Unaudited financial statements of Zagrebačka banka Group for the period from 1 January 2016 to 30 June 2016 Content:

Transcription

1 Unaudited financial statements of Zagrebačka banka Group for the period from 1 January 2016 to 30 June 2016 Content: 1. Management report for the period from 1 January 2016 to 30 June Statement of the persons responsible for the preparation of the financial statements 3. Financial statements (TFI-KI statements) 3.1. Balance sheet as at 30 June Income statement for the period from 1 January 2016 to 30 June Cash flow statement for the period from 1 January 2016 to 30 June Statement of changes in equity for the period from 31 December 2015 to 30 June Notes to the financial statements

2 Management report for the period from 1 January to 30 June 2016 According to the unaudited financial statements, in the first half of 2016 Zagrebačka banka Group recorded a profit after tax of HRK 931 million. The Group with all its members has realised solid business result based on sustainable growth in operating income and responsible risk management approach. The overall level of non-performing loans decreased, while the provision coverage is 61.8%. With the purpose of optimizing business processes and realising synergies, in 2015 Zagrebačka banka acquired 100% stake in companies UniCredit Leasing Croatia d.o.o. and Locat Croatia d.o.o. and increased its ownership share in UniCredit Bank d.d. Mostar to 99%. With the abovementioned acquisitions, the Group has further optimized its governance and business role within UniCredit Group. Due to positive trends in the macroeconomic environment and realised economic growth, an increase in credit activity is recorded in Consumer Financing, Corporate and Government segments. The total volume of loans remained stable despite the conversion of Swiss franc loans in the Republic of Croatia. The Group decreases interest rates on new loans due to more favourable financing sources. Being the first on the market in the Republic of Croatia standardly applying National Reference Interest rates since their introduction, the Group reduces interest rates for citizens even for previously approved loans. Thereby the Group facilitates its clients' loan repayment and increases their available income. We are continuously improving business processes by introducing innovative technologies with the goal to provide to our clients fast, quality and personalized services tailored to their needs. Key performance indicators in first half of 2016: Zagrebačka banka Group operating income totals HRK 2,732 million (+15.6%) Total operating expenses amount to HRK 1,264 million (+7.6%) Profit before impairment and other provisions amounts to HRK 1,468 million (+23.5%) Impairment and other provisions amount to HRK 343 million (-36.5%) Net loans to customers amount to HRK 84,544 million Deposits from customers amount to HRK 87,732 million

3 Management report for the period from 1 January to 30 June 2016 (continued) The Group s operating income in first half of 2016 amounted to HRK 2,732 million. Compared to the same 2015 period the increase is HRK 368 million (+15.6%), mainly due to higher Net trading and other income as well as lower Impairment and other provisions: Net interest income amounted to HRK 1,733 million which is by HRK 60 million (+3.6%) more compared to the first half of 2015, as a result of stable average volume of loans and lower funding costs. Net fee and commission income amounted to HRK 607 million and is by HRK 27 million (+4.7%) higher compared to the corresponding period in 2015, following the increase in payment transaction fees and fees from asset management, brokerage and consulting services. Net trading and other income amounted to HRK 392 million, an increase of HRK 281 million (+253.2%) is the result of HRK 135 million gain from sale of stake in Visa Europe Limited, as well as higher net trading income compared to the previous year, when the result was negatively affected by Swiss franc appreciation and the application of January 2015 amendments to the Consumer Credit Act. Operating expenses amounted to HRK 1,264 million and increased by HRK 89 million (+7.6%), mainly as full annual contribution to the Single Resolution Fund was accrued compared to gradual recognition throughout the prior year and as leasing segment operating expenses were included, due to change in the scope of consolidation. The Group s cost to income ratio ( C/I ratio ) remained good and equalled 46.27% (2015: 49.70%). Profit before impairment and other provisions was HRK 1,468 million, higher by HRK 279 million (+23.5%), due to the previously described movements in Operating income and Operating expenses. Impairment and other provisions amounted to HRK 343 million and they have decreased by HRK 197 million (-36.5%). By responsible risk management approach the level of non-performing loans decreased, while the level of provisions against non-performing loans increased from 55.52% to 61.8%. Total assets of the Group amounted to HRK 124,032 million and decreased by HRK 3,972 million (-3.1%) during the year, due to optimisation of funding sources. Net loans to customers amounted to HRK 84,544 million (+0.2%) despite the conversion of Swiss franc loans in Zagrebačka banka d.d. where the increase was realised mainly in Corporate (+HRK 690 million) and Government (+HRK 572 million) segments, while Retail segment started its recovery since April The leading position and market share in loan activity were retained. Deposits from customers represent primary source of funding and amounted to HRK 87,732 at the end of the period. The increase of HRK 1,188 million (+1.4%) was realised in deposits from Corporate. Loans to deposits ratio is stable and amounts 96.4%. Deposits from banks and borrowings amounted to HRK 14,401 million. The decrease of HRK 4,902 million (-25.4%) is a result of lower funding needs. Other liabilities amount to HRK 4,045 million. The decrease of HRK 1,076 million (-21.0%) mostly relates to utilisation of provision for conversion of Swiss franc loans. Capital and reserves amounted to HRK 17,854 million and increased by HRK 818 million (+4.8%), while the capital adequacy ratio of Zagrebačka banka d.d. increased to a level of 25.51%, (31 December 2015: 24.7%).

