ANNUAL REPORT FOR SLATINSKA BANKA d.d. Slatina

Transcription

1 ANNUAL REPORT FOR SLATINSKA BANKA d.d. Slatina FOR 211

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3 ANNUAL REPORT FOR 211 CONTENTS REPORT OF THE MANAGEMENT ON THE BANK'S FINANCIAL POSITION AND ANALYSIS OF BUSINESS RESULTS 3 DEVELOPMENT 4 BUSINESS ANALYSIS 5 INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS 12 ANNUAL FINANCIAL STATEMENTS ACCORDING TO THE DECISION ON THE CONTENTS STRUCTURE OF THE ANNUAL FINANCIAL STATEMENTS OF THE CROATIAN NATIONAL BANK 55 CORPORATE MANAGEMENT CODEX 63 ORGANISATIONAL STRUCTURE OF SLATINSKA BANKA d.d. 7 SLATINSKA BANKA d.d.- CONTACTS 71 SLATINSKA BANKA d.d.- BUSINESS NETWORK 73 CORRESPONDENTS 74 SLATINSKA BANKA d.d. Vladimira Nazora 2, 3352 Slatina Tel: 33/ 84 4 Fax: 33/ , S.W.I.F.T.: SBSL HR 2X URL: slatinska-banka@ slatinska-banka.hr

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5 MANAGEMENT REPORT ON THE BANK'S FINANCIAL POSITION AND THE BUSINESS RESULT ANALYSIS Business of the entire business sector, and thereby that of Slatinska banka d.d. Slatina in the fiscal year 211 was still beset with very complex business conditions. Non-liquidity of the business sector, unemployment, drop in business activities and insufficient investments had as its consequence further stagnation of the real business sector, and thereby a decrease of general standard of living of Croatians. Despite high challenges of today's business conditions and environment, Slatinska banka d.d realized its continuity of positive business performance. Net profit was HRK 3.3 million and the balance grew for approx. HRK 15 million, which is a growth of 8. 54%, realizing the balance level of HRK 1,331 million. The Bank also still has an acceptable adequate capital rate at 18.86%. In 211 net interest income and net non-interest income also grew thanks to more active approach to clients and better allocation of resources; this resulted in growth of total operative business results. Results were realised in conditions of lowered placements to clients-individuals, since that segment, due to increasing insecurity of future receivables due to increased unemployment, meant less interest in banking services in 211. However, through a higher-quality approach to clients, re-design of loan conditions and improvement of placement approval techniques we managed to realize the sought-after dynamic of placements to clients-individuals by the end of 211, which is a trend continuing in 212. Following the above trends, the Bank then centred its efforts on SME's, where high placement rates were achieved; loans to legal entities at the end of the year amounted to approx. HRK million, or 2.4% of total assets. During 211, business of Slatinska banka d.d. enjoyed stable liquidity all year round, without any new domestic or foreign debts, which, in turn, allowed us to finance other financial institutions. Despite significant shake-ups on the banking market at the end of 211, the Bank did not need any secondary sources of assets. As far as Bank asset sources are concerned deposits increased for 9.55% annually to HRK 1,5 mil., showing our clients trusted our safe, stable business. Through collection of primary asset sources, mainly in retail, the Bank made a base for placements in retail and company business, keeping an eye on business risks and client credit rating. During 211, the bank also accented rising profitability of its organizational units (branches). To that end, in 211 branch offices in Belišće and Bizovac were closed, and a new branch opened in \akovo, in our own premises. The new branch office allowed new clients from the \akovština region to use the Bank services in new, modern business premises. Development in 211 also targeted financial centres in Osijek, Zagreb and Rijeka, where activities of raising the level of business and profitability will be performed during 212. Results achieved so far, as well as the continuity of business are proof of the clients' and business partners' trust in stable, safe and profitable functioning of the Bank, bearing in mind at all times its solvency, which is a good base for further growth and development in the coming period. 3

6 DEVELOPMENT OF SLATINSKA BANKA d.d. SLATINA SLATINSKA BANKA d.d. was founded 9 October 1992 and is the only banking institution seated in the County of Virovitica and Podravina. The seat of the Bank is at Vladimira Nazora 2, Slatina. 211 was the 19th consecutive year of successful business and presence on the financial market of the Republic of Croatia for the Bank. In 211 the Bank activities were also centred around retain banking, both with respect to placements and in receiving deposits, and in offering other banking services. However, a more significant portion of activities of the Bank is being allocated to the economic/business segment especially that of financial monitoring of clients. Inter-banking transactions is another significant segment of the Bank's business portfolio, whether in view of placing credits to other banks for purposes of liquidity through the money market, or deposit placements to banks. The Bank is continually investing in development and improvement of its current services, working to satisfy as much as possible the ever more dynamic needs of the market and the Bank's clients. The Bank offers its services in 3 financial centres, 13 branches and 11 branch offices: (in counties:) Virovitičko podravska, Osječko baranjska, Požeško slavonska, Brodsko posavska, Bjelovarsko bilogorska, Koprivničko križevačka, Primorsko goranska, Vukovarsko - srijemska and the City of Zagreb. In addition to the business network of bank offices, banking services can be enjoyed through other distribution channels such as Internet banking and the EFTPOS network of bank machines. At the end of 211 the Bank opened a new branch office in \akovo, on the Bank's own premises, thereby allowing new clients from the \akovština region to use the Bank services (transactions, etc.) in new, modern business premises. During 211 the Bank installed ATM's in Zagreb and Orahovica, in addition to the ones already present in Slatina, Virovitica, Našice, Požega, Daruvar, Osijek, Ilok, Koprivnica, Valpovo, Rijeka, Donji Miholjac and \akovo. ATM's in Našice, Požega, Osijek, Ilok, Slatina and Virovitica have day-and-night vaults that can be used 24 hours a day, 7 days a week, without having to wait in queues in the Bank itself. Activities in connection with the conformance to legal and other regulations have continued. The project of making the CNB report software has been completed, a new project of conforming with the PCI DSS standard has been initiated, as well as the project of migration of the Bank credit card data to DDA chip technology. Within the cark sector, the Bank received its VISA membership, thereby allowing VISA cards on the Bank's ATM's and EFTPOS devices. The structure of the Bank's Management Board was strengthened with 2 new members on 211, so that the present Board numbers 4 members with various allocated duties. 4

7 BANK BUSINESS ANALYSIS IN 211 Despite very difficult business conditions in 211, the continuity of the Bank's positive business results continued, primarily reflecting in the increased Bank balance and positive active business results. BANK BUSINESS INDICATORS ASSETS GROSS PROFIT NET PROFIT NET INTEREST INCOME NET N-INTEREST INCOME TOTAL CAPITAL GUARANTEE CAPITAL CAPITAL ADEQUACY ROA ROE CIR ASSETS/EMPLOYEES NUMBER OF EMPLOYEES ,86%,34% 1,91% 83,65% ,89%,41% 2,13% 81,57% saw a balance growth of HRK 14,732, or 8.54%, whereby the value of the balance reached HRK 1,331,21. The growth of the balance is mainly due to the increase in individual deposits, which have nominally grown for HRK 71,49, in 211, and which make up 64.48% of the Bank's total asset sources. Placements grew mostly in the segment of loan/credit placements to businesses (nominal growth of HRK 83,32), while placements to individuals nominally dropped for HRK 53,79. Profit after taxes for the period from 1 Jan. to 31 Dec. 211 amounted to HRK 3,327,, or 7.94% less that during the same period in 21. Interest income make up 87% of total income, growing 5.57% with respect to 21, while interest expenses (making up 5.18% of total expenses) grew 5.5%. Net interest income amounts to HRK 37,1 and is for 6.26% / HRK 2,18, higher with respect to the same period in 21. Net income from commissions/fees amounted to HRK 1,14,, or 5.18% more than in 21. Income from commissions and fees, if looking at the same period in 212, increased 4.42%, while expenses from commissions and fees grew 2.18% - mostly due to changes in tariffs and regulations with respect to furnishing banks with cash. Other expenses and general administration expenses and depreciation grew 8.38% in relation to the same period in 21 due to increased staff expenses and depreciation. Provisioning costs for placement amount to HRK 3.7 mil. and are HRK 143, lower than in the same period of 21. The following is the structure of asset sources and placement structure by sector. 5

8 ASSET SOURCE STRUCTURE BY SECTOR 211. % 21. % ECOMY N-ECOMY BANKS CLIENTS-INDIVIDUALS - RETAIL OTHER SOURCES CAPITAL AND RESERVES ,73 4,57 7,28 64,77 3,62 13, ,12 4,29 8,39 64,48 3,93 13,79 TOTAL , , STRUCTURE OF RESOURCES ECOMY N-ECOMY BANKS CLIENTS-INDIVIDUALS - RETAIL OTHER SOURCES CAPITAL AND RESERVES PLACEMENT STRUCTURE BY SECTOR 211. % 21. % ECOMY N-ECOMY BUSINESS BANKS CLIENTS-INDIVIDUALS - RETAIL DEBT SECURITIES EQUITY (OWNERSHIP) SECURITIES OTHER PLACEMENTS ,4 1,3 14,77 28,85 17,38,3 17, ,98 1,66 16,43 35,7 15,6,4 16,13 TOTAL , , PLACEMENT STRUCTURE ECOMY N-ECOMY BUSINESS BANKS CLIENTS-INDIVIDUALS - RETAIL DEBT SECURITIES EQUITY (OWNERSHIP) SECURITIES OTHER PLACEMENTS 6

9 RETAIL BANKING Slatinska banka continues to retain its position in the retail banking segment, thanks to its continued development of business and product/service quality, coupled with continual market monitoring. Through following market trends and increasing the number of its services and introducing new technologies, the Bank is able to offer to its clients traditional and accepted forms of savings, (primarily) non-purpose loans and various transaction services. Despite significant pitfalls which hit the financial sector at the end of 211 (liquidation of Credo banka d.d. Split), an increase in assets from individuals was realized, having a large portion in the total incoming assets of the Bank with 64.77%. In total retail deposits, term deposits comprise 87.8%, which allows the Bank manageable liquidity. Deposits in foreign currencies are constantly on the rise, growing 13.35% or HRK 82 mil. in 211 with respect to the previous year. There were certain deviations from the past trends in retail banking / loans, where nominal placements decreased. In addition to re-designing our credit lines and adjusting them in accordance with the demands of more competitive surroundings, technology of credit lines for individuals has been significantly upgraded, and our business policy has turned toward targeted groups. This new approach resulted in positive trends toward the end of 211, which also continued in 212. Retail placements during 211 nominally decreased for HRK 53,79 or 13.4%, which is the result of market conditions, increased competition from other banks in the segment of non-purpose credits/loans, and the recession, where said placements still comprise the largest part of Bank placements: 28.85% of total placement structure. In addition to investing in our business network, the Bank is continually developing and improving direct distribution channels. Following market demands and new trends in technology, the Bank also incorporated new services through its branch network, such as SMS banking for users of current and company accounts, MBCARD / MAESTRO CHIP card, Internet banking, standing orders for payment of utility bills, credits etc. The Bank adapted to the market in order to offer its clients sufficient financial backing in order to construct stable, long-term partnerships built on client trust and satisfaction. Special care is given to training our staff in sales techniques and product & service knowledge through organising seminars, lectures and workshops. RESIDENTIAL (RETAIL) DEPOSITS 31 Dec. 211 % 31 Dec. 21 % SIGHT DEPOSITS in HRK in foreign currency TERM DEPOSITS in HRK in foreign currency ,83 6,4 6,43 87,17 2,97 66, ,36 7,22 7,14 85,64 2,88 64,76 TOTAL , , 7

