 2 128 2,156 2,201 4,490 Cross currency interest rate swaps - - - 58 - 58 Total financial derivatives 17 5 159 2,320 2,570 5,071 218 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 (d) The table below shows the remaining expected maturity of assets and liabilities as follows: 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the central  bank 13,541 - - - - - 13,541 Derivative fi nancia l instruments with  positive fair values 73 9 17 106 391 - 596 Investment securities 113,208 2) 8 28 2,683 670 67 116,664 Hedging derivatives with positive fai r values - 6 67 855 1,386 - 2,314 Change in fair value of items he dged  on portfolio basis 1 (1) 59 129 12 - 200 Lo ans and receivables to banks 76,690 - - - - 2,516 79,206 Lo ans and receivables to customers 10,394 12,436 47,365 124,466 78,542 2,180 275,383 Investments in associa tes - - - - - 3 3 Current tax assets - - 70 - - - 70 Remaining assets 193 - 673 13 3 6,123 7,005 Total Assets 214,100 12,458 48,279 128,252 81,004 10,889 494,982 Due to banks 863 - - 2,566 - 405 3,834 Due to customers 1) 67,135 51,314 78,027 178,893 54,437 215 430,021 Derivative fi nancia l instruments with  negative fair values 43 8 15 85 381 - 532 Hedging deriva tives with negative fair  values 51 92 274 2,195 1,647 - 4, 259 Provisions - - - - - 263 263 Current tax liability - - 47 - - - 47 Change in fair value of items he dged  on portfolio basis - - - 78 - - 78 Deferred tax liability - - - - - 469 469 Issued bonds - 37 127 3,893 7,505 - 11,562 Subordinated liabilities 92 30 - 4,909 2,591 - 7,622 Other liabilities 2,915 19 275 964 108 135 4,416 Equity - - - - - 31,879 31,879 Total liabilities and equity 71,099 51,500 78,765 193,583 66,669 33,366 494,982 Net liquidity position 143,001 (39,042) (30,486) (65,331) 14,335 (22,477) - 1)   Balances are allocated to the buckets based o n  the expected maturity of non-maturity deposits and contractual maturity date of term deposits. Expected  maturity of non-maturity deposits is a function of deposits’ volatili ty and the average life of the non-volatile pa rt. 2)  Balance reported within 1 month repr esents Government bonds which may be used as a collateral in repo transactions. 219 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at the central  bank 10,871 - - - - - 10,871 Derivative fi nancia l instruments with  positive fair values 2 4 33 125 380 - 544 Investment securities 101,070 2) - 23 3,004 200 56 104,353 Hedging derivatives with positive fai r values 8 14 144 995 1,540 - 2,701 Change in fair value of items he dged  on portfolio basis (2) (13) (66) 191 12 - 122 Lo ans and receivables to banks 67,392 - - - - 2,240 69,632 Lo ans and receivables to customers 9,650 11,832 45,454 122,163 71,431 2,534 263,06 4 Investments in associa tes - - - - - 3 3 Current tax assets - - 76 - - - 76 Remaining assets 179 - 544 4 3 6,088 6, 818 Total Assets 189,170 11,837 46,208 126,482 73,566 10,921 458,184 Due to banks 2,329 - 2,531 - - 563 5,423 Due to customers 1) 52,655 20,414 78,547 176,986 7 0,625 270 399,497 Derivative fi nancia l instruments with  negative fair values 14 3 31 106 369 - 523 Hedging deriva tives with negative fair  values 3 2 128 2 ,214 2,201 - 4,548 Provisions - - - - - 266 266 Current tax liability - - 54 - - - 54 Change in fair value of items he dged  on portfolio basis (2) (7) (31) 10 3 - - 63 Deferred tax liability - - - - - 462 462 Issued bonds - 37 5 3,766 - - 3,808 Subordinated liabilities 92 - 18 2,913 4,581 - 7,6 04 Other liabilities 2,140 14 240 921 300 118 3,733 Equity - - - - - 32,203 32,203 Total liabilities and equity 57,231 20,463 81,523 187,009 78,076 33,882 458,184 Net liquidity position 131,939 (8,626) (35,315) (60,527) (4,510) (22,961) - 1)   Balances are allocated to the buckets based o n  the expected maturity of non-maturity deposits and contractual maturity date of term deposits. Expected  maturity of non-maturity deposits is a function of deposits’ volatili ty and the average life of the non-volatile pa rt. 2)  Balance reported within 1 month repr esents Government bonds which may be used as a collateral in repo transactions. 44.6 OPERATIONAL RISK Operational risk represents the risk of a loss resulting  from inadequate or failed internal processes, people or  systems, or from external events, including the risk of loss due to a breach of, or failure to comp ly with, a legal  or regulatory r equirement, or a threat to the Group’s  reputation. It also includes l egal and outsourcing risk. The  Group  implemented  standardised  tools  and  processes for operational risk management, includin g  Risk  &  Control  Self-Assessment  (RCSA),  Loss  Data  Collection  of  actual  internal  operational  risk  losses,  monitoring of external operational risk events, Key Risk  Indicators,  scenario  analyses,  and Issue  management  that  is  used  to record, monitor  and  report identified  risks  and  issues.  The  Issue  management  system  is  also  used fo r  monitoring  the relevant  action plans,  if  applicable, and  is  closely  linked to  the RCSA process.  The  Group  continually  develops  and  improves  these  tools and pr ocesses. The  Bank’s  Management  Board  specifically  approves  the  operational  risk  governance  str ucture  and  framework, and the Group’s objectives for operational  risk  management  and  decides  about  acceptance  of  major risk s if there are no feasible remedial measures. The Operational Risk Committee (ORCO) oversees the  Group’s  operational  risk  mana gement  process  and  approves  methods,  limits  and  Key  Risk  Indicators,  monitors  adherence  to  approved  limits  and  Key  Risk  Indicators  and  approves  principal  changes  in  the  insurance programme. More details about operational risk and its management  are  comprised  in  section  5.5  of  the  Annual  financial  report. 220 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 44.6.1 Legal Risk Dealing  with  legal  risk  and  managing  it  means  minimising uncertainty as sociated with enforcement  and  interpretation  of  applicable  law,  contracts  and  regulations.  In  a ddition  to  standard  legal  functions  in  the  various  areas  such  as  contract,  banking  and  corp orate law, the main tasks of the Group’s lawyers  during 2024 consisted of keeping both the retail and  commerc ial  contractual documentation aligned with  both the bu siness strategy and various needs of the  business  dep artments of  the  Group,  as  well  as  new  regulations.  The  Group  continuously  monitors  legal  disputes  and  provision  is  created  for  the  estimated  amount  of  payment  if  it  i s  more  pr obable  than  not  that the cash outflow will have to be made. 45. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The following table shows the carryi ng value and fair  values of financial assets and  liabilities that are not  presented  at  fair  value  in  the  Gro up’s  conso lidated  statement of financial position. The fair value includes also anticipated future losses. The Group uses the following inputs and techniques  to  estimate  the  fair  value  for  asset  and  liability  categories: •  Cash and cash balances at the central bank The  carrying  value  of  cash and  cash  balances  at  the central bank appr ox i mates their fair value. •  Loans and receivables to banks The  carrying  value  of  receivables  to  banks  approximates  their  fair  values  due  to  the  short  maturity of those receiv ables. •  Loans and receivables to customers The  fair value of  loans is  estimated on the  basis  of  discounted  future  expected  cash  flows  using  the  interest  rate  common  for  loans  with  similar  credit  risk  and  interest  risk  conditions  pr o file  and  maturity  dates  (discounted  rate  technique  accor ding  to  IFRS  13).  For  imp air ed  loans  the  present  value  of  future  expected  cash  flows  including the expected proc eeds from a collateral  foreclosure, if any. •  Due to banks The  carrying  value  o f  Due  to  bank s  in  principle  approximates  their  fair  v alue  due  to  the  short  maturity of these deposits. •  Due to customers The  fair  value  of  deposits repayable on  d e man d  at  request  and  term  deposits  bearing  a  variable  interest rate are equal to their carrying  v alue as  at the balance sheet date. The fair value of term  deposits  with  a  fixed  interest  rate  is  estimated  on  the  basis  of  discounted  cash  flows  using  the  market interest rates. •  Investment securities at amortised cost The  difference  between  fair  value  and  carrying  value  of  investment  securities  measured  at  amortised  cost  is  mainly  driven  by  different  market and effective interest rates of government  bonds in cluded in this portfolio. •  Subordinated liabilities and Issued bonds The  difference  be tween  fair  value  and  carrying  value  of  subordinated  debt  sec urities,  subordinated deposits and issued bonds measured  at  amortised  cost  is  determined  o n  the  basis  of  discounted  cash  flows  using the  market  interest  rates. 31 Dec 2024 31 Dec 2023 CZK m Carrying value Fair value Carrying value Fair value FINANCIAL ASSETS Cash and cash balances at the central bank 13,541 13,541 10,871 10,871 Investment securities at amortised cost 1) 116,597 109,555 104,297 97,580 Lo ans and receivables to banks 79,206 79,206 69,632 69,6 32 Lo ans and receivables to customers 275,383 273,867 263,064 256,8 40 FINANCIAL LIABILITIES Due to banks 3,834 3,851 5,423 5,423 Due to customers 43 0,021 430,021 399,497 399,497 Issued bonds 11,562 12,654 3,808 4,100 Subordinated debt securities 4,706 4,672 4,690 4,546 Subordinated deposits 2) 2,916 3,014 2,914 3,042 1)  Differen ce between fair value and carrying value is mainly driven by different market and effective interest rates of the Government bonds. 2)   When calculating the discount rate, the Gr oup assumes that primarily  credit and liquid markup has n ot changed significantly since the origination  of the  subordinated deposits , thus the ch ange in interest rate is the main driver of the discount rate.  In case of significant changes in the other components, the  discount rate calculation will b e adjusted accordingly. 221 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 Investment securities measured at amortised cost are classified as level 1 because fair value is based on quoted  prices o n active market. Cash and cash balances at the central bank, loans and receivables to banks and due to  banks are classified as level 2 and all other fair values presented above are classified as level 3 as the data used  for the estimation of the discount rate are not based on the data from the active market. There are assumptions  applied for the estimation of the cash flows used for discounting taking into account expected repayment profile  of the particular pool  or product.  The discount rates used  for discounting are  b ased on  the rates  of  the  major  competitors or other benchmark rates for similar ty pe of assets. The  following  table summarises  the  hier archy of  fair  values  of  financial  assets  and  fi nan cial liabiliti es  that  are  carri ed at fair value in the statement of financial position: 31 Dec 2024 31 Dec 2023 CZK m Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 FINANCIAL ASSETS Derivative fi nancia l instruments with positiv e fair  values - 596 - - 544 - Debt securities measure d at FTVPL - - 41 - - 30 Equity securities measured at FVTPL - - 25 - - 25 Equity securities measured at FVTOCI - - 1 - - 1 Hedging deriva tives with positive fa ir values - 2,314 - - 2,701 - Change in fair value of items he dged on portfolio basis - - 200 - - 122 FINANCIAL LIABILITIES Derivative fi nancia l instruments with negative fair  values - 532 - - 523 - Hedging deriva tives with negative fair values - 4,259 - - 4,548 - Change in fair value of items he dged on portfolio basis - - 78 - - 63 There were no transfers between level 1 and 2 during the year 2024 nor 2023. The Group u ses the following inputs and techniques to determine fair value under level 2 and level 3: The level 2 assets include mainly financial derivatives, corporate bonds and treasury bills. For derivative exposures  the fair value is estimated using the present value of the cash flow s resulting from the transactions taking into  account market inputs like FX spot and forward rates, benchmark interest rates, swap rates, etc. The fair v alue of  corp orate bonds, treasury bills is calculated as the present value of cash flows using the benchmark interest rates. The level 3 ass ets include equity instruments not traded on the market where the fair value is calculated using the  valuation techniques including expe rt appraisals. Movement analysis of level 3 financial assets and liabilities: CZK m As at 1 Jan 2024 Purchases/ Sales in the period Total gains and losses in the period recognised in the income statement Total gains and losses in the period recognised in OCI As at 31 Dec 2024 Investment securities at FVTOCI 1 - - - 1  Investment securities at FVTPL 55 - 11  - 66  Total 56 - 11 - 67 CZK m As at 1 Jan 2023 Purchases/ Sales in the period Total gains and losses in the period recognised in the income statement Total gains and losses in the period recognised in OCI As at 31 Dec 2023 Investment securities at FVTOCI 1  - - - 1 Investment securities at FVTPL 71  (23) 7  - 55 Total 72 (23) 7 - 56 222 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Annual Financial Report 2024 46. MANDATORY PUBLISHED INFORMATION The  Group  quarterly  publi shes  the  mandatory  information  according  to  CNB  Decree  No.  163/2014  Coll.  and  Part  8  of  Regulation  of  the  European  Parliament  and  the  Council  (EU)  No.  575/2013  of  26  June  2013  on  its  website  in  the  section  Mandatory  information at the following address: https://investors. moneta.cz/financial-results. 47. SUBSEQUENT EVENTS There  have  been  no  subsequent  events  arising  after  31 December 2024 that would have a material impact  on these consolidated financial statements. Signature of statutory representatives In Prague, on 17 March 2025 Tomáš Spurný Chairman of the Management Boar d and CEO  MONETA Money Bank, a.s. Jan Friček Member of the Management Board and CFO  MONETA Money Bank, a.s. SEPARATE FINANCIAL STATEMENTS 225Annual Financial Report 2024 SEPARATE    FINANCIAL   STATEMENTS    OF MONETA MONEY BANK,  a.s. As at and for the Year Ended 31 December 2024   Prepared according to IFRS Accounting Standards as adopted by  the European Union SEPARATE FINANCIAL STATEMENTS 226 Annual Financial Report 2024 SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 31 December 2024 CZK m Note 2024 2023 Inte rest and similar income 1) 20,592 20,490 Inte rest expense and similar char ges (13,151) (13,351) Net interest income 6 7,441 7,139 Fee and commission income 3,475 2,961 Fee and commission expense   (641) (579) Net fee and commission income 7 2,834 2,382 Dividend income 8 1,6 85 1,294 Net income from financial operations 9 859 878 Other operating income 10 162 132 Total operating income 12,981 11,825 Personnel expenses 11 (2,582) (2,428) Administrative expenses 12 (1,508) (1,578) Regulatory charges 13 (204) (287) Depreciation and amortisation 14 (1,181) (1, 189) Other operating expenses 15 (63) (50) Total operating expenses (5,538) (5,532) Profit for the period before tax and net impairment of financial assets 7,443 6,293 Net impairment of financial assets 16 (352) (268) Profit for the period before tax 7,091 6,025 Taxes on income 17 (700) (6 45) Profit for the period after tax 6,391 5,380 Items that will not be reclassified to profit or loss   - Change in fair value of Investment securities recognised in OCI - - Items that may be reclassified subsequently to profit or loss   - Movement in hedging reserve: - -     - Cash flow hedg es – effective porti on of changes in fair value - -   - Deferred tax 38.2 - - Other comprehensive income, net of tax - - Total comprehensive income attributable to the equity holders 6,391 5,380 Profit for the year after tax attributable to the equity holders 6,391 5,380 Profit for the year after tax attributable to the equity holders per share Weight ed average of ordinary shares (millions of shares) 511 511 Basic earnings per share (in CZK) 18 12.51 10.53 Diluted earnings per share (in CZK) 18 12.51 10.53 1)  Calculated using the effective interest method with the exception of he dging derivatives. SEPARATE FINANCIAL STATEMENTS 227Annual Financial Report 2024 SEPARATE STATEMENT OF FINANCIAL POSITION as at 31 December 2024 CZK m Note 31 Dec 2024 31 Dec 2023 Assets Cash and cash balances at the central bank 1) 19 13,421 10,534 Derivative fi nancia l instruments with positiv e fair values 27 596 544 Investment securities 24 113,177 100,825 Hedging deriva tives with positive fa ir values 27 2,314 2,701 Change in fair value of items he dged on portfolio basis 200 122 Lo ans and receivables to banks 22 78,041 69, 232 Lo ans and receivables to customers 23 259,933 245,881 Intangible assets 28 3,205 3,1 58 Property and equipment 29 2,259 2,3 98 Investments in subs idiaries and associ ates 30 4,4 68 4,466 Current tax assets 31 59 57 Other assets 33 1,289 967 TOTAL ASSETS 478,962 440,885 Liabilities Derivative fi nancia l instruments with negative fair values 27 532 523 Due to banks 34 4,048 5 ,451 Due to customers 35 403,674 371,574 Hedging deriva tives with negative fair values 27 4,259 4,548 Change in fair value of items he dged on portfolio basis 78 63 Issued bonds 25 20,996 14,294 Subordinated liabilities 26 7,622 7,6 04 Provisions 36 262 266 Deferred tax liabilities 32 334 327 Other liabilities 37 4,174 3,511 Total liabilities 445,979 408,161 Equity Share capital 38 10,220 10,220 Sta tutory res erve 38 102 102 Other reserves 1 1 Retained earnings 22,281 22,022 Effect of business combination under common control 379 379 Total equity 32,983 32,724 TOTAL LIABILITIES AND EQUITY 478,962 440,885 1)   The caption of the line has been changed to “Cash and ca sh balances at the central bank” without any change to the items reported. The previous caption of the  line was “Cash and balances with the central bank”.  SEPARATE FINANCIAL STATEMENTS 228 Annual Financial Report 2024 SEPARATE STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2024 CZK m Share capital Statutory reserve Reserve from revaluation of FVTOCI Retained earnings Effect of business combination under common control Total Balance as reported 1 January 2024 10,220 102 1 22,022 379 32,724 Transactions w ith owne rs of the company   - Dividends - - - (6,132) - (6,132) Total comprehensive income Profit for the year after tax - - - 6,391 - 6,391 Other comprehensive income after tax   -  Change in fair value of FVTOCI investment  securities - - - - - -   -  Cash-flow hedges – effective portion o f changes  in fair value - - - - - -   - Deferred tax - - - - - - Balance 31 December 2024 10,220 102 1 22,281 379 32,983 SEPARATE STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2023 CZK m Share capital Statutory reserve Reserve from revaluation of FVTOCI Retained earnings Effect of business combination under common control Total Balance as reported 1 January 2023 10,220 102 1 20,730 379 31,432 Transactions w ith owne rs of the company   - Dividends - - - (4,088) - (4,088) Total comprehensive income Profit for the year after tax - - - 5,380 - 5,380 Other comprehensive income after tax   -  Change in fair value of FVTOCI investment  securities - - - - - -   -  Cash-flow hedges – effective portion o f changes  in fair value - - - - - -   - Deferred tax - - - - - - Balance 31 December 2023 10,220 102 1 22,022 379 32,724 SEPARATE FINANCIAL STATEMENTS 229Annual Financial Report 2024 SEPARATE STATEMENT OF CASH FLOWS For the year ended 31 December 2024 CZK m Note 2024 2023 Cash flows from operating activities Profit for the year after tax 6,391 5,380 Adjustmen ts for:   Depreciation and amortisation 14 1,181 1,189   Net impairme nt of financial assets (excl. cash collection and recovery) 16 338 27 9   Net gain on revaluation of investment securities 9 (10) (6 )    Accrued coup on, amortisation of discount/premium of investmen t securities 831 550   Accrued interest income from derivatives 796 955   Accrued interest income from loans and receivables to customers and banks 1) 455 93   Accrued interest expense due to cu stomers and banks 1) (48 5) 261   Net gain/loss from revalu ation of hedging derivatives 9 (751) 4,915   Net gain/loss from revalu ation of items hedged on portfolio basis 9 771 (5,009)   Net gain/loss from unrealised FX (4 3) (7)    Change in provisions not recognised in d epreciation and amortisation 7 (8)   Net gain/loss on sale of investment securities (59) (26)   Net loss on sa le and other disp osal of tangible and intangible assets 28, 2 9 2 5   Share of profit or loss of associates accounted for using the equity method 9 (3) -   Dividend income 8 (1,685) (1,294)   Tax expense 17 700 645 8,436 7,922 Changes in:   Loans and receivables to customers and banks 1) 22, 23 (15,169) 2,384   Oth er assets 33 (322) 27   Due to banks 1) 34 (1,372) (573)   Due to customers 1) 35 32,554 66,98 6   Other liabilities 37 768 84 24,895 76,830 Income ta xes paid (694) (1,130) Net cash used in operating activities 24,201 75,700 Cash flows from investing activities   Acquisition of investment securi ties (15,191) (45 ,320)   Proceeds from investment s ecurities 1,549 1,817   Acquisition of property and equipment and intangible assets 28, 2 9 (886) (775)    Pr oceeds from the sale of property and equipment and intangible assets 28, 29 14 36   Dividends received 1,688 1,294 Net cash used in investing activities (12,826) (42,948) SEPARATE FINANCIAL STATEMENTS 230 Annual Financial Report 2024 CZK m Note 2024 2023 Cash flows from financing activities   Proceeds from issued bonds 9,474 -   Repayment of issued bonds (3,050) (4,125)   Proceeds from subordinated deposits - 2,922   Payments of lease liabilities (309) (298)   Dividends paid (6 ,132) (4,088) Net cash used in financing activities (17) (5,589) Net change in cash and cash equivalents 11,358 27,163 Cash and cash equivalents at beginning of period 20 77,526 50,319 Effec t of excha nge rate fluctuations on cash and cash equivalents held 62 44 Cash and cash equivalents at end of period 20 88,946 77,526 Inte rest receive d 2) 27,4 80 24,785 Interest paid 2) (18,608) (1 6,138) 1)    In 2024, the Bank ad ded separate lines “Accrued interest income on loans and receivables to customers and banks” and “Accrued int erest expense due to  customers an d banks”.  For the purpose of comparability, the previous period has been adjusted 2)   Lines “Interest  received”  and  “ Interest  paid”  represe nt interest  paid  by customers  and  counterparties  a nd  received  from  cu stomers  and  c ounterparties,  respectively, and are inclu ded in cash flows from operating activities. 231 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 NOTES TO SEPARATE    FINANCIAL   STATEMENTS    OF MONETA MONEY BANK,  a.s. As at and for the Year Ended 31 December 2024  Prepared according to IFRS Accounting Standards as adopted by  the European Union 232 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 CONTENT 235  |  1. GENERAL INFORMATION 235  |  2. BASIS OF PREPARATION 235  |  2.1   BASIS OF PRESENTATIO N 235  |  2.2   GOING CONCERN 235  |  2.3   FUNCTIONAL AND PRESENTATION CURRENCY 235  |  2. 4    MEASUREMENT 236  |  3. USE OF ESTIMATES AND JUDGEMENTS 236  |  4. NEW IFRS ACCOUNTING STANDARDS AND INTERPRETATIONS 236  |  4.1   STANDARDS AND AMENDMENTS EFF ECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND ENDORSED BY THE EU 236  |  4.2   STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND NOT ENDORSED BY THE EU 237  |  5. SUMMARY OF MATERIAL ACCOUNTING POLICIES 237  |  5.1   CHANGES IN ACC OUNTING POLICIES – NEWLY EFFECTIVE AND ENDORSED IFRS ACCOUNTING STANDARDS 237  |  5.2   FOREIGN CURRENCY 238  |  5.3   INTEREST 238  |  5 .4   FEES AND COMMISSIONS 239  |  5.5   DIVIDENDS 239  |  5.6   FINANCIAL ASSETS AND FINANCIAL LIABILITIES 239  |  5.6.1   Recogniti on 239  |  5.6.2   Classification of Financial Assets 240  |  5.6.3   Classification of Financial Liabilities 240  |  5.6.4   Reclassification 240  |  5.6.5   Derecognition 241  |  5.6.6   Modifications 241  |  5 . 6 . 7    O f f s e t t i n g 241  |  5.6.8   Amortised Cost Measurement 241  |  5.6.9   Derivatives and Hedge Account ing 242  |  5.6.10   Impairment of Financial Assets 243  |  5.7   REPURCHASE AND REVER SE REPURCHASE AGREEMENTS 243  |  5.8   FAIR VALUE MEASUREMENT 244  |  5.9   PROVISIONS 244  |  5 . 1 0    L E A S E S 245  |  5.11   PROPERTY AND EQUIPMENT 245  |  5.12   INTANGIBLE ASSETS 246  |  5.13   INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 246  |  5.14   IMPAIRMENT OF NON-FINANCIAL ASSETS 246  |  5.15   EMPLOYEE BENEFITS 248  |  5.16   CASH AND CASH BALANCES AT THE CENTRAL BANK 248  |  5.17   INCOME TAX AND DEFERRED TAX 248  |  5.18   SEGMENT REPORTING 248  |  5.19   FINANCIAL GUARANTEES AND LOAN COMMITMENTS 248  |  5.20   SUBORDINATED LIABILITIES 248  |  5.21   MORTGAGE-BACKED BONDS 249  |  5.22   OTHER ISSUED BONDS 249  |  5.23   BUSINESS COMBINATIONS U NDER COMMON CONTROL 249  |  6. NET INTEREST INCOME 250  |  7. NET FEE AND COMMISSION INCOME 250  |  8. DIVIDEND INCOME 251  |  9. NET INCOME FROM FINANCIAL OPERATIONS 251  |  10. OTHER OPERATING INCOME 251  |  11. PERSONNEL EXPENSES 251  |  12. ADMINISTRATIVE EXPENSES 252  |  13. REGULATORY CHARGES 252  |  14. DEPRECIATION AND AMORTISATION 252  |  15. OTHER OPERATING EXPENSES 252  |  16. NET IMPAIRMENT OF FINANCIAL ASSETS 233 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 253  |  17. TAXES ON INCOME 254  |  18. EARNINGS PER SHARE 254  |  19. CASH AND CASH BALANCES AT THE CENTRAL BANK 254  |  20. CASH AND CASH EQUIVALENTS 254  |  21. TRANSFER OF FINANCIAL ASSETS – REPURCHASE TRANSACTIONS 255  |  22. LOANS AND RECEIVABLES TO BANKS 255  |  23. LOANS AND RECEIVABLES TO CUSTOMERS 257  |  24. INVESTMENT SECURITIES 257  |  25. ISSUED BONDS 258  |  26. SUBORDINATED LIABILITIES 259  |  27. FINANCIAL DERIVATIVES 261  |  28. INTANGIBLE ASSETS 262  |  29. PROPERTY AND EQUIPMENT 263  |  30. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 264  |  31. CURRENT TAX ASSETS AND CURRENT TAX LIABILITIES 264  |  32. DEFERRED TAX ASSETS AND LIABILITIES 265  |  33. OTHER ASSETS 265  |  34. DUE TO BANKS 265  |  35. DUE TO CUSTOMERS 266  |  36. PROVISIONS 266  |  37. OTHER LIABILITIES 266  |  3 8 . E Q U I T Y 266  |  38.1   SHARE CAPITAL 267  |  38.2   STATUTORY RESERVE AND RESERVE FROM REVALUATION OF FINANCI AL ASSETS 268  |  38.3   DIVIDENDS PER SHARE 268  |  39. BONUSES TIED TO THE EQUITY 268  |  40. CONTINGENT LIABILITIES 268  |  40.1   LOAN COMMITMENTS AND ISSUED GUARANTEES 268  |  40.2   LEGAL DISPUTES 268  |  41. LEASES 271  |  42. TRANSACTIONS WITH RELATED PARTIES 273  |  42.1   REMUNERATION TO MEMBERS OF SUPERVI SORY BOARD, MANAGEMENT BOARD AND OTHER KEY EXEC UTIVE MANAGERS 273  |  43. RISK MANAGEMENT 273  |  43.1   CAPITAL MANAGEMENT 274  |  43.2   CREDIT RIS K 274  |  43.2.1   Credit Risk Management 276  |  43.2.2   Categorisation of Exposures 277  |  43.2.3   Collateral Assessment 277  |  43.2.4   Allowan ces Calculation 283  |  43.2.5   Credit Concentration Risk 286  |  43.2.6   Credit Portfolio and its Quality 289  |  4 3.2.7   Modified Financial assets 291  |  43.3   INTEREST RATE RISK 29 4  |  43.4   FOREIGN EXCHANGE RISK 295  |  43.5   LIQUIDITY RISK 300  |  43.6   O PERATIONAL RISK 301  |  43.6.1   Legal Ris k 301  |  44. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES 303  |  45. MANDATORY PUBLISHED INFORMATION 303  |  46. SUBSEQUENT EVENTS 235 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 1. GENERAL INFORMATION MONETA  Money  Bank  (the  “Bank”)  is  a  joint-stock  company  incorporated  and  domiciled  in  the  Czech  Republic,  its  registered  office  and  prin cipal  place  of  busin e ss  is  Vyskočilova  1442/1b,  Michle,  14 0  00  Prague 4, post code 140 28, Czech Republic, ID Number:  25672720,  incorporated  i n  the  Commercial  Register  by  the  Municip al  Court  in  Prague,  Section  B,  Entry  No. 5403, ISIN number: CZ0008040318. The  latest  available  list  of  entities  recorded  in  the  registry of book-entry shares of the B ank kept by the  Central  S ecurities  Depository  in  Prague  (Centrální  depozitář  cenných  papírů,  a.s.)  with  a  shareholding  interest of m ore than 1% of the Bank’s registered share  capital  is  available  in  the  investor  relations  section  of  the  Bank’s  website  at:  https://investors.moneta. cz /shares.  Such  entities  may  no t  necessarily  be  the  beneficial  shareholders  of  the  Bank  but  may  h old  shares of the Bank for the beneficial shareholders (such  as securities brokers, banks, custodians or nominees). Please  r efer  to  chapter  1.4  o f  the  Annual  financial  report to the section “Shareh older structure” for the  information on the shareholder structure of the Bank as at 31 December 2024. As far as the Bank is aware, no shareholder was a co ntr olling entity of the Bank as at  31 Dece mber 2024. The  Bank  o perates  in  the  Czech  Republic  an d  focuses  primarily  on  secured  and  unsecured  consumer lending  and  commercial  financing.  The  consumer  portfolio  consists  of  secured  and  unsecured  lending.  Unsecured  lending  products  include  consumer  loans,  cre dit  card s  and personal overdrafts. Secured le nding is provided in  the  form  o f  mortgages.  Commercial  lending  products  range from working capital, i nvestment loans, financing of  small businesses and entrepreneurs through guarantees,  letters of credits and foreign exchange transactions. The  Bank provides a wide range of deposit and transactional  products to retail and commercial cus tomers. The Bank issues debit and credit c ards in cooperation  with  VISA  and  cooperates  with  EVO  Payments  International  in  acquiring  services.  In  addition,  the  Bank  intermediates  additional  payment  protection  insurance  which  covers  the  customer’s  monthly  lo an  payment  in  the  event  of  unemployment,  accident  or  sickness.  The  Bank  also  acts  as  the  intermediary  to  provide  its  custom e rs  with  other  insurance  and  investment products. The  Bank’s  separate  financial  statements  were  authorised  for  issue  by  the  Management  Board  on  17  March  2025,  examined  by  Supervisory  Board  and  recommended  to  be  pub lished  on  18  March  2025.  In  additio n,  the  financial  statements  are  subject  to  approval at the General Meeting of sharehold e rs. All  pr e ss  releases,  financial  reports  and  other  information  are  available  on  the  Bank’s  website:   www.moneta.cz. The Bank has  not prepared a separate annual financial  report,  because  the  Bank  includes  the  respective  information in the co nsolidated annual financial rep ort. 2. BASIS OF PREPARATION 2.1 BASIS OF PRESENTATION The  finan cial  statements  contained  herein  are  separate financial stateme nts of the Bank prepared in  accor dance with IFR S Accounting Standards as adopted  by the European Union (IFR S® Accounting Standards). IFRS Accounting Standards as  adopted by the  European  Union comprise accounting standards issued or adopted  by the International Acco unting Standards Board (IASB)  as well as interpretations issued or adopted by the IFRS  Interpretations Committee (IFRIC). These financial statements were not prepared for any  special purpose such as potential merger or ac quisition. 2.2 GOING CONCERN The  se parate  financial  statements  are  prepared  o n  a  going  concern  basis,  as  the  Management  Board  is  satisfied that the  Bank has the resources to continue  in business for the foreseeable future. In making this  asses sment,  the  Management  Board  has  consider ed  a  wide  r ange  of  informati on  relating  to  present  and  future  conditi ons,  including  future  projections  of  profitability, cash flows and capi tal resources. 2.3 FUNCTIONAL AND PRESENTATION CURRENCY The  Bank’s  financial  statements are presented in the  Czech  Koruna  (CZK)  which  is  the  Bank’s  functional  currency.  All  am ounts  have  been  rounded  to  the  nearest million, except where otherwise indicated. 2.4 MEASUREMENT The separate financial statements have been pre pared  on  a  historical  cost  basis,  except  for,  investment  securities  measured  at  fair  value  throu gh  other  comprehensive income (FVTOCI), investment securities  measured at f air  value through  profit or lo ss (FVTPL)  and  derivative  financial  i n struments  which  have  been  measured  at  fair  value.  The  carrying  values  of  recognised as sets that are hedged items  in  fair value  236 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 hedges, and otherwise carried at  amortised cost, are  adjusted to record changes in fair value attributable to  the  risks  that are  being  hedged,  and  this  adjustment  is either reported on a separate line of the statement of  financial  position  in  the  case of  the  application  of  port folio  fair  value  hedges,  or  is  directly  adjusting  carrying value of the hedged item in the case of micro  hedges. 3. USE OF ESTIMATES AND JUDGEMENTS The preparati on of the Bank’s financial statements in  conformity  with  IFRS  Accounting  Standards  requires  the  use  of  estimates  and  judgements  about  fu ture  conditions. In  view  of  the  inherent uncertainties  and  the high level of subjectivity involved in the r ecognition  or measurement of the items listed below, it is possible  that  the  outcomes  in  the  next  financial  year  could  differ  from  those  on  which  management’s  estimates  are based, resulting in materially different c onclusions  from those reached by management for the purposes  of the 2024 Separate Financial Statements. Estimates  and  unde rlying  assump tions  are  rev iewed  on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are  revised and i n any f uture periods affected. Information  about critical  judgements  and  estimates  in  applying accounting poli cies that have the mo st significant  effect on the amounts recognised in the Bank’s financial  statements is included in the following notes: •  Deferred tax assets and liabilities – note 32; •  Impairment of finan cial assets – notes 16 and 43; •  Provisions – note 36; •  Fair value – note 44; •  Classification of leases – note 5.10; •  Classification of financial assets – note 5.6.2. Significant  estimates  related  to  future  develo pment  of  pre payments  of  the  loan’s  notional  amount  were  made by the management of the Bank in the area of  expected cash  flows from  loan receivables which are  used for determination of amortised cost of the debt  finan cial assets. Impact of the current macroeconomic environment Significant  jud gements  made  by  the  management  i n  applying  the  Bank’s  ac counting  policies  and  the  key  sources  of  uncertainty  estimation  were  significantly  impacted  mainly  by  macroeconomic  effects  of  high  interest-rate  environment  which  were  reflected  in  the  loan  loss  allowances  level  through  management  overlays. Further description of these impacts is provided in the  following notes: •  Net impairment of financial assets – note 16; •  Credit Risk – note 43.2. 4. NEW IFRS ACCOUNTING STANDARDS AND INTERPRETATIONS 4.1 STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND ENDORSED BY THE EU (a) New standards and amendments to the existing standards with a significant impact on the Bank None. (b) New standards and amendments to the existing standards with a minor or no impact on the Bank •   Amendments  to  IAS 21  The  Effects  of  Changes  in  Foreign  Exchange  Rates  –  Lack of  Exchangeability  (effective for annual periods beginning on or after  1 January 2025). 4.2 STANDARDS AND AMENDMENTS EFFECTIVE AFTER 31 DECEMBER 2024 ISSUED BY THE IASB AND NOT ENDORSED BY THE EU The  below  listed  new  accounting  standards  and  amendments  to  the  existing  standards  have  been  published  by  the  IASB  that  are  not  mandato ry  for  reporting periods ended 31 December 2024 and have  not  been  adopted  by  th e  European  Union. The  Bank  intends to adopt these standards and amendments, if  applicable, when they become effec tive as endorsed by  the EU. The Bank’s assessment of the impact of these  new stand ards and amendments is set out below. (a) IFRS 18 – Presentation and Disclosure in Financial Statements In  April  2024,  the  Board  i ssued  IFRS  18  Presentation  and Di sclosure in Financial Statement s , which repl aces  IAS  1  Presentation  of  Financial  Statements.  The  new  stan dard introduces new categories and subtotals in the  statement of pro fit or loss and prescribes disclosure of  management-defined  performance  measures  (MPM).  The  standard  also  brings  new  requirements  for  the  location,  aggregation  and  disaggregation  of  financial  information. 237 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Requirements regarding Statement of profit or loss All income and expense items shall be classified into one  of  the  five  categories:  operating,  investing,  financing,  income  taxes,  and  discontinued  operations.  On  top of  that the standard requires the presentation  o f  sub totals  such as “Operating profit or loss”, “Profi t or loss before  finan cing  and  income  taxes”  and  “Profit  or  loss”.  Classification is influenced by main the business activity  defined by the standard as “Investing in particular types  of assets” and “Provision of financing to customers”. The  entity may be subject to one of them or both. Management-defined performance measures The standard introduces the concept of a management-  defined performance measure (MPM) which is in general  the  subtotal  o f  income  and  expenses  that  an  entity  uses  to  externally  communicate  management’s  view  on  the  financial performance  of  the entity to  users of  finan cial statements.  The  standard  requires  disclosure  of  information  about  all  of  an  entity’s  MPMs  within  a  single  note  to  the  financial statements  and requires  disclosures to be made about each MPM, such as how  the measure is calculated or a reconciliation to the most  comparab le subtotal of the Statement of profit or loss. Aggregation and disaggregation and location of information The  standard  differentiate  between  “presentation”  within  primary  finan cial  statements  and  “disclosure”  within  notes  to  f i nan cial  statements  and  prescribes  which  items  shall  be  presented  and  whi ch  shal  be  presented  and/or  disclosed.  Aggregati on  and  disaggregation shall be done with reference to similar  and dissimilar characteristics and also with respect to  the materiality of the information. The amendments shall b e effective for annual p e riods  beginning 1 January 2027. The Bank is currently evaluating the impact of the new  stand ard on the Bank s´s primary financial statem e nts  and notes. (b) New standards and amendments to the existing standards with a minor or no impact on the Bank •  IFRS 19 Subsidiaries without Public Accountability:  Disclosures (effective for annual periods beginning  on or after 1 January 2027); •  Annual  Improvements  to  IFRS  Accounting  Standards – Volume 11 (effective for annual periods  beginning on or after 1 January 2026); •  Amendments to the Classification and Measurement  of Financial Instruments  –  Amendments to IFRS 9 and  IFRS  7 (effecti ve  for  annual  perio ds beginning  on or  after 1 January 2026). 5. SUMMARY OF MATERIAL ACCOUNTING POLICIES The  Bank  appli e s  accounting  policies  consistently  with  the  exception  described  in  chapter  5.1 Changes  in  accounting  policies.  These  changes  resulted  from  the  adop tion  of  new  standards  or  amendments  as  listed  below.  However,  none  of  those  standards  or  amendments  have  material  impact  on  the  Bank’s  finan cial statements. 5.1 CHANGES IN ACCOUNTING POLICIES – NEWLY EFFECTIVE AND ENDORSED IFRS ACCOUNTING STANDARDS The  following  ame ndments  to  the  existing  standards  issued  by  the  International  Accounting  Standards  Board (IASB) and adopted by the EU are effective for the  current  reporting  perio d .  Their ado ption  has  not  had any material impact on the disclosures or on the  amounts reported in these financial statements. •   A mendments  to  IAS  1  Presentation  of  Financial  Statements  –  Classification  of  Liabilities  as  Current  or  Non-Current  and  Classification  of  L iabilities  as  Current or Non-Current – Deferral of Effective Date  (effective  for  annual  periods  beginning  on  or  after  1 January 2024); •   Amendments  to  IAS  1  Presentatio n  of  Financial  Statements – Non-Current Liabiliti e s with Covenants  (effective for annual periods beginning on or after  1 January 2024); •  Amendments to IAS 7 Statement of Cash Flows and  IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements (effective for annual periods beginning on or after 1 January 2024); •  Amendments to IFRS 16 Leases – Lease Liability in  a Sale and Leaseback (effective for annual periods  beginning on or after 1 January 2024). 5.2 FOREIGN CURRENCY The  separate  financial  statements  are  presented  in  the  Czech  Koruna  (CZK),  which  is  also  the  Bank’s  functional currency. Transactions in foreign currencies  are translated into the functional curren cy of the Bank  at the exchange rates published by the Czech National  Bank at the date of the transactions. Foreign  exchange  gains  and  losses  resulting  from  the  settlement of such transactions and from the translation  of monetary assets and liabilities denominated in foreign  currencies at year end exchange rates are re cognised in the  profit or loss in “Ne t income from financial operations”. 238 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 5.3 INTEREST Interest  income  or  expen se  from  all  interest-bearing  finan cial  instruments  recognised  using  the  effective  interest  rate  is  reported  in  the  profit  or  loss  in  th e  line items “Interest and similar income” and “Interest  expens e  and  similar  charges”  resp ectively  as  part  of  revenue  and  expenses  from  continuing  operations.  Additionally,  interest  income  and  expense  fr om  hedging derivatives is reported in the same lines. The  effective  interest  rate  method  is  a  method  of  calculating  the  am ortised  cost  of  a  financial  asset  or  a  finan cial liability.  The  effective  interest  rate is a  rate that exactly discounts the estimated future cash payments  and  receipts  through  the  expected  life  o f  the financial asset o r financial liability to their carrying  amount. When calculating the effective interest rate,  the  Bank  estimates  future  cash  flows  con sidering  all  contractual  terms  of  th e  fi nan cial  instrument  and  includes  transaction  costs  and  fees  paid  or  r eceived  that are an integral part of th e effective interest rate  but excludes future credit losses. Transaction  costs  include  incremental  costs  that  are  directly attributable to the acquisi tion or issue of the  finan cial asset or financial liability. Interest income and expense presented in the profit or loss include: •  Interest  on  financial  assets  and financ ial  liabilitie s  measured  at  amortise d  cos t  calculated  on  an  effective interest rate basis; •  Interest  o n  interest r ate  derivatives designated as  hedging  derivatives  using  the  contractual  interest  rate of the corresponding derivative. If the financial asset is consid e red impaired, the interest  income representing the time value of money between  the impairment event and the estimated recovery date  continues to  be recognised using the effective interest  rate method (unwinding) and the effective interest rate  is applied on the financial asset’s net carrying amount.  The Bank calculates the unwinding for the peri od using  an  individual  deal-by-deal  approach  and  individual  effecti ve interest rates. 5.4 FEES AND COMMISSIONS Fee  and  commission  income  from  contracts  with  customers  is  measured  based  on  the  consideration  specified  in  a  contract  with  a  customer.  The  Bank  recognises  revenue  when  it  transfers  co ntrol  over  a service to a customer. The  foll owing  is  a  description  of  principal  activities  of  the  Bank  including  their  nature  and  timing  of  the  satisfaction  of  performance  obligation  in  contracts  with customers, as well as  significant  p ayment terms  and related revenue rec ognition policies. The Bank provides banking an d lending and distribution  of  third-party  p roducts  to  retail  or  commercial  custom e rs,  such  as  account  management,  provisio n  of  overdraft  facilities,  fo reign  currency  transactions,  credit cards, lending services and inventory financin g,  distributing asset management and insurance products. Fees  and  commissi ons  paid  o r  received  that  are  directly  attributable  to  the  issue  or  acquisition  of  a financial asse t or financial liability are an integral part  of the effective interest rate on that financial asset or  finan cial liability and are included in the measurement  of the effective interest rate. Revenue from commission- based fees for arranging the  sale  of third  party  insurance and  i nvestment products  is r ecognised at the point in time when the respective  contract  is  concluded.  The  Bank  has  evaluate d  that  it  acts  as  an  agent  as  the  B ank  does  not  control  the  provided services that are transferr ed to the customer  (the  Bank  does  not  integrate  the  related  se rvices  and  does  not  have  discretion  in  establishing  the  price).  Therefore, the Bank recognises only th e net amount of  expected  consideration  as  revenue.  The  commission  fee  is  typically  derived  from  the  volume  of  arranged  contract as well as the respective contract performance.  The Bank has evaluated that the performance-based fee  shall not be included in the measurement of transaction  price  as  variable  con sideration,  bec au se  collection  of  the  fee  is  highly  susceptible  to  factors  outside  the  Bank’s  influence.  The  Bank  recognises  performance- based  fees  when  confirmed  by  the  respective  third  party. Commission fees that are subject to claw-back are  recognised only to the extent that it is highly prob able  that a significant reversal in the amount of revenue will  not occur (historical data are used for evaluation). The  Bank has concluded that respective liability does not give  rise to ac counting of a significant financing compo nent  because it arises for reasons other than the provision of  finan ce to the Bank. Revenue  from  servicing  fees  and  fees  for  ongoing  deposit  and  lending  account  maintenance  are  charged to customer’s account on a regular basis and  recognised over time as the customer simultane ously  consumes  the  respective  benefits.  The  Bank  applies  different fees for each custom e r se gment and service  level.  Revenue  from  servicing  fees  is  recognised  on  a straight-line basis. The contracts, with the exception  of  ter m  deposits,  do  not  have  a  minimal  committed  duration  period.  In  the  case  of  contracts  with  the  Bank’s clients, the fees are settled from their accounts or through the regular perio dic repayments. In the case  of third parties the Bank applies the standard payment  conditions for the financial in dustry sector. 239 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  Bank  does  not  provide  service  in centives  (such  as  temporary  service  discounts)  that  would  give  rise  to recognition of a contract asset. The Bank does not  receive  any  non -refundable  upfront  payments  from  its  cus tomers  that  would  give  rise  to  r ecognition  of  a  respe ctive  contract  liability  or  customer  option  or  significant fi nan cing component. Incremental distribution costs paid for the acqui sition  of  deposit  contracts  (current  accounts  and  savings  accounts)  are  recognised  as  an  asset  and  amortised  over  the  peri od for  which  a  customer  is  exp ected  to  receive the respective services. The Bank has evaluated  the expected amortisation period to five years. Commissions paid for the origination of term deposits and respective o pening fees are part of the amortised  cost  of  the  financial  liability  to  customers  and  are  linearly amortised (linear amortisation is used due to  immaterial differen ce to effective interest rate method  in the case  o f deposit pr oducts) until the expiry of the  term  deposit  in  the  pro fit  or  loss  line  item  “Interest  expens e and similar charges”. Revenue from tr ansaction-based fees is given mainly by  interchange fees relate d to card transactions, foreign  currency transactions and other payment transactions. The revenue is recognised at a point in time when the  related transaction is performed. Fee income on impaired finan cial assets is recognised  on  receipt  of  cash  or  performance  of  the  service  obligation, whichever is later. The  Bank  has  decided  to  apply  practical  expedient  IFRS  15.121  and  is  no t  disc losing  information  on  the  aggregated  amount  of  the  remaining  tr ansaction  price  for  servicing  and  commission  revenues  as  the  enforceable  duration  of  the  respective  contract  is  less  than one  year  and the  right  to  consideration for  ser v icing  and  commission  contracts  corresponds  directly with the value prov ided to customer. 5.5 DIVIDENDS Dividend  income  is  recognised  when  the  right  to  receive the payment is estab lished. Dividend incom e is  reported in the profit or loss in the line item “Dividend income”. 5.6 FINANCIAL ASSETS AND FINANCIAL LIABILITIES 5.6.1 Recognition The  Bank initially re cognises financial assets measured  at amortised cost on the date on which they originate.  All  other  financial instruments are  recognised  on the  trade date which is the date the Bank beco mes a party  to the contractual provisions of the instrument. All financial instruments are initially recogni sed at their  fair  value  plus ,  for an  item  not  at  fair  value  through  profit  or  loss,  transaction  costs  that  are  directly  attributable to its acquisition or issue. 5.6.2 Classification of Financial Assets 5.6.2.1 Debt Instruments Debt  instrume nts  include  loans  and  rec eivables  (disclosed especially in the lines “Loans and rec eivables  to banks“, “Loans and receivables to customers”) and  debt  securities  (disclosed  in  the  line  “Investment  securities”). They are classified into one of the following  measurement categorie s: •  Amortised cost; •  Fair  value  through  other  comprehensive  inco me  (FVTOCI); or •  Fair value through profit or loss (FVT PL). Classification  is  base d  o n  the  as sessment  of  the  business model under which the asset is held and on the  asses sment of the contractual cash flow characteristics  of the instrum e nt. The B ank has defined its business models as follows: •  Held  to  collect  (HTC)  –  the  busines s  model  for  financial assets acquired with the intention of being  held until maturity and to collect contractual cash flows.  Sales, which are  insignificant or infrequent,  related to the management of increased credi t risk  of  the  asset,  or  close  to  maturity  of  the  financial  assets are considered to be consistent with the HTC business model. •  Held to collect and sell (HTCS) – the business model  for  financial assets acquired  with  the  intention  to  be held to collect contractual cash flows and to be  sold. More fr equent sales within this portfolio are  expected, mainly fo r the purpose of managin g the  Bank’s liqui dity needs. •  Other busines s models for financial assets neither  classi fied as HTC nor HTCS. Currently,  the  Bank  holds  all  debt  financial  assets  within the HTC business model except an insignificant  portion  of  securities  measured  at  fair  value  through  profit or loss (FVTPL). Contractual cash  flow characteristics are assessed by  analysing the contractual features of the financial asset to  determine  whether  they  are  connected  with  cash  flows con si stent with a basic lending arrangement, i. e.  comprising  solel y  payme nts  of  principal  and  interest  240 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 from  the  principal  amount  outstanding  (SPPI  test).  Principal  is  the  fair  value  of  a  financial  asset  at  the  initial  recognition  and  it  changes  due  to  repayments  over time. Interest repr e sents a consideration for the  time  value  of  money,  p rofit  margin,  credit  ri sk   and  other basic lending risks. If a financial asset does not  pass the SPPI test it is measured at fair value through  profit or loss (FVTPL). Debt instruments measured at amortised cost Debt  instruments  are  measured  at  amortised  cost  if  they  are  held  within  a  business  model  whose  objective  is  held  to  coll ect  (HTC)  contractual  cash  flows  where  those  cash  flows  represent  solely  payments  of  principal  and  interest.  After  the  initial  measurement,  debt  ins truments  in  this  cate go ry  are  carri ed at  amortised cost using the effec tive interest  rate method. The effective interest rate is the rate that  discounts estimated future cash payments or rec eipts  through the expected life of the financial asset to the  carrying  amount.  Amortised  cost  is  calculated  t aking  into account any discount or p remium on acquisition,  transaction costs and fees that are an integral part of  the effective interest rate. Interest income from debt instruments measured at amortised cost is recorded in  profit or loss in the line “Interest and similar income”. Impairments  on  d e bt  instruments  measured  at  amortised  cost  are  calculated  using  the  expected  credit  loss approach. Loans and receivables and debt  securities measured  at  amortised  cost  are  presented  net of the allowance for credit losses in the st atem e nt  of fi nancial position. Debt instruments measured at FVTOCI Debt  instruments  are  measured  at  FVTOCI  if  they  are  held within  a  business  model  held  to collect  and  sell  (HTCS),  w here  the  assets’  cash  flows  represent  payments  that  are  solely  payments  of  principal  and  interest.  Subsequent  to  initial recognition, unrealised  gains  and  losses  on  debt  instruments  measured  at  FVTOCI  (excl.  the  related  expected  credit  losses  which are dir ectly recognised in the profit or loss) ar e  recorded in other comprehensive income (OCI). Upon  derecognition, realised gains and losses are reclassified  from OCI to profit or loss. Currently, the Bank did not classify any debt ins trument as FVTOCI. Debt instruments measured at FVTPL Debt  instruments  are  measured  at  FVTPL  if  they  are  held within other business models or do no t meet the  SPPI  test.  Subsequent  to  initial  recognition,  all  gains  and  losses  on  debt  instruments  measured  at  FVTOCI  are recognised in the line “Net income from financial  operations”. 5.6.2.2 Equity instruments Equity instruments are disclo sed in the line “Investment  securities”.  Th ey  are  measured  at  FVTPL,  unless  an  election is made  to  designate them at  FVTOCI at  the  initial recognition or at the date of transition to IFRS 9. All  equity  instrum e nts  are  measured  at  fair  value.  In  case  that  there  are  no t  eno ugh relevant or  actual  inputs for fair value determination, the Bank uses the  instrument‘s cost as the best availabl e estimate of the  instrument‘ s fair value. For equity instruments measured at FVTPL, c hanges in  fair value are reco gni sed in the profit or loss in the line  “Net income from financial operations”. For equity instruments for which the Bank  decided for  the  irrevocable  option  provi ded  by  IFRS  9  to  classify  it as at the date of transiti on as FVTOCI all gains and  losses  resulting  from  FVTOCI  equity  instruments  including  when  derecognis ed or  sold are  recorded  in  OCI and are not subsequently reclassified to profit o r  loss.  Nevertheless,  dividends  received  from  FVTOCI  equity instruments are disclosed in the profit or loss in  the line “Dividend income”. 5.6.2.3 Derivatives Derivatives  are  measured  at  FVTPL,  changes  in  fair  value  ar e  recognised  in  the  profit  or  loss  in  the  line  “Net  income  from  financial  operations”.  For  more  details s ee note 5.6.9. 5.6.3 Classification of Financial Liabilities The  Bank  classifi es  its  non-derivative  financial  liabilities,  other  than  financial  guarantees  and  loan  commitments,  at  amortised  cost.  Non-der ivative  finan cial  liabilities  are  contractual  arrangements  resulting  in  the  Bank  having  an  obligation  to  either  deliver cash or another financial asset to the holder. Classification  of  derivative  financial  liabili ties  is  presented in note 5.6.9. 5.6.4 Reclassification Generally,  the  Bank  does  not  reclassif y  any  f i nan cial  asset or liabilities after initial recognition. 5.6.5 Derecognition The  Bank  derecognises  a  financial  asset  when  the  contractual  rights  to  receive  cash  flows  from  the  finan cial  assets  expi re  or  the  rights  to  receive  th e  contractual  cash  flows  and  substantially  all  the  risks  and  rewards  of  own e rship  have  been  transferred  or  when subst antially modified. 241 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 On derecognition the difference b etween the carrying  amount of the asset and the sum of the consideration  received and any cumulative gain or loss recognised in other comprehensive income is recognised in profit or  loss.  Any  cumulative gain  or  loss  recognised in  other  comprehensive income  re lating  to  equity  investment  securities  designated  at  FVTOCI  is  not  r ecognised  in  profit  or  loss  on  the  derecognition  but  re mains  recognised in other comprehensive income. The  Bank  derecognises  financial  liabilities  when  the  obligation under the liability as specified in the contract  is discharged, cancelled or expired. 5.6.6 Modifications In  terms  of  modification  of  conditions  of  a  financial  asset  (e.g.  change  in  interest  rate  not  at  refix  date  or  renegotiation  of  the  contractual  terms)  the  Bank  evaluates  whether  the  cash  flows  of  the  modi fied  finan cial  asset  are  substantially  different.  If  th ey  are  substantially different (net present value of the modified  finan cial asset differs by more than 5% from net present  value of the original financial asset) the n  the ori gi nal  finan cial asset is  derecognised and  the  new  financial  asset  is  recognised .  Th e  fees  that  are  considered  in  determining  the fair  value of the  new  asset  and  fees  that  represent  reimbursement  of  eligible  transaction  costs  are  included  in  the  initial  measurement  of  the  asset;  and  other  fees  are  included  in  pro fit  or  loss  as  part  of  the  gain  or  loss  on  derecognition.  Whe n  modification results in derecognition, a  new financial  asset is recognised and allocated to a stage as per risk  management assessment. If  the  cash  flows  of  a  modified  financial  asset  are  not  subst antially  different  from  cash  flows  from  the  original  financial  asset,  then  the  original  financial  asset remains to be recognised but the gross carrying  amount i s recalculated using the modified cash flows  using the original effective interest rate of the asset.  The  resulting  difference  between  the  original  gross  carrying  amount  and  the  recalculated  gross  carry i ng  amount  is  recognised  as  modification  gain  or  loss  in  profit or loss. 5.6.7 Offsetting Financial  assets  and  financial  liabilities  are  offs et  and the net amount is presented in th e statement of  finan cial position when, and only when, the Bank has  a legal right to set off the amounts and it intends either  to settle them on a net basis or to realise the asset and  settle the liability simultaneously. Income and expens es are presented on a net basis only  when permi tted under IFR S A ccounting Standards. 5.6.8 Amortised Cost Measurement The  amortised  cost  of  a  financial  asset  or  financial  liability  is  the  amount  at  which  the  asset  or  liability  is  measured  at  initial  re cognition,  minus  princ i pal  repayments , plus or minus the cumulative amortisation  using  the  effective  interest  method  of  any  difference  between the initial amount recognised and the maturity  amount, minus any allowance for expe cted credit los ses. 5.6.9 Derivatives and Hedge Accounting Derivatives  are  initially  recognised,  an d  are  subsequently r e measured, at fair value. Fair values of  deriv atives are obtained by using valuation techniques.  The  Bank  designates  at  inception  certain  derivatives  as hedging instruments acco rding to IAS 39 (the Bank  continues to apply the hedge accounting requirements  of IAS 39 as allowed by IFRS 9) and other derivatives ar e  held for trading despite being held for r isk management  purposes rather than speculative purposes. (a) Derivatives classified as held for trading A derivative  that is not designated and effective as a  hedging  i n strument  measured  at  fair  value  through  profit  or  loss  and  reported  in  the  lin e  “Derivative  finan cial  instruments  with  positive/negative  fair  values”  (derivatives  with  p ositive  fair  values  within  assets,  derivatives  with  negative  fair  values  within  liabilities).  These  derivatives  include  currency  and  interest rate derivatives (swaps and forwards) and  are  carri ed as assets when their fair value is positive and  as liabilities when th eir fair value is negative. Changes  in derivatives’ fair values and all interest revenues and  expens es  are  reported  in  the  profit or  loss line  “Net  income f rom financial operations”. (b) Derivatives designated as hedging instruments The  Bank  continues  to  apply  the  he dge  accounting  requirements  of  IAS  39  as  allowed  by  IFRS  9.  Hedge  accounting is applied if, and only if, all of the following  conditions are met: •  The  hedge  i s  in -line  with  the  approved  Bank’s  Hedging Strategy; •  The hedging relationship is formally documented at  the inception; •  The  hedge  effectiveness  can  be  objectively  and  reliably measured; •  The  hedge  is  expected  to  be  highly  effective  at  inception and throughout its life. Fair value hedges on interest rate risk and foreign exchange risk The Bank designates at initial recogniti on interest rate  swap or cross-currency interest rate swap derivatives  242 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 as hedgi ng instruments.  Either to hedge i ts exposure  to the change in the fair value of a defined part of the port folio  of  loans  to  customers,  loan  commitments,  purchased or issued bonds, loans received from banks  or customer deposi ts  related to interest rate risk, that  could affect profit or loss or to hedge purchased bonds  or  the  Bank  uses  c ross-currency  interest  rate  swaps  to  hedge  purchased  bonds  or  loans  denominated  in  foreign  currencies.  On  the  designation  of  the  hedge,  the Bank formally documents the relationship between  the hedging instrument and hedged item, including the  risk management objective and strategy in und e rtaking  the hedge, together with the method that will be used  to  assess  the  effectiveness  of  the  hedge  relationship  at  the  incepti on  and  on  an  ongoing  basis.  T he  Bank  applies  for  hedge  relationships  a  fair  v alue  hedge  of  the  defined  hedged  i tem  (micro  hedge)  as  well  as  a  port folio fair value hedge (macro hedge). The hedge is considered to be effective when a change  in the fair valu e of the hedged item compared to the  change in  the  fair value  of the  hedging  instrument is  within a range of 80-125%. Change in clean fair value excluding accrued interest of  a derivative, which is designated as a fair value hedge,  is booked daily to the profit or loss and presented in  the  line  “Net  income  from  financial  ope rations”  to  match the change in fair value of the hedged portfolio.  Accrued interest from hedging de rivatives is recognise d  in  the  profit  or  loss  in  the  line  “Interest  and  similar  income”,  or  in  the  case  of  hedged  deposit  products  in  the  line  “Interest  expense and  si milar  charges”, to  match the interest income or expense from the hedged  port folio or hedged item. In the case of hedging foreign currency ri sk chan ge in  fair value attributable to r isk being hedged is booked to  the profit or loss and presented in the line “Net income  from financial operations”. In the statement of financial position, derivatives with positive  fair values  (total  fair value including accrued  interest)  are  presented  in  the  lin e  item  “Hedging  deriv atives with positive fair values ”, derivatives with  negative fair valu es (total fair value including accrued  interest) are presented in the line “Hedging derivatives  with negati ve fair values”. If the hedgi ng instrument expires, is sold, terminated  or exercis ed, or the hedge no longer meets the criteria  for  hedge  accounting,  th e  hedge  relationship  is  discontinued . In this case, the fair value adjustment to  the carryin g amount of the hedged item is am ortised  to profit or loss on a straight-line basis under the line  “Interest and similar income”. 5.6.10 Impairment of Financial Assets The Bank measures allowance for credit losses, using an  expected cre dit loss approac h as required under IFRS  9, for the following categories of financial instruments: •  Amortis ed cost financial assets; •  Debt securities classified as measured at F VTOCI; •  Undrawn loan commitments. Financial assets migrate through the three stages based  on the change in credit risk since initial recognition. Expected credit loss impairment model (ECL) The  Bank’s  allowance  for  credit  loss  calcul ations  are  outp uts  of  models  with  a  number  of  underlying  assumptions  regarding  the  choice  of  variable  inputs  and their interde pendencies. The expected credit loss  impairment  model  reflect s  the  present  value  of  all  cash shortfalls related to def ault events either (i) over  the following twelve months or (ii) over the expected  life  of  a  financial  ins trument  depending  on  cr edit  deterioration from inception. The allowance  for credit  losses  reflects  an  unbiased,  probability-weighted  outcome whi ch considers multiple scenarios based on  reasonable and supportable forecasts. The impairment model measures credit loss allowances  using  a  three- stage approach based  on  the extent of  credit d eterioration since origination: •  Stage 1 – If there has not been a significant increase  in  credit  risk  (SICR)  since  ini tial  recognition  of  a  financial  instrument,  a  loss  allowance  at  an  amount equal to 1 2-month expe cted credit losses  (expected  credit  losses  that  result  f rom  those  default events on the financial instrument that are  possib le within 12 months after the reporting date)  is  recorded.  Interest  revenue  is  recognised  using  the  effective interest  rate  method  applied on  the  financial asset’s gross car rying amount. •  Stage 2 – When a financial instrument experiences a  SICR subsequent to origina tion but is not c onsidered  to be in d efault, a loss allowance at an amount equal  to  full  lifetime  expected  credi t  losses  (expected  credit  losses  that  result  from  all  po ssible  def ault  events  over  the  life  of  the  financial  instrument)  is  recorded.  Interest  revenue  is  recognised  using  the  effective interest  rate  method  applied on  the  financial asset’s gross car rying amount. •  Stage 3 – Financial instruments that are considered  to be in default are included in this stage. Similarly  to Stage 2, a loss allowance at an amount equal to  the full lifetime expected credit losses is recorded.  Interest  revenue  is  recognised  using  the  effective  interest rate method applied on the financial asset’s  net carrying amount. 243 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Measurement of expected credit loss The  probability  of  default  (PD),  exposure  at  default  (EAD),  and  loss  given  default  (LGD)  inputs  used  to  estimate expected credit loss es are modelled based on  macroeconomic variables that are most closely related  to  credit  losses  in  the  relevant  portfolio.  Details  of  these statistical param eters/inputs ar e as follows: •  PD – The probability of default is an estimate of the  likelihood of default over a given time horizon. •  EAD  –  The  e xposure  at  default  is  an  estimate  of  the  exposure at  a futur e  default date, taking  into  account expected changes in the exposure after the  reporting  date,  including  repayments  of  principal  and  interest,  wh ether  scheduled  by  contract  or  otherwise,  expected  drawdowns  on  committed  facilities,  and  accrued  interest  from  missed  payments. •  LGD – The loss given default is an esti mate of the  loss ari si ng in the case where a default occurs at a  given  time.  It is based on  the  difference  between  the contractual cash fl ow s due and those that the  lender would expect to receive, including from the  realisation of any co llateral. The  measurement  of  expected  credit  l osses  for each  stage  and  the  assessment  of  significant  i ncreases  in  credit risk considers information about past events and  current conditions as well as reasonable and supportable  forec asts  of  future  events  an d  economic  conditions.  The  estimation  and  application  of  forward-looking   information require significant judgement. Presentation of allowance for credit losses (ACL) in the statement of financial position •  Financial  assets  measured  at  amortised  cost:  ACL  is deducted from the gross carryi ng amount of the  financial assets; •  Debt  instruments  measured  FVTOCI:  no  ACL  is  recognised  in  the  statem e nt  of  financial  po sition  because the carrying value of these assets is their  fair  value.  However,  the  ACL  is  presented  in  the  accumulated OCI; •  Off-balance sheet credit risks (e.g. credit c ards with  undrawn  limit):  In  the  case  that  the  determined  expected  credit  loss  exceed s  the  gross  carrying  value of  the financial asset the excess is recognised  as a provision . Purchased or originated credit-impaired financial assets (POCI) Financial  assets classified  as  POCI  are  always  subject  to  lifetime  allowance  for  credit  losse s.  At  initial  recognition  expected  credit  loss  is  initially  reflecte d  in  the  credit-adjusted  effective  interest  rate.  As  a result, n o loss allowance is recognised at inception.  Subsequently  only  negative  changes  in  lifetime  expected credit losses are r ecognised as allowance for  credit losses, whilst positi ve changes are reco gni sed as  impairment gains increasing the gross carrying amount  of such financial assets. Management overlay Management  overlay  allows  management  of  the  Bank  to  override  results  of  ECL  models  in  the  case  that  these  models  are  not  able  to  timely  respond  to  changes  in  economic  envi ronment.  Applic ation  of  management  overlay  is  subject  of  approval  process,  detail documentation and monitoring. 5.7 REPURCHASE AND REVERSE REPURCHASE AGREEMENTS The  Bank  enters  into  contracts  to  sell  and  buy  back  finan cial instruments at a specific future date (repo) or  to buy and s e ll back financial instruments at a  specific  future date (reverse repo). In  repo  transactions  the  securities  provided  by  the  Bank  continue  to  be  recognised  and  reported  in  the  statement  of  financial  position  as  the  Bank  retains  substantially  all  the  risks  and  rewards  of  ownership  together with all coupons and other income payments  received  during  the  period  of  the  repo  transaction.  The co rresponding cash  r eceived is recognis ed in the  statement  of  financial  position  and  a  corresponding  obligation  to  return  it  (includi ng  accrued  interest)  is  recorded as a liability. Securities purchased as a reverse repo transaction are  not recognised in the statement of financial position.  The  consideration p aid (including accrued  interest) is  recorded in the statement of financial position as “Loans and receivables to banks” o r “Loans and receivables to  custome rs”. The Bank is allowed to provide securities  received  in  reverse  repo  transactions  as  collateral  or  sell them,  even  in  the absence  of default by  their  owner. The difference between the sale and repurchase price  or b etween the purchase and resale price is treated as  interest and recognised in net interest income over the life of the agreement. 5.8 FAIR VALUE MEASUREMENT Fair value is the price the Bank would receive to sell an  asset or pay to transfer a liability in an orderly transaction  with a market participant at the measurement date in  the principal or, in its absence, the most advantageous  market to which the Bank has access at that date. 244 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 In the absence of active markets for the identical assets  or  liabilities,  such  measurements  involve  developing  assumptions  based  on  market  observable  data  and,  in the absence of such data, internal information that  is  consistent  with  what  market  participants  would  use  in  a  hypothetical  transaction  that  occurs  at  the  measurement date. Observable inputs reflect market data obtained fr om  independent  sources,  while  unobservab le  inputs  reflect  the  Bank’s  market  assumptions.  Prefere nce  is  given to observable inputs. These two types of inputs  create the following fair value hierarchy: •  Level 1 – Quoted prices for identical instruments in  active markets. •  Level  2  –  Quoted  prices  for  similar  instruments  in  active markets; quoted prices for identical or similar  instruments in markets that are not active; and model- derived  valua tions  whose  inputs  are  ob servable  or  whose significant value drivers are observable. •  Level 3 – Significant i nputs to the valuation model  are unobservable. The  Bank  maintains  policies  and  procedures  to  value  instruments. In ad dition, the Bank has risk management  teams that review valuation, inc luding independent price  validation for certain instruments (e.g. treasury bills). Fair values of financial assets and liabilities that are not  presented in the Bank’s balance sheet at fair values are  shown in note 44. 5.9 PROVISIONS A provision is recognised by the Bank wh e n: •  It  has a present ob ligation (legal or constructive) as  a result of a past event; and •  It  is  probable  that  an  o utflow  of  resources  embod ying  economic  benefits  will  be  required  to  settle the obligation; and •  The Bank can  reliably estimate the amount of the  obligation. Provisions  are  reported  in  th e  statement of  financial  position  and  include  provisions  for  expected  credit  losses (loan commitments) and provisions for litigati on  and  other  obligatio n s.  Gains  and  losses  related  to  provisions  are  reported  base d  on  their  substance.  Provisions are disclosed in note 36. 5.10 LEASES At inception of a contract, th e Bank assesses whethe r  a  contract  is,  or  contains,  a  lease.  A  contract  is ,  o r  contains,  a  lease  if  the  contract  conveys  the  right  to  control  the use  of an  identified asset  for  a  perio d  of  time in exchange for consideration. To assess whether  a contract conveys  the  right to control the  use of an  identified asset, the Bank uses the definition of a lease  in IFRS 16. (i) Bank as a Lessee At  initiation  or  modification  date  of  a  contract  that  contains  a  lease  component,  the  Bank  allocates  the  consideration in the contr act to each lease component  on the basis of its relative stand-alone prices. The Bank  accounts for each lease component within the contract separately i.e. lease and non-l eas e co mponents of the  contract  are  separated,  unless  practical  exp edient  is  applied. The  Bank  re cognises  a  right-of-use  asset  and  a  lease  liability  at  the  lease  commencement  date.  The  right-of-use  asse t  is  initially  measured  at  cost  w hich  comprises  the  initial  amount  of  the  lease  liability  adjusted  for  any  lease  payments  made  at  or  before  the  commencement  date,  plus  any  ini tial  direct  costs incurred and  an estimate  of  costs  to dismantle  and  remove  the  underlying  asset  o r  to  restore  the  underlying asset or the site on w hich it is located, less  any lease incentives received. The  right-of-use  asset  is  subsequently  depreciate d  using  the  straight-lin e  method  from  the  commencement date to the end of the lease term or  over the useful life of the underly i ng asset (in case the  lease  transfers  ownership of  the  underlying asset to  the Bank by the end of the lease term or the cost of the  right-of-use asset reflects that the Bank will exercise a purchas e option). In ad dition, the right-of-use asset  is  periodically  reduced  by  impairment  losses,  if  any,  and adjusted for  certain remeasurements of the lease  liability. The lease liability is at initial recognition measured at  the present value of fixed and variable lease payments that depend on an index or a rate, initially measured  using  the  index  or  rate  as  at  the  commencement  date net of cash lease incentives that are not paid at  the  commencement  date,  dis counted  using  the  rate  implicit in the lease contract, and where not av ailable,  using incremental borrowing rate. The  Bank  determines  its  incremental  borrowing  rate  based on market conditions for which it would obtain additional credit financ ing (loan or debt securities). Subsequently,  the  lease  liability  is  measured  at  amortised  cost  using  the  effective  interest  method.  It  is  remeasured  when  ther e  is  a  change  in  future  lease  payments  arising  from  a  change  in an  index  or  rate,  if  ther e  is  a  change  in  the  Bank’s  estimate  of  the amount  expecte d  to be  p ay able under a  re sidual  245 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 value  guarantee,  if  the  Bank  changes  its  assessment  of  whether  it  will  exercise  a  purchase,  extension  or  termination option or if there is a revised in-substance  fixed lease payment. In  case  the  lease  liability  is  subject  to  the  above  mentioned  remeasurement,  a  corresponding  adjustment  i s  made  to  the  carrying  am ount  of  the  right-of-use asset, and it is recorded in profit or loss if  the carrying amount of the right-of-use asset has been  reduced to zero. The Bank presents right-of-use assets that do not meet  the definition of investment property in “Property and  equipment“ and lease liabi lities in “Other liabilities“ in  the stateme nt of financial posi tion. The  Bank  has  el ected  not  to  recognise  right-of-use  assets and lease liabilities for leases of low-value assets  (up to CZK 100 thou sand) and short-term leases (up to  12 months), including I T equipment. The B ank recognises  the lease payments associated with these leases as an  expens e on a straight-line basis over the lease term. The Bank has not entered any long-term agreement of  purchase of goo ds or services exclusively produced for  the Bank such as Power Purchase Agreement (PPA). (ii) Bank as a Lessor The  Bank  accounts  for  sub-lease  contracts  separately  from the master lease. It assesses the lease classification  of a sub-lease with  reference to the right-of-use asset  arising from the master lease, n ot with reference to the  underlying asset. If a master lease is a short-term lease  to  which  the  Bank  applies  the  exemption  described  above,  the n  it classifies  the  sub-lease  as  an  operating  lease. Since  March  2024,  the  Bank  sub-leased  part  of  its  HQ  building  in  Prague.  T he  sub-lease  is  classified  as  an  operating  lease.  Rentals  re ceivable  are  spread  on  a  straight-line  basis  over  the  lease  periods  and  are  recognised in “Other operating income” The  Bank  als o  subleases  offi ce  premises  to  Bank’s  subsidiaries.  T hose  sub-leases  ar e  c l assified  as  operating  lease.  Rentals  receivable  from  subsidiaries  with operating leases are spread on a straight-line basis  over  the  lease  periods  and  are  recognised  in  “Other  operating income”. 5.11 PROPERTY AND EQUIPMENT Items of property and equipment are measured at cost  less accumulated deprec iation less impairment losses  over their estimated useful lives. Cost  includes  the  purchase  price  of  the  asset,  any  costs directly attributable to bringing the asset to the  location and  condition necessary  fo r  it to be  capable  of operating in th e manner intended by the Bank and  the  initial  estimate  of  the  costs  of  dismantling  and  removing the item. Property  and  equipment  is  depreciated  on  a  strai ght-line basis over their e stimated useful lives as  follows: Technical Improvements related to real estate 5-15 years 1) Furniture 4-10 years Equipment 5-10 years Cars 8 years Computers and servers 5-7 years ATMs 10 years 1)   Based on  the estimated duration of  use in accordance with the IFRS 16  lease agreement. Leasehold  improvements  are  depreciated  on  a   strai ght-line basi s over the shorter of the lease terms  or their remaining useful lives. Assets’ residual value s and use ful lives are monitored  and adjusted if appropriate at each financial statement  date. Property and equipment are subject to quarterly impairment  reviews  (see  note  5.14).  If  the  carrying  amount of the asse t exceeds its estimated recoverable  amount, the asset is adjusted accordin gly. Its estimated  recoverable amount is the higher of fair value including costs to sell and its v alue in use. The  Bank  presents  right-of-use  assets  resultin g  from  lease  agreements that  do  not  meet  the  definition  of  investment  property  i n  the  statement  of  financial  position in line “Property and equipment”. Gains  and  losses  on  disposals  are  determined  by  deducting  the  carrying  value  fr om  the  consideration  received.  Any  gain/loss  on  sale  is  recognised  in  the  profit or loss. 5.12 INTANGIBLE ASSETS Software Soft ware  acquired  by  the  Bank  is  measured  at  cost  less  accumulated  amortisation  and  any  accumulated  impairment losses. Expenditure  on  internally  develope d  software  is  recognised  as  an  asset  when  the  Bank  is  able  to  demonstrate its intention and ability to complete the  development and use the sof tware to generate f uture  economic  benefit s  and  the  cos ts  to  complete  the  development can be reliably measured. 