4 Financial results for the period from 1 January to 30 June 2016 Zagrebačka banka Group Δ 2016 vs 2015 Income statement (HRK mln) % HRK mln (4/1) 4 (2-1) Interest income 3,423 3,091 (9.7 %) (332) Interest expenses (1,750) (1,358) (22.4 %) 392 Net interest income 1,673 1, % 60 Fee and commission income % 13 Fee and commission expenses (82) (68) (17.1 %) 14 Net fee and commission income % 27 Net trading and other income % 281 Operating income 2,364 2, % 368 Operating expenses (1,175) (1,264) 7.6 % (89) Profit before impairment and other provisions 1,189 1, % 279 Impairment and other provisions (540) (343) (36.5 %) 197 Profit from operations 649 1, % 476 Share of profit from associates (9.1 %) (2) Profit before tax 671 1, % 474 Income tax (121) (214) 76.9 % (93) Net profit % 381 Attributable to equity holders of the Bank % 429 Attributable to minority interests 49 1 (98.0 %) (48) Net profit % 381 Zagrebačka banka Group Δ 2016 vs 2015 Balance sheet (HRK mln) 31 Dec Jun 2016 % HRK mln (2/1) 4 (2-1) Cash and deposits with CNB 12,767 12,659 (0.8%) (108) Loans and receivables from banks 14,054 11,746 (16.4%) (2,308) Securities 10,497 8,547 (18.6%) (1,950) Net loans to customers 84,340 84, % 204 Tangible and intangible assets 2,486 2, % 152 Other assets 3,860 3, % 39 Total assets 128, ,032 (3.1%) (3,972) Deposits from customers 86,544 87, % 1,188 Deposits from banks and borrowings 19,303 14,401 (25.4%) (4,902) Other liabilities 5,121 4,045 (21.0%) (1,076) Total equity 17,036 17, % 818 Total liabilities and equity 128, ,032 (3.1%) (3,972) Equity attributable to equity holders of the Bank 17,013 17, % 818 Equity attributable to minority interests % 0 Zagreb, 29 July 2016 Chairman of the Management Board Miljenko Živaljić

5 Statement of the persons responsible for the preparation of financial statements Pursuant to the provisions of the Capital Market Act, to the best of our knowledge: 1. the set of summary financial statements of Zagrebačka banka Group prepared in accordance with the applicable standards for financial reporting for banks in the Republic of Croatia gives a true and complete view of the assets and liabilities, profit and loss, the financial position and business operations of Zagrebačka banka Group; 2. the Management Report gives a true view of business developments, operating results and the position of Zagrebačka banka Group. Head of Accounting and Regulatory Reporting Marijana Brcko Member of the Management Board Lorenzo Ramajola Additional info: Public Relations Tel: 00385(1) PR@unicreditgroup.zaba.hr