10 LEGAL ENTITY TRANSACTIONS Due to tougher conditions in the retail loans/credits sector, the Bank made a significant turn in 211 in the segment of business loans/credits. Placements to legal entities as loans/credits and buyout of securities in 211 amounted to HRK 362 million, or 27.2% of total Bank placements. In accordance with market demands, legal entity business primarily concerns financial crediting of SME's and tradesmen/craftsmen, both from own sources and from assets put up by the Croatian Bank for Reconstruction and Development (CBRD) and through credit lines in cooperation with local governments. In addition to better cooperation with HBOR, allowing the Bank greater freedom in using other credit sources except HBOR, the Bank also concluded an agreement with HAMAG for the programme MICRO CREDITS, aimed at constructing a financial model which will in a best way offer a full, high-quality financial service suited for dynamic market conditions. In addition to SMEs and trades, the Bank actively credits local government institutions through CBRD credit lines, solving developmental and infrastructural financial problems and laying quality foundations for further economic growth of certain areas. The Bank allocated a significant portion of its assets to placements into debt securities through discounting bills of exchange issued by companies with good credit rating. The Bank also offers all types of guarantees, in Kuna and foreign currencies, for offers, active and payment guarantees, letters of credit and other types of guarantee demanded by today's business climate. Credit rating, quality development programmes and professional management are the main conditions for financial crediting of clients. Further developing its business, we are offering other services to legal entities allowing faster, simpler and more efficient business - MBCARD/MAESTRO cards, MasterCard Business cards, SMS services and Internet banking. Clients can also use their charge cards, allowing legal entities interest-free payment postponement of up to 45 days. General Bank activities with companies will still be aimed at developing services which the Bank can offer to all legal entities, and at further development of business trust and partnership. In 211, the business environment was hit with a sharp decrease of economic activities and liquidity of legal entities. Extreme care and plentiful resources are placed in finding the optimal solution for clients in overcoming these tough business conditions. LEGAL ENTITY (COMPANY) DEPOSITS 31 Dec. 211 % 21. % SIGHT DEPOSITS in HRK in foreign currency TERM DEPOSITS in HRK in foreign currency ,33 39,47 7,86 52,67 25,64 27, ,93 63,27 1,66 26,7 24,69 1,38 TOTAL , , 8

11 TRANSACTIONS Transactions make up a very important segment of the total Bank offer to clients, where special accent was placed on tariff competitiveness and the speed and quality of services offered. The Bank has wide authorizations as far as quality performance of foreign currency transactions is concerned; it has a membership in the S.W.I.F.T. network programme, essential for retaining correspondence relations with domestic and foreign banks and high quality transactions. By introducing the National Clearing System (NCS) in 21 and becoming a member of the same, the Bank was able to individually perform domestic transactions. The Bank uses its own software for transactions; this is a technical base for high quality performance of all transactions in Kuna. Following market trends and favouring business clients, since 24 the Bank also offers Internet banking, speeding up and simplifying financial transactions regardless of time and place of business, saving time and money through more favourable fees. Transactions can be made in any of the Bank's offices, regardless of the location in which the client opened his/her/its account; to further make our clients' lives easier, transactions are also possible in any Financial Agency (FINA) outlet. Through introducing Internet banking and through domestic and foreign currency transactions the Bank will continue to develop its transaction services in order to offer present and future clients the best possible offer of products and services, efficiency, high-quality services and competitive fees. THE BANK'S INFORMATION SYSTEM AND IT The technological base of the Bank's IS is found in the seat of the Bank and is made up of IBM equipment. The seat houses all servers for banking and non-banking applications, and all external locations (financial centres, branches and branch offices) are connected through the virtual private network. All non-banking application servers are installed in a virtual environment. A new server for banking applications (IBM Power 52) was purchased in 21. Numerous activities concerning the upgrade of the IS of the Bank and expanding services according to the operations plan were performed in (two) ATM's were installed in the Zagreb financial centre and in Orahovica. VISA cards can now be used on the Bank's POS terminals. Support is not in place for the universal foreign currency clause. New modules for transactions and the main ledger, along with new technologies, were introduced. Higher quality of monitoring changes in the IS was accomplished through the introduction of the incident monitoring and requests system. System for centralized monitoring and management of system logs was introduced. Activities in connection with the conformance to legal and other regulations have continued. Several significant support systems were completed: software support for VAT, support for AML prevention records, CNB reporting system (statistical and solvency reports), support for forced collection of payment bases. Investing in the IS and its safety, as well as the monitoring of development in the field of IT is continuous; in 211. a certain number of computer and communication equipment in financial centres/branches and the Bank seat were replaced. Communication links toward branches and branch offices are now faster.

12 BUSINESS RISKS LIQUIDITY RISK Liquidity risk is the risk of the Bank's ability to fulfil all its obligations according to their maturity on time and within arranged time frames, without causing any undue losses or jeopardising the Bank's capital. The Bank sets its liquidity by constructing preconditions for long-term maintenance of liquidity in HRK and foreign currencies which would ensure the Bank unhindered and timely fulfilment of all its obligations, thereby ensuring permanent Bank liquidity and fulfilling preconditions for safe, stable and profitable business. In order to maintain the planned level of liquidity, the Bank must attempt to meet the following criteria: Regular maintenance of the planned level of "daily liquid assets", maintenance of time-adjusted assets and liabilities, and attaining surplus of foreign currency receivables over foreign currency liabilities, in accordance with the Decision on minimum necessary foreign currency receivables. Ever more complex business conditions and high level of non-liquidity/insolvency both in the business sector and the retail sector are a constant challenge before the Bank, with the goal being retention of the wanted level of solvency/liquidity. To that end, solvency/liquidity levels are being constantly monitored, and stress tests performed in order to optimise the Bank's solvency/liquidity. CREDIT RISK Credit risk is the risk of an undesirable event taking place due to which the debtor cannot or does not wish to return the money placed to him or fulfil his financial obligation according to agreed upon dynamic or set conditions. The Bank manages credit risk through regular analysis of the ability of existing and potential borrowers to pay back their obligations (equity and interest) and to change credit limits as necessary. In addition, exposure to this risk is also partially regulated through acquiring collateral and corporate/private guarantees. The Bank ensures control over crediting procedures - approval, monitoring and collection - through performance of activities of detailed and thorough check of credit rating of clients. The Bank monitors exposure toward individual clients based on client classification, type of exposure and provisioning of individual clients; it also controls the allocation of placements and off-balance potential items into risk groups. The bank evaluates credits/loans and other placements through the internal placement allocation system, based on client regularity in making their payments, based on repeated inspection of client credit ability and based on the quality of insurance instruments. In accordance with Bank policies, which in turn are run in accordance with pertinent valid legal provisions, the Bank sets aside reserves for identified grouped losses. The amount of so determined reserves may not be lower than.85% - 1% of no-risk assets and.85%-1% non-risk potential liabilities and those taken over. Since credit risk is the risk that can have the most serious consequences for the Bank, we are continually improving the credit/loan process and are adding new staff to the Risk Department. CURRENCY RISK Currency risk is the risk emerging pursuant to changes in currency relations and the change in value of the domestic currency with respect to foreign currencies in which the Bank has positions. Currency risk stems from non-adjusted asset and liability items in the balance sheet and off-balance in currencies where more significant changes in currency rates may have an effect on the profit and loss account. Monitoring and measuring of the currency risk is performed on a monthly and daily basis using the following methods, i.e. approaches: monitoring the currency structure of assets and liabilities and the currency structure of off-balance items, daily monitoring of Bank's exposure to currency risk according to the Decision on limiting the exposure of banks to currency risk, the credit and deposit plan, analysis of currency rate trends. Management of currency risk is performed through planning of the currency structure of the Bank's assets and liabilities and continued monitoring of the exchange rate of certain currencies and forecasting their trends and effects on the Bank's business.

13 BUSINESS RISKS In order to minimise this type of risk, the Bank's assets and liabilities are constantly optimised in order to neutralise this type of risk as much as possible. INTEREST RISK Interest risk is the risk arising from changes in active and passive interest rates, influencing profitability of business and earnings, and thereby the Bank's capital. Interest risk originates from non-adjusted interest rates, in scope and maturity of the parts of assets and liabilities sensitive to interest changes. The Bank uses the following methods for measuring the risk of change of interest rates: analysis of interest rate trends on the market, analysis of interest margins, analysis of net interest income, analysis of the static gap model. PRICE RISK Risk tied to holding and trading securities; it is a consequence of possible decrease of the value of securities in the Bank's portfolio. Therefore, management of this portfolio includes the need for constant monitoring of market prices of certain securities and maintaining the portfolio structure which supports the optimal profit to risk ratio. Sectors investing in securities are the ones furnishing data for monitoring price risks.

14 SLATINSKA BANKA d.d., Slatina Vladimira Nazora 2, Slatina AUDITOR S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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18 STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 211 POSITION Note Interest income Interest expensive 5 (46.567) (44.451) Net interest income Income from fees and commissions Expenses from fees and provisions 7 (3.356) (3.284) Net income from fees and provisions Net foreign exchange gains Other income other income Other expenses 1 (41.196) (38.356) Impairments and provisions 13 (6.452) (5.97) other expenses (47.648) (44.326) Profit before tax Corporate income tax 14 (1.25) (1.454) Profit for the year Earnings per share 33 3,62 3,93 Unrealized loss/profit from valuation of financial assets available for sale (1.257) 351 TOTAL COMPREHENSIVE PROFIT OF THE CURRENT YEAR Supplementary notes under number I to V form an integral part of these financial statements. 16

19 BALANCE SHEET / STATEMENT OF FINANCIAL POSITION As of 31 December 211 POSITION Note At 31 Dec. 211 At 31 Dec. 21 ASSETS Cash assets Receivables from Croatian National Bank Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investment in Affiliate Property, plant and equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares (398) (398) Unrealized loss / profit (1.223) 34 Capital gains Reserves Retained earnings Profit of the current year capital TOTAL LIABILITIES AND CAPITAL Supplementary notes under number I to V form an integral part of these financial statements. 17

20 STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 211 Share capital Own shares Unrealized loss / fair value Capital gains Legal reserves RESERVES Reserves for own shares Other reserves Retained earnings Balance at 31 December (398) Allocation of part of profit to retained earnings Unrealized loss (1.257) Effect of the change of accounting policies 496 Deferred tax property Profit for the current period Balance at 31 December (398) (1.223) Supplementary notes under number I to V form an integral part of these financial statements. Profit for the current year (3.614) (1.257)