246 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Internally developed software is state d  at capit ali sed  cost less accumulated amortisation and impairme nt. Purchased software and internally developed software  is amortised over its expected useful life that is usually  considered  to  be  5  years  when  recognise d  initially.  During its useful life  development is performed on the  software. This development prolongs the u seful li fe of  the software. The following table shows the weighted average of the  remaining usef ul life of software asse ts: Core systems 6 years Data warehouses 6 years Infrastructure 5 years Distribution channels 5 years Enterprise software 3 years Subsequent  expenditure  on  software  assets  i s  capitalised only wh e n it increases the future economic  benefits  embodie d  in  the  specific  asset  to  whi ch  it  relates. All other expenditure is expe nsed as incurred. Core deposit intangible (CDI) Core  deposit  intangible  resulting  from  the  Merger  represents the benefit of having a low-cost and stable  funding source to the Bank. In times when alternative sources  o f  funds  have  higher  rates,  co re  deposits  have  greater  worth  to  an  acquirer.  CDI  can  be  also  interpreted  as  an  intangible  asset  recorded  upon  acquisitions  to  capture  the  value  of  the  customer  relationships  th e  acquired  deposits  represent.  The  Bank amortises CDI linearly over 60 months beginning  with  initial  recognition.  Assessment  whether  circumstances triggering potential impairment is done  annually.  If  such  circumstances  are  identified  CDI  is  tested for impairment in line with note 5.14. 5.13 INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES Subsidiaries are entities directly or indire ctly controlled  by the  Bank,  i.e.  the  Bank  directly  or indirectly owns  more than 50% of the voting rights or has the power to  govern this entity as a result of another circumstances.  An  associate  is  an  entity  in  which  the  Bank  has  significant influence. The  Bank  evide nces  the  existence  of  significant  influence if one or more of the following points is met. The B ank: •  has  representation  on  the  board  of  directors  or  equivalent governin g body of the investee; •  participate  in  policy -making  proce sses,  including  participation in decisions about dividends or other  distributions; •  has material transactions with its investee; •  interchange  of  managerial  p e rsonnel  with  its  investee; •  provision of essential technical information with its  investee. The  Bank  uses  the  rebuttable  presumption  that  significant influence exists if the Bank holds between 20-50% of the voting rights. Investments in subsidiaries are measured at historical  cost  decreased  by potential accumulated impairment  losses.  The  Bank  asses ses  regularly  whether  there  is  any impairment loss by comparing the carrying values  of the investment with its recoverable amount. If the  recoverable amount is lower, the Bank recognises the  impairment loss. Investments  in  ass ociates  are  measured  using  the  equity method. 5.14 IMPAIRMENT OF NON-FINANCIAL ASSETS At  the  end  of  each  reporting  date,  the  Bank reviews  the  carrying  amounts  of  its  non-financial  assets  to  determine  whether  there  is  any  indication  of  impairment.  If  any  such  indication  exists  then  the  assets  recoverable  amount  is  estimated.  An  asset’s  recoverable  amount  is  the  higher  of  the  asset’s  fair  value  less  costs  of  disposal  and  its  value  in  use.  An  impairment loss is recognised if the carrying amount of  an asset exceeds its recoverable amount. Impairment losses are recognised in the profit or loss in  the  “Oth e r  operating  expenses”  (see  note  15).  An  impairment loss may be reversed to the extent it does  not exceed the carrying amount that would have been  determined if no impairment loss had been recognised. The Bank regularly monitors potential impacts resulting  from climate changes that could result into impairment  of  non-financial  assets.  Currently  there  are  no  such  impairment indicators.  5.15 EMPLOYEE BENEFITS Employee benefits include short-term bonus payments,  flexible  benefits  (Cafeteria),  remuneration  for  loyalty,  retention bonuses an d other unclaimed components of  remuneration. In 2017, a remuneration program Execu tive  Variable  Incenti ve  Plan  (EVIP)  was  introduced  for  the  Management  Board  members  and  other  Material  Risk  Takers, under which bonuses are partially linked to the  247 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 share price and the dividend (shareholder’s return). This  programme is an integral part of the Remuneration Policy  periodically reviewed and approved by sharehol ders at  least  once  every  4  years.  The  Remuneration  Policy  is  available on the investor relations web page. Detail ed terms and co nditions for the remuneration of  other employee s are governed by the Group directive  Remuneration Policy as approved by the Management Board. Executive Variable Incentive Plan (EVIP) for the Management Board members and other Material Risk Takers The  amount  of  the  variabl e  compensation  that  a  participant  receives  under  the  EVIP  in centive  programme is b ased the participant’s performance and  the  Bank’s  performance;  including  the  achievement  of  goals  and  objectives  set  by  the  Supervisory  Board  and  the  Chief  Executive  Officer  (whereas  the  Chief  Executive Officer is not invol ve d in the decision-making  regarding the setting of his own goals and objectives). A  portion of the remuneration is paid in cash (part in the  year after the assessment year and part is deferred up  to five annual instalments in the following years), and  the remainder is linked to the total shareholder r eturn  (TSR)  and spread  over  up  to  five  annual  instalments.  This  part  of  the  deferred  b onus  represents  a  share- based  payment  and  is  disclos ed  in  line  with  IFRS  2  Share-based  payments,  specifically  as  cash-settled  share-based  paym e nts.  For  more  detail s  about  this  programme please refer to the Remuneration Report.  The payou t of an insigni ficant bonus (up to CZK 500,000  for the calendar year) is excluded from provisions on  the deferred payou t and TSR adjustment.  Bonus payments are accrued over time when earned in the amount of the estimated future pay-out. EVIP Executive Long-Term Premium Awards As part of the new Remuneratio n Policy, the Supervisory  Board propos ed the EVIP Executive Long-Term Premium  Award to align Management Bo ard remuneration with  the  long-term  interests  of  shareholders.  This  award  replaces  the  previous  LTIP  pro gramme,  which  was  introduced in 2018 but had never been vested. The  EVIP  Executive  Long-Ter m  Premium  Award  is  granted on top of the EVIP bonus and is based on the  fulfilment  of  medium-term  financial  performance  targets  which  ar e  defined  and  publi shed  at  the  beginning  of  the  three-year  evaluation  cycle.  The  award i s de termined by the Supervisory Board upon the  proposal of the Remunerati on Committee and follows  the  principles  of  variable  remuneration,  including  risk-adjustment measures,  performance thr esholds, a  payout cap, and a five-year deferr al period. The  award  is  b ased  on  the  evaluation  of  t wo  key  performance indicators (KPIs): the average Return on  Tangible Equity, and the cumulative consolidated Profit  before  Tax,  both  measured  over  a  three-year  period.  The final award is further adjusted by the average TSR  over the  performance cycle, ensuring  alignment with  shareholder value creation. The maximum award amount is capped at 50% of the  Personal Variable Target for the EV IP Bonus. The first  EVIP Executive L ong-Term Premium Award was granted  in 2024 based on financial performance over the period  2021–2023, with performance targets set in line with  the  medium-term  guidance  publish ed  on  5  February  2021. Sales, collections and customer service incentives Sales  incenti ves  represent  a  performance-based  remuneration  to  the  employees  of  retail  and  commerc ial  banking  at  branches.  The  volume  of  the  sales  incentives  depends  on  the  fulfilment  of  quantitative  and  qualitative  performance  targets,  which  are  evaluated  and  p aid  quarterly.  Employees  providing sales and service over the phone or working in  selected  support  departments  are  evaluated  and  paid  on  a  monthly  basis.  Incentives  in  the  Structur e  Finance unit are paid o n an annual basi s. Collection  incentives  represent  a  performance  remuneration  for  employees  participating  in  the  collection  of  debts.  The  frequency  of  evaluation  of  performance  and  payments  of  incentives  is  on  a  monthly  (retail  receivables)  or  on  a  quarterly  basis  (commer cial receivables). The Bank recognises a liability as at the reporting date representing  the  sum  of  the  sales  incentives  in  the  fourth  quarter  and  the  amounts  deferred  from  the  previous r e porting periods. Flexible benefits (Cafeteria) Each  employee  of  the  Bank  selects  from  flexible  benefit offers upon his/her preference (including meal  allowance)  or  c ontribution  to  pension/life  insurance,  eventually its combination. Costs of flexible benef its are  recognised in the profit or loss line “Personnel expenses”  on a str aight-line basis over the accounting period. Retention programs Employees  involved  in  important  proje cts  or  having  a  significant  influenc e  on  the  operation  of  critically  important  processes  can  receive  a  motivation  award  under  predetermined  conditions.  Th e  liability  is  accrued on a monthly basis into expenses on the part  of remuneration to which the claim has already arisen  taking into account the probability of payment. 248 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 5.16 CASH AND CASH BALANCES AT THE CENTRAL BANK The line “Cash and cash balances at the central bank”  includes  current  accounts  and  time  deposits  with  the  Czech  National  Bank  (CNB),  cash  in  ATMs  and  in  branches.  The  Bank’s  mandatory  minimum  reserve  held by the CNB is also included within this line. In previous periods, the caption of the li ne was “Cash  and  balances  with  the  central  bank”.  Starting  from  2024, the caption of the line has been changed to “Cash and  cash  balances  at  the  central  bank”  w ithout  any  change to the items reported. 5.17 INCOME TAX AND DEFERRED TAX Income  tax  expense  comprises  current  and  deferred  tax. It is recognised in the profit or loss except to the  extent  that  it  relates  to  items  recognised  directly  in  equity or in other comprehensive income. Current Tax Current tax represents the tax expected to be payable  on  the  taxable  profit  for  the  year,  calculated  using  tax  rates  ena cted  or  substantively  enacted  by  the  balance sheet date, and any adjustment to tax payable  in  respect  of  previous  years.  Current  tax  assets  and  liabilities are offset when the Bank intends to settle on  a net basis and the legal right to offset exists. Deferred Tax Deferred  tax  is  recognised  on  temporary  differences  between  the carry i ng amounts of assets and liabilities  in the statement of financial position and the amounts  attributed to such assets and liabilities for tax purpo ses.  Deferred t ax liabilities are generally recognised for all  taxable temporary differences and deferred tax assets  are  recognised  to  the  extent  that  it  is  probable  that  future  taxable  profits  will  be  available  against  which  deductible  temporary  differences  can  be  utilised.  Deferred  tax  assets  are  reviewed  at  each  reporting  date and are reduced to the extent that it is n o longer  probable that the r e l ate d tax benefit will be realised. Deferred  tax  is  measured  at  the  tax  rates  that  are  expected to be applied to temporary differences when  they reverse, using tax rates enacted or substantively  enacted at the reporting date. Significant  temporary  and  timing  differences  arise  mainly  from  different  accounting  and  tax  valu e  adjustments  to  receivables,  provisions,  different  accounting and tax economic useful life o f tangible and  intangible assets and from the revaluation of financial assets. 5.18 SEGMENT REPORTING The  Bank  reports  segment  reporting  in  the  notes  to  consolidated financial s tatements that are part of this  Annual financial report. 5.19 FINANCIAL GUARANTEES AND LOAN COMMITMENTS Financial guarantees are contr acts that require the Bank  to make  specifie d  payments to reimburse the  h older  for a loss that it incurs because a  specified debtor fails  to make payment when it is due in accordance with the  terms of a debt instrument. Loan commitm e nts are firm  commitments  to  provide  credit  under  pre-specified  terms and conditions. Liabilitie s  under  financial  guarantee  contracts  are  recorded initially at their fair value, which is generally  the fee received or present value of the fee recei vable.  Financial  guarantee  liabilities  are  subsequently  measured  at  the  higher  of  the  initial  fair  value,  less  cumulative amortisation and the amount equalling the  expected  credit  loss  deter mined  in  acco rdance  wi th  IFRS 9 (see note 5.6.10). The provided guarantees are shown in note 40. 5.20 SUBORDINATED LIABILITIES Subordinated  liabilities  (bonds  and  de posits)  are  subordinated to all other liabilities of the Bank. As at  31 December 2024, it forms a fully or partially part of  the Tier 2 capital of the Bank as defined by the CNB for  the purposes of determination of its capital adequacy. These  instruments  are  initially  measured  at  fair  value  minus  incremental direct transaction costs and  subsequently  measured at  their  am ortised cost using  the effective interest m ethod. 5.21 MORTGAGE-BACKED BONDS Mortgage-backed  bonds  are  covered  by  mort gages  provided  to  clients  of  the  Bank.  These  instruments  were taken over as a part of the Merger. In  the  case  of  new  issuance,  these  instruments  are  initially measured at fair value minus incremental direct  transaction costs and subsequently measured at their  amortised cost using the effective interest method. Mortgage-backed bonds are presented in the statement  of fi nancial position in the line “I ssued bonds ”. 249 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Internally Issued Mortgage-Backed Bonds (on own books) The mortgage-backed bond s  are covered by mortgage  loans  provided  to  the  Bank’s  clients.  The  p urpose  of  the issuance of these bonds is only in case of potential  recovery  or  resolution  strategy  of  the  Bank.  In  such  events, internally held mortgage-backed bonds would be  used as collateral for a lombard loan or repo operations  predominantly  with  the  Czech  Natio nal  Bank  in  o rder  to  support  the  liquidity  position  of  the  Bank.  As  at  31 December 2024, the Bank did not realise any of these  above-mentioned operations and the mortga ge-backed  bonds were held internally, therefore, these bonds are  not recognised in the Statement of financial position. 5.22 OTHER ISSUED BONDS Other  is sued  bonds  are  represented  by  the  senior  preferred  bonds  which  are  in  compliance  with  the  minimum  requirement  for  own  funds  and  eligible  liabilities (“MREL”) requirement which was se t for the  Bank by the Czech Natio nal Bank. These  instruments  are  initially  measured  at  fair  value  minus  incremental direct transaction costs and  subsequently  measured at  their  am ortised cost using  the effective interest m ethod. Other issued bonds are presented in the statement of  finan cial position in the line “Issued bonds”. 5.23 BUSINESS COMBINATIONS UNDER COMMON CONTROL As  there  is  no  specific  guidance  in  IFRS  Accounting  Standards  for  business  combinations  under  common  control,  the  Bank  applies  method  wi thin  the  ass ets  and  liab i lities  that  these  are  measured  by  using  the  acquirer’s  book  values,  i.e.,  book  values  from  consolidated financial s tatements of the Group. 6. NET INTEREST INCOME CZK m 2024 2023 Inte rest income from financial assets measured at amortised cost 1) 1 9,017 17,484   Loans to customers 11,681 10,941     out of which: interest income from impaired loans 2) 151 129     out of which: penalty interest 15 12      out of which: EIR amortisation, modification/derecognition and amortisat ion of merger FV  adjustments (262) (211)   Loans to banks 4,139 3,975     out of which arising from repurchase and reverse repurchase agreements 4,066 3,867    Cash and cash balances at the central bank 3) 1 349    In terest income from investment securities at amortised cost 3,097 2,205    Other interest income 4) 99 14  Interest from hedging derivatives 1,575 3,006 Interest income and similar income 20,592 20,490 Inte rest expense from financial liabilities measured at amortised cost 1) (12,922) (12,734)   Due to banks (258) (168)   Due to customers (11,664) (11,632)    Subordinated liabilities (387) (282)    Mortgage-backed bonds (301) (381)   Oth er issued bonds 5) (283) (175)   Oth er interest expense 4) (29) (96) Inte rest from hedging derivatives (180) ( 584) Inte rest expense on lease liabilities (49) (33) Interest expense and similar expense (13,151) (13,351) Net interest income 7,441 7,139 1)   All  interest  income  and  expense  from  financial  instrum ents  at  amortised  cost  are  calculated  using  the  effective  interest  method.  Ther e  are  no  FVTOCI  interest-bearing instruments. 2)   In 2024, the Bank revised the methodology of reporting amounts of interest income from impaired loans. For the purpose of comparability, th e previous period  has been adjusted. 3)   The Bank Board of the CNB decided in Septe mber 2023 that it would discontinue remuneration of the mandatory minimum reserves. The decision became  effectiv e on 5 October 2023; prior to that, the mandatory minimum reserves were remunerated using the 2-week repo rate. 4)  Represents interest income or expen se respectively from received or provided collateral resulting from Credit Support Annex (CSA). 5)  MREL requirement eligible bonds are included. 250 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Analysis of deferred costs and fees directly attributable to the origination of new loan products that are an integral  part of the effective interes t rate and fair value adjustment of financial asse ts taken over as part o f the Merger: Year ended 31 Dec 2024 CZK m Balance at beginning of period Amortisation Derecognitions/ Modifications Additions to deferred fees 1) Additions to deferred costs Balance at end of period   Consumer Loans 39 (3) (11) (77) 73 21   Mortgages 1,502 (153) (37) (1) 39 1,350   Credit Cards & Overdrafts 10 (9) - - 11 12 Retail loans deferrals 1,551 (165) (48) (78) 123 1,383   Inves tment Loans 75 (16) (4) (12) 50 93   Working Capital (8) 8 - (10) 4 (6)    Unsecured Instalment Loans  and Overdrafts 102 (37) - (12) 47 100 Commercial loans deferrals 169 (45) (4) (34) 101 187 Total loan deferrals 1,720 (210) (52) (112) 224 1,570 1)  The majority is the loan account opening fee. Year ended 31 Dec 2023 CZK m Balance at beginning of period Amortisation Derecognitions/ Modifications Additions to deferred fees 1) Additions to deferred costs Balance at end of period   Consumer Loans 63 (7) (2) (63) 48 39   Mortgages 1,639 (143) (8) (4) 18 1,502   Credit Cards & Overdrafts 12 (9) - - 7 10 Retail loans deferrals 1,714 (159) (10) (67) 73 1,551   Inves tment Loans 73 (12) (5) (14) 33 75   Working Capital (3) 9 - (18) 4 (8)    Unsecured Instalment Loans  and Overdrafts 98 (34) - (8) 46 102 Commercial loans deferrals 168 (37) (5) (40) 83 169 Total loan deferrals 1,882 (196) (15) (107) 156 1,720 1)  The majority is the loan account opening fee. 7. NET FEE AND COMMISSION INCOME CZK m 2024 2023 Insurance 1) 1,161 1,149 Investment funds 2) 738 331 Penalty fees (incl. early termination  fee s) 251 221 Deposit servicin g fees 267 252 Lending servicing fees 231 216 Transactional and other fees 827 792 Fee and commission income 3,475 2,961 Fee and commission expense (641) (579) Net fee and commission income 2,834 2,382 1)   The  line  “Insurance“  includes  especially  commissions  on  payment  protection  insurance,  car  insurance  (Casco  and  third  party  liability  insurance),  travel  insurance,  accide nt  insurance,  life  insurance  and  pension funds. 2)   The  amount  of  received  fees  se rve s  as  the  base  for  the  calculation  of  co ntribution of the Bank to the Investor Co mpensation Fund. 8. DIVIDEND INCOME CZK m 2024 2023 Dividends from investments in  subsidiaries 1) 1,685 1,294 Dividend income 1,685 1,294 1)   Divid ends  from  investments  in  subsidiaries  includes  dividend  fro m  MO NETA Leasing, s.r.o. in the amount of CZK 113 million in 2024 (2023:  CZK 133 mil lion) MONETA Auto, s.r.o. in the amount of CZK 472 million in  2024 (2023: CZK 600 million) and MONETA Stavební Spořitelna, a.s, in the  amount of CZK 1,100 million in 2024 (2023: CZK 557 million) as described  in note 30. 251 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 9. NET INCOME FROM FINANCIAL OPERATIONS CZK m 2024 2023 Net gain/(loss) from hedging  instruments 751 (4,915) Net gain/(loss) from hedged items (771) 5,009 Net gain/(loss) from financial assets  and liabilities at FVTPL 13 43    out of which: revaluation of  FVTPL securities to fair value 10 6    out of which: expense on  derivative instruments (359) (118)    out of which: income from  derivative instruments 362 155 Net income from sale of investment  securities 1) 59 26 Ex change rate differences 802 715 Share of profit or loss of associates  accounted for using the equity  method 5 - Net income from financial operations 859 878 1)   The sale of investment securities was considered in line with the business  model, in which they ha d been hol d. Further de tail is described in note 24. 10. OTHER OPERATING INCOME CZK m 2024 2023 Income from services and leases 1) 88 71 Rent income 2) 32 16 Other collection income 3) 19 14 Other inc ome 23 31 Total other operating income 162 132 1)   The  line  “Income  from  services  and leases”  includes  primarily  services  provided by  the Bank to  its  subsidiaries MONETA Auto, s.r.o.,  MONETA  Leasing, s.r.o., and MONETA Stavební Spořitelna. 2)   The  line  “R ent  income”  comprises  results  from  operating  leases  of  property provided to subsidiaries and the sub-lease of the HQ building in Prague. 3)   The  line  “Other  collection  income”  includes  the  balance  of  CZK  6  million  for  2024  (2023:  CZK  8  million)  which  represents  recoveries  arising  from  written-off  receivables  exceeding  the   write-off  which  is  recognised  in  the  line  “Net  impairment  of  financial  assets” out of which CZK 3 million for 2024 (CZK 4 million in 2023) results  from legacy NPL sales. The residual amount represents legal costs paid by  clients being under collection proceedings by solicitor offices. 11. PERSONNEL EXPENSES 2024 2023 The average number of employees  during the p eriod 1) 2,394 2,399 Number of Management Board  members 2) 6 5 Number of Supervisory Board  members 2) 9 9 Number of other Key Executive  Managers 2) 3 4 Physical number of em ployees at  the end of the period 2,510 2,492 CZK m 2024 2023 Salaries and bonuses 3) (1,887) (1,797)    out of which: salaries and  bonuses actuals (1,646) (1,578)    out of which: salaries and  bonuses accruals (2 41) (219) Social security and health insurance (596) (564) Restructuring costs (4) 23 Other employee related expense s (95) (90) Total personnel expenses (2,582) (2,428) 1)   The average number of em ployees during the period is an av erage of t he  f igures  reported  to  the  Czech  Statistical  Authority  (CSA)  on  a  monthly  basis in accordance with Par agraph 15 of Decree No. 518/2004 Coll. The  f igures reported to the CSA equal the quotient of the following nominator  and  the  following  denominator.  The  nominator  is  defined  as  all  hours  worked by all employees, their related leaves/holidays a nd their related  sick days.  The denominator represents  the standard  working hours  per  employee and month. 2)   Represents number as of the period end. 3)   Remuneration to members of Supervisory Board, Management Board and  other Key Executive Managers are descri bed in n ote 42.1. 12. ADMINISTRATIVE EXPENSES CZK m 2024 2023 IT and softw are expense (672) (6 14) Rent expense 1) (3 5) (51) Rent-related services (119) (181) Advisory services (27) (22) Auditor´s fees (23) (18) Marketing (221) (201) Travel cost (33) (31) Other expenses 2) (378) (460)    out of which: services provided  by subsidiaries (15) (17)   out of which: ATM expense (51) (53)   out of which: legal exp ense (17) (24)   out of which: office supplies (8) ( 8)   out of which: transport of cash (58) (95) Total administrative expenses (1,508) (1,578) 1)   The line “Rent expense” includes mainly leases whose term ends within  twelve months from the date of in itial application or from the lease start  date (short-term lease s)  and leases of  a ssets with purchase price low er  than CZK 100 thousand (low-value assets). 2)   The line “Other expenses” comprises expenses on other services provided  by 3rd parties not disclosed separately, e.g. subscription fees, support of  ATMs, transport of cash, postage, training, cleanin g serv ices, car expense,  etc. In 2024 line “Auditor’s fee” consists of: •  Statutory audit CZK 13 million; •  Other  assurance services CZK 13 million – quarterly  financial  review  for  the  purpose  of  inclusion  o f  interim profit into regulatory capital, ESG reporting  audit,  r eview  of  Remuner ation  repo rt  and  bond  comfort letter (out of which CZK 5 million is  part of  the amortised cost of the issued bond s); •   Other  non-audit  services  CZK  2  million  –  MiFID  reporting,  review  of  i nternal  control  system  requeste d  by  C zech  National  Bank,  proofread  of  Annual Financial Report and training. 252 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 13. REGULATORY CHARGES CZK m 2024 2023 Contributions t o Deposit Insurance  Fund (135) (151) Contributions t o Resolution and  Recovery Fund 1) (62) (130) Contributions t o Investor  Compensation Fund (7) (6) Total regulatory charges (204) (287) 1)   Decrease  in  2024  is  mainly  driven  by  a  h igh  level  of  fulfilment  of  the  Resolution and Recovery Fund and the corresponding lower contribution  to the fund. 14. DEPRECIATION AND AMORTISATION CZK m 2024 2023 Depreciation of property and  equipment (5 09) (531)    out of which: right-of-use assets (318) (319) Amortisation of intangible assets (672) (658) Total depreciation and amortisation (1,181) (1,189) Impairment losses are disclosed in no te 15. 15. OTHER OPERATING EXPENSES CZK m 2024 2023 Damages (7) (8) Unrecoverable VAT (1) (2) Other expenses (55) (40 )    out of which: impair ment of  non-financial assets (3) (4) Total other operating expenses (63) (50) 16. NET IMPAIRMENT OF FINANCIAL ASSETS CZK m 2024 2023 Add itions and release   of loan loss allowances (329) (291) Add itions and release  of allowanc es/provisions to unused  commitments 11 30 Use of loan loss allow ances  associated with written-off  receivables 874 637 Income from previously  written- off receivables 23 49 Write-offs of uncollectable  receivables (894) (650) Change in allowances   to Investmen t securities 1 (4) Change in allowances   to operati ng receivables (1) (1) Collection costs (37) (38) Net impairment of financial assets (352) (268) Line “In come from previo usly written-off receivables”  includes in 2024 CZK 10 million (2023: CZK 34 million)  representing  recovery  resulting  from  NPL  sales.  The  overall profit or  loss impact of the  NPL  sales in 2024  is CZK 125 million (2023: CZK 303 million) representing recovery,  release  of  r e l ate d  unuse d  Loan  Loss  Allowances and Other income (see note 10). If  los s  given  default  (LGD)  (in  either  the  individual  asses sment  or  statistical  models)  changes  by  +/-10%  in relative terms, then the loan loss allowances would  change by +/- CZK 425 million as at 31 December 2024 and by +/- CZK 432 million as at 31 Decembe r 2023. The  Bank  reflects  external  collection  costs  in  determining  the  impairment  loss  of  loans  and  receiv ables  and  these  costs  are  disclosed  in  the  line  “Net  impairment  of  financial  assets”  when  they  are  incurred. An estimate of these costs also reduces the  present  value  of  recovery  cash  flows  expected  from  related defaulted receivables. At  each  financial  statement  date,  financial  assets  not  measured  at fair  value through  profit or  loss are  asses sed for impairment. The Bank deter mines wh ether  as a result of an event or events occurring alone or in  combination, a financial asset i s considered in default.  For  further  details,  see  note  43.2.2.  Calculation  of  loan  loss allowances  is performed in line  with IFRS  9  stan dard. For further details, see note 43. 2.4. Impacts of the current macroeconomic environment Significant  uncertainty  regarding  the  future  macroeconomic developments in connection with the  environment  of  high  interest  rates  remained  during  2024.  The  Bank  continued  to  take  this  risk  factor,  which  is  no t  adequately  reflected  in  the  current  IFRS  9  model  of  expected  credit  losses, into  account  through  the  management  overlay  framework,  which  was continuously monitored and updated during 2024.  These  regular  review s  in cluded  also  the  backtest  of  overlay assumptions. As at 31 December 2024, the total management overlay amount stood at CZK 392 million. Macroeconomic assumptions in the IFRS 9 model were updated  in  August  2024.  The  scenarios  of  the  main  macroeconomic variables of the mod e l (unemployment  rate  and  GDP  growth)  were  cons tructed  based  on  the  latest  available  forecasts  provided  by  the  Czech  National  Bank.  T he  potential  negative  development  of  these  drivers  is  reflected  via  th e  adverse  IFRS  9  macroeconomic scenario.  253 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The foll owing table shows an overview of internal scenarios based on the prognoses of the MFCR and the CNB: GDP Growth Year MFCR (1/2024) MFCR (4/2024) MFCR (8/2024) MFCR (11/2024) CNB (2/2024) CNB (5/2024) CNB (8/2024) CNB (11/2024) IFRS 9 MODEL 2024 1.2% 1.4% 1.1% 1.1% 0.6% 1.4% 1.2% 1.0% 1.2% 2025 2.5% 2.6% 2.7% 2.5% 2.4% 2.7% 2.8% 2.4% 2.8% 2026 2.4% 2.4% 2.4% Unemployment Year MFCR (1/2024) MFCR (4/2024) MFCR (8/2024) MFCR (11/2024) CNB (2/2024) CNB (5/2024) CNB (8/2024) CNB (11/2024) IFRS 9 MODEL 2024 2.8% 2.8% 2.8% 2.6% 3.0% 2.9% 2.7% 2.7% 2.7% 2025 2.7% 2.7% 2.7% 2.5% 3.1% 3.1% 2.8% 2.9% 2.8% 2026 3.0% 3.0% 3.0% Management overlay Throughout 2024, the management overlay fram ework  was subject to regular reviews, backtests and updates in line with the pre-de fined governance framework.  In  May  2024,  the  management  overlay  reflecting  risks associated with  exposures  s ecured by COVID-19  guarantees  expiring  within  12  consequent  months  was dissolved in the amount of CZK 80 million  si nce its  initial assumption have not materialised.  As at 31 December 2024, the total management overlay  amount stood at CZK 392 million. 17. TAXES ON INCOME Tax expense from the Bank’s profit before tax can be  analysed as follows: CZK m 2024 2023 Current income tax for the year (695) (638) Income ta x related to prior years 2 - Change in deferred tax position  recognised in profit or loss (7) (7) Taxes on income (700) (645) The table below show s the reconciliation of the actual  tax  charge an d  the tax  charge based  on applyi ng the  stand ard corporate income  tax  rate  accordin g  to  the  Czech Repub lic’s income tax law: CZK m 2024 2023 Profit for the period before tax 7,091 6,025 Theoretical income tax accounted  for i nto expenses, calculated at th e  rate of 21% (2023: 19%) (1,489) (1,145) Tax related to the prior y ears 2 - Impact of the tax non-deductible  expenses (39) (22) Impact of the tax-exempt inco me 1) 826 507 Impact of windfall tax on defer red tax - 46 Impact of change in t he income tax  rate from 19% to 21% (effective  from 1 January 2024) - (31) Taxes on income (700) (645) Effec tive income tax rate 9.8% 10.7% 1)   Tax-exempt  income  is  primarily  realised  from  investments  into  Governm ent bonds issued  after 1  January 2021  and received dividends  from subsidiaries. The Bank is not aware of any uncertain tax treatment  as  def ined  in  IFRIC  23  Uncertainty  over  Incom e  Tax  Treatments, thus calculation of current and deferre d tax  is not influenced by extra judgements and estimates,  which requires separate disclosure. The Bank shall be subject to the windfall tax imposed by  the Government on Banks that report ne t interes t income  higher than CZK 6 billion in 2021, Power and Fuel industry  for tax periods from 2023 to 2025. The Windfall tax base  is positive exc ess over  the Bank’s  four-year average tax  base (2018 to 2021) increased by 20 percent and its actual  tax  base  of  the  given  tax  period.  Such  exc e ss  if  any  is  subject to an additional 60 pe rcent taxation. In 2024, based on the current operating plan, the Bank  does  not  expect  payment  of  any  windfall  tax  in  the  future, thus there is neither an impact on pay able nor  deferred tax. 254 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  Bank  is  part  of  the  Group  which  is  generally  subject  to  Global  minimum  tax  under  Pillar  II.  Based  on the Group’s t ax calculation, in 2024, the threshold  for  application  of  the  minimum  tax  is  not  met,  therefore, income  tax payable  is not impacted in the  current  period.  With  respect  to  the  latest  available  tax  forecasts,  the  Group  does  not  expect  material  exposure to Pillar II Income tax in 2025. The majority of  the estimated impact will be attributable to the Bank. 18. EARNINGS PER SHARE Earnings per share amounts are calculated by dividing  the  net  profit  for  the  year  after  tax  attributable  to  ordinary  equity  holders  by  the  weighted  average  number of ordinary shares outstanding during the year. CZK m 2024 2023 Profit for the year after tax  attributable to the equity holders 6,391 5,3 80 Weight ed average of ordinary  shares (millions of shares) 511 511 Basic earnings per share (CZK) 12.51 10.53 As  the  Bank  has  not  issued  any  potentially  dilutive  instruments,  the  basic  earnings  pe r  share  equal  the  diluted earnings per share. 19. CASH AND CASH BALANCES AT THE CENTRAL BANK CZK m 31 Dec 2024 31 Dec 2023 Cash and cash in transit 3,770 3,206 Term deposits included in the cash  equivalents 1,639 - Mandatory minimum reserve and  clearing a ccount with the central  bank 8,012 7, 328 Total cash and cash balances at the central bank 13,421 10,534 The Bank includes  a mandatory minimum reserve with  the Czech Nati onal Bank into “Cash and cash balances  at the central bank”. The Bank may  draw funds f rom  the mandatory minimum reserve at any point in time  provided  that  the  avera ge  balance  over  the  relevant  period meets the minimum levels  requi red according  to the regulations of the Czech National Bank. 20. CASH AND CASH EQUIVALENTS For  the  purposes  of  the  separ ate  statement  of  cash  flows,  cash  and  cash  equivalents  comprise  the  following balances with maturities from the acquisition  of less than 3 months: CZK m 31 Dec 2024 31 Dec 2023 Cash and cash balances at the  central bank 13,421 10,534 Lo ans and receivables to banks 75,525 66,992 Total cash and cash equivalents 88,946 77,526 21. TRANSFER OF FINANCIAL ASSETS – REPURCHASE TRANSACTIONS 31 Dec 2024 CZK m Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Liabilit ies arising from repurchase agreements   with clients - - - -   with banks - - - - Total liabilities arising from repurchase agreements - - - - Financial assets transferred as collateral in repurchase  agreements   Financial assets measured at amortised cost - - - -   Financial assets receiv ed in reverse repos - - - - Total financial assets transferred as collateral in repurchase agreements - - - - 255 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Liabilit ies arising from repurchase agreements   with clients - - - -   with banks - 2 ,531 - 2,531 Total liabilities arising from repurchase agreements - 2,531 - 2,531 Financial assets transferred as collateral in repurchase  agreements   Financial assets measured at amortised cost 2,824 - 3,229 -   Financial assets receiv ed in reverse repos - - - - Total financial assets transferred as collateral in repurchase agreements 2,824 - 3,229 - Liabilitie s from repurchase agreements represent the obligation to repay the borrowing and are shown in the lines  “Due to banks” (see note 34) and “Due to customers” (see note 35). As at 31 December 2024, no financial assets have been transferred as collateral.  As at 31 December 2023, financial  assets transferred as collateral consisted of Government bonds (see note 24) measured at an amortised cost of  2,824 million. 22. LOANS AND RECEIVABLES TO BANKS Loans and re ceivables to banks include: CZK m 31 Dec 2024 31 Dec 2023 Current accounts at banks 385 260 Overnight deposits 937 392 Rec eivables arising from reverse  repurchase agreements 1) 74,203 66,340 Cash collateral granted 2) 2,513 2,238 Other 3) 3 2    Included in cash equiv alents 75,525 66,992 Total loans and receivables to banks 78,041 69,232 1)   The Bank provides reverse repo operations with the C zech National Bank.  The  collateral  received  as  at  31  December  2024  of  CZK  72,714  million  (31 December 2023: CZK 65,030 million) is represented by treasury bills  that are not recognised in the statement of financial position. 2)   Comprises collateral granted for derivativ e transactions. 3)   Represents an  unsolicited  dividend for  the  years  2021 ,  2022, 2023  and  2024  transferred  to  Komerční  banka,  a.s.  that  is  administering  the  payment. The  Bank  did  not  recognise  any  allowances  to  loans  and  receivables  to  banks  during  2024  and  2023,  as  such  exposures  are  short-term  only  and  impact  is  immaterial. 23. LOANS AND RECEIVABLES TO CUSTOMERS (a) Loans and receivables to customers by sector CZK m 31 Dec 2024 31 Dec 2023 Financial organisations 1) 12,936 13,008 Non-financial organisations 49,724 44,128 Government sector 116 104 Non-profit organisatio ns 41 53 Entrepreneurs 20,756 17,697 Resident individuals 173,192 169,059 Non-residents 6,847 6,103 Gross carrying amount of Loans and receivables to customers 263,612 250,152 Less Loss allowance for Loans and  receivables to customers (3,679) (4,271) Net book value of Loans and receivables to customers 259,933 245,881 1)   The  balance  of  gross  loans  and  receivables  to  financial  organisations  includes exposures to MO NETA Leasing, s.r.o., and  M ONETA Auto, s.r.o.  in the total amount of CZK 1 1,644 million as at 31 December 2024 (as at  31 December 2023 CZK 11,479 million). 256 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (b) Loans and receivables to customers by product 31 Dec 2024 31 Dec 2023 CZK m Gross carrying amount Allowances Carrying amount Gross carrying amount Allowances Carrying amount Retail loan balances   Consumer Loans 39,324 (1,775) 37,549 37,782 (2,045) 35,737   Mortgages 1) 131,179 (569) 130,610 128,604 (658) 127,946   Credit Cards & Overdrafts 2,449 (158) 2,291 2,470 (200) 2,270   Other 7 (7) - 8 (8) - Total Retail 172,959 (2,509) 170,450 168,864 (2,911) 165,953 Commercial loan balances   Inves tment Loans 56,858 (281) 56,577 51,188 (281) 50,907   Working Capital 16, 9 11 (202) 16,709 15,715 (193) 15,522    Unsecured Instalment Loans and Overdraft 16,879 (682) 16,197 14,380 (881) 13,499   Other 5 (5) - 5 (5) - Total Commercial 90,653 (1,170) 89,483 81,288 (1,360) 79,928 Total Loans and receivables to customers 263,612 (3,679) 259,933 250,152 (4,271) 245,881 1)  Part of the mortgage portfolio is an underlying asset for mortgage-backed bonds.  (c) Loss allowances for loans and receivables to customers by sectors CZK m Financial organisations Non-financial organisations Non-profit organisations Entrepreneurs Resident individuals Non-residents Total 1 Jan 2024 6 553 1 745 2,867 99 4,271 Net change of  allowances recognised  in Statement of  Financial positio n - 13 - (2) 274 (5) 280 Effec t of written off  receivables - (36) - (148) (663) (27) (874) Ex change rate  variances - 1 - - - 1 2 31 Dec 2024 6 531 1 595 2,478 68 3,679 CZK m Financial organisations Non-financial organisations Non-profit organisations Entrepreneurs Resident individuals Non-residents Total 1 Jan 2023 44 528 5 706 3,293 86 4,662 Net change of  allowances recognised  in Statement of  Financial positio n (38) 52 (4) 137 69 25 241 Effec t of written off  receivables - (29) - (98) (495) (15) (637) Ex change rate  variances - 2 - - - 3 5 31 Dec 2023 6 553 1 745 2,867 99 4,271 257 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 24. INVESTMENT SECURITIES CZK m 31 Dec 2024 31 Dec 2023 Debt securities measure d at  amortised cost 113,110 100,769    out of which: government bonds 109,7 21 97, 542    out of which: corporate bonds 3,389 3,227 Debt securities measure d at FVTPL 41 30 Equity securities measured at FVTOCI 1 1 Equity securities measured at FVTPL 25 25 Total investment securities 113,177 100,825 By listing:   - list ed 113,110 100,769   - unlisted 67 56 Debt  securities  measured  at  amortised  cost are  held  with  the  objective  to  hold  the  assets  and  collect  contractual cash flow, thus presented under the Hold  to Colle ct business m odel. Expected  credit  losses  related  to  d e bt  securities  measured  at  amortised  cost  at  31  December  2024  amount  to  CZK  21  million  (31  Dece mber  2023:  CZK 22 million). In 2024, there was sale of  corporate  bonds from  the  port folio  measured  at  amortised  cost  held  within  the business model  Hold to  Collect i n  the amount  of  CZK 1,086 million (2023: CZK 1,186 million). The bond sale was considered as infrequent sale of insignificant  value according to the business mo del assessment. Equity  securities  measured  at  FVTOCI  include  investment in SWIFT. The Bank elected the  i rrevocable  option provided by IFRS 9 to classify its investment in  SWIFT as at the date of transitio n to IFRS 9 as FVTOCI  as the Bank intends to hold these in the long term and  they were measured in the same way according to IAS  39  and  IFRS  9. Since transitio ning to  IFRS  9,  all  gains  and losses resulting from FV TOCI equity instruments,  including when derecognised or sold, are recorded in  OCI and are not subsequently reclassified to profit o r  loss.  The  Bank  did not  receive any dividends relating  to FVTOCI equi ty instruments i n 2024 and 2023. There  have been no dispo sals from FVTOCI equity securities  in periods 2024 and 2023. In  April  2021,  the  Bank  purchased  a  10%  share  of  Bankovní  identita,  a.s.  The  share  is  classified  as  an  equity instrum e nt measured at FVTPL. The reason for  purchasing the share w as to closely participate in the  provision of identit y verific ation ser vices provided by  Bankovní  identita,  a. s.  As  at  31  December  2024,  the  Bank holds an 8% share of Bankovní identita, a.s. and  the total investment amounts to CZK 25.2 million. Debt securities measured at FVTPL consist of the VISA  Preferred  Stock  Series  C  securities  that  can  be  sold  in  the  future  w hen  it  i s  possible  and  VISA  Series  A  Convertible  Participating  Preferred  Stock  that can  be  converted into marketable shares. As at 31 December 2024, the Bank had no repurchase  transactions, therefore, no debt securities measured at amortised cost are transfe rred as collateral under these  transactions. As at 31 December 2023, debt se curities  measured at amortised cost with a carrying amount of  CZK 2,824 million were transferred as collateral under  repurchase transactions. 25. ISSUED BONDS Mortgage-Backed Bonds The Bank maintain ed 8 tranches of mortgage -backed securitie s in the total nominal amount of CZK 9,200 million  for funding purposes. ISIN Issue date Currency Maturity date Interest rate Total nominal amount outstanding CZK m CZ0002007594 16 Apr 2021 CZK 16 Apr 2025 1.82% p.a. 1,200  CZ0002007628 16 Apr 2021 CZK 16 Apr 2026 1.96% p.a. 1,100  CZ0002007602 16 Apr 2021 CZK 16 Apr 2028 2.05% p.a. 900  CZ0002007610 16 Apr 2021 CZK 16 Apr 2031 2.13% p.a. 500  CZ0002008485 25 Feb 2022 CZK 25 Feb 2025 4.74% p.a. 1,500  CZ0002008493 25 Feb 2022 CZK 25 Feb 2026 4.57% p.a. 2,000  CZ0002009251 21 Mar 2024 CZK 27 Mar 2028 3.64% p.a. 1,000  CZ0002009368 22 Jul 2 024 CZK 30 Jul 2029 4.20% p.a. 1,000  The all of issued mortgage-backed securities are held by MONETA Stavební Spořitelna, a.s. 258 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Amortised cost of the outstanding mortgage-backed bonds: CZK m 31 Dec 2024 31 Dec 2023 Mortgage-bac ked bonds at amortised cost 9,434 10,486 Total 9,434 10,486 The B ank did not report any defaults of principal or interest or other breaches with respect to mortgage-backed  bonds during the years 2024 and 2023. Internally Issued Mortgage-Backed Bonds (on own books) The m ortgage-backed bonds are covered by mortgage l oans provided to the Group’s clients. The purpose of the  issuance o f these bonds is only in case of potential recovery or resolution strategy of the Bank. In such events,  internally  held  mortgage-backed  bonds  would  be  used  as  collateral  for  a  lombard  loan  or  repo  op e rations  predominantly wi th Czech National Bank in order to support the liquidity position of the Bank . As at 31 December  2024, the Group did not realise any of these above-mentioned op e rations and the mortgage-backed bonds were  held internally, therefore th e se bonds are not recognised in the Statement of the financial position. Other Issued Bonds The  Bank issued the  bonds as a part of compliance  with the minimum requirement  for own  funds and eligible  liabilities (“MREL”) requirement which was set for the Bank by the CNB. The Bank issued the senior preferred bonds in the total nominal amount of CZK 1,500 million and EUR 400 million.  The EUR tranches were settled on 3 February 2022 and 11 September 2024 and the CZK tranche was settled on  15 December 2022. Further issue details are described in the followin g table. These instruments are initially measured at fair value minus incremental direct transaction costs and subsequently  measured at their amortised cost using the effective interest rate method. ISIN Issue date Currency Maturity date Interest rate Call option Total nominal amount outstanding EUR m/CZK m XS243560144 3 3 Feb 2022 EUR 3 Feb 2028 1.625% p.a. after 5 years 100 CZ0003707671 15 Dec 2022 CZK 15 Dec 2026 8.00% p.a. after 3 years 1,500 XS2898794982 11 Sep 2024 EUR 11 Sep 2030 4.414% p.a. after 5 years 300 Amortised cost of the outstanding Other issued bonds: CZK m 31 Dec 2024 31 Dec 2023 Other iss ued bonds at amortised cost 11,562 3,808 Total 11,562 3,808 The Bank did not report any default of principal or interest or other breaches with respect to other issued bonds  during the years 2024 and 2023. 26. SUBORDINATED LIABILITIES Issued Subordinated Debt Securities Subordinated debt securities were issued to strengthen regulatory cap ital. These liabilities are subordinated to all  other liabilities of the Bank. As at 31 December 2024, they form in the p artial amount of CZK 4.5 billion a part of the  Tier 2 capital of the Bank as defined by the CNB for the purposes of determination of i ts capital a dequacy. These instruments are initially measured at fair value minus incremental direct transaction costs and subsequently  measured at their amortised cost using the effective interest rate method. 259 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The B ank i ssued debt securities in the total nominal amount of CZK 4,602 million. ISIN Issue date Currency Maturity date Interest rate Call option Total nominal amount at issue date CZK m MB 3.30/29 CZ0003704918 25 Sep 2019 CZK 25 Sep 2029 5.65% p.a. 1) after 5 years 2) 2,001 MB 3.79/30 CZ0003705188 30 Jan 2020 CZK 30 Jan 2030 3.79% p.a. after 5 years 2,601 1)   Effective from 25 Septe mber 2024, in accordance with the bond prospectus, the interest rate was adjusted from a fi xed rate of 3.30% p.a. to a floating rate  calculated as 6M PRIBOR plus a 1. 63% margin.  2)   The first opportunity to exercise the call option after 5 ye ars has expired. The call option can now be exercised each year on the annivers ary date.  Amortised cost of the outstanding subordinated debt securities: CZK m 31 Dec 2024 31 Dec 2023 Subordinated debt securities a t amortise d cost 4,706 4,690 Total 4,706 4,690 The Bank did not report any default of principal or interest or other breaches with respect to subordinated liabilities  during the years 2024 and 2023. Subordinated Deposits In the second quarter of 2023, the  Bank strengthened its capital and eligible liabiliti e s  through a subordinated  deposit offering. The Bank has rec eived subordinated deposi ts in th e amount of CZK 2.9 billion. The term of the  subordinated deposit is set at five years with a guaranteed interest rate of 7 percent for the entire term. As at  31 December 2024, they form in the partial amount of CZK 2.1 billion a part of th e Tier 2 cap ital of the Bank as  defined by the CNB for the purposes of determination of its capital adequacy (see note 43.1). CZK m 31 Dec 2024 31 Dec 2023 Subordinated deposits at amortised cost 2,916 2,914 Total 2,916 2,914 27. FINANCIAL DERIVATIVES The  Bank  enters  into  financial  derivatives  predominantly to hedge its interest rate risk position and secondly to economically hedge its FX risk position.  All  maintained  financial  derivatives  are  contracted  Over the Counter (“OTC”). Interest  rate  swaps  or  cross  currency  interest  rate  swaps  are  recognised  at  incepti on  as  hedging  instruments  acco rding  to  IAS  39,  in  or der  to  hedge  their  exposure  to  the  c hange  of  the  fair  value  of  a  defined part of portfolio of assets or liabilities related to interest rate risk (see note 5.6.9). Foreign exchange derivatives (currency swaps, currency  forwards) are constructed to economically hedge the  foreign  currency  risk   but  these  derivatives  are  not  designated at initial recognition as hedging deriv atives.   They are held under Other business model (Derivatives  classified as held for trading) and measured at FVTPL  and  presented  in  the  lines  “Derivative  financial  instruments  with  positive/  negati ve  fair  value”  (derivatives  with  p ositive  fair  values  within  assets,  deriv atives with negative fair values within liabilities). In the statement of financial position, derivatives with positive  fair values  (total  fair value including accrued  interest)  are  presented  in  the  lin e  item  “Hedging  deriv atives with positive fair values”, derivatives with  negative fair valu es (total fair value including accrued  interest) are  disclosed in the line “Hedging derivatives  with negati ve fair values”. In  th e  years  2024  and  2023,  the  immaterial  ineffectiveness  on  the  hedging  relationship  was  recognised in profit or loss. 260 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Financial derivatives classified as held for trading: 31 Dec 2024 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities CURRENCY DERIVATIVES Currency swaps 14,031 14,009 29 1 Currency forwards 3,665 3,660 54 51 Cross currenc y interest rate s waps  - discontinued fair value  hedges 738 735 41 37 INTEREST RATE DERIVATIVES Inte rest rate swaps - disco ntinued fair value hed ges 8,978 8,978 472 443 Total derivatives for trading 27,412 27,382 596 532 31 Dec 2023 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities CURRENCY DERIVATIVES Currency swaps 1,734 1,745 1 13 Currency forwards 2,617 2 ,612 66 61 Cross currenc y interest rate s waps  - discontinued fair value  hedges 732 729 19 27 INTEREST RATE DERIVATIVES Inte rest rate swaps - disco ntinued fair value hed ges 7,673 7,673 45 8 422 Total derivatives for trading 12,756 12,759 544 523 Financial derivatives designated at initial recognition as hedging derivatives: 31 Dec 2024 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities INTEREST RATE DERIVATIVES Inte rest rate swaps designated as fair value hedges 14 3,032 143,032 2,314 4,147 CURRENCY DERIVATIVES Cross currenc y interest rate s waps des igned as fair value hedges 1,996 2,093 - 112 Total hedging derivatives 145,028 145,125 2,314 4,259 31 Dec 2023 Nominal value Fair value CZK m Assets Liabilities Assets Liabilities INTEREST RATE DERIVATIVES Inte rest rate swaps designated as fair value hedges 120,564 120,564 2,701 4,490 CURRENCY DERIVATIVES Cross currenc y interest rate s waps des igned as fair value hedges 1,996 2,055 - 58 Total hedging derivatives 122,560 122,619 2,701 4,548 Cash collateral of financial derivatives: 31 Dec 2024 Fair value Cash collateral CZK m Assets Liabilities Received Granted Financial derivatives 2,910 4,791 621 2,513 31 Dec 2023 Fair value Cash collateral CZK m Assets Liabilities Received Granted Financial derivatives 3,245 5,071 834 2,238 261 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 28. INTANGIBLE ASSETS CZK m Software purchased Software internally developed Core Deposit Intangible (CDI) Intangibles not yet activated Total Carrying amount as at 31 Dec 2022 173 2,651 51 310 3,185 Add itions to assets 62 537 - 631 1,230 Activa ted assets during period - - - (599) (5 99) Amortisation for pe riod (92) (543) (23) - (658) Impairment of asse ts - - - - - Carrying amount as at 31 Dec 2023 143 2,645 28 342 3,158 Add itions to assets 70 556 - 71 9 1,345 Activa ted assets during period - - - (626) (626) Amortisation for pe riod (99) (5 50) (23) - (672) Impairment of asse ts - - - - - Carrying amount as at 31 Dec 2024 114 2,651 5 435 3,205 CZK m Software purchased Software internally developed Core Deposit Intangible (CDI) Intangibles not yet activated Total Co st as at 31 Dec 2022 954 7,082 144 310 8,490 Accumulated Amortisation and Impairment 2022 (781) (4,431) (93) - (5,305) Carrying amount as at 31 Dec 2022 173 2,651 51 310 3,185 Co st as at 31 Dec 2023 1,015 7,620 138 342 9,115 Accumulated Amortisation and Impairment 2023 (872) ( 4,975) (110) - (5,957) Carrying amount as at 31 Dec 2023 143 2,645 28 342 3,158 Co st as at 31 Dec 2024 996 8,043 138 435 9,612 Accumulated Amortisation and Impairment 2024 (882) (5,392) (133) - (6,407) Carrying amount as at 31 Dec 2024 114 2,651 5 435 3,205 Annual  costs  related  to  research  and  d evelopment  that  did  not  meet  capitalisation  criteria  amounted  to  CZK 138 million in 2024 (2023: CZK 107 million). 262 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 29. PROPERTY AND EQUIPMENT CZK m Capital improvements of leased assets Equipment and machinery Fixtures and other tangibles Right-of-use assets – real estates Right-of-use assets – other assets Property and equipment not yet activated Total Carrying amount as at 31 Dec 2022 325 485 30 1,452 - 22 2,314 Add itions to assets 58 148 7 481 2) - 684 1,378 Disposals/Activat ed assets  during period (1) (3 3) - - - (694) (728) Depreciation for period (65) (135) (12) (319) - - (531) Impairment of asse ts 1) - (3) - (32) - - (35) Carrying amount as at 31 Dec 2023 317 462 25 1,582 - 12 2,398 Add itions to assets 52 100 20 170 20 385 747 Disposals/Activat ed assets  during period - (11) - - - (362) (373) Depreciation for period (62) (122) (7) (314) (4) - (509) Impairment of asse ts 1) - (2) - (2) - - (4) Carrying amount as at 31 Dec 2024 307 427 38 1,436 16 35 2,259 1)   Impairment of assets related to “Right-of-use assets – real estates” results from ATMs and branches terminations. 2)  Increase of amount in 2023 is mainly driven by prolonging the lease term of the Prague Headquarters building by 2 years. CZK m Capital improvements of leased assets Equipment and machinery Fixtures and other tangibles Right-of-use assets – real estates Right-of-use assets – other assets Property and equipment not yet activated Total Co st as at 31 Dec 2022 1,048 1,447 139 2,676 - 22 5,332 Accumulated Depreciation  2022 (723) (962) (109) (1,224) - - (3 ,018) Carrying amount as at 31 Dec 2022 325 485 30 1,452 - 22 2,314 Co st as at 31 Dec 2023 1,054 1, 322 140 3,023 - 12 5,551 Accumulated Depreciation  2023 (737) (860) (115) (1 ,441) - - (3,153) Carrying amount as at 31 Dec 2023 317 462 25 1,582 - 12 2,398 Co st as at 31 Dec 2024 1,089 1,308 158 3,165 20 35 5,775 Accumulated Depreciation  2024 (782) (88 1) (120) (1,729) (4) - (3,516) Carrying amount as at 31 Dec 2024 307 427 38 1,436 16 35 2,259 263 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 30. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 31 Dec 2024 CZK m Name Registered office Business activity Equity 31 Dec 2024 Share of voting rights Share in equity Cost Book value MONETA Auto, s.r.o. Vyskočilova 1442/1b,  140 00 Prague 4 Auto financing  (Providing of loans) 762 100% 100% 6,787 1,859 MONETA Leasing, s.r.o. Vyskočilova 1442/1b, 140 00 Prague 4 Financing of loans and  leasing 181 2) 100% 100% 2,938 3 MONETA Stavební Spořitelna, a.s. Vyskočilova 1442/1b, 140 00 Prague 4 Building savings and  bridging loans 2,250 100% 100% 2,603 2,603 CB CB - Czech Banking Credit  Bureau, a.s. 1) Štětkova 1638/18  140 00 Prague 4 Banking Credit  Register 3 2),3) 20% 20 % - 3 Total investments in subsidiaries and associates as at 31 Dec 2024 12,328 4,468 1)   The  Bank  holds  its  share in  CBCB - Czech  Banking Credit  Bureau,  a.s. in order  to obtain  information related  to  the credit quality of  current  and potential  customers. 2)  According to I FRS Accounting Standards - unaudite d. 3)  Share of equity belonging to the Bank. 31 Dec 2023 CZK m Name Registered office Business activity Equity 31 Dec 2023 Share of voting rights Share in equity Cost Book value MONETA Auto, s.r.o. Vyskočilova 1442/1b,  140 00 Prague 4 Auto financing  (Providing of loans) 672 100% 100% 6,787 1,859 MONETA Leasing, s.r.o. Vyskočilova 1442/1b, 140 00 Prague 4 Financing of loans and  leasing 233 2) 100% 100% 2,938 3 MONETA Stavební Spořitelna, a.s. Vyskočilova 1442/1b, 140 00 Prague 4 Building savings and  bridging loans 2,832 100% 100% 2,603 2,603 CB CB - Czech Banking Credit  Bureau, a.s. 1) Štětkova 1638/18  140 00 Prague 4 Banking Credit  Register 3 2),3) 20% 20 % - - Total investments in subsidiaries and associates as at 31 Dec 2023 12,328 4,466 1)   The  Bank  holds  its  share in  CBCB - Czech  Banking Credit  Bureau,  a.s. in order  to obtain  information related  to  the credit quality of  current  and potential  customers. 2)  According to I FRS Accounting Standards - unaudite d. 3)  Share of equity belonging to the Bank. In 2024, the Bank  p rovided tests of  these investments  for potential impairme nt. The asses sments for MONETA  Auto, s.r.o., and MONETA Stavební Spořitelna, a.s., have  been made with the following assumption s: value in use  (recoverable amount) has  b een determined using cash  flow  predictions  based  on  financial  budgets  covering   a  five-year  period,  with  a  terminal  growth  rate  of  2%  applied  thereafter  (2023:  2%).  The forecast cash  flows  have been discounted at an after-tax rate  o f 13% (2023:  12%) and the resulting net pre sent value of future cash  flows  was  compared  to  the  carrying  value  of  these  investments. No impairment loss was identified in year s  2024 and 2023. The assessments for MONETA Leasing, s.r.o., have been  made  with  the  following  assumptions:  value  in  use  (recoverable amount) has been de termined using cash  flow  predictions  based  on  financial budgets  covering   a five-year period. The forecast cash flows have been  discounted  at an after-tax rate of 13% (2023: 12%) and  the resulting net present value of futur e cash flows was  compared to the carryi ng value of this investment. No  impairment was identified in 2024 (2023: CZK 0 million).  Since November 2022, MONETA Leasing, s.r.o., ceased  to provide new financing and started only maintaining  existing loan  an d  lease  contracts.  In  line  with  IFRS  5  MONETA  L easing,  s.r.o.,  shall  not  be  re ported  as  a  discontinued operation. Information  about  financial  results  of  subsidiaries  is  available in the investor relations section of the Bank’s  website at: http s://investors.moneta.cz. 264 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Changes in investments in subsidiaries and associates in 2024 CZK m Book value 1 Jan 2024 Change Book value 31 Dec 2024 MONETA Auto, s.r.o. 1,859 - 1, 859 MONETA Leasing, s.r.o. 3 - 3 MONETA Stavební Spořitelna, a.s. 2,603 - 2,603 CB CB - Czech Banking Credit Bure au, a.s. - 3 3 Total 4,466 3 4,468 Changes in investments in subsidiaries and associates in 2023 CZK m Book value 1 Jan 2023 Change Book value 31 Dec 2023 MONETA Auto, s.r.o. 1,859 - 1, 859 MONETA Leasing, s.r.o. 3 - 3 MONETA Stavební Spořitelna, a.s. 2,603 - 2,603 CB CB - Czech Banking Credit Bure au, a.s. - - - Total 4,466 - 4,466 31. CURRENT TAX ASSETS AND CURRENT TAX LIABILITIES CZK m 31 Dec 2024 31 Dec 2023 Current tax assets 59 57 Corporate  income  tax  advances  were  offset  with  current  income  tax  p ay able  in  the  2023  tax  return  and the difference was settled with the tax authority in 2024. 32. DEFERRED TAX ASSETS AND LIABILITIES Deferred tax is determined based on all temporary and  timing  differences  between  the  tax  residual  values  of  assets and liabilities and their residual book values in the  Bank’s financial statements. Deferred tax is determined  using the tax rate e nacted by th e balance sheet date. The  tax rate used also considers th e impact of the Windfall  tax.  For  the  determination  of  deferred  tax  assets  and  liabilities as at 31 December 2024, a tax rate of 21% is  used (31 December 2023: 21%). The  recognition  of  deferred  tax  assets  relies  on  an  asses sment of the probability and sufficiency of future  taxable  profits,  future  reversals  of  existing  taxable  temporary  differences  and  on going  tax  planning  strategi e s. Deferred  tax  ass ets  and  liabilities  consist  of  the  following differences: CZK m 31 Dec 2024 31 Dec 2023 Deferred tax liabilities (485) (457) Difference betwe en book value  and tax residual value of  long-lived assets (48 5) (457) Deferred tax assets 151 130 Loss allowances for loans and  receivables to customers 3 10 Difference betwe en book value  and tax residual value of long- lived assets 54 33 Other temporary variances 94 87 Net deferred tax at the end of period 1) (334) (327) 1)   The  Bank is  offsetting  deferred tax asset  and deferred tax liability  and  reports net deferred t ax. The  following  table  shows  the  movement  of  the  net  deferred tax asset: CZK m 2024 2023 Net deferred tax at the beginning of period (327) (320) Change in net deferred tax - total profit or loss impact (7) (7)   -  Loss allowances for loa ns and  receivables to customers (7) (30)   -  Difference between book value  and tax residual value of long- lived assets (7) (9)   - Oth er temporary variances 7 32 Net deferred tax at the end of period (334) (327) 265 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 33. OTHER ASSETS CZK m 31 Dec 2024 31 Dec 2023 Accounts receivable 120 113 Advances and guarantees for rent  related services 226 182 Rec eivables from finance  authorities 12 - Other receivables net o f allowances 64 34    out of which: allowances (14) (17) Prepayments 371 297 Other accruals 496 341 Total other assets 1,289 967 34. DUE TO BANKS The B ank has the following liabilities to other banks: CZK m 31 Dec 2024 31 Dec 2023 Deposits on demand 882 626 Term deposits 195 - Liabilit ies arising from repurchase  agreements 1) - 2,531 Cash collateral received 2) 405 563 Other due to banks 3) 2,566 1,731 Total due to banks 4,048 5,451 Type of rate:   Fixed interest rate 2,761 4,262   Floating interest rate 1,287 1,189 1)   For more details about financial assets granted as collateral for Liabilities  arising from repurchase agreements see not e 21. 2)   Cash collaterals received represent Credit Support Annex (CSA) Collaterals  of banks for derivative transactions in the amount of CZK 4 05 million as at  31 December 2024 (CZK 563 million as at 31 December 2023). 3)   Other  du e  to  banks  comprises  loan  pr ovided  by  European  Investment  Bank (“EIB”) in March 2024. This loan amounts t o CZK 2,566 million as at  31 December 2024 (2023: loan provided by EIB in January 2021 in amount  of CZK 1,731 million as at 31 December 2023). 35. DUE TO CUSTOMERS Breakdown of due to custom e rs by sector: CZK m 31 Dec 2024 31 Dec 2023 Financial organisations 960 2,141 Non-financial organisations 55,887 43,623 Insurance organisations 486 655 Government sector 8,849 8,353 Non-profit organisatio ns 15,666 12,141 Entrepreneurs 19,7 61 17,202 Resident individuals 296,902 284,643 Non-residents 5,163 2,816 Total Due to customers 403,674 371,574 Rate type:   Fixed interest rate 57,081 53,588   Floating interest rate 1) 346,005 317,370   Non-interest-bearing 588 616 Total due to customers 403,674 371,574 1)   This  item  principally  includes  client  deposits  where  the  Bank  has  the  option to reset interest rates and hence, they are not sensitive to interest  rate changes. Generally, it is the rate d eclared by the Bank. Breakdown  of  due  to  customers  by  product  is  as  follows: CZK m 31 Dec 2024 31 Dec 2023 Retail due to customers 298,409 286,197   Current accounts 5 4,839 52,592    Savings accounts an d term  deposits 243,570 233,605 Commercial due to customers 104,686 84,777   Current accounts 53,187 41,759    Savings accounts an d term  deposits 51,499 43,018 Cash collateral received 215 270 Other liabilities towards customers 364 330 Total due to customers 403,674 371,574 Unrecognis ed due to customers: CZK m 31 Dec 2024 31 Dec 2023 Outstanding amount of investment  funds 59,373 38,498 266 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 36. PROVISIONS CZK m 2024 2023 Provisions for undrawn loan commitments 1) 1 Jan 101 129 Add itions to provisions 298 299 Use of provisions - - Rele ase of unused provisions (309) (327) 31 Dec 90 101 Other provisions 1 Jan 165 173 Add itions to provisions 1 53 134 Use of provisions (144) (133) Rele ase of unused provisions (2) (9) 31 Dec 172 165 Total provisions 262 266 1)   Majority  of  the  balance  re sults  from  overdraft  facilities  and  working  capital and is usually settled up to 1 year. Provisions for undrawn loan commitments are created  for irrevocable loan commitments (r efer to note 40). The  Bank  created  other  provisions  for  its  legal  obligations  associated  with  the  r etirement  of  the  premises  leased  for  operation,  for  restructuring,  for  commissions claw-back and fo r collection services. Other provisions CZK m 31 Dec 2024 31 Dec 2023 Provisions for assets retirement  obligation 1) 34 34 Provisions for restruc turing 5 2 Provisions for commissions  claw-back 2) 126 118 Other 7 11 Total other provisions 172 165 1)   Settlement is driven by abandonment of leased property. Lease term of  such contracts is shown in note 41. 2)   Commission claw-back is applicable over 60 months f rom o rigination of  the contract. 37. OTHER LIABILITIES CZK m 31 Dec 2024 31 Dec 2023 Trade payables 190 261 Payables to employees 130 127 Payables for social and health  insurance 62 58 Payables to the state 107 158 Accruals for uninvoiced services/goods 485 394 Accruals for employees bonuses 1) 397 298 Clearing account of payment  settlement 2) 1,120 621 Deferred income and accrued  expenses 36 27 Lease liabilities 1,388 1,500 Other 3) 259 67 Total other liabilities 4,174 3,511 1)   Accruals for employee bonuses as  at 31 December 2024 include bonuses  to  membe rs  of  the  Manageme nt  Board  under  the  EVIP  policy  of  CZK 205 million (2023: CZK 142 million) described  i n  note  39 and  other  management, retention or sales bonuses. 2)   Line  “Clearing  acc ount  of  payment  settlement”  comprises  especially  balances from settlement of card transactions and payments transactions  processed via the CNB clearing system. The line may result eithe r as an  asset or liability. In the case, the closing balance is an asset, it is recognised  within “Other assets”. 3)   Line  “Other”  as  at  31  December  2024  includes  an  unsolicited  dividend  for  the  years  2021  –  2024  in  the  amount  of  CZK  108  million  (2023:  CZK 2 million). 38. EQUITY 38.1 SHARE CAPITAL All of the Bank’s shares are ordinary freely transfe rable  shares  with  no  special  rights  or  res trictions  attached.  The  ordinary  shares  carry,  among  o ther  rights  provided  for  in  law  and  the  Bank’s  Articles  of  Association,  the  right  to  participate  in  the  Gene ral  Meeting  of  the  Bank  through exercising voting  r ights  (with  one  vote  per  share)  and  the  right  to  share  in  profits.  Since  23  November  2015,  the  registered  capital  of  the  Bank  had  been  CZK  511  million,  was  fully  paid  up and is  pr esented as  S hare  capital  in  the  statement  of  financial  p osition.  On  11  April  2016,  511  ordinary  registered  book-entry  shares  in  the  Bank  with  a  par  value  of  CZK  1,000,000  each  were  split  into  511,000,000  fully  paid  ordinary  registered  book-entry shares with a par value of CZK 1.00 each. On  26 November  2019 the increase  in the  registered  share  capital  was  approved  by  shareh olders  of  the  Bank  at  the  General  Meeting  and  was  accomplished  exclusively through the increase of the nominal value o f  the shares from the original nominal value  o f CZK 1.00  to  CZK  20.00.  Th e  registered  share  capital  cur rently  consists of 511,000,000 fully paid ordinary registered book-entry shares with a par value of CZK 20.00 each. Since  then,  the  Bank  has  not  issued  any  ordinary  or  other shares. The Bank did not acquire any of its own  shares. 267 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  latest  available  list  of  entities  recorded  in  the  registry  of  book-e ntry  shares  of  th e  Bank  kept  by  the  Central  Securities  Depositor y  Prague  (Centrální  depozitář  cenných  papírů,  a.s.)  with  a  shareholding  interest of m ore than 1% of the Bank’s registered share  capital  is  available  in  the  investor  relations  section  of  the  Bank’s  website  at:  https://investors.moneta. cz /shares.  Such  entities  may  no t  necessarily  be  the  beneficial  shareholders  of  the  Bank  but  may  h old  shares of the Bank for the beneficial shareholders (as  securities brokers, banks, custodians or nominees). Please  r efer  to  chapter  1.4  o f  the  Annual  financial  report to the section “Shareh older structure” for the  information on the shareholder structure of the Bank as at 31 December 2024. As far as the Bank is aware, no  shareholder was a co ntr olling entity of the Bank as at  31 Dece mber 2024. Overview of related parties holding shares of the Bank as at 31 December 2024: Shareholder 31 Dec 2024 31 Dec 2023 Number of shares Ownership in % Number of shares Ownership in % Tanemo a.s., Enti ty with significant influence on MONETA 153,000,000 29.941% 153,000,000 29.941% Tomáš Spurný,  Chairman of the Management Board 304,839 0.060% 304,839 0.060% Jan Friček,  Member of the Management Board 35,000 0.007% 35,000 0.007% Jan Novotný,  Member of the Management Board 23,300 0.005% 23,300 0.005% Carl Normann Vökt,  Vice-Chairman of the Board 35,025  0.007% 25,122  0.005% Tatiana Eichler,  closely related to the Chairman of the Supervisory Board 100,000 0.020% 100,000 0.020% Mr. Michal Petrman ’s four-year term of office in th e Bank’s Supervisory Board and Audit Committee expired in  September 2024 and therefore he was not a r e lated party as at 31 Decemb e r 2024. No other related person or o th e r related party with a rel ationship to the Bank held any shares of the Bank as at  31 Dece mber 2024 or 31 December 2023. 38.2 STATUTORY RESERVE AND RESERVE FROM REVALUATION OF FINANCIAL ASSETS Statutory reserve The reserve fund stood at CZK 102 million as at 31 December 2024 (31 December 2023: CZK 102 million) represents  Legal and statutory reserve of MONETA Money Bank, a.s. Reserve from revaluation of FVTOCI (presented in “Other reserves”) CZK m Debt instruments Equity instruments Deferred Tax Total 1 Jan 2024 - 1 - 1 Gains and losses in the period recognise d in the income statement - - - - Gains and losses in the period recognise d in Reserve from reva luation of  FVTOCI - - - - 31 Dec 2024 - 1 - 1 CZK m Debt instruments Equity instruments Deferred Tax Total 1 Jan 2023 - 1 - 1 Gains and losses in the period recognise d in the income statement - - - - Gains and losses in the period recognise d in Reserve from reva luation of  FVTOCI - - - - 31 Dec 2023 - 1 - 1 268 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 38.3 DIVIDENDS PER SHARE The following table shows dividends per share paid to  owners: CZK 2024 2023 Paid divid ends pe r share within  period 12.00 1) 8.00 1)   The  General  Meeting  held  on  23  April  2024  approved  the  dividend  payment of CZK 9 per share w hich was paid on 21 May 2024. The General  Meeting held on 19 Novembe r 2024 ap proved the dividend payment of  CZK 3 per share which was paid on 17 December 2024. On  31  January  2025,  the  Bank’s  Management  Board  announced  that  it  will  propose  to  shareholders  a dividend for the year 2024 in the amount of CZK 10  per  shar e for appr oval at the Annual General Meeting,  which will be held on 24 April 2025. The total am ount  of the distributed dividend will reach CZK 5,110 million. 39. BONUSES TIED TO THE EQUITY Executive Variable Incentive Plan (EVIP) In 2017, the variable remuneration programme Executive  Variable Incentive  Plan (EVIP) was  introduced  for the  Management Board members and other Material Risk  Takers. Since 2024, an integral part of this programme  is also the EVIP Executive Long-Term Premium Award  for the Management Board members, which is derived  from  the  fulfilment  of  mid-term  financial  targets  set  as p art of th e three-year mid-term guidance whic h is  defined and published  at the beginning  of the three- year evaluation cycle. The first award granted in 2024  was based on the fi nan cial performance for the years  2021, 2022, and  2023, evaluated against the mid-term  guidance publish ed on 5 February 2021. The total balance of accrual for EVIP disclosed in “Oth e r  liabilities” as at 31 December 2024 is CZK 205.3 milli on  (31  December  2023:  CZK  142.1  million),  of  which  CZK  102.7  million  (31  December  2023:  CZK  59.7  million)  relates  to  c ash  settled  share-based  payment  remuneration  that will  be paid in the  following year s  in  thre e  to  five  cash  instalm e nts  as  defined  in  EVIP  conditions  regardless  of  potential  termination  o f  the  membership o f the Management Board. This variable  part of  EV IP  bonu ses is  tied  to  the  total  shareholder  return (TSR), hence the amount paid will v ary according  to changes i n the market price of the Bank’s shares and  profit distributions of the Bank (dividend paid). For  more  details  about  EVIP (esp.  total  awarded  and  paid rewards from 2020 to 2024), please  refer  to  the  Remuneration Report 2024 (remuneration documents  have been published and are available on the investo rs  website  in  the  Remuneration  section  at  https:// investors.moneta.cz/corporate-documents). 40. CONTINGENT LIABILITIES 40.1 LOAN COMMITMENTS AND ISSUED GUARANTEES CZK m 31 Dec 2024 31 Dec 2023 Lo an commitment 24,986 24,101 Issued guarantees 1,186 864 Credit limits on i ssued guarantees 1) 1,387 1,372 Issued letter of credit 8 5 Total loan commitments and issued guarantees – gross carrying value 27,567 26,342 Provisions to expected credit losses (104) (115) Total loan commitments and issued guarantees – net carrying value 27,463 26,227 1)   This  line  represents  committed  limits  on  guarantees  that  can  be  withdrawn by customers. 40.2 LEGAL DISPUTES The Bank is not a party of any significant legal disputes. 41. LEASES The Bank as a Lessee The  major  lease  contracts  of  the  Bank  are  leases  of  administrative premises  in  Prague,  Ostrava,  leases  of  branches’  premises  and  space  for  ATM’s  across  the  Czech Repub lic. The Bank determines the lease term as specified in the  contract (for definite period leases) or the best estimate  made  by  management (for all  other  contracts) based  on  historical  experience  and  branch  management  strategy.  The  Bank  assesses  the  lease  term  at  commencement date and reassesses it on annual basis  or if there is a si gnificant event or significant change in  circumstances or branch management strategy. The lease payments vary with the location of  premises  and are payable either in CZK or EUR. Some of the leases  are  inde xed  annually,  depending  on  development  of  inflation. The  Bank  leases  IT equipment,  ATMs  and  advertising  spaces,  which  are  expected  to  be  c losed  wi thin  12 mo nths. These leases ar e short-term and/or leases of  low-v alue items. The Bank has elected not to re cognise  right-of-use assets and lease liabilities for these leases. 269 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Movement of Right-of-us e resulting from leases for which the Bank is a lessee is presented below: CZK m Buildings Space under ATMs Parking place IT Hardware Total Balance at 1 January 2024 1,504 61 17 - 1,582 Depreciation charge for the year (290) (1 9) (5) (4) (318) Add itions and modificatio ns to right-of-use assets 165 3 2 20 190 Derecog nition of right-of-use assets (1) (1) - - (2) Balance at 31 December 2024 1,378 44 14 16 1,452 CZK m Buildings Space under ATMs Parking place IT Hardware Total Balance at 1 January 2023 1,370 67 15 - 1,452 Depreciation charge for the year (295) (20) (4) - (319) Add itions and modificatio ns to right-of-use assets 459 1) 15 7 - 481 Derecog nition of right-of-use assets (30) (1 ) (1) - (32) Balance at 31 December 2023 1,504 61 17 - 1,582 1)   The increase in 2023 is driven by the extension of the lease term of the Prague Headquarters buildi ng by 2 years. Information about lease term of particular leased assets categories are presented below: 31 Dec 2024 CZK m Right-of-use Minimum lease term (in months) Maximum lease term (in months) Buildings 1,378 37 168 Space under ATMs 44 18 112 Parking place 14 15 168 IT Hardware 1) 16 60 60 Total 1,452 1)   In 2024, th e Bank has enter ed into a new leas e contract of IT infrastructure assets. 31 Dec 2023 CZK m Right-of-use Minimum lease term (in months) Maximum lease term (in months) Buildings 1,504 23 145 Space under ATMs 61 8 97 Parking place 17 15 142 IT Hardware - - - Total 1,582 270 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Minimum lease payments r econciliation: CZK m Minimum lease payments under all leases  as at 31 December 2024 1,508 Recognition exem ption for short-term and low- value leases 17 Effec t from discounting at the incremental  bo rrowing rate 1) (120) Liabilities from leases as at 31 December 2024 1,388 1)   The weighte d  average of  the borrowing rate used for  discounting lease  liabilities for 2024 is  2.87% (2023: 2.72%)  for contracts  denominated in  CZK and 3.78% (2023: 3.76%) for contracts denominated in EUR. CZK m Minimum lease payments under all leases  as at 31 December 2023 1,642 Recognition exem ption for short-term and low- value leases 25 Effec t from discounting at the incremental  bo rrowing rate 1) (142) Liabilities from leases as at 31 December 2023 1,500 1)   The weighte d  average of  the borrowing rate used for  discounting lease  liabilities for 2024 is  2.87% (2023: 2.72%)  for contracts  denominated in  CZK and 3.78% (2023: 3.76%) for contracts denominated in EUR. There  were  no  leases  with  residual  value  guarantees  or  leases  not  yet  commenced  to  which  the  Bank  is  committed. Some  property  leases  contain  early  termination  or  extension option exercisable by the Bank up to one year  before the en d o f the non-cancellable contract per iod.  Where practicable, the Bank seeks to in clude extension  options in new leases to provide operational flexibility.  The extension options held are exercis able only by the  Bank and not by the lessors. The Bank assesses at lease  commencement date whether it is reasonably certain  to exercise the extension options. T he Bank reass e sses  whether it is reasonably certain to exercise the options  if there is a significant event or significant changes in  circumstances within its control. A maturity analysis of lease liabilities: CZK m Total cash outflow for leases 1)  in 2024  (as at 31 December 2024) 358 Future expected cash outflows - undiscounted 1,508   out of which: less than one year 338   out of which: between one and three years 578   out of which: more than three years 592 Effec t from discounting at the incremental  bo rrowing rate (120) Total lease liabilities as at 31 December 2024 1,388 1)   The  figure  also  includes  interest  payment  of  CZK  49  million  (2023:  CZK 27  million). CZK m Total cash outflow for leases in 2023  (as at 31 December 2023) 325 Future expected cash outflows - undiscounted 1,642   out of which: less than one year 322   out of which: between one and three years 553   out of which: more than three years 767 Effec t from discounting at the incremental  bo rrowing rate (142) Total lease liabilities as at 31 December 2023 1,500 The Bank as a Lessor The  Bank  leases  out  its  leased  premises  that  have  been  presented  as  part  of  a  right-of-use  ass et  to  its  subsidiaries  in  the  form  of  operating  leasing  and  sub-leases  part  of  the  HQ  building  in  Prague  to  the  third party. Minimum Lease Payments - Operating leases CZK m 31 Dec 2024 31 Dec 2023 No later than one year 25 - Between one and two years - - Between two and t hree years - - Between three and four years - - Between four and five years - - Later than five years - - Total minimum lease payments 25 - 271 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 42. TRANSACTIONS WITH RELATED PARTIES The  Bank’s  related  parties  in clude  entities  with  significant  influence  on  MONETA,  subsidiaries,  associates,  key  management personnel, Supervisory Board and their close family members. Transactions  provided  by  the  B ank  to  related  parties  represent  bank  services  (esp.  loans  and  interest-bearing  deposits) and other se rvices such as administrative support, finance, risk or compliance function. Expenses from  transactions  with  related  parties  comp rise  remuneration  to  members  of  the  Supervisory  Board,  Management  Board and othe r Key Executive Managers. Transactions with related parties are carried out in the normal course of business operations and conducted under  normal market conditions. The balances at year end are uns ecured. Transactions with related parties: 2024 CZK m Related parties with significant influence on MONETA Subsidiaries Associates Key members of the management 1) and Supervisory Board Total Statement of financial position Lo ans and receivables to customers - 11,644 - 36 11,680 Derivative fi nancia l instruments with positiv e fair  values 42 - - - 42 Hedging deriva tives with positive fa ir values 294 - - - 294 Other assets - 9 - - 9 Due to customers 41 163 - 31 235 Due to banks 11 214 - - 225 Issued bonds - 9,435 - - 9,435 Derivative fi nancia l instruments with negative  fair values 49 - - - 49 Hedging deriva tives with negative fair values 271 - - - 271 Other liabilities - ( 3) - - (3) Statement of profit or loss Inte rest and similar income 128 9 - - 137 Inte rest expense and similar char ges (35) (344) - - (379) Fee and commission income 8 5 - - 13 Fee and commission expense (4) - - - (4) Net income from financial operations 69 - 3 - 72 Operating expenses (44) 2) (19) (21) (134) (218) Dividend income - 1,685 - - 1,685 Other operating income - 10 0 - - 100 1)  Includes members of the Management Board and other Key Executive Managers. 