6 Appendix 3. Reporting period: to Quarterly financial report for credit institutions-tfi-ki Identification number (MB): Subjects identification number Personal identification number (OIB): Issuer company: Zagrebačka banka d.d. Post office number and city: Zagreb Street and number: Trg bana Josipa Jelačića 10 address: Internet address: ode and name of municipality/city: 133 Zagreb Code and name of county: Consolidated report: 21 Grad Zagreb Number of employees: 5,695 (as at the quarter-end) YES Code in NKD: 6419 Subsidiaries and associates of the Bank which are included in Zagrebačka banka Group are shown in Note 4): Companies included in consolidation (according to IFRS): Headquarters: MB: Prva stambena štedionica d.d. Savska 62, Zagreb ZB Invest d.o.o. Ivana Lučića 2a, Zagreb Centar Kaptol d.o.o. Nova Ves 17, Zagreb Pominvest d.d. Gundulićeva 26a, Split Suvremene poslovne komunikacije d.o.o. Savska cesta 28, Zagreb Zagreb nekretnine d.o.o. Nova Ves 17, Zagreb UniCredit Leasing Croatia d.o.o. Heinzelova 33, Zagreb Locat Croatia d.o.o. Damira Tomljanovića Gavrana 17, Zagreb UniCredit Partner d.o.o. Damira Tomljanovića Gavrana 17, Zagreb ALLIB NEKRETNINE d.o.o. Damira Tomljanovića Gavrana 17, Zagreb BACAL ALPHA d.o.o. Damira Tomljanovića Gavrana 17, Zagreb ZABA Partner d.o.o. Augusta Cesarca 2, Zagreb UniCredit Bank d.d. Kardinala Stepinca bb, Mostar Zane BH d.o.o. Branilaca Sarajeva 20, Sarajevo UniCreditLeasing d.o.o. Ložionička 7, Sarajevo UniCredit Broker d.o.o. Obala Kulina bana 15, Sarajevo Multiplus card d.o.o., Zagreb Ivana Lučića 2a, Zagreb Allianz ZB d.o.o., Zagreb Nike Grškovića 31, Zagreb Allianz ZB d.o.o., Zagreb Ivana Lučića 2a, Zagreb Accounting: Contact person: Jurič Ana (only name and surname of contact person is included) Phone: 01/ Telefax: address: Surname and name: Živaljić Miljenko (person representing the company) Documentation to be published: 1. Financial reports (balance, income statement, cash flow statement, statement on changes in equity and notes to financial statements) 2. Interim Management report 3. Statement of persons responsible for preparation of financial reports M.P. (signature of the President of the Management Board)