21 STATEMENT OF CASH FLOWS - INDIRECT METHOD For the year ended 31 December 211 POSITION NET CASH FLOW FROM OPERATING ACTIVITIES Profit before tax Adjustment to net cash assets from operating activities Depreciation Loan impairments Impairments of other assets Provisions for court disputes Other impairments and provisions (net) Changes on assets and liabilities from operating activities Increase in receivables from CNB Decrease / increase in placements with banks Increase in loans and prepayments to customers Increase / decrease in other assets Decrease / increase in due to banks Decrease / increase in demand deposits Increase in term deposits Increase in other liabilities Paid corporate income tax Net cash flow from operating activities (33.817) (152) (28.881) (5.84) 111 (7.794) (2.119) (1.25) (4.62) (5.644) (4.712) (968) (1.454) CASH FLOW FROM INVESTING ACTIVITIES Increase in available-for- sale financial assets Increase / decrease in financial assets held to maturity Purchase of property, plant, equipment and intangible assets Decrease / increase in foreclosed assets Net cash flow from investing activities (25.421) (12.968) (5.62) (3.294) (47.33) (7.516) (2.72) (1.784) CASH FLOW FROM FINANCIAL ACTIVITIES Decrease / increase in loan liabilities Other changes in equity (net) Net cash flow from financial activities Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year (3.51) Supplementary notes under number I to V form an integral part of these financial statements. 19

22 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 I GENERAL 1.1. Legal framework and activities SLATINSKA BANKA d.d. SLATINA is registered at the Commercial Court in Bjelovar. The Bank's headquarter is in Slatina, Vladimira Nazora 2. The Bank is registered for the following services: domestic payment transaction in foreign currencies, cash services, all types of deposits, all types of loans, opening of documented letters of credit, issuing guarantees and bank warranties, bills of exchange and check activities, borrowings, purchase on own account or on behalf of its clients, security activities on own account or on behalf of its clients; issuing and managing means of payment, financial leases and factoring, providing information on the credit worthiness of its clients at their request, foreign credit activities and payment transactions, domestic payment transactions, representation services in the sale of insurance policies and other financial services Company Bodies The management Bodies of the Bank are Management Board, Supervisory Board and the Assembly. Management Board: 1. Angelina Horvat President of the Management Board 2. Elvis Mališ Member of the Management Board 3. Marko Krajina Member of the Management Board from 22 February Marko Brnić Member of the Management Board from 12 December 211 Supervisory Board members are: 1. Ružica Vađić President of the Supervisory Board 2. Tomislav Rosandić Vice President of the Supervisory Board 3. Hrvoje Markovinović Member of the Supervisory Board 4. Blaženka Eror Matić Member of the Supervisory Board 5. Denis Smolar Member of the Supervisory Board II BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS 2.1. Statement of adjustment and basis of presentation Financial statements of the Bank are prepared in accordance with the International Financial Reporting Standards (''IFRS'') (National gazette No 136/9, 8/1, 18/1, 27/1, 65/1, 12/1, 58/11, 14/11) issued by the Committee for Financial Reporting Standards nominated by Government of the Republic of Croatia, and in accordance with the accordance with statutory accounting requirements for banks in the Republic of Croatia. Banking operations in the Republic of Croatia are subject to the Credit institutions' Act, in accordance with which financial reporting is regulated by the Croatian National Bank ( the CNB ) Basis for preparation Financial statements have been prepared by the application of basic accounting presumption of the business event inception upon which the effects of operations are recognized when arisen and are shown in the financial statements for the period to which they relate and with the basic accounting assumption that going concern concept is applied. 2

23 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December Key estimates and uncertainty of estimates Certain estimates are used during preparation of the financial statements which have inflow to the statement of property and liabilities of the Bank, income and expenses of the Bank and the disclosure of potential liabilities of the Bank. Future events and their inflows could not be predicted with certainty and, following to this, the real results may differ from the estimated. Estimates utilized during preparation of the financial statements are subject to changes by the occurrence of new events, by gathering of additional experience, obtaining of additional information and comprehensions and by a change of environment in which the Bank operates. Key estimates used by the application of accounting policies during preparation of the financial statements relate to depreciation count of long-term intangible and tangible property, value decrease of property, value provision of receivables and provisions and the disclosure of potential liabilities Reporting currency The financial statements of the Bank are prepared in Croatian kuna as a measuring and reporting currency of the Bank. At 31 December 211 the official rate of Croatian kuna was HRK for 1 EUR (21: it was HRK) and HRK for 1 USD (21: it was HRK). 21

24 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 III SUMMARY OF ACCOUNTING POLICIES 1.1. Legal framework and activities Summary of accounting policies applied for preparation of the financial statements is set below. Policies are consistently applied to all the periods presented, unless otherwise indicated Interest income and expenses Interest income and expenses are recognized in the income statement for all interest bearing instruments on an accrual basis using the effective yield method and based on real purchase price. Interest income includes coupons earned on fixed income investment and trading securities for sale and accrued discount and premium on treasury bills and other discounted instruments. When the loan repayment becomes doubtful, principal amount is decreased to their recoverable amount, and interest income is thereafter recognised based on the interest rate used for discounting the future cash flow Fee and commission income and expenses Fees and commissions income mainly comprise fees and commissions from domestic and international payment transactions, guarantees, letters of credit, cards and assets management, and are recognized in the income statement when the corresponding service is provided, except for the cases when they are included in the calculation of effective interest rates. Fees and commissions expenses comprise fees paid to the authorized banks for foreign payment transactions and for the services of the Financial Agency ( FINA ) for domestic payment transactions Net gains and losses from financial instruments at fair value through profit or loss and the result of foreign exchange trading and exchange rate differences arising on translation of monetary assets and liabilities This category include earnings from foreign currency trading, realized and unrealized gains and losses from debt and equity securities held for trading, other financial instruments carried at fair value through profit or loss and derivative financial instruments. Net gains and losses from foreign exchange differences arising on translation of monetary assets and liabilities denominated in foreign currencies, are also included in this category Foreign currency translation Transactions in foreign currencies are translated into HRK (Croatian Kuna) at the exchange rate ruling at the date of the transaction. Croatian Kuna is the official currency of the Bank and the financial statements are presented in that currency. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to HRK at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognized in the income statement. Non-monetary items denominated in foreign currencies measured at fair value are translated to HRK using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Gains and losses arising on translation and foreign currency trading are recognized in the income statement for the year concerned. 22

25 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December Taxation Income tax expense represents the cumulative amount of the current tax liability and deferred tax. a) Current tax Current tax liability is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Bank's current tax liability is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. b) Deferred tax Deferred tax is provided using the liability method and shows tax effects on all significant temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. As there were no significant temporary differences, provisions for deferred tax in the financial statements of the Bank were not made Retirement benefits: Defined benefit schemes Defined contribution schemes Contributions for the Bank's retirement plan are debited to the income statement in the year to which they relate. Defined benefit schemes Defined benefit scheme surpluses and deficits are measured at: the fair value of plan assets at the reporting date; less current net value of mandatory benefits; and adjustments for unrecognised past service costs. The Bank does not have other retirement arrangements separate from the Croatian State pension system Financial instruments Bank's financial instruments are classified into portfolios based on the Bank's intention at the time of the acquisition of a financial instrument and in accordance with the Bank's investment strategy. Financial assets and financial liabilities are classified into the following categories: "at fair value through profit or loss", "held to maturity", "available for sale", "loans and receivables" and "other financial liabilities". All financial assets and liabilities are recognized, and derecognised on the trade date where purchase of a financial asset or financial liability is defined by the contractual delivery date within the timeframe established by conventions on the subject market. At initial recognition of financial assets or liabilities, the Bank measures assets or liabilities at cost, including transaction costs (excluding financial assets at fair value through profit or loss) which are directly attributable to the acquisition or issue of financial asset or financial liability. a) Financial assets and financial liabilities at fair value through profit or loss This category has two subcategories: financial instruments held for trading (including derivatives) and those which the Bank initially deployed into this category. A financial instrument is allocated to this category if acquired or incurred for sale or repurchase in the short term, for the purpose of short-term profit or deployment by the Management in this category. After initial recognition, financial assets at fair value through profit or loss are carried at fair value which is equal to the price quoted on recognized stock exchanges or is determined by some acceptable evaluation models. The Bank states unrealized gains and losses within net profit / (loss) from financial operations. 23

26 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables arises when the Bank provides cash to the clients with no intention of trading the receivables and include loans and receivables from banks, loans and receivables from clients, alternate bonds and obligatory reserve at the Croatian National Bank. Loans and receivables are stated net of allowances for impairment losses. Allowances for impairment losses are established if there is objective evidence that the Bank will not be able to collect all amounts due. The amount of the allowance for impairment losses is the difference between the carrying amount and the recoverable amount, which represent the present value of expected cash flows, including amounts recoverable from guarantees and collaterals. Allowances for impairment losses by specific loans are assessed with reference to the performance of the borrower, taking into account the value of any collateral or third party guarantees. Due outstanding loans are written-off in the amount of related impairment loss, and all subsequently collected amounts are credited to the income statement within other income. The Bank is charging interest to the debtors for delays in payment, which is accrued based on the cash receipts and stated within interest income. c) Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to maturity when the Bank has the positive intention and ability to hold it to maturity. Mentioned category includes certain debt securities. All financial instruments held to maturity are accounted at amortized cost less impairment provisions. Interest earned on the basis of these financial instruments is stated as interest income. The Bank regularly checks whether there is objective evidence that would indicate an impaired value of assets held to maturity. When it is determined the impairment of assets, the Bank recognizes provisions in the income statement. Impairment loss is cancelled in the next periods when an increase in the recoverable amount of the investment can be related objectively to an event occurring after the impairment recognition. d) Financial assets available for sale This category comprises non-derivative financial assets which are designated as available for sale or is not designated in other category. Financial assets designated as available for sale are intended to be held for an indefinite period of time, but may be sold in response to needs for liquidity or changes in interest rates, foreign exchange rates, or equity prices. Available-for-sale financial assets include certain debt and equity securities. After initial measurement, available-for-sale financial investments are subsequently measured at fair value based on quoted prices or amounts derived from cash flows. If the market value cannot be reliably determined, the Bank establishes fair value by using the techniques of evaluation. These include the use of prices achieved in recent transactions between informed, willing parties, reference to other substantially similar instruments, discount cash flow analysis and price option models, thereby making maximum use of information from the market. Unrealized gains and losses arising from changes in fair value of available-for-sale assets are recognized directly in equity until the sale or impairment of financial assets, and then the realized gains or losses are reported in net profit or loss for the period. 24