2)  Comprises mainly telecommunication services. 272 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 2023 CZK m Related parties with significant influence on MONETA Subsidiaries Associates Key members of the management 1) and Supervisory Board Total Statement of financial position Lo ans and receivables to customers - 11,479 - 34 11,513 Derivative fi nancia l instruments with positiv e fair  values 41 - - - 41 Hedging deriva tives with positive fa ir values 317 - - - 317 Other assets - 73 - - 73 Due to customers 30 129 - 20 179 Due to banks 289 28 - - 317 Issued bonds - 10,486 - - 10,486 Derivative fi nancia l instruments with negative fair  values 47 - - - 47 Hedging deriva tives with negative fair values 335 - - - 335 Other liabilities - 1 - - 1 Statement of profit or loss Inte rest and similar income 251 70 - - 321 Inte rest expense and similar char ges (32) (335) - - (367) Fee and commission income 6 16 - - 22 Fee and commission expense (11) - - - (11) Net income from financial operations (470) - - - (470) Operating expenses (48) 2) (33) (24) (124) (229) Dividend income - 1,291 3 - 1,294 Other operating income - 91 - - 91 1)  Includes members of the Management Board and other Key Executive Managers. 2)  Comprises mainly telecommunication services.  Loans and receivables to customers in the amount o f CZK 11,644 million as at 31 December 2024 (31 De cember 2023:  CZK  11,479  million)  represent  intercompany  loans  to  the  Bank’s  subsidiaries  (MONETA  Leasing,  s.r.o.,  MONETA Auto, s.r.o.). The line “Operating expenses” from transactions with key members of the management and Supervis ory Board  includes fixed remuneratio n paid and variable remuneration recognis ed to members of the Management Board,  Supervisory Board and other Key Executive Managers during the year. Tanemo a.s., a subsidiary of PPF Group, became a related party with significant influence on MONETA in 2021, thus  transactions with entities from PPF Group are considered as related parties transactions in 2024 and 2023. 273 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 42.1 REMUNERATION TO MEMBERS OF SUPERVISORY BOARD, MANAGEMENT BOARD AND OTHER KEY EXECUTIVE MANAGERS The  following  re mun e ration  was  paid  to  the  key  members of  the  management and Supervisory Bo ard  during the year: CZK m 2024 2023 Short-term employee benefits, including: 101 97    Members of the Management  Bo ard and Other Key Executive  Managers 89 85    Members of the Supervisory Board 12 12 Other long-term employee benefits, including: 33 27    Members of the Management  Bo ard and Other Key Executive  Managers 33 27 Total remuneration 134 124 This  table  shows  salaries,  compensation  and  other  benefits  that  has  be e n  paid  to  members  of  the  Management  Board,  Supervisory  Board,  Audit  Committee and other Key Executive Managers during  the year. It also includes long-term benefits paid during  the  year  that  were  granted  in  previous  years.  With  respect to the immaterial  effect of the time  value o f  money, liabilities resulting from long- term benefits are  not being discounted. 43. RISK MANAGEMENT The  Bank  aims  to  achieve  competitive  returns  at  an  acceptable ri sk  level as part of  i ts business a ctivities.  Risk management covers the contro l of risks associated  with all business activities in the environment in which  the Bank operates and ensures that th e risks taken are  in compliance with re g ul atory limits, as well as falling  within its risk appetite. When managing risks, the Bank relies on three p i ll ars: •  pe ople  (the  qualifica tions  and  ex perience  of  its  employees); •  risk governance (including well -defined information  flows,  processes,  model  governance  and  responsibilities); and •  risk  data  (including  the  us e  of  sophisticated  analytical instruments and technologies). This combination has supported the Bank’s success and  the stab ility of its economic results. The Bank’s risk management processes are und e rpinned  by  advanced  analytics  based  on  an  enterprise-wide  data war e house and centralised underwriting process.  This allows the Bank to price on a risk basis, according  to its in-house scoring and rating models. The l evel of risk is measured in ter ms of its impact on  the  value  of  assets  and/or  capital  as  well  as  on  the  profitability of the Bank. To  determine this, the Bank  evaluates potential effects on its busines s of changes in  political, economic, market and operational conditions,  as well as changes in client s’ creditworthiness. 43.1 CAPITAL MANAGEMENT The framework used for capital management involves  monitoring and  complying  with the  capital  adequacy  limit  in  accordance  wi th  the  Basel  III  r ules  codified  in  Regulation  (EU)  No.  575/2013  of  the  European  Parliament  and  of  the  Council  of  26  June  2013  on  prudential  re qui rements  for  credit  ins titutions  and  investment  firms  and  amending  Regulation  (EU)  No. 648/2012, as amended (hereafter “CRR” ), Directive  2013/36/EU  of  th e  European  Parliament  and  of  the  Council of 26 June 2013 on access to the activity of credit  institutions  and  the  prudential  supervision  of  credit  institutions and investment firms, amending Directive  2002/87/EC  and  repealing  Directives  2006/48/EC  and  2006/49/EC,  as  amended  (hereafter  “CRD”),  and  Directive  (EU)  2014/59  of  the  European  Parliam e nt  and  of  the  Council  of  15  May  2014  establishing  a  framework  fo r  the  recovery  and  res olution  of  credit  institutions  and  investment  firms,  as  amended  (hereafter “BRRD”), and their i mplementing measures.  This European regulatory framework was significantly amended in 2024  with effectivity from 1 January 2025. Furthermore, from a local perspective, the regulatory  framework is given mainly by Banking Act No. 21/1992  Coll., as amended, the CNB Decree No. 163/2014 Coll.,  as amended, and Act No. 374/2015 Coll., o n recovery  and resolu tion in the financial market, as amended. The  Bank  manages  its  capi tal  in  order  to  m eet  the  regulatory  capital adequacy  requirements  prescribed  in the abovementioned regulations and allow the Bank  to  continue  its  op e rations  on  a  going  concern  basis  while  ma ximising the  r eturn to  shareholders  through  the optimisation of the Debt-to-Equity Ratio. The  minimum  regulatory  capital  requirement  (Pillar  I) is equal to 8% o f risk-weighted assets. Additionally,  in  2024,  the  Bank  was  obliged  to  maintain  on  a consolidated basis the Pillar II capital requirement in  the amount of 2.3% (from 1 January 2024). The Bank  was  also  obliged  to  maintain  a  mandatory  capital  conservation  buffer  of  2.5%  and  a  countercyclical  capital buffer (of 2% from 1 January 2024, 1.75% from  1  April  2024  and  1.25%  from  1  July  2024)  that  were  applied for the whole Czech banking sector. Therefore, the overall minimum regulatory capital requirement on  an indiv idual basis was 11.75% and on a consolidated  274 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 basis 14.05% as at 31 December 2024. From 1  January  2025, the Bank is obliged to maintain the Pillar II capital requirement on a conso lidated basis in the amount of  2%. In addition, the Czech National Bank decided to set the systemic r isk buffer at 0.5% effective from 1 January  2025,  which  means  the  overall  minimum  regulatory  capital  requirement  for  the  Bank  on  a  consolidated  basis increased to 14.25% from 1 January 2025. The  Bank  decided  to  maintain  as  a  target  a  capital  adequacy  ratio  at  one  percentage  point  above  the  overall regulatory minimum c apital requireme nt both  on an  i ndividual and a consolidated basis. This internal  target  is  subject  to  an  ongoing re-assessment  by  the  Management  Board  of  the  Bank  based  on  business  results, regulatory changes and development needs. According  to  the  Recovery  and  Reso lution  Act  implementing  BRRD,  banks  in  the  Czech  Republic  must comply with the Minimum Requirement for Own  Funds  and  Eligible  Liabilities  (hereafter  “MREL”).  In  2024, the Bank had to f ulfil the MREL requirement on  an individual basis  of  17.2% of its total  risk exposure  and  4.92%  (from  1  Januar y  2024)  and  5.04%  (from  26 March 2024) respectively, of its total exposure.  The  MREL requirement is appli ed for the Bank only on the  individual basis. To  calculate  the  regulatory  capital  requirement  for  credit  risk  on  an  individual  basis  the  Bank  uses  the  stand ardised  approach.  To  calc ul ate  the  c apital  requirement for operational ri sk  on an individual basis  the Bank uses the standardised method. The Bank has calculated  regulatory  capital  requirements  against  market risk of the Tra di ng book since 3Q 2018. In addition to the Pillar I and to ensure a robust capital  management framework, the Bank performs under the  Pillar II a calculation of internal capital requirements,  regular capital planning and stress testing. To calculate the  internal  capital  requirement,  the  Bank  applied  methods  similar  to  advanced  approaches  according  to regulatory the Pillar I on a probability level at least  99.9%. The  Bank  creates  a  mid-term  capital  outlook  on  a  r egular  basis,  which  predicts  capital  adequacy  based  on  the  predicted  development  of  external  environment,  financial  markets  and  the  Bank’s  port folio  characteris tics.  Next  to  the  base  capi tal  plan,  the  B ank  assesses  the  c apital  position  unde r  several  stress  scenarios.  These  are  usuall y  based  on  a  worsening  of  the  macroeconomic  environment  and key risks, which  are  i dentified  during the Pillar II  workshop  with  members  of  the  Bank’s  Management  Board, selected senior managers of the Bank and key  Executive representatives of subsidiari e s. The  Bank’s capital primarily consists  of  share capital,  share p remium and retained earnings that is the highest  quality C ommon Equity Tier 1 capital, and issued Tier  2 capital. The Bank incorporates into Common Equity  Tier 1 capital periodically (subject to permissions from the CNB) portion of its quarterly  net profit lowered by  expected dividend payments. The  Bank  met  all  regulatory  require ments  regarding  capital adequacy in 2024. Regulatory  capital  on  an  individual  basis  and  its  components: CZK m 31 Dec 2024 31 Dec 2023 Common Equity Tier 1 capital CET 1 Subscrib ed share capital 10,220 10,220 Share premium - - Sta tutory res erve and Retained  earnings including eligible profi t for  the year 17,652 17,905 Reserve from revaluation of FVT OCI 1 1 Items deductible from Tier 1 capital (1,592) (1,195) Tier 2 capital Qualifying subordinated liabilities 6,557 7,249 Total Regulatory Capital 32,838 34,180 43.2 CREDIT RISK Credit risk is the risk of loss for a party resulting from the  failure  of  a  counterparty  to  me et  its  obligations  arising from the terms and conditions of the contract  under  which  the  party  became  the  creditor  of  this  counterparty.  The  Bank  is  exposed  to  cre dit  risk  in  particular  in  the  case  of  credits  granted,  unallowed  debits,  guarantees  provide d,  letters  of  credit  issued,  bonds p urchased, derivatives and interbank deals. The Bank continues to improve its  analytical processes  for  quantifying  the  impact  of  climate  change  risk  on  overall portfolio credit risk. So far, the results have not  indicated any impact on expected credi t losses. 43.2.1 Credit Risk Management Credit  risk  management  is  organised  along  the  following appr oval processes: Individually  managed  exposures  represent  expo sure s  to  entrepreneurs and  SMEs  where  loans  and  lines  of  credit are approved based on an individual assessment  of the borrower’s creditworthiness in connection with the loan size. Portfolio  managed  exposures  inc lude  exposures  to  natural  p e rsons,  natural  persons  acting  as  entrepreneur s ,  and  SMEs  w here  loans  and  lines  275 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 of  credit  are  approved  using  an  automated  credit  scoring process. Mortgages have a spec ific position as  mortgages form a part of the retail exposures (usually  port folio managed) but a number of the processes and  methods  used  fall  within  the  category  of  individually  managed exposures. The  expo sure s  to  counterparties  on  the  financial  markets include the exposures to financial institutions  and  governments.  These  e xposures  primarily  arise  as  a  p art  of  liquidity  management  and  market  risk  management.  The  cre dit  risk  of  these  exposures  is  managed through limits to countries and c ounterparties  approved mainl y based on external ratings. In 2024, the  Bank started to clear selected OTC derivative contracts  with central counterparties. Individually managed exposures (a) Internal Rating The  Bank  uses  internal  statistical  and  expert  judgement-based  rating  models,  which  us e  the  most  recent  available  qualitative  and  quantitative  information,  to  estimate  the  probability  that  a  commercial  borrower  will  default  in  the  following  12  months.  The  rating  calculation  is  based  on  an  asses sment of financial, behavioural, quantitative an d  qualitative information about the customer’s business.  The rating models assign an obligor rating (OR) grade  from zero to twenty-one to borrowers that are not in  default.  Borrower s  in  d efault  are  given  the  internal  rating  grade twenty-two  (OR22).  External  ratings  are  also calibrated to the OR scale. The 23 ORs and their  associated default probabilities representing the rating grade: •  OR 0 to 5: 0% to 0.07%; •  OR 6 to 10: 0.08 % to 0.39%; •  OR 11 to 15: 0.59% to 3.03%; •  OR 16 to 21: 4.55% to 35.00 %; •  OR 22: 100%. For  the  clients  wi th  double  e ntry  book-keeping  and  yearly  turnover  above  predefined  threshold,  the  internal  statistical  rating  model  estimating  level  of  credit risk based on customer’s financials is e xtended  with  an  expert  judgement-based  qualitati ve  and  ESG  module.  The qualitative  module  considers  qualitative  criteria  suc h  as  evaluation  of  the  company  owner,  management,  market  position,  product,  supplier/ custome rs chain, etc. ESG module considers the impact  of environmental, so cial and governance factors to the  credit  risk.  The  outputs  from  these  modules  modify  the  rating  derived  f rom  the  internal  statistical  rating  model. For  comm e rcial  real  estate  (“CRE”)  clients,  the  Bank  uses  an  expert  judgement-based  model  considering  project  information,  sp onsor  track  record,  risk  associated  with  the  construction  and  the  location  of  the project. The ratin g  grades assigned by the model  cover only a subset of the abovementioned OR scale. In order to ensure methodological and factual accuracy,  models  are  monitor ed  on  a  regular  basis.  Internal  rating is used inter alia for the definition of approval  authorities and categorisation (see note 43.2.2). (b) Underwriting The  approval  process  is  based  on  an  individual  evaluation of a borrower and is executed at the Bank.  Approval authori ties are set on an individual basis and  are  determined  by  combining  the  level  of  exposure,  the borrower’s internal  rating,  maturity, product  an d  collateral. As part of the approval process, the Bank assesse s the  finan cial  situation  of  the  prospective  borrower,  the  persons economically related to the borrower and the collateral  being  offered  using  internal  and  external  data sour ces, including credit registers. The implemented  IT solu tions support the process of  SME  c redit  approval  and  administration  f acilitating  the  preparation  of  credit  applications,  linking  the m  with  data  warehouses,  document  stora ge  and  the  subsequent  production  of  contract  documentation.  The  system  enables access  to  financial  analysis  tools  including internal ratings. (c) Monitoring and Reporting All SME clients are monitored both individually and on  a port folio basis. Reports on the quality of the commercial portfolio are  discus sed by the Credit Committee (CRCO) each month. Individually-managed  exposures  above  a  certain  threshold  are  also  subject  to  at  least  a  yearly  credit  review, which follows  the  approval process similar to  new exposures. (d) Collection The Bank manages the Bank’s loans where recoverability  of the exposure is not reasonably assured with the aim  of  achieving  maximum  recovery.  The  Bank  engages  affected  bo rrowers  with  a  view  to  recovering  the  Bank’s  e xposure. This may  involve  taking legal action  against  the  borrower,  res tructuring  the  loans,  taking  relevant  legal  steps  to realise  collateral,  debt  sale  or  representing the Bank in insolvency proceedings. 276 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Portfolio managed exposures (a) Scoring Instruments When  approving  and  monitoring  portfolio-managed  exposures,  internal  scoring  models  are  used.  These  statistical  models  cl assify  individual  b orrowers  into  categories  of  homo geneous  exposures  using  socio-demographic  and  behavioural  data  as  well  as  information  from  the  cr edit  bureau.  The  calculated  score for the commercial portfolio managed exposur es  is, similarly to individually managed exposures, mappe d  to th e OR scale. The calculated score for retail portfolio  managed  performing  exposures  is  grouped  into  five  credit  rating  (CR)  grades  with  associated  OR  grades  and bands  of probabilities  of defaul t  in the following  12 months as outlined below: •  CR1: OR 13 and better (1.3% and lower); •  CR2: OR 14–OR 15 (1.3% to 3.2%); •  CR3: OR 16–OR 17 (3.2% to 7.7%); •  CR4: OR 18–OR 19 (7.7% to 15.8%); •  CR5: OR 20–OR 22 (15.8% and greater). In order to ensure methodological and factual accuracy,  models are m onitored on a regular basis. (b) Underwriting The appr oval process is based on the use of internally  or externally d eveloped scoring models and access to  external  data  sources  (in  particular  credit  registers).  Approval strategies are set by the Bank. The Bank underwriters may approve individual exposures  that do not pass the au tomatic approval process. Mortgages are  mostly approved based on an individual asses sment of the prospective borrower supported by  input  from  internally-developed  scoring  models  with  approval  required  from  an  authorised  underwriter  from the Bank. (c) Monitoring and Reporting The Bank regularly monitors segments of the portfolio  managed  exposures,  which  are  reported  monthly  to  the Credit Committee (CRCO). (d) Collection The  Bank  has  a  comprehensive  co llection  process  which  includes  an  automated  collection  system.  The  Bank  optimise s  its  overall recovery  capacity  and  performance by using external capabilities (collection  agencies  and  law  offices)  as  well  as  debt  sales  of   non -performing receivables usually within 24 mo nths  after the default. Within the collection process, the portfolio approach  is  taken  for  all  Ret ail  customers  and  Small  Business  custom e rs  in  the  early  collections  process  and  for  all  unsecured  exposures  in  the  pre-legal  and  legal  collections  process.  The  in dividual  approach  is  taken  for  mortgages  and  o th e r  secured  exposures  in  th e  pre-legal and legal process. Counterparties in the Financial Market (a) External Rating The  main  tool  for  measuring  the  cre dit  risk  of  countries  and  counterparties  (financial  insti tutions  and  governments)  with  respect  to  transacti ons  in  finan cial  markets  is  the  rating  set  by  international  rating a gencies: Standar d & Poor’s, Mood y’s and Fitch .  The Bank sets individual limi ts for individual co untries  and  counterparties,  for  which  it  requires  a  minimum  short-term  rating  of  A -1/P-1/F1  (exceptions  must  be  properly approved). (b) Approval Process The  approval  of  limits  is  based  on  an  individual  asses sment with approval required from the Chief Risk  Officer (CRO) or an authorised approver from the Bank.  The approval levels are determined individually and are  based primarily on the combination of the limit, external  rating, maturity and product. In selected cas e s , the prior  approval of the Credit Committee (CRCO) is required. (c) Monitoring and Reporting All  counterparties  and  countries  with  a  determined  limit  are  monitor ed  individually.  The  subject  of  the  monitoring  i s  primaril y  the  external  rating.  Remedial  measures (in particular a decrease/cancellation of the  limit, categorisation of receivables) are approved by an  authorised approver from the Bank. The Bank monitors comp liance with limits.  Any breach  of limits is  escalated  to the Senio r  Manager Treasury  and CRO. In addition,  breaches over certain  level  are  escalated also to the members of the Asset & Liability  Committee (ALCO). 43.2.2 Categorisation of Exposures The  Bank  assigns  exposures  to  individual  categor ies  in  compliance  with  CNB  Decree  No.  163/2014  Coll.  The  categorisation  is  used  mainly  for  regulatory  reporting and calculation of loan loss allowances. The  categorisation is as follows: •  exposures without  borrower  default are  classified  as performing; •  exposures  where  th e  borrower  has  defaulted  are  classi fied as non- performing. 277 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 A  default  of  a  borrower  i s  recognised  if,  given  the  borrower’s  financial  and  economic  situation,  full  repayment  of  exposures  toward  suc h  a  b orrower  is  unlikely. This definition is in line with the definition of  default according to EBA guidelines on the application  of  the  definition  of  default  un der  Article  178  of  Regulation  (EU) No.  575/2013  (EBA/GL/2016/07).  The  Bank considers a borrower to be in de fault mainly if: •  the material part of pr i ncipal, interest or fees of any  borrower’s exposure is more than 90 days past due, •  any  material  exposure  was  re struc tured  or  categorised  as  non-performing  forborne  in  past  12 months due to a deterioration in the borrower ’s  financial situation, •  the borrower’s internal rating is OR 2 2, •  a competent court has issued a decision on settling  the  borrower’s  bankruptcy  via  a  discharge  from  debt s or reorganisation, •  a borrower is subject to b ankruptcy or settlement  proceedings. 43.2.3 Collateral Assessment The Bank determines the nature and extent of collateral  that  is  required  either  by  individually  assessing  a  prospective  borrower’s  creditworthiness  or  as  an  integral  part  of  the  given  credit  product.  The  Bank  considers the following t ypes of collateral acceptable  for mitigating the credit risk on a loan or line of credit: •  cash/depos its; •  securities; •  account receivables; •  bank guarantees; •  guarantee of a r e liable third party; •  insurance; •  real estate properties; and •  movab le  assets  (machinery,  equipment,  breeding  stock). For mortg ages primar i ly real estate collateral is used,  for commercial loans all types of coll ateral may be used.  Retail consumer loans, credit cards and overdraf ts are  unsecured. To  determine  the  r ealisable value  of  a  collateral, the  Bank  uses  internal  and  external  expert  appraisals.  Internal  appraisals  are  processed  by  the  AML  &  Collater al  mana gement  department  of  the  Risk  Management  D ivision,  which  i s  a  department  operating  independently  of  the  Bank’s  sales  and  underwriting  departments.  The  ultimate  realisable  value of the collateral is then set by applyin g collateral  acceptance ratios reflecting the Bank’s ability to realise  the  collateral  in  case  of  default.  Maximum  values  o f  collateral acceptance ratios are approved by the Credit  Committee (CRCO). 43.2.4 Allowances Calculation Allowances  for credit  losses  are determined  using an  expected c redit loss approach as required under IFRS 9. The  measurement  of  expected  credi t  losses  and  the  assessment  of  significant  increases  in  credit  risk  considers information about  past events  and  current  conditions  as  well  as  reasonable  and  supportable  forec asts  of  future  events  an d  economic  conditions.  The  estimation  and  application  of  forward-looking  information requires significant judgement. To  calculate  allowances,  the  portfolio  is  divided  into  three  St ages  and  POCI  (Purchased  or  Originated  as  Credit  Impaire d).  The  p ortfolio  is  further  segmented  into commercial and retail exposures by product. POCI  includes exposures originated as credit impaired. These  represent  modified  financial  assets  where  material  concessions  were  granted  to  obligors  in  default .  Exposures which do not qualify for POCI are assigned to  Stage 1, Stage 2 or Stage 3. Non-performing exposures  belong to St age 3. Performing exposures are as signed to  Stage 2 when a significant increase in credit risk (SICR)  occur red compared  to their origination . Exposures that  are not assigned to Stage 3 or 2 belong to Stage 1. The Bank considers mainly the following situations as  SICR: •  customer’s days past due are higher than 30; or •  qualitative  cr iteria  including  behavioural  risk  indicators suggest deterioration in credit risk; or •  absolute  remaining  li fetime  probability  of  default  (PD)  at  rep ortin g  date  is  higher  than  the  specified  threshold and any of the following conditions is met: 1.   the  r e lative  change  of  the  absolute  and  annualised  remaining  lifetime  PD  at  reporting  compared  to  ori gi nation  is  higher  than  the  specified relative threshold; 2.   the absolute increase of th e absolute remaining  lifetime PD at reporting compared to originatio n  is higher than the specified absolute threshold.  The thresholds are set by the Bank. The Bank estimates a 12-month expected credit loss (ECL)  for Stage 1 exposures and lifetime expected credit loss  for Stage 2, Stage 3 and POCI. The Bank also uses multiple  macroeconomic  forecasts  for  estimation  of  future  losses; thus the future development of macroeconomic  variables is reflected in risk parameters. The sensitivity  of the ECL mode l  is differentiated across  the portfo lio  segments  with  a  sufficient  level  o f  homo geneity  in  relation to the underlyi ng credit risk. The main factors  influencing the level of ECL are unemployment rate  and  rate of GDP growth. Th e Bank uses three macroeconomic  scenarios  derived  from  the  base  macroeconomic  trajectory with assigned probabilities: optimistic (25%),  base (50%) and adverse (25%). 278 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  calculation  of  allowances  is  based  on  statistical  models.  These  models  are  used  for  th e  calculation  of  the  probability  of  default  (PD),  l oss  given  default  (LGD),  exp osure  at  default  (EAD)  and  the  cure  rate  (CR).  Loan  loss  allowances  fo r  some  n on-performing  commerc ial  individually  managed  exposures  are  se t  individually based on expected discounted cash flows. In situations, where the statistical models used for the calculation  of  allowances  do  n ot  sufficiently  capture  the forward-looking risks at the ECL level, management  overlays  are  applied.  Management  overlays  are  descr i bed in detail below. PD and CR calculation PD and CR are calculated based on the transition matrices  model.  Tr ansition  matrices  track  migration  between  rating grades, defaulted and cured status. They provide  an  intuitive  and  comprehensive  overview  of  portfolio  movements ac ross time. From these matrices through- the-cycle (TTC) matrices are created for each segment  that are independent of the economy’s position within  the  macroeconomic  cyc le.  PIT  (point-in-time)  matrices  for eac h segment and month are created by conditioning  the TTC matrices with an adjustment for the current and  expected  state  of  the  macroeconomy.  PD  and  CR  are  then derived from PIT matrices. LGD calculation For  the  majority  of  exposures  without  collateral  and  for an unsec ured part of th e collateralised exposures,  models  reflecting  histori cal  recoveries  discounted  by  the original  e ffective interest rate  are  used to derive  LGD parameters. LGD for the collateralise d part of the  exposure  is  based  on  forward  -looking  expectations  regarding  the  future  collateral  value  bas ed  on  macroeconomic scenarios. EAD calculation The exposure at default is an estimate of the exposure  at a future default date, taking into account expected  changes  in  the  exposure  after  the  reporting  date,  including repaym e nts of prin cipal and interest, whether  scheduled  by  a  contract  or  otherwise,  expected  drawdowns  on  committed  facilities,  and  accrued  interest from missed payments. There  is  a  provision  created  for  undrawn  l oan  commitments by using  estimate  of utilisation in  case  of default that determines the amount of loan drawn. Impact of Macroeconomic Environment Deterioration on Allowance Calculation To  reflect  the  implications  of  the  macroeconomic  environment  evolution,  the  Bank  continuously  monitored the economic outlooks of the CNB and the  Ministry  of  Finance  of  the Czech Republic  and  based  on these outlooks, ma cro-economic forecasts for the  estimation of future losses from financial assets were  formulated. The latest update of the forward-looking  macroeconomic scenarios took place in August 2024. In  2024,  the  mac roeconomic  situatio n  related  to  an  environment  of  high inflation and  high  interest rates   has  partially  normalised  relative  to  2023.  For  this  reason,  the  Bank  continued  to  maintain,  backtest  and  review  the  framework  of  management  overlays  to  compensate  for  the  lack  of  sensitivity  of  the  IFRS  9 model to the high-interest rate environment. These  reviews resulted in partial releases of the management  overlay  amounts  reflecting  the  relative  improvement  of the macroeconomic environment. In  May  2024,  the  Bank  decided  to  dissolve  the  management overlay in the amount of CZK 80 million  addressin g the increased level of expected credit losses  associated  with  exposures  secured  by  the  COVID-19  guarantee expiring within 12 consequent months. The  dissolution was  motivated  by the  fact that the  initial  assumptions had no t mater ialised. Management overlay – Pool Managed Exposures The  pur pose  o f  this  management  overlay  was  to  account  for  the  impact  of  the  high-interest  rate  and  high-inflation environment on expected credit losses. Throughout  2024,  the  Bank  c ontinuously  monitored  and  updated  the  existing  management  overlay  for  the  portfolio  of  performing  mortgages,  consumer  loans and small business loans. These regular reviews  included also backtest of overlay assumptions.  As a part of these reviews, an evaluation of application  and activation conditions was performed. Application  conditions  describe  a  macro economic  environm e nt  where  a  lack  of  IFRS  9  mod e l  sensitivity  can  be  assumed due to the specificity of the enviro nment of  high  inflation  and  high  interest  rates.  Meeting  these  conditions is a pre-requisite to the application of the  management  overlay.  Deterioration  of  the  po rtfolio  credit  quality in  association with  the  environment  of  high inflation and high interest rates is evaluated based  on  activation  conditions.  In  case  these  conditions  are  met,  a  dec rease  in  the  overlay  amount  can  be  considered  to  offset  the  credit  loss  materialisation.  Evaluation  of  app lication  and  activation  conditions is  discus sed  by  the  Credit  Committee  (CRCO)  as  a  part  of  the  regul ar  quarterly  report.  In  case  of  activation  conditions violation or in case the activation conditions  are met, the CRCO  decides about  the  release plan of  the  overlay  amount  based  on  the  evaluation  of  the  current  macr oeconomic  situati on  and  the  forward- looking outlook. 279 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  amount  o f  the  management  overlay  was  determined  based  on  the  identification  of  the  exposures  exposed  to  the  potential  credit  loss  materialisation  in  connection  with  the  high-inflatio n  and  high-interest  rates  environment.  The  potentially  vulnerable exposures were  identified according to the  available  information  about  the  inc ome/revenue  of  client s accounting for increased c osts associated with  the high inflation and interest rate level. The amount  of the mana gement overlay was derived as the amount  of loan loss allowances required to offset the assumed  share  of  these  potentially  vulnerable  exposures  defaulting.  T he  assumpti on  of  the  d efault  rate  applied  to  potentially  vulnerable  balances  was  kept  at  15%.  Additionally,  since  the  activation  conditions  indicatin g  the  materialisation of  the  credit risk in the  commerc ial  pool  managed  segment  were  triggered,  the proportionate amount of the management overlay  was  deducted  from  the  final  management  overlay  amount. As a result, the management overlay amount  decreased to CZK 338 million as at 31 December 2024 compared to CZK 490 million as at 31 December 2023. The  sensitivity  of  the  management  overlay  amount  to  the  change  of  the  assumed  defaul t  rate  by  1%  (increase from 15% to 16%) stood at CZK 52 million as  at 31 Dece mber 2024. Management overlay – Commercial Individually Managed Exposures The  pur pose  o f  this  management  overlay  was  to  account  for  the  risks  asso ciated  with  the  impact  of  the high-interest rate environment on expected credit  losses. Throughout  2024,  the  Bank  c ontinuously  monitored  and  updated  the  existing  management  overlay  for  the  portfolio  of  performing  commercial  individually  managed  exposures.  These  regular  reviews  included  also backtest of overlay assumptions. As a part of these reviews, an evaluation of application  and  activation  conditions  was  performed.  Application  conditions  describe  a  macroecon omic  environme nt  where a lack of IFRS 9 model sensitivity can be assumed  due to the spec ificity of the environment of high inflation  and  high  interes t  rates.  Me eting  th ese  c onditions  is  a  pre-requisite  to  the  application  of  the  management  overlay. Deterioration of the portfolio credit quality in  association with the environment of high inflation and  high  interest  rates  is  evaluated  based  on  activation  conditions. In case these conditions are met, a dec rease  in the overlay amount can be considered to offset the  credit  loss  materialisation.  Evaluation  of  applic ation  and  activation  conditions  is  discussed  by  the  Credit  Committee  (CRCO)  as  a  part  of  the  regular  quarterly  report.  In  case  of  a ctivation  conditions  violation  or in  case the activation c onditions are m et, the CRCO decides  about the release plan of the overlay amount based on  the evaluation of the current macroeconomic situation  and the forward-looking outlook. The amount o f the management overlay was determined  based on the identification of the exposures e xposed to  the  potential  credit  lo ss  materialisation  in  connection  with the high-interest rate environment. The potentially  vulnerable  ex posures  were  identified  assuming  that  client s with high levels of a debt/EBITDA ratio are more  prone  to  the  high -interest  rate  environment  if  their  CZK  loans  are  with  a  floating  rate  or  with  recent  or  upcoming re-fixation to a much higher interest rate. The  amount of the management overlay was derived as the  amount  of  loan  loss allowances  required  to offset  the  assumed share of these potentially vulnerable exposur es  defaulting. Th e  assumption of the default  rate applied  to  potentially  vulnerable  balan ces  was  kept  at  15%.  Additionally,  since  the  activation  conditions  indicating  the materialisation of the credit risk in the commercial  individually  managed  segment  were  triggered,  the  proportionate amount of the management overlay was  deducted from the final management overlay amount.  As a result, the management overlay amount decreased  to CZK 54 million as at 31 December 2024 compared to  CZK 79 million as at 31 December 2023. The  sensitivity  of  the  management  overlay  amount  to  the  change  of  the  assumed  defaul t  rate  by  1%  (increase from 15% to 16%) stood at CZ K 4 million as at  31 Dece mber 2024. Write-off principles Write-off is applied when one of the below criteria is met: •  Zero  or  negligible  cash  flow  is  expected  to  be  received; •  Collection  process  has  been  cancelled  and  as  a con sequence the Bank does not expect any cash  flow  (e.g.  collection  cost  would  be  higher  than  expected recovery); •  Finished insolvency pr ocedure; •  Inheritance  proceedings  ended  with out  a  legal  successor  (where  the  receivable  was  part  of  the  inheritance); •  Fraudulent lo an; •  Stopped execution of the receivable; •  Liquidation of the debtor (legal person). Rebuttable presumption “zero or n egligible c ash flow  is expected to be received” is driven by defined term  after default, where the term is defined separately for  each product. Presumption  may  be  rebutted  e.g.  if  recovery  is  expected to be rec eived or there is still collateral that  may be sold and i ts value is not zero or negligible. 280 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  following  table shows  reconciliations from the  opening  to  the  closing  balance of  loans  and  receivables  to  customers at gross carrying amount: CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2024 148,661 17,561 2,581 61 168,864 Originations 21,919 1,210 31 - 23,160 Transfer to (out) Stage 1 8,449 (8,365) (84) - - Transfer to (out) Stage 2 (13,002) 13,599 (597) - - Transfer to (out) Stage 3 (762) (1,127) 1,889 - - Repayments and other movements (13,572) (3,895) (888) (3) (18,358) Write-offs - - (707) - (707) Balance 31 December 2024 151,693 18,983 2,225 58 172,959 Commercial Balance 1 January 2024 76,868 3,634 786 - 81,288 Originations 20,826 197 93 - 21,116 Transfer to (out) Stage 1 1,256 (1,237) (19) - - Transfer to (out) Stage 2 (2,588) 2,676 (88) - - Transfer to (out) Stage 3 (349) (287) 636 - - Repayments and other movements (9,803) (1, 403) (358) - (11,564) Write-offs - - (187) - (187) Balance 31 December 2024 86,210 3,580 863 - 90,653 Total Balance 31 December 2024 237,903 22,563 3,088 58 263,612 CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2023 158,858 13,996 2,602 72 175,528 Originations 13,359 908 30 - 14,297 Transfer to (out) Stage 1 7,274 (7,172) (102) - - Transfer to (out) Stage 2 (12,887) 13,442 (555) - - Transfer to (out) Stage 3 ( 924) (1,084) 2,008 - - Repayments and other movements (17,019) (2,529) (881) (10) (20,439) Write-offs - - (521) (1) (522) Balance 31 December 2023 148,661 17,561 2,581 61 168,864 Commercial Balance 1 January 2023 76,342 2,700 734 - 79,776 Originations 19,268 236 78 - 19,582 Transfer to (out) Stage 1 996 (975) (21) - - Transfer to (out) Stage 2 (4,165) 4,234 (69) - - Transfer to (out) Stage 3 (283) (343) 626 - - Repayments and other movements (15,290) (2,218) (434) - (17,942) Write-offs - - (128) - (128) Balance 31 December 2023 76,868 3,634 786 - 81,288 Total Balance 31 December 2023 225,529 21,195 3,367 61 250,152 281 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The  following table shows  reconciliations  from  the  ope ning to  the  closing balance  of  allowanc e s  to  loan s  and  receiv ables to customers: CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2024 468 1,247 1,199 (3) 2,911 Originations 325 109 16 - 450 Derecognition and maturities (100) (195) (197) 1 (491) Transfer to (out) Stage 1 395 (368) (27) - - Transfer to (out) Stage 2 (123) 371 (248) - - Transfer to (out) Stage 3 (14) (331) 345 - - Remeasurements, changes in models and methods (511) 346 495 (2) 328 Use of allowances (writ e offs) - - (689) - (689)   out of which debt sales - - (558) - (558) Balance 31 December 2024 440 1,179 894 (4) 2,509 Commercial Balance 1 January 2024 526 375 459 - 1,360 Originations 427 31 30 - 488 Derecognition and maturities (47) (24) (73) - (144) Transfer to (out) Stage 1 145 (132) (13) - - Transfer to (out) Stage 2 (34) 81 (47) - - Transfer to (out) Stage 3 (9) (109) 118 - - Remeasurements, changes in models and methods (572) 150 71 - (351) Use of allowances (writ e offs) - - (185) - (185)   out of which debt sales - - (149) - (149) Foreign exchange adjustments 2 - - - 2 Balance 31 December 2024 438 372 360 - 1,170 Total Balance 31 December 2024 1) 878 1,551 1,254 (4) 3,679 1)   The Bank did not recogn ise any allowances to Loans and receivabl es to banks du ring 2024 and 2023, as such exposures are  short-term only and impact  is  immaterial. 282 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m Stage 1 Stage 2 Stage 3 POCI Total Retail Balance 1 January 2023 706 1,281 1,355 - 3,342 Originations 224 89 14 - 327 Derecognition and maturities (107) (134) (292) - (533) Transfer to (out) Stage 1 589 (549) (40) - - Transfer to (out) Stage 2 (134) 397 (263) - - Transfer to (out) Stage 3 (18) (351) 369 - - Remeasurements, changes in models and methods (792) 514 565 (2) 285 Use of allowances (writ e offs) - - (509) (1) (510)   out of which debt sales - - (419) (1) (420) Balance 31 December 2023 468 1,247 1,199 (3) 2,911 Commercial Balance 1 January 2023 584 301 435 - 1,320 Originations 364 41 27 - 432 Derecognition and maturities (30) (33) (120) - (183) Transfer to (out) Stage 1 140 (126) (14) - - Transfer to (out) Stage 2 (60) 99 (39) - - Transfer to (out) Stage 3 (9) (124) 133 - - Remeasurements, changes in models and methods (468) 217 164 - (87) Use of allowances (write offs) - - (127) - (127)   out of which debt sales - - (1 03) - (103) Foreign exchange adjustments 5 - - - 5 Balance 31 December 2023 526 375 459 - 1,360 Total Balance 31 December 2023 1) 994 1,622 1,658 (3) 4,271 1)   The Bank did not recogn ise any allowances to Loans and receivabl es to banks du ring 2024 and 2023, as such exposures are  short-term only and impact  is  immaterial. There  have  been  no  material  movements  in  allowances  to  other  financial  assets  (such  as  debt  securities  at  amortised cost or operating receivables) for the years 2024 and 2023 than those dis closed above. 283 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 43.2.5 Credit Concentration Risk As part of managing credit risk, the Bank regularly monitors and actively manages the credit concentr ation risk  of the Bank through th e limits to countries, counterparties , collateral pr oviders and economic sectors. Regional  concentr ation is not relevant as most income is generated within the territory of the Czech Republic. The main collateral providers (via guarantees) are Náro dní rozvojová banka, a.s., the European Inves tment Fund  and Exportní garanční a pojišťovací společnost, a.s. (a) The exposures to top 10 groups of customers CZK m 31 Dec 2024 31 Dec 2023 Top 10 exposures 1) 15,867 13,946 1)   Exposure includes gross loans and receivables, unused commitments including credit lines, guarantees and letters of credit. Ex posures to subsidiaries of the  Bank are not incl uded. (b) The structure of the Bank’s commercial credit portfolio by economic sectors Sector 31 Dec 2024 31 Dec 2023 CZK m 1) % CZK m 1) % 1 Agriculture 20,702 26% 20,222 29% 2 Mining 15 0% 12 0% 3 Food industry 1,284 2% 1,085 2% 4 Textile industry 252 0% 191 0% 5 Wood processing industry 538 1% 461 1% 6 Chemical industry 1,017 1% 965 1% 7 Metal processing industry 3,162 4% 2,763 4% 8 Electric and opt ical equipment 122 0% 159 0% 9 Manufacturing of equipment, including transportation 1,322 2% 1,106 2% 10 Construction industry and construction modifications 5,916 7% 4,818 7% 11 Wholesale 4,801 6% 3,986 6% 12 Retail sale 3,131 4% 3,016 4% 13 Transport and telecommunication 1,585 2% 1,406 2% 14 Finance 1,443 2% 702 1% 15 Services 15,105 19% 11,933 17% 16 Public sector 298 0% 246 0% 17 Health industry 869 1% 827 1% 18 Power sec tor 3,397 4% 3,394 5% 19 Real estate activities 14,046 18% 12,513 18% Total 79,005 100% 69,805 100% 1)   The amo unts represent the relevant gross loans and receivables to customers excluding the exposures to Bank’s subsidiaries. Exposures of unallowed debits  which are fully provided by allowances are excluded. 284 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (c) Maximum credit risk exposure 31 Dec 2024 CZK m Statement of financial position Off-balance sheet Total credit risk exposure Available collateral 1) Cash and cash balances at the central bank 13,421 - 13,421 - Derivative financial instruments 596 - 596 621 Investment securities measured at FVTPL 66 - 66 -   Equity investments 25 - 25 -   Deb t investments 41 - 41 - Investment securities measured at FVTOCI 1 - 1 -   Equity investments 1 - 1 - Investment securities measured at amortised cost 113,110 - 113,110 -   Government and corporate bonds 113,110 - 113,110 - Hedging derivatives with positive fair values 2,314 - 2,314 -   Interest rate swaps 2,314 - 2,314 - Change in fair value of items hedged on portfolio basis 200 - 200 - Loans and receivables to banks 78,041 - 78,041 72,714   Current accounts at banks 385 - 385 -   Overnight deposits 937 - 937 -   Receivables arising from reverse repurchase agreements 74,203 - 74,203 72,714   Cash collaterals granted 2,513 - 2,513 -   Other 3 - 3 - Loans and receivables to customers 259,933 24,986 284,919 168,731   Consumer authorised overdrafts and credit cards 2,291 4,193 6,484 -   Consumer loans 37,549 1 37,550 -   Mortgages 130,610 2, 606 133,216 125,887   Commercial loans 89,483 18,186 107,669 42,844 Issued guarantees and credit limits on guarantees - 2,573 2,573 374 Issued letter of credit - 8 8 - Remaining assets 11,280 - 11,280 - 1)   Available collateral represents realisable value of collateral relevant for each loan exposure. The realisable value of collateral is capped up to the Total exposure  presented in the statement of financial position on a loan - by-loan ba sis for the purpose of the presentation in these breakdowns. 285 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Statement of financial position Off-balance sheet Total credit risk exposure Available collateral 1) Cash and cash balances at the central bank 10,534 - 10,534 - Derivative financial instruments 544 - 544 829 Investment securities measured at FVTPL 55 - 55 -   Equity investments 25 - 25 -   Deb t investments 30 - 30 - Investment securities measured at FVTOCI 1 - 1 -   Equity investments 1 - 1 - Investment securities measured at amortised cost 100,769 - 100,769 -   Government and corporate bonds 100,769 - 10 0,769 - Hedging derivatives with positive fair values 2,701 - 2,701 -   Interest rate swaps 2,701 - 2,701 - Change in fair value of items hedged on portfolio basis 122 - 122 - Loans and receivables to banks 69,232 - 69,232 65,030   Current accounts at banks 260 - 260 -   Overnight deposits 392 - 392 -   Receivables arising from reverse repurchase agreements 66,340 - 66,340 65,030   Cash collaterals granted 2,238 - 2,238 -   Other 2 - 2 - Loans and receivables to customers 245,881 24,102 269,983 164,117   Consumer authorised overdrafts and credit cards 2,270 4,223 6,493 -   Consumer loans 3 5,737 41 35,778 -   Mortgages 127,946 2,249 130,195 126,274   Commercial loans 79,928 17,589 97,517 37,8 43 Issued guarantees and credit limits on guarantees - 2,236 2,236 415 Issued letter of credit - 5 5 - Remaining assets 11,046 - 11,046 - 1)   Available collateral represents realisable value of collateral relevant for each loan exposure. The realisable value of collateral is capped up to the Total exposure  presented in the statement of financial position on a loan - by-loan ba sis for the purpose of the presentation in these breakdowns. 286 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (d) Quantitative information about available collateral for impaired financial assets (Stage 3 and non-performing POCI) CZK m 2024 2023 Retail Commercial Total Retail Commercial Total LTV 1)  lower than 50% 270 34 304 278 34 312 LTV 1)  51–70% 345 68 413 344 36 380 LTV 1)  more than 70% 364 245 609 413 243 656 Total 979 347 1,326 1,035 313 1,348 1)   The LTV (Loan to Value) rep resents ratio of gross carrying value of loan to fair va lue of collateral available at the reporting date. 43.2.6 Credit Portfolio and its Quality (a) Break down of allowances and provisions according to loan type and stages The following table comprises information about allowances to Loans and receivables to customers and provisions  to off-balance sheet items according to type of loan/off-balance sheet position and related stage: 31 Dec 2024 Gross carrying amount Allowance/Provision CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Net book value Retail loans 151,693 18,983 2,225 58 172,959 (440) (1,179) (894) 4 (2,509) 170,450   Consumer Loans 31,087 7,057 1,180 - 39,324 (292) (861) (622) - (1,775) 37,549   Mortgages 118,624 11,525 972 58 131,179 (86) (261) (226) 4 (569) 130,610    Credit Cards &  Overdrafts 1,980 401 68 - 2,449 (60) (57) (41) - (158) 2,291   Other 2 - 5 - 7 (2) - (5) - (7) - Commercial loans 86,210 3,580 863 - 90,653 (438) (372) (360) - (1,170) 89,483   Inves tment Loans 55,602 1,0 71 185 - 56,858 (141) (82) (58) - (281) 56,577   Working Capital 16,016 821 74 - 16,911 (80) (92) (30) - (202) 16,709    Unsecured  Instalment Loans and  Overdraft 14,591 1,688 600 - 16,879 (216) (198) (268) - (682) 16,197    O t h e r 1 - 4 - 5 (1) - (4) - (5) - Total loans 237,903 22,563 3,088 58 263,612 (878) (1,551) (1,254) 4 (3,679) 259,933    Debt instruments  measured at  amortised costs 113,131 - - - 113,131 (21) - - - (21) 113,110 Total loans and securities 351,034 22,563 3,088 58 376,743 (899) (1,551) (1,254) 4 (3,700) 373,043    Financial guarantees 2,328 252 1 - 2,581 (10) (3) - - (13) 2,568    Loan com mitments -  Retail 6,513 271 16 - 6,800 (36) (10) - - (46) 6,754    Loan com mitments -  Commerc ial 17,727 449 10 - 18,186 (38) (7) - - (45) 18,141 Total off-balance sheet items 26,568 972 27 - 27,567 (84) (20) - - (104) 27,463 Previously  written-of f  recei vables  amount  to  CZK  151  million  as  at  31  December  2024  (31  December  2023:  CZK 153 million). 287 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 Gross carrying amount Allowance/Provision CZK m Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Net book value Retail loans 148,661 17,561 2,581 61 168,864 (468) (1,247) (1,199) 3 (2,911) 165,953   Consumer Loans 29,218 7,0 94 1,470 - 37,782 (244) (878) (923) - (2,045) 35,737   Mortgages 117,460 10,059 1,024 61 128,604 (146) (300) (215) 3 (658) 127,946    Credit Cards &  Overdrafts 1,981 408 81 - 2,470 (76) (69) (55) - (200) 2,270   Other 2 - 6 - 8 (2) - (6) - (8) - Commercial loans 76,868 3,634 786 - 81,288 (526) (375) (459) - (1,360) 79,928   Inves tment Loans 49,915 1,117 156 - 51,188 (149) (68) (64) - (281) 50 ,907   Working Capital 14,669 960 86 - 15,715 (104) (48) (41) - (193) 15,522    Unsecured  Instalment Loans and  Overdraft 12,284 1,557 539 - 14,380 (273) (259) (349) - (881) 13,499   Other - - 5 - 5 - - (5) - (5) - Total loans 225,529 21,195 3,367 61 250,152 (994) (1,622) (1,658) 3 (4,271) 245,881    Debt instruments  measured at  amortised costs 100,791 - - - 100,791 (22) - - - (22) 100,769 Total loans and securities 326,320 21,195 3,367 61 350,943 (1,016) (1,622) (1,658) 3 (4,293) 346,650    Financial guarantees 1,593 647 1 - 2,241 (8) (6) - - (14) 2,227    Loan com mitments -  Retail 6,179 284 49 - 6,512 (41) (12) - - (53) 6,459    Loan com mitments -  Commerc ial 17,242 339 8 - 17,589 (40) (8) - - (48) 17,541 Total off-balance sheet items 25,014 1,270 58 - 26,342 (89) (26) - - (115) 26,227 288 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (b) Loans and receivables to banks and customers according to the categorisation according to internal rating grade and stages The  following  table  s ets  out  information  abo ut  credit  quality  o f  financial  assets  measured  at  amortised  cost  classified according to the internal credit rating grade and stages: CZK m 31 Dec 2024 31 Dec 2023 Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Loans and receivables to customers at amortised costs CR 1 214,519 11,616 - 32 226,167 207,532 9,965 - 30 217,527 CR 2 12,926 3,444 - 12 16,382 10,222 3,196 - 6 13,424 CR 3 9,903 2,859 - 1 12,763 7,148 3,287 - 4 10,43 9 CR 4 372 2,721 - 3 3,096 402 2,615 - 5 3,022 CR 5 180 1,923 - 1 2,104 223 2,132 - 1 2,356 Not graded 3 - - - 3 2 - - - 2 NPL - - 3,088 9 3,097 - - 3,367 15 3,382 Gross carrying amount 237,903 22,563 3,088 58 263,612 225,529 21,195 3,367 61 250,152 Allowance (878) (1,551) (1,254) 4 (3,679) (994) (1,62 2) (1,658) 3 (4,271) Net book value 237,025 21,012 1,834 62 259,933 224,535 19,573 1,709 64 245,881 Loans and receivables to banks at amortised cost without rating 1) Gross carrying amount 78,041 - - - 78,041 69,232 - - - 69,232 Allowance - - - - - - - - - - Net book value 78,041 - - - 78,041 69,232 - - - 69,232 Debt investment securities at amortised cost CR 1 113,131 - - - 113,131 100,791 - - - 100,791 Gross carrying amount 113,131 - - - 113,131 100,791 - - - 100,791 Allowance (21) - - - (21) (22) - - - (22) Net book value 113,110 - - - 113,110 100,769 - - - 100,769 Other receivables from operating activities without rating 1) Gross carrying amount 104 35 12 - 151 124 4 17 - 145 Allowance - - (12) - (12) - - (17) - (17) Net book value 104 35 - - 139 124 4 - - 128 289 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 CZK m 31 Dec 2024 31 Dec 2023 Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Loan commitments CR 1 22,301 317 - - 22,618 21,910 292 - - 22,202 CR 2 1,10 7 96 - - 1,203 973 88 - - 1,061 CR 3 826 222 - - 1,048 532 98 - - 630 CR 4 6 77 - - 83 2 137 - - 139 CR 5 - 8 - - 8 4 8 - - 12 Not graded - - - - - - - - - - NPL - - 26 - 26 - - 57 - 57 Gross carrying amount 24,240 720 26 - 24,986 23,421 623 57 - 24,101 Provision (74 ) (17) - - (91) (81) (20) - - (101) Net book value 24,166 703 26 - 24,895 23,340 603 57 - 24,000 Financial guarantee contracts CR 1 2,322 228 - - 2,550 1,592 628 - - 2,220 CR 2 5 11 - - 16 1 11 - - 12 CR 3 1 7 - - 8 - 4 - - 4 CR 4 - 6 - - 6 - 4 - - 4 CR 5 - - - - - - - - - - NPL - - 1 - 1 - - 1 - 1 Gross carrying amount 2,328 252 1 - 2,581 1,593 647 1 - 2,241 Provision (10) (3) - - (13) (8) (6) - - (14) Net book value 2,318 249 1 - 2,568 1,585 641 1 - 2,227 1)   Loans and receivables to banks and other receivables from operating activities are  not subject to internal grading system. Other receivables from operating  activities do not include receivables from subsidiaries that are immaterial. 43.2.7 Modified Financial assets The  following  table  provides  information  about  finan cial  asse ts  with  a  loss  allowance  at  an  amount  equal to full lifetime expected credit losses that were  modified during the ac counting period: CZK m 2024 2023 Financial assets modified during the period Amortised cost bef ore modifi cation 589 337 Net modification gain/loss (3) (1) Financial assets modified since initial recognition Gro ss carrying amou nt at 31 Dec  of financial assets for which loss  allowance has changed to 12-month  measurement during the period 135 60 The  modification  in  the  form  o f  the  fo rbearance  is  reflected  in  the  categorisation  of  receivables  in  accor dance  with  the  exposures  cate gorisation  rules  (see no te 43.2.2). Forborne Receivables Forborne receivables are receivables for which the Bank  provided the  debtor  with  relief  as  it  asse ssed  that  it  would likely incur a loss if it did not do so. Fo r economic  or legal reasons associated with the debtor’s financial  position, the Bank granted it relief that the Bank would  not otherwise  have  granted.  Reliefs primarily  include  reworking  the  repayment  p lan,  a  decrease  in  the  interest  rate,  a  waiver  of  default  interest,  a  deferral  of principal or accrued interest repaym e nts. Forborne  receiv ables  do  not  inc lude  receivables  arising  f rom  the  roll -over  of  a  short-term  loan  for  current  assets  if the debtor met all of its payment and non-payment  obligations arising from the loan contract. The  Bank  applies  the  following  general  principles  for  forbearan ce: •  the  customer  lost  th e  ability  to  repay  the  loan  accor ding to the original loan contract; •  the cu stomer demonstrates a willingness and ability  to pay his/her debts; •  spe cific product/cus tomer criteria must be met. 290 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Forbear ance  measures  provided  to  clients  take  a  form  of  modification  of  the  e xisting  contract  or  origination  of a  new  loan contract, where  the customer´s  original  credit is, by  entering into  this new contract, repaid  and  closed.  In  this  case,  a  n ew  (restructured)  loan  with  different  monthly  instalments,  interest  rate  and  maturity  is then  opened. According to  the  rules for  categorisation  of  exposures,  the  new or  modified loan is  treated  as   non -performing at least 12 months after restructuring. Forborne clas sification is assigned also during the 24 month probation period, which applies from the moment  when the client was upgraded to the performing status. (a) All gross loans and receivables to customers with forbearance 31 Dec 2024 CZK m Mortgage loans Consumer loans Commercial loans Total Forborne receivables 697 683 196 1,576 Total 697 683 196 1,576 31 Dec 2023 CZK m Mortgage loans Consumer loans Commercial loans Total Forborne receivables 1,024 1,142 264 2,430 Total 1,024 1,142 264 2,430 (b) Impaired loans out of all gross loans and receivables to customers with forbearance 31 Dec 2024 CZK m Mortgage loans Consumer loans Commercial loans Total Forborne receivables 348 419 144 911 Total 348 419 144 911 31 Dec 2023 CZK m Mortgage loans Consumer loans Commercial loans Total Forborne receivables 459 540 117 1,116 Total 459 540 117 1,116 (c) Loans and receivables to customers forborne within the reporting year 2024 Mortgage loans Consumer loans Commercial loans Total Number of incrementally forborne  receivables within the reporting year 94 1,427 333 1,854 Balance of the incrementally forborn e  gro ss receivables with in the reporting  year measured at the end of the  reporting year  (CZK m) 215 293 99 607 2023 Mortgage loans Consumer loans Commercial loans Total Number of incrementally forborne  receivables within the reporting year 149 1,620 246 2,015 Balance of the incrementally forborn e  gro ss receivables with in the reporting  year measured at the end of the  reporting year  (CZK m) 288 333 65 686 291 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 43.3 INTEREST RATE RISK Interest  rate  risk  is  the  risk  of  a  loss  arising  from  changes  in  interest  rates  on  financial  markets.  The  Bank  is  e xposed  to  interest  rate  risk  as  interest-bearing  assets  and  liabilities  have  different  maturity periods or i nterest rate repricing periods. The  Bank  s trives  to  minimise  its interest rate  risk  by  setting limits and keeping positio n s within these limits.  The interest rate risk management activ ities are aimed  at reducin g the risk of losses. Only certain client products (FX swap, FX forward, FX spot) of the Bank are included in the Tra di ng book; all  other positi ons are included in the Banki ng book. The  Bank’s  interest  rate  ri sk  for  the  Trading  and  Banking book is managed separately. The interest rate  risk of the Tra di ng book is managed by the requirement  to clos e each FX swap and FX forward transaction on  a  back-to-back  basis.  To  monitor  and  measure  the  interest rate risk of the Banking book, a model of interest  rate  sensitivity  is  used  which  serves  to  determine  the  sensitivity  of  the  Bank  to  changes  in  the  market  interest rates. The mode l is based on the inclusion of  interest-sensitive  assets  and  liabilities  into  relevant  time  bands.  T he  Bank  prefers  to  use  behavioural  features of cash flows rather than those that are purely  contractual. All behavioural assumptions are approved  by  the  ALCO.  The  model  works  with  1-month  time  bands up to 240 months. The Bank carries out stress testing of the Banking book  positions in all cur rencies that account for more than 5%  of the Group’s assets or liabilities (both on an individual  and  consolidated  basis)  based  on  stress  scenarios  for  management  of  interes t  rate  risk  arising  from  non -trading activities in line with the relevant European  Banking  Authority  Guideline  EBA/GL/2018/02.  As  at  31  December  2024,  only  the  portfolios  denominated  in the Czech Koruna and Euro exceeded a 5% share of  the Group’s assets/liabilities. Th e set of limits is used to  manage and monitor the impacts of all stres s scenarios  stipulated in the Guideline. The results of stress testing  are presented to ALCO on a monthly basis. To manage the  discrepancy  between  the  interest  sensitivity  of  assets and liabilities,  interest rate derivatives are used  in line with the interest rate hedgi ng strategy for hedge  accounting approved by ALCO. The  tables below  sh ow  the sensitivity  of  the Bank  to  changes in interest rates. CZK % change in annual net interest income 1) 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.89% 1.84% Impact of an interest rate  movement -200 basis points 0.14% (1.20)% 1)   The regulatory  calculation of  net interest income  was changed  in  2024,  where the cal culated impact on net interest income is measured against  Tier 1 capital i nstead of  actual  net interest  income.  For the purpose  of  co mparability, the previous period has been a djusted.  CZK Change in economic value of equity as a % of capital 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.50% 0.94% Impact of an interest rate  movement -200 basis points 0.55% 1.39% EUR % change in annual net interest income 1) 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.21% (0.17)% Impact of an interest rate  movement -200 basis points (0.21)% 0.17% 1)   The regulatory  calculation of  net interest income  was changed  in  2024,  where the cal culated impact on net interest income is measured against  Tier 1 capital i nstead of  actual  net interest  income.  For the purpose  of  co mparability, the previous period has been a djusted.  EUR Change in economic value of equity as a % of capital 31 Dec 2024 31 Dec 2023 Impact of an interest rate  movement +200 basis points 0.63% (0.43)% Impact of an interest rate  movement -200 basis points (0.67)% 0.49% The percentage change in annual net interest income shows the impact of interest  rate movement s  o n  net  interest  income  on  a  12-month  horizon.  T he  change  in the economic value of equity shows the impact of  interest  rate  m ovements  on  the  difference  between  the  present  value  of  assets  and  liabilities  (i.e.  the  economic value  of  equity), so  this metric works  with  a long-term horizon. Given the mentioned dif fe rences  between the two metrics, the two kinds of impact can  have different signs and follow different trends. 292 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 The b e low table summarises the Bank’s exposure to interest rate risk. Balances are allocated to the buckets based  on  the following parameters:  for assets, the  next repricing date  or princip al  payment  dates,  whichever occurs  earlier; for non-maturity deposits, the expected maturit y/repricing behaviour; and for term deposits, the maturity  date. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 13,421 - - - - - 13,421 Derivative financial  instruments with posi tive  fair values 73 9 17 106 391 - 596 Hedging deriva tives with  positive fair values - 6 67 855 1,386 - 2,314 Change in fair value of  ite ms hedged on portfolio  basis 1 (1) 59 129 12 - 200 Investment securities - 357 3,937 34,426 74,390 67 113,177 Lo ans and receivables to  banks 75,525 - - - - 2,516 78,041 Lo ans and receivables to  customers 29,545 14,314 52,301 152,351 11,422 - 259,933 Remaining assets 155 - 710 12 3 10,400 11,280 Total assets 118,720 14,685 57,091 187,879 87,604 12,983 478,962 Due to banks 1,077 - - 2,566 - 405 4,048 Due to customers 144,842 46,974 56,776 115,298 39, 569 215 403,674 Derivative financial  instruments with negative  fair values 43 8 15 85 381 - 532 Hedging deriva tives with  negative fair values 51 92 274 2,195 1,647 - 4,259 Change in fair value of  ite ms hedged on portfolio  basis - - - 78 - - 78 Issued bonds - 1,703 2,868 15,925 500 - 20,996 Subordinated liabilities 2,683 2,024 - 2,91 5 - - 7,622 Remaining liabilities 2,703 16 255 964 107 725 4,770 Total liabilities 151,399 50,817 60,188 140,026 42,204 1,345 445,979 Net balance sheet interest rate exposure (32,679) (36,132) (3,097) 47,853 45,400 11,638 32,983 Off-balance sheet assets 14 ,516 2,843 2 ,707 4,717 204 - 24,987 Off-balance sheet liabilities - - - - - - - Inte rest rate swaps assets 1) 23,573 104,154 7,238 12,885 4,160 - 152,010 Inte rest rate swaps  liabilities 1) 4,673 11,605 15,285 71,827 48,620 - 152,010 Net off-balance sheet interest rate exposure 33,416 95,392 (5,340) (54,225) (44,256) - 24,987 Total net interest rate exposure 737 59,260 (8,437) (6,372) 1,144 11,638 57,970 1)  In case of interest rate swap s, the notional amounts are used instea d of acc ounting balances. 293 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 10,534 - - - - - 10,534 Derivative financial  instruments with posi tive  fair values 2 4 33 125 380 - 544 Hedging deriva tives with  positive fair values 8 14 144 9 95 1,540 - 2,701 Change in fair value of  ite ms hedged on portfolio  basis (2) (13) (66) 191 12 - 122 Investment securities - 249 1,417 30,201 68,902 56 100,825 Lo ans and receivables to  banks 66,992 - - - - 2,240 69,232 Lo ans and receivables to  customers 29,952 12,029 45,221 145,541 13,138 - 245,88 1 Remaining assets 126 - 579 4 3 10,334 11,046 Total assets 107,612 12,283 47,328 177,057 83,975 12,630 440,885 Due to banks 2,357 - 2,531 - - 56 3 5,451 Due to customers 146,764 17,765 65,771 99,738 41,266 270 371,574 Derivative financial  instruments with negative  fair values 14 3 31 106 369 - 523 Hedging deriva tives with  negative fair values 3 2 128 2,214 2,201 - 4,548 Change in fair value of  ite ms hedged on portfolio  basis (2) (7) (31) 103 - - 63 Issued bonds - 697 2,631 10,466 500 - 14,294 Subordinated liabilities 92 - 18 7,494 - - 7,604 Remaining liabilities 1,951 13 216 920 301 703 4,104 Total liabilities 151,179 18,473 71,295 121,041 44,637 1,536 408,161 Net balance sheet interest rate exposure (43,567) (6,190) (23,967) 56,016 39,338 11,094 32,724 Off-balance sheet assets 14,065 2,801 2,223 4,021 240 - 23,350 Off-balance sheet liabilities - - - - - - - Inte rest rate swaps assets 1) 15,67 0 85,827 11,020 12,819 2,900 - 128,236 Inte rest rate swaps  liabilities 1) 6,868 9,696 11,880 55,281 44,511 - 128,236 Net off-balance sheet interest rate exposure 22,867 78,932 1,363 (38,441) (41,371) - 23,350 Total net interest rate exposure (20,700) 72,742 (22,604) 17,575 (2,033) 11,094 56,074 1)  In case of interest rate swap s, the notional amounts are used instea d of acc ounting balances. The data for the individual time bucket s except the “Unspecified” column follow the interest rate gap from the  model of interest rate sensitivity. 294 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 43.4 FOREIGN EXCHANGE RISK Foreign exchange risk covers the risk of a loss due to  changes  in  exchange  rates.  The  Bank  is  exposed  to  foreign  exchange  risk  primarily  due  to  the  provision  of  foreign  exchange  loan  products  to  commercial  borrowers, issuan ce of bonds denominated in foreign  currencies and foreign exchange deposits. The  Bank  strives  to  minimise  the  foreign  exchange  risk. For this purpose, the Bank maintains a balance of  assets and  liabilities in foreign  currenc ies (by using  a  mix of FX spots, forwards and swaps transactions). To  measure  the  foreign  exchange  risk,  the  Bank  calculates,  on  a  daily  basis,  net  currency  positions  and an FX  Value at Risk (maximum expected  loss p e r  business day for the foreign c urrency portfolio at the  99%  confidenc e level). The Bank uses the limits for the  following metr ics: •  ratio  of  the  absolute  value  of  the  net  currency  position to capital for each foreign currency; •  ratio of the absolu te value of the total net currency  position to capital; •  absolute value o f the net currency position for each  foreign curr e ncy; and •  FX VaR . On  top  of  that,  the  foreign  exchange  risk  of  Tradi ng  book is managed by limits (intraday and end-of-day) for  open FX spot position and by requirement to close each  FX swap and FX forward transaction on a back-to-back  basis. The t able below shows the FX VaR of the Bank. CZK ths 31 Dec 2024 Average of daily values in 2024 31 Dec 2023 Average of daily values in 2023 FX VaR 2,524 2,668 4,177 2,909 The foll owing table shows exposure o f the Bank to foreign exchange risk: 31 Dec 2024 CZK m CZK EUR USD Other currencies Total CZK Cash and cash balances at the central bank 13,137 16 7 78 39 13,421 Derivative fi nancia l instruments with positiv e fair values 145 451 - - 596 Investment securities 108,112 5,025 40 - 113,177 Hedging deriva tives with positive fa ir values 2,229 85 - - 2,314 Change in fair value of items he dged on portfolio basis 200 - - - 200 Lo ans and receivables to banks 74,206 3,514 229 92 78,041 Lo ans and receivables to customers 245,091 14,822 20 - 259,9 33 Remaining assets 11,265 15 - - 11,280 Total assets 454,385 24,079 367 131 478,962 Due to banks 229 3,808 11 - 4,048 Due to customers 383,313 18,805 1,452 104 403,674 Derivative fi nancia l instruments with negative fair  values 99 433 - - 532 Change in fair value of items he dged on portfolio basis  from liabilities 78 - - - 78 Hedging deriva tives with negative fair values 1,925 2,334 - - 4,259 Issued bonds 1 0,932 10,064 - - 20,996 Subordinated liabilities 7,622 - - - 7,622 Remaining liabilities 3,356 1,389 22 3 4,770 Equity 32,983 - - - 32,983 Total liabilities and Equity 440,537 36,833 1,485 107 478,962 Net exchange rate balance sheet position 13,848 (12,754) (1,118) 24 - Rec eivables from spot and derivatives 1,914 14,610 1,309 13 17,846 Liabilit ies from spot and derivatives 15,899 1,825 75 20 17,819 Net exchange rate off-balance sheet position (13,985) 12,785 1,234 (7) 27 Net exchange rate position (137) 31 116 17 27 295 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m CZK EUR USD Other currencies Total CZK Cash and cash balances at the central bank 10,270 162 65 37 10,534 Derivative fi nancia l instruments with positiv e fair values 113 431 - - 544 Investment securities 96,787 4,008 30 - 100,825 Hedging deriva tives with positive fa ir values 2,652 49 - - 2,701 Change in fair value of items he dged on portfolio basis 122 - - - 122 Lo ans and receivables to banks 66,341 2,546 325 20 69,232 Lo ans and receivables to customers 229,893 15,943 45 - 245,881 Remaining assets 11,04 3 3 - - 11,046 Total assets 417,221 23,142 465 57 440,885 Due to banks 48 5,394 9 - 5,451 Due to customers 360,351 9, 843 1,265 115 371,574 Derivative fi nancia l instruments with negative fair  values 103 420 - - 523 Change in fair value of items he dged on portfolio basis  from liabilities 63 - - - 63 Hedging deriva tives with negative fair values 2,100 2,448 - - 4,548 Issued bonds 11,976 2,318 - - 14,294 Subordinated liabilities 7,604 - - - 7,604 Remaining liabilities 3,165 914 20 5 4,104 Equity 32,724 - - - 32,724 Total liabilities and Equity 418,134 21,337 1,294 120 440,885 Net exchange rate balance sheet position (913) 1,805 (829) (63) - Rec eivables from spot and derivatives 2,193 1,232 1,064 71 4,560 Liabilit ies from spot and derivatives 1,412 3,076 77 - 4,565 Net exchange rate off-balance sheet position 781 (1,844) 987 71 (5) Net exchange rate position (132) (39) 158 8 (5) 43.5 LIQUIDITY RISK Liquidity  risk  represents  the  risk  of  inability  to  meet  finan cial liabilities when due or to finance increase in  assets. For liquidity and liquidity risk management, the banks  in the Group (the Bank and the Building Savings Bank)  created  a  liquidity  sub-group.  The  Czech  National  Bank provid ed to the banks in the liquidi ty sub-group  an  exempti on from  certain liquidity  requirements  on  individual  levels,  and  so  in  2024  the  Czech  National  Bank supervised the Bank and Building Savings Bank as  the only liquidity sub-group for liquidity purposes. The Bank has access to diversified sources of financing,  which include deposits, issued bonds , loans taken, as  well as the Bank’s equity. The bond and money markets  are used to further diversify sources of liquidity and to deposit excess cash (see chapter 5). To manage liquidity risk, the Bank applies a system of  limits ap plied on the following metrics: •  Liquidity  positions  i n  selected  time  buckets  (on  a daily basis); •  Lo an to Deposit Ratio (on a monthly basis); •  Liquidity Coverage Ratio (on a monthly basis); •  Net Stable Funding Ratio (on a monthly basis); •  Liquidity buffer (based on liquidity stress tests); •  Time to  wall  for  selected  scenarios  (idiosyncratic,  systemic and combined) (on a monthly basis); •  Concentration in dep osits (on a monthly basis); •  Interbank  Borrowing  to  Total  Assets  Ratio  (on  a monthly basis). The Bank also monitors a chosen set of Early Warning  Indicators. For  the  purpose  of  liquidity  management  under  extraordinary  circumstan ces,  the  Bank  has  a contingency plan containing measures for recovering  liquidity.  The  Treasury  &  ALM  department  regularly  reviews  the  contingency  plan  and  forwards  it  to  the  ALCO for approval. 296 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (a) The table below summarises the remaining maturity of carrying amounts of assets, liabilities and equity according to their contractual maturity. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 13,421 - - - - - 13,421 Derivative financial  instruments with posi tive  fair values 73 9 17 106 391 - 596 Investment securities - 357 3,937 34,426 74,390 67 113,177 Hedging deriva tives with  positive fair values - 6 67 855 1,386 - 2,314 Change in fair value of  ite ms hedged on portfolio  basis 1 (1) 59 129 12 - 200 Lo ans and receivables to  banks 75,525 - - - - 2,516 78,041 Lo ans and receivables to  customers 1) 10,140 4,091 23,431 78,310 139,951 4,010 259,933 Investments in subs idiaries  and associates - - - - - 4,468 4,468 Current tax assets - - 59 - - - 59 Remaining assets 155 - 651 12 3 5,932 6,753 Total Assets 99,315 4,462 28,221 113,838 216,133 16,993 478,962 Due to banks 1,077 - - 2,566 - 405 4,048 Due to customers 362,834 33,369 7,224 24 8 215 403,674 Derivative financial  instruments with negative  fair values 43 8 15 85 381 - 532 Hedging deriva tives with  negative fair values 51 92 274 2,195 1,647 - 4,259 Provisions - - - - - 262 262 Change in fair value of  ite ms hedged on portfolio  basis - - - 78 - - 78 Deferred tax liabilities - - - - - 334 334 Issued bonds - 1,703 1,395 9,893 8,005 - 20,996 Subordinated liabilities 92 30 - 4,909 2,591 - 7,622 Other liabilities 2,703 16 255 964 107 129 4,174 Equity - - - - - 32,983 32,983 Total liabilities and equity 366,800 35,218 9,163 20,714 12,739 34,328 478,962 Net liquidity position of assets and liabilities and equity 2) (267,485) (30,756) 19,058 93,124 203,394 (17,335) - Issued guarantees and credit limits on guarantees 3) 1,463 - - - - - 1,463 Loan commitments 4) 4,974 - - - - - 4,974 1)   Loans  and  receivables  to  customers  presented  under  the  “Unspecified”  category  as  at  31  December  2024  of  CZK  4,010  million  (31  Decem ber  2023:  CZK 3,506 million) represent mainly the loans  and re ceiv ables that ar e overdue more than 1 month, allowances and deferred cost and fees that are an integral  part of the effective interest rate and fair value adjustment taken over as part of the Merger. 2)   Net liquidity posi tion of assets and liabilities and equity within 1 month as at 31 December 2024 of CZK (267,485) million (31 December 2 023: CZK (239,967) million)  is primarily due to the fact that contractual maturity of current account s falls within 1 month. 3)   Contents irrevocable Issued guarantees and credit limits on guarantees. 4)   The loan co mmitments represent irrevocable loan commitments only relating to commercial investm ent loans and mortgages. Total undrawn commitments on  cr edit cards are not included in the table above a s, historically, average limit usage is significantly below 100% and this behaviour is expected to continue. 297 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 10,534 - - - - - 10,534 Derivative financial  instruments with posi tive  fair values 2 4 33 125 380 - 544 Investment securities - 249 1,417 30,201 68,902 56 100,825 Hedging deriva tives with  positive fair values 8 14 144 9 95 1,540 - 2,701 Change in fair value of  ite ms hedged on portfolio  basis (2) (13) (66) 191 12 - 122 Lo ans and receivables to  banks 66,992 - - - - 2,240 69,232 Lo ans and receivables to  customers 1) 10,228 4 ,071 2 2 ,928 75,203 129,945 3,506 245,881 Investments in subs idiaries  and associates - - - - - 4,466 4,466 Current tax assets - - 57 - - - 57 Remaining assets 126 - 522 4 3 5,868 6,523 Total Assets 87,888 4,325 25,035 106,719 200,782 16,136 440,885 Due to banks 2,357 - 2,531 - - 56 3 5,451 Due to customers 323,440 10,569 37,211 84 - 270 371,574 Derivative financial  instruments with negative  fair values 14 3 31 106 369 - 523 Hedging deriva tives with  negative fair values 3 2 128 2,214 2,201 - 4,548 Provisions - - - - - 266 266 Change in fair value of  ite ms hedged on portfolio  basis (2) (7) (31) 103 - - 63 Deferred tax liabilities - - - - - 327 327 Issued bonds - 697 2,631 10,466 500 - 14,294 Subordinated liabilities 92 - 18 2,913 4,581 - 7,604 Other liabilities 1,951 13 216 920 301 110 3,511 Equity - - - - - 32,724 32,724 Total liabilities and equity 327,855 11,277 42,735 16,806 7,952 34,260 440,885 Net liquidity position of assets and liabilities and equity 2) (239,967) (6,952) (17,700) 89,913 192,830 (18,124) - Issued guarantees and credit limits on guarantees 3) 1,119 - - - - - 1,119 Loan commitments 4) 3,538 - - - - - 3,538 1)   Loans  and  receivables  to  customers  presented  under  the  “Unspecified”  category  as  at  31  December  2024  of  CZK  4,010  million  (31  Decem ber  2023:  CZK 3,506 million) represent mainly the loans  and re ceiv ables that ar e overdue more than 1 month, allowances and deferred cost and fees that are an integral  part of the effective interest rate and fair value adjustment taken over as part of the Merger. 2)   Net liquidity posi tion of assets and liabilities and equity within 1 month as at 31 December 2024 of CZK (267,485) million (31 December 2 023: CZK (239,967) million)  is primarily due to the fact that contractual maturity of current account s falls within 1 month. 3)   Contents irrevocable Issued guarantees and credit limits on guarantees. 4)   The loan co mmitments represent irrevocable loan commitments only relating to commercial investm ent loans and mortgages. Total undrawn commitments on  cr edit cards are not included in the table above a s, historically, average limit usage is significantly below 100% and this behaviour is expected to continue. 298 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (b) The table below shows the remaining contractual maturity of non-derivative financial liabilities and issued financial guarantees and loan commitments held for the Bank’s liquidity management purposes. The amounts include contractual non-discounted cash flows. 