7 ASSETS 1. CASH AND DEPOSITS WITH THE CNB ( ) 1.1.Cash 1.2.Deposits with the CNB 2. DEPOSITS WITH BANKING INSTITUTIONS 3. TREASURY BILLS AND CNB BILLS BALANCE SHEET balance as at Position name 4. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD FOR TRADING 5. SECURITIES AND OTHER FINANCIAL INSTRUMENTS AVAILABLE FOR SALE 6. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD TO MATURITY 1 Amounts in HRK AOP code Previous period Current period ,767,328,005 12,658,608, ,517,363,441 2,823,160, ,249,964,564 9,835,447, ,846,392,060 11,733,966, ,600,972,233 4,375,838, ,483,232 83,320, ,755,223,069 3,972,694, ,770, , SECURITIES AND OTHER FINANCIAL INSTRUMENTS WHICH ARE NOT ACTIVELY TRADED, BUT ARE DESIGNATED TO FAIR VALUE THROUGH PROFIT OR LOSS 8. DERIVATIVE FINANCIAL ASSETS 9. LOANS TO FINANCIAL INSTITUTIONS 10. LOANS TO OTHER CUSTOMERS 11. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES 12. FORECLOSED ASSETS 13. PROPERTY, PLANT AND EQUIPMENT (NET OF DEPRECIATION) 14. INTEREST, FEES AND OTHER ASSETS A) TOTAL ASSETS ( do 016) LIABILITIES 1. BORROWINGS FROM FINANCIAL INSTITUTIONS ( ) 1.1. Short-term borrowings 1.2. Long-term borrowings 2. DEPOSITS (AOP 022 to 024) 2.1. Giro and current accounts 2.2. Savings deposits 2.3. Term deposits 3. OTHER BORROWINGS ( ) 3.1. Short-term borrowings 3.2. Long-term borrowings 4. LIABILITIES ARISING FROM DERIVATIVES AND OTHER LIABILITIES HELD FOR TRADING 5. ISSUED DEBT SECURITIES ( ) 5.1. Short-term issued debt securities 5.2. Long-term issued debt securities 6. ISSUED SUBORDINATED INSTRUMENTS 7. ISSUED HYBRID INSTRUMENTS 8. INTERESTS, FEES AND OTHER LIABILITIES B) TOTAL LIABILITIES ( ) EQUITY 1. SHARE CAPITAL 2. CURRENT YEAR PROFIT / (LOSS) 3. RETAINED EARNINGS / (LOSS) 4. LEGAL RESERVES 5. STATUTORY AND OTHER CAPITAL RESERVES 6. UNREALISED GAIN / (LOSS) ON VALUE ADJUSTMENT OF AVAILABLE-FOR- SALE FINANCIAL ASSETS ,693, ,670, ,202,903,145 2,200,620, ,207,515,330 12,436, ,339,919,245 84,544,043, ,303,476 70,210, ,508, ,767, ,486,396,713 2,637,552, ,311,870,054 1,353,148, ,003,279, ,031,999, ,879,498,085 5,925,005, ,561, ,540, ,421,936,282 5,027,465, ,639,669,928 93,890,344, ,288,486,557 22,743,854, ,196,281,100 12,926,971, ,154,902,271 58,219,518, ,328,232,568 2,317,771, ,266, ,857, ,046,965,722 2,147,913, ,956,316,728 1,939,130, ,164,428,079 2,105,938, ,968,145, ,178,191, ,404,839,100 6,404,839, ,844, ,112, ,593,833,905 6,399,298, ,048,522 64,048, ,906,041,757 3,902,383, ,214, ,126, HEDGE ACCOUNTING RESERVES C) TOTAL EQUITY (036 to 042) ,035,133,795 17,853,808,574 D) TOTAL LIABILITIES AND EQUITY ( ) ,003,279, ,031,999,840 BALANCE SHEET SUPPLEMENT (to be inputed by issuer preparing consolidated financial reports) 1. TOTAL EQUITY ,035,133,795 17,853,808, Attributable to equity holders of the Bank ,012,433,515 17,830,600, Attributable to minority interests ( ) ,700,280 23,207,592

8 INCOME STATEMENT for the period to Position name AOP code 1 1. Interest income 2. Interest expense 3. Net interest income ( ) 4. Fee and commission income 5. Fee and commission expense 6. Net income from commissions and fees ( ) 7. Gains / losses from investment in subsidiaries, associates and joint ventures 8. Gains / losses from trading activities 9. Gains / losses from embedded derivatives 10. Gains / losses from assets which are not actively traded, but are designated at fair 11. Gains / losses from activities related to available-for-sale financial assets 12. Gains / losses from activities related to held-to-maturity investments 13. Gains / losses from hedging transactions 14. Income from investments in subsidiaries, associates and joint ventures 15. Income from other equity investments 16. Gains / losses from foreign exchange differences 17. Other income 18. Other expenses 19. General administrative expenses and depreciation 20. Net income from operations before impairment and other provisions 21. Impairment losses and other provisions 22. PROFIT / LOSS BEFORE TAX ( ) 23. INCOME TAX EXPENSE 24. PROFIT / LOSS FOR THE PERIOD ( ) 25. Earnings per share INCOME STATEMENT SUPPLEMENT (to be inputed by issuer preparing consolidated financial statements) Previous period Amounts in HRK Current period Cumulated Quarterly Cumulated Quarterly ,422,595,060 1,688,508,836 3,090,075,586 1,541,703, ,750,131, ,793,971 1,357,576, ,247, ,672,463, ,714,865 1,732,499, ,455, ,080, ,212, ,085, ,061, ,587,582 47,583,232 67,818,760 36,871, ,492, ,629, ,266, ,190, ,281,385 11,332,276 20,228,128 10,672, ,293,724-15,535,279-20,434,626-10,176, ,376, ,546-2,768, , ,596,504-8,423, ,131, ,570, ,866,160 8,866,160 10,684,932 10,684, ,912,916 56,131, ,101,420 72,774, ,358,270 94,707, ,060,592 90,886, ,860,858 91,541, ,748,571 69,437, ,028,223, ,261,429 1,089,684, ,458, ,210,776, ,456,353 1,488,336, ,693, ,490, ,371, ,686, ,795, ,286, ,085,092 1,144,649, ,898, ,730,348 55,963, ,537, ,806, ,555, ,121, ,112, ,092, PROFIT / LOSS FOR THE PERIOD 2. Attributable to equity holders of the Bank 3. Attributable to minority interests ( ) ,434, ,434, ,112, ,092, ,487, ,487, ,996, ,516, ,946,892 24,946,892 1,116, ,759