27 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 e) Other financial liabilities Other financial liabilities comprise all financial liabilities not held for trading or not designated at fair value through profit or loss Investments in Associates Associated companies are companies where the Company has control over bringing and implementing financial and business policies (portion over 5%). Investments into associated companies are stated at cost method, decreased by carrying value of these asset-investment to its recoverable amount. The Bank is also preparing consolidated financial statements with the subsidiary in which it has the entire share portion and control Fair value of financial instruments The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm's length market transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis or other valuation models Property, plant and equipment Plant and equipment are stated at cost less accumulated depreciation and / or accumulated impairment losses, and make tangible assets if their useful life is longer than one year, and single value is greater than HRK 3,5 (until 1 July 21: single value greater than HRK 2,) at the acquisition date. Cost includes purchase price, the cost of spare parts, plant and equipment, borrowing costs for long-term construction projects, and other dependent costs and estimated future costs of dismantling, if recognition conditions are met, while the liability is recorded as commission. Land and property are recorded at cost less accumulated depreciation of property and asset impairment losses recognized after the date of revaluation, on the basis of periodic evaluation by professional appraisers. Depreciation is calculated so to write-off the cost of the assets, except land and investments in progress, over their estimated useful lives using the straight-line method at the following rates: D E S C R I P T I O N Buildings Computer equipment Furniture Personal vehicles Software Other equipment Intangible assets 211 % 2, % 2, Depreciation is calculated separately by each item of assets till it is fully depreciated. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gains or losses from disposal of certain asset are determined as difference between sale revenue and carrying amount of that asset and are recognized as expense or income in the Income statement. The assets' residual values, useful lives and methods of depreciation are reviewed at each financial year end, and adjusted prospectively, if appropriate. 25

28 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December Intangible assets Intangible assets include IT programmes and leasehold investments initially measured at cost and depreciated on a straight line basis during the estimated useful life. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in the income statement in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. For the purpose of preparation of these financial statements the Bank calculated depreciation of intangible assets using depreciation rate of 2%. The amortisation expense on intangible assets with finite lives is recognised in the income statement in the expense category consistent with the function of the intangible asset. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash generating unit level Use of estimates The preparation of the financial statements in accordance with the IFRS requires that the Bank's Management Board make estimates and assumptions that affect the amounts reported in financial statements and accompanying notes. The estimates have been made based on historical experience and various other factors that are believed to be realistic in the circumstances and information available at the date of preparation of financial statements, the results of which form the basis for judgments about carrying values of assets and liabilities that are not easily ascertainable from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which they are incurred if affects only that period or the period in which they are incurred and future periods if affects current and future periods Contingent liabilities and commitments In the ordinary course of business, the Bank was by issuing guarantees, credentials, granting loans that were not fully utilized and other contingencies stated contingent liabilities and commitments in its offbalance records. These financial instruments are stated in the Bank's balance sheet when and if the Bank settle matured liability. Provisions for possible losses by contingent liabilities and commitments are made at a level Bank's management believe is adequate to absorb probable future losses. Management determines the adequacy of the provisions based upon reviews of individual items, current economic conditions, the risk characteristics of the various categories of transactions and other pertinent factors Cash flow statement For the cash flow reporting purposes, cash and cash equivalents are defined as cash, placements with banks and treasury bills of the Ministry of Finance with remaining maturity up to 9 days. 26

29 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision maker has been identified as the Bank's Management Board that reaches strategic decisions. The Bank has identified four primary segments: Retail, Corporate, Banks and Other. The primary segmental information is based on the internal reporting structure of business segments. Where it was possible the positions of the balance sheet and income statement were shown by mentioned segments Regulatory requirements The Bank is subject to the regulatory requirements of the Croatian National Bank. These regulations include limits and other restrictions pertaining to minimum capital adequacy requirements, classification of loans and off-balance sheet commitments and provisioning to cover credit risk, liquidity, interest risk and risk related to foreign currency position. 27

30 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 TES TO THE STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOME 4. INTEREST INCOME DESCRIPITON Corporate Individuals Banks Other INTEREST EXPENSES DESCRIPITON Corporate Individuals Banks Other FEE AND COMMISSION INCOME DESCRIPITON Corporate Individuals Other fee and commission income Fee and commission expenses DESCRIPITON FINA services Foreign banks Domestic customers

31 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December NET FOREIGN EXCHANGE GAINS Currency differences on translations Currency differences from currency clause Currency differences on foreign currency trading 211 (9.442) (5.154) OTHER INCOME Collected court and similar expenses from legal claims Income from individuals Income from sale of long-term tangible assets Income from collected insurance indemnifications Other OTHER EXPENSES Employees' expenses (Note 11) Depreciation (Notes 22 and 23) Other operating expenses (Note 12) EMPLOYEES' EXPENSES Net salaries Contributions from and on salaries Taxes and surtaxes from salaries Other employees' expenses

32 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December OTHER OPERATING EXPENSES Material and similar expenses Services expenses Representation, advertising and propaganda expense Reimbursements to the Supervisory Board Other IMPAIRMENT AND PROVISION COSTS Impairment of placements with banks Impairment of loans and prepayments to customers (Note 2) Impairment of other assets (Note 25) Special reserves for identified cumulative losses (Note 2) Impairment of investments in subsidiaries (Note 21) Collected written-off receivables Provisions for contingent liabilities (Note 31) Provisions for court disputes (Note 31) 211 (45) (84) (74) CORPORATE INCOME TAX Accounting profit Items which increase tax base Items which decrease tax base Corporate income tax base Corporate income tax rate Corporate income tax liability (1.416) % (71) %

33 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 TES TO THE BALANCE SHEET / STATEMENT OF FINANCIAL POSITION 15. CASH Gyro account Cash in hand: - HRK - foreign currency Cash at foreign account at foreign banks Cash at foreign account at domestic banks Other cash Impairment At 31 Dec (91) At 31 Dec (54) RECEIVABLES FROM THE CROATIAN NATIONAL BANK Obligatory reserve - HRK - foreign currency Other deposits with CNB Impairment At 31 Dec (1.14) At 31 Dec (724) Receivables from the Croatian National Bank represent obligatory reserves in HRK and foreign currency, calculated by the rate of 14% on HRK and foreign currency deposits and on foreign currency loans. From that amount the bank holds 7% of HRK obligatory reserves and 6% of foreign currency obligatory reserves with Croatian National Bank. 17. PLACEMENTS WITH BANKS Short-term loans to domestic banks Long-term loans to domestic banks Short-term deposits at foreign banks Short-term deposits at domestic banks Impairment At 31 Dec (1.17) At 31 Dec (1.545)

34 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 Movements on impairments are shown as follows: At 31 Dec. 211 At 31 Dec. 21 Balance at 1 January Net impairment (Note 13) Balance at 31 December (438) FINANCIAL ASSETS AVAILABLE FOR SALE Investments in equity securities Investments in investing funds Investments in debt securities - state units' bonds in HRK - state units' bonds with currency clause - trade companies' bonds - treasury bills of the Ministry of Finance in HRK - treasury bills of the Ministry of Finance with currency clause At 31 Dec At 31 Dec FINANCIAL ASSETS HELD TO MATURITY Trade companies bills State units' bills Sole traders' bills Factoring State units Treasury bills of the Ministry of Finance Impairment At 31 Dec (869) At 31 Dec (89) Movements on impairment are shown as follows: Balance at 1 January Net impairment (Note 13) At 31 Dec At 31 Dec

35 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December LOANS AND PREPAYMENTS TO CUSTOMERS At 31 Dec. 211 At 31 Dec. 21 Companies Individuals and sole traders Other Impairments and provisions for loan losses (4.886) (38.69) Risk concentration by economic sector in portfolio of loans to customers is shown as follows: At 31 Dec. 211 At 31 Dec. 21 Production Trade Tourism Agriculture Construction Services Individuals Others Impairment and provisions for loan losses (4.886) (38.69) Movements on impairment and provisions for possible losses are shown as follows: 211 Special reserves for identified cumulative Impairment losses Impairment 21 Special reserves for identified cumulative losses Balance at 1 January Net impairment and provisions (Note 13) Foreign currency differences Write-off and other (362) (362) (1) (3.674) (3.684) Balance at 31 December

36 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 According to the Bank's policies and current legislative, the Bank is required to establish reserves for identified cumulative losses of placements A, determined in loan portfolio based on previous experience. The amount of these reserves the Bank keeps at the level.85-1% of non-risk assets and.85-1% of non-risk contingent commitments as at 31 December 211, and according to regulations those can range from.85% - 1.2% (At 31 December 21:.85%-1% of non-risk assets and.85%- 1% of non-risk contingent commitments). 21. INVESTMENTS IN SUBSIDIARY ( in thousands of Kuna) At 31 Dec. 211 At 31 Dec. 21 Turbina d.o.o., Slatina Impairment Balance at 31 December 9.5 (3.741) (3.577) The Bank has 1% share portion in the mentioned company. Investment in subsidiary is stated at cost, decreased by carrying value of this asset investment to its recoverable amount. Movements on impairments are shown as follows: ( in thousands of Kuna) At 31 Dec. 211 At 31 Dec. 21 Balance at 1 January Net impairment (Note 13) Balance at 31 December

37 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December PROPERTY, PLANT AND EQUIPMENT Movements on property, plant and equipment are shown as follows: Land Buildings Equipment Furniture and transport vechiles Tangible assets under construction property, plant and equipment Purchase value Balance at 31 December Direct additions Transfer from assets under construction (3.29) Disposals and write-offs (6) (15) (75) Balance at 31 December Impairment Balance at 31 December Depreciation for Disposals and write-offs (6) (15) (75) Balance at 31 December Net carrying value as at 31 Dec Net carrying value as at 31 Dec The Bank's building in Slatina was pledged as a guarantee for received loan from Zveza Bank, Klagenfurt, Austria in the amount of EUR 2, thousand as at 31 December 211 (21: EUR 2, thousand), Note 29.

38 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December INTANGIBLE ASSETS Intangible assets in use Intangible assets under construction intangible assets Purchase value Balance at 31 December 21 Direct additions Transfer from assets under construction Disposals and write-offs Balance at 31 December (27) (1.234) (27) Impairment Balance at 31 December Depreciation for Disposals and write-offs Balance at 31 December 211 (184) (184) Net carrying value as at 31 Dec Net carrying value as at 31 Dec FORECLOSED ASSETS At 31 Dec. 211 At 31 Dec. 21 Land foreclosed over 2 years Buildings - foreclosed over 2 years Land Initially recognized value Other buildings Initially recognized value Other tangible and intangible assets Foreclosed assets stated in the Balance sheet as at 31 December 211, in the amount of HRK 8,354 thousand (At 31 December 21: HRK 5,61 thousand), relates to foreclosed assets by the Bank, as replacement for outstanding loans and placement receivables. The Bank Management Board estimates that the value of foreclosed assets approximate to their actual market value. 36

39 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December OTHER ASSETS At 31 Dec. 211 At 31 Dec. 21 Interest receivables Receivables for fees and provisions Derivative assets Trade receivables Receivables for paid income tax Prepayment receivables Prepayments Other receivables Deferred tax property Impairment (5.976) (5.194) Movements on impairment are shown as follows: At 31 Dec. 211 At 31 Dec. 21 Balance at 1 January New impairment (Note 13) Collected and relieved amounts Foreign exchange differences Write-offs and corrections Balance at 31 December (1.734) 1 (4) (3.51) 1 (3) DUE TO BANKS At 31 Dec. 211 At 31 Dec. 21 Term deposits - foreign currency

40 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December DEMAND DEPOSITS At 31 Dec. 211 At 31 Dec. 21 Demand deposits - individuals - HRK - foreign currency individuals Demand deposits trade companies - HRK - foreign currency trade companies Demand deposits - financial institutions - HRK financial institutions Demand deposits State and other institutions - HRK - foreign currency State and other institutions Restricted deposits - HRK - foreign currency restricted deposits Demand deposits - foreigners - HRK - foreign currency foreigners