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Due to banks 1,077 42 42 2,666 - 405 4,232 Due to customers 362,834 33,563 7,337 24 8 215 403,981 Issued bonds - 1,740 1,768 12,083 8,410 - 24,001 Subordinated liabilities 99 57 57 6,492 2,700 - 9,405 Other liabilities 2,703 16 255 964 107 129 4,174 Total non-derivative financial liabilities 366,713 35,418 9,459 22,229 11,225 749 445,793 Issued guarantees and credit limits on guarantees 1,463 - - - - - 1,463 Loan commitments 1) 4,974 - - - - - 4,974 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Unspecified Total Due to banks 2,357 - 2,596 - - 563 5,516 Due to customers 323,439 10,668 38,195 85 - 270 372, 657 Issued bonds - 728 2 ,785 11,508 532 - 15, 553 Subordinated liabilities 99 - 66 4,50 8 4,865 - 9,538 Other liabilities 1,951 13 216 920 301 110 3,511 Total non-derivative financial liabilities 327,846 11,409 43,858 17,021 5,698 943 406,775 Issued guarantees and credit limits on guarantees 1,119 - - - - - 1,119 Loan commitments 1) 3,538 - - - - - 3,538 1)   The loan commitments represent irrevocable loan commitments only relating to commercial investment loans and mortgages. (c) The table below shows the remaining contractual maturity of liabilities from financial derivatives: 31 Dec 2024 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Total Held for trading derivatives Currency swaps 1 - - - - 1 Inte rest rate swaps - - - 62 381 443 Currency forwards 5 8 15 23 - 51 Cross currency interest rate swaps 37 - - - - 37 Hedging derivatives Inte rest rate swaps 51 92 214 2,143 1,647 4,147 Cross currenc y interest rate swaps - - 60 52 - 112 Total financial derivatives 94 100 289 2,280 2,028 4,791 31 Dec 2023 CZK m Within 1 month 1 – 3 months 3 – 12 months 1 – 5 years More than 5 years Total Held for trading derivatives Currency swaps 13 - - - - 13 Inte rest rate swaps - - - 53 369 422 Currency forwards 1 3 31 26 - 61 Cross currency interest rate swaps - - - 27 - 27 Hedging derivatives Inte rest rate swaps 3 2 128 2,1 56 2,201 4,490 Cross currenc y interest rate swaps - - - 58 - 58 Total financial derivatives 17 5 159 2,320 2,570 5,071 299 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 (d) The table below shows the remaining expected maturity of assets and liabilities as follows: 31 Dec 2024 CZK m Within 1 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 13,421 - - - - - 13,421 Derivative financial  instruments with posi tive  fair values 73 9 17 106 391 - 596 Investment securities 109,721 2) 8 28 2,683 670 67 113,177 Hedging derivatives  with positive fai r values - 6 67 855 1,386 - 2,314 Change in fair value of items  hedged on portfolio basis 1 (1) 59 129 12 - 200 Lo ans and receivables to  banks 75,525 - - - - 2,516 78,041 Loans and receivables  to cu stomers 10,807 10,651 45,138 116,503 74,770 2,064 25 9,933 Investments in subs idiaries  and associates - - - - - 4,468 4,468 Current tax assets - - 59 - - - 59 Remaining assets 155 - 651 12 3 5,932 6,753 Total Assets 209,703 10,673 46,019 120,288 77,232 15,047 478,962 Due to banks 1,077 - - 2,566 - 405 4,048 Due to customers 1) 66,360 50,646 75,476 165,227 45,750 215 403,674 Derivative financial  instruments with negative  fair values 43 8 15 85 381 - 532 Hedging derivatives  with negative fair values 51 92 274 2,195 1,647 - 4,259 Provisions - - - - - 262 262 Change in fair value of items  hedged on portfolio basis - - - 78 - - 78 Deferred tax liability - - - - - 334 334 Issued bonds - 1,703 1,395 9,893 8,005 - 20,996 Subordinated liabilities 92 30 - 4,909 2,591 - 7,622 Other liabilities 2,703 16 255 964 107 129 4,174 Equity - - - - - 32,983 32,983 Total liabilities and equity 70,326 52,495 77,415 185,917 58,481 34,328 478,962 Net liquidity position 139,377 (41,822) (31,396) (65,629) 18,751 (19,281) - 1)   Balances are allocated to the buckets based o n  the expected maturity of non-maturity deposits and contractual maturity date of term deposits. Expected  maturity of non-maturity deposits is a function of deposits’ volatili ty and the average life of the non-volatile part. 2)  Balance reported within 1 month repr esents Government bonds which may be used as a collateral in repo transactions. 300 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 31 Dec 2023 CZK m Within 1 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Unspecified Total Cash and cash balances at  the central bank 10,534 - - - - - 10,534 Derivative financial  instruments with posi tive  fair values 2 4 33 125 380 - 544 Investment securities 97,542 2) - 23 3,004 200 56 100,825 Hedging derivatives  with positive fai r values 8 14 144 9 95 1,540 - 2,701 Change in fair value of items  hedged on portfolio basis (2) (13) (66) 191 12 - 122 Lo ans and receivables to  banks 66,992 - - - - 2,240 69,232 Loans and receivables  to cu stomers 10,275 9, 973 43,765 112,040 67, 396 2,432 245,881 Investments in subs idiaries  and associates - - - - - 4,466 4,466 Current tax assets - - 57 - - - 57 Remaining assets 126 - 522 4 3 5,868 6,523 Total Assets 185,477 9,978 44,478 116,359 69,531 15,062 440,885 Due to banks 2,357 - 2,531 - - 56 3 5,451 Due to customers 1) 51,359 19,879 76,030 163,367 60,669 270 371,574 Derivative financial  instruments with negative  fair values 14 3 31 106 369 - 523 Hedging derivatives  with negative fair values 3 2 128 2,214 2,201 - 4,548 Provisions - - - - - 266 266 Change in fair value of items  hedged on portfolio basis (2) (7) (31) 103 - - 63 Deferred tax liability - - - - - 327 327 Issued bonds - 697 2,631 10,466 500 - 14,294 Subordinated liabilities 92 - 18 2,913 4,581 - 7,604 Other liabilities 1,951 13 216 920 301 110 3,511 Equity - - - - - 32,724 32,724 Total liabilities and equity 55,774 20,587 81,554 180,089 68,621 34,260 440,885 Net liquidity position 129,703 (10,609) (37,076) (63,730) 910 (19,198) - 1)   Balances are allocated to the buckets based o n  the expected maturity of non-maturity deposits and contractual maturity date of term deposits. Expected  maturity of non-maturity deposits is a function of deposits’ volatili ty and average life of the non-volatile part. 2)  Balance reported within 1 month repr esents Government bonds which may be used as a collateral in repo transactions. 43.6 OPERATIONAL RISK Operational risk represents the risk of a loss resulting  from inadequate or failed internal processes, people or  systems, or from external events, including the risk of loss due to a breach of or failure to comply with a legal  or  re g ul atory  requirement  or  a  threat  to  the  Bank’s  reputation. It also includes l egal and outsourcing risk. The  Bank  implemented  standardised  tools  and  processes for operational risk management, includin g  Risk  &  Control  Self-Assessment  (RCSA),  Loss  Data  Collection  of  actual  internal  operational  risk  losses,  monitoring of external operational risk events, Key Risk  Indicators,  scenar io  analyses  and  Issue  management  that  is  used  to record, monitor  and  report identified  risks  and  issues.  The  Issue  management  system  is  also  used fo r  monitoring  the relevant  action plans,  if  applicable, and  is  closely  linked to  the RCSA process.  The  Bank  continually  develops  and  improves  these  tools and pr ocesses. The  Bank’s  Management  Board  specifically  approves  the  operational  risk  governance  str ucture  and  framework, and the Bank’s objectives for operational  risk  management  and  decides  about  acceptance  of  major risk s if there are no feasible remedial measures. The  Operational  Risk  Co mmittee  (ORCO)  oversees  the Bank’s op e rational risk  management  process  and  approves  methods,  limits  and  Key  Risk  Indicators,  monitors  adherence  to  approved  limits  and  Key  Risk  Indicators  and  approves  principal  changes  in  the  insurance programme. More details about operational risk and its management  are  comprised  in  section  5.5  of  the  Annual  financial  report. 301 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 43.6.1 Legal Risk Dealing  with  l egal  risk  and  managing  it  means  minimising  uncertainty  associated  with  enforcement  and  interpretation  of  applicable  law,  contracts  and  regulations.  In  addi tion  to  stan dard  legal  functions  in  the  various  areas  such  as  contract,  banking  and  corp orate  law,  the  main  tasks  of  the  Bank’s  lawyers  during  2024 con si sted of  keeping both  the  re tail and  commerc ial  contractual  documentation  aligned  with  both  the  business  strategy  and  various  needs  of  the  business  departments  of  the  Bank,  as  well  as  new  regulations.  The  Bank  continuously  monitors  legal  disputes  and  provision  is  created  for  the  es timated  amount of payment if it is more probable than not that the cash outflow will have to be made. 44. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The  following  table  shows  the  c arrying  value  and  fair  values  of  financial  assets  and  liabili ties  that  are  not  presented  at  fair  value  in  the  Bank’s  indivi du al  statement of financial  position.  The f air value includes  also anticipated future losses. The Bank uses the following inputs and techniques to  estimate the fair value for asset and liability c ategories: •  Cash and cash balances at the central bank The carrying value of cash and cash balances at the  central bank approximates their fair value. •  Loans and receivables to banks The  carrying  value  o f  receivables  to  banks  approximates  their  fair  valu e s  due  to  the  short  maturity of those receiv ables. •  Loans and receivables to customers The fair value of loans is estimated on the basis of  discounted  future  expected  cash  flows  using  the  interest rate common for loans with similar credit  risk and interest risk conditions profile and maturity  dates  (discounted  rate  technique  according  to  IFRS  13). For  impaired  loans  the  present  value  of  future expected cash flows including the expected  proceeds from a collateral foreclosure, if any. •  Due to banks The  carrying  value  of  Due  to  banks  in  principle  approximates  their  fair  value  due  to  the  short  maturity of these deposits. •  Due to customers The  fair  value  of  d e posits  repay able  on  demand  at  re quest  and  term  deposits  bearing  a  variable  interest  rate  are  equal  to  their  carryi ng  value  as  at  the  balance  sheet  date.  The  fair  value of  term  deposits with a fixed interest rate is estimated on the basis of discounted cash flows using the market  interest rates . •  Investment securities at amortised cost The  difference  between  fair  value  and  carrying  value  of  investment  securities  measured  at  amortised cos t is mainly driven by different market  and  effective interes t  rates  of  government  bonds  included i n this portfolio. •  Subordinated liabilities, Mortgage-backed bonds and Other issued bonds The difference between fair value and carr ying value  of  subordinated  debt  sec urities,  subordinated  liabilities , mortgage-backed bonds and other issued bonds  measured  at  amortised  co st  is  determined  on  the  basis  of  discounted  cash  flows  using  th e  market interest rates. CZK m 31 Dec 2024 31 Dec 2023 Carrying value Fair value Carrying value Fair value FINANCIAL ASSETS Cash and cash balances at the central bank 13,421 13,421 10,534 10,534 Investment securities at amortised cost 1) 113,110 106,498 100,769 94,415 Lo ans and receivables to banks 78,041 78,041 69,232 69,232 Lo ans and receivables to customers 259,933 259,346 245,881 241,413 FINANCIAL LIABILITIES Due to banks 4,048 4,065 5,451 5,450 Due to customers 403,674 403,674 371,574 371,574 Mortgage-backed bonds 9,434 9,349 10,486 10,234 Other iss ued bonds 11,562 12,654 3,808 4,100 Subordinated debt securities 4,706 4,672 4,690 4,546 Subordinated deposits 2) 2,916 3,014 2,914 3,042 1)   Difference between fai r value and carrying value is mainly driven by differe nt market and effectiv e interest rates of th e Government bonds. 2)   When calculating  the discount  rate, the  Bank  assumes  that  primarily  credit and  liquid  markup  has  not  changed  significantly since  the  origination  of  the  subordinated deposits , thus the ch ange in interest rate is the main driver of the discount rate.  In case of significant changes in the other components, the  discount rate calculation will b e adjusted accordingly. 302 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 Investment securities measured at amortised cost are classified as level 1 because fair value is based on quoted  prices o n active market. Cash and cash balances at the central bank, loans and receivables to banks and due to  banks are classified as level 2 and all other fair values presented above are classified as level 3 as the data used  for the estimation of the discount rate are not based on the data from the active market. There are assumptions  applied for the estimation of the cash flows used for discounting taking into account expected repayment profile  of the particular pool  or product.  The discount rates used  for discounting are  b ased on  the rates  of  the  major  competitors or other benchmark rates for similar ty pe of assets. The  following  table summarises  the  hier archy of  fair  values  of  financial  assets  and  fi nan cial liabiliti es  that  are  carri ed at fair value in the statement of financial position: CZK m 31 Dec 2024 31 Dec 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 FINANCIAL ASSETS Derivative fi nancia l instruments with positiv e fair  values - 596 - - 544 - Debt securities measure d at FVTPL - - 41 - - 30 Equity securities measured at FVTPL - - 25 - - 25 Equity securities measured at FVTOCI - - 1 - - 1 Hedging deriva tives with positive fa ir values - 2,314 - - 2,701 - Change in fair value of items he dged on portfolio basis - - 200 - - 122 FINANCIAL LIABILITIES Derivative fi nancia l instruments with negative fair  values - 532 - - 523 - Hedging deriva tives with negative fair values - 4,259 - - 4,548 - Change in fair value of items he dged on portfolio basis - - 78 - - 63 There were no transfers between level 1 and 2 during the year 2024 nor 2023. The B ank uses the following inputs and techniques to determine fair value under level 2 and level 3: The level 2 assets include mainly financial derivatives, corporate bonds and treasury bills. For derivative exposures  the fair value is estimated using the present value of the cash flow s resulting from the transactions taking into  account market inputs like FX spot and forward rates, benchmark interest rates, swap rates, etc. The fair v alue of  corp orate bonds, treasury bills is calculated as the present value of cash flows using the benchmark interest rates. The level 3 ass ets include equity instruments not traded on the market where the fair value is calculated using the  valuation techniques including expe rt appraisals. Movement analysis of level 3 financial assets and liabilities: CZK m As at 1 Jan 2024 Purchases/ Sales in the period Total gains and losses in the period recognised in the income statement Total gains and losses in the period recognised in OCI As at 31 Dec 2024 Investment securities at FVTOCI 1 - - - 1  Investment securities at FVTPL 55 - 11  - 66  Total 56 - 11 - 67 CZK m As at 1 Jan 2023 Purchases/ Sales in the period Total gains and losses in the period recognised in the income statement Total gains and losses in the period recognised in OCI As at 31 Dec 2023 Investment securities at FVTOCI 1  - - - 1 Investment securities at FVTPL 71  (23) 7  - 55 Total 72 (23) 7 - 56 303 NOTES TO SEPARATE FINANCIAL STATEMENTS Annual Financial Report 2024 45. MANDATORY PUBLISHED INFORMATION The  Bank  quarterly  publishes  th e  mandatory  information ac cording to CNB Decree N o. 163/2014 Coll.  and  Part  8  of  Regulation of the  European Parliament  and the Counc i l (EU) No. 575/2013 of 26 Jun e 2013 on its   website in  the section  Mandatory  information  at the   following  address:  https://investors.moneta.cz/ finan cial-results. 46. SUBSEQUENT EVENTS There  have  been  no  subsequent  events  arising  after  31 December 2024 that would have a material impact  on these separate financial statements. Signature of statutory representatives In Prague, on 17 March 2025 Tomáš Spurný Chairman of the Management Boar d and CEO  MONETA Money Bank, a.s. Jan Friček Member of the Management Board and CFO  MONETA Money Bank, a.s. 307 ADDITIONAL DISCLOSURES Annual Financial Report 2024 9.   ADDITIONAL  DISCLOSURES 9.1 GOVERNING LAW The activities of the Group are subject to, in particular, the following Czech and EU laws and regulations, as amended,  including, where relevant, their implementing measures: •  EU Regulation No. 575/2013 on Prudential Requirements for Credit Institutions and Investment Firms; •  EU Regulation No. 600/2014 on Markets in Financial Instruments; •  EU Regulation No. 2017/1129 on the Prospectus to be Published when Securities are Offered to the Public or  Admitted to Trading on a Regulated Market; •  Act No. 21/1992 Coll., on Banks; •  CNB D ecree No. 163/2014 Coll., on the Performance of the Activities of Banks, Credit Unions and Investment  Firms; •  Act No. 374/2015 Coll., on Recovery and Resolution in the Financial Market;  •  Act No. 256/2004 Coll., on Capital Market Business (Capital Markets Act); •  Act No. 15/1998 Coll ., on Supervision in the Capital Markets; •  EU Regulation No. 596/2014 on Market Abuse (Market Abuse Regulation); •  CNB D ecree No. 234/2009 Coll., on Protection against Mar ket Abuse and on Transparency; •  Act No. 90/2012 Coll., on Business Corporations and Co-operatives (Business Corporations Act); •  Act No. 257/2016 Coll., on Co n sum e r Credit; •  Act No. 370/2017 Coll., the Payment Systems Act; •  Act No. 191/1950 Coll., the Bill of Exchange and Cheque Act; •  Act No. 170/2018 Coll., on Insurance and Reinsurance Distribution, whi ch with effect from 1 Decembe r 2018  repealed and rep l aced Act No. 38/2004 Coll., on Insurance Intermediaries and Independent Loss Adjusters and  on Amending the Trade Licensing Act;  •  Act No. 253/2008 Coll., on Certain Measures against the Legalization of Proc eeds from Criminal Activity and  the Financing of Terrorism; •  Act No. 563/1991 Coll., on Accounting; •  EU Regulation No. 1126/2008 on Adopting Certain International Accounting St andards in accordance with  Regulation (EC) No. 1606/20 02 of the European Parliament and o f th e Council; •  EU Regulation No. 537/2014 on Specific Requirements regardin g Statutory Audit of Public-Interes t Entities; •  Act No. 93/2009 Coll., on Auditors; •  Act No. 110/2019 Coll., on Proc e ssing of Personal Data; •  EU Regulation No. 2016/679 on Protection of Natural Persons with Regar d to the Processing of Personal Data  and on the Free Movement of such Data; •  Act No. 143/2001 Coll., on Protection of Economic C ompetition; •  Act No. 136/2011 Coll., on the Circulation of Banknotes and Coins; •  Act No. 190/2004 Coll., on Bonds; •  Act No. 240/2013 Coll., on Investment Companies and Investment Funds; •  Act No. 89/2012 Coll., the Civil Code; •  Act No. 99/1963 Coll., the Code of Civil Procedure; •  Act No. 292/2013 Coll., on Special Court Proceedings; •  Act No. 182/2006 Coll., on Insolvency and Methods for its Resolution; •  Act No. 277/2013 Coll., on Foreign Exchange Activities; •  Act No. 634/1992 Coll., on Consumer Protection; and •  EU  Regulation  No.  2020/852  (Taxonomy)  on  the  establishment  of  a  framework  to  facilitate  sustainable  investment. 308 ADDITIONAL DISCLOSURES Annual Financial Report 2024 9.2 SIGNIFICANT INVESTMENTS MONETA Investments 1  (in CZK m) 31 Dec 2024 31 Dec 2023 Tangible assets 2,260 2,400 Intangible assets 3,365 3,332 Total 5,625 5,732 Investments  in intangible assets made in  2024 in  the  amount  of  CZK  749  million  were  mainly  focu sed  on  the  development  of  internet  and  mobile  banking  applications, the redesign of MONETA’s internet pages and the IT platform. Within tangible ass ets, M ONETA  invested  further  CZK  195  million,  mainly  into  the  electric car fleet and the branch network. 9.3 TRADEMARKS, LICENCES AND SUB-LICENCES In  2024,  the  Bank  used  trademar ks  for  labelling  its  products and se rvices i n th e Czech Republic.  The Bank r egistered a total number of 44 trademarks  with  the  Czech  Intellectual  Property  Office  and  one  trademark  w ith  the  European  Union  Intellectual  Property  Office.  The  Bank  also  regi stered  six  community  designs  with  the  European  Union  Intellectual  Pro perty  Office  under  EU  Regulation  No.  6/2002 of 12 December 2001 on Community desi gn s. In  some cas es , the Bank is also a licensee and sublicensee,  typically in relation to p roviders of IT services. 9.4 EXPENSES ON RESEARCH AND DEVELOPMENT In 2024, the Group incurred total exp e n ses for research  and development in the amount of CZK 705.6 million.  These were mainly used for the further development  and  expansion  of  mobile  and  internet  banking,  digitali sation of  online mortg age servicing pro cesses,  new website design, and technologi cal development of  IT platforms.  9.5 INTELLECTUAL PROPERTY The  Group  has  procured  a  number  of  SW  and  IT  technology  licence s  which  are  needed  to  run  its  banking and financial business in the areas of primary  banking,  treasury,  IFRS  calculation,  statistics  and  analytics  for  risk,  A ML  and  CRM  mana gement,  card  payment management, accounting, etc. 1 Excluding financial investments. The Group uses, owns, or otherwise relies on the right to the MONETA name, brand and logo. 9.6 DESCRIPTION OF REAL ESTATE OWNED AND LEASED BY THE GROUP Description of property owned by the Bank is described  in  Notes  to  Consolidated  Financial  Statements  (Note  5.12 Property and Equipment). The Group leased two headquarter premises set out in  the table below as at 31 D ecember 2024: Lessee Location Function Bank BB C HQ,  Prague 4, Vyskočilova  1442/1b, 140 28 Registered office and  headquarters of the Bank,  MONETA Auto, MONETA  Leasing and the Building  Savings Bank Bank Ostrava,  CTPark Ostrava — AXIS A  and B including parking,  Na Rovince 871, 720 00 Shared Services, Contact  Centre and Collections MONETA  als o  leases  its  124  br anches  (as  at  31 Dece mber 2024) throughout the Czech Republic. MONETA is n ot aware of any signi ficant environmental  issues  or  other  constraints  that  would  materially  impact the intended use of the Group’s facilities. 9.7 MEMBERSHIPS IN INDUSTRY AND OTHER ASSOCIATIONS The Bank or othe r entities from the Group are members  of the following industry or other association s: •  Czech Banking Association (“CBA“); •  Czech  Leasing  and  Financial  Association  (“CLFA“);  and •  Czech Capital Market Association (“AKAT CR“). Entities of the Group adopted following codices: CLFA  Memorandum  on  consumer  protection  in  providing consumer loans, CBA Financial Market Ethical  Cod e and Code of Conduct of CLFA me mbers. 9.8 MATERIAL CONTRACTS In  2018,  the  Bank  entere d  into  a  lease  contr act  with  BB  C  -  Building  A ,  s .r.o.,  with  registered  office  at  Želetavská  1525/1,  Michle,  140  00  Prague  4,  ID  No.  25147072,  (whose  assets  were  transferred  to  PASSERINVEST  BBC  3,  s.r.o.,  with  registered  office  at  Želetavsk á  1525/1,  Michle,  140  00  Prague  309 ADDITIONAL DISCLOSURES Annual Financial Report 2024 4,  IČO  06629580),  for  new  HQ  premises  located  at  Vyskočilova 1442/1b, Michle, 140 28 Prague 4, initally  for  at  leas t  the  next  10  years.  The  contract  was  extended by additional two years in 2023. 9.9 PHILANTHROPIC ACTIVITIES Social responsibilit y is an important part of MONETA’s  vision.  Philanthropic  activities  and  support  for  local  communities are core areas of social responsibility and  are  covered  by  the  MONETA  Clementia  Foundation,  which is funded by th e Bank . It s activities focus on four  areas. In the first area, it helps custome rs who are in  finan cial difficulties and cannot repay th eir obligations  to  MONETA.  In  the  second,  it  helps  disadvantaged  children  from  orphanages,  socially  disadvantaged  families,  and  children  in  foster  care  to  a ccess  educati on. It also runs a grant programme to support  non -profit  organisations  working  with  disadvantaged  children,  adults,  and  the  elderly,  and  to  protect  the  environment.  It  also  helps  MONETA  employees  who  find  themselves  in  difficult  circumstances.  Detailed  information on the activities of the foundation Nadace MONETA Clementia can be found in its annual report,  available on the website https://clementia.cz/. 313 ALTERNATIVE PERFORMANCE MEASURES Annual Financial Report 2024 10.   ALTERNATIVE  PERFORMANCE  MEASURES In  this  chapter,  certain  financial  data  and  measures  are  presented  which  are  not  calculated  pursuant  to  any  accounting  standard  and  which  are  therefore   non -IFRS  measures  and  alternative  p e rformance  measures  as  defined  in  th e  European  Securities  and  Markets  Authority  Guidelines  on  Alternative  Performance Measures.  All  alternative performance  measures  included  in this  document are calculated for the specified period. These  alternative  performance  measures  are  included  to  (i)  extend  the  financial  di sclosure  also  to  metrics  which  are  use d,  along  with  IFRS  measures,  by  the  management  for  evaluati on  o f  the  Gro up’s  performance, and (ii) provide to investors further basis,  along  with  IFRS  measures,  for  measurin g  the  Group’s  performance. Because of the discretion that the Group  has  in  defining  these  measures  and  calculating  the  reported amounts, care should be taken in compari ng  these various measures with similar measures used by  other companies. These measures shoul d not be used  as a  substitute  for evaluating  the performance  of the  Group based on the Consolidated Financ ial Statement s  of  the  Group.  Non-IFRS  measures  have  limitations  as  analytical  tools,  and  investors  should  no t  consider  them in isolation,  or  as  a  substitute for an analysis  of  the Group’s results as reported under IFRS and set out  in the Consolidated Financial Statements of the Group,  and investors  should not  place any undue reliance  on  non -IFRS  measures.  Non-IFRS  measures  presented  in  this Annual Financial Rep ort should not be considered  as  measures  of  discretionary  c ash  available  to  the  Group  to  invest  in  th e  growth  of  the  business,  or  as  measures  of  cash  that  will  be  available  to  the  Group  to meet its obligations. Investors should rely primarily  on  the  Gr oup’s  IFR S  results  and  use  the  non-IFRS  measures  only  as  supplemental  means  for  evaluating  the performance of the Group. Definitions of alternative performance measures used in the Annual Financial Report: Capital Adequacy Ratio/CAR/Total Capital Ratio Regulatory capital expressed as a percent age o f risk weighted assets (RWA, calculated pursuant to  CRR)  CET 1/CET 1 Capital Common equity Tier 1 capital represents regulatory capital which consists of capital instruments  and other items provided in the Article 26 of CRR, suc h as paid-up registered share capital, share  premium, retained profits, disclosed reserves and reserves for general ba nking risks, which must  be netted off against accumulated losses, certain deferred tax assets, certain intangible assets and shares held by the Bank i n itself (calculated pursuant to CRR) CET 1 Capital Ratio/CET1 ratio CET 1 capital as a percentage of risk weighted assets (RWA, calculated pursuant to CRR) Core NPL coverage Ratio  (expressed  as  a  percentage)  of  allowances  fo r  losses  created  to  NPL  receivables  to  to tal  amount of NPL receivables.  MONETA uses the Core NPL Coverage measure because it shows the degree to which its Stage 3 loan  po rtfolio is covered by allowances f or losses created for the Stage 3 loans Cost of funds on customer deposits Interes t expense and similar charges o n customer deposits for the period divided by average balance  of customer deposits Cost of risk/CoR Net impairment of loans and receivables for the period divided by the average balance of net loans  to cu stomers. MONETA uses the Cost of Risk measure because it describes the development of the credit risk in  relative terms to its average loan portfolio balance Cost to income ratio Ratio  (expressed  as  a  pe rcentage)  of  total  operating  expenses  for  the  reported  pe riod  to  total  operating income for the reported period. MONETA uses the cost to income ratio measure because it reflects the cost e fficiency in relative  terms to generated rev enues Customer deposits Due to customers excluding repo operations and Credit Support Annex operations “CSA” Dividend yield Dividend yield is calculated as a ratio (expressed as a percentage) of the divi dend per share paid in  the financial year to the closing shar e price of the first trading day of the financial year. MONETA uses this ratio as it rep resents the annualised return on a share which MONETA pays out in  the form of dividends in relative terms to the share price Excess capital Capital exceeding the management target capital ratio. MONETA uses the excess cap ital measure because it describes MONETA’s capital in excess of capital  held to maintain its tar get cap ital adequacy ratio and represents the amount of capital which could  potentially be used for growth, both organic and inorganic, or be paid out to MONETA’s s hareholders Excess liquidity Liquidity  above  the  regulatory  requirement  for  Liquidity  Coverage  Ratio  of  at  least  100%  as  introduced by CRR effectiv e from 1 January 2018. MONE TA uses the exce ss liquidity to show high-quality liquid assets available  above the minimum  level needed to comply with the regulatory requirement 314 ALTERNATIVE PERFORMANCE MEASURES Annual Financial Report 2024 Gross performing receivables Gross  carrying  amount  of  performing  l oans  and  receivables  to  customers  as  determined  in  accordance with MONETA’s loan receivables categorisation rules (Stand ard, Watch) High quality liquid assets/HQLA According to Basel III regulation, assets that are easily and immediately converted into cash at little  or no loss of value. MONETA considers as HQLA its cash balances, balances held in the central bank  and Czech governme nt bonds Leverage Ratio calculated in accordanc e with CRR , as a mended by CRR 2, as Group’s Tier 1 capital divided by  Group’s total exposure Liquidity Coverage Ratio/LCR Liquidity Coverage Ratio  re presents  the  ratio  (expressed  as  a  p ercentage) of MONETA’s  balance  of high-quality liquid assets to its projected net liquidity outflows over a 30-day stress period, as  calculated in accordance with C RR and EU Regu lation 2015/61. MONETA uses this ratio to sh ow its liquidity position  Liquid assets Liquid assets are defined by the Group as cash and cash balances at the central bank, loans and  receivables to banks and investment securities regardless of the purpose those assets are held by  the Group Liquidity buffer Liquid assets that the Bank holds in compliance with CRR and EU Regulation 2015/61 Loan to deposit ratio Loan t o  deposit ratio  calculated as  net loans  and  r eceivables  to  customers  divided  by  customer  deposits (excluding repo operations and CSA). MONETA uses loan to deposit ratio measure to assess its liquidity level Loan to value/LTV L oan to Value (LTV) rat io rep resents the ratio of gross carrying value of loan to fair value of collateral  available at the reporting date Net interest earning assets Cash and  balances  with the  central bank,  investment sec urities, loans an d  receiv ables to banks,  loans and receivables to customers and prior to the t ransition to IFRS 9 also financial assets at fair  value through prof it and loss, financial assets availabl e for sale, financial assets held to maturity.   Includin g encumbered assets and excluding hedging derivatives Net interest margin/NIM Net interest and similar i ncome d ivided by the average balance of net intere st earning assets. MONETA uses the net interest margin measure because this metric represents the primary measure  of profitability showing margin between interest earned on interest earning as sets (e.g., loans to  customers) and pai d on interest bearing liabilities (e.g., customer deposits) in relative terms to the  average balance of int erest earning assets Net non-interest income Total operating income less Net interest i ncome for the period. MONETA uses the net non-interest income measure as it is an important metric for assessing an d  controlling the diversity of r evenue streams New production/new volume Aggregate of loan principal disbur sed in the period for non-revolving loan s. MONETA uses new volume/production metrics as it reflects performance of its distribution network  and ability of the Group to generate new loans, which is key for the loan port folio growth Non-performing loans/NPL Non-performing loans as determined in accordance with the Bank’s loan receivables categorisation  rules as Substandard, Doubtful or Lo ss (Stage 3 acc ording to IFRS 9) and gross loans from Stage POCI  per IFRS 9 categorised as non-performing NPL ratio Ratio (expressed as a percentage) of NPL t o Gross loans and receivables to customers. MONE TA uses the NPL ratio measure  because it ’s the key indicator of portfolio quality and allows  comparison to the market and peers Online sales/origination/production/ volume New  Online  volume/sale  represents  volume  from  leads  initiated  through  digital  channe ls  and  disbursed either through digital channels or branches. MONE TA uses the online sales/origination/production/volume because it reflects the production of  MONE TA’s digital/online distribution channels Opportunistic repo operations Repo transactions  with counterparties which are closed on a  back-to-back basis by  reverse r epo  transactions with the CNB. MONETA uses this measure to show them separately from other repo operations Performing receivables Performing Receivables as determined in accordance with MONETA’s loan receivables categorisation  rules (Standard, Watched) Return on Average Assets/RoAA Return on ave rage as sets calculated as profi t  for the period after t ax for the year divided by the  average balance  of  total assets. The average  balance  of total  assets  is calcu lated  as a two-point  average from total assets as at the end of the reported year and prio r year (31 December). MONETA uses the RoAA measure because it is one of the key performance indicators used to assess  MONETA’s rentability of assets Return on Average Equity/RoAE Return on aver age equity calculated as profit for the period after tax for the year divided by avera ge  Tier 1 equity. The average ba lance of Tier 1 equity is calculated as a five-point average.  MONETA uses the RoAE me asure be cause it is o ne of the key performance indicators us ed to asse ss  MONETA’s rentability of assets Return on Equity/RoE Return on equity calculated as profit for the period after tax for the period divided by total equity Return on Tangible Equity/RoTE Profit for the period after tax divided by tangible equity. MONETA uses the RoTE mea sure because it is one of the key indicators used to assess MONETA’s  rentability and performance 315 ALTERNATIVE PERFORMANCE MEASURES Annual Financial Report 2024 Risk adjusted yield (% avg. net customer loans) Interest and similar income from loans to customers less net impairment of financial assets divided  by the average balance of net loans to customers. MONETA  uses  this  metrics  to  show  interest generat ed  on  the  loan  portfolio  separately w ithout  credit risk in relative terms to its average balance Risk weighted assets/RWA Risk weighted assets (calculated pursuant to CRR) Tangible equity Calculated as total equity less intangi ble assets and goodwill Total NPL coverage Ratio  (expressed  as  a  percentage)  of  total Loss  allowances  created  for  loans  and  receivables  to  customers to the amount of NPL receivables. MONETA  uses  the  Total  NPL  Coverage  measure  because  it  shows  t he  degree  to  which  its  non-p erforming loan portfolio is covered by total allowances created fo r credit loss es Total operating income after net impairment of financial assets Calculated as total operating income less Net impairment of financial assets Total shareholder return Per B loomberg methodology calculated as a ratio  of difference between closing and opening share  price to opening share price including reinvested dividend Yield on net customer loans (% avg. net customer loans)/Loan portfolio yield Inte rest and similar income from loans to customer divided  by the average balance  of net loans to  customers. MONETA  u ses  the  yield  on the  net  customer  loans  measure  as  it  represents interest g enerated  on the loan  portfoli o  in relative terms to its average balance  and  is one of the key p erformance  ind icators of the lending activiti es 319 INFORMATION ABOUT CAPITAL AND CAPITAL REQUIREMENTS Annual Financial Report 2024 11.   INFORMATION  ABOUT CAPITAL   AND CAPITAL REQUIREMENTS Information according to Decree No. 163/2014 Coll., on the Performance of the Activities of Banks, Credit Unions and Investment Firms, as amended. Information about Capital and Capital Requirements pursuant to Article 437 (1) (a) of Regulation (EU) 575/2013, as amended. Capital Group Bank (in CZK m) 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Capital 31,648 33,583 32,838 34,180 Tier 1 (T1) Capital 25,091 26,334 26,281 26,931 Common Equity Tier 1 (CET 1) Capita l 25,091  26,334 26,281  26,931 Instrume nts eligible as CET 1 Capital 10,220  10,220 10,220  10,220   Subs cribed CET 1 instrument s 10,220  10,220 10,220  10,220 Retained earnings 16,446  17,281 17,550  17,803   Retained earnings from previous periods 15,748  16,680 16,269  17,022 Other res erve funds 102  10 2 102  102 Accumulated other comprehensive income 1  1 1  1 Items deductible from Tier 1 Capit al (1,917) (1,830) (1,821) (1,7 32) (-)  CET 1 capital a djustments due to the application of  prudential filters (8) (9) (8) (9)    (-)  Value adjustments due to the requirements for  prudent valuation (8) (9) (8) (9) (-) Other intan gible asset s (1,909) (1,822) (1,813) (1,723)   (-) Other intangible assets - carrying amount (2,411) (2,22 5) (2,287) (2,103)    Deferred tax li abilities associated to other intangible  assets 502  404 474  380 Other transitional adjustments to CET 1 capital 239  560 229  537 Tier 2 (T2) Capital 6,557 7,249 6,557 7,249 Subordinated liabilities 6,557  7,249 6,557  7,249 Figures in the table may not add up to the total due to rounding differences. Information  about  Capital  and  Capital  Requirements  pursuant  to  Article  438  (c)  to  (f)  of  Regul ation   (EU) 575/2013. A detailed overview of th e development of the regulatory capital requirement is available in Chapter 3 “Capital  and Liquidity” of this Annual Financial Report. 320 INFORMATION ABOUT CAPITAL AND CAPITAL REQUIREMENTS Annual Financial Report 2024 Capital Allocation Group Bank (in CZK m) 31 Dec 2024 8% 1 31 Dec 2024 14.05% 2 31 Dec 2023 8% 1 31 Dec 2023 15.1% 2 31 Dec 2024 8% 1 31 Dec 2024 14.05% 2 31 Dec 2023 8% 1 31 Dec 2023 15.1% 2 Total capital allocation requirement 13,877 24,371 13,384 25,262 13,451 23,623 12,780 24,123 Capital allocation requirement for  credit, counterparty credit and d ilution  risks and free deliveries 12,347 21,684 11,818 22,306 12,119 21,284 11,464 21,637 Standardised approach (SA) capital  allocation requirement 12,347 21,684 11,818 22,306 12,119 21,284 11,464 21,637 SA exposure classes excluding  securitisation positions capital  allocation requirement 12,347 21,684 11,818 22,306 12,119 21,284 11,464 21,637 Capital allocation requirement to  central governments or central banks - - - - - - - - Capital allocation requirement  to regional governments or local  authorities 3 5 2 5 2 4 2 3 Capital allocation requirement to  institutio ns 67 118 64 120 66 116 62 118 Capital allocation requirement to  corporates 2,152 3,780 2,199 4,152 2,774 4,872 2,728 5,149 Capital allocation requirement to Retail  exposures 4,990 8,763 4,587 8,6 58 3,867 6,791 3,436 6,48 5 Capital allocation requirement to  public sector entities 1 1 1 1 1 1 1 1 Capital allocation requirement to  exposure s in defa ult 182 319 168 318 150 264 140 265 Capital allocation requirement to items  associated with particular high risk 20 36 14 26 20 36 14 26 Capital allocation requirement to  equity exposures 184 323 180 340 541 951 537 1 Capital allocation requirement to  covered bonds 12 21 - - 12 21 - - Capital allocation requirement other  items 396 695 394 744 386 679 380 718 Capital allocation requirement to  exposure s secur ed by mortg ages on  immovable property 4,341 7,623 4,208 7,942 4,299 7,550 4,164 7, 859 Total capital allocation requirement to  Operational Risk (OpR) 1,475 2,591 1,523 2, 875 1,277 2,243 1,274 2, 404 OpR Standardised/Alternative  Standardised approaches capital  allocation requirement 1,475 2,591 1,523 2, 875 1,277 2,243 1,274 2, 404 Capital allocation requirement for  credit valuation adjustment risk 54 96 43 81 54 96 43 81 Capital allocation requirement  for Credit valuation adjustment  Standardised approach 54 96 43 81 54 96 43 81 Total capital allocation requirement for  positions risk, FX risk and commodity  risk - - - - - - - - Figures in the table may not add up to the total due to rounding differences.  The capital allocation requirement is calcul ate d as Risk-weighted assets for the given category (represented by the  rows) multiplied by th e  given percentage (represented by the columns). 1   Based on article 438 point c) of Capital Requirement Regulation.  2   Based on the OCR = Overall  Capital Requirement. The OCR com prises the Total SREP Ca pital Requirement (Pillar I and Pillar II Requirement) pl us the combined  bu ffer requirements (capital cons ervation buffer and countercyclical bu ffer).  321 INFORMATION ABOUT CAPITAL AND CAPITAL REQUIREMENTS Annual Financial Report 2024 Reconciliation of Accounting and Regulatory Capital Group Bank (in CZK m) 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Accounting Equity 31,879 32,203 32,983 32,724 (-) Current year profit or loss (5,808) (5,200) (6 ,391) (5,380) (+) Current year profit or loss eligible  698 601 1,281 781 (-) Intangible assets (1,909) (1,822) (1,813) (1,723) (+/-) Othe r items  231 552 221 529 Common Equity Tier 1 (CET 1) Capital 25,091 26,334 26,281 26,931 Tier 2 Capital 6,557 7,249 6,557 7,249   Subordinated liabilities 6,557 7,249 6,557 7,249 Total Regulatory Capital 31,648 33,583 32,838 34,180 Capital ratios Group Bank 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 CET 1 Capital Ratio 14.46% 15.74% 15.63% 16.86% Tier 1 Capital Ratio 14.46% 15.74% 15.63% 16.86% Total Capital Ratio 18.25% 20.07% 19.53% 21.40% Other indicators Group Bank 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Return on Average Equity (RoAE) 3  22. 4% 19.7% 23.4% 19.9% Return on Average Assets (RoAA) 4 1.2% 1.2% 1.4% 1.3% Total operating expenses per employee (CZK thousand) 5 1,703 1,659 1,708 1,670 Total assets per employe e (CZK thousand) 199,993 183,788 200,068 183,779 Net profit per employee (CZK thousand) 2,347 2,086 2,670 2,243 Number of employees 6 2,475 2,493 2,394 2,399 3   Calculated as a five-point average of Tier 1 regulatory capital.  4  Calculated as a five-point av erage of tota l assets. 5  Calculated as a sum of Personnel and Administrative expenses divided by the number of employees. 6   Average recalculated number of employees for the period (see note 11 in the Notes to the Consolidated Financial Statements and Notes to the Separate Financial  Statements). 325 FORWARD-LOOKING STATEMENTS Annual Financial Report 2024 12.   FORWARD-LOOKING  STATEMENTS 1  Source: CNB forecast publishe d in February 2025 https://www.cnb.cz/en/monetary-policy/monetary-policy-reports/Monetary-Policy-Report-Winter-2025/. This Annual Financial Report may contain projections,  estimates,  forecasts,  targets,  opinions,  prospects,  results,   returns  and forward-looking  statements with  respect to the management’s medium-term guidance, profitability,  costs,  assets,  capital  position,  financial  condition, results of operations, dividend and business of the Group (together, “forward-looking stateme nts”).  Any  forward-looking  statements  involve  material  assumptions  and  subjective  judgements  which  may  or  may  not  prove  to  be  corr ect  and  there  can  be  no  assurance  that  any  of  the  matters  set  out  in  forward-looking statements will actually occur or will be  realised or that such matters are complete or accurate.  The assumptions may prove to be incorrect and involve  known and unknown risks, uncertainties, contingencies  and other important factors, many of which are out side  any control of the Group. Actu al achievements , results,  performance or other future events or conditions may  differ  materially  from  those  stated,  implied  an d/or  reflected in any forward-looking statements due to a  variety  of  risks,  uncertainties  an d  other  factors.  Any  forward-looking s tatement contained in this r e port is  made as at the date of this report. The Bank does not  assume, and hereby disclaims, any obligation or duty  to update forward-looking st atements if circumstances  or  management’s  as sump tions,  beliefs,  expectations  or opinions should change, unless it would be required  to do so under applicable law or regulation. For these  reasons, recipients should not place any r e liance on, and  are  cautioned  about  rely i ng  on,  any  forward-looking  statements. 12.1 MACROECONOMIC OUTLOOK 1 The  macroeconomic  outlook  for  the  Czech  economy  for  the  coming  years  is  increasingly  optimistic.  The  slow  recovery  experienced  in  2024  should  turn  into  decent  economic  growth.  The  CNB‘s  February  2025  forec ast expect s the Czech economy‘s GDP  to grow by  2% in 2025 and by 2.4% in 2026. Next  to  household  consumptio n,  which  was  the  key  economic driver in 2024, the economy should in 2025  and  2026  be  supported  by  recovering  investments  into  gross  capital  and  the  activity  of  the  domestic  industrial  sector.  On the other hand, spen di ng of  the  central  governm e nt  will  be  weaker,  mainly  due  to  consolidation  of  the  state  budget  and  the  effort  to  push and to maintain the budget deficit below 3% of  GDP.  Inflation  is  expected  to  remain  within  the  tolerance  band  of  the  Czech  National  Bank,  reaching  2.4%  in  2025  and  further  dropping  to  the  levels  around  the  inflationary target of the CNB in 2026. The  labour  market  should  remain  stable  with  low  unemployment at level below or around 3% in the next  two years. Th e  low unemployment rate will  probably  be  refl ected  in  elevated  growth  of  average  nominal  wages, at least in 2025. The base scenario for the Czech economy of a return to  stable  eco nomic  growth  is  not  entirely  without  risk.  The  main  risk  lies  in  geopolitical  developme nts,  which  evolves  very  quickly.  The  war  in  Ukraine  and  other  geopolitical  tensions  might  escalate  and  the  political situation in the United States might result in  global trade wars, negati vely impacting European and  domes tic  foreign  trade.  The  Czech  economy  could  face  a  new  w ave  of  difficulties  that  could  end  up  in  a prolonged period of eco nomic stagnation or, in the  worse case, in another economic recession 326 FORWARD-LOOKING STATEMENTS Annual Financial Report 2024 12.2 MATERIAL ASSUMPTIONS FOR MEDIUM-TERM GUIDANCE FOR 2025–2029 A number of economic, market, operational and regulatory assumptions were made by MONETA in preparing the  medium- term guidance (see bel ow). MONETA’s medium-term guidance, which was published on 31 January 2025, relies on the internal macroeconomic  outlook and projectio n s derived from the CNB forecast published in Novemb e r 2024 2 . The forecast  expecte d GDP  to return to moderate growth of around 2.4% annually in 2025. The inflation (Consumer Price Index) was expected to gr adually return to the CNB’s inflation target around 2% by 2026. The unemployment rate (ILO) was assumed  to remain at or below the level of 3% in the 5-year period. The two-week repo rate w as expected to gradually  decrease to 3% in 2026.  Metrics 2025 2026 2027 2028 2029 GDP 2 2.4% 2.4% 2.4% 2.5% 2.5% Unemployment rate 2 2.9% 3.0% 2.9% 2.8% 2.7% Inflation proje ction (CPI) 2 2.6% 2.2% 2.0% 2.0% 2.0% Two-week r epo rate 3   3.3% 3.0% 3.0% 3.0% 3.0% 1M PRIB OR 3 3.3% 3.1% 3.1% 3.1% 3.1% CZK/EUR 2 25.4 25.5 25.4 25.4 25.4 Based on the medium-term macroeconomic outlook presented above, MONETA assumes that the gross performing loan balance will grow at an annual rate of 5.2% while the customer deposit base is expected to grow at a CAGR of  2.7% over the next five years. GROSS PERFORMING LOANS AND CUSTOMER DEPOSITS DEVELOPMENT ASSUMPTIONS 4 (in CZK bn) 2024 2025F 2026F 2027F 2028F 2029F 2024-2029 CAGR Gross performing loans Retail 183.1 188.6 193.0 201.4 213.8 226.7 4.4% Commerc ial 92.8 99.8 105.7 113.4 121.0 128.0 6.6% Total 275.9 288.3 298.6 314.8 334.8 354.7 5.2% Customer deposits Retail 324.0 331.2 340.5 351.0 365.4 380.4 3.3% Commerc ial 105.8 103.8 105.4 107.0 108.6 110.3 0.8% Total 429.8 435.0 445.9 458.0 474.1 490.8 2.7% Figures in the table may not add up to the total due to rounding differences. 2   Source:  2025–2026  CNB  forecast  publi shed  in  November  2024  (ht tp s://www.cnb.cz/en/monetary-policy/forecast/cnb-forecas t-archive/CNB-forecast- Autumn-2024/), 2027–2029 internal assum ptions. 3  Source: Internal assumptions. 4  F – represents MONETA forecast f or respective year. 329 SUSTAINABILITY STATEMENT Annual Financial Report 2024 13. SUSTAINABILITY STATEMENT INDEPENDENT AUDITOR’S REPORT ĞůŽŝƚƚĞƌĞĨĞƌƐƚŽŽŶĞŽƌŵŽƌĞŽĨĞůŽŝƚƚĞdŽƵĐŚĞdŽŚŵĂƚƐƵ>ŝŵŝƚĞĚ;dd>ͿŝƚƐŐůŽďĂůŶĞƚǁŽƌŬŽĨŵĞŵďĞƌĨŝƌŵƐĂŶĚƚŚĞŝƌƌĞůĂƚĞĚentities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally se ƉĂƌĂƚĞĂŶĚŝŶĚĞƉĞŶĚĞŶƚĞŶƚŝƚŝĞƐǁŚŝĐŚ ĐĂŶŶŽƚŽďůŝŐĂƚĞŽƌďŝŶĚĞĂĐŚŽƚŚĞƌŝŶƌĞƐƉĞĐƚŽĨƚŚŝƌĚ ƉĂƌƚŝĞƐdd>ĂŶĚĞĂĐŚdd>ŵĞŵďĞƌĨŝƌŵĂŶĚƌĞůĂƚĞĚĞŶƚŝƚLJŝƐůŝĂďůĞŽŶůLJĨŽƌŝƚƐŽǁŶĂĐƚƐĂŶĚŽŵŝƐƐŝŽŶƐĂŶĚŶŽƚ ƚŚŽƐĞŽĨĞĂĐŚŽƚŚĞƌdd>ĚŽĞƐŶŽƚƉƌŽǀŝĚĞƐĞƌǀŝĐĞƐƚŽĐůŝĞŶƚƐWůĞĂƐĞƐĞĞǁǁǁĚĞůŽŝƚƚĞĐŽŵĂďŽƵƚƚŽůĞĂƌŶŵŽƌĞ /EWEEd>/D/d^^hZEZWKZd  dŽƚŚĞ^ŚĂƌĞŚŽůĚĞƌƐŽĨ DKEdDŽŶĞLJĂŶŬĂƐ Having its registered office at: Vyskočilova 1442/1b, Michle, 140 00 Prague 4  tĞ ŚĂǀĞ ĐŽŶĚƵĐƚĞĚ Ă ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŽŶ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ^ƚĂƚĞŵĞŶƚ ŽĨDKEdDŽŶĞLJ ĂŶŬ ĂƐ and its subsidiaries (hereafter the “Group”) included in section Consolidated ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŽĨƚŚĞŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚŝŶĐůƵĚŝŶŐƚŚĞŝŶĨŽƌŵĂƚŝŽŶŝŶĐŽƌƉŽƌĂƚĞĚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚďLJƌĞĨĞƌĞŶĐĞĂƐĚŝƐĐůŽƐĞĚŝŶƐĞĐƚŝŽŶϱϮ/ŶĐŽƌƉŽƌĂƚŝŽŶďLJZĞĨĞƌĞŶĐĞ(the “Consolidated Sustainability Statement”) as at 31 December 2024 and for the year then ended.   /ĚĞŶƚŝĨŝĐĂƚŝŽŶŽĨƉƉůŝĐĂďůĞƌŝƚĞƌŝĂ  dŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚ ǁĂƐƉƌĞƉĂƌĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽĨƚŚĞŽŵƉĂŶLJŝŶŽƌĚĞƌƚŽ ƐĂƚŝƐĨLJ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƌƚŝĐůĞ ϯϮŬ ŽĨ ƚŚĞ njĞĐŚ ĐĐŽƵŶƚŝŶŐ Đƚ ŝŵƉůĞŵĞŶƚŝŶŐ Ϯϵ;ĂͿ ŽĨ ƚŚĞ h ŝƌĞĐƚŝǀĞ ϮϬϭϯϯϰhŝŶĐůƵĚŝŶŐ  • ŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ƵƌŽƉĞĂŶ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ZĞƉŽƌƚŝŶŐ ^ƚĂŶĚĂƌĚƐ ŝŶƚƌŽĚƵĐĞĚ ďLJ ŽŵŵŝƐƐŝŽŶ ĞůĞŐĂƚĞĚ ZĞŐƵůĂƚŝŽŶ ;hͿ ŽĨ ϯϭ :ƵůLJ ϮϬϮϯ ƐƵƉƉůĞŵĞŶƚŝŶŐ ŝƌĞĐƚŝǀĞ ϮϬϭϯϯϰh ŽĨ ƚŚĞ ƵƌŽƉĞĂŶ WĂƌůŝĂŵĞŶƚ ĂŶĚ ŽĨƚŚĞCouncil (“ESRS”), including that the process carried out by the Group to identify the information reported in the Consolidated Sustainability Statement (the “Process”) is in accordance with the description set ŽƵƚŝŶŶŽƚĞϭϴŽƵďůĞDĂƚĞƌŝĂůŝƚLJƐƐĞƐƐŵĞŶƚĂŶĚ • ŽŵƉůŝĂŶĐĞ ŽĨ ƚŚĞ ĚŝƐĐůŽƐƵƌĞƐ ŝŶ ƐĞĐƚŝŽŶ Ϯϭϭ ŝƐĐůŽƐƵƌĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ƚŚĞ h dĂdžŽŶŽŵLJ ŽĨ ƚŚĞ Consolidated Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).   /ŶŚĞƌĞŶƚ>ŝŵŝƚĂƚŝŽŶƐŝŶWƌĞƉĂƌŝŶŐƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚ  The criteria, nature of the Consolidated Sustainability Statement, and absence of long-standing established authoritative guidance, standard applications and reporting practices allow for different, but acceptable, measurement methodologies to be adopted which may result in variances between entities. The adopted measurement methodologies may also impact the comparability of sustainability matters reported by different organizations and from year to year within an organization as methodologies evolve.  In reporting forward looking information in accordance with ESRS, management of the Group is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcome is likely to be different since anticipated events frequently do not occur as expected.  In determining the disclosures in the Consolidated Sustainability Statement, management of the Group interprets undefined legal and other terms. Undefined legal and other terms may be interpreted differently, including thelegal conformity of their interpretation and, accordingly, are subject to uncertainties.  ĞůŽŝƚƚĞƵĚŝƚƐƌŽ ŚƵƌĐŚŝůů/  /ƚĂůƐŬĄϮϱϴϭϲϳ  ϭϮϬϬϬWƌĂŐƵĞϮ –sŝŶŽŚƌĂĚLJ njĞĐŚZĞƉƵďůŝĐ   dĞůнϰϮϬϮϰϲϬϰϮϱϬϬ  ĞůŽŝƚƚĞΛĚĞůŽŝƚƚĞĐŽŵ  ǁǁǁĚĞůŽŝƚƚĞĐnj   ZĞŐŝƐƚĞƌĞĚďLJƚŚĞDƵŶŝĐŝƉĂů ŽƵƌƚŝŶWƌĂŐƵĞ^ĞĐƚŝŽŶ &ŝůĞ Ϯϰϯϰϵ / EŽϰϵϲϮϬϱϵϮ dĂdž/EŽϰϵϲϮϬϱϵϮ       Responsibility of the Company’s Board of Directors ĂŶĚ ^ƵƉĞƌǀŝƐŽƌLJŽĂƌĚ ĨŽƌ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ^ƚĂƚĞŵĞŶƚ  dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĚĞƐŝŐŶŝŶŐ ĂŶĚ ŝŵƉůĞŵĞŶƚŝŶŐ Ă ƉƌŽĐĞƐƐ ƚŽ ŝĚĞŶƚŝĨLJ ƚŚĞ ŝŶĨŽƌŵĂƚŝŽŶ ƌĞƉŽƌƚĞĚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^Z^ĂŶĚĨŽƌĚŝƐĐůŽƐŝŶŐƚŚŝƐƉƌŽĐĞƐƐ ŝŶ ŶŽƚĞ ϭϴ ŽƵďůĞ DĂƚĞƌŝĂůŝƚLJ ƐƐĞƐƐŵĞŶƚ ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ^ƚĂƚĞŵĞŶƚ dŚŝƐ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŝŶĐůƵĚĞƐ  • understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders; • the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the entity’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; • the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and • making assumptions that are reasonable in the circumstances.  dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐĨƵƌƚŚĞƌƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƌƚŝĐůĞ ϯϮŬ ŽĨ ƚŚĞ njĞĐŚ ĐĐŽƵŶƚŝŶŐĐƚ ŝŵƉůĞŵĞŶƚŝŶŐϮϵ;ĂͿ ŽĨ ƚŚĞ h ŝƌĞĐƚŝǀĞ ϮϬϭϯϯϰh ŝŶĐůƵĚŝŶŐ  • compliance with the ESRS; • preparing the disclosures in 2.1.1 Disclosure requirements for the EU Taxonomy of the Consolidated Sustainability Statement, in compliance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”);  • designing, implementing and maintaining such internal controls that management determines are necessary to enable the preparation of the Consolidated Sustainability Statement that is free from material misstatement, whether due to fraud or error; and • the selection and application of appropriate sustainability reporting methods and making assumptions and estimates about individual sustainability disclosures that are reasonable in the circumstances.  dŚĞ^ƵƉĞƌǀŝƐŽƌLJŽĂƌĚŝƐresponsible for overseeing the Group’s sustainability reporting process  KƵƌZĞƐƉŽŶƐŝďŝůŝƚLJ  tĞ ĐŽŶĚƵĐƚĞĚ ŽƵƌ ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /ŶƚĞƌŶĂƚŝŽŶĂů ^ƚĂŶĚĂƌĚ ŽŶ ƐƐƵƌĂŶĐĞ ŶŐĂŐĞŵĞŶƚƐ;/^ͿϯϬϬϬ;ZĞǀŝƐĞĚͿƐƐƵƌĂŶĐĞŶŐĂŐĞŵĞŶƚƐŽƚŚĞƌƚŚĂŶƵĚŝƚƐŽƌZĞǀŝĞǁƐŽĨ,ŝƐƚŽƌŝĐĂů&ŝŶĂŶĐŝĂů /ŶĨŽƌŵĂƚŝŽŶ  dŚĞƉƌŽĐĞĚƵƌĞƐƉĞƌĨŽƌŵĞĚ ŝŶ ĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚǀĂƌLJ ŝŶŶĂƚƵƌĞĂŶĚƚŝŵŝŶŐ ĨƌŽŵĂŶĚĂƌĞůĞƐƐŝŶ ĞdžƚĞŶƚƚŚĂŶĨŽƌĂƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŽŶƐĞƋƵĞŶƚůLJƚŚĞůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞŽďƚĂŝŶĞĚŝŶĂůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŝƐƐƵďƐƚĂŶƚŝĂůůLJůŽǁĞƌƚŚĂŶƚŚĞĂƐƐƵƌĂŶĐĞƚŚĂƚǁŽƵůĚŚĂǀĞďĞĞŶŽďƚĂŝŶĞĚŚĂĚĂƌĞĂƐŽŶĂďůĞ ĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚďĞĞŶƉĞƌĨŽƌŵĞĚ  KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽƉůĂŶĂŶĚƉĞƌĨŽƌŵƚŚĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚƚŽŽďƚĂŝŶůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌ ƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚ ƚŽŝƐƐƵĞĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞƌĞƉŽƌƚƚŚĂƚŝŶĐůƵĚĞƐŽƵƌĐŽŶĐůƵƐŝŽŶDŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚ ĂƌĞ ĐŽŶƐŝĚĞƌĞĚ ŵĂƚĞƌŝĂů ŝĨ ŝŶĚŝǀŝĚƵĂůůLJ Žƌ ŝŶ ƚŚĞ ĂŐŐƌĞŐĂƚĞ ƚŚĞLJ ĐŽƵůĚ ƌĞĂƐŽŶĂďůLJ ďĞ ĞdžƉĞĐƚĞĚ ƚŽ ŝŶĨůƵĞŶĐĞ ĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚĂƐĂǁŚŽůĞ  Ɛ ƉĂƌƚ ŽĨ Ă ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /^ ϯϬϬϬ ;ZĞǀŝƐĞĚͿ ǁĞ ĞdžĞƌĐŝƐĞ ƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐŵĞŶƚĂŶĚŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐŬĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĞŶŐĂŐĞŵĞŶƚ      Responsibility of the Company’s Board of Directors ĂŶĚ ^ƵƉĞƌǀŝƐŽƌLJ ŽĂƌĚ ĨŽƌ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ^ƚĂƚĞŵĞŶƚ  dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĚĞƐŝŐŶŝŶŐ ĂŶĚ ŝŵƉůĞŵĞŶƚŝŶŐ Ă ƉƌŽĐĞƐƐ ƚŽ ŝĚĞŶƚŝĨLJ ƚŚĞ ŝŶĨŽƌŵĂƚŝŽŶ ƌĞƉŽƌƚĞĚŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^Z^ĂŶĚĨŽƌĚŝƐĐůŽƐŝŶŐƚŚŝƐƉƌŽĐĞƐƐ ŝŶ ŶŽƚĞ ϭϴ ŽƵďůĞ DĂƚĞƌŝĂůŝƚLJ ƐƐĞƐƐŵĞŶƚ ŽĨ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ ^ƚĂƚĞŵĞŶƚ dŚŝƐ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŝŶĐůƵĚĞƐ  • understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders; • the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the entity’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; • the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and • making assumptions that are reasonable in the circumstances.  dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐĨƵƌƚŚĞƌƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƌƚŝĐůĞ ϯϮŬ ŽĨ ƚŚĞ njĞĐŚ ĐĐŽƵŶƚŝŶŐĐƚ ŝŵƉůĞŵĞŶƚŝŶŐϮϵ;ĂͿ ŽĨ ƚŚĞ h ŝƌĞĐƚŝǀĞ ϮϬϭϯϯϰh ŝŶĐůƵĚŝŶŐ  • compliance with the ESRS; • preparing the disclosures in 2.1.1 Disclosure requirements for the EU Taxonomy of the Consolidated Sustainability Statement, in compliance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”);  • designing, implementing and maintaining such internal controls that management determines are necessary to enable the preparation of the Consolidated Sustainability Statement that is free from material misstatement, whether due to fraud or error; and • the selection and application of appropriate sustainability reporting methods and making assumptions and estimates about individual sustainability disclosures that are reasonable in the circumstances.  dŚĞ^ƵƉĞƌǀŝƐŽƌLJŽĂƌĚŝƐresponsible for overseeing the Group’s sustainability reporting process  KƵƌZĞƐƉŽŶƐŝďŝůŝƚLJ  tĞ ĐŽŶĚƵĐƚĞĚ ŽƵƌ ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /ŶƚĞƌŶĂƚŝŽŶĂů ^ƚĂŶĚĂƌĚ ŽŶ ƐƐƵƌĂŶĐĞ ŶŐĂŐĞŵĞŶƚƐ;/^ͿϯϬϬϬ;ZĞǀŝƐĞĚͿƐƐƵƌĂŶĐĞŶŐĂŐĞŵĞŶƚƐŽƚŚĞƌƚŚĂŶƵĚŝƚƐŽƌZĞǀŝĞǁƐŽĨ,ŝƐƚŽƌŝĐĂů&ŝŶĂŶĐŝĂů /ŶĨŽƌŵĂƚŝŽŶ  dŚĞƉƌŽĐĞĚƵƌĞƐƉĞƌĨŽƌŵĞĚ ŝŶ ĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚǀĂƌLJ ŝŶŶĂƚƵƌĞĂŶĚƚŝŵŝŶŐ ĨƌŽŵĂŶĚĂƌĞůĞƐƐŝŶ ĞdžƚĞŶƚƚŚĂŶĨŽƌĂƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŽŶƐĞƋƵĞŶƚůLJƚŚĞůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞŽďƚĂŝŶĞĚŝŶĂůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚŝƐƐƵďƐƚĂŶƚŝĂůůLJůŽǁĞƌƚŚĂŶƚŚĞĂƐƐƵƌĂŶĐĞƚŚĂƚǁŽƵůĚŚĂǀĞďĞĞŶŽďƚĂŝŶĞĚŚĂĚĂƌĞĂƐŽŶĂďůĞ ĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚďĞĞŶƉĞƌĨŽƌŵĞĚ  KƵƌŽďũĞĐƚŝǀĞƐĂƌĞƚŽƉůĂŶĂŶĚƉĞƌĨŽƌŵƚŚĞĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚƚŽŽďƚĂŝŶůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĂďŽƵƚǁŚĞƚŚĞƌ ƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝƐĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚ ƚŽŝƐƐƵĞĂůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞƌĞƉŽƌƚƚŚĂƚŝŶĐůƵĚĞƐŽƵƌĐŽŶĐůƵƐŝŽŶDŝƐƐƚĂƚĞŵĞŶƚƐĐĂŶĂƌŝƐĞĨƌŽŵĨƌĂƵĚŽƌĞƌƌŽƌĂŶĚ ĂƌĞ ĐŽŶƐŝĚĞƌĞĚ ŵĂƚĞƌŝĂů ŝĨ ŝŶĚŝǀŝĚƵĂůůLJ Žƌ ŝŶ ƚŚĞ ĂŐŐƌĞŐĂƚĞ ƚŚĞLJ ĐŽƵůĚ ƌĞĂƐŽŶĂďůLJ ďĞ ĞdžƉĞĐƚĞĚ ƚŽ ŝŶĨůƵĞŶĐĞ ĚĞĐŝƐŝŽŶƐŽĨƵƐĞƌƐƚĂŬĞŶŽŶƚŚĞďĂƐŝƐŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚĂƐĂǁŚŽůĞ  Ɛ ƉĂƌƚ ŽĨ Ă ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /^ ϯϬϬϬ ;ZĞǀŝƐĞĚͿ ǁĞ ĞdžĞƌĐŝƐĞ ƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐŵĞŶƚĂŶĚŵĂŝŶƚĂŝŶƉƌŽĨĞƐƐŝŽŶĂůƐŬĞƉƚŝĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĞŶŐĂŐĞŵĞŶƚ    KƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶƌĞƐƉĞĐƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶƌĞůĂƚŝŽŶƚŽƚŚĞWƌŽĐĞƐƐŝŶĐůƵĚĞ  • Obtaining an understanding of the Process but not for the purpose of providing a conclusion on theeffectiveness of the Process, including the outcome of the Process; • Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process, as disclosed in note 1.8 Double Materiality Assessment.  KƵƌŽƚŚĞƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶƌĞƐƉĞĐƚŽĨƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝŶĐůƵĚĞ  • Obtaining an understanding of the entity’s control environment, processes and information systems relevant to the preparation of the Consolidated Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; • Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error; • Designing and performing procedures responsive to disclosures in the Consolidated Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  KƵƌ/ŶĚĞƉĞŶĚĞŶĐĞĂŶĚYƵĂůŝƚLJDĂŶĂŐĞŵĞŶƚ  tĞ ĐŽŵƉůŝĞĚ ǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ŝŶĚĞƉĞŶĚĞŶĐĞ ĂŶĚ ŽƚŚĞƌ ĞƚŚŝĐĂů ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƚŚĞ Đƚ ŽŶ ƵĚŝƚŽƌƐ ĂŶĚ ƚŚĞŽĚĞŽĨƚŚŝĐƐĂĚŽƉƚĞĚďLJƚŚĞChamber of Auditors of the Czech Republic (the “Code”). The Code is founded ŽŶ ĨƵŶĚĂŵĞŶƚĂů ƉƌŝŶĐŝƉůĞƐ ŽĨ ŝŶƚĞŐƌŝƚLJ ŽďũĞĐƚŝǀŝƚLJ ƉƌŽĨĞƐƐŝŽŶĂů ĐŽŵƉĞƚĞŶĐĞ ĂŶĚ ĚƵĞ ĐĂƌĞ ĐŽŶĨŝĚĞŶƚŝĂůŝƚLJ ĂŶĚ ƉƌŽĨĞƐƐŝŽŶĂůďĞŚĂǀŝŽƵƌ  tĞĂƉƉůŝĞĚ/ŶƚĞƌŶĂƚŝŽŶĂů^ƚĂŶĚĂƌĚŽŶYƵĂůŝƚLJDĂŶĂŐĞŵĞŶƚ;/^YDͿϭYƵĂůŝƚLJDĂŶĂŐĞŵĞŶƚĨŽƌ&ŝƌŵƐƚŚĂƚWĞƌĨŽƌŵ ƵĚŝƚƐŽƌZĞǀŝĞǁƐŽĨ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐŽƌKƚŚĞƌƐƐƵƌĂŶĐĞŽƌZĞůĂƚĞĚ^ĞƌǀŝĐĞƐŶŐĂŐĞŵĞŶƚƐĂŶĚĂĐĐŽƌĚŝŶŐůLJ ŵĂŝŶƚĂŝŶ Ă ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƐLJƐƚĞŵ ŽĨ ƋƵĂůŝƚLJ ĐŽŶƚƌŽů ŝŶĐůƵĚŝŶŐ ĚŽĐƵŵĞŶƚĞĚ ƉŽůŝĐŝĞƐ ĂŶĚ ƉƌŽĐĞĚƵƌĞƐ ƌĞŐĂƌĚŝŶŐ ĐŽŵƉůŝĂŶĐĞǁŝƚŚĞƚŚŝĐĂůƌĞƋƵŝƌĞŵĞŶƚƐƉƌŽĨĞƐƐŝŽŶĂůƐƚĂŶĚĂƌĚƐĂŶĚĂƉƉůŝĐĂďůĞůĞŐĂůĂŶĚƌĞŐƵůĂƚŽƌLJƌĞƋƵŝƌĞŵĞŶƚƐ  ^ƵŵŵĂƌLJŽĨtŽƌŬWĞƌĨŽƌŵĞĚ   ůŝŵŝƚĞĚ ĂƐƐƵƌĂŶĐĞ ĞŶŐĂŐĞŵĞŶƚ ŝŶǀŽůǀĞƐ ƉĞƌĨŽƌŵŝŶŐ ƉƌŽĐĞĚƵƌĞƐ ƚŽ ŽďƚĂŝŶ ĞǀŝĚĞŶĐĞ ĂďŽƵƚ ƚŚĞ ŽŶƐŽůŝĚĂƚĞĚ ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚ  dŚĞ ŶĂƚƵƌĞ ƚŝŵŝŶŐ ĂŶĚ ĞdžƚĞŶƚ ŽĨ ƉƌŽĐĞĚƵƌĞƐ ƐĞůĞĐƚĞĚ ĚĞƉĞŶĚ ŽŶ ƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐĞŵĞŶƚ ŝŶĐůƵĚŝŶŐ ƚŚĞŝĚĞŶƚŝĨŝĐĂƚŝŽŶŽĨĚŝƐĐůŽƐƵƌĞƐǁŚĞƌĞŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚƐĂƌĞůŝŬĞůLJƚŽĂƌŝƐĞǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ ŝŶƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚ  /ŶĐŽŶĚƵĐƚŝŶŐŽƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞWƌŽĐĞƐƐǁĞ  • Obtained an understanding of the Process by:  o performing inquiries to understand the sources of the informationused by management; and o reviewing the Group’s internal documentation of its Process; • Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in note 1.8 Double Materiality Assessment.   /ŶĐŽŶĚƵĐƚŝŶŐŽƵƌůŝŵŝƚĞĚĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚǁĞ  • Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Consolidated Sustainability Statement by performing inquiries to understand the Group’s control environment, processes and information systems relevant to the preparation of the consolidated sustainability statements; • Evaluated whether material informationidentified by the Process to identify the information reported in theConsolidated Sustainability Statement is included in the Consolidated Sustainability Statement; • Evaluated whether the structure and the presentation of the Consolidated Sustainability Statement is in accordance with the ESRS; • Performed inquires of relevant personnel on selected disclosures in the Consolidated Sustainability Statement; • Performed substantive assurance procedures based on a sample basis on selected disclosures in theConsolidated Sustainability Statement; • Obtained evidence on the methods for developing material estimates and forward-looking information and on how these methods were applied; • Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Consolidated Sustainability Statement;  tĞďĞůŝĞǀĞƚŚĂƚƚŚĞĞǀŝĚĞŶĐĞǁĞŚĂǀĞŽďƚĂŝŶĞĚŝƐƐƵĨĨŝĐŝĞŶƚĂŶĚĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌĐŽŶĐůƵƐŝŽŶ  >ŝŵŝƚĞĚƐƐƵƌĂŶĐĞŽŶĐůƵƐŝŽŶ  ĂƐĞĚ ŽŶ ƚŚĞ ƉƌŽĐĞĚƵƌĞƐ ǁĞ ŚĂǀĞ ƉĞƌĨŽƌŵĞĚ ĂŶĚ ƚŚĞ ĞǀŝĚĞŶĐĞ ǁĞ ŚĂǀĞ ŽďƚĂŝŶĞĚ ŶŽƚŚŝŶŐ ŚĂƐ ĐŽŵĞ ƚŽ ŽƵƌ ĂƚƚĞŶƚŝŽŶƚŚĂƚĐĂƵƐĞƐƵƐƚŽďĞůŝĞǀĞƚŚĂƚƚŚĞŽŶƐŽůŝĚĂƚĞĚ^ƵƐƚĂŝŶĂďŝůŝƚLJ^ƚĂƚĞŵĞŶƚŝƐŶŽƚƉƌĞƉĂƌĞĚŝŶĂůůŵĂƚĞƌŝĂů ƌĞƐƉĞĐƚƐ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƌƚŝĐůĞ ϯϮŬ ŽĨ ƚŚĞ njĞĐŚ ĐĐŽƵŶƚŝŶŐ Đƚ ŝŵƉůĞŵĞŶƚŝŶŐ Ϯϵ;ĂͿ ŽĨ ƚŚĞ h ŝƌĞĐƚŝǀĞ ϮϬϭϯϯϰhŝŶĐůƵĚŝŶŐ  • Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the Group to identify the information reported in the Consolidated Sustainability Statement is in accordance with the description set out in note 1.8 Double Materiality Assessment; and • Compliance of the disclosures in 2.1.1 Disclosure requirements for the EU Taxonomy of the Consolidated Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).   KƚŚĞƌDĂƚƚĞƌ  KƵƌĂƐƐƵƌĂŶĐĞĞŶŐĂŐĞŵĞŶƚĚŽĞƐŶŽƚĞdžƚĞŶĚƚŽŝŶĨŽƌŵĂƚŝŽŶŝŶƌĞƐƉĞĐƚŽĨĞĂƌůŝĞƌƉĞƌŝŽĚƐ  /ŶWƌĂŐƵĞŽŶϭϵDĂƌĐŚϮϬϮϱ  ƵĚŝƚĨŝƌŵ ^ƚĂƚƵƚŽƌLJĂƵĚŝƚŽƌ  ĞůŽŝƚƚĞƵĚŝƚƐƌŽ ƌĞŐŝƐƚƌĂƚŝŽŶŶŽϬϳϵ DŝƌŽƐůĂǀDĂLJĞƌ ƌĞŐŝƐƚƌĂƚŝŽŶŶŽϮϱϮϵ  335 SUSTAINABILITY STATEMENT Annual Financial Report 2024 CONSOLIDATED    SUSTAINABILITY  STATEMENT 336 SUSTAINABILITY STATEMENT Annual Financial Report 2024 CONTENT 339 PREPARING FOR THE CORPORATE SUSTAINABILITY REPORTING DIRECTIVE 339 1. SUSTAINABILITY EMBEDDED IN BUSINESS 339  1.1  GENERAL BASIS FOR PR EPARATION  340  1.2  ESG COR PORATE GOVERNANCE FRAMEWORK 342  1.3  INTEGRATION OF SUSTAINABILITY-RELATED  PERFORMANCE INTO REMUNERATION 343  1.4  STATEMENT ON DUE DILIGENCE 343  1.5  RISK MANAG EMENT AND INTERNAL CONTROLS  345  1.6  STRATEGY, BUSINESS MODEL AND VALUE CHAIN 346  1.7  INTERESTS AND VIEWS OF STAKEHOLDERS  348  1.8  DOUBLE MATERIALITY ASSESSMENT   350  1.8.1  Disclosure of topics a sses sed not to be material 351  1.9  MATERIAL IMPACTS, RISKS AND OPPORTUNITIES  354 2. DRIVING POSITIVE CHANGE FOR THE ENVIRONMENT 354  2.1  TAXONOMY-ALIGNED KPIS  354  2.1.1  Disclosure requirements for the EU Taxonomy  357  2.2  CLIMATE CHANGE  357  2.2.1  Integration of sustainability-related performance into remuneration 357  2.2.2  Material sustainability-related impact s and risks  358  2. 2.3  Transition p lan for climate change mitigation 358  2. 2.4  Po licies  358  2. 2.5  Actions and resources 360  2.2.6  Targets  361  2.2.7  Energy c onsumption 362  2.2.8  Gross Scopes 1, 2, 3 and Total GHG emissions 366  2.3  BIODIVERSITY AND ECOSYSTEMS  366  2.3.1  Material sustainability-related impacts, risks 366  2.3.2  Transition plan on biodiversity and ec osystems  366  2.3.3  P olicies  366  2.3.4  Actions and resources  366  2.3.5  Targets  366 3. BUSINESS POWERED BY PEOPLE 367  3.1  OWN WORKFORCE 367  3.1.1  Material sustainability-related impacts and risks  368  3.1.2  Polici es  369  3.1.3  Employee engagement  369  3.1.4  Employee Ombudsman 370 3.1.5 Actions 372  3.1.6  Targets  373  3 .1.7  Employee characteristics 374  3.1.8  Diversity  374  3.1.9  Adequate Wages 374  3.1.10  Social protection 375  3.1.11  Persons w ith dis abilities 375  3.1.12  Training and skills development  375  3.1.13  Work-life balance  375  3.1.14  Remu neration and pay gap 376  3.1.15  Incidents and complaints 376  3.2  CONSUMERS & END-USERS  376  3.2.1  Material sustainability-related impacts and risks  376  3.2.2  Policies  377  3.2.3  Engagement with clients 377  3.2.4  Client Ombudsman  377 3.2.5 Actions 378  3.2.6  Targets  379  3.2.7  Cyber security – entity-specific topic 337 SUSTAINABILITY STATEMENT Annual Financial Report 2024 381 4. GOVERNANCE THROUGH VALUES 381  4.1  BUSINESS CONDUCT 381  4.1.1  ESG Corpora te governance framewor k  382  4.1.2  Material sustainability-related impact and risks 382  4.1.3  Business conduct policies and corporate culture 384  4.1.4  Prevention and detection of corruption or br ibery  386 5. APPENDIX 386  5.1  DISCLOSURE REQUIREMENTS IN ESRS COVERED BY SUSTAINABILITY STATEMENT 390  5.2  INCORPORATION BY REFERENCE 390  5.3  POLICIES  392  5.4  EU TAXONOMY - A NNEX VI – TEMPLATE FOR THE KPIS OF CREDIT INSTITUTIONS 452  5.5  EU TAXONOMY ADDITIONAL DISCLOSURE ON NUCLEAR AND GAS RELATED A CTIVITIES 339 SUSTAINABILITY STATEMENT Annual Financial Report 2024 PREPARING FOR THE CORPORATE SUSTAINABILITY REPORTING DIRECTIVE Sustainability  has  a  long  tradition  at  MONETA  Money  Bank, a.s. (together with its subsidiaries hereinafter as  “the  Group”  or  “MONETA”).  For  the  past  three  years,  MONETA  has  published  standalone  sustainability  reports that use the Global Reporting Initiative (“GRI”)  methodology,  the  Sustainable  Development  Goals  (“SDGs”)  and  that encompass the three  ESG aspects –  Environmental,  Social  and  Governance.  Following  developments  in  European  regulations,  MONETA  has  gradually  incorporated  EU  Taxonomy  and  other  disclosure requirements bas ed on ESG indices. With the  arrival  of  the  new  Corporate  Sustainability  Reporting  Directive  (“CSRD”),  the  Sustainability  Report  again  becomes an integral part of the Annual Finan cial Report.  Using  the  double  materiality  assessment  (“DMA”)  to  identify  the  Group’s  material  topics  and  the  impacts,  risks and opportunities (“IROs”) stemming from  them,  MONETA  presents  this  Consolidated  Sustainability  Statement (hereinafter the „Sustainability Statement“)  to  fulfil  the  r e porting  requirements  in  line  with  the  European Sustainability Reporting Standards (“ESRS”). 1. SUSTAINABILITY EMBEDDED IN BUSINESS 1.1 GENERAL BASIS FOR PREPARATION MONETA’s Sustainability Statement has been prepare d  on  a  consolidated  basis  for  the  reporting  period  from  1  January  2024 to  31 December 2024,  with  the  scop e  of  consolidation  being  the  same  as  for  the  finan cial statements prepared for the same period. No  subsidiary und e rtakings included in th e  consolidation  are  exempted  from  individual  or  consolidated  sustainability reporting pursuant to Articles 19a(9) or  29a(8) of Directive 2013/34/EU. The  Sustainability  Statement  has  been  p repared  in  accor dance with Article 32k of the Czech Acco unting Act,  which implements Article 29a of Directive 2013/34/EU,  the  report  has  been  prepared  in  accord ance  with  the  European Sustainability Reporting Standards introduced  by  the  Commission  Delegated  Regulation  (EU)  of  31  July  2023  supplementing  Directive  2013/34/EU  of  the  European Parliament and of the Coun cil. The  information  provided  in  section  2.1  of  the  Sustainability Statement is in accordance with Article  8  of  Regulation  (EU)  2020/852  (hereinafter  also  the  “Taxonomy Regulation”). The  Sustainability  Statement  has  been  prepared  in  accor dance w ith the European Sustainability Reporting  Standards  following  the  outcome of  the  Group’s  due  diligence  process  and  its  materiality  assessment  and  includes  material  imp acts,  risks  and  opportunities  (“IROs”) connected with the Group’s own ope rations,  upstream and downs tream value chains, including the  retail and commercial loan portfolios.  The Group has not used the option to omit a specific  piece  of  information  corresponding  to  intellectual  property, know-how, or the results of innovation nor  impending  d evelopments or matters in the course of  negotiation.  This  is  the  first  time  that  MONETA  has  prepared  a  Sustainability  Statement  in  accordance  with  ESRS  requirements.  If  previous  period  data  are  disclosed,  they are not subject to verification by the auditor. No  information  stemming  from  other  legislation  requiring  an  undertaking  to  disclose  sustainability  information  or  from generall y  accepted  sustainability  reporting standards and frameworks is included in thi s  Sustainability Statement. Time horizons In  general,  and  in  keeping  with  ESRS  guidelines,  MONETA  assessed  its  material  impacts,  ri sks,  and  opportunities  over  the  short,  medium,  and  long  term.  The  evaluation  of  climate-related  risks  and  opportunities  is incorporated into  MO NETA’s internal  risk  management  procedures.  Due  to  the  expected  lifespan  of  its  assets  and  infrastructure,  MONETA  employs  slightly  different  time  ho rizons  compared  to  the  ESRS  definition.  The  short-term  hor izon  is  up  to  3  years,  the  medium-term  horizon  covers  3  to  5  years,  and  the  long-term  horizon  extends  fro m  5  to 30  years,  which  ali gn s  with  established stand ards.  These  time  horizons  were  used  for  the  materiality  asses sment in order  to evaluate  climate-related risks  and opportunities effectively. For financial materiality  MONETA  considers  o nly  short-term  horizons,  which  are supplemented by time trends. Disclosures incorporated by reference Certain datapoints related to disclosure requirements  covered  in the  Group’s  Annual Financial  Report 2024  are incorporated by reference  (see “Incorporation by  reference” table in the Appendix).  Value chain MONETA‘s upstream value chain  primarily consists of  suppliers ,  whil e  the  downstream  value  chain  mainly  comprises commercial and retail client loan portfolios.  For  details  see  section  1.6  Strategy,  business  model  and value chain.  MONETA has utilised th e  phase-in option  as  outlined  in  ESRS  2,  Appendix  C:  List  of  Phased-in  Disclosure  SUSTAINABILITY STATEMENT – ESRS 2 340 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Requirements.  In  Scope  3  emissions  (f i nan ced  port folio), MONETA collects available  carbon footprint  data from its clients. For more details see section 2.2.8  Gross Scopes 1, 2, 3 and Total GHG emissions – Scope  3 emissions. Accordingly,  the  Group  disclosed required qualitative  information related to the value chain in topical ESRS,  specificall y  E1  (Climate  change),  E4  (Biodi versity),  S1  (Own  workforce),  S4  (Consumers  and  End-users)  and G1 (Business conduct). Sources of estimation and outcome uncertainty Forward- looking  statements  contained  in  this  report  are  bas ed  on  curr e nt  expectations  and  assumptions,  which are themselves subject to inhe rent uncertainties  and  risks.  A ctual  results  may  differ  materially  fro m  those anticipated due to a variety of factors, including  unpredictable market conditions, changes in re gul atory  environments, technolo gical developments, economic  volatility, operational ri sks, and external events such as  geopolitical developments and natural disasters. Given  these  uncertainties,  the  projections  pr ovided  should  be considered with caution.  1.2 ESG CORPORATE GOVERNANCE FRAMEWORK The Group discloses informatio n regarding the composition and diversity of the members of its administrative,  management  and  supervisory  bodies  in  Chapters  4.1,  4.3,  and  4.5  of  its  Annual  Financial  Report  2024,  and  in  the  Appendix  of  the  Sustainability  Statement.  These include  the  composi tion and  diversity  of Sup e rvis ory  and  Management Boards. In 2021, MONETA identified the need for incorporating ESG into its corporate governance. Subs equently, the ESG  Cluster was es tablished as the administrative body, with the Sustainability Committee guiding and overseeing its  actions. Other bodies such as the Supervisory Board, the Remuneration Committee, the Nomination Committee,  and the Value Stream Steerin g Commit te e have each integrated ESG into their daily operations.  Supervisory Board Remuneration Committee Nomination Committee The Management Board Sustainability Committee (quarterly meeting) Value Steering Committee (ESG Cluster participated on 3 meetings) ESG Cluster (ad-hoc meetings) N/A All members All relevant MRTs & Senior Managers All relevant initiative/Process owners Board – level governance Executive – level governance Initiative/process – level governance MONFAIR Committee KPIs The Supe rvisory Board is the senior authority and is kept informed about key sustainability issues as needed while  overseeing the actions of the Management Board. Sustainability Committee The  pri mary  responsibility  for  monitoring  ESG  objectives,  including  impacts,  risks,  opportunities,  and related targets, lies with the Management Board  represented  by  the  Sus tainability  Committee.  The  Committee  was  establi shed  in  2021.  It  oversees  the  asses sment  of  the  materiality  of  impacts,  risks  an d  SUSTAINABILITY STATEMENT – ESRS 2 341 SUSTAINABILITY STATEMENT Annual Financial Report 2024 opportunities and the overall management of ESG risks  across the  Group. Within  its  remit,  the  Sustainability  Committee  can  issue  instructio n s  to  employees  and  members  of  th e  statutory  bodies  of  the  subordinate  entities.  The  Sustainability  Committee  may  receive  assistance  from  internal  or  external  experts,  and  preparatory sessions may b e organised with a broader  group  of  stakeholders,  including  external  experts,  before  matters  are  discussed  by  the  Committee.  This  Committee  also  decides  or  approves  r e medial  measures in case of an unde si rable development trend. The Committee me ets quarterly, and its responsibilities  include:  (a)  Ongoing rev iew of the ESG Strategy, spe cifically  with respect to climate-related issues, proposing  updating and s eeking the approval of the  Group’s Management Board;  (b) Reviewing the quarterly ESG reports against the  set objectives of the ESG Strategy;  (c)  Deciding on corrective actions in the event of  adverse developments;  (d) Evaluating external influences and changes,  including regulatory changes, relevant to the ESG  area;   (e) Deciding on appropriate actions and informing  other relevant management bodies and  committees of the Group.  The  Sustainability  Committee  makes  de cisions  by  a simple majority of the votes present at the meeting.  The  Sus tainability  Committee  is  quorate  if  half  of  its  voting members are present at the meeting while also  holding  a  simple  majority  of  the  votes  of  all  voting  members (including MONETA Stavební Spořitelna, a.s.  Board  members).  In  the  event  of  absence,  a  voting  member of the Sustainability Committee may delegate  the exercise of his/her voting rights to another voting  member.  As  of  September  2024,  th e  Sustainability  Committee  had  six  voting  members:  Chief  Executive  Officer,  or  CEO,  (Chairman),  Chief  Risk  Officer  (Vi ce-Chairman),  Chief  Financial  Officer,  Chief  Operating Officer,  Chief  Commer cial  Banking  Officer,  Chief  Retail  Bank ing  Officer,  and  four  non-voting  members:    Director  Human Resources, Dire ctor Compliance, Chief Shared  Services  Officer  and  Senior  Manager  Sustainability,  Talent Acquisition & Development. Other managers or  external experts may, on an a d hoc basis, be consulted  or asked to present regarding a specific agenda point. The CEO is ultimately responsible for the Sustainability  Committee, for the agenda of the Committee and for  delegating responsibilities over key areas to individual  Sustainability Committee membe rs. The members are  subsequently  responsible  for  their  relevant  agenda  and  may  delegate  agenda  actions  to  individual  ESG  Cluster  members. For  details  see  Chapter  4.11.2.9  of  the Annual Financial Report 2024. Over  the  years,  the  Sustainabilit y  Committee  has  approved, mandated and requested further information  on  various  issues  and  agenda  points.  For  example,  it  has approved a plan to increase the number of electric  cars  in  the  fleet  while  simultaneously  decreasing  the  number of combustion cars, asked for model calculation  of the company’s carbon footprint, and requested that  the gender pay gap of individual divisions/departments  be  moni tored  on  a  regular  basis.  The  Committee  has  also  reviewed  p roposals for  launching ESG/sustainable  loans  fo r  small  business  and  r etail  clients  and  has  acknowledged the changes in ESG disclosures. The  Sustainability  Committee  is  aware  of  the  importance  of  ESG-related  regulation,  specif ically  Directive (EU) 2022/2464 of the European Parliame nt  and  Reg ulation  2020/852  (EU  Taxonomy  Re g ulation).  Every  quarter  the  Committee  monitors  and,  if  necessary,  pr e pares  appropriate  actions  to  ensure  adherence to the r equirements. Its mission is to assist  the  Management  Board  in  effectively  implem e nting  and  overseeing  all  ESG-related  and  climate-related  activities across MONETA.  To prepare for sustainability reporting under  Directive  (EU)  2022/2464,  the  Sustainability  Committee  reviewed  and  approved  material  topics,  impacts,  risks, and  opportunities  as  part  of  MONETA’s  double  materiality assessment. Completed in 2024 by MONETA  and approve d after an external review carried out by  external advisors using industry benchmark in October  2024,  this  assessment  formed  the  basis  for  updating  MONETA’s ESG Strategy, inc luding steps to achieve ESG  KPIs.   Other committees involved in ESG corporate governance MONETA  has  other  committees  which  function  as  the  building  blocks  of  its  ES G  corporate  governance.  The  main  ones  are  the  Nominatio n  Committee  and  Remuneration  Committee,  whose  responsibilities  are  descr i bed  in  Chapters  4.11.1.1  and  4.11.1.2  of  the  Annual Financial Report 2024. Diver sity  and  inclusion  are  important  material  topics  for MONETA. That is why the advisory committee for  the Management Board, MON FAIR, was established to  cover employee diversity, fair treatment and inclusion. The Value Stream Steering Committee is responsible for  approving the initiatives, which are the building blocks  of changes within MONETA. In the process of prep aring  the  Initiative  Roadmap  for  each  year,  it  reviews  the  initiatives in terms of cost/benefit, regulatory matters  and  ESG  factors.  The  approved  Roadmap  is  then  SUSTAINABILITY STATEMENT – ESRS 2 342 SUSTAINABILITY STATEMENT Annual Financial Report 2024 submitted  to  the  Management  Board  for  approval.  Halfway through  the  year,  the  Value  Stream Steering  Committee  checks  on  the  progress  of  the  approved  initiatives  and  pl ans  new  initiatives  where  necessary  incorporating all the above-mentioned aspe cts.  ESG Cluster The  ESG  cluster  was  established  in  2021.  This  is  an  agile  team  compr ising  m e mbers  of  the  Sus tainability  Department  and  other  teams  and  departments  participating  in  the  ESG  agenda,  especially  those  delivering  ESG  initiatives  pursuant  to  MONETA’s  ESG  Strategy. The ESG Cluster is headed by the ES G Cluster  Owner, who is also a Senior Manager of Sustainability,  Talent  Acquisiti on  &  Development.  The  Owner  is  responsible for the ESG agenda and is a ccountable to  the Management Board. The ESG Cluster gathers data  for  the  calculation  of  the  carbon  footprint,  informs  the  Management  Board  on  the  latest  regul atory  developments in the ESG area, and supports the ESG  agenda within MONETA. Three lines of defence Proper  mana gement  of  ESG  factors  and  r isks  at  MONETA  requires  a  holistic  approach  that  is  ti ghtly  integrated  into  three  lines  of  de fe nce.  The  first  line  of  defence  is  prov ided  through  training,  educ ation  and  financial  support  to  manage  e xposure  to  ESG  factors  and  risks,  while  the  focus  is  primarily  o n  employees,  suppliers,  clients  and  the  overall  level of  ES G  risks  to  which  the  Group  is  exposed.  MO NETA  has  an  Early  Warning  System  as  part  of  its  first  line  of defenc e,  which in cludes a dedicated employee for  ES G/compliance  matters,  such  as  double  materiality  asses sment,  EU  Taxo nomy,  CSRD,  ESRS,  and  carbon  footprint calculation. The Management Board receives  regulatory  updates  on  Early  Warning  System-related  topic s  during  the  quarterly  Sus tainability  Committee  meeting s. Where MONETA lacks the relevant expertise,  external  consultancy  is  so ught  to  extend  the  ESG  knowledge requi red.  The compliance f unction, which forms the second line  of  defence,  is  responsible  for ensuring  that  MONETA  complies  with  relevant  ESG-relate d  regulations.  However,  the  ultimate  responsibility  for  regulatory  compliance  lies  with  the  first  line  of  defence.  This  function  integr ates  E SG- related  topics  into  its  monitoring  and  impact  assessment  processes.  This  function  is  provide d  by  the  Group’s  Compliance  Department, which regularly infor ms  and advises  the  Management Board  on ESG  regulatory developments  and  impacts  in  this  context.  