9 Position name in the period from AOP code STATEMENT OF CHANGES IN EQUITY to Attributable to shareholders of the Bank Share capital Treasury shares Legal, statutory, capital and other reserves Retained earnings/ loss Profit/loss for the year Unrealised gain/loss from revaluation on AFS financial assets Minority interests Amounts in HRK Total Balance as at 1 January of the current period Changes in accounting policies and errors Restated balance as at 1 January of the current period ( ) Disposal of available-for-sale financial assets Changes in fair value of available-for-sale financial assets ,404,839, ,970,090,279 6,573,548, ,259, ,214,865 22,700,280 17,035,133, ,404,839, ,970,090,279 6,573,548, ,259, ,214,865 22,700,280 17,035,133, ,841, ,841, ,992,562 10,801 31,003,363 Deferred tax on movements in fair value reserve of available-for-sale financial assets Other gains/losses recognised directly in equity Net gains/losses recognised directly in equity ( ) Profit / loss for the period Total recognised income and expense for the current period ( ) Increase / decrease of share capital Acquisition / disposal of treasury shares Other movements Transfer to reserves Dividends paid Distribution of profit ( ) Balance as at 31 December of the current period ( ) Banks w hich prepare consolidated annual financial statements separately disclose changes in minority interests in the relevant sections of equity ,738, ,738, ,930-46,090, , ,004-46,386, ,930-46,090, ,088, , ,485, ,996, ,116, ,112, ,930-46,090, ,996,757-62,088, , ,627, , , ,192, ,192, ,259, ,259, , , , ,251, ,259, , , ,404,839, ,966,432,316 6,377,206, ,996, ,126,121 23,207,592 17,853,808,574