41 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December TERM DEPOSITS At 31 Dec. 211 At 31 Dec. 21 Deposits individuals - HRK - foreign currency individuals Deposits trade companies - HRK - foreign currency trade companies Deposits financial institutions - HRK - foreign currency financial institutions Deposits State and other institutions - HRK - foreign currency State and other institutions Deposits - foreigners - foreign currency foreigners LOAN LIABILITIES At 31 Dec. 211 At 31 Dec. 21 Domestic banks (HBOR) Foreign banks loan liabilities Due to HBOR as at 31 December 211 amounted to HRK 41,97 thousand (At 31 December 21: HRK 32,723 thousand). These sources were intended for approval of the loans to legal entities and individuals in accordance with Croatian Bank for Reconstruction and Development programs (HBOR). Depending on the loan purpose, interest rates ranged from % to 5% (21: from % to 5.5%). Due to foreign banks as at 31 December 211 relate to liability to Zveza Bank, Klagenfurt, Austria in the amount of HRK 15,61 thousand (At 31 December 21: HRK 14,77 thousand). The loan was granted in the amount of EUR 2, thousand, with maturity on 3 June 212. Interest rate is bounded to 6-month EURIBOR, and is calculated quarterly. The loan was secured by pledge right on the property in Slatina (Note 22). 39

42 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December OTHER LIABILITIES At 31 Dec. 211 At 31 Dec. 21 Interest payable Fee and commission payables Derivative liabilities Liabilities to employees Liabilities for taxes and contributions from income Dividend liabilities Trade payables Deferred interest income Liabilities for loans over payments Other liabilities VAT liabilities PROVISIONS At 31 Dec. 211 At 31 Dec. 21 Provisions for court disputes Provisions for identified cumulative losses by off-balance contingent liabilities Movements in provisions are shown as follows: At 31 Dec. 211 At 31 Dec. 21 Balance at 1 January Changes in provisions for court disputes Movements in provisions for contingent liabilities and commitments (Note 13)

43 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December CAPITAL As at 31 December 211 subscribed capital amounted to HRK 91,897 thousand and has been divided into 918,972 shares each at a nominal value of HRK 1. Pursuant to the decision of the Assembly from 29 June 26 on abolishing privileged shares, it was determined that the Bank share capital of HRK 91,897 thousand will be divided into 172,412 non-materialized registered shares out of which 114,662 are regular non-materialized shares of the A series at nominal value of HRK 6 each and 57,75 are privileged non-materialized shares of the B series at nominal value of HRK 4. Pursuant to this decision this privilege was cancelled entirely thus turning the mentioned shares into regular non-materialized registered shares, each at nominal value of HRK 4. Pursuant to the decision of the Assembly from 29 June 26 on the division of shares, one regular Bank registered share at nominal value of HRK 6 is divided into 6 regular Bank registered shares at nominal value of HRK 1; one earlier privileged Bank share at nominal value of HRK 4 is divided into 4 regular Bank shares, at nominal value of HRK 1. As at 31 December 211, largest Bank's shareholders are shown as follows: SHAREHOLDER HYPO ALPE-ADRIA-BANK D.D./ SZIF D.D. (1/1) DRŽAVNA AGENCIJA ZA OSIG. ŠTEDNIH ULOGA I SANACIJU (1/1) SOKAČIĆ DRAGUTIN (1/1) VELEBIT OSIGURANJE D.D. (1/1) RAIFFEISENBANK AUSTRIA D.D./ ADRIS GRUPA D.D. (1/1) VABA D.D. BANKA VARAŽDIN (1/1) HRVATSKA POŠTANSKA BANKA D.D./ KAPITALNI FOND D.D. (1/1) GALIĆ JOSIP (1/1) MRKOCI MILIVOJ (1/1) FINESA CREDOS D.D. (1/1) CROATIA LLOYD D.D. (1/1) ZUBAK PAVO (1/1) PBZ D.D./ PBZ EQUITY - OIF S JAVM PONUDOM (1/1) PBZ D.D./ PBZ I-STOCK FOND - OIF S JAVM PONUDOM (1/1) VELEBIT ŽIVOT OSIGURANJE D.D. (1/1) BORAS ARIJANA (1/1) SESAR IVAN (1/1) TVIN D.O.O. (1/1) VUKELIĆ IVAN (1/1) ZAGREBAČKA BANKA D.D./ ALLIANZ ZAGREB D.D. (1/1) SLATINSKA BANKA D.D. (1/1) PRIJIĆ SLOBODAN (1/1) NEXE GRUPA D.D. (1/1) BAHOVEC SREČKO (1/1) SEČAK VJEKOSLAV (1/1) SATO D.O.O. (1/1) ostali UKUP At 31 Dec. 211 number of shares Partition in the stock capital in % 12,6 8,32 7,89 5,47 4,38 3,81 3,78 3,26 3,26 3,16 3,2 2,95 2,75 2,12 1,2 1,1,98,97,96,95,86,78,67,66,58,5 23,2 1, 41

44 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December EARNINGS PER SHARE At 31 Dec. 211 At 31 Dec. 21 Profit for the current year Number of shares (in thousands) Earnings per share ,62 kune ,93 kune 34. CONTINGENT LIABILITIES AND COMMITMENTS At 31 Dec. 211 At 31 Dec. 21 Performance guarantees - HRK - foreign currencies Payment guarantees - HRK - foreign currencies Letters of credit - foreign currencies Not withdrawn loan facilities Provisions for contingent liabilities and commitments (55) (469) CASH AND CASH EQUIVALENTS At 31 Dec. 211 At 31 Dec. 21 Cash Placements with other banks with remaining maturity up to 3 months Treasury bills and bills of exchange with remaining maturity up to 3 months portfolio available for sale Treasury bills and bills of exchange with remaining maturity up to 3 months portfolio held to maturity

45 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December FUNDS FOR AND ON BEHALF OF THIRD PARTIES At 31 Dec. 211 At 31 Dec. 21 Sources Less: Assets Unused funds (24.863) (26.269) 1.1 The Bank is managing Funds for and on behalf of third parties mainly placed in the form of borrowings. These funds are booked separately from the Bank funds. Income and expenses based on these funds are booked as income or expense of certain source, and the Bank does not bear any risk in this respect. For its services the Bank charged fee which was debited to these funds. 37. RELATED PARTY TRANSACTIONS Related parties are those in which one party is controlling or have significant influence in governing the financial and operating business decisions of other party. Bank activities with the related parties are conducted in the course of ordinary operations, which include loans and deposits assignation. Mentioned transactions are conducted under commercial conditions and market rates, respectively, prices. amount of transactions with related parties, closing balances at the end of a year and related income and expense for the year are shown as follows: At 31 Dec. 211 At 31 Dec. 21 Loans and prepayments to customers Members of the Management Board and their related parties Members of the Supervisory Board and their related parties Other (employees and their related parties) Contingent liabilities and commitments Members of the Management Board and their related parties Other (employees and their related parties) Demand deposits Members of the Management Board and their related parties Members of the Supervisory Board and their related parties Other (employees and their related parties) Turbina d.o.o., Slatina

46 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 At 31 Dec. 211 At 31 Dec. 21 Term deposits Shareholders with 5 or more percent of voting rights' shares Members of the Management Board and their related parties Other (employees and their related parties) Turbina d.o.o., Slatina Other assets Velebit osiguranje d.d. Velebit životno osiguranje d.d. Members of the Supervisory Board and their related parties Others (employees and their related parties) Turbina d.o.o., Slatina Other Income Velebit životno osiguranje d.d. Velebit osiguranje d.d. Members of the Management Board and their related parties Members of the Supervisory Board and their related parties Other (employees and their related parties) Turbina d.o.o., Slatina Expenses Velebit osiguranje d.d. Velebit životno osiguranje d.d. Members of the Management Board and their related parties Other (employees and their related parties) Turbina d.o.o., Slatina Remuneration to the Management Board is shown as follows: At 31 Dec. 211 At 31 Dec. 21 Net salaries Taxes and contributions

47 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December INTEREST RISK The following table represents the carrying value of the Bank's assets and liabilities, categorized by the earlier contractual re-pricing or maturity, depending which term is earlier as at 31 December up to 1 month from 1 to 3 months from 3 to 12 months from 1 to 3 years over 3 years interest free TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares Capital gains Revaluation reserves Reserves Retained earnings and profit of the current year capital (398) 149 (1.223) (398) 149 (1.223) liabilities and capital Net assets/liabilities and capital (274.68) ( ) 45

48 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 The following table represents the carrying value of the Bank's assets and liabilities, categorized by the earlier contractual re-pricing or maturity, depending which term is earlier as at 31 December up to 1 month from 1 to 3 months from 3 to 12 months from 1 to 3 years over 3 years interest free TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares Capital gains Revaluation reserves Reserves Retained earnings and profit of the current year capital (398) (398) liabilities and capital Net assets/liabilities and capital (9.539) (94.661) (2.19) ( ) 46

49 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 Table below shows effective interest rates for interest bearing assets and liabilities: Assets Receivables from Croatian National Bank Placements with banks Financial assets held to maturity Loans and prepayments to customers 211 %, -,25,5-3,7 2,7-6,5,25-15, 21 %, -,75,5-2, 2,99-1, 3, - 16, Liabilities Due to banks Demand deposits Term deposits Loan liabilities -, - 1,5,5-8,, - 5, -, - 1,5,2-8,, - 5,5 39. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Fair value represents the amount in which funds can be exchanged or liabilities settled in the best interest of all parties. Since market prices for the major part of Bank's financial assets and liabilities are not available, the fair value of these items is based on the estimates of the Management Board according to the type of assets and liabilities. According to the estimation of the Management Board, the market value is not materially different from the book value of all categories of assets and liabilities. 47

50 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December CONCENTRATION OF ASSETS, LIABILITIES AND OFF-BALANCE SHEET ITEMS At 31 Dec. 211 At 31 Dec. 21 Assets Liabilities Off-balance sheet items Assets Liabilities Off-balance sheet items Geographic region Republic of Croatia Europe geographic region Sector Republic of Croatia Croatian National Bank Trade Finance Tourism Agriculture, fishery Industry Individuals (including craftsmen and other independent professions) Non-residents Other analysis by sector

51 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December CURRENCY RISK Bank's foreign currencies and liabilities as at 31 December 211 are shown as follows: 211 EUR USD Other currencies HRK with currency clause foreign currency equivalents HRK TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares Capital gains Revaluation reserves Reserves Retained earnings and profit of the current year capital liabilities and capital (398) 149 (1.223) (398) 149 (1.223) Net assets/liabilities and capital (52.762) 43 (83) (11.92) 49

52 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 Bank's foreign currencies and liabilities as at 31 December 21 are shown as follows: 21 EUR USD Other currencies HRK with currency clause foreign currency equivalents HRK TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares Capital gains Revaluation reserves Reserves Retained earnings and profit of the current year capital liabilities and capital (398) (398) Net assets/liabilities and capital (429.18) 1 (1.88) (2.88)