Together  with  other  regulatory  functions,  Compliance  also  assesses  the  1   Source: https://investors.moneta.cz/documents/12270853/20121822/mmb-new-kpi-2024-en.pdf. 2   Source: https://investors.moneta.cz/corporate-documents. potential  impact  of  any  ESG  regulatory  changes  on  MONETA’s  business.  The  second  line  of  defence  also  includes  a  risk  management  function  that  similarly  considers ESG aspects. The  third  line  of  defence  is  MONETA’s  internal  audit  function: it integrates ESG considerations into its audit  mission  and  regularly  assesses  the  appropriateness  and viability of MONETA’s processes.  In 2024, after three comprehensive ESG-focused audi ts  in 2023 covering ESG programme governance, carbon  footprint  agenda  and  Code  of  Ethics,  the  internal  audit team c ontinued in the set auditin g strategy and  reviewed  3  areas  related  to  “Governance”  aspects  –  a  comprehensive audit of Compliance programme and  function,  IT  Governance  review  and  regular  annual  review of Management Remuneration. In all cases, the  internal audit was passed su ccessfully, and no material  deficiencies were identified.  These and other key ESG ar eas will be audited by the  internal team regularly, at least once every four years. For  details  see  Chapter  4.12  of  the  Annual  Financial  Report 2024. 1.3 INTEGRATION OF SUSTAINABILITY- RELATED PERFORMANCE INTO REMUNERATION Key performance indicators known as ESG-related KPIs  stemming from MONETA’s ESG Strategy are integrated  into  the  remuneration  of  the  Management  Board  members,  selected  managers  who  are  also  Material  Risk  Takers  (“MRTs”)  within  the  Group,  and  other  employees responsible for individual activities through  the variable re mune ration component .  The  general  rules  and  principles  regarding  the  remuneration  of  members  of  the  Management  Board  and  the  Supervisory  Board  are outlin ed in  the  Remuneration Policy. Th e  implementation of the ESG  strategy is linked to the variable remunerati on of the  Management  Board.  This  is  reflected  in  qualitative  KPIs,  which  account  for  30%  of  the  overall  variable  bonus.  The  targets  are  based  on  the  busine ss  plan  and  approved  by  the  Supervi sory  Board 1 .  The  KPIs  and their achievement are assessed annually and are  taken  into  account  in  the  review  for  the  following  period.  The d etailed structure of targets and awarded  remuneration is included in the Remuneration Report,  which  is  updated  annually.  These  documents  are  available on MONETA’s investor website 2  in the section  Corporate governance – Corporate documents. SUSTAINABILITY STATEMENT – ESRS 2 343 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Details  of  metrics  and  tar gets  of  the  Management  Board  and  selected  Key  Executive  Managers  with  ESG KPIs are listed below: Chief Executive Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  –  delivery  of  all  assign ed  tasks  under  th e  approved  ESG  strategy  and  support  for  all  ESG-related  regulatory  reporting  requirements  including  double  materiality  as sessment,  meeting  the  carbon reduction target and improving gender diversity. Chief Risk Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  –  delivery  of  all  assigned  tasks  under  the  approved  E SG  strategy  and  support  for  all  ESG-related  regulatory  reporting  requirements,  including  d ouble  materiality  assessment,  enhance  data  collection  capabilities  within  the  commercial  underwriting and collateral valuation processes. Chief Financial Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  –  delivery  of  all  assigned  tasks  under  the  approved  E SG  strategy  and  support  for  all  ESG-related  regulatory  reporting  requirements  including  double  materialit y  assessment.  Maintain  MONETA’s r ating by the MSCI index. Chief Commercial Banking Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  –  deliver  all  tasks  under  the  approved  ESG  strategy,  supporting  the  fulfilment  of  regulatory  reporting  requirements,  the  ESG-related  data coll ection and impr oving gender diversity. Chief Operating Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  -  delivery  of  all  assigned  tasks  under  the  approved  E SG  strategy  and  support  for  all  ESG-related  regulatory  reporting  requirements  including  double  materiality  assessment.  Meet  the  carbon reduction target. Chief Shared Services Officer: Implementation  of  Environmental,  Social  and  Governance  strategy  –  delivery  of  all  assign ed  tasks  under  th e  approved  ESG  strategy  and  support  for  all  ESG-related  regulatory  reporting  requirements  including  double  materiality  assessment.    Achieve  an  83%  reduction  in  c arbon  footprint  compared  to  2016  and maintain the share of electric cars at the 2023 level. Chief Retail Banking Officer: There were no KPIs related to sustainability determined  for the Chief Ret ail Banking Officer due  to his election  as a Board member in September 2024. 1.4 STATEMENT ON DUE DILIGENCE Sustainability  Due  Dili gence  is  the  process  whereby  MONETA identifies, prevents,  li mits and reports actual  and potential negative impacts on the environment and  people as a result of its activities. It also pertains to the  practices applied to c hanges in th e operation’s strategy,  business  model,  activities,  business  relationships,  actual  operations,  and  the  context  of  acquisitions  or  divestments.  The  core  of  this  p ractice  is  how  the  different  steps  in  the  Sustainability  Due  Diligence  process  identify  and  measure  the  negative  impacts  that arise or may arise due to operations and that are  directly linked to its activities, products and services,  as  well  as  its  business  relationships  across  the  value  chain. Core elements of due diligence Sections in the Sustainability Statement Embedding due diligence in governance, strategy and  business model 1.5 – Risk mana gement and  internal controls a nd   1.6 – Strategy, bus iness model  and value chain Engaging with affected  stakeholders in all key steps of  the due diligence 1.7 – Interests a nd views of  stakeholders Identifying and assessing  adverse impacts 1.8 – Double materiality  assessment Taking action to ad dress those  adverse impacts 2.2.6 – Targets (related to  Climate change), 2.3.5 –Targets  (related to Biodiversity),  3.1.6 – Targets (related to Own  Workforce), and 3.2.6 Targets  (related to Consumers and  end-users) Tracking the effectiveness  of these efforts and  communicating 1.7 – Interests a nd views of  stakeholders  1.5 RISK MANAGEMENT AND INTERNAL CONTROLS ES G risk is the risk of losses arising from any negative  finan cial  impact  o n  the  Group  stemming  from  the  current  or  prospective  impacts  of  Environmental,  Social  or  Governance-r e l ate d  factors  o n  the  Group’s counterparties or invested assets.  MONETA  is  aware  of  the  principal  ESG  risks  that  it  is  facing  and  understands  them  as  drivers  of  existing  finan cial risk categor ies, namely credit risk, market risk,  operational risk, and liquidity risk, and th e refore takes  a holistic approach to ESG factors and risks. For details  see Chapter 5.2.11 of the Annual Financial Report 2024. MONETA  is  con ducting  an  anal ysis  of  the  princ i pal  ES G  risks  as  drivers  of  existing  risk  categories  and  is  identify i ng  any  subsequent  possible  business  opportunities. The analysis is  re- evaluated  on a yearly  basis and it s findings are integrated within this strategy.  The  analysis  and  overall  governance  of  ESG  risks  are  overseen by the Board-level Sustainability Committee.  In  addition,  MONETA  has  up d ate d  its  risk   catalogue  SUSTAINABILITY STATEMENT – ESRS 2 344 SUSTAINABILITY STATEMENT Annual Financial Report 2024 to cover climate-related and  environmental risk s  and  will continue to update the catalogue to include other ES G-related risks in line with the latest development of  ES G risk methodologies.  MONETA understands the issues i t is facing regarding  the availability of relevant ESG data and is conducting data e nhancement projects to gather all data required  for ESG risk decision-making, particularly  with re spect  to c redit risk. From the second half o f 2021 MONETA  has  been  conducting  p roject s  for  its  loan  portfolio  to  incr ease  the  availability  of  data  on  material  ESG  factors.  In  th e  first  stage,  MONETA  primarily focuses  on its financed emissions as it will use them to measure  transition risk.  MONETA  considers  credit  risk  within  its  banking  book  to  be  the  most  materially  impacted  by  ESG  factors as it is assumed to have the largest impact on  MONETA’s business and directly affects the majority of  MONETA’s portfolio. MONETA’s planned asses sment of  ES G  risks  currently  encompasses  climate-related  and  environmental transition and physical risks.  To  integrate  the  aforementioned  risk s  within  the  Risk Appetite Statement,  Book of Limits and relevant  internal  policies,  MONETA  has  segmented  its  loan  port folio into different NACE sectors and is devel oping,  monitoring and analysing i ndividual financed ESG risk  indicators for transition and  physical risks, which will  be  subsequently  integrated  within  MONETA’s  risk  appetite.  MONETA  is  planning  on  using  financed  greenhouse  gas  emission  intensity  measures  as  an  indicator  of  transition  risk.  MONETA’s  quantitative  goals, KPIs, and limits with respect to transition risk will  subsequently  be  linked  to  the  carbon intensity  of  its  loan portfolio; the specific targets, goals and limits will  be  set  in  compliance  with  relevant  regulations  after  MONETA conducts the analysis of its portfolio. MONETA’s active approach to ESG risks is proportional to  the size of its exposures w ithin the loan portfolio. MONETA  implemented an ESG scorecard (as part of the Commercial  Individually Managed rating to ol) within its loan approval  process  to  assess  the  ES G  risk  level  of  selected  large  corp orate  counterparties.  MONETA  will  measure  and  monitor the overall ESG rating of the concerned port folio  with  the  aim of gradual  improvements,  in  line with  the  overall ESG strategy targets.  MONETA  has  defined  a  list  of  sectors  that  can  be  served  only  in  exceptional  cases  and  under  the  condition  of  approval  by  the  Credit  Committee  as  a top-level credit approval authority, such as gambling,  waste treatment, mining, oil & gas extraction, nuclear  power, the production, use and tra de of asbestos and  other  environmentally  dangerous  substances,  and  any  busin e ss  with  genetically  modified  organi sms.  MONETA regularly assess es the list of these sectors and  incorporates ESG-related criteria within the review.  Also, MONETA performs Anti Money Laundering checks  of  all  larger  commercial  cre dit  clients  and  escalates  decisions to higher approval authorities in case they are  involved  in  significant  public  controversies  that  could  pose a material ne gative reputational risk to MONETA.  MONETA will also conduct efforts to incorporate ESG  risks into c ollateral management in the loan approval  and  monitoring  process,  with  a  primary  focus  on  physical  risks  for  loans  collateralised  by  real  estate.  MONETA  actively  engages  in  gathering  new  data  for  such purposes, starting with collecting energy labels of  pledged real estate. MONETA  limits  its  counterparties  on  financial  markets  by  using  a  list  of  counter parties  that  is  agreed  to  and  ratified  according  to  MONE TA’s  credit  unde rwriting  polic ies. MONETA currently mostly invests in the Czech  government and sovereign fixed-income debt. The list of  counterparties is revised on an annual basis and MONETA  plans to include ESG-related criteria within the  approval  process of counterparties. MONETA’s assessment of ESG  risks in the trading book will follow the above-mentioned  principles as it creates exposures in the trading book only  for the purpose of providing commercial customers with  tools to hedge Forei gn Exchange risk.  MONETA considers ESG factors and risks as dri vers of  operational  risk,  specifically  transition  and  physical  climate-related an d  environmental risks and negative  reputational  risks.  MONETA  had  identified  these  risk  drivers  as  the  m ost  material  operational  risk  drivers  by  means  of  a  qualitative  materiality  asse ssment.  Also,  MONETA  regularly  identifies  ESG  risk  factors  in  its  operatio ns  during  the  annual  Risk  &  Control  Self-Assessme nt (“RCSA”) process.  Potential  negative  reputati onal  risks  are  mi tigated  by  decreasing  the  environmental  footprint  of  MONETA’s  operatio ns  and  improving  its  ESG  profile.  MONETA aims to satisfy this goal by becoming a leader  in digital banking services and increasing the efficiency of its operations. MONETA aims to reduce its carbon  footprint by 90% in Scopes 1 and 2 by the end of 2026  and to comply with the relevant sustainability-re l ate d  regulation (for details see secti on 2.2 Climate Change).  To  limit  th e  exposure  towards  climate-related  and  environment al  risks  as  drivers  of  operational  risk,  MONETA  aims  to  screen  its  suppliers  for  environmental  and  social  risks  to  ensure  compliance  with MONETA’s standards and mitigate transition risks within  its  supp ly  chain.  Furthermore,  MONETA  aims  to decrease its overall carbon footprint, which should  lead to a decrease in its transition r isk exposure. The  Group  is  exposed  to  risks  associated  with  SUSTAINABILITY STATEMENT – ESRS 2 345 SUSTAINABILITY STATEMENT Annual Financial Report 2024 incomplete or inco n si stent reporting on sustainability  topic s ,  including  risks  associated  with  gr eenwashing.  There  are  als o  risks  related  to  the  accuracy  of  data  inputs  and  manual  e rrors  in  the  reporting  process  from aggregating data from multiple systems into the  corp orate disclosure management system. For more detail concerning ESG corporate governance  structure  and  the  three  lines  of  defence  see  section  1.2 ESG Corporate governance framework. 1.6 STRATEGY, BUSINESS MODEL AND VALUE CHAIN MONETA  is  a  holding  consis ting  of  the  parent  controlling company MONETA Money Bank, a.s. and its  controlled  subsidiaries:  MONETA  Stavební  Spořitelna,  a.s., MONETA Auto, s.r.o. and MONETA Leasing, s.r.o.,  all  operating  in  the  financial  services  and  insur ance  segment. For a detailed description see Chapter 2.3 of  the Annual Financial Report 2024. MONETA operates solely in the Czech Republic, serving  1.6  million  retail  and  commercial  customers  through  an  extensive  nationwide  network  of  124  branches,  557 ATMs within a ne twork of 1,966 shared ATMs. The  Group  has  a  particular  stren gth  in  small e r  cities  and  towns, which are relatively under-served by other banks.  MONETA  also  benefits  from  its  market-leading  digital  banking  platforms,  which  are  becoming  inc reasingly  important channels for both sales and services.  The  value  chain  for  MO NETA,  in  the  co ntext  of  the  ESRS,  includes  all  activities,  resources,  and  relationships  involved  in  delivering  banking  services  from conception to end-of-life. Below is a breakdown  of the key components: Upstream Activities These  encompass  all  activities  related  to  sourcing  and  procurement  of  resources necessary  for  banking  operations: •  Suppli e rs and vendors: Providers of IT infrastructure,  office supplies, and other essential services. •  Capital providers: Inves tors and financial institutions  providing capital. Core Banking Operations These are the  primary activities directly related to the  Group’s core functions: •  Customer  services:  Account  management,  loans,  mortgages, and investment services. •  Risk management: Assessing and managing financial  risks. •  Human  resources:  Recruitment  and  training  of  employees. •  Compliance and  reporting:  Ensuring  adherence  to  regulatory requirements, including ESRS. Downstream Activities These involve the delivery of services to end-users and  the broader impact of these services: •  Customer  i nteraction:  Branch  services,  online  banking, and customer suppo rt. •  Community  engagement:  Corporate  social  responsibility  initiatives  and  community  investments. •  End-of-Life:  Closure  of  accounts,  terminatio n  of  services, and data management. MONETA purchases goods and services from suppliers  mainly in the areas of information technology, marketing  and  advertising,  cash  and  non-cash  payments,  legal  and  c onsulting services,  telecommunications, energy,  postal services, construction work, and building rental  for  its  branches.  MONETA  actively  cooperates  with  about  700  supp liers,  with  approximately  85%  of  the  allocated expenditure going to domestic suppliers. The  remaining suppliers are primarily based in the European  Union,  the  UK  and  North  America.  Cooperatio n  with  foreign  suppliers  (EU  or  non-EU)  is  only  established  when it is not possible to find a supplier of the required  service or product on the local market.  MONETA’s business (related to its own operations and  downstream)  is  organised  into  two  main  segments:  retail  and  commercial,  with  an  established  position  in  house hold  financing  and  a  growing  shar e  of  the  small  business  segment.  The  retail  s egment  focuses  on  deposits,  loans,  revolving  products,  credit  cards,  mortgages,  building  savin gs  and  other  transactions  with  private  individuals.  The  commercial  segment  consists  of  de posits,  investment  loans,  revolving  products,  financing of  real estate, finance leases  and  other  services related  to trans actions  with  small  and  medium-sized enter prises, corporate clients, financial  institutions, and public sector institutions. Services are provided through digital channels, the branch network  and the contact centre. In the retail segm e nt the Group  is particularly focused  on mo rtgages and consumer loans, in the c ommercial  sector its largest exposure is to agriculture, real estate  and the services sector. On the other side of its balance  sheet the Group invests primarily in government bonds.  For  details  see  Chapter  2.3  of  the  Annual  Financial  Report  2024  and  Notes  23.  Loans  and  Receivables  to  Customers,  24.  Investments  in  Securities,  44.2.5  Credit Co ncentration Risk of the Notes to Consolidated  Financial Statements.  SUSTAINABILITY STATEMENT – ESRS 2 346 SUSTAINABILITY STATEMENT Annual Financial Report 2024 The  main  impacts  identified  in  these  sectors  i nclude  higher  climate  risks  and  the  erosion  of  biodiversity.  On  this  basis,  the  Group  decided  to  focus  its  action  on  climate  change  mi tigation  and  biodiversity  preservation to pursue it s target-setting strategy. They  are supported by the Group’s willingness to monitor its  positive imp act and support for its clients. In  2024  MONETA  generated  CZK  8,919  million  of  revenues  from  interest  and  other  similar  income  (financial  service  activities,  except  insurance  and  pension  funding,  NACE  K64),  consistent  with  the  disclosure  presented  in  its  financial  stateme nts.  The  Group  does  not  generate  revenues  other  than  from  financing  activitie s ,  specifically  it  is  not  active  in  the  fossil  fuel  sector  as  defined  in  Article  2, point  (62),  of  Regul ation  (EU)  2018/1999  of  the  European  Parliament  and  the  Council),  the  chemical  sector  as  under  Division  20.2  of  Annex I  to  Regulation (EC)  N o  1893/2006, controversial weapons under D ivision 20.2  of Annex I to Regulation (EC) No 1893/2006, and is no t  active in the cultivation and p roduction of tobacco.  MONETA’s ESG Strategy is based on a commitment to  running its business ethically, including its relationships  with key stakeholders to promote a healthy, agile, open  and diverse cor porate culture based on mutual trust,  cooperation, recognition and transparency. The success of MONETA’s business strateg y relies on its  people. As o f 31 De cember 2024, MONETA had 2,587  employees (headcount), the majority of them being its  own employees. As such, the Group identified impacts  on its workforce, including working conditions, training  and  skills  development,  and  equal  treatment  and  opportunities for all, as the main areas of focus.  MONETA’s business activities can have an impact on its  client s , the quality of their lives and the success of their  businesses. MONETA aims to be the leading innovative finan cial services  organi sation  in  the  Czech  Republic,  including  providing  digital  and  sustainable  financing,  and  to  be  perceived  as  such  by  its  customers  and  the  communities  in  which  it  operates.  This  naturally  includes b uilding trusting and lo ng-term relationships.   As  a  bank  with  a  long  history  of  financing  the  agriculture  sector,  MONETA  supports  investments  in  farming  innovation  and  various  agricultur e-related  environmental  measures .  It  seeks  ways  to  increase  farmers’ awarenes s of the importan ce o f bio diversity  and  to  highlight  the  importance  of  independence  in  terms  of  energy  efficiency,  innovative  solutions ,  and  technology.  MONETA aims to align its ESG Strategy and approach  with  the  EU’s  sustainable  finance  taxonomy  and  its  methodology  for  asse ssing  s e lected  industries.  Some  client s  might  experience  heightened  social,  climate,  and  environmental  impacts,  which  could  lead  to  increased credit risk for the Group and so it might be  unable to provi de financing for them. Failing to meet  MONETA’s  sustainable  finance  commitments  could  also result in greater reputational risk. Going  forward,  the  Group  will  further  integrate  the  sustainability  transition  into  its  business  models,  leveraging its current expo sure s and sector knowledge. 1.7 INTERESTS AND VIEWS OF STAKEHOLDERS Defining  material  issues  through  stakeholder  engagement, bo th  internally and externally, is crucial  for sustainability. Conducting materiality analysis helps  MONETA to maintain trust and to manage reputational risk. By  identifying what matters most to stakeholders  and  improving  risk  management,  MONETA  can  act  responsibly,  create  better  produ cts  an d  gain  loyal  customers.  MONETA  therefore  continuously  incorporates feedback from its stakeholders. However,  at this sta ge there are no plans to amend its strategy  and/or business model. In  the  area  of  sustainability,  MONETA  identified  key  stakeholders  to  participate  directly  i n  the  d ouble  materiality  assessment  through  the  questionnaire  descr i bed  in  section  1.8  –  Double  materiality  asses sment.  They  included  shareholders,  the  Management  Board,  Key  Executive  Managers,  the  Supervisory  Board,  selected  employees,  ESG  Cluster  members, and ESG Experts. The ESG Experts comprised  a  mix  of  regulators,  ESG  consultants  and  suppliers,  NGO  representatives,  ac a demia,  and  rating  agencies,  all of which have direct connections to MONETA. The selection  of  stakeholder  groups  was  based  on  their  expertise and knowledge of ESG in the financial sector.  Regular  stakeholder  engagement  is  facilitated  through  multiple  channels,  including  routine  client  and  employee  surveys,  regular  communication  with  shareholders,  and  transparent  reportin g  to  all  the  aforementione d  internal  and  external  stakeholders .  Communication strategies with affected stakeholders  are detailed in the  r e spective  chapters  of this  report  under topical ESRS disclosures S1, S 4, and G1. The  Investor  Relations  Department  communicates  shareholders’  views  to  MONETA’s  administrative,  management,  and  supervisory  bodies.  Other  stakeholders  can  share  their  opinions  through  the  MONQuest  survey  (employees  and  ESG  Cluster),  MONETA  Clementia  Foundation  (NGOs),  and  MONETA’s Communication Department (ESG experts). SUSTAINABILITY STATEMENT – ESRS 2 347 SUSTAINABILITY STATEMENT Annual Financial Report 2024 MONETA maintains frequent communication with all of these stakeholders via th e channels in the table below.  Key stakeholders included in the materiality assessment Key Stakeholders Engagement Methods Frequency Purpose Shareholders •  Annual General Meeting •  Investor Calls  •  Fina ncial results presentation •  Roadshow •  Investor conferences •  Questionnaires  •  Newsletter •  Annually •  Upon request •  Quarterly •  Upon request •  Ad hoc •  ESG Ratings •  Cyber securit y •  AML & Anti-Fraud •  ESG performance and KPIs •  Climate-related risks •  Sustainability performance •  CSRD Management Board & Key Executive Managers & Supervisory Board •  Sustainability Committee •  MON Fair Committee •   Value Stream Steering Committee •  Management Board Meeting •  Quarterly •  Monthly •  Weekly •  ESG Rating •  EU Taxonomy •  Gend e r equality •  ESG Risk Appetite Statement •  Carbon footprint •  Sustainability Statement •  Sustainability updates •  Diversity & Inclusion •   Non-financial statements & ESG KPIs •  ESG initiatives development Selected Employees & ESG Cluster •  ESG Cluster meeting •  Quarterly •  Ad hoc •  ESG Rating •  EU Taxonomy •  Carbon footprint •  Sustainability Statement •  ESG initiatives development ESG Experts •  Questionnaire •  Ad h oc •  Double ma teriality assessment NGOs •  Ques tionnaire •  Ad hoc •  Double materiality asses sment Key users of the Sustainability Statement Key Stakeholders Engagement Methods Frequency Purpose Clients •  Client Satisfaction Survey •  Individual client meetings  •  Client contact centre  •  Client Ombudsman  •  MON ETA Clementia Founda tion  •  Digital Channels  •  Social Media •  Ad hoc •   EU Action Plan on Sustainable Finance •  Code of Ethics  •  Gender Equality  •  Client sati sfaction  •  Cyber securit y  •  AML & Anti-Fraud  •  Access to products/servi ces •  Sustainable business solutions •  Responsible lending Suppliers •  ESG Que stionnaire  •  In-depth reviews  •  Individual meetings •  Upon request •  Code of Ethics  •  Anti-corru ption measures  •  Carbon footprint Regulators •  European Commission  •  European Banking Authority •   European Insurance and  Occupational Pensions Authority  •   European Securities and Markets  Authority  •  Czech National Bank  •  Czech Banking Association •  Fina ncial In telligence Office •  State Labour Inspection Office  •   National Cyber and Information  Security Agency  •  Office for Personal Data Protection  •  Fina ncial Arbitrator  •   Ministry of t he Interior of the Czech  Republic  •   Ministry of Finance of the Czech  Republic  •   Office for the Protection of  Compe tition •  Ad hoc  •  Implementing Acts of the EU •   Regulatory technical standards and guidelines in banking  •   Regulatory technical standards and implementing  technical standards in insurance and occupational pensions  •   Advice and consultation papers on greenwashing   and sustainable development  •   Supervisory opinions and guidelines Codes and  standards: Sample ESG questionnaire  •   Supervision on anti-money laundering policies   and activities  •   Supervision of the protection of workers’ rights   and work safety  •   Cyber security, including the protection of info rmation  and communication systems and cryptogr aphic  protection •  Personal data processing supervision  •  Out-of-court protection of clients’ rights  •  Issuing electronic identities to clients  •   Ass essment of information for the pu rposes of buil ding  savings, especially in the case of non-citizens  •   Supervision of competition and mergers and acquisitions Local Communities •  Grant Programme  •  MON H ELP initiative  •  Partnerships  •  Charity events •   Annually •  Upon request  •  Continuously •  Circular economy  •  Fina ncial literacy  •  Natu re protection  •  Support of the civic society •   Support of disadvantaged adults,   children and the elderly Media •  Press releases •  Interviews •  Podcasts •  Press conferences •  Press inquiries •  Continuously •   All topics relevant to local communities, suppliers,  clients and shareholders, partly employees SUSTAINABILITY STATEMENT – ESRS 2 348 SUSTAINABILITY STATEMENT Annual Financial Report 2024 1.8 DOUBLE MATERIALITY ASSESSMENT The double materiality assessment aims to identify the  material sustainability i mpacts , risks, and op portunities  (“IROs”) the Group is causin g or is exposed to relating  to its operations and the value chain. A sustainability  matter is classified as material when it fulfils the c riteria  for  material  impact,  exceeds the  financial materiality  threshold, or both. MONETA carried out a double materiality as sessment  in  2024  based  on  the  methodology  desc ribed  in  the  final version of the European Sustainability Rep orting  Standards  (“ESRS”)  as  contained  in  Commission  Delegated  Regulation  (EU)  2023/2272  supplementing  Directive  2013/34/EU  as  reg ards  sustainability  reporting  standards.    This  process  is an  extension  of  a double materiality  assessment previously conducted  under  the  GRI  guidance.  The  sustainabilit y  matters  considered  i n this assessment are those set ou t in the  ESRS. The ass e ssment was conducted using the information  available to MONETA at the tim e of the assessm e nt and  consulting its key stakeholders, as well as internal and  external experts. Judgement was applied to determine  the material IROs. Quantitative  data  (where  possible)  were  taken  into  consideration  to  assess  the  IROs  more  comprehensively.  Specifically,  MONETA  used  input  data  and  the  results  o f  carbon  footprint  calculations  to  estimate  impacts  on  the  environment  and  data  from  various  internal  departments,  such  as  Human  Resources  and  Compliance.  Stakeholder  input  was  used  to  complement  data-based  analysis.  This  also  included  MONETA’s  external  ESG  ratings  from  MSCI,  Sustainalytics, Bloomberg Gende r Equality Index, CDP,  FTSE4Goo d, S&P Global and ISS ESG.  MONETA  assessed  impact  materiality  and  financial  materiality  separately.  The  starting  point  was  the  impact  as sessment  (inside-out)  of  it s  impacts  on  the  environment and societ y, which builds on how MONETA  previously  identified  and  assessed  the  sustainability- related impacts of its own operations and value chain.  For  the  financial  materiality  assessment,  risks  and  opportunities  stem  from  identified  impacts  and  are  also  derived  from  external  dependencies,  such  as  expected  climate  transition  pathways  and  associated  investment risks.  MONETA  followed  the  rec ommended  methodology  of  ESRS  for  financial  materiality,  which  states  that  companies should identify impacts and dependencies that  could  trigger  risks  or  opportuniti e s.  Therefore,  any impact that was rated as material from the impact  perspective  was  included  as  a  potential  trigger  of  reputational  or  regul atory  risk.  Dependencies  were  identified  separately  based  o n  desk  re search  and  internal discus sions with cross-functional teams.  To help with the assessment of risks, MONETA leveraged its  key  risk  management  proce sses  across  the  Group  (for  details,  see  Chap ter  5  of  the  Annual  Financial  Report 2024 and Chapter 44 of Notes to Consolidated  Financial Statements)  and external data sources such  as  the  Sustainability  Accounting  Standards  Board  (“SASB”).  Financial  opportunities  were  infor med  by  MONETA’s  internal  for ecasts  and  supplemented  with  industry research.  Each  of  the  IROs  was  assessed  in  the  c ontext  of  MONETA’s  upstream  value  chain  (supply  chain),  own  operations  and  downstream  value  chain  (portfolio).  Time  ho rizons  taken  into  consideration  were  in  line  with the ESRS 1 General requirements.  Based  on  i ndustry  research,  financ ial  institutions’  IROs  predominantly  stem  fro m  th eir  financing  activities.  Therefore, particular attention  was paid  to  the assessment of  the  Group’s retail  and comm e rcial  port folio, especially to the agriculture and real-estate  sectors, and to residential mo rtgages. The  Group  followed  these  four  steps  to  assess  the  materiality of sustainability matters: 1. Identification of relevant sustainability matters via context and value chain analysis The  Group  analysed  b oth  the  internal  and  external  sustainability  environment,  considering  its  business  model, value chain and stakeholders. Besides analysing  relevant  internal  and  external  documentation,  those  responsible for  the  Group’s  most  important business  areas were consulted. Stakeholders were asked to rate MONETA’s positive or negative contribution to  th e ten  sustainability  topics  covered  by  the  ESRS  and  were  required to provide  comments to explain their ratings.  In  addition,  stakeholders  were  given  o pen-ended  questio n s to ask the m to elaborate on additional to pics,  ideas  or  areas  fo r  improvement  of  MONETA’s  ESG  approach. In total 36 re sponses (out of 99 sent) were  returned.  The ratings and  comments  of  s takeholders  were used to identify potential material impacts to be  asses sed in the double materiality assessment. Moreover,  existing  stakeholder  information  on  sustainability  topics  raised  in  ongoing  stakeholder  engagement (e.g. employees and clients surveys) and  the  du e  diligence  process (e.g.  suppliers  ESG surveys  and  ESG  ratings)  was  gath e red.  The  mapping  of  the  value  chain  was  done  to  the  degree  possible  using  in-house data and industry knowledge. SUSTAINABILITY STATEMENT – ESRS 2 349 SUSTAINABILITY STATEMENT Annual Financial Report 2024 The  re sult  of  the  contextual  analysis  performed  in  the  previous  step  led  to  a  set  of  impacts,  risks  and  opportunities  that  were  map ped  to  ESRS  topics,  subtopics, and sub-subtopics as referenc ed in ESRS 1,  Appen dix  B,  AR  16,  adding  additional  topics  specific  to the Group, and creating a longlist of all potentially relevant top ics. The output of this p hase was a longlist  of  sustainabilit y  topics  and  subtopics  and  associated  IROs for further analysis. The longlist was narrowed down to a shortlist of topics  with  identified  IROs  that  occur  or  could  potentially  occur. T his involved screening each topic on the longlist  with  internal  documentation  and  holding  worki ng  sessio n s w ith relevant internal stakeholders. The internal sources that were screened and leveraged  included  external  sustainability  topic  studies  from  reputable  third  parties,  Group  internal  policies,  strategy documents, credit exposure information, due  diligence  process  documentation,  an d  employee  and  client surveys. 2. Assessment of potential material impacts, risks and opportunities The  impacts,  risks  and  opportunities  identified  in  the  previou s  step  were  assessed  from  both  an  impact  and  a financial perspective using an in -house methodology bas ed on  the g uidelines of the ESRS. This  me thodology  involved assignin g numeric scores to each of the assessment criteria required by the ESRS and comb i ning these into  a total materiality score for both impact and financial materiality.  The severity of  the impact (scale, scope, and whether irremediable) and the  likelihood of the impact to occur was  asses sed on a scale of 0 to 5. For current negative impacts, materiality is based on severity, while for potential  negative impacts, it is based on the severity and likelihood of the impact. For positive impacts, materiality is based  on  the  scale  and  sco pe for  actual  i mpacts  and  the  scale,  scope  and  likelihoo d  for  p otential  impacts.  Financial  materiality was evaluated based on the magnitude and likelihood of o ccurrence and was assessed on a scale of  0 to 3. Individual numeric scores were calculated as shown in the table below. Scale Scope Remediability Likelihood Final score IMPACT Potential negative  impac t = (5) to 0 + (5) to 0 + (5) to 0 − (3) to 0 = (15) Highest materiality score of negative  impac ts Actual negative  impac t = (5) to 0 + (5) to 0 + (5) to 0 = Potential positive  impac t = 0 to 5 + 0 to 5 − 0 to 3 = 10 Highest materiality score of positive  impac ts Actual negative  impac t = 0 to 5 + 0 to 5 = Magnitude Likelihood Final score FINANCIAL Risk = (3) to 0 × 3 to 0 = (9)  Highest materiality score of risks Opportunity = 3 to 0 × 3 to 0 = 9  Highest materiality score of  opportunities The  scoring  process  was  conducted  by  inter nal  and  external  exp e rt s  and  validated  during  a  series  of  internal  workshops with cross-functional teams while using the outcomes of various engagement channels to support the  argumentati on. SUSTAINABILITY STATEMENT – ESRS 2 350 SUSTAINABILITY STATEMENT Annual Financial Report 2024 3. Determination of material sustainability matters Under  the  used  scoring  meth odology,  the  maximum  achievable  score  for  ne gative  impacts  was  (15),  for  positive  10  and  for  risks  (9)  and  opportunities  9.  MONETA’s Management Board agreed on the following materiality thresholds: HIGH MEDIUM LOW Actual negative impact ≤ (11) (9)-(10) ≥ (8) Potential negative impact Actual positive impact ≥ 9 7-8 ≤ 6 Potential positive impact Risk (9) (6)-(8) ≥ (5) Opportunity 9 6-8 ≤ 5 MONETA  considers  impacts,  risks  and  opportunities  asses sed only as “high” to be material. 4. Oversight and validation of materiality The  validatio n  of  the  double  materiality  assessment  took  place  in  two  steps.  First,  the  results  were  cross-checked  with  various  experts  and  with  those  who  participated  in  the  process.  The  results  were  then  validated  by  MONETA’s  Chief  Executive  Officer  and Management Board in order to ensure a th orough  overview and alignment with the Group’s strategy and  priorities.  Second,  an  external  review  with  advisors  was  carried  out,  which  incorporated  industrial  benchmarks.  Based  on  this  r eview,  the  Management  Board approved the final topics and the resulting list of material impacts, risks and opportunities. The  Group  has  a  separate  risk  assessment  approach  for non-sustainability-related risks,  such as credit risk,  that is however linked to sustainability risks. Because  of  these  correlatio ns ,  sustainability-related  risks  ar e  integrated into standard MONETA risk management.  1.8.1 Disclosure of topics assessed not to be material Based  on  the  assessment  described  in  section  1.8  Double  Materiality  Assessment,  MONETA  has  identified  the  topical standards that are not considered to be material.  The explanation can be found in the table below.  Standard Explanation E2 - Pollution While MONETA’s exposure to the agricultural sector does generate a certain amount of  greenhouse gases, these are covered by the Scope 3 within the E1 – Climate Change topical  standard. The IROs resulting fr om this s tandard have, ther efore, been considered not material  fol lowing t he final double materi ality assessment. E3 -  Water and marine resources MONETA does not hav e any material exposure towards water or marine resources or companies  handling them in any significant way. As a banking institution, its use of water resources is  negligible and use of marine resources non-exist ent. There are no IROs resulting from this topical  standard. E5 - Circula r economy While the resource use by some companies financed by MONETA may b e deeme d unsustainable,  the potential IROs stemming from this are covered by the E1 – Climate Change Mitigation topical  standard. There are no IRO’s tied to this particular standard for MONETA. S2 -  Workers in value chain MONETA is not a production or manufac turing company. Its products and services are largely  sustained by its own workforce. In addition, its suppliers are predominantly located in the Czech  Republic, where strict labour rules are enforced. There are no material IROs resulting from this  standard based on the double materiality assessment. S3 -  Affected communities While MONETA strives to support various non-profit organisations and local communities on a  continuous basis, which might generate potential impact or opport unities, the scope and scale  of such support does no t exceed the materiality threshold according to the double materiality  assessment. There are no identified materia l risks either. Once material matters were i dentified, the undertaking determined the information to be reported on the material  matters  (ESRS 1 paragraph 30). Disclosure requireme nts and data points that are linked to material sustainability  matters were  determined using informatio n  collected  as  p art of the materiality assessme nt  an d  data collected  for the purpose of ESRS reporting, and matters that were deemed not applicabl e to the industry or otherwise not  relevant are not reporte d . SUSTAINABILITY STATEMENT – ESRS 2 351 SUSTAINABILITY STATEMENT Annual Financial Report 2024 1.9 MATERIAL IMPACTS, RISKS AND OPPORTUNITIES The following tables list the sustainability related IROs that MONETA has identified and assessed as material as  a result of the  double materiali ty assessment process. MONETA’s  mater ial  topics include: E1 –  Climate change,  E4 – Biodiversity, S1 – Own workforce, S4 – Consumers and End-users and G1 – B usiness conduct. Disclosure of  anticipated financial effects of material risks and opportunities on financial position, financial performance and  cash flows over short-, medium- and long-term was left out due to the use of phase- i n period.  E1 – Climate change Own operations/ Value chain Description Response Climate change mitigation GHG emissions (Scope 1, 2 and 3) Negative actual impact Ow n operations Activities associated with everyday operations such as  running offices, retail branches, travel and communing  generate GHG emissions, which in turn contribute to  climate change.  Implementation of energy  efficiency measures, purchase  of certificates, and purchase of  electric vehicles.  Downstream Activities associated with the investments, loan s,  and underwriting activities indirectly contribute to  the generation of GHG emissions, so called financed  emissions, which in turn contribute to climate change. Quantifying financed emissions  and using them as a proxy for  climate risk transition plan. Time horizons Medium and long-term E4 – Biodiversity and ecosystems Own operations/ Value chain Description Response Direct impact drivers of biodiversity loss Investments in land modifying activity - agriculture Negative actual impact Downstream Activities associated with the investments, loan s, and  underwriting activiti es to companies operating in the  agriculture sector that are engaged in intense farming  (usage of fertilisers, pesticides, mechani satio n and  expansion of agriculture to previously wildland), indirectly contribute to biodiver sity loss. Quantifying impacts and using  them as a basis for mitigation  plans. Compliance with regulatory  disclosure requirement s and  relationship management.  Time horizons Short, medium and long-term S1 – Own workforce Own operations/ Value chain Description Response Working conditions Flexible working hours, Additional time off and Parental support programmes Actual positive impact Own operations Flexible working hours, the possibility to work remotely,  and/or take addit ional time-off, improve emp loyee  adaptability and promote employee loyalty. It al so  potentially results in less stress and good mental health.  Support programmes for working parents and informal  carers.  Commitment to continue to  develop the current strategy. Time horizons Short, medium and long-term SUSTAINABILITY STATEMENT – ESRS 2 352 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Own operations/ Value chain Description Response Equal treatment and opportunities for all Training and skill development Actual positive impact Own operations Investing in training and d evelopment programmes  for employees can boost their personal and car eer  development, increase their income, improve their  socio-economic position, th eir overall job satisfaction and  their sense of professional fulfilment. Commitment to continue to  develop on c urrent strategy. Time horizons Short, medium and long-term Own operations/ Value chain Description Response Equal treatment and opportunities for all Gender equality and equal pay for work of equal value Actual positive impact Own operations Upholding policies th at promote gender equality and  diversity such as equal pay, maternity and paternity  leave enable employees the ability to live free from  gender and other inequalities, experience access to equal  opportunities and re sponsibilities, and t o earn equitable  pay regardless of gender. Commitment to continue to  develop the current strategy. Time horizons Short, medium and long-term S4 – Consumers and End-users Own operations/ Value chain Description Response Information-related impacts for consumers and/or end-users Access to quality information Actual positive impact Own operations,  downstream Providing clear and transparent information about  offered products enables existing and potential clients to  make informed choices. Continuous implementation of  robust policies and procedures to  ensure transparency.  Time horizons Short, medium and long-term Own operations/ Value chain Description Response Personal safety of consumers and end-users Cybersecurity (Entity-specific subtopic) Negative potential impact Ow n operations,  downstream Investing in training and development programmes  for employees can boost their personal and car eer  development, increase their income, improve their socio- economic position, their overall job satisfaction and their  sense of professional fulfil ment. . Continuous implementation of  robust cybersecurity and data  protection measures, along with  awareness campaigns. Time horizons Short, medium and long-term Own operations/ Value chain Description Response Personal safety of consumers and end-users Cybersecurity (Entity-specific subtopic) Risk Own operations Despite cyber-protection measures, cybersecurity  remains a risk for banks due to the cons tantly evolving  nature of cyber threats, which can outpace security  updates and exploit even small vulnerabilities in  systems, increasing the frequency and sophistication  of cyberattacks may increase the likelihood of security  breaches, which may lead to reputation damag e and  fines. Continuous implementation of  robust cybersecurity and data  protection practices. Time horizons Short, medium and long-term SUSTAINABILITY STATEMENT – ESRS 2 353 SUSTAINABILITY STATEMENT Annual Financial Report 2024 G1 – Business conduct Own operations/ Value chain Description Response Protection of whistleblowers Protection of whistleblowers Potential negative impact Ow n operations,  upstream,  downstream The occurrence of corruption and bribery event s,  notorious corporate c ulture and insufficient  whistleblower protection may have significant negative  effects on society, economies, and individuals, inc luding  clients and employees as failure to implement/prevent  can erode trust in institutions and undermine the rule o f  law. Continuous implementation of  robust policies and procedures to  ensure compliance. Time horizons Short, medium and long-term Own operations/ Value chain Description Response Corruption and bribery Prevention and detection including training Potential negative impact Ow n operations,  upstream,  downstream The occurrence of corruption and bribery event s,  notorious corporate c ulture and insufficient  whistleblower protection may have significant negative  effects on society, economies, and individuals, inc luding  clients and employees as failure to implement/prevent  can erode trust in institutions and undermine the rule o f  law. Continuous implementation of  robust policies and procedures to  ensure compliance. Time horizons Short, medium and long-term Own operations/ Value chain Description Response Corporate culture Systemic risk management Opportunity Own operations Effective management of systemic risks is crucial  to maintaining the Group's stability, resilienc e, and  operational con tinuity, impacting the entire organisation.  Considering the complexity of financial markets,  proact ive systemic risk management is both necessary  and likely to have significant effec ts. Managing systemic risks is  essential t o the Group's stability,  resilience and operations,  affecting the entire organisation.  Given the complexity of financial  markets, active systemic ris k  management is highly likely to b e  necessary and impactful. Time horizons Short, medium and long-term Own operations/ Value chain Description Response Corporate culture ESG criteria in operations and value chain Potential negative impact Ow n operations,  downstream Incorporatin g ESG factors into credit analysis and  lending decisions not only benefits banks by enhancing  risk management and compliance but also contributes  to broader societal goals of sustainability and so cial  responsibility. Commitment to continue to build  on the current stra tegy. Time horizons Short, medium and long-term SUSTAINABILITY STATEMENT – ESRS 2 354 SUSTAINABILITY STATEMENT Annual Financial Report 2024 2. DRIVING POSITIVE CHANGE FOR THE ENVIRONMENT MONETA’s  environmental  section  covers  topic al  stand ards E1  –  Climate  change  and  E4  –  Biodiversity  as  well  as  EU  Taxonomy.  The  Group’s  environmental  activities  started  in  2016  with  the  calculation  of  its  own carbon footpri nt. In 2021, MONETA made its first  qualitative disclosure o f EU Taxonomy which has been  growing in scope and data accuracy ever since.  2.1 TAXONOMY-ALIGNED KPIS The  EU  Taxonomy  is  a  clas sification  system  that  provides  companies,  investors  and  legislators  with  criteria for determining whether an economic ac tivity  can  be  considered  environmentally  sustainable.  Its  main  objectives  are  to  increase  inves tor  confidence,  protect  p rivate  investors  from  greenwashing,  help  companies  becom e  more  climate-friendly,  reduce  market  fragmentation,  redirect  investments  towar ds  environmentally  sustainable  activities,  and  thus  he lp  the EU implement the European Green Deal. Regulation  (EU)  2020/852,  as  specified  in  Annexes  V  and  XI  of  Commission  Delegated  Regulation  (EU)  2021/2178 (the EU Taxonomy Regulation), establishes  the  basis  for  the  EU  Taxon omy  by  se tting  out  four  conditions  that  economic  activity  must  meet  to  qualify  as environmentally sustainable. An economic  activity  therefo re  qualifies  as  enviro nmentally  sustainable if it: •  Contributes  substantially  to  one  or  m ore  environmental objectives (see below); •  Does not significantly harm any of the environmental  objectives (see be low); •  Is  carried  out  in  compliance  with  minimum  safeguards; and •  Complies with technical screening criteria.  The  EU  Taxon omy  Regulation  sets  out  the  si x  environmental objectives listed below: •  Climate change mitigation; •  Climate change adaptation; •  Sustainable use and protection of water and marine  resources; •  Transition to a circular ec onomy; •  Pollution prevention and control; and •  Protection  an d  restoration  of  biodiversity  and  ecosystems. The  European  Commission  estab lishes  an  up-to-date  list of environm e ntally sustainable econo mic activities.  Through  delegated  acts,  it  defines  the  technical  screening  cr iteria  for  each  environmental  objective.  The first delegated act on sustainable activities for the  objectives  of  Climate  chan ge  adaptation  and Climate  change  mitigation  was  published  on  9  December  2021  and  has  been  appli cable  since  January  2022.  On  9  March  2022,  the  C ommission  adopted  the  Compl ementary Climate Delegated Act, which includ es  specific nuclear and gas energy activities in the list of  economic activities covered by the EU Taxonomy. The  set of technical screening criteria for all environmental  objectives  was  complemented  by  the  adoption  of  the  Environmental  Delegated  Act  on  27  June  2023,  which  defines  criteria  for  economic  activities  that  significantly  contribute  to  o ne  or  more  of  the  four  remaining  envir onmental  objectives  that  are  not  related to climate. T he Environmental Delegated Act is  applicable from January 2024. 2.1.1 Disclosure requirements for the EU Taxonomy Article 8 o f the EU Taxonomy Regulation is supplemented  by  Commission  Delegated  Regulation  (EU)  2021/2178  of  6  July  2021  (Disclosures  Delegated  Act)  that  specifies  the  content, methodology and  presentati on  of  information  to  be  discl osed  by  financial  and  non -financial undertakings concerning the proportion  of  environmentally  sustainable ec onomic activities  in  their business, investments or lending activities. In  accordance  with  the  aforementioned  Article  8,  each unde rtaking subject to the obligation to disclose  non -financial  information  under  the  Non-financial  Reporting  Directive  (“NFRD”)  must  include  in  its  non -financial  reporting  information  on  how  and  to  what extent the undertaking’s activities are linked to  economic  activities  that  qualify  as  environmentall y  sustainable according to the EU Taxonomy Regulation. As  a  result,  MONETA  is  obli ged  to  comply  with  the  disclosure  requirements  set  o ut  in  the  EU  Taxonomy  Regulation.  The  Green  Asset  Ratio  (“GAR”)  and  the  corresponding  Key  Performance  Indicators  (“KPIs”)  established  under  the  Delegated  Act  on  Disclosure  of  Information  are  published  annually  in  the  Group’s  consolidated  Sustainability  Statement  –  Chapter  13  of  the  Annual  Financial  Report.  The  first  reporting period, which included GAR and KPIs covers  the year 2023. As of 31 December 2024, CZ K 137 billion, i.e. 44.2% of  the  total  inclu ded  assets  of  the  Group  are  classified  as  Taxonomy-eligible,  of  which  CZK  11  million  are  Taxonomy-aligned. With  the  continuous  enhancement  of  the  data  collection  processes  and  a  strategic  focus  on  green  activities,  MONETA  is  committed  to  increasing  the  transparency  and  accuracy  of  taxonomy  disclosures.  This p roactive approach will ensure that undertakings  finan ced  by  MONETA  are  mo re  comprehensively  SUSTAINABILITY STATEMENT – EU TAXONOMY 355 SUSTAINABILITY STATEMENT Annual Financial Report 2024 and  accurately  reported,  reflecting  its  dedication  to  sustainability and transpar e ncy. The  calculati ons  were  car ried  out  to  the  best  of  MONETA’s  knowledge  and  in  accordance  with  regulatory  requirem e nts.  The  Group  is  currently  working on developing new and enhancing established  client engagement processe s to support clients in their  transition  and  incorporate  taxonomy  considerations  into  client  disc ussions  and  product  design  where  feasible. The  data  disclosed  in  the  tables  in  this  chapter  are  presented  for  the  entire  consolidated  Group  as  of  31  December  2024  an d  include  the  data  of  the  parent  company  MONETA  Money  Bank,  a.s.,  and  its  subsidiaries  and  associates  listed  in  the  financial  information se ction of the Annual Financial Repor t. As of 31 December 2023, MONETA had no exposures  that could be qualified as aligned with the EU Taxon omy,  i.e.  that  would  meet  all  the  eligibility  criteria  while  meeting the requi red alignment criteria. During  2024,  MONETA  has  expanded  the  scope  of  its  sustainability  data  collection,  especially  in  the  household  finance  segment.  This  made  it  possible  to  assess  Taxonomy  alignment  for  retail  credit  consumption loans for cars.  The  volume  of  exposures  e ligible  under  the  EU  Taxonomy consists of three main groups: (a)  Exposures to households, consumer car loans,  mortgage loans, (b) Commercial exposures to non-financial  undertakings, and (c)  Exposures to financial undertakings. Of  the  ex posures to  households, mortgage loans  and  consumer car loans are reported as Taxonomy-eligib le  under  the  objective  Climate Change  Mitigation. With  regards  to  mortgage  loans,  no  exposures  qualify  as  Taxonomy-eligible due to data availability limitations.  While MONETA co llects building en e rgy  performance  certificates  (“PENB”)  from  clients  on  a  voluntary  basis, their availability in the Czech market is limited.  To  assess  Taxonomy  alignment,  other  essential  information is still missing, particularly the date of the  building permit application.  Consumer car loans are reported as a Taxonomy-eligible  activity  if  the  lo an  agreement  date  is  from  1  Januar y  2022.  Under  the  Significant  contribution  to  climate  change  mitigation  objective,  financed  M1  and  N1  fully  electric  and  hybrid  vehicles  that  meet  CO2  emission  3   Source: ht tps://eprel.ec.europa.eu/screen/product/tyres. 4   Source: http://www.rvda.cz/en. limits  were  assessed.  Hy brid-powered  cars  do  not  meet  the  zero-emission  criterion  and  are  therefore  reported  as  a  “transitional  activity”.  An  integral  part  of  the  assessment  was  the  evaluation  of  the  “do  no  significant harm” principle for the Tr ansition to circular  economy  and  Pollution  prevention  and  control.  Data  on  emissions,  the  most  rece nt  applicable  stage  of  the  emission  type-approval  status  and  vehicl e  noise  levels  were  obtain ed  in dividually  for  each  vehicle  from  the  Vehicle Register of th e Ministry of Transport. Information  on  reusability  and  recyclability  was  sourced  from  the  sustainability repo rt s of i ndividual vehicle manufacturers.  As data on the specific tyres of the financed vehicles are  not available, MONETA assumed that for a maximum of  four  years  after  entry  into  service,  the  tyres  supplied  by  the  vehicle  manufacturer  are  used.  Information  on  the  tyres  used  in  the  form  of  a  r ange  corresponding  to  ene rgy  labels  (see  EPREL 3 )  w as  requ ested  directly  from the importers and dealers of the most commonly  represented brand s. Only vehicles meeting all the criteria  were assessed as Taxonomy-aligned. Commer cial  exposures  include  ex posures  to  non -financial  undertakin gs  that  meet  EU  Taxon omy  criteria  and  are  subject  to  the  NFRD,  i.e.  are  public  interest  entities  or  fulfil  the  Large  Company  criteria  accor ding  to  CSRD  (two  out  of  three  –  have  at  least  250  full-time  employees,  Euro  40  million  turnover,  Euro 25 million  total assets). To assess these  criteria,  MONETA  has  us ed  up-to-date  internal  information  on the number of full-time employees and country of  domicile  directly from  its  commercial  clients  and the  latest available list of p ublic interest entities published  by the Public Audit Oversight Board 4 . Group’s  commercial  lending  is  primarily  focused  on  the  SME  segment,  which  has  very  few  no n-financial  undertakings  subject  to  CSRD  (or  NFRD)  reporting  requirements.  As  of  the  date  of  this  re port,  sustainability  reports  for  2024  are  not  yet  available;  therefore,  MONETA  re lies  on  reports  published  by  client s  for  the  year  2023.  As  of  31  December  2024,  there  are  only  three  non-financial  undertakings  in  the  portfolio  that  are  public  interest  entities.  Of  these,  only  one  group  active  in  defen ce,  automotive  and  rail  industries  is  subject  to  NFRD  repo rting  on  a consolidated basis. Please note that the issuer has not  published the split of the use of the funds by turnover  or CAPEX; hence MONETA reports the exposures under  the GAR KPI stock based on turnover and CAPEX in the  same  percentages  (see  the tables  in  the  Appendi x  of  this Sustainability Statement). During  2024,  MONETA  purchas ed  several  debt  securities  of  f inancial  institutions.  Of  these,  only  one  bank  security  is  an  environmentally  sustainable  bond  SUSTAINABILITY STATEMENT – EU TAXONOMY 356 SUSTAINABILITY STATEMENT Annual Financial Report 2024 issued in compliance with EU legislation. The use of the  proceeds of this security is invested in Taxonomy-eligible  economic activities.  This security  is  therefor e  disclosed  as  Taxonomy-eligi ble.  H owever,  as  the  issuer  does  not  guarantee  Taxo nomy  alignment  and  MONETA  does  not  have  sufficient  information  to  make  a  thorough  asses sment, this exposure is not disclosed as Taxonomy- aligned. For the other securities, the use of proceeds is  unknown; therefore, MONETA has disclosed this ex posure  as both Taxon omy-eligible and Taxonomy-aligned, based  on the KPIs if publish ed by the issuers for 2023.  MONETA  does  not  have  any  real  estate  collaterals  obtained  by  t aking  posse ssion  in  exchange  for  the  cancellation of debts.  As at year-end 2024, the Group’s trading portfolio does  not contain any Taxonomy-eligible or Taxonomy-aligned  economic activities. Since the trading portfolio is mainly  used for risk management of customers’ books through  deriv ative transactions  (hedging),  there is  only  limited  room for in corporation o f Taxonomy-eligible activities.  All  other  expo sur es  are  ei th e r  exclud ed  from  the  numerator  because  they  do  not  meet  the  aforementione d  criteria,  are  not  GAR  assets  or  are  off-balance sheet exposures. The  assessment  of  o ff-balanc e  sheet  financial  guarantee  exposures  was  performed  together  with  other  commercial  exposures.  As  of  31  December  2024, MONETA Group does not have any off-balance  sheet  exposures  that  could  be  cl assified  as  Taxonomy-eligible.  MONETA  does  not  provide  asset  management ser vices.  Compared  to  2023,  MONETA  has  i mplemented  two  methodological  changes  in  the  preparation  of  the  disclosed templates.  The first change relates to the reporting of Flow. The new  exposures  in  Template  4  for  2023  have  been  included  in  the  calculation  at  their  contractual  amount,  i.e.  the  framework amount.  For 2024, the Flow is reported as the  gross carrying amount of instruments as of 31 December  2024 for which the contract was signed during 2024. The  second  change is  the  determination  of  the gross  carrying  amount  of  tangible  an d  intangible  assets  in  Template  1,  where  the  amount  o f  depreciation/ amortisation  has be e n  included in  the gross carrying  amount for 2024. Similarly, this change has also been  reflected in the figures for the year 2023. The foll owing table shows the Template for the KPIs of credit institutions (Annex VI) 0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation Main KPI Total environmentally sustainable assets KPI * KPI % coverage (over total assets) *** % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) Green asset ratio (GAR) stock 11,094,918.11  0.005% 0.002% 61% 18% 39% Additional KPIs Total environmentally sustainable activities KPI KPI % coverage (over total assets) % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) GAR (flow) 10,134,981.80  0.005% 0.002% 3% N/A N/A Trading book N/A N/A N/A       Financial guarantees 0 0 0       Assets under management N/A N/A N/A       Fees and commissions income** N/A N/A N/A       *   For credit instit utions that do not meet the conditions of Article 94(1) of the CRR or the conditions set ou t in Article 325a(1) of the CRR. **   Fees and commissions income from servi ces other than lending and AuM.     Institutions shall disclose forward-looking information for these KPIs, including information in terms of target s, together with relevant explanations on the  methodology applied. ***  % of assets covered by the KPI over banks´ total assets.   Based on the Turnover KPI of the counterparty. *  Base d on the CapEx KPI of th e counterparty, except fo r lending activities where for general lending Turnover KPI is used. All mandatory tables can be found in the Appendix of the Sustainability Statement.  SUSTAINABILITY STATEMENT – EU TAXONOMY 357 SUSTAINABILITY STATEMENT Annual Financial Report 2024 2.2 CLIMATE CHANGE 2.2.1 Integration of sustainability-related performance into remuneration The  general  rules  and  principles  regarding  the  remuneration  of  members  of  the  Management  Board  and  th e  Supervisory  Board  are  outlined  in  the  Remuneration  Policy.  The  implementation  of  the  ESG  Strategy,  which  includes  achieving  a  car bon  reduction  target  of  90%  within  Scope  1  and  2  by  2026 compare d  to the  2016 baseline, is linked to  the  variable remuneration of the Management Board. This  is reflected in qualitative KPIs, which account for 30%  of  the  overall  variable  bonus.  The  detailed  structure  of  targets  and  awarded  remuneration  is  included  in  the Remuneration Report, which is update d annually.  These documents are available on MONETA’s investor  website 5 .  2.2.2 Material sustainability-related impacts and risks MONETA is a mid-sized financial institution operating within the Czech Republic, offering financing solutions  to  ho useholds  and  business e s.  In  its  commercial  segment,  MONETA  has  traditionally  focused  on  providing  financial  support  to  the  agriculture  sector,  which constitutes the largest p ortion of its portfolio. Climate  change  is  one  of  the  greatest  challenges  of  today’s  society,  and  MONETA  recognises  its  role  in  addressing  it.  MONETA  is  committed  to  actively  reducin g  carbon  emissions  from  its  operations  and  mitigating climate change through it s core activities of  providing lending and investment services.  MONETA used the 2024 double materiality assessment  to identify its  material topics, further information  on  which can be found in section 1.8 Double materiality  asses sment. Following that MONETA determined that its  biggest impact on climate change stems from financing  activities  indirectly  contributing  to  the  generation  of  GHG  emission s  in  Scopes  3,  so-called  f inanced  emissions, and own operations that contribute directly  and indirectly to the generation of GHG emissions across Scopes 1, 2 and 3. MONETA’s emissions associated wi th  its commercial loan po rtfolio con stitute 96.3% of total  emissions.  MONETA  defines  climate-related  risk  as  a  ri sk   of  damage to the reputation or financial situation of the  Group (including the ability to utilise collateral or sell  ownership stakes) or cli e nt  (including adverse impact  on the client’s assets or the client’s ability to continue  its  business  activiti e s)  due  to  the  adverse  impact  of  5   Source: https://investor s.moneta.cz/. 6   Source: https://carbonaccountingfinancials.com/en/. client’s business activities on the environment and vice versa (physical and transition risk). C urrently there are  no material risks or opportunities identified.  Due to MONETA’s business model, no material risks have  been identified in conn ection with its upstream value  chain, including suppliers, as for a financial insti tution  this  does  not  represe nt  material  dependency.  The  same applies to the assets needed to operate such as  head office or bran ches, as these are leased, and any  potential impact would be absor bed without significant  additional or unexpected costs.  With  the  regulatory  changes  highlighting  the  importance of climate change, MONETA has aligned its  ES G Strategy with its overall business strategy and risk  management. MONETA’s approach To assess its impacts on climate, MONETA leveraged its  carbon footprint calculations. Th e most recent carbon  footprint  analysis  from  2024  indicates that emissions  associated  with  MONETA’s  financing  activiti e s  constitute the  majority of the Group’s overall carbon  footprint.  MONE TA  s tarted  analysing  and  calculating  the  environmental  impact  of  its  financing  activities  -  specificall y  the  commercial  loan  po rtfolio  -  in  2021  using the basic pr i nciples of PCAF methodology 6 .  MONETA  periodically  reassesses  the  significance  of  climate-related  risks  as  part  of  the  assessment  of  ES G risks in traditional risk categories, such as market  risk,  liquidity  risk,  operational  risk  and  credit  risk.  The  assessment  of  significan ce  of  climate-related  risk  factors  in  mar ket  and  li quidity  risk  is  performed  annually  and  discussed  with  the  Sustainability  Committee.  The  assessment  of  climate-related  risk  factors  in  operational  risk  is  performed  through  the  annual  Risk  and  Control  Sel f-Asses sment  process,  results  of  which  ar e  discussed with  and  approved  by  the Operational Risk Committee. As  part  of  its  credit  risk  management  strategy,  MONETA consistently monitors its exposure and credit  concentr ation  risk.  Most  of  the  income  is  generated  within  the  C zech  Republic,  thus  limiting  the  climate  risk  analy si s  to  this  region.  A  significant  portion  of  MONETA’s  portfoli o  comprises  re tail  loans,  primarily  mortgages,  where  the  assessment  of  climate-related  risks, such as flooding, is an integral component of the  stand ard risk management procedures. Detail ed  breakdown  of  the  gross  carrying  amount  by  loan  type  and  stages  can  be  found  in  the  tabl e  Breakdown of allowances and provisions a ccording to  SUSTAINABILITY STATEMENT – E1 358 SUSTAINABILITY STATEMENT Annual Financial Report 2024 loan  type  and  stages  in  the  Annual  Financ ial  Report  2024 in Notes to Consolidated Financial Statements. In 2022, the Group began analytical work to quantify  the  impact  of  climate  change  risk  on  its  portfolio.  There are plans to further develop portfolio resilience  and c onduct a more in-depth analysis of environmental  factors in line with prude ntial regulation requirements.  This  includes  utilising  scenario  analysis  an d  stress  testing o f environmental ri sks affecting its c ommercial  loan  portfolio  by  2026.  The  scenario  analysis  and  corresponding stress tests will be based on regulatory  requirements  and  will  consist  of  quanti fication  of  impacts  of  negative  climate  s cenarios  on  short-,  medium- an d long-term horizons. To  assess  inherent  se ctor-sp ecific  climate  risks  within  its  commercial  loans portfolio, MONETA  segments the  loan portfolio according to different NACE sectors. This  segmentation helps de termine the extent to which client s  in particular sectors are exposed to climate risks  due to  their  operating  environment.  MONETA  continuousl y  monitors individual financed ES G risk indicators for both  transition and physical risks, integrating these elements  into MONETA’s risk appetite framework. MONETA’s  exp osure  is  primarily  in  the  agriculture  and  real  estate  sectors,  wi th  limited  e xposure  to  high-impact  c li mate  sectors  such  as  oil  and  gas.  Consequently,  the  credit  risk  analysis  focuses  more  on  physical  climate  risk   rather  than  transition  risks.  The Group  regularly monitors potential impacts from  climate  changes  that  could  result  in  th e  impairment  of non-financial assets. Currently, no such impairment  indicators have been identified. The  detailed  structure  of  the  MONETA’s  commercial  credit portfolio by economic sectors can be found in the  Annual Financial Report 2024 in Notes to Consoli d ate d  Financial Statements. 2.2.3 Transition plan for climate change mitigation MONETA is considering developi ng its Transition Plan  for C li mate Change Mitigation. This plan wi ll build on  MONETA’s  established  targets  and  initiatives,  which  can be found in section 2.2.6 Targets related to climate change mitigation and will be approved in 2026. 2.2.4 Policies For  MONETA,  climate  change  mitigation  is  primarily  connected with the reduction of car bon footprint. This  is achieved through managing its Scope 1 and 2 in own  operations as well as transparent rep orting and analysis  of its financed portfolio in Scope 3. However, MONETA  also perceives the significance of climate risks. MONETA  is  integrating  climate  risk  within  the  Risk  Appetite  Statement,  Book  of  Limits  and  relevant  internal policies. Its approach to ES G ri sks is active and  proportional to the size of its exposures within the loan  port folio. Th e Group implemented an ESG scorecard (as  part of the Commercial Individual Managed rating tool)  within its loan  approval process to ass e ss the ESG risk  level  of  selected  large  corporate counter parties.  The  ES G  perspective  is  reflected  within  the  Group’s  loan  approval  process,  in  the  client’s  cre dit  rating  and  subsequently  in  product  pricing,  ECL,  and  within  the  monitoring  process  within  the  Group.  MONETA  has  defined  a  list  of  sectors  that  can  be  served  only  in  exceptional cases and un der the condition of ap proval  by  th e  Credit Committee  (a  top-level cr edit approval  authority), which is regularly monitored and assessed.  The  detailed  list  of  MONETA’s  polic ies  that  cover  risk  management,  procurement  processes,  carbon  footprint  calculation,  metho dolog y  and  management  of climate-related aspects is included in the Appen dix  of this Sustainability Statement. 2.2.5 Actions and resources The activities in the environment area, whose primary  objective is to manage and decrease MONETA’s carbon  footprint  given  by  Scope  1,  Scope  2,  and  Scope  3  Greenhouse Gas Emissions (“GHG”), including financed  emissions  and  MONETA’s  future  development,  are  descr i bed  in  the  Group’s  ESG  Strategy,  which  was  approved by the Management Board of MONETA Money  Bank i n 2021 and updated in 2024. It introduces the main  principles and  M ONETA’s  app roach to  management of  climate-related  topics  and  sets  MONETA’s  objectives  that are to be achieved in the following years in order to  align MONETA’s a ctivities with wider sustainability goals.  The activities focus on renewable energy, management  of  overall  energy  consumption,  electromobility,  and  facilitation of sustainable finance. MONETA’s  climate  strategy  aims  to  achieve  carbon  footprint reduction of 90% in Scope 1 and 2 by 2026  compared to 2016. In 2024, MONETA’s carbon footp rint  reduction  was  88.8%.  The  actions  defined  below  contribute directly to achieving this commitment and  further developing i ts environmental responsibility. The  ability to implement the actions does not depend on  the availability and allocation of additional resources. Management of energy consumption One  of  the  sources  of  indirect  emissions  is  purchased  district  heating,  which  is  used  to  heat  MONETA’s  buildin gs.  Sources  for  heat  production  are  fossil  fuels  (coal,  fuel  oils,  natural  gas),  biomass,  municipal  waste  and  others,  including  their  combinations.  MONETA  is  aiming  to  decrease  the  overall  consumption  of  energy  by  2030.  In  line  with  SUSTAINABILITY STATEMENT – E1 359 SUSTAINABILITY STATEMENT Annual Financial Report 2024 the Group’s strategy of being among the Czech digital  banking leaders, it is optimising its services, including  its  branch network, generating  energy  savings in  the  process.  In branches renovated over the past six years, the Gr oup  has installed air handling units with heat recovery and  low-energy air con ditioning, reducing reliance on  g as  and  district  heating.  Since  2021,  MONETA  has  been  adopting  alternative  heating  technologies,  such  as  heat  p umps  or  electric  boilers  with  air  conditioning,  to further decrease MONETA’s carbon footprint where  regulations and technology permit it. Major  progress  in  energy  efficiency  was  achieved  with  the  2018  renovation  of  MONETA’s  Prague  headquarters,  which  now  features  a  low-energy  radiant system for heating and cooling, complemented  by  au tomatic  night  ventilation.  The  building  is  f itted  with room senso rs for temperatur e and lighting control  based on o ccupancy and automatic  b linds to prevent  overheating,  enhancing  the  work  environment  and  cutting energy use. Renewable energy Another  source  of  indirect  emissions  from  energy  is  electricity consumed by MO NETA. It is used to ensure  the  operation  of  all  b ranches  and  headqu arters  (lighting,  IT  e quipment,  heating,  charging  electric  cars,  air  conditioning,  etc.).  The  total  consumption  of  electricity  from  various  suppliers  was  8,602  MWh  in  2024.  In  2024,  MONETA  purchased  certificates  of  origin  for  its electricity needs from ČEZ ESCO, a.s  for  10,970 MWh. On top of that 253 MWh of consumption  was  guaranteed  gree n  electric  energy  from  public  electric  vehicle  charging  networks.  Since  2021  the  Group has been able to cover all its electricity needs  from renewab le sources.  Energy efficiency measures Since  2018,  the  Group’s  headquarters  and  branches  have also been modernised to incorporate technologies  that  focus  on  minimising  environmental  impact  and  reducin g electricity usage. For instance, MONETA has  made extensive use of L ED lighting and en e rgy-efficient  electrical appliances. To  further  reduce  energy  consumption  and  ther eby  lower  MONETA’s  carbon  foo tprint,  the  Group  has  implemented  online  energy  monitoring  systems  at  certain  branches  at  the  end  of  2022.  These  pilot  installations  serve  to  track  and  analyse  energy  usage  at  the se  branches,  helping  MONETA  detect  the  most  energy-efficient  technologies.  The  energy  consumption  is  reviewed  nearly  every  day,  allowing  MONETA to manage its consumption effectively within  the  branch  network.  Another  pilot  project,  which  involved the installation of photovoltai c panels at one  of the branc hes, allows MONETA to assess the extent  to which such a technological solution can contr i bute  to further reducing the carbon footprint. Electromobility The  most  significant  source  of  MONETA’s  direct  emissions  was  the  consumptio n  of  motor  fuels  (diesel,  gasoline)  in  company  vehicles.    Aligned  with  MONETA’s  commitm e nt  to  lowering  its  carbon  emissions, the Group is steadily decreasing the number  of  company  cars.  In  2024,  MONETA  operated  196  company vehicles, which is a reduction of 4 compared  to the previous year. The Group plans to maintain this reduction trend in ali gnment with the ESG Strategy for  the upcomin g years.  Increasing  the  share  of  electric  cars  in  its  fleet  is  another  lever  to  reduce  carbon  footprint.  Currently  84%  of  the  Group ’s  co rporate  fleet  is  powered  by  electricity and the plan is to maintain at least 80% until  2030. Between 2016 and 2024 the initiative resulted in  1,996 tCO 2 e savings. MONETA’s  employees  drove  m ore  than  3.5  million  kilometres  with  electric  cars  in  2024,  saving  483 tCO 2 e. Across MONETA’s 67 branches and at both  headquarters,  employees  can  charge  electric  cars  at  one of the 18 8 charging stations. MONETA’s financed carbon footprint MONETA’s  greenhouse  gas  emissions  are  dominated  by  emissions  associated  with  the  commercial  loan  port folio,  residential  mortgages  and  retail  car  lo ans.  Decarbonisation  of  the  Group’s  loans  portfolio  and  client  assets  portfolio  will  be  a  key  compon e nt  of  MONETA’s transition towards a low-carbon ec onomy.  The  Group  is  working  on  increasing  the  accuracy  of  the  measurement  of the  environmental  impact of its  finan cing  activities,  specifically  its  comm e rcial  loan  port folio, residential mortgages and retail car loans. As  a result, the Group should be able to focus specifically  on reducing the negative impact of its carbon footprint  in  this  category  (S3.15  Investments)  in  the  future.  The  first  part  of this  analysis  took  place in  2022 and  continued through 2023 and 2024. Currently, MONETA  uses data from the financial statements of its clients and their NACE codes to quantify the greenhouse emissions  associated with its commercial loan portfolio. Sustainable financing MONETA is dedicated  to  embedding ESG  criteria into  its  financing  and  investment  practices  to  support  long-term sustainable financing. MONETA offers clients the opportunity to inves t in investment products with  SUSTAINABILITY STATEMENT – E1 360 SUSTAINABILITY STATEMENT Annual Financial Report 2024 a focus on equities and bonds incorporating ESG criteria.  The number of investment products in MONETA’s offer that meet ESG criteria is constantly growing: at the end of 2024, the number of such investment products was  27 out  of  a total  offer of  40 investment  products.  In  2024, MONETA started selling one more fund  meeting  the  Sustainable  Finance  Disclosures  Regulation  (“SFDR”) Article 8 criteria. In 2024, MONETA’s clients invested CZK 14.4 billi on in  ES G. This represents more than 60% of production into  investment products. This  table  shows  distribution  of  investme nt  products  by SFDR articles.  Article Share of new volumes (%) No. of investment products Article 8 60.6 23 Article 9 0.4 4 Non ESG Article 6  39.0 13 Total 100.0 40 The  European  Investment  Bank  (“EIB”)  has  granted  a  EUR  100  million  (CZK  2.5  billion)  loan  to  MONETA  in 2024 to support Czech businesses with up to 3,000  employees,  focusing  on  enviro nmentally  sustainable  and  competitive  projects.  At  least  12%  of  the  loan  is  earmarked  for  climate-positive  initiatives,  w ith  MONETA  committing  to  significantly  increase  this  funding for sustainable business ventures. The lo an will  be  offered through special  credit products,  including  support  for  renewable  ene rgy,  public  transport,  and  infrastructure  projects  aime d  at  improving  environmental sustainability and energy efficiency. MONETA  finances  renewable  energy  sources.  Since  2022,  the  Group  has  expanded  its  financing  from  biogas  st ations—131  funded  since  2010  with  a  total  value exceeding CZK 7 billion—to include p hotovoltaic  panels,  focu sing  on  rooftop  installations  for  clients  aiming to cut their energy use. In April 2023, MONETA introduced the Solární Expres  půjčka  (Solar  Express  Loan)  to  its  retail  c lients,  a  special-purpose  loan  intended  for  advantageous  finan cing  of  inves tments  in  real  estate,  leading  to  energy  savings  or  in  renewable  energy  source s.  