10 CASH FLOW STATEMENT - Direct method in the period to Amounts in HRK Position name AOP code Previous period Current period Operating activities 1. Cash flow from operating activities (002 do 009) 1.1. Interest and similar receipts 1.2. Fee and commission receipts 1.3. Interest and similar payments 1.4. Fee and commission payments 1.5. Operating expenses paid 1.6. Net gains / losses from financial instruments at fair value through profit or loss 1.7. Other receipts 1.8. Other payments 2. Net (increase) / decrease of operating assets (011 to 018) 2.1. Deposits with the CNB 2.2. Ministry of Finance treasury bills and CNB treasury bills 2.3. Deposits with financial institutions and loans to financial institutions 2.4. Loans to other customers 2.5. Securities and other held-for-trading financial assets 2.6. Securities and other available-for-sale financial assets 2.7. Securities and other financial instruments which are not actively traded, but are designated at fair value through profit or loss 2.8. Other assets 3. Net increase / (decrease) of operating liabilities (020 to 023) 3.1. Demand deposits 3.2. Savings and term deposits 3.3. Derivative financial liabilities and other trading liabilities 3.4. Other liabilities 4. Net cash flow from operating activities before income taxes paid ( ) 5. Paid income tax 6. Net cash flow from operating activities ( ) Investment activities 7. Net cash flow from investment activities (028 to 032) 7.1. Receipts from sale of / (payments to acquire) property, plant and equipment and intangible assets 7.2. Receipts from sale of / (payments for purchase) investments in subsidiaries, associates and joint ventures 7.3. Receipts from sale of / (payments to acquire) securities and other investments held to maturity 7.4. Received dividends 7.5. Other receipts / (payments) from investment activities Financing activities 8. Net cash flow from financing activities (034 to 039) 8.1. Net increase / (decrease) of borrowings 8.2. Net increase / (decrease) of issued debt securities 8.3. Net increase / (decrease) of subordinated and hybrid instruments 8.4. Receipts from issue of share capital 8.5. Payment of dividends 8.6. Other receipts / (payments) from financing activities 9. Net cash flow ( ) 10. Effects of foreign exchange differences on cash and cash equivalents 11. Net increase / (decrease) in cash and cash equivalents ( ) 12. Cash and cash equivalents at the beginning of the year 13. Cash and cash equivalents at the end of the year ( ) 001 1,426,568,423 1,541,968, ,347,966,723 3,047,326, ,641, ,395, ,731,293,323-1,390,031, ,516,194-67,158, ,037,297,134-1,084,089, ,062, ,954, ,003, ,573, ,555,030 2,176,288, ,681,043 1,554,209, ,597, ,842, ,903,546,822 1,673,304, ,292,199,068-2,786,114, ,486,074-62,232, ,909,545 1,687,061, ,081, , ,730, ,688, ,834,158, ,668, ,583,322 1,392,555, ,107,806,777-1,968,546, , ,768, ,125, ,004,282,353 3,284,588, ,756, ,549, ,815,525,713 3,138,039, ,015, ,241, ,132, ,629, ,650,850 10,493, ,205,460, , ,338,567 12,666, ,394,785,243-1,742,784, ,166,364,114-1,742,447, ,806, ,152,614, , ,243,756,462 1,067,013, ,145,545-64,496, ,263,902,007 1,002,516, ,884,966,481 8,802,849, ,148,868,488 9,805,365,716 * Collections arising from interest and dividends may be classified as operating activities (IAS 7 Appendix A)

11 NOTES TO THE FINANCIAL STATEMENTS in HRK Net liquid assets Cash 2,517,363,441 2,823,160,527 Deposits with the CNB 10,249,964,564 9,835,447,548 Deposits with banking institutions 12,846,392,060 11,733,966,094 Treasury bills and CNB bills 4,600,972,233 4,375,838,849 Securities and other financial instruments held for trading 19,483,232 83,320,989 Secutiries and other financial instruments available for sale 5,755,223,069 3,972,694,390 Securities and other financial instruments which are not actively traded, but are designated at fair value in income statement 119,693, ,670,425 36,109,092,518 32,939,098,822 Loans to and receivables from customers Companies and similar organisations and Government 56,529,994,049 58,102,376,319 Individuals and unincorporated businesses 37,363,138,623 35,891,863,328 Total gross loans 93,893,132,672 93,994,239,647 Companies and similar organisations and Government -6,765,297,479-6,871,382,097 Individuals and unincorporated businesses -2,787,915,948-2,578,814,212 Impairment allowance -9,553,213,427-9,450,196,309 84,339,919,245 84,544,043,338 Deposits Companies and similar organisations and Government 29,615,640,419 30,535,167,326 Individuals and unincorporated businesses 56,928,542,562 57,196,957,770 Banks and other financial institutions 9,095,486,947 6,158,219,750 95,639,669,928 93,890,344,846