53 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December LIQUIDITY RISK Remaining maturity of the Bank's assets and liabilities as at 31 December 211 is shown as follows: 211 up to 1 month from 1 to 3 months from 3 to 12 months from 1 to 3 years over 3 years TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares (398) (398) Capital gains Revaluation reserves (1.223) (1.223) Reserves Retained earnings and profit of the current year capital liabilities and capital Net assets/liabilities and capital 244 (76.92) (66.145) (4.582) 51

54 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211 Remaining maturity of the Bank's assets and liabilities as at 31 December 21 is shown as follows: 21 up to 1 month from 1 to 3 months from 3 to 12 months from 1 to 3 years over 3 years TOTAL ASSETS Cash Receivables from CNB Placements with banks Financial assets available for sale Financial assets held to maturity Loans and prepayments to customers Investments in subsidiaries Property, plant, equipment Intangible assets Foreclosed assets Other assets assets LIABILITIES Due to banks Demand deposits Term deposits Liabilities for received loans Other liabilities Provisions liabilities CAPITAL Subscribed capital Own shares (398) (398) Capital gains Revaluation reserves Reserves Retained earnings and profit of the current year capital liabilities and capital Net assets/liabilities and capital (39.374) ( )

55 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December CREDIT RISK The Bank is exposed to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due. The Bank structures the levels of credit risk by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis and subject to an annual or more frequent review. Exposure to credit risk is managed through regular analysis of the ability of borrowers and potential borrowers to meet interest and capital repayment obligations and by changing these lending limits where appropriate. Exposure to credit risk is also managed in part by obtaining collateral and corporate and personal guarantees. The primary purpose of credit commitments is to ensure that funds are available to a customer as required. Guarantees which represent irrevocable commitments that the Bank will settle the payment to the third parties if the customers are not able, bear the same credit risk as other loans. Contingent credit commitments represent undrawn portions of authorised loans and guarantees. According to credit risk related to contingent credit commitments, the Bank takes on potential loss exposure in the amount equal to total undrawn contingent commitments. However, possible loss amount is lower than total amount of undrawn contingent commitments, as the most of contingent credit commitments is related to maintenance of specific credit standards by customers. The Bank monitors the term of maturity of contingent credit commitments because longer-term commitments generally have a greater degree of credit risk than short-term. IV COURT DISPUTES AND POTENTIAL LIABILITIES At 31 December 211 against the Bank is led 12 court disputes of smaller value, besides the dispute which was started by part of Jugobanka d.d. in bankruptcy, Belgrade. Trade court in Bjelovar brought the sentence at 19 June 28 (Official decision VP-167/8-27) by which, as unfounded was rejected the complaint request of an accuser. To the stated Official decision was lodged a Complaint which accuser has stated against the sentence of the Trade court in Bjelovar. Bringing the Official decision of the High trade court to the stated complaint is pending. Simultaneously, the accuser was demanded by a complaint the determining of temporary measure, and on this at 3 June 28 the Republic of Croatia, High trade court of the Republic of Croatia, brought the Official decision Pž-319/8-4 by which the complaint of accuser is rejected as unfounded and the official decision of the Trade court in Bjelovar is confirmed. The Bank made reservation of assets for the subject dispute according to art. 8 of the Decision on liabilities for making reservation for court disputes which are led against credit institution (National gazette nr 1/9, 75/9 and 2/1). 53

56 54 TES TO THE FINANCIAL STATEMENTS For the year ended 31 December 211

57 Annual financial statements according to the Decision on the Structure and the Contents of Annual Financial Statements of Banks by the Croatian National Bank 55

58 BALANCE SHEET - position as at 31 Dec. 211 (in Kuna) AOP Position mark Previous period Current period ASSETS 1. CASH AND DEPOSITS WITH THE CNB (2+3) 1.1. Cash 1.2. Deposits with the CNB 2. DEPOSITS WITH BANKING INSTITUTIONS 3. MONETARY FUND TREASURY BILLS AND CNB FINANCIAL PAPERS 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 7. SECURITIES AND OTHER FINANCIAL INSTRUMENTS T BEING ACTIVELY TRADED AND ARE VALUED AT FAIR VALUE THROUGH THE RDG (BUSINESS SUCCESS REPORT) 8. DERIVATIVE FINANCIAL ASSETS 9. CREDITS/LOANS TO FINANCIAL INSTITUTIONS 1. CREDITS TO OTHER CLIENTS 11. INVESTMENTS IN SUBSIDIARIES, AFFILIATES AND JOINT VENTURES 12. ASSETS TAKEN OVER 13. MATERIAL ASSETS (LESS DEPRECIATION) 14. INTEREST, FEES AND OTHER ASSETS A) TOTAL ASSETS (1+4 TO 16) LIABILITIES 1. CREDITS FROM FINANCIAL INSTITUTIONS (19+2) 1.1. Short-term credits/loans 1.2. Long-term credits/loans 2. DEPOSITS (AOP 22 TO 24) 2.1. Deposits on giro and standard accounts 2.2. Savings deposits 2.3. Term deposits 3. OTHER CREDITS/LOANS (26+27) 3.1. Short-term credits/loans 3.2. Long-term credits/loans 4. DERIVATIVE FINANCIAL LIABILITIES AND OTHER FINANCIAL LIABILITIES BEING TRADED 5. ISSUED DEBT SECURITIES (3+31) 5.1. Short-term issued debt securities 5.2. Long-term issued debt securities 6. ISSUED SUBORDINATE INSTRUMENTS 7. ISSUED HYBRID INSTRUMENTS 8. INTEREST, FEES AND OTHER LIABILITIES B) TOTAL LIABILITIES ( ) CAPITAL 1. SHAREHOLDER CAPITAL 2. PROFIT (LOSS) OF CURRENT YEAR 3. ZRETAINED PROFIT (LOSS) 4. LEGAL RESERVES 5. STATUTORY AND OTHER CAPITAL RESERVES 6. UNREALISED PROFIT (LOSS) BASED ON VALUE ADJUSTMENT OF FINANCIAL ASSETS AVAILABLE FOR SALE 7. RESERVES EMERGING FROM PROTECTIVE TRANSACTIONS C) TOTAL CAPITAL (36 TO 42) D) TOTAL LIABILITIES AND CAPITAL (35+43) BALANCE SUPPLEMENT (to be filled in by the bank drafting the consolidated annual financial statements) 1. TOTAL CAPITAL Capital available to the shareholders of the parent company Minority share (45-46) 47 56

59 PROFIT AND LOSS ACCOUNT - for the period from 1 Jan. 211 to 31 Dec. 211 (in Kuna) Position AOP mark Previous period Current period Cumulative Cumulative Interest income 2. Interest expenses 3. Net interest income (48-49) Income from commissions and fees 5. Commission and fee expenses 6. Net income from Commissions and fees (51-52) Profit (loss) from investing into subsidiaries, affiliates and joint ventures 8. Profit/loss from trading 9. Profit/loss from built-in derivatives 1. Profit/loss from assets not actively traded valued according to the PLA 11. Profit / loss from activities in category of assets available for sale 12. Profit / loss)from activities in category of assets kept to maturity 13. Profit/ loss stemming from protective transactions 14. Income from investing into subsidiaries, affiliates and joint ventures 15. Income from other ownership investments 16. Profit/loss from calculated currency rate differentials 17. Other income 18. Other expenses 19. General administrative expenses and depreciation 2. Net business income before value adjustment and loss provisioning (5+53 to ) Expenses of value adjustments and provisions for losses PROFIT / LOSS BEFORE TAXES (67-68) PROFIT TAX PROFIT / LOSS OF CURRENT YEAR (69-7) Earnings per share SUPPLEMENT TO THE PLA (to be filled in by the bank drafting the consolidated annual financial statements) 1. PROFIT / LOSS OF CURRENT YEAR Attributed to the shareholders of the parent company Minority share (73-74) 75 57

60 CASH FLOW REPORT - INDIRECT METHOD - in the period from 1 Jan. 211 to 31 Dec. 211 (in Kuna) AOP Position mark Previous period Current period BUSINESS ACTIVITIES 1. Cash flow from business activities before changes in business assets (2 to 7) 1.1. Profit/loss before taxation 1.2. Value adjustments and provisioning for losses 1.3. Depreciation 1.4. Net non-realised profit/loss from financial assets and liabilities at fair value through the PLA 1.5. Profit/loss from sale of tangible assets 1.6. Other profit/losses 2. Net increase / decrease of business assets (9 to 16) 2.1. Deposits with the CNB 2.2. Monetary Fund treasury notes and CNB financial papers 2.3. Deposits with banking institutions and credits to financial institutions 2.4. Credits to other clients 2.5. Securities and other financial instruments held for trade 2.6. Securities and other financial instruments available for sale 2.7. Securities and other financial instruments not being actively traded and are valued at fair value through the RDG (business success report) 2.8. Other business assets 3. Net increase / decrease of business liabilities (18 to 21) 3.1. Sight deposits 3.2. Savings and term deposits 3.3. Derivative financial liabilities and other liabilities being traded 3.4. Other liabilities 4. Net cash flow from business activities before paying profit tax (1+8+17) 5. Paid profit/company tax 6. Net inflow / outflow of cash from business activities (22+23) INVESTMENT ACTIVITIES 7. Net cash flow from investment activities (26 to 3) 7.1. Receivables from sale / payments for purchase / of tangibles and intangibles 7.2. Income from sale / payments for purchase / of investing in affiliates, associated companies and joint ventures 7.3. Income from sale / payments for purchase / of securities and other financial I nstruments held to maturity 7.4. Received dividends 7.5. Other receivables / payments / from investment activities FINANCIAL ACTIVITIES 8. Net cash flow from investment activities (32 to 37) 8.1. Net increase / decrease of received credits/loans 8.2. Net increase / decrease) of issued debt securities 8.3. Net increase / decrease of subordinate and hybrid instruments 8.4. Receivables from share capital emissions 8.5. Dividend paid out 8.6. Other receivables / payments from financial activities 9. Net increase/ decrease of cash and cash equivalents ( ) 1. Effects of foreign currency rate fluctuations on cash and cash equivalents 11. Net increase/ decrease of cash and cash equivalents (38+39) 12. Cash and cash equivalents at the beginning of the year 13. Cash and cash equivalents at the end of the year (4+41)

61 CHANGES IN CAPITAL for the period from 1 Jan. 211 to 31 Dec. 211 Position AOP mark Share capital Position as at 1 January of the current year Changes in accounting policies and error corrections Adjusted position as at 1 Jan. of the current year (1+2) Sale of financial assets available for sale Changes to fair value of financial assets portfolio available for sale Tax on directly recognised items or those transferred from capital and reserves Other profit and losses recognised directly in capital and reserves Net profit / loss recognised directly in capital and reserves ( ) Profit / loss of current year recognised profit and loss for the current year (8+9) Increase / decrease of share capital Purchase/sale of treasury stock Other changes Transfer to reserves Dividend pay-out Profit allocation (14+15) Position as at the reporting date ( ) Available to the shareholders of parent company Treasury shares Legal, statutory and other reserves Retained profit /loss Profit / loss of current year Unrealised profit/loss based on value adjustment of financial assets available for sale Minority share (in Kuna) capital and reserves