This  loan is exclusively for ‘green’ projects, as defined by the  state subsidy programme Nová zelená úsporám (New  green for savings), which is an EU-funded programme. The loan offers a favourable, guaranteed interest rate,  with  amo unts  of  up  to  CZK  1.5  million  and  terms  of  up to 10 years. Borrowers have a year to validate the  loan’s purpose. Since its inception, over CZK 52 millio n  in loans have been is sued. Through Green Express Business Loan, entrepreneurs and  small  businesse s  can  access  loans  up  to  CZK  2.5  million  for  ene rgy-efficient  pr ojects  like  photovoltaic  systems,  heat  pumps,  and  building  insulation  without  needing  p roperty  collateral  and  with the possibility of free early repayments . The Group also provides finan cing for projects utilising  renewable  energy  so urces,  including  biogas  stations  that  produ ce  not  only  electricity  but  also  heat  as  a  byproduct,  photovoltaic  power  plants  that  harness  solar  energy  to  generate  electric ity  through  solar  panels,  an d  small  hydro  and  wind  power  pl ants  that  create sustainable energy f rom water currents or wind  power. In 2023, MONETA introduced a program for electric and  hybrid vehicles, offering a 1% lower interest rate than  stan dard loans.  The loans  ar e  available  for both new  and used vehicles, with flexible repayment options and no maximum purchase price, although a minimum 15%  down payment was required. Financing terms extend  up to 96 instalments for new cars and 84 for used cars,  with age restrictions for used vehicles. Resources MONETA  does  not  monitor  resources  specifically  allocated for implementation of the actions described above. MONETA’s ability to implement the actions does  not depend on the availability and allocation of specific resources above normal business oper ations. As such  it  treats  actions related  to  climate  change as  part of  normal  business  operations  and  does  not  di sclose  separate OPEX and CAPEX in its financial statements.  These expenses are not expected to be significant. 2.2.6 Targets In  2021,  MONETA  set  mid-term  cli mate-related  impact  reduction  targets  in  alignment  with  the  ESG  Strategy following  a review o f  an  external  consulting  company’s  proposal.  Th e  consulting  company  also  supplemented industrial  benchmarks which were then  compared to the development of each indicator for the  relevant area. While the groundwork was largely done  by the former Director Sustainability & Communic ation  and  the  members  of  the  newly  formed  ESG  Cluster,  the targets were finally approved by the Management  Board.  The ESG Strategy, including  th e  targets, was updated  in 2024. The aim is to reduce Scope 1 and 2 emissions  by  90%  by  2026  from  2016  levels,  working  towards  carbon  neutrality.  Scope  1  emissions  are  negligible,  while Sc ope 2 emissions mainly come from purchased  electricity.  The  largest  part  of  MONETA’s  c arbon  footprint is Scop e 3 emissions, which include financed  emissions, purchased goods and services, commuting,  business travel, and waste. SUSTAINABILITY STATEMENT – E1 361 SUSTAINABILITY STATEMENT Annual Financial Report 2024 MONETA  has  not  yet  set  up  measurable  outcome-oriented  targets  for  Scope  3  financed  emissions  (S3.15 -  Investm e nts), which constitute the  largest portio n o f MONETA’s carbon footprint. The  targets  are  not  science-based  as  MONETA  is  still  working  on  setting  Scope  3  targets.  The  targets  for  Scope  1  and  2  have  been  set  based  on  sectoral  guidance for financial institutions, with the main levers  being a combination of energy efficiency in the head  7   The value of 70% represents the reduction in Sc ope 1 and 2 emissions compared to base year 2016. office and branches (decreasing energy consumption),  expanding  the  electric  cars  fleet  and  purchasing  green certificates for the electricity used. Targets for  Scope 1 and Scope 2 are not dependent on operating  parameters such as revenue growth and the company is  not currently planning to chan ge it s business model in  a way that would impact the set targets (e.g. expansion  of  retail  branches).  The  targets  are  not  externally  assure d. Targets related to direct and indirect contribution from own operations Targets Base year 2021 Current year 2024 Target Target year Reduction of Scope 1 and 2 emissions (percentage reduction compared  to 2016 lev el on market-based approach)  70% 7 88.8% 90% 2026 Minimum proportion of electric c ars in company fleet (to be maintained  until target year) 21% 83.0% 80% 2030 Minimum reducti on of total energy co nsumption (MWh/year) compared  to base year (to be maintained until target year)  25,949 MWh/ year 44.1% 40% 2030 Rene wable energy usage (to be maintained until target year) 44% 60.3% 60% 2030 In  addition  to  the  above-listed  targets,  MONETA  has  decided  to  set  two  new  targets  related  to  Scope  3  emissions in 2025. Realising that residential mortgages  and exposure to agriculture comprise MO NETA’s largest  sources  of  Scope  3  emissions,  the  Group  is  going  to  gather  sufficient  data  to  be  able  to  set  up  realistic  targets in these two areas.  The  Sustainability  Committee  plays  a  crucial  role  in  tracking the fulfilment of the targets and the effectiveness  of sustainability-related policies and actions. Comprising  top management and meeting quarterly, the Committee  is tasked with discussing an d updating the ESG Strategy,  reviewing  p rogress  through  qu arterly  reports,  and  proposing corrective actions as n eeded.  2.2.7 Energy consumption MONETA is a company that does not belong to a climate-intensive sector. However, MONETA has been tracking its  carbon footprint since 2016; therefore it is possible to provide the br eakdown for both 2023 and 2024. The data  is collected from ener gy monito ring systems and invoices of energy p roviders. The fo llowing table presents the  Group’s energy consumption and mix.  2023 2024 Total energy consumption 16,864.2 MWh 14,279.6 MWh Total fossil energy consumpti on 6,461.9 MWh 5,664.8 MWh Consumption of purchased or acquired electricity, heat, steam, and  cooling from fossil sou rces 3,803.5 MWh 3,197.9 MWh Share of fossil sources in total energy consumption  38.3% 39.7% Consumption from nuclear sources 23.6 MWh 0.0 MWh Share of consumption from nuclear sources in total energy con sumption 0.1 % 0.0% Total renewable energy consumption 10,378.7 MWh 8,614.8 MWh Consumption of purchased or acquired electricity, heat, steam, and  cooling from ren ewable sources 10,378.7 MWh 8,614.8 MWh Share of renewable s ources in total e nergy consumption 61.7% 60.3% SUSTAINABILITY STATEMENT – E1 362 SUSTAINABILITY STATEMENT Annual Financial Report 2024 2.2.8 Gross Scopes 1, 2, 3 and Total GHG emissions MONETA oper ates i n the financial sector, which is not  subject to the EU Emission Trading Scheme 1 (“ETS”).  The Group’s activities fall und e r Financial and insurance  activities  (NACE  “K64”)  under  the  NACE  Revision  2.  None  of  i ts  activities  are  considered  a  High  Climate  Impact Sector. MONETA’s  gre e nhouse  gas  (“GHG”)  emissions  for  Scope  1  –  3  (except  S3.15  –  Investments)  are  calc ulate d  based  both  on  GHG  protocol  and  ISO 14064-1 by an external vendo r. Scope 3 finan ced  emissions  (S3.15  –  Investm e nts)  are  calculated  based  on  its  own  methodology,  which  draws  upon  the  Partnership  for  Carbon  Accounting  Financials  (“PCAF”)  methodology.  The  calculation  is  verified  by  an  external  party  according  to  the  international  stand ard ISO 14064-1:2018. When p reparing the information on gross Scope 3 GHG  emissions,  MONETA  partially  based  its  calc ulation  on  the  GHG  Acc ounting  and  Reporting  Standard  for  the  Fi nancial  Industry  from  the  Partnership  for  Carbon  Ac counting  Financials,  specific ally  part  A “Financed Emissions” (version December 2022). This  methodology focuses on measuring th e GHG emissio n s  linked  directly  to  the  financial  institution’s  lending  an d investment activiti es.  The  co ntrol-based  determination  method  was  use d  to  determine  the  boundar ies  of  the  analysis.  The  calculation  of  greenhouse  gas  emissions  included  operations  owned  an d  controlled  by  MONE TA:  headquarters  building  in  Prague  and  Ostrava  and  individual branches. Comp ared to th e base year of the  calculation  (2016),  in  2020  there  was  a  merger  with  Wüstenrot  stavební  spořitelna,  a.s.  and  Wüstenrot  hypoteční banka, a.s., for which a carbon footprint was  already set in 2020 in sections Scope 1 and 2 for 2019. Emissions are broken down into 3 S copes in accordance  with the GHG Protocol: •  S cope 1 – emissions that are direct GHG emissions  that  occur  from  sources  that  are  controlled  or  owned by an or ganisation (e.g. emissions associated  with fuel combustion in boilers, furnaces, vehicl e s).  •  S cope  2  –  emissions  that  are  indirect  GHG  emissions  associated  with  the  purchase  of  electricity, steam, heat, or cooling. Although Scope  2  emissions  physically  occur  at  the  facility  where  they  are  generated,  they  are  accounted  for  in  an  organisation’s  GHG  inventory  because  they  are  a result of the or ganisation’s energy use. •  S cope  3  –  emissions  that  are  the  result  of  8   Source: https://www.chmi.cz/files/por tal/docs/uoco/oez/nis/NIR/CZE_NID-2024-2022_main_text_UNFCCC.pdf. acti v ities  from  assets  not  owned  or  controlled  by  the  rep ortin g  organisation,  but  that  the  organisation  indir ectly  impacts  in  its  value  chain.  Scope  3  emissions  include  all  sources  not  within  an  or ganisation’s  Scope  1  and  2  boundaries.  The  Scope  3  emissio ns  for  on e  organisation  are  the  Scope 1  and 2  emissions  of  another  o rganisation.  Scope 3 emissions, also referred to as value chain  emissions,  often  represent  the  majority  of  an  organisation’s total GHG emissions. Scope 1, 2 and 3 have been included in the calculation of  MONETA’s carbon footprint. Emissions of the following  greenhouse  gases  were  included  in  the  inventory:  CO 2   –  carbon  dioxide,  N 2 O  –  nitrous  oxide,  CH 4   –  methane, and HFC – hydrofluorocarbon. Specificall y for  Scope 3.15, MONETA did not assess other greenhouse  gases than those included in CO 2 e. Emissions  from  own  operations  in  Scope  1,  2  and  3  of  the  following  greenhouse  gases  were  n ot  included  (including  jus tification):  NF 3   –  nitrogen  trifluoride (not relevant regar di ng used techn ologies),  SF 6  – sulphur hexafluoride (not r e levant regarding used  technologies), and PFC – perfluorocarbon (not relevant  regarding used technologies). The  calculatio n  of  GHG  emissions  was  carried  out  in  accordance  with  technical  standard  ISO  14064-1.  If  necessary,  the  input  data  was  converted  to  the  required unit and order of magnitude. The calculation  was  made  separately  for  all  produced  emissions  of  individual  relevant  greenhouse  gases.  Subsequently,  these  emissions  were  converted  acco rding  to  their  global  warming  potential  to  so-called car bon  dioxide  equivalent (CO 2 e) emissions. This param eter represents  the resulting unit of the company’s carbon footprint.  Emission  factors  were  taken  or  cal culated  from  the  following  documents  and  so urces  -  National  Greenhouse  Gas  Inventory  Document  of  the  Czech  Republic  (2023) 8 ,  UK  Government  GH G  Conversion  Factors  for  Company  Reporting  (2021,  2024),  Association  of  Issuing  Bo dies  (2023),  Furniture  Industry  Research  Association,  Carbon  Trust,  Ho tel  Footprintin g Tool (2023), Database Envimat, Ecoinvent  database,  ADEME  Base  Carbone  database,  PCAF  European  building  emission  factor  database  and  United States Environm e ntal Protection Agency, Tool  LCD.  If  a  specific  emission  factor  was  not  available,  it  was  estimated  by  e xternal  provider  with  expert  experience  using  similar  calculatio n s.  So me  factors  on  the  intensity  of  heat  production  were  obtained  directly from the suppliers. SUSTAINABILITY STATEMENT – E1 363 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Scope 1 and 2 emissions MONETA  has  bee n  calculating  its  carbon  footprint  in  Scope 1 and 2 since 2016. Due to the long tradition, the  Group already has reliable data collection proces ses in  place.  Moreover,  the  uncertainty  of  emission  f actors  in Scope 1 and 2 ranges only from 1.0 to 4.5%, which  means  the  data  are  a  fair  representation  of  reality.  As  a  result,  MONETA  set  a  r eduction  target  for  it s  Scope 1 and 2 emissions.  Given the business activity  of MONETA, Scope 1 and 2 biogenic emissions are not  relevant and not re porte d .  Scope 3 emissions As  a  financial  company,  MONETA  r ealises  that  the  majority  of  its  carbon  footprint  lies  within  Scope  3,  especially category  S3.15  –  Investments.  In  its  effort  to  pr ovide  a  comprehensi ve  overview  of  its  carbon  footprint,  MONETA  continuously  adds  individual  categories to the calculation.  There  are  three  ar eas  compr ising MONETA’s  Scope  3  emissions.  The  calculation  of  emissions  associated  with  purchased  goods  and  services  is  based  on  the  costs  of  these  purchases  and  monet ary  emission  factors for categories of these purchases. In categories  2-14  emissions  are  negligible,  and  their  calculation  is  mostly based on recorded energy and fuel purchases. The  majority of MONETA’s Scope 3  emissions consist  of  its  financed  emissions,  namely  commercial  loans,  residential  mortga ges  and  retail  car  loans.  MONETA  has been gradually extending the scope of c ategories  included  in  the  calculation  of  financed  emissions  since  2021.  To  ensure  MONETA’s  cal culations  adhere  to international  standards, the  Group draws  on  basic  principles  of  Partnership  for  Carbon  Acco unting  Financials  methodology  and  is  goin g  to  join  the  initiative  in  2025,  when  it  will  incorporate  the  asset  classes so far omitted (e.g. sovereign debt).  In the calculation of financed emissions (Scope 3.15 -  Investments), MONETA monitors its bigger commercial  segment clients for their non-financial dis closures. With  its commercial portfolio consisting  mainly of small and  9   Source: ht tps://ec.europa.eu/eurostat/databrowser/view/env_ac_ainah_r2/default/table?lang=en&category=env.env_air.env_air_aa. 10   Source: https://www.spritmonitor.de/en/. medium-sized  enterp rises  and  small  businesses,  only  eleven  of  it s  financed  client/s  representing  2.34%  of  finan ced emissions published their GHG emission data.  For  all  other  comm e rcial  clients,  emissio n  intensities  for  the  Czech  Republic  and  each  NACE  sector,  as  published by the Czech Statistical Offi ce and Eurostat 9 in 2024 with data for 2023, using the output method,  i.e.  not  using the  gross  v alue added (“GVA”)  m ethod  due to its large volatility over time, are applied to each  company’s turnover in CZK to estimate the client’s total  emissions.  Then,  the  share  of  the  client’s  emissions  attributed to MONETA  is  determined  by  the share  of  MONETA’s financing on the client’s total balanc e.  Further,  financed  emissions  for  retail  car  loans  are  calculated  using  public  dat a  on  average  mileage  for  types  of  vehicles  and  their  average  consumption  of  fossil fuels. Data on average consumption per 100 km  were  used  to  calculate  emissions  from  financed  cars  for retail  clients according to the fu e l  and age of the  cars according to the website 10  and further data on the  average mileage of individual types of cars (motorcycle,  passenger car, e tc.) were searched for.  Carbon footprint calculatio n for residential mortgages  was carried ou t for the first time in 2024. Drawing on  the  PCAF  methodology,  MONETA  used  the  data  fo r  the  type  of  real  est ate,  heating  method  and  energy  performance certificate (“PENB”). For Sco pe 3.15 and Scope 3.1 the uncertainty can reach  up to 80% due to the non-existence of specific e mi ssion  factors or the use of average values and various model  calculations.  MONETA  uses  total  operating  income  as  presented  in  2024  Financial  Results  and  guidance  in  i ts  Annual  Financial Report 2024 when calculating GHG emissions  intensity.  In  2024,  the  total  ope rating  income  was  CZK 12.9 billion.  Certain  Scope  3  categories  have been  excluded  from  the  c alculation  because  they  are  not  relevant  to  MONETA’s operations due to the nature of its business.  SUSTAINABILITY STATEMENT – E1 364 SUSTAINABILITY STATEMENT Annual Financial Report 2024 The table below shows Sc ope 1, 2 and 3 emissions data 11 for three retrospective years and future milestones. So far,  MONETA has only set the target for total Scope 1 and 2 emissions to be delivered in 2026. The target for Scope 3  emission will be formulated in 2025. Retrospective Milestones and target years Base year 2016 2023 2024 YoY change (2023/2024) 2025 2030 2050 Annual % targets/ base year Scope 1 emissions    Gross Scope 1 (tCO 2 e) 1,503.00 356.26 303.74 (52.52) - - - -    Percentage of Scope 1  from regulated emission  trading schemes (%) 0% 0% 0% - - - - - Scope 2 emissions    Gross location-based  Scope 2 (tCO 2 e) 12,606.91 7,875.46 6,240.92 - - - - -    Gross market-based  Scope 2 (tCO 2 e) 12,606.91 1,383.96 1,278.09 (105.87) - - - - Total Scope 1 and 2 emissions (tCO 2 e) 14,109.91 1,740.22 1,581.83 (158.39) 1,581.83 12 - - (88.8%) Scope 3 emissions   Total Gro ss Indirect (tCO 2 e) 4,015.44 469,729.24 549,807.82 80,078.58   1)  Purchased goods and  services 647.68 12,093.38 13,173.68 1,080.30 - - - -   2) Capital goods 0.77 1,050.74 880.14 (170.60) - - - -   3)  Fue l and energy-related  activities  3,111.32 2,601.76 3,638.65 1,036.89 - - - -   5)  Waste genera ted in  operations 255.67 28.81 31.18 2.37 - - - -   6) Business traveling N/A 400.07 393.58 (6.49) - - - -   7) Employee commuting N/A 739.30 655.11 (84.19) - - - -   15) Investments 13   N/A 452,815.1 8 530,844.04 78,028.86 - - - - Total GHG emissions 18,124.89 471,469.47 551,389.65 79,920.18 - - - - Total GHG location-based  emissions (tCO 2 e) 18,124.89 477,961.00 556,352.00 - - - - - Total GHG market-based  emission (tCO 2 e) 18,124.89 471,499.47 551,389.65 79,920.18 - - - - MONETA has cal culated its Scope 3 commercial portfolio emissions in line with previous years using the internal  methodology  and  external  Eurostat  database.  The  resulting  number  is  339,937.25  tCO 2 e.  However,  the  Gr oup  is  aware  of  th e  limitations of  such  calculation  given that  i t  only  includ e s  Scope 1  emissions  of  its  exposure  to  commerc ial portfolio. To align with PCAF methodology, MONETA has also attempted to cal culate Sco pe 2 and 3  of this portfolio. Unfortunately, the majori ty o f its clie nts do not report their carbon footprint data. A s a result,  MONETA can dis close only a rough estimate of the Scope 2 and 3 emissions. Using t wo different calculation method s  (industry benchmark and CDP guidelines for Scope 3 relevance by sector), MONETA has estimated its total S3.15  emissions of commercial loans to be be tween 971,249.40 tCO 2 e and 4,321,361.00 tCO 2 e.  11   Category 4 – Upstream transportation and distribution and categories 8 – Upstream leased assets, 9 – Downstream tr ansportation, 10 – Processing of sold  Products, 11 – Use of sold Products, 12 – End-of-life treatment of sold Products, 13 – Downstream leased assets, and 14 - Franchises are not listed since they  are not relevant to MONETA.  12   Since MONETA has set its target for Scope 1 and 2 emissions reduction for 2026, the figure for 2 025 represents only an esti mate which should be realistic in  order to deliver the 2026 target .  13   Calculation of carbon footprint of financed portfolio was gradually extended. Calculation for commercial loans w as conducted for the first time in 2021, for  retail c ar loans in 2023 and for residential mortgages in 2024.   SUSTAINABILITY STATEMENT – E1 365 SUSTAINABILITY STATEMENT Annual Financial Report 2024 This table shows MONETA’s Scope 3.15 – Investments breakdown 14 . Data as at 31 Dec 2024 Exposure (mil CZK) Scope 1 emissions (tCO 2 e) Scope 2 and 3 emissions (tCO 2 e) Data quality 15 Scope 3.15 – Investments 15) Investments 16   Residential mortgages  131,325. 88 162,641.47 17 - 5   Retail car loans 2,791. 25 28,265.31 - 5   Commercial loans 95,994.04 339,937.25 - 5 Commercial loans based on the NACE sector   A - Agriculture, forestry and fishing 190,720.99   B - Mining and quarrying 794.57   C - Manufacturing 37,959.18   D - Electricity, gas, steam and a ir conditioning supply 35,672.80   E -  Wate r supply; sewerage, waste management and  remediation activities 8,872.84   F - Construction 10,941.96   G -  Wholesale and retail trade; repair of motor  vehicles and motorcycles 5,327.01   H - Transportation and storage 40,015.40   I - Accommodation and food service activities 600.10   J - Information and communication 175.19   K - Financial and insurance activi ties 7.32   L - Real estate activities 6,883.95   M - Professional, scientific and technical ac tivities 268.73   N - Administrative and support service activities 853.92   O -  Public administration and defence; compulsory  social security 2.48   P - Education 74.47   Q - Human health and social work activities 592.30   R - Arts, entertainment and recreation 35. 73   S - Oth er service activities 138.23 Total GHG emissions   Industrial benchmar k estimation 95,994.04 339,937.25 631,312.15 N/A   CDP estimation  95,994.04 339,937.25 3,981,424.75 N/A The t able below shows the emission intensity of MONETA’s carbon footprint.  Scope Emissions intensity Operating income (tCO 2 e/mil CZK) Per employee (tCO 2 e/HC) Scope (market-based)   Scope 1 and 2 0.12 0.61   Total emissions 42.74 213.13 Scope (location-based)   Scope 1 and 2 0.50 2.64   Total emissions 43.13 224.79 14   As MONETA is  currently  streamlining its  methodology, the  cha nges  implemented  will  render  the numbers non-comp arable to those  of the previous year.  Therefore, only the values for 2024 are discl osed. 15   Data qua lity scores are in accordance with the PCAF quality scoring method as specified in The Global GHG Accounting and Reporting Standard for the Financial  Industry. A score of 1 reflects the highest data quality and a score of 5 is the lowest data quality. 16   Calculation of the carbon foo tprint of the f inanced portfolio was gradually extende d. Calculation for commercial loans was conducted for the first time in 2021,  for retail car loans in 2023 and for residential mortgages in 2024.   17   Although MO NETA is aware that PCAF methodology does not include “Construction” into the calculation of mortgage portfolio carbon footprint, the Group  believes that newly constructed housing does generate CO2e and therefore has included this item into its calculation. Construction amounts for 8.7% of t otal  mort gage em issions. SUSTAINABILITY STATEMENT – E1 366 SUSTAINABILITY STATEMENT Annual Financial Report 2024 MONETA is subject to prudential regulation, whic h will  require, from 2026, to have in place reliable strategies,  guidelines,  processes  and  systems  for  identification,  measurement,  management  and  monito ring  o f  ESG  risks  on  short-,  medium-,  and  long-term  horizons.  In  addition,  th e  same regulation will  require the  testing  of resilience against long-term adverse imp acts of ESG  factors. MONETA will implement steps to c omply with  these  re quirements  once  they  become  effective  and  disclose accordingly. 2.3 BIODIVERSITY AND ECOSYSTEMS 2.3.1 Material sustainability-related impacts, risks During  the  double  materiality  assessment  phase,  MONETA  identified  biodiversity  as  its  material  topic  given the structure of its commercial clientele, w hich  consists of a large number of small and medium-sized  agricultural businesses, while taking into conside ration  the  concentration  of  the  portfolio  to  the  Czech  Republic  only.  Their  link  to  biodiversity  is  obvious,  hence MONETA’s materiality. However, until th e n, the  Group had not been collecting any data r e l ate d to the  biodiversity  of  its  clients,  nor  had  it  attempted  any  form  of  assessment  of  biodiversity-related  impacts,  risks,  dependencies  or  opportunities.  Moreover,  structured  and  business-applicable  biodiversity  data  is very difficult  to obtain  as  there are  no  functioning  localised  databases  or  methodologies  that  could  be  directly utilised by financial institutions. As  a  result,  MONETA  is  currently  exploring  ways  to  collect  biodiversity  data  and  analyse  them  to  assess  its biodiversity impact within its portfolio, particularly  within  the  agricultural  sector,  where  it  is  most  significant.  The Group is currently assessi ng its biodiversity impact  within its po rtfolio, particularly within the agriculture  sector, where it is mos t significant. By scrutinising the  environmental footprint of its financ ing in a griculture,  the Group seeks to identify and mitigate its ecological effects,  aligning  financial  practices  with  biodiversity  conservation. MONETA  provides  funding  to  clients  within  the  agricultural  sector,  which  is  the  largest  part  of  its  commerc ial  loan  portfolio.  The  intensification  of  agriculture practices often leads to a negati ve impact  on biodiversity. The conversion of natural habitats into  farmland, the use of chemical pesticides and fertilisers,  and  the  monoculture  farming  practices  commonly  finan ced  by  banks  can  lead  to  a  loss  o f  species,  disruption of ecosystems, and a decline in the health  of the natural world.  As  a  responsible  entity,  the  Group  is  cognisant  of  these  environmental  challenges  and  is  committed  to  exploring  and  implementing  financi ng  strategies  that  mitigate  th e  adverse  effects  on  biodiversity  while  continuing to support the vital agricultural sector. 2.3.2 Transition plan on biodiversity and ecosystems MONETA  has  not  implemented  any  transition  plan,  targets  or  metrics  related  to  biodiversity  yet  as  the  impacts are co nnected to its downstream value chain  and MONETA is developing methodology to quantify its  impacts more precisely. Once this is clearly established and the relevant data and me trics are in place, MONETA  will set up targets and timelines. 2.3.3 Policies So  far,  MONETA  has  no  specific  policies  and  actions  related  to  biodiversity  and  ecosystems.  That  being  said, MONETA is actively seeking data on which it could base its biodiversi ty policies going forward.  2.3.4 Actions and resources Until  now,  MONETA  has  not  employed  any  actions  or  resources  related  to  biodiversity  and  ecosystems.  However,  the  Group  is  currently  actively  scouring  the  market  for  po tential  ways  to  measure  and  asses s  biodiversity  in  relation  to  its  business  model.  Moreover, MONETA, as a traditional partner to farmers  and  agricultural  businesses,  has  a  long  tradition  of  agro-breakfasts,  where  it  introduces  not  just  new  finan cial  products  but  also  th e  newest  trends  in  (sustainable) farming, such as precision agricultur e, to  its clients. 2.3.5 Targets At  this  moment, MONETA  is  in  an  exploratory  phase  trying  to  link  biodiversity  in  its  financ ed  portfolio  to  its  busin e ss  objectives  and  see king  ways  to  quanti fy  the  i mpact.  Therefore,  in 2024, MONETA  has  not  set  up  any measurable outcome-oriented  or  time-bound  targets  nor  has  it  employed  any  metrics  related  to  biodiversity and ecosystem change. However, MONETA  understands  the  impo rtance  of  setting  up  rel evant  timelines. The exploratory phase should be completed  in 2025 and the respective target set up in 2026. 3. BUSINESS POWERED BY PEOPLE MONETA’s  soc ial  section  covers  topical  standards  S1 – Own workforce and S4 – Consumers and end-users. As  a  financial  institution,  MONETA  provides  financial  products  and  services  to  a  wide  range  of  clients  in  the  Czech  Republic.  A  high  level  of  service  requires  SUSTAINABILITY STATEMENT – E4 367 SUSTAINABILITY STATEMENT Annual Financial Report 2024 a  qualified  and  motivated  workforce  that  keeps  up  with the challenges of digitalisation and the new online  trends. Protecting its clients from cyber threats is one  of MONETA’s greatest priorities.  3.1 OWN WORKFORCE 3.1.1 Material sustainability-related impacts and risks As  the  Group’s  frontline  representatives,  MONETA’s  e mployees  are  ambassadors  of  its  brand.  Their  behaviour  and  interactions  with  key  stakeholders, i ncluding clients can  significantly impact  the  Group’s  reputation,  including  client  s ati sfaction  and loyalty. Well-trained and motivated employees can  provide exceptional service, leading to higher customer  retention and po sitive feedback.  Employees play a key role in the day-to-day operations  of  the  Group.  Their  efficiency  and  productivity  can  significantly  affect  the  Group’s  overall  performance.  Investing in employee well-b eing, including mental and  physical  health,  employee  training  and  development,  can lead to a more productive and engaged workforce  while  ensuring  that  they  have  the  skills  needed  to  perform  their  tasks  effectively.  The  latter  wi ll  be  particularly  important  as  MONETA  expands  its  port folio of sustainable financial products and delivers  on its sustainability commitments. Diverse teams bring  different  per spectives  and  ideas,  which  can  enhance  problem-solving  and  decision- making  processes.  Promoting diversity and inclusion within the workforce  can  lead  to  a  more  innovative  and  dynamic  work  environment.  All  of  MONETA’s  workforce  lives  and  works  in  the  Czech  Republic,  where  the  Group  operates.  The  Czech  Republic  i s  a  member  of  the  EU;  it  is  subject  to  a  comprehensive  legal  framework  that  addresses  human rights issues, and the local legislation enforces  strict standards for the protection of human and labour  rights,  and  the  Group’s  operations  align  with  these  national  requirements  and  commitments.  As  such,  MONETA  has  not  identi fied  the  country  or  its  own  operations  at  si gnificant  risk  of  inc idents  of  forced,  compulsory or child labour. The  majority  of  MONETA’s  employees  (97%)  are  employed  based  on  the  employment  contr act,  while  the rest of them coope rate with MONETA based on the  agreement to perform work as defined by C zech labour  law (please refer to sections 74 - 77 of the Labour Code  as amended) 18 . 18   Source: https://www.e-sbirka.cz/sb/2006/262/2025-01-01?f=262%2F2006&zalozka=text. MONETA  has  not  identified  any  material  negative  impacts  in  connection  with  its  own  employees.  The  impacts identified as material by MONETA apply to all  its employees and relate to topics of Working conditions  and Equal treatment and opportunities, with a specific focus  on  Gender  equality  and  equal  pay  for  work  of  equal value, Training and skills developm e nt, Adequate  wages, and Work-life balance. MONETA’s  objective  is  to  be  an  attractive  and  responsible employer for all its employees independent  of  their  location,  positi on,  age,  gender,  or  any  other  factors.  However,  the  Group  has  identified  ce rtain  groups  of  employees  that  at  some  point  in  their  life  might  require  more  support  such  as  informal  carers  who  care  for  their  family  members,  employees  with  serious  an d  chronic  illnesses,  or  those  with  young  children. MONETA aims to provide equal access to opportunities  for all its employees. To achieve this, MONETA pri oritises  creating  e quitable  chances  for  women,  individuals  from minority cultural or ethnic backgrounds, people  with disabilities, and different generations. Alongside  providing  a  variety  of  development  opportunities,  the  Group  assists  employees  in  acquiring new skills for different roles (re-skilling) and  enhancing their current skills (upskilling). Additionally, the Group has integrated various wellbeing initiatives  into its employee benefits. For more details of specific  activities,  see  section  3.1.5  Actions  related  to  Own  workforce. MONETA is developing activities related to sustainable  (‚green’)  finance,  w hile  at  the  same  time,  the  regulatory  framework  for  banks  regarding  disclosure  and complian ce to risks and i mpacts related to climate  change  is  increasing.  The  growth  of  related  business  lines  will  create  employment  opp ortunities  for  new  candidates and offer a development path for existing  st aff.  MONETA  views  its  employees  as  a  cruc ial  asset  in  executing  its  business  strategy  and  maintaining  its  operational  lice n se.  This  is  particularly important  fo r  reducin g  the  risk  of  non-compliance  and  inadequate  adaptation to rapidly changing regulations, which could result in sanctions and financial losses. Employees are  on  the  front  lines  of  identif ying  an d  managing  these  risks; thus, a knowledgeable, well-traine d, and satisfied  workforce,  supported  by  a  strong  corporate  culture,  is  essential  for  en suring  the  Group  can  navigate  the  complex regulatory lan dscape effectively. SUSTAINABILITY STATEMENT – S1 368 SUSTAINABILITY STATEMENT Annual Financial Report 2024 3.1.2 Policies The Czech Republic is a signatory to most of the main  agreements  on  the  protection  of  human  rights  and  reflects  its  commitments  primarily  in  the  Charter  of  Fundamental  Rights  and  Freedoms 19 ,  which  is  the  cornerstone  of  the  Czech  constitutional  fr amework.  MONETA abides by the applicable laws and regulation s ,  and the protection of human rights is inherent to all its  activities. MONETA  became  a  signatory  to  the  UN  Global  Compact 20   in  2021  and  has  b een  publishing  reports  on  progress  and  compliance  with  the  principles  since 2022 21 . The ten principles cover, among others, the  respect  and  the  protection  o f  internationally  procl aimed human rights, the elimination of all forms  of  compulsory  and  forced  labour,  the  abolitio n  of  child  labour  and  the  elimination  of  discrimination  with  respect  to  employment  and  occupation.  In  July  2022,  MONETA  became  a  signatory  of  the  Women’s  Empowerment  Principles  (“WEPs”) 22 .  WEPs  are  a  set  of  Principles  offering  guidance  to  businesses  on  how  to  pro mote  gender  equality  and  women’s  empowerment  in  the  workplace,  marketplace and community. MONETA also signed the  Diver sity  Charter  of  the  Czech  Republic 23   to  publicly  declare  its  commitment  to  diversity  an d  inclusion.  Its  commitments  are  reflected  in  d aily  business  and  polic ies to effectively manage impacts on employees.  Internal regulations impacting employees of MONETA  are  aligned  with  appli cable  EU  directives  and  regulations, in particular: •  The  European  Banking  Authority’s  Guidelines  on  sound remuneration policies •  Guidelines  on  sound  remuneration  polici e s  under  the Alternative Investment Fund Managers Directive Alignment  of  internal  regulation  in  place  with  those  requirements is subject to  regular audits (at least once  a year) and/or complian ce reviews. The  Group’s  inclusive  approa ch  to  fair  and  equal  treatment  of  all  employees  is  enshrined  in  its  Code  of  Ethics 24 ,  whi ch  prohibits  any  discrimination  and  promotes  equal  opportunities  for  all.  It  is  bi nding  for  all employees and members of governing bodie s of the  Group companies, sets the fundamental rules for their  behaviour, and declares the Group’s obligation s towards  19   Source: https://www.psp.cz/en/docs/laws/listina.html. 20   Source: https://unglobalcompact.org/what-is-gc/participants/146340-MONETA-Money-Bank. 21   Source: https://cop-report.unglobalcompact.org/COPViewer/2024?responseId=R_8NVv1Id5MPmCz2V. 22   Source: https://www.weps.org/. 23   So urce: https://diverzita.c z/en/charta-diverzity-v-cesku. 24   Source: https://esg.moneta.cz/documents/19688341/19803994/mmb-code-of-ethics.pdf/7734a671-4de2-dfd8-eae9-e26613bd1524?t=1714032438366. 25   Source: https://esg.moneta.cz/documents/19688341/19803994/mmb-diversity-equity- and-inclusion-policy-2022.pdf/f3a6e970-8b70-07b9-38b9- 95daf201a649?t=1714032438318. 26   Source: https://esg.moneta.cz/. its  employees,  members  of  governing  bodies,  clients,  shareholders, business partners and other third parties.  All employees, including the persons conducting work  on the basis of agreements on work performed outside  employment  (part-time)  and  MONETA  contractors,  undergo  annual  mandatory  training  d e signed  to  prevent misconduct, unethical behaviour, and conflicts  of interest. In 2024, there were no reco rded c ases of  discrimination or human rights violati ons in MONETA. MONETA  adopted  the  Diversity  &  Inclusion  policy 25 in  2020  and  updated  it  in  2022.  The  purpose  of  this  policy is to commit to diversity and inclusion, including  promoting  equal  opportuniti e s  for  employees,  preventing  harassment  and  discrimination,  and  ensuring complian ce with national and lo cal lab our and  employment laws. The policy states respe ct for others  and  intolerance  of  discrimination,  namely  based  on  race, skin colour, religious beliefs, nationality, gender,  age, disability level or sexual orientation. MONETA’s formalised ESG Strategy 26 outlines its main  principles  and  approach  to  ESG  and  sustainabilit y  within  MONETA  and  its  subsidiaries  and  sets  objectives  to  be  achieved  in  the  following  years  to  align  MONETA’s  activities  with  broader  sustainability  goals,  including  enhanceme nt  of  social  aspects  of  its  business  conduct.  Social  aspects  and  considerations  reflect  material  topics  and  include  an  approac h  to  MONETA’s employees in terms of a diverse and Inclusive  Working  Environment,  Fair  Employee  Remuneration,  Employee  Satisfaction  and  Wellbeing  and  Employee  Training & Development. In talent search and acquisition, MONETA considers skills,  experience,  potential  and  moti vation  only.  MONETA  rejects any form of discrimination, so the candidates are  treated fairly and with the same care regardless of their  gender,  age,  ethnic  origin,  sexual  ori e ntation,  health  conditions, or any other factor. Fair recruitment without  any  differences  is  implemented  into  the  KPIs  of  the  Talent Acquisition team as well as providing feedback to  all candidates at a defined time frame. The  selection  and  recruitment  of  new  employees  or  internal  candidates  is  governed  by  firmly  defined  principles  derived  from  the  Code  of  Ethics.  During  the  recruitment  process,  only  parameters  that  are  directly related to the experience, skills and motivation  of  candidates  are  evaluated.  When  selecting  SUSTAINABILITY STATEMENT – S1 369 SUSTAINABILITY STATEMENT Annual Financial Report 2024 employees,  MONETA  strictly  follows  the  applicable  legal regulations (e.g. Labour Code, GDPR). Every year,  MONETA trains  managers on the  pr i nciples and  rules  for the profes sional interviewing of candidates. The  design  of  a  f air,  understandable  and  adequate  remuneration  package  i s  one  of  MONETA’s  top  priorities. The remuneration p olicy is set up to c reate  sustainable  value  for  shareho lders  while  at tracting,  rewarding,  and  retaining  the  best  employees.  In  remuneration,  MONETA  con siders  both  long-term  results and short-term challenges, paying attention to  the  internal  balance  of  remuneration  settings  while  monitoring the market (external pay equity) to ensure  that remuneration is comparab le to the labour market.  MONETA uses Korn Ferry’s inde pendent methodology  to track market tren ds in compensation as objectively  as  possible.  MONETA  complies  with  all  legal  and  regulatory requirements.  To  properly  manage  ESG  factors  and  ri sks  including  those related to its own workforce MONETA applies the  three lines  of  defence approach  (see section  1.2  ESG  Corporate  governance  framework),  with  employees  forming the fi rst line.  MONETA ensures that employees  are  properly  equipped,  via  training,  educati on  and  monetary suppo rt, to manage the exposure.  The  detailed  list  of  MONETA’s  policies  that  cover the  topic s  of  own workforce, remuneration and  diversity  and  inclusion  is  included  in  the  Appendix  of  this  Sustainability Statement. 3.1.3 Employee engagement The  Group  has  implemented  several  processes  to  engage with its work force. These processes are broad  and  encompass  a  variety  o f  topics  that  employees  find important, including more specific topics, such as  employee  developm e nt,  pe rformance,  and  personal  circumstances.  They  include  regular  interactions  and  dialogues  between  employees  and  line  managers,  a diversity and inclusion plat form (MON FAIR), as well  as anonymous employee surveys.  The Group does not  engage  employee  representatives  or  trade  unions  as  these are not established. MONQuest is MONETA’s regular, anonymous emp loyee  survey,  which  is  conducted  on  a  quarterly  basis.  MONETA  chose  an  independent  digi tal  platform  LutherOne, which also allows it to work with the survey results  in  real time.  The  sur vey  consists  of  questi ons  and the option to insert comments.  Results  are  p resented  to  the  top  management  and  follow-up  actions  are  determined.    The  results  are  27   Source: https://www.moneta.cz/kontakt/whistleblowing. 28   Sou rce: https://www.moneta.cz/kontakt/whistl eblowing. also available to all employees through the LutherOne platform  and  internal  communicatio n  channel s.  The  Group  moni tors  the  survey  response  rate  and  the  Employee  Net  Promoter  Score  (“eNPS”),  which  were  76% and 36, respectively in the latest 2024 survey. MONETA’s  employees  also  have  an  opportunity  to  attend  all-company  Management  Conferen ces  (town  hall me etings), which are held regularly in connection  with the publication of the Group’s quarterly financial results. During the presentatio n, the CEO provides an  overview of the current financial results and strategic direction of the Group to the employees while selected  members  of  the  management  team  present  the  achievements and visions in their respective areas. The  conferences are h e ld at the main conference hall of the  Prague  headquarters and are  streamed online  across  the  entire  branch  network  in  the  country,  including  the head offices, and a video reco rding is made of the  event for later reference. 3.1.4 Employee Ombudsman MONETA promotes transparency and ethical standar ds  in  all  areas  of  its  business.  An  empl oyee  is  provided  with the  o ption to anonymously  report any concerns  or  suspected  misconduct,  either  to  the  management  of MONETA or through an independent rep orting line.  The  Group  is  committed  to  handling all  reports with  promptness and confidentiality. MONETA implemented Act No. 171/2023 Coll., on the  protection  of  whistleblowers,  in  2023  and  created  a dedic ate d website 27  with relevant information.   The channels to raise concerns are the following: •  website which contains an online contact form, •  anonymous phone line +420 224 448 077, •  email address ombudsmanCZ@moneta.cz, •  physically  at  the  address:  MONETA  Money  Bank,  a.s.  /  MONETA  Auto,  s.r.o.  /  MONETA  Leasing,  s.r.o. / MONETA Stavební Spořitelna, a.s.,  Employee  Ombudsman,  Vyskočilova  1442/1b,  140 28 Prague 4 – Michle. The  websi te  is  available  in  Czec h  and  English.  The  results of these complaints are p resented  through the  Annual  Report  of  the  Internal  Ombudsman,  which  is  available on the MO NETA website 28 . MONETA  has  a  firm  internal  policy  to  p rotect  whistleblowers from reprisals or any form of retaliation for reporting. Th e  policy ensures that whistleblowers  are  protected  from  retaliation,  which  supports  the  company’s sustainability pri nciples. SUSTAINABILITY STATEMENT – S1 370 SUSTAINABILITY STATEMENT Annual Financial Report 2024 MONETA  has  a  system  of  internal  ombudsme n  and  ombudswom e n to assist and ensure the protection of  the rights and legitimate interests of its employees in  situations where they suspect a breach of internal rules and regulations or where they feel they are not being  treated in accordance with the principles of integrity,  equal  opportunity  and fair remuneration.  In addition  to  the  above-mentioned  noti fications ,  omb udsmen  are also a sourc e of advice and consultation on issu e s  related to the rules of the internal Code of Ethics and  initiate  measures  to improve  working  conditions ,  the  working  environment  an d  workplace  relations.  If  the  situation requires it, app ropriate corr ective measures  are pro posed by the internal ombudsmen, the aim of  which  is,  among  other  things,  to  eliminate  the  very  cause of the problematic situation. The Employee Ombudsman O ffice publishes its annual  report,  where  it  is  possible  to  find  information  on  its  activities and the initiatives addressed during the year.  To protect the identity of employees who wish to report  a  suspected  violation,  the  Gr oup  has  a  confidential  complaint  referral  regime.  The  Director  Compliance  is  the owner and guarantor of the process and coordinates  the  investigati on  of  more  serious  complaints.  He  is  also  responsible for the  appointment of three internal  ombudsmen  and  ombu dswomen  from  among  the  employees. MONETA do es n ot have collective bargaining  agreements and there is no tr ade union. In 2024, there  were  no  significant  co mplaints  indicating  a  seri ous  breach of external or internal regulation s.  3.1.5 Actions As  part  of  MONETA’s  double  materiality  assessment,  the  Group  has  not  identified  any  material  negative  impacts on its own workforce.  The Group actively takes measures to advance positive  impacts  on  its  workforce,  ensuring  that  the  actions  taken align with the core values of employee welfare and  sustainable  development.  Th e se  initiatives  encompass  a  range  of  strategies,  from  promoting  professional  growth to fostering a culture of inclusivity and respect. At  MONETA,  the  Human  Resources  Department  is  responsible for the management of identified impacts,  specificall y:  •  creating and implemen ting the rules , communication  strategy,  procedures  and  methodology  to  ensure  an adequately quali fied workforce, •  ensuring  processing,  implementation  and  control  of  personnel,  labour  and social  policy  and  payroll  processing, •  providing an evaluation system and improving the  work efficiency of employees, •  leading  personnel  records  of  employees  and  securing the tasks related to labour relations, •  providing a range of organisations and systemising,  including characteristics of the jobs, •  developing  th e  concept  of  employee  training  and  ensuring their organisation. To  enfo rce  its  actions  and  to  provide  guideli nes  MONETA  has  been  a  signatory  to  the  UN  Global  Compact since June 2021,  believing that by partne ring  with others , the Group  can better achieve sustainable  development .  The  Group  has  a  b road  base  of  philanthropic  activities,  including  its  unique  Grant  Programme,  MONETA  Cle mentia  Foundation,  and  system  o f  corporate  volunteering.  As  a  memb e r  of  the  A ssociation  of  Social  Respon sibility,  the  largest  platform  for  the  UN  Sustainable  Development  Go als  (“SDGs”)  in  the  Czech  Republic,  MONETA  is  also  committed  to  supporting  the  SDGs  in  spheres  other  than its own busi ness. Actions  are  aligned  with  Sus tainable  Development  Goals:  goal  No.  5  –  Gender  equality,  No.  8  –  Decent  work  and  economic  growth  and  No.  10.  Reduced  inequalities.  Equal treatment and pay MONETA  follows  the  principle  of  equal  and  fair  opportunities both within M ONETA and towards third  parties.  In  2019,  the  Group  launche d  its  Diver sity  Programme, and from spring 2020, a Group-wide expert  committee on diversity, inclusion and gender balanc e,  MON FAIR, has been  overseeing  the  overall status  of  the DE&I progr amme across MONETA, including gender  pay equity, and supports employees work-life balance  in di fferent life situations. It also serves as an employee  platform  to  create  a  constructive  dialogue  b etween  employees,  to p  management  and  the  Supervisory  Board. The Group is also committed to gender equality  through MONETA’s remuneration p olicy. MONETA  has  made  equal  pay  for  women  and  men  for comp arable work one of its priorities in managing  its  remuneration  system.  Since  2020,  MONETA  has  be e n  the  only  Czech  company  in cluded  in  the  Bloomberg  Gender-Equality  Index.  Based  on  data  from  2024,  the  Gender  Pay  Gap  –  th e  difference  between  the  total  average  pay  of  men  and  women  in comparable positions – was identified at 1.44% to  the disadvantage of women, which is a slight increase  compared to the previou s year (0.88% in 2023, 1.73%  in 2022, 1.98%  in  2021, 2.79% in  2020 and 5.19% in  2019). MONETA’s goal is to maintain the Gender Pay  Gap below 1% until 2030. Gender diversity The  Group  aims  to  improve  gender  equality  by  increasing  female  repres e ntation  in  leade rship  roles  and  eliminating  the  gender  pay  gap.  The  Group  has  SUSTAINABILITY STATEMENT – S1 371 SUSTAINABILITY STATEMENT Annual Financial Report 2024 an  ongoing  conc e ptual  development  programme  for  women  in  managerial  positions  w ho  receive  targeted  support  and  development.  Consequently,  Klára  Starková  was  elected  as  the  first  woman  to  the  Management  Bo ard  of  MONETA  Money  Bank  as  Chief  Operating  Officer  in  2021.  The  S uperv isory  Board  is  now made  up  of 56%  women.  In total,  40%  of MONETA’s executive positions are held by women.  By this proportion, MONETA has reached the target of  having 35% representation of women and through the new ESG Strategy has subsequently set up a new target  to maintain 40% until 2026.   In addi tion, of the 10 advisory committees established  by  MONETA’s  Management  Board,  two  are  led  by  women:  the  Compensation  Committee  and  the  aforementione d MON FAIR Committee. MON Step MONETA’s efforts in the area of diversity and inclusion extend to the inclusion of employees with disabilities  under a project labelled MON Step. T hi s project started  in October 2021 and aims to increase the proportion of  people with disabilities in its workforce. At the end of  2024, the rate stood at 1.31%. Training and skills development MONETA  strives  to  improve  access  to  education  by  prioritising  employee  training  and  developme nt  to  ensure the enhancement of expertise across employee  roles.  All  its  employees  are  trained  annually  on  compliance with policies and processes, p articularly on  regulatory issues. These topics are covered in a series  of  e-learning  courses  which,  by  their  ver y  nature,  ensure  high-quality  education  in  the  area  and  the  subsequent evidentiality of the training in the event of  an inspection by the Czech National Bank.  In a ddition to mandatory training sessions, which cover  mostly  regulatory  issues,  there  are  also  mandatory  specialised training  cour ses adapted  to the  skills  and  certifications required for particular job roles.  The Group also offers hard skills and soft skills training.  Hard  skills  training  c overs  a  number  of  to pics  such  as  ESG,  AI,  cybersecur ity  training,  analytical  tools,  project  management  and  other  topics.  Sof t  skill s  training courses take the form of online seminars and  workshops with external speakers. MONETA  has  a  trainee  programme  embedded  in  its  recruitment  process,  which  is  designed  for  young  talents at the beginning of their careers to gain their  first expe rience of working life. In 2024, MONETA again  participated in the inter-company mentoring platform  Together 2 Grow (“T2G”), which involved 10 pairs. Since  2023,  employee  development  has  been  integrated with performance management and career  planning.  Key  position s  now  have  successi on  plans  and  performance  reviews  discuss  career  progression  as  well  as  the  development  of  leadership  skills.  To  elevate  digi tal  skills,  the  Group  introduced  a  virtual  learning platform featuring resources to foster digital  literacy  and  awareness  of  current  trends.  The  Group  also  continued  its  commitment  to  gender  diversity  by  advancing  its  leadership  programme  for  women,  supported by the MON FAIR Committee. This initiative  aims  to  boost  the  number  of  women  in  mana ger ial  positions and support their career progression. Talent programmes Every  year,  MONETA  organises  several  talent  programmes for employees demonstratin g the highest  performance  an d  potential.  Retail  sales  positions  and  Contact Centre  can  take adv antage of  the Retail  Academy  to  further  boost  their  skills  and  expertise.  In 2024, the Commercial Academy was establish ed to  provide development for the commercial salesforce.  To increase the number of women in managerial roles  and  to  support  existing  female  managers  in  their  further  career  growth,  the  Developm e nt  programme  for women was launched in May 2021. The programme  also  included  top-ranked  women  who,  although  currently  in  an  ex pert  role  wi th  no  direct  reports,  were actively preparing to take on managerial roles. In 2024, the programme has celebrated its fourth year of  existence. Succession  planning  and  internal  promotions  are  an  important  part  of  MONETA’s  human  capital  development . As a result, two new programmes were  launched  in  2024.  Talent  Accelerator  is  an  annual  programme  for  junior  employee s  showing  high  potential, while Talent Master, a two-year programme,  focuses on talented experts and managers.  The  total  number  of  participants  in  all  the  talent  programmes was 197 in 2024.  Work-life balance MONETA’s goal is to be an attractive and responsible  employer. The Group believes in the provision of social protection, social security and fair working conditions.  Efficient  use  of  time  is  promoted  by  work i ng  from  home  through  the  Remote  Working  option,  which  allows  employees  to  wor k  from  home  occasionally,  depending on the nature of the job.  MONETA also offers all its employees four “Free Days”,  which they can use in the event of a short-term illness  or  other  need  for  tim e  off.  Bankers  in  the  branch  network  may  use  “Time  Off”,  which  is  used  to  take  SUSTAINABILITY STATEMENT – S1 372 SUSTAINABILITY STATEMENT Annual Financial Report 2024 a short-term absence from the wor kplace in a matter  of  hours.  Bankers  c an  use  this  employer-paid  short  personal  l eave  to  take  care  of,  for  ex ample,  official  business. To increase flexibility, MONETA has e xtended  remote working options for positions where the nature  of  the  work  allows  it,  st arting  in  November  2023.  Employees c an now wor k up to 12 shifts per c alendar  month in this mode if operational conditions allow. For  other positions, remote work can be performed up to  4 shifts per mo nth.  The  table  shows  the  types  of  leave  available  to  the  MONETA’s employee s.  Type of leave Entitlement Eligibility Vacation 25 days per year All employees working  under employment  contract Free days 4 days per year Free days 5 days per year Informal carers – beyo nd  the Free days allowance  for all employees Time off 32 hours per year Branch network Certification leave 5 days per year Mandatorily certified  employees Support of parents at MONETA The  Group’s  aim  is  to  foster  an  environment  that  supports parents, especially mothers, in re-entering the  workforce, which in turn helps them to harmonise their  work commitments with their personal responsibilities. Since  2021,  the  Group  has  been  providing  financial  support  to  facilitate  the  return  of  new  parents  af ter  maternity  or  parental  leave.  In  addition,  since  2023,  a children’s group has been available to the employees  at the Prague headquarters.  Employees on maternity  and  paternal  leave  can  also  stay  in  touch  with  their  colleagues  through  the  “Parents  in  MONETA”  community, which then facilitates their return to work. The effectivene ss of these actions is measured by the  retention rate of employees returning from maternity  or parental leave, where up to 90% of parents remain in  their position for at least 1 year. To allow for flexibility  for the Group’s employees who have children, 14.2% of the employment contracts at M ONETA were part-time  in 2024 and this number is continuously increasing. MON Care Informal  carers  are  another  target  group  for  whom  MONETA offers the opportunity to benefit from social  and  legal  counselling  as  well  as  psychotherapeutic  support.  Since  May  2023,  the  Group  has  offered  these  employees  a  higher  level  of  r e mote  working  options and increased days  o ff by up to five days per  calendar  year.  MONETA  introduced  these  changes  to  improve  work-life  balance  and  make  it  easier  to  combine  caring for  their  family  members  with  their  work commitments.  Through the Group’s Social and  Matching  Fund,  which has been  under the  MONETA  Clementia Foundation since 2023, employees who are  in a difficult social situation can be nefit from a one- off  financial  donation.  In  2024,  MONETA  offered  support to 21 employees in need. Adequate wages and fair employee remuneration The remuneration system is based on a proven process  of  paying  rewards  based  on  individual  performance  against  set  targets.  In  addition  to  rewards  linked  to  the  achievement  of  goals  related  to  the  respective  job,  the  remuneration  system  is  thus  appropr iately  supplemented  with elem e nts that support MONETA’s  long-term  interests,  goals  and  values.  T he  Group  also  values the  loyalty of its employees, who receive  a financial reward every 5 years whe n they reach their  work anniversary. During  2024,  MONETA  a djusted  the  salaries  of  1,177  employees,  on  average  by  9.0%,  to  r eflect  the  increasing  co st  of  living  and  fight  for  talents  on  the  labour market. Costs r e l ate d to the implementation of  the abovementioned a ctions are ab sorbed within the  existing financial plan. MONETA co mplies with all  legal  and regulatory requirements. 3.1.6 Targets MONETA traditionally suppo rt s  diversity and equality  in the workplace and promotes women in management  positions. As previousl y mentioned in the section 3.1.5  Actions, the Group has many programmes to improve  the in clusion and working conditions of its employees.  In  2021,  MONETA  set  up  targets  in  this  area  as  part  of the ESG Strategy and maintained good progress in  achievin g them. T he ESG Strategy including the target s  was updated in 2024 to build on the progres s.  SUSTAINABILITY STATEMENT – S1 373 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Targets related to own workforce Related impact Target Base year Baseline value 2024 Target Target year Diversity, equity and inclusion Uph olding policies that promote  gender equality and diversity, such as  equ al pay and maternity and p aternity  leave, enablin g employees to live free  from gender and othe r inequa lities,  experience access to equal opportunities  and responsibilities, and earn equitable pay regardless of gender. Share of women in  MONETA’s management 29 2021 40% 41% 50% 2026 Percentage of women in  executive positions of MONETA   (Manag ement Board and  Supervisory Board) 33% 40% 40% 2026 Adjusted Gender Pay Gap 30   1.98% 1.44% <1% 2030 Return from parental leave  12 months retention rate 73% 90% 90% 2030 Training and skills development Investing in training and development  programmes for employees can boost  their personal and career development,  increase their income, improve their  socio-economic position, th eir overall  job satisfaction an d their sense of  professional fulfilment. Participants in the trainee  programme 2023 11 29 40 2026 Work-life balance Ensuring fair working conditions and  investing in employee wellbeing leads  to improving employees’ livelihood  and accessibility to f ull and productive  emp loyment and decent work, which  delivers a fair income and security in the  wor kplace, in cluding social protection  for families.  Share of employees working  reduced hours 2023 14.0% 14 .2% 15. 0% 2026 29   Women who manage other employees, including team leaders, etc., were included in the calculation. 30   Adjusted Gender Pay Gap is calculated only for employees with an employment contract as the difference between the salaries of men and women holding  co mparable job positions. 3.1.7 Employee characteristics All  of  MONETA’s  employees  are  based  in  the  Czech  Republic. The total number of employees (headcount)  was  2,587  as  at  31  December  2024.  Total  number  of  employees  who  left  the  company  was  554.  The  percentage  of  voluntary  employee  turnover  was  12.2%.  Voluntary turnover is  the  ratio comparing the  number of leaving emp loyees by their decision during  the fiscal year with the average number of employees  (headcount)  across  the  year.  Contra cts  of  emp loyees  performing work outside an employment relationship are  excluded.  Termination  based  on  the  legal  a ct  initiated  by  an  employee  is  considered  voluntary  termination.  MONETA collects employee information in the internal  HR  system.  G e nder  data  are  stored  according  to  the  choi ce  made  by  employees  and  members  of  the  Management  and  Supervisory  Boards  and  may  be  changed upon their request. As at 31 December 2024,  only two genders (female and male) were reported in  the system. The  following  table  shows  the  distribution  of  MONETA’s  employees  by  gender  as  a  c omparison  between 2023 and 2024. Gender 31 Dec 2023 31 Dec 2024 Female 1,602 1,581 Male 978 1,006 Other 0 0 Not reported 0 0 Total 2,580 2,587 SUSTAINABILITY STATEMENT – S1 374 SUSTAINABILITY STATEMENT Annual Financial Report 2024 This table shows a further breakdown of MONETA’s employees by gender and type of contract as at 31 December  of the respective year.  No. of headcount Female Male Other Not disclosed Total 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Employees 31   1,602 1,581 978 1,006 0 0 0 0 2,580 2,587 Permanent employees 32   1,436 1,420 928 949 0 0 0 0 2,364 2,369 Temporary employees 33   166 161 50 57 0 0 0 0 216 218 Non-guaranteed hours  employees 34 86 52 18 22 0 0 0 0 104 74 Full-time employees 35   1,327 1,254 949 966 0 0 0 0 2,276 2,220 Part-time employees 36   275 327 29 40 0 0 0 0 304 367 MONETA will report figures for non-employees in the next report. 3.1.8 Diversity This  section  describes  MONETA’s  employees  in  terms  of  gender  and  age  diver sity.  The  following  table  shows  employee numbers by age.  31 Dec 2023 31 Dec 2024 Headcount % Headcount % Und er 30 years old 466 18 477 18 Between 30 and 50 years old 1,639 64 1,584 62 Ov er 50 years old 476 19 526 20 This table shows number of employees at the top management level distributed by gender. 37 Gender 31 Dec 2023 31 Dec 2024 No. % No. % Female 6 40 6 40 Male 9 60 9 60 Other 0 0 0 0 Not d isclosed  0 0 0 0 Total 15 100 15 100 31   The number of employees in line with Section 15 of the Decree No. 518/2004 Coll. as amended. This number of employees takes into consideration only pe rsons  in an employment relationship with the company, meaning the contracts on performing w ork outside an employment relationship are excluded. 32   Emplo yment contracts concluded for an indefinite term. 33   Employment contracts concluded for a definite term, either as an exact date or any event (typically: temporary contracts during maternity/parental leave). 34   Work performed outside of an employment relationship based on the Agreement to Complete a Job or Agreement to Perform Work. As of 31 December 2024,  there is no valid Agreement to Complete a Job for any person. 35   Employment contrac ts with agreed working time at the level of full-time employment, i.e. 40 hours per week (no multiple working shifts in place). 36   Employment contracts with agreed working time below the level of full-time equivalent, i.e. 40 hours per week. 37   All reported figures and subtopics co nsidered only employees with employment including members of the Management Board. Work performed outside an  employment relationship is excluded. In preparation of this disclosure, MONETA defines top management as all members of the management body according  to Section 2 lit (l) of Act No. 256/2004 Coll. as amended, Capital Market Act, i.e. members of both the Management Board and Supervisory Bo ard. 3.1.9 Adequate Wages All of MONETA’s employee s are paid adequate wages  using the guaranteed wage as the adequate benchmark  set by the Czech government according to Section 112  of  the  Labour  C ode.  The  level  of  salaries  is  subject  to regular review, at least once a year to ensure that  adequate wages are in place. 3.1.10 Social protection All  of  MONETA’s  employees  are  covered  by  social  protection  through  public  programmes  or  benefits  offered  against  loss  of  income  due  to  sickness,  unemployment,  employment  injury  and  acquired  disability, parental leave, and retirement.  SUSTAINABILITY STATEMENT – S1 375 SUSTAINABILITY STATEMENT Annual Financial Report 2024 3.1.11 Persons with disabilities There  are  no  leg al  restric tions  on  th e  collecti on  of  data  regarding  persons  with  disabilities  amongst  MONETA’s employees. The percentage of persons with  disabilities  amongst MONETA’s  employees was  1.31%  as  of  31  December  2024.  The  following  persons  are  considered as persons with disabilities: •  persons with any confirmed degree of disability (first,  secon d, or third) proven by the respective document, •  disabled persons based o n the valid decision of the  social se curity (Czech Social Secur ity Administration)  or respective employm e nt office, •  persons who had be e n assessed within the first or  secon d degree of disability are no longer disabled  within 12 months from the date of loss o f disability  status. Considering  the  soc ial  disadvantages  for  this  group  of  employees,  MONETA  supports  persons  wi th  any  kind  of  disability  through  disability  programme  with  regular  financial  contributions  on  an  annual  basis.  The  applicatio n  of  employees  for  parti cipation  in  this  progr amme gives  an  overview  of  the  number  of  disabled employees. 3.1.12 Training and skills development As  previo usly  described  in  section  3.1.5  Actions,  MONE TA  focuses  on  the  development  of  its  employees.  The  following  table  show s  the percentage  breakdown  o f  regular  performance  and  career  development  review s  by  gender and the average number of training hours per employee.  Female Male Total 2023 2024 2023 2024 2023 2024 Percentage of employees that  participated in regular perfo rmance  and career development re views  97 97 97 98 97 97 Top management 100 100 100 100 100 100 Senior management 94 100 98 100 97 100 Other managers 100 100 100 99 100 100 Sales st aff 96 97 96 96 96 97 Other employees 98 97 98 98 98 98 Average number of training hours per  employee 39.0 39.1 27.7 27.9 33.4 3 4 .9 3.1.13 Work-life balance All MONETA’s employees are entitled to family-related leave through social policy. This table shows the number of  employees who were using  family-related leaves in the gi ven year divided by gender an d the percentage of those  employees out of the total active headcount as at 31 December of the respective year. Gender 31 Dec 2023 31 Dec 2024 Headcount % of total No. of employees Headcount % of total No. of employees Female 55 4 21 484 19 Male 40 2 26 1 Other 0 0 0 0 Not disclosed 0 0 0 0 Total 594 23 510 20 3.1.14 Remuneration and pay gap The  Group’s  gender  pay  gap,  as  defined  by  the  European Sustainability Reporting Standard, is 32% in  2024, expressed as a difference between the median  of  remuneration  of  women  and  men  across  the  organization.  The  median  was  u sed  to  exclude  the  impact of extrem e values on the ratio itself.  MONETA has bee n calculating the gender pay gap since  2019,  using  Bloomberg  methodology.  For  details  see  section 3.1.5 Actions. The used approach for the gender  SUSTAINABILITY STATEMENT – S1 376 SUSTAINABILITY STATEMENT Annual Financial Report 2024 pay gap follows the principle “equal pay for equal work”,  comparing  the  remuneration  of  men  and  women  on  the job positions with the same job evaluation (grading)  accor ding to Korn Fe rry’s methodology. For each group  of jobs, the median of total remuneration is calculated  as a gap between male and female employees. The total  adjusted  pay  gap for  the whole  Gr oup is  calculated  as  the average of th ose gaps and was 1.44% in 2024. The  remuneration ratio stood at 868% for the same period.  3.1.15 Incidents and complaints Internal ombudsmen handled complaints and provided  advice for, among other things, the following areas:  •  improper  and  unprofessional  behaviour  of  a colleague in the workplace, •  approval of days for employees above the limit of  statutory leave, •  repeated improper behaviour of a branch visitor, •  suspe cted  fraudulent  condu ct  by  a  third  party  related to the use of a current account at MONETA  Money Bank, a.s.  While handling these complaints, internal ombudsmen  did not record any serious breach of inter nal o r external  polic ies and none of the c omplaints was identified as  related  to  breaches  of  human  rights  nor  resulted  in  finan cial penalties. Internal ombudsme n duly discussed  all areas in question with the respective notifiers and,  where legitimate, ensured remediation measures were  applied with immediate effect. The  following  tabl e  shows  MONETA’s  incidents,  complaints and severe human rights impacts.  Type of incident or complaint 31 Dec 2023 31 Dec 2024 Number of incidents of  discrimination 0 0 Number of complaints filed through  cha nnels for own worke rs to raise  concerns 3 14 Number of complaints filed to  National Contact Points for OECD  Multinational Enterprises 0 0 Amount of material fines, penalties,  and compensation for damages as  result of violations regarding s ocial  and human rights factors 0 0 Number of sev ere human rights  issues and incidents co nnected to  own workforce 0 0 Number of sev ere human rights  issues and incidents co nnected to  own workforce that are violati ons of  UN Global Compact Principles and  OECD Guidelines for Multinational  Enterprises 0 0 Amount of material fines, penalties,  and compensation for severe  human rights issues and incidents  connected to own workforce 0 0 Number of sev ere human rights  cases where undertaking played a  role in securing remedies for those  affected 0 0 3.2 CONSUMERS & END-USERS 3.2.1 Material sustainability-related impacts and risks MONETA  aspires  to  be  recognised  as  the  most  innovative financial services organisation in the Czech Republic  by its clients  and  th e  communities  in  whi ch  it oper ates. The organisation aims to become  a digital  leader in the Czech banking market, offering speed and  convenience in the sale and servicing of products.  Clients’  protection  and  per sonal  data  securi ty  and  privacy are crucial fo r building long-term relationships  based  on  mutual  trust.  Even  more  so,  today’s  digital  landscape  underlines  the  growing  threat  of  possible  security  events  and  the  need  for  proper  handling  of  client data. MONETA respects the privacy of its clients and will always act in line with the principles of bank  secrecy and client data security. Clear  information  enables  clients  to  understand  the  features,  benefits,  and  risks  associated  with  various  banking  products.  This  understanding  allows  the m  to make informed decisions that best align with their  finan cial needs and  goals. Poor financial decisions by  client s  can  lead  to  neg ative  outcomes,  particularly  for vulnerab le groups such as low -income individuals,  minorities,  and  people  with  disabilities,  wh o  may  encounter discriminatory practices in lending, account  acces s , and customer service. MONETA  makes  every  effort  to  provid e  clear  and  transparent  information  about  its  products  to  both  current  and  potential  c ustomers,  e nabling  them  to  make  informed  choices.  MONETA  regards  customer  satisfaction as a cornerstone of the Group‘s long-term  success. 3.2.2 Policies   As  a  financial  institution,  MONETA  is  aware  of  the  sensitivity of the data which i t p rocesses. As MONETA  operates  only  within  the  EU  market  and  primarily  within the Czech  Republic, it is fully  subjected to the  strict requirements of the GDPR which aims to increase  the  protection  of  fundamental  rights  and  freed oms  relating to privacy and data protection of in dividuals.  MONETA’s data-related policies and processes are fully  in  line  with  the  GDPR,  and  MONETA  strives  to  ensure  effecti ve  con sum e r  data  protection,  as  privacy  is  a  fundamental  right that  is enshrin ed in  the Universal  Declaration of Human Rights (Article 12), the European  Convention  of  Human  Rights  (Article  8),  and  the  European Charter of Fundamental Rights (Article 7). The  Charter of Fundamental Rights also addresses the right  to data  protection (Article  8). Any potential  issues are  SUSTAINABILITY STATEMENT – S4 377 SUSTAINABILITY STATEMENT Annual Financial Report 2024 subject  to  seni or  management  engagement  through  estab lished  reporting  c hann e ls.  The  detailed  list  of  MONETA’s policies that cover data processes is included  in the Appendix of this Sustainability Statement. 3.2.3 Engagement with clients MONETA  sees  the  satisfaction  of  its  clients  as  a fo undation for the Group’s long-term succ e ss. Among  other things, it is crucial for  clients to obtain clear and  transparent information. It therefore takes direct steps  aimed  at  increasing  transparency  and  information  availability. Clients  can  get  in  touch  in  person  in  any  of  the  1 24  branches,  via  a  contact  centre,  onlin e  chat,  social  media, digital channels or by contact form.    In 2024,  service calls accounted  for the  l argest share  of  incoming  client  requests,  service  clients’  requests  included  questions  from  web  forms  and  internet  banking.  The  mo st  frequent  types  of  requests  were  for  product  and  digital  channel  support  (new  versions, suppo rt for channe l functionality, setting up  online  products  and  client  transactions),  transaction  enquiries  and  help  with  payment  c ard  set-up.  The  Group is therefore focusing on  quality and complexity  in  its  se rvice  support,  streamlining  and  simplifying  the ability to find the information on its website that  client s have asked for the most . Some services can now  be set up using voice machines. The Claims and Complaints Department is centred on  custome r satisfac tion. In order to measure and be able  to act on issues of custom e r satisfaction, MONETA uses  its feedTRACK platform to collect, analyse, and address  custome r  feedbac k,  which  is  obtained  at  point s  of  interaction between the Group and the client.  In 2024, MONETA resolved a total of 27,266 claims from  its clients, of which 3,429 38  were legitimate.  MONETA  also  send s  questionnaires  to  those  clients  who have not visited  a  branch in the last year to get  their  feedback  and  suggestions  for  improvement.  All  MONETA comp anies are using this too l, with 12 types  of  c lient  questionnaires  available  in  the  application  itself. In this way, the Group received more than 24,000  completed questionnaires in 2024. A pproximately one- third of them contain client comments. MONETA measures its Net Promoter Score (“NPS”) in  terms of overall customer experience and service level  for the Contact Ce ntre and the branches. In  2024,  the  overall  customer  experience  for  the  Cont act  Centre  was 65  and  the service  level  was  70,  38   Card transaction claims are not included. while  for  th e  br anches the  numbers were  78 and  82  respectively. 3.2.4 Client Ombudsman To ensure  the  satisfaction of all clients, MONETA  has  a de dicated Client Ombudsman and Client O mbudsman  Team  which  respo nds to  requests  of  clients  who  are  not  satisfied  with  the  outco me  of  their  complaint  proce dure.  The Ombudsman also  reviews and  assists  with other spec ific or serious cases to identify the root  cause of the situation with the purpose of implementing  remediation mechanisms. If  cli e nts  are  not  satisfied  with  the  handling  of  their  complaints  or  claims  by  th e  Complaints  and  Claims  Department,  MONETA’s  Client’s  Ombudsman  team  takes on the case. The scope of the Client’s Ombudsman  includes  also  some  other  specific  cases,  such  as  complaints  escalated  to  the  Financial  Arbiter  or  the  Czech  National  Bank,  or  complaints  involving  a  large  amount  of  money.  The  O mbudsman  also  proposes  appropr iate  solutions  and  preventative  mechanisms  based  on  the  problems’  root  causes .  In  the  period  from  January  to  December  2024,  the  Ombudsman  and his team dealt wi th a total of 231 cases of serious  complaints  from  clients.  The  reasons  for  these  complaints most often concerned procedural failures, technic al  or  human  errors  or  misunde rstanding  of  products and se rvices. The whistleblowing line, as descri bed in section 4.1.3  Business conduct policies and co rporate culture, is also  available to clients to raise any possible c oncerns.  The  other  opportunities  for  client s  to  engage  with  the  Group  in  case  of  any  concerns  or  complaints  that  are  described  in  section  3.2.3  Engagement  with  clients  inclu de  the  resolution  of  clients’  issues  and  th e  impleme ntation  of  their  feedback  into  the  Group’s processes. 3.2.5 Actions Data privacy MONETA  recognises  the  critical  importance  of  data  security and privacy, particularly as it handles sensitive  client  data  that  requires  the  utmost  prote ction.  The  Group builds long-term  relationships based on mutual  trust  and  sees  the  security  and  proper  handling  of  client data as a hi gh-priority matter. The  processes  in  place  to  ensure  data  security  and  privacy  are  guided  by  legislation,  suc h  as  the  Czech  Charter  of  Fundamental  Rights  and  Freedoms,  Act  No.  21/1992  Coll.,  on  Banks,  Act  No.  181/2014  Coll.,  SUSTAINABILITY STATEMENT – S4 378 SUSTAINABILITY STATEMENT Annual Financial Report 2024 on  Cyber  Security  and  Change  of  Related  Acts,  Digital  Operational  Resilience  Act  (“DORA”),  Act  No.  110/2019  Coll.,  on  Per sonal  Data  Processing  Act  and  the  General  Data  Protection  Regulation  (“GDPR”).  The  rules  set  by  these  regulations  are  implemented  into  MONETA’s  proc esses  and  include  activities  such  as  providing  information  on  processing  to  clients,  dealing with client requests regarding data protection, conducting  data  protection  impact  ass essments  in  relation to the rights of  individuals or keeping record s  of processing ac tivities. MONETA also complies with the  Framework Interpretation of certain provisions of the  GDPR prepared  by the Czech Banking Association. The  aforementione d legislation also sets forth the baseline  stand ard  for  the  security  measures  which  MONETA  implements and continuously strives to improve. The  Group  proc e sses  clients’  personal  information  in  a  str ictly  controlled  manner  to  ensure  the  proper  handling  of  this  data,  including  proper  re moval  of  personal  data  after  the  appropriate  period  has  passed as set in Act No. 21/1992 Coll., on Banks, an d  Act No.  253/2008  Coll., on  Ce rtain  Measures  against  the  Legalisation  of  Proceeds  of  Cr i me  and  Terrorist  Financing.  Data protection at MONETA is subject to management oversight and any i ssues in this area ar e always brought  to  the  attention  of  senior  management  through  established  reporting  channels.  MONETA  is  jointly  responsible for the protection of cli e nt data together  with its suppliers and interme diaries, so this relationship  is always governed by a comprehe nsive perso nal data  processing  and  confidentiality  agreement.  These  agreements  c learly  set  out  the  requirements  that  suppliers  must  compl y  wi th  and  have  regulated  in  their inter nal regulations and which the supp liers are  obliged to follow. Access to information about products and services MONETA places a strong emphasis on client protection,  from responsible marketing to the eventual ter mination  of the contractual relationship. It fully comp lies with all  legislation relating to consumer protection and, where  possib le, goes above and beyond legal requirements.  The  Group  plans  to  continue  fo cusing  on  providing  banking  products  and  services  to  clients  and  on  improving  existing  and  future  client  pr ocesses  to  maintain and improve  its positio n  as a digital  market  leader.  It  participates  in  the  development  of  and  adherence  to  the  ethical  standards  for  consumer  protection  developed  by  the  Czech  Banking  Association.  As  part  of  its  activities,  MONETA  also  regularly cooperate with the Czech National Bank and  the Financial Arbiter. MONETA str ives to eliminate and prevent any potential  conflict of interest that all employees, especially th ose  in customer-facing positions, might have. Such matters  are deeply engraved within MONETA’s Code of Ethics  and  internal  polici e s  (such  as  Rules  for  Prevention  and Management of Conflict of Interest or Incentives Sche mes) with w hich all employees must comply. MONETA’s employees are to act in the best faith towards  custom e rs and be transparent an d honest when offering  consumer  financial  products.  