12 List of subsidiaries and associates Zagrebačka banka d.d. is a licensed bank operating in Croatia and the holding company for the Zagrebačka banka Group. The Bank's subsidiaries and associated companies are show n below : Fully consolidated subsidiaries: Company Group Group ownership in % UniCredit Bank d.d., Mostar Banking 99.3 Prva stambena štedionica d.d. Banking ZB Invest d.o.o. Fund management Centar Kaptol d.o.o. Property investment Pominvest d.d. Property management 88.7 Suvremene poslovne komunikacije d.o.o. Publishing Zagreb nekretnine d.o.o. Real estate agency Zane BH d.o.o. Real estate agency UniCredit Leasing Croatia d.o.o. Leasing Locat Croatia d.o.o. Intermediation in trade of various products UniCredit Partner d.o.o. Intermediation in trade of various products 80.0 ALLIB NEKRETNINE d.o.o. Rent and management of the ow n property or leased property BACAL ALPHA d.o.o. Organisation of project delivery for buildings ZABA Partner d.o.o. Insurance brokerage UniCreditLeasing d.o.o., Sarajevo Leasing 99.3 Equity accounted associated companies: Company Group Group ownership in % Allianz ZB d.o.o., Zagreb Obligatory pension fund management 49.0 Allianz ZB d.o.o., Zagreb Voluntary pension fund management 49.0 Multiplus card d.o.o., Zagreb Advertising and marketing services 25.0 UniCredit Broker d.o.o. Sarajevo brokersko društvo u osiguranju Insurance brokerage 48.7 Changes in scope of consolidation With the purpose of optimizing business processes and realising synergies, in 2015 Zagrebačka banka acquired 100% stake in companies UniCredit Leasing Croatia d.o.o. and Locat Croatia d.o.o. and increased its ow nership share in UniCredit Bank d.d. Mostar to 99%. With the abovementioned acquisitions, the Group has further optimized its governance and business role w ithin UniCredit Group.

13 Net interest income Previous period Current period Cumulative Quarterly Cumulative Quarterly Interest and similar income 3,422,595,060 1,688,508,836 3,090,075,586 1,541,703,844 Loans to and receivables from customers 2,315,948,673 1,164,043,261 2,260,661,128 1,129,308,628 Debt securities 122,378,054 52,543,017 97,964,090 46,725,051 Loans to and receivables from banks 16,438,492 8,289,452 16,532,131 8,266,483 Derivative instruments 967,829, ,633, ,918, ,403,682 Interest expense and similar charges 1,750,131, ,793,971 1,357,576, ,247,888 Current accounts and deposits from banks 86,267,717 42,126,006 66,618,350 34,818,885 Current accounts and deposits from individuals 497,738, ,231, ,119, ,240,576 Current accounts and deposits from companies and other organisations 107,264,145 54,442, ,899,536 52,603,119 Borrowings 127,523,071 60,965,632 91,411,268 43,260,954 Derivative instruments 931,338, ,028, ,527, ,324,354 1,672,463, ,714,865 1,732,499, ,455,956 Net fee and commission income Previous period Current period Cumulative Quarterly Cumulative Quarterly Fee and commission income 662,080, ,212, ,085, ,061,583 Domestic payment transaction related fees and commissions 246,773, ,048, ,391, ,223,451 Credit card related fees and commissions 162,656,390 93,739, ,479,467 80,655,127 Foreign payment transaction related fees and commissions 77,894,109 40,220,176 82,021,344 42,667,489 Investment management, brokerage and consultancy fees 67,625,314 35,891,868 95,948,451 54,861,022 Other fees and commissions 107,131,015 56,312,753 93,245,131 44,654,494 Fee and commission expense 81,587,582 47,583,232 67,818,760 36,871,212 Credit card related charges 48,640,173 29,334,856 39,027,112 22,364,405 Domestic payment transaction related charges 18,243,237 9,722,972 17,197,560 8,923,898 Foreign payment transaction related charges 5,788,113 2,693,608 3,655,992 1,724,028 Other fees and commissions 8,916,059 5,831,796 7,938,096 3,858, ,492, ,629, ,266, ,190,371 Impairment losses and provisions Previous period Current period Cumulative Quarterly Cumulative Quarterly Impairment losses on loans and receivables from customers -556,642, ,101, ,462, ,597,752 Provisions for conversion of CHF loans ,555,815-8,763,421 Other impairment losses and provisions 16,152,065-9,269, ,668, ,434, ,490, ,371, ,686, ,795,381 Earnings per share Previous period Current period (Loss)/profit attributable to equity holders of the Bank -150,259, ,996,757 Weighted average number of ordinary shares in issue 320,222, ,202,373 Basic and diluted earnings per share (expressed in HRK per share)