62 The following is the adjustment of financial reports prepared in accordance with the Reporting and Significant Financial Statements Framework prescribed by the Decision of the CNB on the structure and the contents of annual financial statements. Financial statements Amount CNB form Amount Difference Explanation Income from interest Interest income Net currency rate differentials based on interest income Interest liabilities Interest expenses Net currency rate differentials based on interest expenses Fee and commission income Income from commissions and fees Liabilities from fees and charges/commissions Commission and fee expenses Net income from currency rate differentials Profit/loss from trading Profit/loss from built-in derivatives Profit/loss from calculated currency rate differentials (3) 69 (429) (13) (349) (67) Net currency rate differentials based on interest income Net currency rate differentials based on interest expenses Net currency rate differentials based on adjustments of placement values Other income from regular business transactions 99 Other income EXTRAORDINARY INCOME 99 Other business expenses Other expenses General administrative expenses and depreciation Provisions for court cases (litigation costs) Expenses of value adjustments and provisions Expenses of value adjustments and provisions for losses Profit (loss) from activities in category of assets available for sale Profit (loss) from investing into subsidiaries, affiliates and joint ventures (164) (2.638) (2.75) 67 Provisions for court cases (litigation costs) Net currency rate differentials based on adjustments of placement values Profit before taxation Profit (loss) before taxation Profit/company tax 1.25 Profit/company tax Profit for the year Profit (loss) of current year

63 Financial statements Cash assets Receivables from the Croatian National Bank Placements to banks Financial assets held to maturity Financial assets available for sale Loans and advances to clients Investments in associated company Assets taken over Real estate, plants and equipment Intangible assets Other assets assets Amount CNB form Amount Difference Explanation Cash Business account (coverage account) at the CNB Sight deposits with foreign banks Sight deposits with Croatian banks Deposits with the CNB (4.33) (4.33) Business account (coverage account) at the CNB Deposits with banking institutions Credits/loans to financial institutions (65.94) (62.11) (3.893) Sight deposits with foreign banks Sight deposits with Croatian banks Securities and other financial instruments held to maturity Monetary Fund treasury notes and CNB financial papers 14.8 Securities and other financial instruments available for sale Credits to other clients Investments in branches Assets taken over Material assets (less depreciation) (275) (275) Other material assets (group 6) Interest, fees and other assets Other material assets (group 6) Derivative financial assets assets

64 Financial statements Liabilities toward banks Sight deposits Term deposits Credit liabilities Other liabilities Provisions liabilities CAPITAL Capital stock Own/treasury shares Retained profit and profit of current year Reserves Capital gain Revaluation reserves capital TOTAL LIABILITIES AND CAPITAL Amount CNB form Amount Difference Explanation Credits/loans from other non-residents Deposits on business accounts and current accounts Savings deposits Limited deposits Term deposits Long-term credits/loans from financial institutions Other long-term credits/loans (2.596) (2.596) Credits/loans from other non-residents Interest, fees and other assets (585) (585) Limited deposits Derivative financial liabilities liabilities CAPITAL (398) Share capital Profit (loss) of current year Retained profit (loss) (1.223) Legal reserves Statutory and other capital reserves Unrealised profit/loss based on value adjustment of financial assets available for sale (1.223) capital TOTAL LIABILITIES AND CAPITAL

65 CORPORATE MANAGEMENT CODEX ANNUAL QUESTIONNAIRE All questions in this questionnaire pertain to the period of one year to which the annual financial statements also pertain. Company 1. Does the Company have web pages? If yes, what is the address (URL)? If not, why not? / DETAILS 2. Are semi-annual, annual and quarterly reports available to shareholders? At the seat of the Company and at the business address of the Company (if not, why not?) Through the web pages of the Company (if not, why not?) In English (if not, why not?) Annual report is available in English 3. Has the Company drafted a calendar of important events? (If not, why not?) If yes, Is the calendar of important events published on the web pages of the Company? (If not, why not?) Is the calendar of important events kept tidy and up-to-date? (If not, why not?) 4. Is the Company a part of joint shareholding with another company or companies? If yes, Please list these companies. Is data on joint shareholding published publicly and how? (If not, why not?) 5. Does the Company include in its annual report the data on financial instruments issued by the Company, which are owned by the members of the Supervisory Board, the Management Board or the Company management? (If not, why not?) No issue 6. Does the Company, on its web pages, publish data on financial instruments issued by the Company, which are owned by the members of the Supervisory Board, the Management Board or the Company management, and is this data regularly updated (within 24 hours)? (If not, why not?) No issue 7. Does the Company determine and publicly issue risk factors? (If not, why not?) 8. Has the Company established mechanisms ensuring the following: That the persons who handle or come into contact with eyes-only (privileged) information have the nature and significance of that information explained to then, including limitations? (If not, why not?) Oversight of the flow of privileged information and possible misuse (if not, why not?) 9. Does each Company share give the right to one vote? If not, Is all relevant information on the contents of those shares not giving the right to one vote each published in timely fashion and in public? (If not, why not?) How are these explanations (information) published? 1. Is the running of all the candidates for membership in the Supervisory Board or the Management Board being voted on at the General Assembly published on the web pages of the Company, or are they named along with their CV's? (If not, why not?) 11. Does the company have the same approach toward, and offer the same conditions to all shareholders? (If not, why not?) 63

66 12. Did the Company issue new shares? If yes, Are all shareholders permitted to take part in the increase of the Company's capital stock, proportionally to their shares in the present capital stock, in the form of transferable financial instruments containing such a right of priority, in order to protect the interests of shareholders who at the time of issue cannot register or pay in new shares? (If not, why not?) Is the intention of issuing new shares publicly declared at least 1 days before the date according to which the position in the share register will be determined and which will be competent for determining which shareholders have the right of priority in acquiring newly issued shares? (If not, why not?) 13. Did the company acquire or sell own (treasury) shares? If yes, was the acquisition /sale performed... on the open market? (If not, why not?) in a way not favouring certain shareholders, investors or groups of shareholders/investors? (If not, why not?) 14. Is the issuing of authorisation (proxy) for voting at the General Assembly fully simplified and void of strict formalistic conditions? (If not, why not?) 15. Did the Company, free of charge, ensure proxies for shareholders who could not, for any reason, vote at the General Assembly, to vote in accordance with their instructions? (If not, why not?) The Company provided proxy forms for taking part in the General Assembly. The forms can be found on the Company web pages. 16. Has the Company, or the Management Board, when convening the General Assembly, set a date for according to which it will check the position in the Share register - which will be competent for realising the right to vote in the General Assembly, in a way that this date is before the General Assembly, but no more than 6 days before it? (If not, why not?) 17. Does the decision on the dividend payout or prepayment of the dividend contain the date on which a person who is a shareholder of the Company realizes his or her right to the dividend payout, as well as the date and the period for said payout? (If not, why not?) The Company did not pay out dividends 18. Does the date of payout of dividend or prepayment of dividend fall at most 3 days after the decision? (If not, why not?) 19. Was the decision on the payout/prepayment of dividend determining the above dates issued and submitted to the stock exchange 2 days after the decision at the latest? 2. Were any shareholders favoured during the payout/prepayment of dividend? (If so, why?) The Company did not pay out dividends The Company did not pay out dividends 21. Were the minutes of the General Assembly, as well as all relevant information and documents with explanations pertaining to the minutes published on the web pages of the Company and accessible in the Company facilities to the shareholders from the first public issue of the minutes? (If not, why not?) 22. Were the minutes of the General Assembly and relevant data and documents published on web pages of the Company and in English? (If not, why not?) All accompanying materials, relevant information and documents are available to shareholders in the seat of the Bank. 23. Were there any conditions set with respect to taking part in the General Assembly or the use of the right to vote (regardless of the law or the articles of association), such as announcing participation beforehand, notarising authorisations/proxies, etc.? (If so, why?) The obligation of announcing participation beforehand is set by the Articles of Association 24. Does the report which the Supervisory Board or the Management Board submits to the General Assembly contain (along with the legally prescribed report), the assessment of total business success of the Company (read: the Bank), activities of the Company management, and special cooperation of the Board with the management? (If not, why not?) 25. Have you facilitated to shareholders their participation and voting at the General Assembly using modern communication technology means? (If not, why not?) 26. Did the management of the Company publicly issue the decisions of the General Assembly, as well as information on possible claims challenging said decisions? (If not, why not?) 27. Did the Supervisory Board, or the Management Board, reach the decision on its operational framework, including the list of regular meetings and information which regularly and timely needs to be placed at the disposal to the members of the supervisory board? (If not, why not?) Participation and voting by the shareholders at the General Assembly of the Company is prescribed by the Company Articles of Association The Supervisory Board convenes at least once a month and enacts decisions in its purview, in accordance with the Articles of Association and the Rules of Conduct of the Supervisory Board 64

67 28. Did the Supervisory Board, or the Management Board, enact internal Rules of Conduct? (If not, why not?) 29. Name the members of the Supervisory Board or the Management Board. Supervisory Board: Chairwoman: Ružica Vađć i, Members - Tomislav Rosandi ć, Blaženka Eror Mati ć, Denis Smolar, Hrvoje Markovinovi ć; 3. List for each member of the Bank's Supervisory Board, or the Management Board, all the other companies where he/she is also a member of the supervisory or the management board. If any of these could be considered competition to the Bank, please note this as well. Hrvoje Markovinovi ć, Blaženka Eror Matić and Denis Smolar are not members of any other supervisory or management boards; Ružica Vađić is the Chairwoman of the supervisory board of Elektroda Zagreb d.d., member of the supervisory board of Laguna Novigrad d.d., Chairwoman of the supervisory board of the Closed Investment Fund of Slavonija, member of the supervisory board of Medika d.d. Zagreb, Chairwoman of the management board oard of Auctor d.o.o.; Tomislav Rosandić is a member of the board of Nexe grupe d.d., Našice, Chairman of the supervisory board of Dilj d.o.o., Vinkovci, Chairman of the supervisory board of IGK Polet a.d. Novi Bečej, Serbia. The above companies are not considered competition. 31. Is the Supervisory Board, or the non-executive directors in the Management Board, mostly comprised of independent members? (If not, why not?) 32. Which members of the Supervisory Board, or the non-executive directors in the Management Board, are independent? 33. Does the Bank have a long-term succession plan? (If not, why not?) Members of the Management Board are named by the Supervisory Board, and approved by the CNB 34. Is the award received by the members of the SB and the MB completely or partly determined according to the contribution to the success of the Company? (If not, why not?) The award or the compensation is determined by the General Assembly 35. Is the compensation to the members of the SB: Determined by the decision of the General Assembly? Determined by the Company Articles of Association Determined in some other way (if yes, which way?) 36. Is detailed information on all compensations and other income by the Company or persons connected to the Company for each member of the SB or the MB, including the structure of such compensation, published publicly? (If not, why not?) (If so, where?) Expenses are published jointly 37. Does every member of the SB or the MB inform the Company of all changes in connection with their acquisition, waiver or the possibility of fulfilment of their voting rights over the Company shares, by the next day after such a change at the latest? (If not, why not?) 38. State all activities in which the members of the SB or MB, or persons connected to them took part in on the one side, and the Company or associated entities on the other. Regular depository and credit-based banking services, payment transactions and credit/debit card transactions 39. Were all transactions in which the members of the SB or MB, or associated persons and the Company and associated persons/entities participated: Concluded on the basis of the market (especially with respect to deadlines, interest, guarantees, etc.? (If not, why not and which?) Clearly listed in Company reports? (If not, why not and which?) Confirmed through an independent assessment by experts independent with respect to participants of the pertinent activity/transaction? (If not, why not and which?) 4. Are there contracts or agreements between any member of the SB or MB and the Company? If yes, Have they been first approved by the SB? (If not, why not?) Are important elements of such contracts or agreements contained in the annual report? (If not, why not?) 41. Has the SB or MB instituted a Naming Commission? (If not, why not?) If so, The SB alone prepares decisions concerning namings and monitors their execution. Has the Commission assessed the people, the size, the membership and the work quality of the SB and the management and made appropriate recommendations to the SB? (If not, why not?) 65