All  employees must  act  in accordanc e  with the relevant consum e r pro tection  legislation,  such  as  the  credi t  mortgage  directive,  and  respect  bank  secrecy  principles.  MONETA  also  commits  to  responsible  marketing  and  client-facing  communicati on,  as  fair  and  transparent  marketing  and  advertising stre ngthen  brand  confidence.  It  uses  true, current and clear information in all its marketing  materials and avoids  misleading  information. Inter nal  polic ies  govern  what  language  MONE TA  sho uld  use  and  in  what  manner  it  shoul d  c ommunicate  with  its  custom e rs so that any information is clear, concise and  free from misleading wording. Furthermore, MONETA  never targets childr e n under the age of 15 in any of its  communicati on. To  adjust  quality  standards,  MONETA  uses  the  experience  and  expectations  of  clients,  which  were  gathered  from  satis factio n  surveys  and  interactions  with  clients themselves.  As  of  1  January  2023, these  stan dards  were  adjusted  and  updated  to  define  the  required  and  binding  level  of  service  (for  staff  and  branches)  that  is  provided  to  all  clients.  The  quality  stan dards  relate  to  the  professional  approach  and  expertise  of  bankers,  the  atmosphere  and  facilities  of a branch and they are also reflected i n the branch  network  concept.  As  part  of  its  commitment  to  responsible banking for its sales processes, the Group  also sets and m onitors compliance with internal policies  and  legislative  regulations  and  the  company’s  ethical  rules through Post Sales Controls. This is a key quality  control element of product or service setups, including  third-party pro ducts  or selected  pr oducts negotiated  fully  online.  A  total  of  13  products  were  included  in  Post  Sales  C ontrols.  By  the  end  of  2024,  more  than  137,000 Post Sales Controls questionnaires were s e nt  out. 3.2.6 Targets In  2024,  MONETA  did  not  set  any  quantifiable  goals.  Any  impacts  are  prevented  and  managed  within  the  framework  of  existin g  po licies  and  procedures,  with  the  aim  of  preventing  any  harm  to  its  cli e nts  fr om  potential breaches in its protoco ls.  In 2024, there were no si gnificant complaints relating  to breaches of cli e nt privacy and loss of client data. SUSTAINABILITY STATEMENT – S4 379 SUSTAINABILITY STATEMENT Annual Financial Report 2024 3.2.7 Cybersecurity – entity-specific topic Material sustainability-related impacts and risks Cybe rsecurity  has  become  a  paramount  concern  for  organisations  across  all  sectors ,  particularly  for  finan cial institutions like MONETA. During its processes  MONETA  collects  extensive  personal  data,  which,  if  not  properly  protected,  can  lead  to  identity  theft  and financial fraud. In the event of a security breach,  sensitive  c lient  data  may  be  lo st,  which  would  lead  to  financial  losses,  sanctions  and  reput ation  loss  for  the Group, but  it would  also compromise customers’  right  to  personal  privacy,  security  and  integrity.  Cybe rsecurity and data privacy are intrinsically linked,  as  robust  cybersecurity  measures  are  essential  to  safeguarding  personal and finan cial information  from  unauthorised access and breache s. While  modern  banking  services,  such  as  online  and  mobile  banking,  offer  clients  convenient  and  secure  ways to manage their finances, conduct transactions,  and monitor their accounts, navigating these processes  can be challenging, particularly for individuals who are  not technologically adept. These clients require robust  protection against fraud. Nonetheless, all clients f ace  risks  of  cyberfraud,  inc luding  various  manipulative  techniques such as phishing, vishing, etc. Based  on  MONETA’s  observations,  the  victims  of  payment  fraud  attacks  qualify  fr om  various  socio-demographic  groups  since  fraudsters  usually  count on the moment  of  surprise, fear and impulsive  actions  base d  on  invoked  emotions.  Th e refore,  rather  than  designing  a  tailored  approach  to  variou s  socio-demographic profiles, MONETA aims at providing general education to its customers increasing general  awareness  about these  r isks.  Hand  in  hand  with  this  approach, MONETA also aims at increasing its cap ability  to  identify  and  block  suspicious  behaviour  based  on  transactional or online data. MONETA employs a strategy which aims to: 1.  Increase the abili ty to d etect and block suspicious  behaviour. This focu ses on analyses of various client  data ty pes which include online data such as device  specific data,  or  tracking  of  login  patterns  as well  as transactional  data. The fraud detection  system  is  ther efore  based  on  anomaly  detection  in  the  client’s conduct. 2.  Fortify the access to online channels.  This focuses  on  the  prevention  of  situations  under  which  the  fraudster manages to take over the co ntrol of the  client’s a ccount. 3.  Conduct  communication  campaign  aiming  to  increase  th e  awareness  of  MONETA’s  clients  with  respect to various types of attack vectors. MONETA  also  foc uses  on  cooperation  with  other  cybersecurity  experts:  MONE TA  partnered  up  with  a  cyber  threat  intelligence  vendo r.  Cyber  threat  intelligence  allows  the  Group  to  prevent,  mitigate  or  reac t  to  cybersecurity  risks  quickly  (even  before  they  occur  or  during  very  early  stages).  This  enables  MONETA  to  defend  its  assets  and  the  assets  of  its  client s  (e.g.  Internet  Banka  credentials,  bank  cards  etc.)  mor e  proactively  by  maintaining  up-to-date  information  on  a  vast  number  of  threats,  including  methods, vulnerabilities, targets, and malicious actors. Policies The  detailed  list  of  MONETA’s  polic ies  that  cover  cybersecurity  is  included  in  the  Appendix  of  this  Sustainability Statement. Actions For  the  Group,  ensuring  the  highest  standards  of  cybersecurity is not just a necessity but a fundamental  responsibility  to  protect  its  clients  from  potential  threats  such  as  phishing,  malware,  identity  theft,  and  data  breaches.  By  prioritising  cybersecurity,  the  Group  demonstrates  its  commitment  to  maintaining  the  privacy  and  trust  of  its  clients  i n  an  increasingly  interconnected  world.  MONETA  therefore  has  strict  rules  around  cybersecurity  processes  and  customer  data handling. MONETA  integrates  advanced  data  protection  tools  into  it s  operations.  The  Cybersecurity  Department  actively  collaborates  with  relevant  industry  associations and  regulatory authorities, inclu ding the  Czech National Bank, the National Office for Cyber and  Information  Security,  the  Czech  Banking  Association,  and  the  Police  of  the  Czech  Republic,  among  others.  In safeguarding the Group‘s assets, the Cybersecurity  Department  partners  with  l eading  companies  and  third-party  provider s ,  leveraging  their  high-quality  tools, services, an d expertise. MONETA’s cybersecurity strategy is fo unded on three  primary  pillar s:  a  risk-based  approach,  cybersecurity  governance,  and  legal  compliance.  The  risk-based  approach  focuses  on  mapping  the  threat  l andscape,  identifying key threat actors, early detection of current  and  emerging  risks,  and  assessing  their  potential  likelihood  and  i mpact.  It  also  involves  defining  and  implementing preventive or mitigating measures. Cybersecurity  governance  emphasises  the  comprehensive,  harmonised  management  of  all  cybersecurity areas, the specification of security rules and  standards,  setting  explicit  security  objectives  for  each domain, establishing KPIs, and ensuring thorough  reporting and moni toring. SUSTAINABILITY STATEMENT – S4 380 SUSTAINABILITY STATEMENT Annual Financial Report 2024 To  maintain  compliance  with  legal  requirem e nts,  MONETA  prioritises  transparency  in  its  cybersecurity  activities with both internal and external stakeholders  and  fosters  cooperation  with  supervisory  authorities  and associations. In  2024,  MONETA  has  seen  an  increased  wave  of  cyber-attacks  targeting  clients  across  the  banking  sectors.  For  this  reas on,  MONETA  has  intensified  its  efforts to help prevent these losses on multiple fro nts:  First,  the  Group  has  initiated  investments  into  AI  applied to clients’ transactional behaviour to e nhance  its  ability  to  d etect  and  block  suspicious  b e havioural  patterns.  MONETA  has  focused  on  more  efficient  application of  already  available  technology  and  tools  and  believes  that  these  investments  will  in  the  near  future  significantly  improve  its  ability  to  detect  and  prevent cyber frauds and related client l osses. Second,  the  Group  has  reinfo rced  its  security  app roach  to  new  device  r egistration  to  further  reduce  potential  vulnerability.  Finally,  MONETA  has  launched  a  new  communicati on campaign to increase awareness of its  client s with respect to various t ypes of attack vectors. More  details  regarding  MONETA’s  general  approa ch  and cybersecurity strategy, including the management  of cybersecurity-related risks, can be found in Chapter 5.5.2 of the Annual Financial Report 2024. The  data  protection  tools  that  are  implemented  into  the  Group’s  day-to-day  activities  are  governed  by  the  cybersecurity strate gy, which is a risk-based app roach on  top of legal c ompliance. MONETA also bases its approac h  on  the transparency of  its  cy bersecurity  activities and  cooperation  with  relevant  industry  associations  and  regulatory authorities suc h as the Czech National B ank,  the National Office for Cyber and Information Se curity,  the  Czech  Banking  Association,  and  the  Police  of  the  Czech  Republic.  MONETA  has  also  partnered  with  an  award-winning  cybe r  threat  intelligence  provide r.  This  allows the Group to quickly pr event, mitigate or respond  to  cyber se curity  risks  –  even  before they  occur or  in  the  very early  stages.  In  2024,  the Group  was  able  to  prevent fraud and protect 3,078 clients from cybercrime  attempts.  188  cases  involved  the  detection  of  s tolen  payment  card details,  and 1,808 cases involved stolen  client  login  credentials  obtain ed  by  attackers  from  a vulnerable third party through phishing attack s or with  malware present on client devices (PCs, smartphones).  In 2024, 2,111 MONETA clients were affected by online  fraud, leading to losses amounting to CZK 125 million. However, thanks to swift acti ons and security measures,  an additional CZK 134 million were saved, highlighting  the  effectiveness  of  prevention  and  response  by  the  Group,  even  though  the  risk  of  online  fraud  remains  significant.  Th ese  figures  underscore  the  impo rtance  of  continuous  protection  and  client  education  on  cybersecurity. Examples of online fraud cases: •  Phishing  scams:  Attackers  send  fraudulent  emails  or  messages  that  appear  to  come  from  trusted  institutions,  tricking  users  into  providing  sensitive  information like logi n credentials or financial details. •  Malware  att acks:  Cybercriminals  use  malici ous  software  to  gain  access  to  users’  computers  or  devices, stealing pers onal or financial data without  their knowled ge. •  Investment Fraud: Scammers lure victims with  fake  investment  opportunities,  often  promising  high  returns, onl y to steal their money once invested. •  Online  shopping  Scams:  Fraudsters  set  up  fake  online stores  or  auction sites where users pay for  products or services that are never delivered. These  cases  emphasise  the  need  for  vigilance  when  conducting  transactions  or  sharing  personal  information online. All of MONETA’s employees are regularly trained in the  area of cybersecurity, including up-to-date knowledge  distributed via intranet and email, quarterly e-learning  courses, and the use of digital screens in headquarters.  All  new  hires  and  new  contractors  must  complete  a  special  introductory  course  in  data  protection  and  information  security,  which  is  then  repeated  regularly.  Development  of  sec urity  awareness  within  the  company  is  ensured  through  a dditional  courses  (“refre sher”)  w hich  are  held  quarterly.  Each  course  focuses  in  more  detail  on  different  security  topics.  The  Group  also  deploys  phishing simulations  to raise  awareness of the best course of action for employees in case  of  such potential  threats. To ensure data loss  prevention,  MONE TA  uses  the “need  to  know”  basis,  where  access  to  information  is  limite d  appropriately.  Data classification is enforced through out the Group,  with  special attention  paid  to  personal  and  sensitive  data. The Group has deployed the Data Loss Prevention  (DLP)  solution  which  protects  its  asse ts  from  unauthorised use of valuable corporate data by internal  users through a number of means, including hardware  and content filtering and blocking confidential data on  any removable storage devices (e.g. USB devices). MONETA  does  not  disclose  financial  information  regarding operational expenditures (OPEX) and capital expenditures (CAPEX) in relation to a ction plans for its  material sustainability topics. Targets MONETA  will  analyse  the  impacts  on  it s  clients  in  relation to cyber security and payment fraud prevention  in 2025 with the intention to set up relevant targets in this area. SUSTAINABILITY STATEMENT – S4 381 SUSTAINABILITY STATEMENT Annual Financial Report 2024 4. GOVERNANCE THROUGH VALUES As  a financial institution, MONETA is  subject to strict  regulation and scrutiny by numerous oversight bodies.  High  ethical  standards  are  promoted  by  adherence  to  the  Code  of  Ethics, MONETA’s  values  and  internal  polic ies covering every aspect of i ts business con duct. 4.1 BUSINESS CONDUCT 4.1.1 ESG Corporate governance framework The  Supervisory and  Management  Boards are  crucial  in  promoting  responsible  business  practic e s.  They  oversee  the  implementation  and  adherence  to  protocols  and  guidelines  related  to  business  ethics,  compliance, and other relevant matters. These bodies  39   Chairman of the Supervisory Board. set  the  strategic  framework  for  business  conduct,  ensuring  alignment  with  the  Group’s  vision,  mission,  and long-ter m goals. Their expertise is derived from academic qualifications  and  extensive  experience  in  managing  ethical  and  compliant  business  operations.  To  stay  current  with  the  latest  trends,  challenges,  and  best  practices  in  business conduct, they regularly participate in training  sessio n s , workshops, and seminars. This commi tment  to continuous learning ensures they are well-equipped  to guide the Group effectively. MONETA  defines  its  Administrative,  Supervisory  and  Management bodies as members of the Management  Board, Supervisory Board and Key Executive Managers,  for more details see C hap ter 4 – Corporate Governance  Statement of the Annual Financial Report.   The  table  below  shows  expertise  and  skills  of  its  Administrative,  Supervisory  and  Management  bodi es  in  sustainability matters.  Body Member M/F Management link/ designation reason Financial Expert Industry Expert Management Expert ESG-relevant skills Supervisory   Board Gabriel Eichler 39   M X X Miroslav Singer M X X Clare Ronald Clarke M Denis Arthur Hall M X X X Kateřina Jirásková F X Zuzana Prokopcová F X X Klára Escobar F Employee   representative X Own workforce Monika Kalivodová F Employee   representative X X X Customers and  End-users Linda Kavanová F Employee   representative X X Management  Board Tomáš Spurný  M Executive X X Carl Norman Vökt M Executive X X X Busi ness conduct,  Cybersecurity, Climate change  mitigation Jan Friček M E xecutive X X Business conduct Jan Novotný M Executive X X Customers and  End-users Klára Starková F Executive X X Cybersecurity,  Customers and  End-users Andrew John Gerber M  Executive X X Consumers and  End-Users Key Executive  Managers Jiří Huml M X Climate change  mitigation Jakub Valenta M X Cybersecurit y Sandra Kalijanko F X Customers and  End-users All  m e mbers of  MONETAs administrative,  management  and supervisory  bodies mentioned in  the table receive  regular  training  on  ESG  matters.  In  addition, they  possess skills  and  expertise  related  to  their  profession  and/ or previous job experience. For the last column, ESR S standards material for MONETA were used to describe the  relevancy of ESG skills . Out of the 18 members of administr ative, management and supervisory bo dies, 39% are  women and 61% are men.   SUSTAINABILITY STATEMENT – G1 382 SUSTAINABILITY STATEMENT Annual Financial Report 2024 40   Source: https://esg.moneta.cz/documents/19688 341/19803994/mmb-diversity-equity-and-inclusion-policy-2022.pdf. 4.1.2 Material sustainability-related impact and risks For  the  identi fication  of  material  topics,  MONETA  used  its 2024 double  materiality  assessment,  further  information  on  which  can  be  found  in  section  1.8  Double materiality assessment.   Specifically  for  this  topic,  MONETA  focu sed  on  analysing  its  operations,  products,  services,  and  regulatory  environment.  This  includes  understanding  the Group’s role in the financial system, its client base,  and it s i mpact on the economy and society. MONETA  acknowledges  the  critical  role  of  its  corp orate governance and under stands that incidents  of  corruption  and  br ibery,  coupled  w ith  a  flawed  corp orate  culture  and  inadequate  protection  for  whistleblowers,  can  lead  to  substantial  adverse  impacts  on  society,  economies,  and individuals, such  as clients and employees.  MONETA recognises that the s wift pace of changes in  the  regulatory  environment  presents  a  risk  of  failing  to  comply  with  or  properly  adapt  to  new  or  revised  regulations,  potentially  leading  to  sanctions  and  finan cial losses. Integrating  e nvi ronmental,  social,  and  governance  factors  into  credit  anal ysis  and  lending  decisions  not  only  enhances  MONETA’s  r isk  management  and  compliance  but  also  supports  broader  socie tal  objectives of sustainability and social responsibility. At  the same time, th e risk of noncompliance or inadequate  adaptation  to  new  and  am e nded  regulations,  due  to  the  rapidly  evolving  regulatory  environme nt,  may  result in sanctions and financial losses . When banks face insolvency, various issues may arise,  such as delayed access to funds, potential alterations  to  loan  terms,  decreased  availability  of  new  credit,  and  investment  los ses.  On  a  broader  scale,  these  failures  can  r e sult  in  economic  instabili ty,  increased  unemployment,  reduced  lending,  and  governmental  inter vention.  These  elements  contribute  to  systemic  risk, where the failure of one bank can lead to instab ility  across the entire financial system. A  lack  of  effective  measures  to  prevent  or  address  these issues can diminish confidence in institutions and  weaken the foundations of legal systems. 4.1.3 Business conduct policies and corporate culture MONETA’s  culture  is  anchored by  its  Code of  Ethics  (“the Code”), which sets forth the behavioural standards  for  all  employees,  management,  and  supervisory  bodies, encap sulating the Group’s fundamental values.  The  Code  also  reflects  MONETA’s  commitments  to  various  stakeholders,  including  employees ,  clients,  shareholders, business partners, regulators , and other  third parties. As a binding document, the Code must be  upheld by all, without exception.   Central to the  Group’s success is the adherence to this  Cod e, which ensures MONETA conducts itself in a way  that enhances its reputation. Diversity is leveraged for  optimal  outcomes,  and  an  o pen  culture  is  nurtured,  characterised  by  fairness,  transparen cy,  trust,  and  respect. The values cherished by MONETA form a core aspect  of  its  organisational  c ulture. The  Group’s  values  gain  their  meaning  thr ough  the  actions  and  attitudes  o f  its  employees  and  governing  bodies.  It  is  through  collective  adoption  that  MONETA’s  values  become  deeply integrated into everyday practice.  The core values of MONETA are: •  Entrepreneurship  •  Respect •  Cooperation and e ngagement •  Accountability •  Credib i lity and integrity These  cor e  values  form  MONETA’s  c orporate  culture  and  are  embedded  through  policies,  procedures  and  monitoring  pro grammes  de pending  on  the  area  to  which  they  refer.  Policies  such  as  the  DE&I  policy 40 ,  programmes  such  as  the  MON  FAIR  programme  and  MONETA’s  whistleblowing  procedure  make  up  the  Group’s corporate culture through all of its activities. To  maintain  these  standards,  all  employees  and  part-time workers undergo annual training to prevent  misconduct,  un ethical  be haviour,  and  conflic ts  of  interest. Moreover, MONETA adhe res to the ethical codes and  stan dards of the Czech Banking Associati on, including  the  Client  Mobility  Standards,  the  Code  of  Conduct  between  Banks  and  Clients,  and  the  C ode  of  Ethics  of  the  Financial  Market.  As  a  member  of  the  Czech  Institute o f Internal Auditors, the Group’s activities align  with the Internatio nal Framework for the Professional  Practice  of  Internal  Audi ting.  MONETA  also  upholds  additional  ethical  codes  from  othe r  institutions, such  as the Czech Association for the Capital Market and the  SUSTAINABILITY STATEMENT – G1 383 SUSTAINABILITY STATEMENT Annual Financial Report 2024 Czech Leasing and Finance Association’s Memorandum  and Ethical  policies on  consumer protection  in  credit  provision. MONETA  conducts  its  business  in  accordanc e  with  all  appli cable  laws  of  the  Czech  Republic,  European  Union legislation, as well as all applicable international treaties. These includ e, among others, Act No. 40/2009  Coll.,  the  Criminal  Code,  Act  No.  418/2011  Coll.,  on  the criminal liability of legal pers ons and pr oceedings  against  them,  Act  No.  89/2012  C oll.,  the  Civil  Code,  Act  No.  90/2012  Coll.,  on  Co mmercial  Corporati ons  and C o-operatives (Act on Commercial Co rporations),  Act  No.  69/2006  Coll.,  on  the  implementation  of  international sanctions, Act No.  143/2001 Coll., on the  protection of competition, Act No. 253/2008 Coll., on  certain measures against the legalisation of proceeds  of crime and financing of terrorism, EBA  Guidelines on  internal governance (EBA -GL-2017-11).  MONETA’s  internal  policy  framework  encompasses  several key areas: •  Prevention  of  money  laundering  and  terrorist  financing (AML/CFT policy) •  Managing  the  risk  of  fraudulent  behavi our  (Anti-Fraud Policy)  •  Prevention of improper payments •  Conflict  of  Interest  Prevention  and  Management  Policy •  Whistleblowing  •  Rules on the provision of investment services and  prevention of market abuse As a financial institution, MONETA plays a pivotal r ole in  preventing financial c rime. The most  material areas of  focus are anti-money laundering, compliance with the  requirements of international sanctions and prevention  of  financing  of  terrorism  (“AML/CFT”).  MONETA  annually di scloses info rmation regarding this practice in  the Anti-money laundering evaluation report 41 .  Within  the  Group,  roles  with  direct  custom e r  interaction  are  identified  as  the  most  vulnerab le  to  corruption  and  bribery.  Consequently,  MONETA’s  internal  fraud  detection  system  is  specifically  designed  to  monitor  these  positions.  Additionally,  all  employees  are  required  to  undergo  annual  compulsory  training  on  anti-bribery and anti-corruption practices, along with  ongoing instruction in these critical areas. It is of the utmost importance that the Group complies  with  all  requirements  set  by  regulatory  authoritie s ,  including  ESG  r e porting  requirements,  such  as  the  Corporate  Su stainability  Reporting  Directive  and  EU  Taxonomy.  The  disclosure  re quirements  set  by  the  41   Source: https://investors.moneta.cz/documents/12270853/20121822/mmb-aml-evaluation-report-2023-en.pdf. 42   Source: https://esg.moneta.cz/documents/19688341/19803994/mmb-code-of-ethics.pdf. 43   Source: https://www.moneta.cz/kontakt/whistl eblowing. regulatory authorities are closely monitored. MONETA  is  also  p reparing  for  the  disclosure  of  additional  non -financial  information  in  line  with  the  CRR  Pillar  3  disclosure  requirem e nts,  to  which  MONETA  is  not  currently  subject.  MONETA  Group  is  monitoring  its  internal  processes  and  will  adapt  its  disclosures  as  soon as these regulations become applicable. MONETA  has  robust  mechanisms  for  identifying,  reporting, and investigating concerns related to unlawful  behaviour or actions  that contradict the Group’s Code  of  Ethics 42 .  These mechanisms are  accessible  to both  internal  and  external  st akehol ders.  Concerns  can  be  reported  anonymo usly  thr ough  a  secure  system,  ensuring  confidentiality  and  protection.  The  Human  Resources  Division  oversees  adherence  to  the  Code  of Ethics, and any issues  or  inconsistencies  that arise  are to be addre ssed in accordance with the applicable  provisions of the Code. MONETA timely implemented Act No. 171/2023 Coll.,  on  the  protection  of  whistleb lowers  and  created  a  dedicated  website 43   for  this  purpose,  with  all  information  on  reporting  violations  of  applicabl e  regulations.  It  provides  its  employees  with  the  opportunity  to  anonymously  raise  concerns  or  report  any  perceived  wrongdoing, either directly to MONETA’s management  or through a dedicated independe nt r e porting line. Whistleblowing  is  one  of  the  areas  that  employees  are regularly trained on, along with the prevention of  improper payments, conflict of interest, Code of Ethics  and compliance training.  MONETA’s  employees ,  clients,  business  partners ,  suppliers  and  any  other  persons  can  re port  their  suspicions  of  po ssible  wrongdoing,  violatio n s  of  regulations  or  ethical  values  to  the  Employee  Ombudsman (Whistleblowing Officer) by: •  Confidential  telephone  line  +420  224  448  077  on  weekdays between 9:00 and 15:00; •  Electronically by email to ombudsmanCZ@moneta.cz; •  By using the contac t form on the website; and •  In  writi ng  at  the  following  addresses:  MONETA  Money Bank, a.s. / MONETA Auto, s.r.o. / MONETA  Leasing,  s.r.o. / MONETA Stavební Spořitelna, a.s.,  Ombudsman  for  Employees,  Vyskočilova  1442/1b,  140 28 Prague 4 – Michle. This  process  can  be  used  to  report  any  suspe cted  criminal  activity,  breach  of  o ther  regulations  or  unethical behaviour, for example in the following areas: SUSTAINABILITY STATEMENT – G1 384 SUSTAINABILITY STATEMENT Annual Financial Report 2024 •  Economic  crime  (money  laundering,  terrorist  financing, compliance with international sanctions,  automatic  exchange  of  information  in  FATCA/CRS  programs , etc.); •  Internal  and  external  fraud  and  othe r  attacks  on  MONETA assets; •  Corruption; •  Improper payments; •  Protection of personal data and banking secrecy; •  Misuse of information in business dealings; and •  Crime s against free competition. Acknowledgement of receipt of the notification  is sent  to the notifier within 7 days of receipt. The  notifier  is  informed  of  the  manner  in  whi ch  the  situation  has  been  resolved  and  the  results  of  the  asses sment  of  the  validity  of  the  notification  within  30  days  from  the  date  of  receipt  of  the  notification.  In  particularly  complex  cases,  this  period  may  be  extended up to 90 days. When  investigating  reports  of  rule  violations  or  unethical  behaviour,  MO NETA  follows  the  following  principles: Confidentiality – MONETA handles allegations with the  utmost respect, confidentially and, if requested by the  whistleblower, anonymously for all parties involved. Objectivity – MONETA is impartial and unbiased in its  investigation an d evaluation of allegations. Responsibility  –  MONETA  takes  all  notifications  seriously and  deals  with  them with  due  regard to  i ts  responsibility to the notifier and MONETA companies. Equality - MONETA treats all parties or persons involved  in a notification equally and does not disadvantage any  party. Sharing  -  information  on  notifications,  investigation  findings  and  corr ective  actions  are  shared  with  interested  parties,  taking  into  account  applicable  legislation  and  internal  and  Group  regulations  of  MONETA Group companies. Prohibition of retaliation  -  MONETA  and  members  of  the  statutory  bodies  are  obliged  to  protect  whistleblowers  from  all  types  of  unfair  tr eatment,  retaliation and sanctions for erroneous reports made  in good faith. A  firm  policy  is  in  plac e,  governed  by  internal  regulations,  to  pr otect  whistleblowers  from  reprisals  or  any  form  of  retaliation  for  reporting.  The  Group  promotes  transparency  and  ethical  standards  in  all  areas of its business.  MONETA  has  supported  v arious  environmental  and  social  initiatives.  Information  on  financing  environmentally  responsible  projects  can  be  foun d  in  s ection  2.2.5  Actions  and  resources.  For  soc ially  responsible  projects,  MONETA  prov ides  financial  products aimed at supporting female entrepreneurs.  MONETA  prefer s  long-term  partnerships  with  local  suppliers  whe n  possible.  Suppliers  must  adhere  to  the  Group’s  Supplier  Code  of  Ethics  and  provide  sustainability  information  through  an  ESG  questionnaire.  MONETA  focuses  on  the  supplier’s carbon footprint measurement and emission  reduction strategies. The ESG questionnaire is one of  the elements in MONETA’s supplier selection process. Implementing  ESG  repo rting  can  present  several  risks and  costs  for  MONETA.  The  company fa ces the  challenge  of  complying  with  evo lving  and  complex  ES G  regulations.  Non- compliance  may  result  in  legal  penalties  and  re putational  damage.  Establishing  robust ESG reporting frameworks, delivering accurate  high-quality  data,  and  integrating  ESG  factors  into  existing risk management f rameworks can be complex  and  resource-intensive.  Failure  to  meet  stakeholder  expectations  could  also  harm  MONETA’s  reputation  and  lead  to  losses.  To  address  these  risks,  MONETA  is  investing  in  its  systems  and  processes,  aiming  for  continuous improvem e nt in its ESG compliance.  4.1.4 Prevention and detection of corruption or bribery The investigators and the investigating committee are  entirely  independent from the  chain  of  management  involved in th e matter. This indepe ndence  is crucial to  ensure that the investigation is conducted impartially  and without any influence f rom those directly involved.  An  employee  conducting  the  investigation  is  entitled  to  inspect,  verify,  or  investigate  any  aspect  of  the  operations of the Group company concerned relating  to  the  fraud  (or  in cident  relating  to  corruption  and  bribery) under investigation, even without the consent  or  prior  notification  of  the  head  of  the  department  where the investigati on is being conducted.  The  process  for  reporting  outcomes  of  significant  fraud investigations or incidents rel ate d to corruption  and  bribery  is  structured  as  follows:  Upon  the  conclusion  of  th e  investigation,  a  detailed  report  is  compiled, outlining the findings, conclusions, and any  recommended actions.  This report  is  then  submitted  to  the  r e levant  management  and  supervisory  bodies  for  review  and  consideration.  Regular  updates  and  follow-up  meetings  are  scheduled  to  disc uss  the  implementati on  of  recommendations  and  to  address  any  further  inquiries.  This  structured  approach  ensures  that  all  key  stakeholders  are  informed  and  engaged  in  the  resolution  process,  reinforcing  SUSTAINABILITY STATEMENT – G1 385 SUSTAINABILITY STATEMENT Annual Financial Report 2024 MONETA’s commitment to transparency and effective   governance. To combat corruption and prevent conflicts of interest,  the Group has established a robust anti-corruption and  anti-bribery policy, internally titled Avoiding Improper Payments, anchored by the ethical principles outlined  in the  Code of  Ethics. The policy is consistent with the  United Nations C onvention against Corruption. This policy is supported by rigorous internal processes  that monitor the engagement with new suppliers and  the  exchange  of  gifts  w ith  clients  or  partners.  The  Group expects all employees,  partners,  and  suppliers  to  adhere  to  these  anti-corruption  standards,  which  include  the  prohib ition  of  improper  payments  and  other unethical practices. The Group actively enforces  a policy aimed at reducing the likelihood of corruption  or  bribery by  conducting  a  variety  of  annual  training  sessio n s  for  its  employees.  These  sessions  are  categorised into five key areas: prevention of improper  payments, co nflict of interest, whistleblowing, Code of  Ethics  and  compliance  training.  All  e mployees  within  the  Group  have  completed  compulsory  training  on  anti-bribery and anti-corruption practices and receive ongoing instruction in all the above-mentioned areas. Corruption  screening  is  also  carried  out  as  part  of  third-party  risk  management.  Documents  and  regulations  governing  the  management  of  fraud  risk  are  regularly  reviewed  in  light  of  current  trends  in  fraud risk in relation to financial institutions. No fraud  was detected in 2024 that had a significant impact on  MONETA’s  standard  operations  in  terms  of  damage  caused or reputational risk. There  were  no  confirmed  cases  of  corruption  during  2024. For  the  purposes  of  anti-corrup tion  and  anti-bribery  training, MONETA considers all its employees to be in  at-risk functions (2,56 6) given the nature of the banking  business. Also, for the purp oses of anti-corruption and  anti-bribery training, the Administr ative, Management  and  Supervisory  bodies  include  the  following  roles:  members  of  the  Supervisory  Board  and  members  of  the  Management  Board  of  MONETA  Money  Bank,  a.s.,  members  of  the  Management  Board  MONETA  of  Stavební  Spořitelna, a.s.,  Key  Executive  Managers,  Director Compliance, Director Legal, Director Internal  Audit, Managing Directors MONETA Leasing, Managing  Director  MONETA  Auto.  This  is  because  all  these  functions  receive  a  special  ty pe  of  training  that  is  different in form from the rest of the employees.  The table shows the training coverage of at-risk functions divided by employee group and type of training coverage. Administrative, management, and supervisory bodies Managers Employees Other own workers Training coverage   Total 27 302 2,237 -   Total received training 27 302 2,237 - Delivery method and duration   Classroom training (hours) 0 0 0 -    Computer-based training,   e-learning (hours) 378.0 151.0 1,118.5 -   Voluntary computer-based training (hours) 0 0 0 - Frequency   How often training is required annually annually annually - Topics covered   Definition of corruption x x x -   Policy x x x -   Procedures on suspicion/detection x x x - SUSTAINABILITY STATEMENT – G1 SUSTAINABILITY STATEMENT – APPENDIX 386 Annual Financial Report 2024 5. APPENDIX 5.1 DISCLOSURE REQUIREMENTS IN ESRS COVERED BY SUSTAINABILITY STATEMENT The following tables list all of the ESRS discl osure requirements in ESRS 2 and the 5 topical standards which are  material to MONETA, and which have guided the preparation of its Sustainability Statement. The Group has omitted  all the  disclosure  requirements  in the  topical  standard s  E2  -  Pollution,  E3  – Water and  marine resources,  E5  –  Resource use and circular economy, S2 – Workers i n the value chain, and S3 – Affected communities as these are  below its materiality thresh olds. The tab les can be used to navigate to information relating to a specific disclosure  requirement in the Sustainability Statement. In cases where MONETA does not yet have any information related to a disclosure r equirement or the associated data points are assessed as not material, no reference is made. Disclosure requirement Description Page Additional Info ESRS 2 General disclosures 339 BP-1 General basis for the preparation of the Sustainability Statement 339 [BP-2] Disclosures in relation to specific circumstances 339 Section 1.1 General  basis for preparation [GOV-1] Role of the ad ministrative, management and supervisory bodies 340 Section 1.2 ESG  corpor ate governance  framework [GOV-2] Information provided to and sustainability m atters addressed by administrative,  management and supervisory bodies 340 Section 1.2 ESG  corpor ate governance  framework [GOV-3] Integration of sustainability-related performance in incentiv e schemes 342 Section 1.3 Integrat ion  of sustainability-related  performance into  remuneration [GOV-4] Statement o n due diligence 343 [GOV-5] Risk management and internal controls over sustainability reporting 343 [SBM-1]  Strategy, business mod el and value chain 345 [SB M-2]  Inte rests and views of st akeholders - general 346 [SBM- 3] Material impacts, risks and opportunities and their interaction with strategy and  business model 351 [IRO-1]  Description of process to identify and assess material impacts, risks and opportunities 348 Section 1.8 Double  materiality assessment [IRO-2] Disclosure requirements in ESRS covered by the undertaking’s sustainability  statement 386 Appendix 5.1 ESRS E1 Climate change 357 [GOV-3] Integration of sustainability-related performance in incentiv e schemes 357 Section 2.2.1  Integration of  sustainability-related  performance into  remuneration [SBM- 3]  Material impacts, risks and opportunities and their interaction with strategy and  business model  357 [IRO-1] Description of processes to identify and assess material climat e-related impacts, risks  and opportunities 357 Section 2.2.2 Material  sustainability-related  impacts and risks [E1-1]  Transition plan for climate change mitigation 358 [E1-2]  Policies related to climate change mitigation and adaptation 358,391 [E1-3]   Actions and resources in rel ation to climate change policies 358 [E1-4]  Targets related to climate c hange mitigation and adaptation 360 [E1-5]  Energy consumption and mix 361 [E1-6]  Gross Scopes 1, 2, 3 and Total GHG emissions 362 [E1-7]  GHG removals and GHG mitigation projects financed through carbon cred its Not material,  hence not disclosed [E1-8]  Internal carbon pricing Not material,  hence not disclosed [E1-9] Ant icipated financial effects from material physical and transition risks and potentia l  climate-related opportunities Phase-in,  hence not disclosed SUSTAINABILITY STATEMENT – APPENDIX 387Annual Financial Report 2024 ESRS E4 Biodiversity and ecosystems 366 [SBM- 3] Material impacts, risks and opportunities and their interaction with strategy and  business model 366 [IRO-1] Description of processes to identify and assess material biodiversity and ecosystem- related impacts, risks, dependencies, a nd opportunities 366 Section 2.3.1 Material  sustainability-related  impacts and risks [E4-1]  Transition pl an on biodiversity and ecosys tems in strategy and business model 366 [E4-2] Policies related to biodiversity and ecosystems 366 [E4-3]  Actions and resources related to biodiversit y and ecosyst ems  366 [E4-4]  Targets related to biodiversity and ecosystems  366 Sect ion 2.3.5 Targets [E4-5]  Impact metrics related to biodiversity and ecosystem change 366 [E4- 6]  Ant icipated financial effects from material biodiversity an d ecosystem-related ri sks  and opportunities Phase-in,  hence not disclosed ESRS S1 Own workforce 367 [S1-SBM3] Material impacts, risks and opportunities and their interaction with strategy and  business model  367 [S1-1]  Policies related to own workforce 368,391 [S 1-2]  Processes for engaging with own workers and workers’ representatives about impacts 369 Section 3.1.3 Employee  engagement [S1-3]  Processes to remediate negative impacts and channels for own workforce to raise  concerns 369 Section 3.1.4 Employee  Ombudsman [S1-4] Taking action on material impacts on own w orkforce, and appro aches to managing  material risks and pursuing material opportunities related to own workforce, and  effectiveness of those actions  370 [S1-5]  Targets rel ated to managing material negative impacts, advancing positive impacts,  and managing materia l risks and opportunities 372 [S1-6]  Characteristics of undertaking’s employees 373 Section 3.1.7 Employee  characteristics [S1-7]  Characteristics of non-employees in undertaking’s own workforce Phase-in, hence not  disclosed [S1-8]  Collective bargaining coverage and social dialogue 369 Section 3.1.4 Employee  Ombudsman and 3.1.3  Employee engagement [S1-9]  Diversity metrics 374 [S1-10]  Adequate Wages 374 [S1-11]  Social protection 374 [S1-12]  Persons with disabilities 375 [S1-13]  Training and skills development metrics 375 [S1-14]  Health and safety metrics Not material,  hence not disclosed [S1-15]  Work-life balance metrics 375 [S1-16]   Remuneration metrics (pay gap and total remuneration) - general 375 [S1-17]   Inc idents, complaints, and severe human rights impacts -general 376 ESRS S4 Consumers and end-users 376 [S4-SBM3]  Material impacts, risks and opportunities and their interaction with strategy and  business model 376 [S4-1]  Poli cies related to consumers and end-users 376 [S4-2]  Processes for engaging with consumers and e nd- users about impacts 377 Section 3.2.3  Engagement with  clients [S4-3] Processes to remediate negative impacts and channels for consumers and end-users  to ra ise concerns 377 Section 3.2.4 Client  Ombudsman [S4-4]  Taking action on material impacts on consumers and end-users, and approaches to  managing material risks and pursuing material opportunities related to con sumers  and e nd-users, and the effectiveness of those actions 377 [S4-5]  Targets rel ated to managing material negative impacts, advancing positive impacts,  and managing materia l risks and opportunities (consumers and end-users) 378 SUSTAINABILITY STATEMENT – APPENDIX 388 Annual Financial Report 2024 ESRS G1 Business conduct 381 [GOV-1]  Role of administrative, sup ervisory and management bodies 381 Section 4.1.1 ESG  Corporate governance  framework [IRO-1] Description of processes to identify and assess material impacts, risks, and  opportunities 382 [G1-1]  Business conduct policies and corporate culture 382 [G1-2]  Management of relationships with suppliers  382 Section 4.1.3 Business  conduct policies and  corporate culture [G1-3]  Prevention and detection of corruption or bribery  384 [G1-4]   Inciden ts of corruption or bribery  385 [G1-5]  P olitical influence and lobbying activities Not material, hence not  disclosed [G1-6]  Payment prac tices Not material, hence not  disclosed The table below includes all of the data points that derive from other EU legislation as listed in ESRS 2 appendi x  B, indicating where  the data  points  can  be found  in this  report and  which  data points  are  assessed  as  not  material (NM). Disclosure requirement Data point Sustainability statements/ Appendix SFDR reference Pillar 3 reference Benchmark regulation reference EU Climate Law reference Location (page) ESRS 2 ESRS 2 GOV-1 21 (d) Board's gender diversity x   x   83 ESRS 2 GOV-1 21 (e) Percentage of board members who are  independent     x    74-77 ESRS 2 GOV-4 30 S tatement on due diligence x        343 ESRS 2 SBM-1 40 (d) i Involvemen t in activities related to fossil  fuel activities x x x   NM ESRS 2 SBM-1 40 (d) ii Involvemen t in activities related to  chemical production x   x   NM ESRS 2 SBM-1 40 (d) iii Involvemen t in activities related to  controversial weapons x   x   NM ESRS 2 SBM-1 40 (d) iv Involvemen t in activities related to the  cultivat ion and p roduction of tobacco     x   NM ESRS E1 ESRS E1-1 14 Transitio n plan to reach climate neutrality  by 2050       x 358 ESRS E1-1 16 (g) Und ertakings excluded from Paris-aligned  Benchmarks   x x   NM ESRS E1-4 34 GHG e mission reduction targets x x x   360 ESRS E1-5 38 Energy consumption fr om fossil sources  disaggregated by sources (only high  climate impact sec tors) x       NM ESRS E1-5 37 Energy consumption and mix x       361 ESRS E1-5 40-43 Energy intensity associated with acti vities  in high clima te impact sectors x       NM ESRS E1-6 44 Gro ss Scope 1, 2, 3 and Total GHG  emissio ns x x x   362 ESRS E1-6 53-55 Gross GHG emissions intensity x x x   365 ESRS E1-7 56 GHG removals and carbon credits       x NM ESRS E1-9 66 Exposure of the benchmark portfolio to  climate-related physical risks     x   NM ESRS E1-9 66 (a);  66 (c) Disaggregation of mo netary amounts by  acute and chronic p hysical risk; Location  of significant assets at material physical  risk   x     NM ESRS E1-9 67 (c) Breakdown of the carrying value of its real  estate assets by energy-efficiency classes   x     NM ESRS E1-9 69 De gree of exposure of the portfolio to  climate-related opportunities     x   NM SUSTAINABILITY STATEMENT – APPENDIX 389Annual Financial Report 2024 ESRS E2             ESRS E2-4 28 Amount of each pollutant listed in Annex  II of the E-PRTR Regulation emitted to air,  water and soil x       NM ESRS E3 ESRS E3-1 9 Water and marine resources x       NM ESRS E3-1 13 Dedicated policy x       NM ESRS E3-1 14 S ustainable oceans and seas x       NM ESRS E3-4 28 (c) Total water recycled and reused x       NM ESRS E3-4 29 Total water consumption in m3 per net  revenue on own operations x       NM ESRS E4 ESRS 2 - SBM  3 - E4 16 (a) i  List of material sites in it s own operations,  including sites under its operational  control x       NM ESRS 2 - SBM  3 - E4 16 (b) Material negative impacts with regard to  land degradation, desertification or soil  sealing x NM ESRS 2 - SBM  3 - E4 16 (c) Operations that affect threatene d species x       NM ESRS E4-2 24 (b) Sustainable land/agriculture practices or  policies x       366 ESRS E4-2 24 (c) Sustainable oc eans/seas practices or  policies x       NM ESRS E4-2 24 (d) Policies to address def orestation x       NM ESRS E5 ESRS E5-5 37 (d) Non-recycled waste x       NM ESRS E5-5 39 Hazardous waste and radioactive waste x       NM ESRS S1 ESRS 2 - SBM  3 - S1 14 (f) Risk of incidents of forced labour x       NM ESRS 2 - SBM  3 - S1 14 (g) Risk of incidents of chil d labour x       NM ESRS S1-1 20 Human rights policy commitments x       368 ESRS S1-1 21 Due diligence pol icies on issues addressed  by the fundamental International Labor  Organis ation Conventions 1 to 8     x   NM ESRS S1-1 22 Processes and meas ures for preventing  trafficking in human beings x       NM ESRS S1-1 23 Workplace accident prevention p olicy or  management system x       NM ESRS S1-3 32 (c) Grievance/complaints handling  mechanisms x       369 ESRS S1-14 88 (b)  and (c) Number of fatalities and number and rate  of work-related accidents         NM ESRS S1-14 88 (e) Number of days lost to i njuries, acci dents,  fatalities or illness x   x   NM ESRS S1-16 97 (a) Unadjusted gender pay gap x       375 ESRS S1-16 97 (b) Excessive CEO pay ratio x   x   Remuneration  report ESRS S1-17 103 (a) Incidents of discrimination x       376 ESRS S1-17 104 (a) Non-respect of UNGPs on Business and  Human Rights and OECD x   x   368 SUSTAINABILITY STATEMENT – APPENDIX 390 Annual Financial Report 2024 ESRS S2 ESRS 2 - SBM  3 - S2 11 (b) Significant risk of child labour or forced  labour in the value chain x       NM ESRS S2-1 17 Human rights policy commitments         NM ESRS S2-1 18 Pol icies r elated to value chain workers x       NM ESRS S2-1 19 Non-respect of UNGPs on Business  and Human Rights principles and OECD  guidelines x   x   NM ESRS S2-1 19 Due diligence pol icies on issues addressed  by the fundamental International Labor  Organis ation Conventions 1 to 8     x   NM ESRS S2-4 36 Human rights issu es and incidents  connected to its upstream and  downstream value chain x       NM ESRS S3 ESRS S3-1 16 Human rights policy commitments x       NM ESRS S3-1 17 Non-respect of UNGPs on Business and  Human Rights, ILO principles or and OECD  guidelines x   x   NM ESRS S3-4 36 Human rights issues and incidents x       NM ESRS S4 ESRS S4-1 16 Policies related to consumers and end- users x       376 ESRS S4-1 17 Non-respect of UNGPs on Business and  Human Rights and OECD guidelines x x     NM ESRS S4-4 35 Human rig hts is sues and incidents x       NM ESRS G1 ESRS G1-1 §10 (b) United Nations Convention against  Corruption x       385 ESRS G1-1 §10 (d) Protection of whistle- bl owers x       NM ESRS G1-4 §24 (a) Fin es for violation of anti-corruption and  anti-bribery laws x   x   385 ESRS G1-4 §24 (b) Standards of anti- corruption and anti- bribery x       384 5.2 INCORPORATION BY REFERENCE ESRS 2 Disclosure Requirement Chapter in Financial Annual Report SBM-1 Description of the business model 1.2 – Strategy GOV-1 Role of the administrative, management and supervisory  bodies 4 – Corporate Governance Statement GOV-2 Number of exe cutive members 4.5 – Management Board GOV-1 Num ber of non-execu tive members 4.3 – Supervisory Board GOV-1 Information about the representation o f employees and  other workers 4.3.2 – Members of the Supervisory Board  GOV-1 Information about membe r's experience relevant to sectors,  products and geographic locations of undertaking 4.3.2 – Members of the Supervisory Board,  and 4.5.3 – Members of the Management Board GOV-1 Percentage of inde pendent boar d members 4.3.2 – Members of the Supervisory Board GOV- 3 Integration of sustainability-related performance in incentive  schemes Annex – 2024 Key performance indicators of t he  Management Board and Key Executive Managers 5.3 POLICIES The following lists describe MONETA’s internal policies with respect to topical standards ESRS E1 – Climate change,  S1 – Own workforce, S4 – Consumers and End-users, and G1 – Business conduct. All the policies are available in th e  internal system to all employees.  SUSTAINABILITY STATEMENT – APPENDIX 391Annual Financial Report 2024 Internal policies related to Climate Mitigation Policy Scope Rules for Carbon Footprint Calculation The Group, Clients, Suppliers, Employees This policy covers responsibilities, processes, governance and methodology of climate change mitigation, energy efficiency, and renewable  ene rgy deployment. I t lists GHG pro tocol, ISO 14064-1:2018, and PCAF (Standard A, Finance d Emissions 2022) 44  as the main external standards  for carbon footprint calculation and verification. The target is set for Sco pe 1 and 2 emissions. Management Board has t he main responsibility.  Waste Management policy The Group This policy covers waste management responsibilit ies, process, governance and m ethodology. Chief Shared Services Officer has the main  responsibility.  Procurement Policy The Group, Su ppliers This policy covers responsibilities, governance and methodology of the procurement process. Chief Finance Officer has the main responsibility.  Risk Management Strategy The Group This policy covers the definitions and ris k management framework o f MONETA. Chief Risk Officer has the main responsibility.  Charter and Rules of Procedure of the Sustainability Committee The Group This policy covers the members, scope, responsibilities, and rules of procedure of the Sustainability Committee. Management Board has the  main responsibility.   Internal Rating and LGD The Group  This policy describes internal rating tools and their components, including the ESG component. Chief Risk Officer has the main responsibility.  Collateral policy The Group, Cl ients This policy addresses insurance requirements for collateral, specific ally mentioning insurance against natural disasters. Chief Risk Officer has  the main responsibilit y.   Rules for Valuation of Financed Assets and Assets Serving as Collateral for Claims The Group, Clients The rules specify that the valuation o f real estate must consider environmental liabilities and assess whether the property is situated in a  flood zone or any other region prone to natur al disasters. Chief Risk Officer has the main responsi bility.   Decision on Approval Processes for Credit Products MONETA Money Bank, Cli ents This policy describes the governanc e of the restricted financ ing list and restricted co llater al list. Chief Risk Officer has the main responsibility.   Process book: Commercial Credit Process The G roup, Clients This process book includes a list of restricted financing and restricte d collat eral. Chief Risk Officer has the main responsibility.   Internal policies related to Own Workforce Policy Scope Diversity, Equity and Inclusion Policy 45 The Group This policy includes DE&I commitments, the DE&I programme and its governance, MON FAIR pillars and monitoring of performance. Director  Human Resources has the main responsibility. The policy incorporates third-party p rinci ples such as Directive 2013/36/EU, Diversity Charter,  Bloomberg Gender-Equality Index, and Women’s Empowerment Principles. Code of Ethics The Group This policy includes guidelines and rules of conduct and the corporate culture of MONETA’s employees and members of the bodies. Th e  Management Board has the main respons ibility.  Internal policies related to Consumers and End-Users Policy Scope Processing of personal data The Group, Cl ients, Suppliers This policy serves to ensure the security of processed personal data in accordance with the GDPR. Director Compliance has th e main  responsibility.  Principles of Information Security The Group MONETA  has  further  19  internal  cybersecurity  policies  wh ich  together  form  comprehensive  cybersecurity  governan ce  and  inform  MONETA’s decisions in the area of online conduct and protection ag ainst and prevention of cyber threats. Protection of commercial and banking secrecy The Group, Cl ients  This policy serves to ensure the security of data protected by banking secrecy in accordance with the Act on Banks. Direc tor Compliance has  the main responsibili ty.  44   Source: https://carbonaccountingfinan cials.com/en/standard#a. 45   Source: esg.moneta.cz/documents/196 88341/198 03994/mmb-diversity-equity-and-inclusion-policy-2022.pdf/f3a6e970-8b70-07b9-38b9- 95daf201a649?t=1714032438318. SUSTAINABILITY STATEMENT – APPENDIX 392 Annual Financial Report 2024 5.4 EU TAXONOMY - ANNEX VI – TEMPLATE FOR THE KPIS OF CREDIT INSTITUTIONS The following pages include the complete reportin g templates, which cover the disclosure re quirements outlined in  Annex VI and Annex XII of the EU Taxonomy regulation. The foll owing table shows the Template for the KPIs of credit institutions (Annex VI) 0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation Main KPI Total environmentally sustainable assets KPI KPI * % coverage (over total assets) *** % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) Green asset ratio (GAR) stock 11,094,918.11  0.005% 0.002% 61% 18% 39% Additional KPIs Total environmentally sustainable activities KPI KPI % coverage (over total assets) *** % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) GAR (flow) 10,134,981.80  0.005% 0.002% 3% N/A N/A Trading book N/A N/A N/A       Financial guarantees 0 0 0       Assets under management N/A N/A N/A       Fees and commissions income N/A N/A N/A       *   For credit instit utions that do not meet the conditions of Article 94(1) of the CRR or the conditions set ou t in Article 325a(1) of the CRR. **   Fees and commissions income from servi ces other than lending and AuM.     Institutions sha ll disclose forward-looking information for these KPIs, including information in terms of targets, together with relevant explanations on the  methodology applied. ***  % of assets covered by the KPI over banks´ total assets. *  Based on the Turnover KPI of the counterparty. **  Base d on the CapEx KPI of th e counterparty, except fo r lending activities where for general lending Turnover KPI is used. SUSTAINABILITY STATEMENT – APPENDIX 394 Annual Financial Report 2024 million CZK 31 December 2024 Total [gross] carrying amount Climate Change Mitigation (CCM) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 219,540 136,778 11 0 1 0 Financial undertakings 4,150 206 6 0 0 0     Credit institutions 2,995 206 6 0 0 0       Loans and advances 0 0 0 0 0 0       Debt securities, including UoP 2,995 206 6 0 0 0       Equity instruments 0 0 0 0 0     Other financial corporations 1,154 0 0 0 0 0       of which investment firms 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which management co mpani es 399 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 397 0 0 0 0 0     Equity instruments 2 0 0 0 0       of which insurance undertakings 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Non-financial undertakings 1,444 0 0 0 0 0     Loans and advance s 1,444 0 0 0 0 0     Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Households 213,946 136,572 5 0 1 0 of which loans collateralised by residential immovable property 132,648 131,177 0 0 0 0     of which building renovation loans 3,039 3,039 0 0 0 0     of which motor vehicle loans 2,7 92 2,356 5 0 1 0 Local governments financing 0 0 0 0 0 0     Housing financing 0 0 0 0 0 0     Other local government financing 0 0 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 90,378 0 0 0 0 0 Financial and Non-financial undertakings 63,387      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 58,021       Loans and advances 57,996          of which loans collateralised by commercial immovable property 39,635         of which building renovation loans 480       Debt securities 0       Equity instruments 25      Non-EU country counterparties not subject to NFRD disclosure obligations 5,366       Loans and advances 5,326       Debt securities 0    Equity instruments 40 Derivatives 2,314 On demand interbank loans 3,616 Cash and cash-related assets 3,771 Other categories of assets (e.g. Goodwill, commodities etc.) 17,290 Total GAR assets 309,918 136,778 11 0 1 0 Assets not covered for GAR calculation 199,374 Central governments and Supranational issuers 113,417 Central banks exposure 85,361 Trading book 596 Total assets 509,292 136,778 11 0 1 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 2,573 0 0 0 0 0 Assets under management 0 0 0 0 0 0 Of which debt securities  0 0 0 0 0 0 Of which equi ty instruments  0 0 0 0 0 0 1. ASSETS FOR THE CALCULATION OF GAR BASED ON TURNOVER SUSTAINABILITY STATEMENT – APPENDIX 395Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 396 Annual Financial Report 2024 million CZK 31 December 2024 Pollution (PPC) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0 0 0 0 Financial undertakings 0 0 0 0     Credit institutions 0 0 0 0       Loans and advances 0 0 0 0       Debt securities, including UoP 0 0 0 0       Equity instruments 0 0 0     Other financial corporations 0 0 0 0       of which investment firms 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which management co mpani es 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which insurance undertakings 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Non-financial undertakings 0 0 0 0     Loans and advance s 0 0 0 0     Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0 0 0 0     Housing financing 0 0 0 0     Other local government financing 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 0 0 0 0 Assets under management 0 0 0 0   Of which debt securities  0 0 0 0   Of which equi ty instrument s  0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 397Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Of which Use of  Proceeds Of which  transitional Of which  enabling 0 0 0 0 136,778 11 0 1 0 0 0 0 0 206 6 0 0 0 0 0 0 0 206 6 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 206 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 136,572 5 0 1 0 131,177 0 0 0 0 3,039 0 0 0 0 2,356 5 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 136,778 11 0 1 0 0 0 0 0 136,778 11 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 398 Annual Financial Report 2024 million CZK 31 December 2023 Total [gross] carrying amount Climate Change Mitigation (CCM) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 211,415 131,384 0 0 0 0 Financial undertakings 2,177 0 0 0 0 0     Credit institutions 2,177 0 0 0 0 0       Loans and advances 0 0 0 0 0 0       Debt securities, including UoP 2,177 0 0 0 0 0       Equity instruments 0 0 0 0 0     Other financial corporations 0 0 0 0 0 0       of which investment firms 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which management co mpani es 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which insurance undertakings 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Non-financial undertakings 1,059 1,059 0 0 0 0     Loans and advance s 0 0 0 0 0 0     Debt securities, including UoP 1,059 1,059 0 0 0 0     Equity instruments 0 0 0 0 0 Households 208,179 130,324 0 0 0 0 of which loans collateralised by residential immovable property 130,19 9 128,602 0 0 0 0     of which building renovation loans 0 0 0 0 0 0     of which motor vehicle loans 2,560 1,722 0 0 0 0 Local governments financing 0 0 0 0 0 0     Housing financing 0 0 0 0 0 0     Other local government financing 0 0 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 84,518 0 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 295,933 131,384 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 472,275 131,384 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 2,236 0 0 0 0 0 Assets under management 0 0 0 0 0 0 Of which debt securities  0 0 0 0 0 0 Of which equi ty instruments  0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 399Annual Financial Report 2024 31 December 2023 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 400 Annual Financial Report 2024 million CZK 31 December 2023 Pollution (PPC) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0 0 0 0 Financial undertakings 0 0 0 0     Credit institutions 0 0 0 0       Loans and advances 0 0 0 0       Debt securities, including UoP 0 0 0 0       Equity instruments 0 0 0     Other financial corporations 0 0 0 0       of which investment firms 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which management co mpani es 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which insurance undertakings 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Non-financial undertakings 0 0 0 0     Loans and advance s 0 0 0 0     Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0 0 0 0     Housing financing 0 0 0 0     Other local government financing 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 0 0 0 0 Assets under management 0 0 0 0   Of which debt securities  0 0 0 0   Of which equi ty instrument s  0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 401Annual Financial Report 2024 31 December 2023 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Of which Use of  Proceeds Of which  transitional Of which  enabling 0 0 0 0 131,384 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,059 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,059 0 0 0 0 0 0 0 0 0 0 0 130,324 0 0 0 0 128,602 0 0 0 0 0 0 0 0 0 1,7 22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 131,384 0 0 0 0 0 0 0 0 131,384 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 402 Annual Financial Report 2024 million CZK 31 December 2024 Total [gross] carrying amount Climate Change Mitigation (CCM) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 219,540 136,651 5 0 1 0 Financial undertakings 4,150 80 0 0 0 0     Credit institutions 2,995 80 0 0 0 0       Loans and advances 0 0 0 0 0 0       Debt securities, including UoP 2,995 80 0 0 0 0       Equity instruments 0 0 0 0 0     Other financial corporations 1,154 0 0 0 0 0       of which investment firms 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which management co mpani es 399 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 397 0 0 0 0 0     Equity instruments 2 0 0 0 0       of which insurance undertakings 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Non-financial undertakings 1,444 0 0 0 0 0     Loans and advance s 1,444 0 0 0 0 0     Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Households 213,946 136,572 5 0 1 0 of which loans collateralised by residential immovable property 132,648 131,177 0 0 0 0     of which building renovation loans 3,039 3,039 0 0 0 0     of which motor vehicle loans 2,7 92 2,356 5 0 1 0 Local governments financing 0 0 0 0 0 0     Housing financing 0 0 0 0 0 0     Other local government financing 0 0 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 90,378 0 0 0 0 0 Financial and Non-financial undertakings 63,387      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 58,021       Loans and advances 57,996          of which loans collateralised by commercial immovable property 39,635         of which building renovation loans 480       Debt securities 0       Equity instruments 25      Non-EU country counterparties not subject to NFRD disclosure obligations 5,366       Loans and advances 5,326       Debt securities 0       Equity instruments 40 Derivatives 2,314 On demand interbank loans 3,616 Cash and cash-related assets 3,771 Other categories of assets (e.g. Goodwill, commodities etc.) 17,290 Total GAR assets 309,918 136,651 5 0 1 0 Assets not covered for GAR calculation 199,374 Central governments and Supranational issuers 113,417 Central banks exposure 85,361 Trading book 596 Total assets 509,292 136,651 5 0 1 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 2,573 0 0 0 0 0 Assets under management 0 0 0 0 0 0   Of which debt securities  0 0 0 0 0 0   Of which equi ty instrument s  0 0 0 0 0 0 1. ASSETS FOR THE CALCULATION OF GAR BASED ON CAPEX SUSTAINABILITY STATEMENT – APPENDIX 403Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 404 Annual Financial Report 2024 million CZK 31 December 2024 Pollution (PPC) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0 0 0 0 Financial undertakings 0 0 0 0     Credit institutions 0 0 0 0       Loans and advances 0 0 0 0       Debt securities, including UoP 0 0 0 0       Equity instruments 0 0 0     Other financial corporations 0 0 0 0       of which investment firms 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which management co mpani es 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which insurance undertakings 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Non-financial undertakings 0 0 0 0     Loans and advance s 0 0 0 0     Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0 0 0 0     Housing financing 0 0 0 0     Other local government financing 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 0 0 0 0 Assets under management 0 0 0 0   Of which debt securities  0 0 0 0   Of which equi ty instrument s  0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 405Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Of which Use of  Proceeds Of which  transitional Of which  enabling 0 0 0 0 136,651 5 0 1 0 0 0 0 0 80 0 0 0 0 0 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 80 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 136,572 5 0 1 0 131,177 0 0 0 0 3,039 0 0 0 0 2,356 5 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 136,651 5 0 1 0 0 0 0 0 136,651 5 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 406 Annual Financial Report 2024 million CZK 31 December 2023 Total [gross] carrying amount Climate Change Mitigation (CCM) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 211,415 131,384 0 0 0 0 Financial undertakings 2,177 0 0 0 0 0     Credit institutions 2,177 0 0 0 0 0       Loans and advances 0 0 0 0 0 0       Debt securities, including UoP 2,177 0 0 0 0 0       Equity instruments 0 0 0 0 0     Other financial corporations 0 0 0 0 0 0       of which investment firms 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which management co mpani es 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0       of which insurance undertakings 0 0 0 0 0 0         Loans and adv ances 0 0 0 0 0 0         Debt securities, including UoP 0 0 0 0 0 0     Equity instruments 0 0 0 0 0 Non-financial undertakings 1,059 1,059 0 0 0 0     Loans and advance s 0 0 0 0 0 0     Debt securities, including UoP 1,059 1,059 0 0 0 0     Equity instruments 0 0 0 0 0 Households 208,179 130,324 0 0 0 0 of which loans collateralised by residential immovable property 130,19 9 128,602 0 0 0 0     of which building renovation loans 0 0 0 0 0 0     of which motor vehicle loans 2,560 1,722 0 0 0 0 Local governments financing 0 0 0 0 0 0     Housing financing 0 0 0 0 0 0     Other local government financing 0 0 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 84,518 0 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 295,933 131,384 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 472,275 131,384 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 2,236 0 0 0 0 0 Assets under management 0 0 0 0 0 0 Of which debt securities  0 0 0 0 0 0 Of which equi ty instruments  0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 407Annual Financial Report 2024 31 December 2023 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 408 Annual Financial Report 2024 million CZK 31 December 2023 Pollution (PPC) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0 0 0 0 Financial undertakings 0 0 0 0     Credit institutions 0 0 0 0       Loans and advances 0 0 0 0       Debt securities, including UoP 0 0 0 0       Equity instruments 0 0 0     Other financial corporations 0 0 0 0       of which investment firms 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which management co mpani es 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0       of which insurance undertakings 0 0 0 0         Loans and adv ances 0 0 0 0         Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Non-financial undertakings 0 0 0 0     Loans and advance s 0 0 0 0     Debt securities, including UoP 0 0 0 0     Equity instruments 0 0 0 Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0 0 0 0     Housing financing 0 0 0 0     Other local government financing 0 0 0 0 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 Assets excluded from the numerator for GAR calculation (covered in the denominator) 0 0 0 0 Financial and Non-financial undertakings      SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations       Loans and advances          of which loans collateralised by commercial immovable property         of which building renovation loans       Debt securities       Equity instruments      Non-EU country counterparties not subject to NFRD disclosure obligations       Loans and advances       Debt securities       Equity instruments Derivatives On demand interbank loans Cash and cash-related assets Other categories of assets (e.g. Goodwill, commodities etc.) Total GAR assets 0 0 0 0 Assets not covered for GAR calculation Central governments and Supranational issuers Central banks exposure Trading book Total assets 0 0 0 0 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations Financial guarantees 0 0 0 0 Assets under management 0 0 0 0   Of which debt securities  0 0 0 0   Of which equi ty instrument s  0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 409Annual Financial Report 2024 31 December 2023 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which towards taxonomy relevant sectors  (Taxonomy-eligible) Of which environmentally sustainable  (Taxonomy-aligned) Of which environmentally sustainable  (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Of which Use of  Proceeds Of which  transitional Of which  enabling 0 0 0 0 131,384 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0  0   0  0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,059 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,059 0 0 0 0 0 0 0 0 0 0 0 130,324 0 0 0 0 128,602 0 0 0 0 0 0 0 0 0 1,7 22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 131,384 0 0 0 0 0 0 0 0 131,384 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 410 Annual Financial Report 2024 Breakdown by sector - NACE 4 digits level (code and label) Climate Change Mitigation (CCM) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM) Mn CZK Of which  environmentally  sustaina ble  (CCM) A02.10 - Silviculture and other forestry activities 0 0 A02.20 - Logging 0 0 A02.30 - Gathering of wild growing non-wood pr oducts 0 0 A02.40 - Support services to forestry 0 0 B09.10 - Support activities for petr oleum and natural gas extraction 0 0 C16.23 - Manufacture of other buil ders' carpentry and joinery 0 0 C20.11 - Manufacture of industrial gases 0 0 C20.13 - Manufacture of other inor ganic basic chemicals 0 0 C20.14 - Manufacture of other organic basic chemicals 0 0 C20.15 - Manufacture of fertilisers and nitrogen compounds 0 0 C20.16 - Manufacture of plastics in primary forms 0 0 C21.10 - Manufacture of basic pharmaceutical products 0 0 C21.20 - Manufacture of pharmaceutical preparations 0 0 C22.20 - Manufacture of plastics products 0 0 C22.22 - M anufacture of plasti c packing goods 0 0 C23.11 - Manufacture o f flat glass 0 0 C23.20 - Manufacture of refractory products 0 0 C23.31 - Manufacture of ceramic tiles and flags 0 0 C23.32 - Manufacture of bricks, tiles and co nstruct ion pr oducts, in baked clay 0 0 C23.43 - Manufactu re of ceramic insulators and insulating fittings 0 0 C23.51 - Manufacture of cement 0 0 C23.60 - Manufacture of articles of concrete, cement and plaster 0 0 C23.61 - Manufacture of concrete products for construction purposes 0 0 C24 .10 - Manufacture of basic iron and steel and of ferro-alloys 0 0 C24 .20 - Man ufacture of tubes, pipes, ho llow profiles and related fittings, of steel 0 0 C24 .31 - Cold drawing of bars 0 0 C24 .32 - Cold rolling of narrow strip 0 0 C24 .33 - Cold forming or folding 0 0 C24 .34 - Cold drawing of wire 0 0 C24 .42 - Aluminium production 0 0 C24 .51 - Casting of iron 0 0 C24 .52 - Casting of steel 0 0 C24 .53 - Casting of light metals 0 0 C25.11 - Manufacture of metal structu res and parts of structures 0 0 C25.12 - Manufacture of doors and windows of metal 0 0 C25.21 - Manufacture of central heating radiators and boilers 0 0 C25.29 - M anufacture of other tanks, reservoirs and containers of met al 0 0 C25.93 - Manufacture of wire products, cha in and springs 0 0 C25.99 - Manufacture of other fabricated metal products n.e.c. 0 0 C26.10 - Manufacture of electronic components and boards 0 0 C26.20 - Manufacture of computers and perip heral equipment 0 0 C26.30 - Manufacture of communication equipment 0 0 C26.40 - Manufacture of consumer electronics 0 0 C26.51 -  Ma nufacture of instruments and appliances for measuring,   testing and navigation 0 0 C27.10 -  Manufacture of electric motors, generators,   transformers and electricity distribution and control apparatus 0 0 C27.20 - Manufacture of batteries and accumulators 0 0 C27.30 - Manufacture of wiring and wiring devices 0 0 C27.31 - Manufacture of fibre optic cables 0 0 C27.3 2 - Manufacture of o ther electronic and electric wires and cables 0 0 C27.33 - Manufacture of wiring devices 0 0 C27.40 - Manufacture of electric lighting equipment 0 0 C27.51 - Manufacture of electric domestic appliances 0 0 C27.90 - Manufacture o f other electrical equ ipment 0 0 C28.11 -  Manufacture of engines and turbines, except aircraft,   vehicle a nd cycle engines 0 0 C28.12 - Manufacture of fluid power equipment 0 0 C28.13 - Manufa cture of other pumps and co mpressors 0 0 C28.14 - Manufacture of other taps and valves 0 0 C28.15 - Manufacture of bea rings, gears, gearing and driving elements 0 0 2. GAR SECTOR INFORMATION SUSTAINABILITY STATEMENT – APPENDIX 411Annual Financial Report 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble  (WTR) Mn CZK Of which  environmentally  sustaina ble  (WTR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 412 Annual Financial Report 2024 Climate Change Mitigation (CCM) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM) Mn CZK Of which  environmentally  sustaina ble  (CCM) C29.10 - Manufacture of motor vehicles 0 0 C29.20 -  Manufacture of bodies (coachwork) for motor vehicles;   manufacture of trailers and semi-trailers 0 0 C29.30 - Manufacture of parts and accessories for motor vehicles 0 0 C30.10 - Building of ships and boats 0 0 C30.20 - Manufact ure of railway loco motives and rolling stock 0 0 C30.30 - Manufacture of air and spacecraft and related machinery 0 0 C30.90 - Manufacture of transport equipment n.e.c. 0 0 C33.12 - Repair of machinery 0 0 C33.13 - Repair of elect ronic and optical equipment 0 0 C33.14 - Repair of electrical equipment 0 0 C33.15 - Repair and mainten ance of ships and boats 0 0 C33.16 - Repair and maintenance of aircraft and spacecraft 0 0 C33.17 - Repair and maintenance of other transport equipment 0 0 C33.20 - Installation of industrial machinery and equipment 0 0 C38.32 - Recovery of sorted ma terials 0 0 D35.11 - Production of electricity 0 0 D35.12 - Transmission of electricity 0 0 D35.13 - Distribution of electricit y 0 0 D35.21 - Manufacture of gas 0 0 D35.22 - Distribution of gaseous fuels through mains 0 0 D35.30 - Steam and air conditioning supply 0 0 E36.0 0 - Water collection, treatment and supply 0 0 E37.00 - Sewerage 0 0 E38.11 - Collection o f non-hazardou s waste 0 0 E38.12 - Collection of hazardou s waste 0 0 E38.20 - Waste treatment and dis posal 0 0 E38.21 - Treatment and disposal of non-hazardous waste 0 0 E38.22 - Treatment and disposal of hazardous waste 0 0 E38.31 - Dismantling of wrecks 0 0 E38.32 - Recovery of sorted materials 0 0 E39.00 - Remediation activities and other wast e management s ervices 0 0 F41.00 - Construction of buildings 0 0 F41.10 - Development of building projects 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F42.00 - Civil engineering 0 0 F42.11 - Construction of roads and mot orways 0 0 F42.12 - Constructio n of railways and underground railways 0 0 F42.13 - Construction of bri dges and tunnels 0 0 F42.20 - Construction of utility proj ects 0 0 F42.21 - Construction of utility projects for fluids 0 0 F42.22 - Co nstruction of utility projects for electricity and telecommunications 0 0 F42.90 - Construction of other civil engineering projects 0 0 F42.91 - Construction of wate r projects 0 0 F42.99 - Construction of other ci vil engineering projects n.e.c. 0 0 F43.00 - Spec ialised constructi on activities 0 0 F43.10 - Demolition and site prepa ration 0 0 F43.11 - Demolition 0 0 F43.12 - Site prepar ation 0 0 F43.21 - Ele ctrical installation 0 0 F43.22 - Plumbing, heat and air-conditioning installation 0 0 F71 .10 - Arch itectural and engineering activities and related technical consultancy 0 0 F71 .20 - Technical testing and analysis 0 0 H49.10 - Passenger rail transport, in terurban 0 0 H49.20 - Freight rail transport 0 0 H49.31 - Urban and suburban passenger land transport 0 0 H49.32 - Taxi operati on 0 0 H49.39 - Other passenger land transport n.e.c. 0 0 H49.41 - Freight transport by road 0 0 H49.50 - Transport v ia pipeline 0 0 SUSTAINABILITY STATEMENT – APPENDIX 413Annual Financial Report 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble  (WTR) Mn CZK Of which  environmentally  sustaina ble  (WTR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 414 Annual Financial Report 2024 Climate Change Mitigation (CCM) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM) Mn CZK Of which  environmentally  sustaina ble  (CCM) H50.10 - Sea and coastal passenger water transport 0 0 H50.20 - S ea and coastal freight water transport 0 0 H50.30 - Inland passenger water transport 0 0 H50.40 - Inland freight water transport 0 0 H51.10 - Passenger air transport 0 0 H51.21 - Freight air transport 0 0 H52.21 - Service activities incidental to land transportation 0 0 H52.22 - Service activities i ncidental to water transportation 0 0 H52.23 - Service activities incidental to air tr ansportation 0 0 H52.24 - Cargo handling 0 0 H52.29 - Other transportation support activities 0 0 H53.10 - Postal activities un der universal service obligation 0 0 H53.20 - Other postal and courier acti vities 0 0 J58.29 - Other software publishing 0 0 J59.00 -  Motion pic ture, video and television programm e production,   so und recording and music publishing activities 0 0 J60.00 - Programming and broadcasting activities 0 0 J61. 00 - Telecommunications 0 0 J62.00 - Computer progra mming, consultancy a nd related activities 0 0 J62.01 - Compute r programming activities 0 0 J6 3.10 - Data processing, hosting and related activities; web portals 0 0 J6 3.11 - Data processing, hosting and related activities 0 0 K65.1 2 - Non-life insurance 0 0 K65.20 - Reinsurance 0 0 L68.00 - Real e stat e activiti es 0 0 M71.00 - Architectural and engineer ing activ ities; technical testing and analysis 0 0 M71.12 - Engineering activities and related technical consultancy 0 0 M71.20 - Technical testing and analysis 0 0 M72.00 - Scientific research and develo pment 0 0 M72.10 -  Rese arch and experimental development on natu ral sciences   and engineering 0 0 M74.90 - Other professional, scientific and technical activities n.e.c. 0 0 N77.00 - Rental and leasing activities 0 0 N77.11 - Renting and leasing of cars and light motor vehicles 0 0 N77.12 - Renting and leasing of t rucks 0 0 N77. 2 1 - Renting and leasing o f recr eational and sports goods 0 0 N77.34 - Ren ting and leasing of water transport equipme nt 0 0 N77.35 - Renting and leasing of air transport equipment 0 0 N77.39 -  Renting and leasing of other machinery,   equipment and tangible goods n.e.c. 0 0 N80.20 - Security sys tems service activities 0 0 N81.30 - Landscape service activities 0 0 O84.25 - Fire service activities 0 0 P85.00 - E ducation 0 0 Q84.00 - Public administration and defence; compu lsory social security 0 0 Q86.10 - Hospital activities 0 0 Q86.90 - Other human health activities 0 0 Q87.00 - Residential care activities 0 0 Q88.99 - Other social work activities without accommodation n.e.c. 0 0 R90.00 - Creative, arts and entertainment activities 0 0 R91.00 - Libraries, archives, museums and other cultural activities 0 0 R91.04 - Botanical and zoological gardens and nature reserves activities 0 0 S95.21 - Repair of consumer electronics 0 0 S95.22 - Repair of household appliances and home and garden equipment 0 0 Remark: No Taxonomy-eligible expo sure is subject to NFRD as at 31 th  December 2024.  SUSTAINABILITY STATEMENT – APPENDIX 415Annual Financial Report 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble (CCA) Mn CZK Of which  environmentally  sustaina ble  (WTR) Mn CZK Of which  environmentally  sustaina ble  (WTR) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 416 Annual Financial Report 2024 Breakdown by sector - NACE 4 digits level (code and label) Circular economy (CE) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CE) Mn CZK Of which  environmentally  sustaina ble (CE) A02.10 - Silviculture and other forestry activities 0 0 A02.20 - Logging 0 0 A02.30 - Gathering of wild growing non-wood pr oducts 0 0 A02.40 - Support services to forestry 0 0 B09.10 - Support activities for petr oleum and natural gas extraction 0 0 C16.23 - Manufacture of other buil ders' carpentry and joinery 0 0 C20.11 - Manufacture of industrial gases 0 0 C20.13 - Manufacture of other inor ganic basic chemicals 0 0 C20.14 - Manufacture of other organic basic chemicals 0 0 C20.15 - Manufacture of fertilisers and nitrogen compounds 0 0 C20.16 - Manufacture of plastics in primary forms 0 0 C21.10 - Manufacture of basic pharmaceutical products 0 0 C21.20 - Manufacture of pharmaceutical preparations 0 0 C22.20 - Manufacture of plastics products 0 0 C22.22 - M anufacture of plasti c packing goods 0 0 C23.11 - Manufacture o f flat glass 0 0 C23.20 - Manufacture of refractory products 0 0 C23.31 - Manufacture of ceramic tiles and flags 0 0 C23.32 - Manufacture of bricks, tiles and co nstruct ion pr oducts, in baked clay 0 0 C23.43 - Manufactu re of ceramic insulators and insulating fittings 0 0 C23.51 - Manufacture of cement 0 0 C23.60 - Manufacture of articles of concrete, cement and plaster 0 0 C23.61 - Manufacture of concrete products for construction purposes 0 0 C24 .10 - Manufacture of basic iron and steel and of ferro-alloys 0 0 C24 .20 - Man ufacture of tubes, pipes, ho llow profiles and related fittings, of steel 0 0 C24 .31 - Cold drawing of bars 0 0 C24 .32 - Cold rolling of narrow strip 0 0 C24 .33 - Cold forming or folding 0 0 C24 .34 - Cold drawing of wire 0 0 C24 .42 - Aluminium production 0 0 C24 .51 - Casting of iron 0 0 C24 .52 - Casting of steel 0 0 C24 .53 - Casting of light metals 0 0 C25.11 - Manufacture of metal structu res and parts of structures 0 0 C25.12 - Manufacture of doors and windows of metal 0 0 C25.21 - Manufacture of central heating radiators and boilers 0 0 C25.29 - M anufacture of other tanks, reservoirs and containers of met al 0 0 C25.93 - Manufacture of wire products, cha in and springs 0 0 C25.99 - Manufacture of other fabricated metal products n.e.c. 0 0 C26.10 - Manufacture of electronic components and boards 0 0 C26.20 - Manufacture of computers and perip heral equipment 0 0 C26.30 - Manufacture of communication equipment 0 0 C26.40 - Manufacture of consumer electronics 0 0 C26.51 -  Ma nufacture of instruments and appliances for measuring,   testing and navigation 0 0 C27.10 -  Manufacture of electric motors, generators,   transformers and electricity distribution and control apparatus 0 0 C27.20 - Manufacture of batteries and accumulators 0 0 C27.30 - Manufacture of wiring and wiring devices 0 0 C27.31 - Manufacture of fibre optic cables 0 0 C27.3 2 - Manufacture of o ther electronic and electric wires and cables 0 0 C27.33 - Manufacture of wiring devices 0 0 C27.40 - Manufacture of electric lighting equipment 0 0 C27.51 - Manufacture of electric domestic appliances 0 0 C27.90 - Manufacture o f other electrical equ ipment 0 0 C28.11 -  Manufacture of engines and turbines, except aircraft,   vehicle a nd cycle engines 0 0 C28.12 - Manufacture of fluid power equipment 0 0 C28.13 - Manufa cture of other pumps and co mpressors 0 0 C28.14 - Manufacture of other taps and valves 0 0 C28.15 - Manufacture of bea rings, gears, gearing and driving elements 0 0 SUSTAINABILITY STATEMENT – APPENDIX 417Annual Financial Report 2024 Pollution (PPC) Biodiversity and Ecosystems (BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (BIO) Mn CZK Of which  environmentally  sustaina ble (BIO) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 418 Annual Financial Report 2024 Circular Economy (CE) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CE) Mn CZK Of which  environmentally  sustaina ble (CE) C29.10 - Manufacture of motor vehicles 0 0 C29.20 -  Manufacture of bodies (coachwork) for motor vehicles; manufacture of  trailers and semi-trailers 0 0 C29.30 - Manufacture of parts and accessories for motor vehicles 0 0 C30.10 - Building of ships and boats 0 0 C30.20 - Manufact ure of railway loco motives and rolling stock 0 0 C30.30 - Manufacture of air and spacecraft and related machinery 0 0 C30.90 - Manufacture of transport equipment n.e.c. 0 0 C33.12 - Repair of machinery 0 0 C33.13 - Repair of elect ronic and optical equipment 0 0 C33.14 - Repair of electrical equipment 0 0 C33.15 - Repair and mainten ance of ships and boats 0 0 C33.16 - Repair and maintenance of aircraft and spacecraft 0 0 C33.17 - Repair and maintenance of other transport equipment 0 0 C33.20 - Installation of industrial machinery and equipment 0 0 C38.32 - Recovery of sorted ma terials 0 0 D35.11 - Production of electricity 0 0 D35.12 - Transmission of electricity 0 0 D35.13 - Distribution of electricit y 0 0 D35.21 - Manufacture of gas 0 0 D35.22 - Distribution of gaseous fuels through mains 0 0 D35.30 - Steam and air conditioning supply 0 0 E36.0 0 - Water collection, treatment and supply 0 0 E37.00 - Sewerage 0 0 E38.11 - Collection o f non-hazardou s waste 0 0 E38.12 - Collection of hazardou s waste 0 0 E38.20 - Waste treatment and dis posal 0 0 E38.21 - Treatment and disposal of non-hazardous waste 0 0 E38.22 - Treatment and disposal of hazardous waste 0 0 E38.31 - Dismantling of wrecks 0 0 E38.32 - Recovery of sorted materials 0 0 E39.00 - Remediation activities and other wast e management s ervices 0 0 F41.00 - Construction of buildings 0 0 F41.10 - Development of building projects 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F42.00 - Civil engineering 0 0 F42.11 - Construction of roads and mot orways 0 0 F42.12 - Constructio n of railways and underground railways 0 0 F42.13 - Construction of bri dges and tunnels 0 0 F42.20 - Construction of utility proj ects 0 0 F42.21 - Construction of utility projects for fluids 0 0 F42.22 - Co nstruction of utility projects for electricity and telecommunications 0 0 F42.90 - Construction of other civil engineering projects 0 0 F42.91 - Construction of wate r projects 0 0 F42.99 - Construction of other ci vil engineering projects n.e.c. 0 0 F43.00 - Spec ialised constructi on activities 0 0 F43.10 - Demolition and site prepa ration 0 0 F43.11 - Demolition 0 0 F43.12 - Site prepar ation 0 0 F43.21 - Ele ctrical installation 0 0 F43.22 - Plumbing, heat and air-conditioning installation 0 0 F71 .10 - Arch itectural and engineering activities and related technical consultancy 0 0 F71 .20 - Technical testing and analysis 0 0 H49.10 - Passenger rail transport, in terurban 0 0 H49.20 - Freight rail transport 0 0 H49.31 - Urban and suburban passenger land transport 0 0 H49.32 - Taxi operati on 0 0 H49.39 - Other passenger land transport n.e.c. 0 0 H49.41 - Freight transport by road 0 0 H49.50 - Transport v ia pipeline 0 0 SUSTAINABILITY STATEMENT – APPENDIX 419Annual Financial Report 2024 Pollution (PPC) Biodiversity and Ecosystems (BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (BIO) Mn CZK Of which  environmentally  sustaina ble (BIO) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 420 Annual Financial Report 2024 Circular Economy (CE) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (CE) Mn CZK Of which  environmentally  sustaina ble (CE) H50.10 - Sea and coastal passenger water transport 0 0 H50.20 - S ea and coastal freight water transport 0 0 H50.30 - Inland passenger water transport 0 0 H50.40 - Inland freight water transport 0 0 H51.10 - Passenger air transport 0 0 H51.21 - Freight air transport 0 0 H52.21 - Service activities incidental to land transportation 0 0 H52.22 - Service activities i ncidental to water transportation 0 0 H52.23 - Service activities incidental to air tr ansportation 0 0 H52.24 - Cargo handling 0 0 H52.29 - Other transportation support activities 0 0 H53.10 - Postal activities un der universal service obligation 0 0 H53.20 - Other postal and courier acti vities 0 0 J58.29 - Other software publishing 0 0 J59.00 -  Motion pic ture, video and television programm e production, sound  recording and music publishing activities 0 0 J60.00 - Programming and broadcasting activities 0 0 J61. 00 - Telecommunications 0 0 J62.00 - Computer progra mming, consultancy a nd related activities 0 0 J62.01 - Compute r programming activities 0 0 J6 3.10 - Data processing, hosting and related activities; web portals 0 0 J6 3.11 - Data processing, hosting and related activities 0 0 K65.1 2 - Non-life insurance 0 0 K65.20 - Reinsurance 0 0 L68.00 - Real e stat e activiti es 0 0 M71.00 - Architectural and engineer ing activ ities; technical testing and analysis 0 0 M71.12 - Engineering activities and related technical consultancy 0 0 M71.20 - Technical testing and analysis 0 0 M72.00 - Scientific research and develo pment 0 0 M72.10 -  Rese arch and experimental development on natu ral sciences and  engineering 0 0 M74.90 - Other professional, scientific and technical activities n.e.c. 0 0 N77.00 - Rental and leasing activities 0 0 N77.11 - Renting and leasing of cars and light motor vehicles 0 0 N77.12 - Renting and leasing of t rucks 0 0 N77. 2 1 - Renting and leasing o f recr eational and sports goods 0 0 N77.34 - Ren ting and leasing of water transport equipme nt 0 0 N77.35 - Renting and leasing of air transport equipment 0 0 N77.39 -  Renting and leasing of other machinery, equipment and tangible goods  n.e.c. 0 0 N80.20 - Security sys tems service activities 0 0 N81.30 - Landscape service activities 0 0 O84.25 - Fire service activities 0 0 P85.00 - E ducation 0 0 Q84.00 - Public administration and defence; compu lsory social security 0 0 Q86.10 - Hospital activities 0 0 Q86.90 - Other human health activities 0 0 Q87.00 - Residential care activities 0 0 Q88.99 - Other social work activities without accommodation n.e.c. 0 0 R90.00 - Creative, arts and entertainment activities 0 0 R91.00 - Libraries, archives, museums and other cultural activities 0 0 R91.04 - Botanical and zoological gardens and nature reserves activities 0 0 S95.21 - Repair of consumer electronics 0 0 S95.22 - Repair of household appliances and home and garden equipment 0 0 Remark: No Taxonomy-eligible expo sure is subject to NFRD as at 31 th  December 2024.  SUSTAINABILITY STATEMENT – APPENDIX 421Annual Financial Report 2024 Pollution (PPC) Biodiversity and Ecosystems (BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (PPC) Mn CZK Of which  environmentally  sustaina ble (BIO) Mn CZK Of which  environmentally  sustaina ble (BIO) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SUSTAINABILITY STATEMENT – APPENDIX 422 Annual Financial Report 2024 Breakdown by sector - NACE 4 digits level (code and label) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) A02.10 - Silviculture and other forestry activities 0 0 A02.20 - Logging 0 0 A02.30 - Gathering of wild growing non-wood pr oducts 0 0 A02.40 - Support services to forestry 0 0 B09.10 - Support activities for petr oleum and natural gas extraction 0 0 C16.23 - Manufacture of other buil ders' carpentry and joinery 0 0 C20.11 - Manufacture of industrial gases 0 0 C20.13 - Manufacture of other inor ganic basic chemicals 0 0 C20.14 - Manufacture of other organic basic chemicals 0 0 C20.15 - Manufacture of fertilisers and nitrogen compounds 0 0 C20.16 - Manufacture of plastics in primary forms 0 0 C21.10 - Manufacture of basic pharmaceutical products 0 0 C21.20 - Manufacture of pharmaceutical preparations 0 0 C22.20 - Manufacture of plastics products 0 0 C22.22 - M anufacture of plasti c packing goods 0 0 C23.11 - Manufacture o f flat glass 0 0 C23.20 - Manufacture of refractory products 0 0 C23.31 - Manufacture of ceramic tiles and flags 0 0 C23.32 - Manufacture of bricks, tiles and co nstruct ion pr oducts, in baked clay 0 0 C23.43 - Manufactu re of ceramic insulators and insulating fittings 0 0 C23.51 - Manufacture of cement 0 0 C23.60 - Manufacture of articles of concrete, cement and plaster 0 0 C23.61 - Manufacture of concrete products for construction purposes 0 0 C24 .10 - Manufacture of basic iron and steel and of ferro-alloys 0 0 C24 .20 - Man ufacture of tubes, pipes, ho llow profiles and related fittings, of steel 0 0 C24 .31 - Cold drawing of bars 0 0 C24 .32 - Cold rolling of narrow strip 0 0 C24 .33 - Cold forming or folding 0 0 C24 .34 - Cold drawing of wire 0 0 C24 .42 - Aluminium production 0 0 C24 .51 - Casting of iron 0 0 C24 .52 - Casting of steel 0 0 C24 .53 - Casting of light metals 0 0 C25.11 - Manufacture of metal structu res and parts of structures 0 0 C25.12 - Manufacture of doors and windows of metal 0 0 C25.21 - Manufacture of central heating radiators and boilers 0 0 C25.29 - M anufacture of other tanks, reservoirs and containers of met al 0 0 C25.93 - Manufacture of wire products, cha in and springs 0 0 C25.99 - Manufacture of other fabricated metal products n.e.c. 0 0 C26.10 - Manufacture of electronic components and boards 0 0 C26.20 - Manufacture of computers and perip heral equipment 0 0 C26.30 - Manufacture of communication equipment 0 0 C26.40 - Manufacture of consumer electronics 0 0 C26.51 -  Ma nufacture of instruments and appliances for measuring,   testing and navigation 0 0 C27.10 -  Manufacture of electric motors, generators,   transformers and electricity distribution and control apparatus 0 0 C27.20 - Manufacture of batteries and accumulators 0 0 C27.30 - Manufacture of wiring and wiring devices 0 0 C27.31 - Manufacture of fibre optic cables 0 0 C27.3 2 - Manufacture of o ther electronic and electric wires and cables 0 0 C27.33 - Manufacture of wiring devices 0 0 C27.40 - Manufacture of electric lighting equipment 0 0 C27.51 - Manufacture of electric domestic appliances 0 0 C27.90 - Manufacture o f other electrical equ ipment 0 0 C28.11 -  Manufacture of engines and turbines, except aircraft,   vehicle a nd cycle engines 0 0 C28.12 - Manufacture of fluid power equipment 0 0 C28.13 - Manufa cture of other pumps and co mpressors 0 0 C28.14 - Manufacture of other taps and valves 0 0 C28.15 - Manufacture of bea rings, gears, gearing and driving elements 0 0 SUSTAINABILITY STATEMENT – APPENDIX 423Annual Financial Report 2024 TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) C29.10 - Manufacture of motor vehicles 0 0 C29.20 -  Manufacture of bodies (coachwork) for motor vehicles; manufacture of  trailers and semi-trailers 0 0 C29.30 - Manufacture of parts and accessories for motor vehicles 0 0 C30.10 - Building of ships and boats 0 0 C30.20 - Manufact ure of railway loco motives and rolling stock 0 0 C30.30 - Manufacture of air and spacecraft and related machinery 0 0 C30.90 - Manufacture of transport equipment n.e.c. 0 0 C33.12 - Repair of machinery 0 0 C33.13 - Repair of elect ronic and optical equipment 0 0 C33.14 - Repair of electrical equipment 0 0 C33.15 - Repair and mainten ance of ships and boats 0 0 C33.16 - Repair and maintenance of aircraft and spacecraft 0 0 C33.17 - Repair and maintenance of other transport equipment 0 0 C33.20 - Installation of industrial machinery and equipment 0 0 C38.32 - Recovery of sorted ma terials 0 0 D35.11 - Production of electricity 0 0 D35.12 - Transmission of electricity 0 0 D35.13 - Distribution of electricit y 0 0 D35.21 - Manufacture of gas 0 0 D35.22 - Distribution of gaseous fuels through mains 0 0 D35.30 - Steam and air conditioning supply 0 0 E36.0 0 - Water collection, treatment and supply 0 0 E37.00 - Sewerage 0 0 E38.11 - Collection o f non-hazardou s waste 0 0 E38.12 - Collection of hazardou s waste 0 0 E38.20 - Waste treatment and dis posal 0 0 E38.21 - Treatment and disposal of non-hazardous waste 0 0 E38.22 - Treatment and disposal of hazardous waste 0 0 E38.31 - Dismantling of wrecks 0 0 E38.32 - Recovery of sorted materials 0 0 E39.00 - Remediation activities and other wast e management s ervices 0 0 F41.00 - Construction of buildings 0 0 F41.10 - Development of building projects 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F41.20 - Construction of residential and non-residential buildings 0 0 F42.00 - Civil engineering 0 0 F42.11 - Construction of roads and mot orways 0 0 F42.12 - Constructio n of railways and underground railways 0 0 F42.13 - Construction of bri dges and tunnels 0 0 F42.20 - Construction of utility proj ects 0 0 F42.21 - Construction of utility projects for fluids 0 0 F42.22 - Co nstruction of utility projects for electricity and telecommunications 0 0 F42.90 - Construction of other civil engineering projects 0 0 F42.91 - Construction of wate r projects 0 0 F42.99 - Construction of other ci vil engineering projects n.e.c. 0 0 F43.00 - Spec ialised constructi on activities 0 0 F43.10 - Demolition and site prepa ration 0 0 F43.11 - Demolition 0 0 F43.12 - Site prepar ation 0 0 F43.21 - Ele ctrical installation 0 0 F43.22 - Plumbing, heat and air-conditioning installation 0 0 F71 .10 - Arch itectural and engineering activities and related technical consultancy 0 0 F71 .20 - Technical testing and analysis 0 0 H49.10 - Passenger rail transport, in terurban 0 0 H49.20 - Freight rail transport 0 0 H49.31 - Urban and suburban passenger land transport 0 0 H49.32 - Taxi operati on 0 0 H49.39 - Other passenger land transport n.e.c. 0 0 H49.41 - Freight transport by road 0 0 H49.50 - Transport v ia pipeline 0 0 SUSTAINABILITY STATEMENT – APPENDIX 424 Annual Financial Report 2024 TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Non-Financial corp orates   (Subject to NFRD) SMEs and other NF C   not subject to NFRD [Gross]   carrying amount [Gross]   carrying amount Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) Mn CZK Of which  environmentally  sustaina ble  (CCM+CCA+ WTR  +CE+ PPC+BIO) H50.10 - Sea and coastal passenger water transport 0 0 H50.20 - S ea and coastal freight water transport 0 0 H50.30 - Inland passenger water transport 0 0 H50.40 - Inland freight water transport 0 0 H51.10 - Passenger air transport H51.21 - Freight air transport 0 0 H52.21 - Service activities incidental to land transportation 0 0 H52.22 - Service activities i ncidental to water transportation 0 0 H52.23 - Service activities incidental to air tr ansportation 0 0 H52.24 - Cargo handling 0 0 H52.29 - Other transportation support activities 0 0 H53.10 - Postal activities un der universal service obligation 0 0 H53.20 - Other postal and courier acti vities 0 0 J58.29 - Other software publishing 0 0 J59.00 -  Motion pic ture, video and television programm e production, sound  recording and music publishing activities 0 0 J60.00 - Programming and broadcasting activities 0 0 J61. 00 - Telecommunications 0 0 J62.00 - Computer progra mming, consultancy a nd related activities 0 0 J62.01 - Compute r programming activities 0 0 J6 3.10 - Data processing, hosting and related activities; web portals 0 0 J6 3.11 - Data processing, hosting and related activities 0 0 K65.1 2 - Non-life insurance 0 0 K65.20 - Reinsurance 0 0 L68.00 - Real e stat e activiti es 0 0 M71.00 - Architectural and engineer ing activ ities; technical testing and analysis 0 0 M71.12 - Engineering activities and related technical consultancy 0 0 M71.20 - Technical testing and analysis 0 0 M72.00 - Scientific research and develo pment 0 0 M72.10 -  Rese arch and experimental development on natu ral sciences and  engineering 0 0 M74.90 - Other professional, scientific and technical activities n.e.c. 0 0 N77.00 - Rental and leasing activities 0 0 N77.11 - Renting and leasing of cars and light motor vehicles 0 0 N77.12 - Renting and leasing of t rucks 0 0 N77. 2 1 - Renting and leasing o f recr eational and sports goods 0 0 N77.34 - Ren ting and leasing of water transport equipme nt 0 0 N77.35 - Renting and leasing of air transport equipment 0 0 N77.39 -  Renting and leasing of other machinery, equipment and tangible goods  n.e.c. 0 0 N80.20 - Security sys tems service activities 0 0 N81.30 - Landscape service activities 0 0 O84.25 - Fire service activities 0 0 P85.00 - E ducation 0 0 Q84.00 - Public administration and defence; compu lsory social security 0 0 Q86.10 - Hospital activities 0 0 Q86.90 - Other human health activities 0 0 Q87.00 - Residential care activities 0 0 Q88.99 - Other social work activities without accommodation n.e.c. 0 0 R90.00 - Creative, arts and entertainment activities 0 0 R91.00 - Libraries, archives, museums and other cultural activities 0 0 R91.04 - Botanical and zoological gardens and nature reserves activities 0 0 S95.21 - Repair of consumer electronics 0 0 S95.22 - Repair of household appliances and home and garden equipment 0 0 Remark: No Taxonomy-eligible expo sure is subject to NFRD as at 31 th  December 2024.  SUSTAINABILITY STATEMENT – APPENDIX 425Annual Financial Report 2024 SUSTAINABILITY STATEMENT – APPENDIX 426 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered  assets funding taxonomy relevant se ctors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 62.3% 0.0% 0.0% 0.0% 0.0% Financial undertakings 5.0% 0.1% 0.0% 0.0% 0.0%     Credit institutions 6.9% 0.2% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 6,9% 0.2% 0.0% 0.0% 0.0%       Equity instruments 0.0 % 0.0% 0.0% 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0 % 0.0% 0.0%     Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Households 63.8% 0.0% 0.0% 0.0% 0.0% of which loans collateralised by residential immovable property 98.9% 0.0% 0.0% 0.0% 0.0%     of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0 %     of which motor vehicle loans 84.4% 0.2% 0.0% 0. 0% 0.0% Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0 % 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% Total GAR assets 44.1% 0.0% 0.0% 0.0% 0.0% 3. GAR KPI STOCK BASED ON TURNOVER SUSTAINABILITY STATEMENT – APPENDIX 427Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 428 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0 % 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0% 0.0%     Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% Total GAR assets 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 429Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.0% 0.0% 0.0% 0.0% 62.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 6.9% 0.2% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6.9% 0.2% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 63.8% 0.0% 0.0% 0.0% 0.0% 0.0% 98.9% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 84.4% 0.2% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0. 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 44.1% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 430 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2023 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 62.1% 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0 % 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0% 0.0% 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0. 0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Non-financial undertakings 100.0% 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0 % 0.0% 0.0%     Debt securities, including UoP 100.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Households 62.6% 0.0% 0.0% 0.0% 0.0% of which loans collateralised by residential immovable property 98.8% 0.0% 0.0% 0.0% 0.0%     of which building renovation loans 0.0% 0.0% 0.0% 0.0% 0.0%     of which motor vehicle loans 67.3% 0.0% 0.0% 0.0% 0.0% Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0% 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0 % 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% Total GAR assets 44.4% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 431Annual Financial Report 2024 31 December 2023 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 432 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2023 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0 % 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0% 0.0%     Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% Total GAR assets 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 433Annual Financial Report 2024 31 December 2023  Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.0% 0.0% 0.0% 0.0% 62.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 62.6% 0.0% 0.0% 0.0% 0.0% 0.0% 98.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 67.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 44.4% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 434 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered  assets funding taxonomy relevant se ctors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 62.2% 0.0% 0.0% 0.0% 0.0 % Financial undertakings 1.9% 0.0% 0.0% 0.0% 0.0%     Credit institutions 2.7% 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 2.7% 0.0% 0.0 % 0.0% 0.0%       Equity instruments 0.0 % 0.0% 0.0% 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0 % 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0 % 0.0% 0.0%     Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Households 63.8% 0.0% 0.0% 0.0% 0.0% of which loans collateralised by residential immovable property 98.9% 0.0% 0.0% 0.0% 0.0%     of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0 %     of which motor vehicle loans 84.4% 0.2% 0.0% 0. 0% 0.0% Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0 % 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% Total GAR assets 44.1% 0.0% 0.0% 0.0% 0.0% 3. GAR KPI STOCK BASED ON CAPEX SUSTAINABILITY STATEMENT – APPENDIX 435Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 436 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0 % 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0% 0.0%     Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Households of which loans collateralised by residential immovable property     of which building renovation loans     of which motor vehicle loans Local governments financing 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% Total GAR assets 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 437Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.0% 0.0% 0.0% 0.0% 62 .2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 63.8% 0.0% 0.0% 0.0% 0.0% 0.0% 98.9% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 84.4% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 44.1% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 438 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2023 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 62.1% 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0 % 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0% 0.0% 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which management co mpani es 0.0% 0. 0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0. 0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0. 0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Non-financial undertakings 100.0% 0.0% 0.0% 0.0% 0.0%     Loans and advance s 0.0% 0.0% 0.0 % 0.0% 0.0%     Debt securities, including UoP 100.0% 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% 0.0% Households 62.6% 0.0% 0.0% 0.0% 0.0% of which loans collateralised by residential immovable property 98.8% 0.0% 0.0% 0.0% 0.0%     of which building renovation loans 0.0% 0.0% 0.0% 0.0% 0.0%     of which motor vehicle loans 67.3% 0.0% 0.0% 0.0% 0.0% Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0%     Housing financing 0.0% 0.0% 0.0% 0.0% 0.0%     Other local government financing 0.0% 0.0% 0.0 % 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% Total GAR assets 44.4% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 439Annual Financial Report 2024 31 December 2023 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 440 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2023 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.0% 0.0% 0.0% 0.0% Financial undertakings 0.0% 0.0% 0.0% 0.0%     Credit institutions 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0 % 0.0%     Other financial corporations 0.0% 0.0% 0.0% 0.0%       of which investment firms 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which  management co mpani es 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0%       of which insurance undertakings 0.0% 0.0% 0.0% 0.0%         Loans and adv ances 0.0% 0.0% 0.0% 0.0%         Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%     Equity instruments 0.0% 0.0% 0.0% Non-financial undertakings 0.0% 0.0% 0.0% 0.0%       Loans and advances 0.0% 0.0% 0.0% 0.0%       Debt securities, including UoP 0.0% 0.0% 0.0% 0.0%       Equity instruments 0.0% 0.0 % 0.0% Households of which loans collateralised by residential immovable property       of which building renovation loans       of which motor vehicle loans Local governments financing 0.0% 0.0% 0.0% 0.0%       Housing financing 0.0 % 0.0% 0.0% 0.0%       Other local government financing 0.0% 0.0% 0.0% 0.0% Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% Total GAR assets 0.0% 0.0% 0.0% 0.0% Remark: All ratios shown in this template refer to the “Total [gross] carrying amount” of total Covered assets in bo th numerator and deno minator (as reported in  template 1. Assets for the calculation of GAR) for the relevant sector (at row level). SUSTAINABILITY STATEMENT – APPENDIX 441Annual Financial Report 2024 31 December 2023 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.0% 0.0% 0.0% 0.0% 62.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 62.6% 0.0% 0.0% 0.0% 0.0% 0.0% 98.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 67.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 44.4% 0.0% 0.0% 0.0% 0.0% 0.0% SUSTAINABILITY STATEMENT – APPENDIX 442 Annual Financial Report 2024 % (com pared to flow of total eligible assets) 31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 6.71% 0.00% 0.00% 0.00% 0.00% Financial undertakings 4.98% 0.14% 0.00% 0.00% 0.00%     Credit institutions 6.89% 0.19% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 6.89% 0.19% 0.00% 0. 00% 0.00%       Equity instruments 0.00% 0.00% 0.00% 0.00%     Other financial corporations 0.00% 0.00% 0.00% 0.00% 0.00%       of which investment firms 0.00% 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00%       of which  management co mpani es 0.00% 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00%       of which insurance undertakings 0.00 % 0.00% 0.00% 0.00% 0. 00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00% Non-financial undertakings 0.00% 0.00% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00% 0.00% Households 6.79% 0.00% 0.00% 0.00% 0.00% of which loans collateralised by residential immovable property 9.95% 0.00% 0.00% 0.00% 0.00%       of which building renovation loans 1.87% 0.00% 0.00% 0.00% 0.00%       of which motor vehicle loans 45.26% 0.16% 0.00% 0.03% 0.00% Local governments financing 0.00% 0.00% 0.00% 0.00% 0.00%       Housing financing 0.00% 0.00% 0.00% 0. 00% 0.00%       Other local government financing 0.00% 0.00% 0.00% 0.00% 0. 00% Collateral obtained by taking possession: residential and commercial immovable properties 0.00% 0.00% 0.00% 0.00% 0.00% Total GAR assets 4.75% 0.00% 0.00% 0.00% 0.00% 4. GAR KPI FLOW BASED ON TURNOVER SUSTAINABILITY STATEMENT – APPENDIX 443Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% SUSTAINABILITY STATEMENT – APPENDIX 444 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.00% 0.00% 0.00% 0.00% Financial undertakings 0.00% 0.00% 0.00% 0.00%     Credit institutions 0.00 % 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00%     Other financial corporations 0.00% 0.00% 0.00% 0.00%       of which investment firms 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00%       of which  management co mpani es 0.0 0% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00%       of which insurance undertakings 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00% Non-financial undertakings 0.00% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00% Households of which loans collateralised by residential immovable property       of which building renovation loans       of which motor vehicle loans Local governments financing 0.00% 0.00% 0.00% 0.00%       Housing financing 0.00% 0.00% 0.00% 0.00%       Other local government financing 0.00% 0.00% 0.00% 0.00% Collateral obtained by taking possession: residential and commercial immovable properties 0.00% 0.00% 0.00% 0.00% Total GAR assets 0.00% 0.00% 0.00% 0.00% SUSTAINABILITY STATEMENT – APPENDIX 445Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.00% 0.00% 0.00% 0.00% 6.71% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.98% 0.14% 0.00% 0.00% 0.00% 0.14% 0.00% 0.00% 0.00% 0.00% 6.89% 0.19% 0.0 0% 0.00% 0.00% 0.19% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6.89% 0.19% 0.0 0% 0.00% 0.00% 0.19% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6.79% 0.00% 0.00% 0.00% 0.00% 0.00% 9.95% 0.00% 0.00% 0.00% 0.00% 0.00% 1.87% 0.00% 0.00% 0.00% 0.00% 0.00% 45.26% 0.16% 0.00% 0.03% 0.00% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.75% 0.00% 0.00% 0.00% 0.00% 0.00% SUSTAINABILITY STATEMENT – APPENDIX 446 Annual Financial Report 2024 % (com pared to flow of total eligible assets) 31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 6.65% 0.00% 0.00% 0.00% 0.00% Financial undertakings 1.92% 0.00% 0.00% 0.00% 0.00%     Credit institutions 2.66% 0.00% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 2.6 6% 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00% 0.00%     Other financial corporations 0.00% 0.00% 0.00% 0.00% 0.00%       of which investment firms 0.00% 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00%       of which  management co mpani es 0.00% 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00%       of which insurance undertakings 0.00 % 0.00% 0.00% 0.00% 0. 00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0. 00% 0.00% 0.00% 0.00% 0.0 0%     Equity instruments 0.00% 0.00% 0.00% 0.00% Non-financial undertakings 0.00% 0.00% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00% 0.00% Households 6.79% 0.00% 0.00% 0.00% 0.00% of which loans collateralised by residential immovable property 9.95% 0.00% 0.00% 0.00% 0.00%       of which building renovation loans 1.87% 0.00% 0.00% 0.00% 0.00%       of which motor vehicle loans 45.26% 0.16% 0.00% 0.03% 0.00% Local governments financing 0.00% 0.00% 0.00% 0.00% 0.00%       Housing financing 0.00% 0.00% 0.00% 0. 00% 0.00%       Other local government financing 0.00% 0.00% 0.00% 0.00% 0. 00% Collateral obtained by taking possession: residential and commercial immovable properties 0.00% 0.00% 0.00% 0.00% 0.00% Total GAR assets 4.71% 0.00% 0.00% 0.00% 0.00% 4. GAR KPI FLOW BASED ON CAPEX SUSTAINABILITY STATEMENT – APPENDIX 447Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% SUSTAINABILITY STATEMENT – APPENDIX 448 Annual Financial Report 2024 % (com pared to total covered assets in the denominator) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling GAR - Covered assets in both numerator and denominator Loans and advances, debt securities and equity instru ment s not HfT   eligible for GAR calculation 0.00% 0.00% 0.00% 0.00% Financial undertakings 0.00% 0.00% 0.00% 0.00%     Credit institutions 0.00 % 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00%     Other financial corporations 0.00% 0.00% 0.00% 0.00%       of which investment firms 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00%       of which  management co mpani es 0.0 0% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00%       of which insurance undertakings 0.00% 0.00% 0.00% 0.00%         Loans and adv ances 0.00% 0.00% 0.00% 0.00%         Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%     Equity instruments 0.00% 0.00% 0.00% Non-financial undertakings 0.00% 0.00% 0.00% 0.00%       Loans and advances 0.00% 0.00% 0.00% 0.00%       Debt securities, including UoP 0.00% 0.00% 0.00% 0.00%       Equity instruments 0.00% 0.00% 0.00% Households of which loans collateralised by residential immovable property       of which building renovation loans       of which motor vehicle loans Local governments financing 0.00% 0.00% 0.00% 0.00%       Housing financing 0.00% 0.00% 0.00% 0.00%       Other local government financing 0.00% 0.00% 0.00% 0.00% Collateral obtained by taking possession: residential and commercial immovable properties 0.00% 0.00% 0.00% 0.00% Total GAR assets 0.00% 0.00% 0.00% 0.00% Remark: In this template, the relevant flow exposure is the gross book value of the equipment as of December 31 of the reporting year with the contract start date  within the reporting year. This approach is consistently applied for both reporting years. Due to unclear methodology and recent guidance from the EU-Taxonomy  FAQS, MO NETA has changed the definition of “f low” s ince the last Sustainability Report (2023), where new lendin g limits we re applied. All ratios shown in this  template refer to the total covered  assets in both the numerator and denominator (as shown in Template 1. Assets for GAR calculation) for th e relevant sector (at  the row level). SUSTAINABILITY STATEMENT – APPENDIX 449Annual Financial Report 2024 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of  total assets  covered Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0.00% 0.00% 0.00% 0.00% 6.65% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.92% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.66% 0.00% 0.00% 0.00% 0.00% 0.0 0% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.66% 0.00% 0.00% 0.00% 0.00% 0.0 0% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6.79% 0.00% 0.00% 0.00% 0.00% 0.00% 9.95% 0.00% 0.00% 0.00% 0.00% 0.00% 1.87% 0.00% 0.00% 0.00% 0.00% 0.00% 45.26% 0.16% 0.00% 0.03% 0.00% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.71% 0.00% 0.00% 0.00% 0.00% 0.00% SUSTAINABILITY STATEMENT – APPENDIX 450 Annual Financial Report 2024 % (com pared to total eligible off-balance sheet assets)  31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling Financial guarantees (FinGuar KPI) 0% 0% 0% 0% 0% Assets under management (AuM KPI) 0% 0% 0% 0% 0% % (com pared to total eligible off-balance sheet assets) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Financial guarantees (FinGuar KPI) 0% 0% 0% 0% Assets under management (AuM KPI) 0% 0% 0% 0% % (com pared to total eligible off-balance sheet assets)  31 December 2024 Climate Change Mitigation (CCM) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  transitional Of which  enabling Financial guarantees (FinGuar KPI) 0% 0% 0% 0% 0% Assets under management (AuM KPI) 0% 0% 0% 0% 0% % (com pared to total eligible off-balance sheet assets) 31 December 2024 Pollution (PPC) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use of  Proceeds Of which  enabling Financial guarantees (FinGuar KPI) 0% 0% 0% 0% Assets under management (AuM KPI) 0% 0% 0% 0% Remark: There are no Taxonomy-eligible Financial guarantees as at 31 th  December 2024. MONETA does not provide Asset Management. 5. KPI OFF-BALANCE SHEET EXPOSURES - STOCK 5. KPI OFF-BALANCE SHEET EXPOSURES - FLOW SUSTAINABILITY STATEMENT – APPENDIX 451Annual Financial Report 2024 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 31 December 2024 Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy  relevan t sectors (Taxonomy-eligible) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Proportion of total covered assets  funding taxonomy relevant sectors  (Taxonomy-aligned) Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling Of which  Use of  Proceeds Of which  enabling 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 31 December 2024 Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant  sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors  (Taxonomy-eligible) Proportion of total covered assets funding  taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy  relevant sectors (Taxonomy-aligned) Of which Use  of Proceeds Of which  enabling Of which Use  of Proceeds Of which  transitional Of which  enabling 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% SUSTAINABILITY STATEMENT – APPENDIX 452 Annual Financial Report 2024 5.5 EU TAXONOMY ADDITIONAL DISCLOSURE ON NUCLEAR AND GAS RELATED ACTIVITIES Row Nuclear energy related activities Result 1. The undertaking carries out, fun ds or has exposures to research, development, demonstration and deployment of  inn ovative electricity generat ion facilities that produce energy from nuclear processes with minimal waste from the  fuel cycle. NO 2. The undertaking carries out, fun ds or has exposures to constructio n and safe operation of new nuclear installati ons  to produce electricity or process heat, i ncluding for the purposes of district heating or industrial processes such as  hydrogen production, as well as their safety upgrades, using best available technologies. NO 3. The undertaking carries out, fun ds or has exposures to safe operation of existing nuclear installations that produce  electricity or process heat, including for the pu rposes of district heatin g or industrial processes such as hydrogen  production from nuclear energy, as well as their sa fety upgra des. NO   Fossil gas related activities 4. The undertaking carries out, fun ds or has exposures to constructio n or operation of electricity generation facilities  that produce electricity using fossil gaseous fuels. NO 5. The undertaking carries out, fun ds or has exposures to constructio n, refurbishment, and operation of combined  heat/cool and po wer generation facilities using fossil gaseous fuels. NO 6. The undertaking carries out, fun ds or has exposures to constructio n, refurbishment and operation of heat  generation facilities that produce heat/cool using fossil gaseous fuels. NO 455 THE LIST OF SIGNIFICANT INTERNAL POLICIES Annual Financial Report 2024 ANNEX THE LIST OF SIGNIFICANT INTERNAL POLICIES Audit •  MONETA Internal Audit Charter Compliance •  Charter and Rules of Procedure of Compliance & Anti-Fraud Committee •  C lient Personal Data Processing •  Compliance Charter •  Contacts with Regulator and C ompetition •  MONETA  Internal Policy Rulebook •  Management of Personal Data, Banking Secrecy and Trade Secret breaches •  Policy  on  Assessing  the  Suitability  of  Members  of  Elected  Bodies  an d  Key  Func tion  Holders in MONETA Money Bank, a.s. •  Prevention o f Improper Payments •  Process for Processing of Serious Complaints and Regulatory Requests within M ONETA  •  Protection of Bank Secrecy and Trade Secret •  Rules for Prevention and Management of Conflict of Interest •  Rules for Recei ving and Handling Whistleb lowing Notifications Communication •  MONETA C orporate Social Responsibility (CSR) Rules •  MONETA External Communication Rules  •  Procedure for processing applications of Na dace MONETA Clementia  Finance •  Charter and Rules of Procedure of Assets & Liability Committee •  C harter and Rules of Procedure of Business Review Committee •  MONETA Finan cial Reporting Standards •  Investor relations in MONETA Money Bank a.s. •  MONETA C risis Liquidity Management and Contingency Plan •  MONETA Funding an d Management of the Market Risk in Non-banking Entities •  Preparation and approval of the strategy for capital management and compliance with  MREL requirements in MONETA Group •  Rules for the Protection of Inside Informatio n and Disposition o f Investment Ins truments  in MONETA Money Bank , a.s. Human Resources •  Charter and Rules of Procedure o f Compensation Committee •  C harter and Rules of Procedure of the MON FAIR Committee •  Extension of Leave/Time Off Work Provided in Case of Significant Personal Obstacles to Work •  I dentification of Employees Classified as Material Risk Takers in MONETA •  MONETA Code of Ethics  •  MONETA Employee Remuneration Policy •  MONETA Principles of Planning and Recording the Working Hours of the Employees •  Remuneration Policy of Material Risk Takers in MONETA •  Remuneration Policy of the Supervisory Board and the Audit Committee 456 THE LIST OF SIGNIFICANT INTERNAL POLICIES Annual Financial Report 2024 Legal •  M ONETA Management •  Organization  of  the  General  Meeting  and  Distribution  of  Profit  Share  (Dividend)  in  MONETA Money Bank, a.s. •  Organizational Order of MONETA Money Bank, a.s. •  Rules  for  Submitting  Proposals  and  Distribution  of  Minutes  from  the  Management  Board Meetings of MONETA Money Bank, a.s. •  Signature Rules of MONETA Money Bank, a.s. Retail •  Handling of claims and complaints in MONETA •      Rules and procedures for the post-sales controls process Risk •  Charter and Rules of Procedure of Credit Committee •  C harter and Rules of Procedure of Enterprise Risk Management Committee •  C harter and Rules of Procedure of Operational Risk Committee •  Fraud risk management and resolution in MONETA Gro up •  Market Risk Management Regulation in MONETA •  M easures in the Area of Prevention of Legitimisation of Proceeds of Crime and Financing  of Terro rism •  M easures  to  Separate  Credit  Transactions  and  Transactions  within  Investment  Instruments •  MONETA ICAAP Regulation •  MONETA Liquidity Risk and Funding Management •  MONETA Outsourc ing Management •  MONETA Recovery Plan and Processes in Case of Failure •  Operational Risk Management Regulation •  Procedure for Preparation and Approval of Risk Management Strategies in MONETA •  System of Internal Principles Procedures and Control Measures to Meet the Obligations  Set  out  by  the  Act No.  253/2008  Coll., on  Selected  Measures  against  Legitimisation  of Proceeds of Crime and Financing of Terrorism, and Other Related Laws in MONETA  Money Bank, a.s. •  Vendor Risk Management Cyber Security/IT •  Application Development Process and Implementation of Other Changes in MONETA •  Applications Operation •  Control of Access to Systems •  Cyber Security Inci dent Management •  Incident and Problem Management •  Information Security •  Principles of Information Security •  Principles of Using Information Sources •  Rules for Personal Data Anonymisation •  Third Party Access to Information of MONETA •  User Account Management Shared Services •  Business Continuity Management Programme •  C harter and Rules of Procedure of Business Continui ty Management Committee  •  Organisation of Occupational Health and Safety Protection and Fire Protecti on •  Waste Management in MONETA Sustainability •  Charter and Rules of Procedure of Sustainability Committee •  Rules for calculating MONETA‘s carbon footprint 457 2024 KEY PERFORMANCE INDICATORS OF THE MANAGEMENT BOARD AND KEY EXECUTIVE MANAGERS Annual Financial Report 2024 2024 KEY PERFORMANCE INDICATORS OF THE   MANAGEMENT BOARD AND KEY EXECUTIVE   MANAGERS TOMÁŠ SPURNÝ, Chief Executive Officer  CARL NORMANN VÖKT, Chief Risk Officer  JAN FRIČEK, Chief Financial Officer JAN NOVOTNÝ, Chief Commercial Banking Officer  KLÁRA STARKOVÁ, Chief Operating Officer  ANDREW GERBER, Chief Retail Banking Officer JAKUB VALENTA, Chief Digital Officer JIŘÍ HUML, Chief Shared Services Officer  458 2024 KEY PERFORMANCE INDICATORS OF THE MANAGEMENT BOARD AND KEY EXECUTIVE MANAGERS Annual Financial Report 2024 CHIEF EXECUTIVE OFFICER – TOMÁŠ SPURNÝ Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Net profit (CZK bn) 30% ≥5.2 5.2 01. Digital strategy implementation 02. Total operating income (CZK bn) 10% ≥12.4 12.2 02. Implementation of Environmental, Social and Governance strategy – delivery of all assigned tasks under  the approved ESG strategy and support for all ESG-related  regulatory reporting requirements incl. double materiality  assessment, meet carbon reduction target and improve  gender diversity 03. Total OPEX (CZK bn) 10% ≤5.8 5.8 03. Manage relationship with the regulator 04. RoTE (%) 10% ≥17.0 17.0 04. Talent and succession planning programme implementation and manage corporate culture 05. Investment budget (CAPEX) (CZK bn) 10% ≤0.85 0.90 05. Engagement with investors CHIEF RISK OFFICER – CARL NORMANN VÖKT Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Net profit (CZK bn) 20% ≥5.2 5.2 01. Timely completion of regulatory milestones and requirements 02. Cost of risk (bps) 20% ≤21 30 02. Improvements of risk model and system capabilities 03. Volume of NPL disposals (CZK bn) 15% ≥0.7 0.63 03. Implementation of Environmental, Social and Governance strategy – delivery of all assigned tasks under  the approved ESG strategy and support for all ESG-related  regulatory reporting requirements, incl. double materiality  assessment, enhance data collection capabilities within  the commercial underwriting and collateral valuation  processes 04. NPL ratio (%) 15% ≤2.0 2.0 04. Deliver all assigned tasks to ensure compliance with DORA 1 and CRR III 2 05. Implementation of productivity improvement in KYC 3 and AML CHIEF FINANCIAL OFFICER – JAN FRIČEK Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Net profit (CZK bn) 30% ≥5.2 5.2 01. Finance area operational excellence for MONETA 02. Total operating income (CZK bn) 10% ≥12.4 12.2 02. Maintain quality of disclosures and engagement with investors 03. Total OPEX (CZK bn) 10% ≤5.8 5.8 03. Manage relationship with the regulator 04. RoTE (%) 10% ≥17.0 17.0 04. Implementation of Environmental, Social and Governance strategy – delivery of all assigned tasks under  the approved ESG strategy and support for all ESG-related  regulatory reporting requirements incl. double materiality  assessment. Maintain MONETA’s rating by MSCI index 05. Investment budget (CAPEX) (CZK bn) 10% ≤0.85 0.90 05. Deliver all assigned tasks to ensure compliance with DORA 1 1  DORA = Digital Operational Resilience Act, Regulation (EU) 2022/2554. 2  CRR = Capital Requirements Regulation, Regulation (EU) No. 575/2013. 3  KYC = Know Your Customer. Note: All pr esented figures w ere rounded. 459 2024 KEY PERFORMANCE INDICATORS OF THE MANAGEMENT BOARD AND KEY EXECUTIVE MANAGERS Annual Financial Report 2024 CHIEF COMMERCIAL BANKING OFFICER – JAN NOVOTNÝ Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Operating income (Commercial) (CZK m) 40% ≥4,553 4,439 01. Delivery of commercial deposits in the amount of CZK 94bn 4 02. Non-interest income 5 (Commercial) (CZK m) 30% ≥903 858 02. Employee engagement – keep key metrics in employee  survey (main index, climate, eNPS, managerial index) in  top quartile among the Bank departments 6 03. Implementation of Environmental, Social and Governance strategy – deliver all tasks under approve d  strategy, supporting fulfil of regulatory report ing  requirements, ESG related data collection and improve  gender diversity 04. Digital distribution – improve lending volumes by 50%  in small business via digital channels and complete  entitlement model transition CHIEF OPERATING OFFICER – KLÁRA STARKOVÁ Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Operating expenses (COO Division) (CZK m) 30% ≤2,537 2,537 01. Integration – finalise WSO2 migration, complete TIF  migration, prepare and implement strategy to discontinue  support of external providers and internalise capabilities 02. Investment budget (CAPEX, COO Division) (CZK m) 20% ≤421 421 02. Strategic initiatives – NAS 7  technical upgrade and  capacities strengthening. Continue to improve front-end  system 03. Net profit (CZK bn) 10% ≥5.2 5.2 03. Infrastructure initiatives – cloud migration as per  approved plan, implementation of backup solutions 04. Investment budget (CAPEX) (CZK m) 10% ≤850 900 04. ATM and branches – ensure sharing of deposit-taking  ATMs go live. Continue with branch reconstruction in line  with approved plan 05. Data – proceed with client data quality in line with  approved plan and data operations team stabilisation 06. Implementation of Environmental, Social and Governance strategy – delivery of all assigned tasks under  the approved ESG strategy and support for all ESG-related  regulatory reporting requirements incl. double materiality  assessment. Meet carbon reduction target 4  Evaluation metrix: Delivered = 10 0% or more, Partially delivered = at lea st 90% but below 100% and Not delivered = below 90%. 5  Represents co mmercial net fee and commission income and FOREX income incl uding MONETA Auto retail. 6   Evaluation metrix: Delivered = all 4 metric s are in to p quartile, Partially delivered = 1-3 metrics are in top quar tile and No t delivered = none of the metrics in top  quartile. 7  NAS = New Approval System . Note: All pr esented figures w ere rounded. 460 2024 KEY PERFORMANCE INDICATORS OF THE MANAGEMENT BOARD AND KEY EXECUTIVE MANAGERS Annual Financial Report 2024 CHIEF RETAIL BANKING OFFICER – ANDREW GERBER Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Operating income (Retail) (CZK m) 40% ≥7,933 7,735 01. CAPEX discipline – maintain and manage CAPEX budget at  CZK 173 million 02. Non-interest income 8 (Retail) (CZK m) 20% ≥2,539 2,476 02. New web presence – implement new web design by  middle of 2024 03. OPEX (Retail) (CZK m) 10% ≤501 5 01 03. Deliver stability and targeted sales in retail deposits,  new lending volumes (consumer loans and mortgages),  distribution of insurance and asset management products 04. Product innovation – introduction of premium current  accounts and cards and asset management tranche /  structured products CHIEF DIGITAL OFFICER – JAKUB VALENTA Quantitative targets Total weight 50% Qualitative targets Total weight 50% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. Investment budget (CAPEX, Digital) (CZK m) 20% ≤114 114 01. Entitlement model – delivery of key part including data  migration until November 2024 02. New lending volume (Fully online) (CZK m) 20% ≥ 6,138 5,831 02. SME segment digitalisation – document centre allowing  users to access documents related to their products,  servicing zone for credit products and exposed APIs  allowing users to access bank services 03. OPEX (Digital) (CZK m) 10% ≤176 17 6 03. Improvement of maintenance quality – reduction of  number of incidents by 20% and reduction of digital  channels downtimes 04. Built internal capability 05. Delivery of functionalities for retail segment according  to quarterly prioritisation CHIEF SHARED SERVICES OFFICER – JIŘÍ HUML Quantitative targets Total weight 70% Qualitative targets Total weight 30% Nr. Objective Weight Target Floor/Cap Nr. Objective 01. OPEX (Shared Services, incl. Lease costs) (CZK m) 30% ≤1,201 1,201 01. Design and deliver branch improvement program –  reconstruction, relocation and limited improvements of  given branch locations 02. Operating income (ATM) (CZK m) 20% ≥110 104 02. Implementation of Environmental, Social and Governance strategy – delivery of all assigned tasks  under the approved ESG strategy and support for  all ESG-related regulatory reporting requirements  incl. double materiality assessment. Achieve an 83%  reduction in carbon footpr int compared to 2016 and  maintain the share of electric cars at 2023 level 9 03. CAPEX & OPEX of branch improvements (CZK m) 20% ≤96 96 03. Deliver operational improvements – ensure sharing  of deposit-taking ATMs go live. SWIFT outsourcing and  front-end data box decommissioning 8  Represents retail net fee and commission income and FOREX income excluding MONETA Auto retail.   9  Share of electric cars on total car fleet at 66 % in 2023. Note: All pr esented figures w ere rounded. 463 GLOSSARY Annual Financial Report 2024 GLOSSARY Definition ACCA The Association of Ch artered Certified Accountants Act on Auditors Act No. 93/2009 Coll., on auditors, as amended AI Artificial Intelligence ALCO Asset & Liability Committee  AML/CFT Ant i-M oney Laundering and Combating the Financing of Terrorism AML/CFT Act Act No. 253/2008 Coll., on selected measures against the legitimization of proceeds of crime  and the financing of terrorism, as amended AMSB Administrative, Management and Supervisory bodies Annualised Adjust ed so as to reflect the relevant rate on the full year basis APR Annual Percentage Rate ARAD Public database that is part of the information service of the Czech National Bank. It is a uniform  system  of  presenting a  time  seri es  of  aggregated  data  for  individual  statistics  and  financial  market areas ASA Alternative standardised approaches for the calculation of the operational risk component of  Regulatory Capital ATM Automated Teller Machine Average balance of due to banks   and due to customers Two-point average of the beginning and endi ng balances of Due to banks and Due to customers  for the period Average balance   of net interest earning assets Two-point average of the beginning and ending balances of Net Interest Earning Assets for the  period Average balance   of net loans to customers Two-point average of the beginning and ending balances of Loans and receivables to customers  for the period Average balance of total assets Two-point average of the beginning and ending balances of Total Assets for the period Bank MONETA Money Bank, a.s. Banking book All positions not included in Trading book Basel III The package of capital and liquidity requirements pub lished by the Basel Committee intended  to establish minimum liquidity requirements for credit institutions Bn B illion Boards The Management Board and the Supervisory Board Bps Basis points BRRD D irective 2014/59/EU of the Eu ropean Parliament and of the Council o f 15 May 2014 establishing  a  framework for  the  recovery a nd resolution  of credit  institutions a nd investment  firms,  as  amended Building Savings Bank MONETA Stavební Spořitelna, a.s. (formerly Wüstenrot stavební spořitelna a.s.) Business Corporations Act Act No. 90/2 012 Coll., on business companies and co-operatives (Business C orporations Act),  as amended CAFC Compliance & Anti-Fraud Commi ttee CAGR Compound Annual Growth Rate CAPEX Capital Expenditures Capital Adequacy Ratio/CAR/Total Capital Ratio Regulatory Tier 1 and Tier 2 capita l expressed as a perce ntage of risk weighted assets (RWA,  calculated pursuant to CRR) Capital Markets Act Act No. 256/2004 Coll., on Capital Mar ket Business, as amended CCBO C hief Commercial Banking O fficer CDP Carbon Disclosure Pro ject CEO Chief Executive Off icer  CET 1 Capital Ratio/CET 1 ratio CET 1 capital as a percentage of risk weighted assets (RWA, calculated pursuant to CRR) CET 1/CET 1 Capital Common equity Tier  1 capital represents  regulatory capital  which  mainl y  consists o f  capital  instruments and other items provided in the Article 26 of CRR, such as paid-up registe red share  capital, share premium, retained profits, disclosed reserves and reserves for general banking  risks, which must be netted off against accumulated losses, certain defe rred tax assets, certain  intangible assets and shares held by the Bank in it self (calculated pursuant to CRR) 464 GLOSSARY Annual Financial Report 2024 CFO Chief Financial Officer  CH 4 Methane CMMC Credit Mon itoring and Management Committee CNB Czech National Bank CNB Decree No. 163/2014 Coll. CNB Decree No. 163/2014 Coll. on the performance of the activity of banks, credit unions and  investment firms, as amended CO 2 Carbon dioxide Core NPL coverage Ratio  (expressed  as  a  percentage)  of  Loss  Allowances  created  for  NPL  receivables  to  total  amount of NPL receivables. MONETA  uses  the  Core  NP L  Cover age  measure  because  it  shows  the  degree  to  which  its  non-p erforming loan portfolio is covered by allowances for losses created for the Stage 3 loans Co st of funds (% Avg Deposits) Interes t  expense  and  similar  charges  for  the  period  (excl.  deposit  interest  rate  swaps  and  opportunistic  repo  interest  expenses)  di vided  by  av erage  ba lance  of  D ue  t o  banks,  Due  to  customers, Issued bonds and Subordinated liabilities,  excl. opportunistic repo operati ons and  CSA.  MONETA uses the cost of funds measure because it represents a relative measure of MONETA’s  cost of funding to its overall funding base comprised primarily of customer deposits   Co st of funds on customer deposits   (% Avg De posits) Inte rest expense and similar char ges on customer deposits for the period divided by the average  balance of customer depo sits. MONETA uses the cost of funds measure because it represents a relative measure of MONETA’s  cost of funding of core customer deposits to its average balance of customer deposits Co st of risk/CoR   (% Avg net customer loans) Net impairment of financial assets (lo ans and receivables) for the period divided by the average  balance of net loans to customers. MONETA uses the cost of risk measure because it describes the development of the credit risk  in re lative terms to its average loan portfolio balance Co st to income ratio Ratio (expressed as a percentage) of total operating expenses for the reported period to total  operating income for the reported period. MONETA uses the cost to income ratio measure because it reflects the cost effici ency in relative  terms to generated rev enues CR Cure Rate CRA Regulation (EU) No. 462/2013 of the European Parliament and of the Council of 21 May 2013  amending Regulation (EC) No. 1060/2009 on credit rating agencies, as amended CRBO Chief Retail Banking Officer CRCO Credit Committee  CRD Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access  to  the activity  of  credit institutions and  the  prudential supervision  of  cr edit  institutio ns and  investment  firms,  amending  Directive  2002/87/EC  and  repealing  Directives  2006/48/EC  and  2006/49/EC, as amended Credit Valuation Adjustment/CVA The difference between  the risk-free portfolio value  and  the  fair value of  the portfolio  that  takes into account the possibility of a counterparty’s default (calculated in a ccordance with CRR) CRO Chief Risk Officer  CRR Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on  prudential re qui rements for credit institutions and investment firms and am e nding Regulation  (EU) No. 648/2012, as amende d CRR 2 Regulation  (EU)  2019/876  of  the  European  Parliament  and  of  the  Council  of  20  May  2019  amending Regulation (EU) No  575/2013 as  regards the leverage  rat io, the net stable funding  ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk,  exposures  to  central  counterparties,  exposures  to  collective investment  undertakings,  large  exposure s, reporting and disclosure requirements, and Regulation (EU) No 648/2012 CRR III Regulation  (EU)  2024/1623  of  the  European  Parliament  and  of  the  Council  of  31  May  2024  amending Regulation (EU) No. 575/2013 as regards requirements for credit risk, cre dit valuation  adjustment risk, operational r isk, market risk and the out put floor CRS Common Reporting Standard CSA Credit  Support  Annex  is  a  legal  document  which  regulates  credit  support  (collateral)  for  derivative transactions CSRD Corporate Sustain ability Reporting Directive EU 2022/2464 CSSO Chief Shared Services Officer CTI Czech Trade In spection Authority Customer deposits Due to customers excluding repo operation s and CSA CZK Czech Koruna CZSO Czech Statistical Office DE&I Diversity, Equity, and Inclusion 465 GLOSSARY Annual Financial Report 2024 Dividend yield Dividend yield ca lculated as the ratio (expressed as a percentage) of the dividend per share paid  in the financial year to the closing sha re price of the first trading day of the financial year. MONETA uses this ratio as it represents the annualised return on a share which MONETA pays  out in the form of dividends in relative terms to the share price DLP Data Loss Prevention DDoS Di stributed Denial-of-Service DMA Double Materiality Assessment DORA Digital Operational Resilience Act, Regulation (EU) 2022/2554 of the European Parliament and  of the Co uncil of 14 December 2022 on digital operational resili ence for the financial sec tor and  amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 EAD Exposure at Default Early Warning Indicators Early Warning Indicators represent a set of daily measurements aimed at early identification of  possible liquidity issues of MONETA EBA European Banking Authority EBA-GL Euro pean Banking Authority Guidelin es on Internal Governance EC European Commission ECAP Model for calculation of internal capital requirement ECL Expected Credit Loss EIB European Investment Bank EMIR regulation European Market Infrastructure Regulation No 648/2012 of the European Parliament and of the  council of 4 J uly 2012 on OTC derivatives, central counterparties and trade repos itori es Encumbered assets Assets owned by the Grou p on which external parties reserve the right to make a valid cla im for  example on the basis o f pledge or other security or otherwise eNPS Employee Net Promoter Score ERMC Enterprise Risk Management Committee  ESG En vironmental, Social and Corporate Governanc e ESRS European Sustainability Reporting Standards ESRS 2 European Sustainability Reporting Standards 2 ETR Effec tive Tax Rate EU Euro pean Union EU Regulation No. 537/2014 Regulation (EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014  on  specific  requirements  regarding  statutory  audit  of  public-interest  entities  and  repealing  Commission Decision 2005/909/EC EVIP Executive Variable Incentive Plan EVP Executive Vice-President Ex cess c apital Capi tal exceeding the management ta rget capital ratio. MONETA uses t he excess capital measure because it describes MONETA’s capital in excess of  capital held to maintain its target Capital Adequacy Ratio and represents the amount of capital  whi ch could potentially be used for growth, bot h organi c and inorganic, or be paid out to its  shareholders Excess liquidity Liquidity  above the  regulatory  requirement for  Liquidity Coverage  Ratio of at  least 100% as  introduced by CRR effectiv e from 1 January 2018. MONE TA  uses  the  excess  liquidity  to  show  high-quality  liquid  assets  available  above  the  minimum level neede d to comply with the regulatory requirement  FATCA Foreign Account Tax Com pliance Act Forborne receivables Forborne receivables are receivables for which t he Group provided the debt or with relie f as it  assessed that it wo uld likely incur a loss if it did not do so FVTOCI Financi al assets measured at fair valu e through other comprehensive income F VTPL Financial assets measured at fair value through profit or loss GDP Gross Domestic Product GDPR Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the  protection of natural persons with re gard to the processing of personal data and on the free  movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) GHG Greenhouse gas GRI Global Reporting Initiative Sustainability Standards - International Framework for Sustainability  Reporting 466 GLOSSARY Annual Financial Report 2024 Gross performing receivables Gross  car rying  amount  of  perfo rming lo ans  and  receivables  to  customers  as  determined  in  accordance with the Bank’s loan receivables categorisation rules (Standard, Watch) Group Bank and its consolidated subsidiaries H Half-year HFC Hydrofluorocarbon High quality liquid assets/HQLA According to Basel  III regulation, ass ets that are easily and  immediately converted into cash  at little or no loss  of value. MONETA considers as HQLA its cash balances, balances held in the  central bank and Czech government bonds HQ Headquarter HTC Held To Collect HTCS Held To Collect and Sell ICAAP Internal Capital Adequacy Assessment Process ICAAP report The Bank’s report on the internal capital adequacy assessment proc ess ICT Information and communication technology IDD Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on  insurance distributio n IFRS International Financial Reporting Standards (IFRSs) as issued by the International Accounting  Standards Board, the International Accounting Standards (IAS s) ad opted by the International  Accounting Standards Board, the Standing Interpretation Committee abstracts (SICs) and the  International  Financial  Reporting  Interpretation  Committee  abstracts  (IFRICs)  as  adopted  or  issued  by  the  International  Financial  Reporting  Interpretation  Committee,  in  each  case,  as codified in the Commission  Regulation  (EC) No. 1126/2008 o f  3 November  2008 adopting  certain international accounting standards in accordance with Regulation (EC) No. 1606/2002  of the European Parliament and of the Council, as amended, or otherwise endorsed for use in  the European Union ILAAP Internal Liquidity Adequacy Assessment Process ILO International Labour Organisation Inte rest (and similar) income   from loans to customers Inte rest and similar inco me from loans to customers per note 6 to the Consolidated Financial  Statements  Investment securities Eq uity and debt securities in the Group’s portfolio, consist of securities measured at amortised  cost, fair value through other compreh ensive income (FVT OCI) and fair value through profit or  loss (FVTPL) IPO Initial Public Offering of shares in t he Bank to institutional investors by GE Capital IRO Impacts, Risks and Opportunities ISO International Organisation for Standardisation Issued bonds Mortgage backed bonds and MREL bonds k Thousands KPI Key Performance I ndicator LED Light Emitting Diode Leverage Ratio calculated in accordance with CRR, as amended by CRR 2, as Group's Tier 1 capital divided  by Group’s total exposure LGBTIQ+ Lesbian, Gay, Bisexual, Trans gender, Intersex, Queer/Questioning, and others LGD Loss Given Defau lt Liquid as sets Liquid assets are defined by the Group as cash and cash balances at the central bank, loans and  receivables to banks and investment securities regardless of the purpose those assets are held  by the Group Liquidity buffer Liquid as sets that the Bank holds in compliance w ith CRR and EU Regulation 2015/61 Liquidity Coverage Ratio/LCR Liquidity Coverage Ratio represents the ratio (expre ssed as a percentage) of MONETA‘s balance  of high-quality liquid assets to its projected net liquidity outflows over a 30-day stress period, as calculated in accordance with CRR and EU Regulation 2015/61.  MONETA uses this ratio to sh ow its liquidity position Lo an to deposit ratio/L/D Ratio Loan to deposit ratio calculated as n et loans and re ceivables to custo mers divided by customer  deposits. MONETA uses loan to deposit ratio measure to assess its liquidity level  Loss Absorption Amount For the purpose of MREL equa ls to Pillar I and Pillar II capital requirement LTIP Long Term Incentive Plan LTV/Loan to Value The Loan to Value ratio (LTV) represents the ratio of gross carrying value of loan to fair value of  collateral available at the reporting date M Millions 467 GLOSSARY Annual Financial Report 2024 Management capital buffer Management capital buffer represents a voluntary commitme nt of the Bank’s manage ment  to  be more prudent and to keep the minimum capital adequacy ratio 100bps above th e regulatory  binding overall capital minimum requirement Material Risk Takers/MRTs Employees with highly material influence and material influen ce on the overall risk profile of the  Group, ide ntif ied pursuant to Commis sion Delegated Regulati on (EU) No. 604/2014 of 4 March  2014  supplementing  Directive  2013/36/EU  of  th e  European  Parliam ent  and  of  the  C ouncil  with  regard  to  regulatory  technical  standards  with  respect  to  qualitative  and  approp riate  quantitative criteria to identify categories of staff whos e  professiona l activiti es have a mate rial  impact on an institution's risk profile Materials for the supervisory review   and evaluation process Summary of  reports required by the regulator for the execution of the supervisory review and  evaluation process.  It  includes  mainly  ICAAP  r eport,  ILAAP  report,  and  Report  about  Stress  Testing for Risk Management MONETA Bank and its consolidated subsidiaries MONETA Auto MONETA Auto, s.r.o. MONETA Leasing MONETA Leasing, s.r.o. MONE TA’s/B ank’s management Management Board of MONETA Mo ney Bank, a.s. MONETA Money Bank MONETA Money Bank, a.s. Moody’s Moody’s Deutschland GmbH MREL Minimum Require ment for own  funds and  eligible liabilities, the  term used  in EU legislation  (BBRD, as transpose d into Czech law by Act No. 374/2015 Coll., on recovery and resolution in the  f inancial market) for the loss absorbing c apital (LAC) of cert ain financial insti tutions MROC Model Risk Oversight Committee MWh Megawatt-hour N2O Nitrous oxide NACE Nomenclature of Economic Activities NASDAQ National Association of Securities Dealers Au tomated Quotes system Net customer Loans Net loans and receivables to customers per Financial Statements Net Income or Profit after Tax   or Net profit Profit for the period after tax, on a consolidated basis unless this report states otherwise Net Interest Earning Assets Cash and balances with the central bank, investment securities, loans and receivables to banks,  loans and recei vables  to customers and  prior to the  transition to  IFRS 9 a lso financial assets  at fair value through profit and loss,  financial assets available for sale, financial assets held to  maturity. Including encumbered assets and excluding hedging derivatives Net Non-Interest Income  Total operating income less Net interest income for the period. MONETA  uses the net  non-interest income  measure because this  is  an importan t  metric for  assessing and controlling the diversity of revenue streams New volume/production Aggregate of loan principa l disbursed in the period for non-revolving loans. MONETA  uses  new  v olume/production  metrics  as  it  reflects  performance  of  its  distribution  network  and  ab ility of  the  Group to  generate new  loa ns, which is key f or the  loan portfolio  growth NF 3 Nitrogen trifluoride NGO Non-Governmental Organization NIM o r Net Interest Margin   (% Avg Int Earning Assets) Net interest and similar income divided by the average balance of net interest earning assets. MONETA  uses  the net  interest  margin  measure  because  this  metric  represents  the  primary  measure of profitability sh owing margin  between interest earned o n  interest earning asse ts  (mainly loans to customers) and paid on interest bearing liabilities (mainl y customer deposits) in  relative terms to the average balance of i nterest earning assets No. Number Non performing clients Clients with ex posures classified as Stage 3 acco rding to I FRS 9 NPL Ra tio/Non-performing loan ratio Ratio (expressed a s a percentage) of NPL to Gross loans and r eceivables to customers. MONETA  uses  the  NPL ratio  measure  because  it’s  the key  indicator  of  portfolio quality  and  allows comparison to the market and peers NPL/Non-Perfo rming Loans Non-performin g  loans  as  determined  in  accordance  with  the  Bank’s  loan  receivables  categorisation rules (Substandard, Doubtful,  Loss), Stage 3 according to IFRS 9 and gross loans  from Stage POCI per IFRS 9 categorised as non-performing NPS Net promoter  score i s  the difference  between the % of promoters and  the  %  of detractors.  Based on a survey on consumer products NSFR Net Stable Funding Ratio calculated pursuant to “Basel III: the net stable funding ratio” publishe d  by Basel Committee on Banking Supervision in October 2014 468 GLOSSARY Annual Financial Report 2024 Number of employees/FTEs The average recal culated number of employees during the period is an average of the figures  reported to the Czech Statistical Authority (CSA) on a monthly basis in accordance with Article  15 of Czech Act No. 518/2004. The figures reported to CSA equal to quotient of the following  nominator  and  the  following denominat or.  The nominator  is  defined  as  all  hours worked  by  all  employees,  their  related  leaves/holidays  and  their  related  sick  days.  The  denominator  represents  a  standar d  working  hour  per  employee  and  month.  The  number  of  employees  includes members of the Management Board of MONETA Money Bank NYSE New York Stock Exchange OCI Other Comprehen sive Income OECD Organisation for Economic Co-operat ion and Development Online/Fully online volume/sales/ origination/production Online  volum e/sale  rep resents  volume  from  leads  initiated  through  digital  channels  and  disbursed either through digital channels or branche s; fully online volume/sales = volume from  leads  both  initiated  and  disbursed  in  digital  channels;  online  initiated  =  volume  from  leads  initiated in digital channels but disbursed at a branch. MONE TA  uses  the  online  sales/origination/production/volum e  because  it  reflects  the  production of MONETA’s digital/online distribu tion channels OPEX Operational expenditures Opportunistic repo operations Repo transactions with counterparties which are closed on a back-to-back basis by re verse repo  transactions with the CNB.  MONETA uses this measure to show them separately from other repo operations OpR Operational risk ORCO Operational Risk Management OR Obligor’s  rating  as signed  to  a  borrower  with  respect  to  an  individually  managed  exposure  expressing the probability that the borrower will default in the following 12 mo nths. As regards  the por tfolio managed exposures, the OR is designated as a credit rating (CR) PCAF Partnership for Carbon Accounting Financials PD Prob ability of Default Performing receivab les Performing  Receivables  as  determined  in  accordance  with  MONETA’s  loan  receivables  categorisation rules (Standard, Watched) PFC Perfluorocarbon Phantom shares Cash- settled share-based remuneration arrangement awarded to Material Risk Takers as par t of  their varia ble remuneration under EVIP PIT Poi nt-in-time matri ces relevant for the calculati on of PD and CR PLC Problem Loan Committee POCI Purchased or or iginated credit-impaired assets Prague Stock Exchange Burza cenných papírů Praha, a.s. Primary banking customers Retail  customer  with  credi t  income  of  more  than  CZK  7  thousand  on  a  current  account  at  least twice in  the  last 3 months and commercial customers  with at  least n ine initiated debit  transactions in the previous 3 months or a client with an active n ot delinquent loan pro duct PS D 2 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015  on payment services in the internal market, am ending Direc tives 2002/65/EC, 2009/110/EC and  2013/36/EU and Regulation (EU) No. 1093/2010, and repealing Di rective 2007/64/EC PX Index The PX index is the official price index of the Prague Stock Exchange. It is a free float weig hted  price index made up of the most liquid stocks Q Quarter RCSA Risk & Control Self Assessment Recapitali sation amount Range of 0% to 100% of Loss Absorption Amount (Pillar I and Pillar II requirement) taking into  account proportion of insur ed deposits on total l iabilities and Tier 1 Capital Recovery and Resolution Act Act No. 374/2015 Coll on recovery and resolution of crisis on the financial market as amended Regulatory Capital CET 1 (calculated pursuant to CRR) Retail unsecured instalment loans/Consumer  loans/Unsecured consumer loans Non-purpose, unsecured and non-revolving loan to retail clients including Building savings and  Bridging loans Return on Average Assets/RoAA Re turn  on  average  assets  cal culated  as  profit  after  tax  for  the  year  divided  by  the  Average  balance of total assets. The average balance of total assets is calculated as a two point average from total assets as at the end of the reported year and prior year (31 Decembe r). MONETA uses RoAA measure because it is one of the key performance indicators used to assess  MONETA’s rentability of assets Return on Average Equity /RoAE Return o n average equity calculated a s profit for the period after tax for the year divided by  ave rage Tier 1 equity. The aver age balance  of Tier 1 equity is calculated a s a five-point average. MONETA uses RoAE measure because it is one of the key performance indicators used to assess  MONETA’s rentability of assets  Return on Equity/RoE Return on equity cal culated as profit after tax for the period divided by tot al equity 469 GLOSSARY Annual Financial Report 2024 Return on Tangible Equity/RoTE/Reported  RoTE Consolidated profit aft er tax divided by tangible equity. MONETA uses the RoTE measure because it is one of the key performance indicators us ed to  assess MONETA’s rentability and performance Risk Adjusted Yield (% Avg Net Customer  Loans) Inte rest  and  similar income  from loans  to  customers  less net impairment of  financial assets  divided by the average balan ce of net loans to customers. MONETA uses this metrics to show interest generated on the lo an portfolio separately without  credit risk in relative terms to its average balance Risk-Weighted Assets/RWA/risk exposure Risk weighted assets (calculated pursuant to CRR) SDD Sustainability Due Diligence SDGs UN S ustainable Development Goals SF6 Sulphur hexafluoride SFDR Sustainable Finance Disclosures Regulation (EU) 2019/2088 SHG Share Holding Guidelines SICR Significa nt Increase in Credit Ris k SIEM Security Information and Event Management system Small business Entrepreneurs and small companies with an annual tur nover of up to CZK 60 million Small business (new) production New Volume of unsecured instalment loans and receivables to custo mers SME An enterprise with an ann ual turnover of up to CZK 200 million SME lending franchise Investment loan and working capital Spontaneous awareness A percentage of people who express kn owledge of a brand or product without prompting SREP Supervisory Review and Ev aluation Process SUSCO Sustainability Committee Tangible Equity Calculated as total equity less intangible assets and goodwill tCO 2 e Tonnes of carbon dioxide equivalent Ths Thousands Tier 1 Capital The aggregate of CE T 1 capital and Additional Ti er 1 capital Tier 1 Capital Ratio Tier 1 cap ital as a percen tage of RWA Tier 2 Capital Regulatory capital w hich consists of capital instruments, subordinated loans and o ther items  (including certain unsecured subordinated debt obligations with payment restrictions) provided  in Article 62 of CRR Total NPL Coverage Ratio (expressed as a percentage) of total Loss allowances created for loans and receivables to  customers to the amount of NPL receivables. MONETA uses the Total NPL Cove rage measure because it shows the degree to which its Stage 3  loan portfolio is covered by total allowances created for credit lo sses Total operating income after net impairment  of financial assets Calculated as tot al operating income l ess Net impairment of financial assets Trading book Tradi ng book according to Regulation (EU) No. 575/2013 of the European Parliament and of the  Council of 26 June 2013 on prudential requirements for credit institutions and investment firms  and amending Regula tion (EU) No. 648/2012, as amended (article 4, para 86) TSR/Total Shareholder Return Per Bloomberg methodology calculated as a ratio of di ffe rence between closing and opening  share price to opening share price including reinvested dividend TTC Through-the-cycle matrices relevant for the calculation of PD and CR UNGPs United Nations Guiding Principles VaR Value at Risk VAT Value Added Tax Yield on net customer loans   (% Avg Net Customer Loans) Inte rest and si milar income from l oans to customer divided by the Average balance of net loans  to cu stomers. MONETA  uses  the  yield  on  the  net  custome r  loans  measure  because  it  represents  interest  generated on the loan portfolio in relative terms to its average balance and is one of the key  performance indicators of its lending activities