68 Has the Commission made an assessment of the knowledge, skills and experiences possessed by the individual members of the SB and informed the SB of this? (If not, why not?) Has the Commission contemplated on problems in connection with planning the continuity of the SB and the management? (If not, why not?) Has the Commission contemplated on the policy of the management with respect to employment of higher management? (If not, why not?) 42. Has the SB or MB instituted an Awards Commission? If so, Are most Commission members independent members of the SB? (If not, why not?) Did the Commission propose to the SB the policy of awarding the management which must encompass all types of awards, especially the fixed part of the award, the variable part tied to business success, the pension plan and severance pay? (If not, why not?) Concerning the variable part tied to business success, did the proposal of the Commission include recommendations for determining objective success assessment criteria? (If not, why not?) Did the Commission propose to the SB awards for individual members of the management (board), in accordance with the awarding policy and the assessment of each management member's efficiency? (If not, why not?) Did the Commission propose to the SB an appropriate form and contents of contracts with management members? (If not, why not?) Did the Commission monitor the amounts and structures of awards given to highest management and give general guidelines to the management with regard to this? (If not, why not?) Has the Commission, with respect to the incentive portion of the award to the management, when the incentive contains options for shares or other arrangements based on acquisition of shares, considered the general policy of such awarding and recommended to the BS appropriate solutions, and considered information which gets published in the annual report before the publishing? 43. Has the SB or MB instituted an Audit Commission? (If not, why not?) If so, Audit Commission Are most Commission members independent members of the SB? (If not, why not?) Has the Commission followed the integrity of financial information of the Company, and especially the correctness and consistency of accounting methods used by the Company and the Group the Company belongs to, including the criteria for consolidating financial statements of companies belonging to the Group? (If not, why not?) Has the Commission assessed the quality of the internal controls system and the isk management system, with the goal being proper identification of main risks the Company is exposed to (including risks tied to adherence to regulations), i.e. their proper identification, exposure, and management? (If not, why not?) Did the Commission work on ensuring the efficiency of the internal audit system, especially through drafting recommendations during phases of choosing, naming, repeat naming and dismissal of internal audit managers and with respect to assets available to them, as well as the assessment of actions undertaken by managers in view of findings and recommendations of the internal audit? (If not, why not?) f the function of internal audit does not exist within the Company, has the Commission made an assessment of the need to introduce it? (If not, why not?) Has the Commission given to the SB recommendations with respect to the choice, naming, repeat naming or replacement of the external auditor and on conditions of the auditor's hiring? (If not, why not?) Did the Commission monitor the independence and objectivity of the external auditor, especially with respect to the rotation of authorised auditors within the auditors' company and the compensation the Company is paying for their services? (If not, why not?) Has the Commission followed the nature and the quantity of services not constituting an audit, but still being received by the Company from the auditirs' or associated entities? ( If not, why not?) Has the Commission drafted such regulations on which services the auditors' and their associates may not render to the Company, which services they may render only with previous approval by the Commission, and which services they may perform without previous approval? (If not, why not?) Has the Commission deliberated on the efficiency of external audit and the actions of the senior management staff with respect to the recommendations made by the external auditor? (If not, why not?) Has the Commission inspected the circumstances with respect to the release of the external auditor and gave pertinent recommendations to the SB (if there was such a release)? (If not, why not?) The Bank organised the function of internal audit. No such services This is regulated through legal provisions. External auditor performs auditing services only. No recommendations No release of the external auditor. 66 Does the Commission have an open and unlimited communication with the management and the SB? (If not, why not?)

69 Who does the Commission answer to for their actions? To the Supervisory Board Does the Commission have an open and unlimited communication with internal and external auditors? (If not, why not?) Has the management been submitting the following to the Audit Commission: Timely and periodic overviews of financial statements and similar public documents of issuing such statements (if not, why not?); Information on changes in accounting principles and criteria (if not, why not?); Accounting procedures adopted for most actions (if not, why not?); All serious deviations from book and actual values of entries/items in the financial statements (if not, why not?); All correspondence with the internal audit department or independent auditors (if not, why not?); Has the management informed the Audit Commission about the methods used for recording of significant and unusual transactions and business events when book entries of such events can be accessed in various ways? (If not, why not?) No such transactions Has the Audit Commission talked to the independent auditor about issues such as: Amendments to, or keeping accounting principles and criteria (if not, why not?) Application of regulations (if not, why not?) Important assessments and conclusions in the preparation of financial statements (if not, why not?) The method of assessing risks and results (if not, why not?) High-risk areas of activity (if not, why not?) Observed more significant shortcomings and significant faults in internal audit (if not, why not?) Effects of external factors (economical, legal and industrial) on financial statements and auditing procedures. (If not, why not?) Has the Audit Commission ensured submission of high-quality information by dependant and associated companies and third parties (such as expert advisors)? (If not, why not?) No significant shortcomings/faults noticed 44. Was the documentation relevant for the operation of the SB or MB submitted on time to all members? (If not, why not?) 45. Were all decisions, along with the results of (individual) voting noted in the SB/MB meeting minutes? (If not, why not?) 46. Has the SB/MB drafted the evaluation of its performance in the previous period, including assessment of contribution and competence of each individual member, as well as the joint performance of the Commission, assessment of performances of SB-established commissions, and the assessment of goals met with respect to those set by the Company? 47. Name the members of the Management or executive directors. 48. Are there regulations for the operation of the Management or executive directors with respect to: The area of operations and goals; Conduct procedures; Solving conflicts of interest; Management secretariat; Meetings, decision-making, agenda, drafting and contents of minutes, and submission of documents; Cooperation with the SB. (If not, why not?) 49. Has the Company published the statement on the policy of management and SB, MB and Management awards as a part of the annual report? (If not, why not?) 67

70 5. If the Policy Statement exists, does it contain the following parts: Significant changes with respect to the rewards policy from the previous year (if not, why not?) Explanation of the relative share and importance of fixed and variable components of awarding (if not, why not?) Sufficient information on the success criteria on fulfilment of which is based the right to acquire share options, shares or other forms of variable compensation (if not, why not?) Sufficient information on the relationship between the awards and (operational) success (if not, why not?) Basic indicators and reasons for awarding annual bonuses or non-cash-based benefits (if not, why not?) Brief overview of contracts with members of the management, which must contain the information on the duration of said contracts, termination deadlines and especially severance pay. Any form of awarding the members of the Management, the SB and the MB containing options for shares or other rights to acquire shares, and whether the reward is based on the price of shares, must be approved by the General Assembly before coming to force. This approval pertains to the principles of rewards, not to approving awards to individual members of the management or the SB/MB. (If not, why not?) Statement on awards policy does not exist Statement on awards policy does not exist Statement on awards policy does not exist Statement on awards policy does not exist Statement on awards policy does not exist Statement on awards policy does not exist 51. Is the Statement on the SB/MB/Management awarding policy constantly present on the web pages of the Company? (If not, why not?) Award are defined through employment contracts. 52. Is detailed information on all salaries and compensations for each member of the Management or executive directors publicly declared in the annual report? (If not, why not?) Expenses are published jointly 53. Are all forms of awards to the members of the management or the SB, including options and other benefits publicly declared (in detail by entry and person) in the annual report? (If not, why not?) Expenses are published jointly 54. Does the Statement on Management/MB awards contain the following elements for each member of the management board who had the function in the year to which the Statement pertains: salary amount, whether paid out or not (if not, why not?) Compensations or benefits received from associated companies (if not, why not?) Awards in form of participation in profit or bonuses, and reasons for giving them (if not, why not?) Any additional awards paid out to management members for activities they performed for the Company outside their regular duties as management board members (if not, why not?) Compensation paid out or that is to be paid out to former Management members in connection with his/her cessation of performing his/her function in the year to which the Statement pertains (if not, why not?) estimated value of non-cash benefits regarded as compensation, which were not listed in previous points (if not, why not?) With respect to awards in shared or share options, or other types of awards based on share acquisition: The number of options or shares approved by the Company in the year to which the Statement pertains, as well as conditions for their use (if not, why not?) Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted The number of options executed in the year to which the Statement pertains, and (for each year) the number of shares and their executed prices, or the value of shares included in allocation to Management members at the end of the year (if not, why not?) Number of options not executed at the end of the year, price(s) at which the execution would be possible, date of execution and main conditions with respect to the execution (if not, why not?) Any change in connection with amendments to conditions of execution of individual options for the year to which the Statement pertains (if not, why not?) Every loan (including the debt position and the interest rate), advance payments or guarantee for the benefit of the Management members by associated companies included in the consolidated financial statement. (If not, why not?) Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted Statement on awards policy has not been enacted 55. Did every Management member or executive director inform the SB or the MB on all changes with respect to his/her acquisition, waiver or the possibility of fulfilment of his/her rights with respect to Company shares by next day after the emergence of such change at the latest, with obligation of the Company to publish this change publicly as soon as possible? (If not, why not?) State all activities in which the members of the Management or executive directors, or persons/entities connected to them took part in on the one side, and the Company or associated entities on the other. Credits/loans, deposits, current and business accounts

71 57. Were all transactions in which the members of the Management or executive directors, or associated persons/entities and the Company and associated persons/entities participated: Concluded on the basis of the market (especially with respect to deadlines, interest, guarantees, etc.? (If not, why not and which?) Clearly listed in Company reports? (If not, why not and which?) Confirmed through an independent assessment by experts independent with respect to participants of the pertinent activity/transaction? (If not, why not and which?) 58. Do the members of the Management or the executive directors have a significant stake in companies which may be regarded as competition for the Company? (If so, who, where and how much?) 59. Are Management members or executive directors also members of SB's in other companies? (If so, name the members, the other companies, and which functions the members have in their SB's) 6. Does the Company have its external auditing company? (If not, why not?) 61. Is the external auditing company: Connected to the Company in ownership or interest (if so, how?) Does the external auditor offer other services to the Company, whether by itself or through associated entities? (If so, name the services and how much that costs the Company) 62. Have the independent auditors informed the Audit Commission on the following: Deliberation on the main accounting policies Important shortcomings and faults in internal audit Alternative accounting actions Disagreements with the Management Risk assessment; and Possible analyses of fraud and/or misuse There were none There were none (If not, why not?) 63. Has the company publicly declared the amounts of compensation paid out to independent external auditors for services of audit and other services rendered? (If not, why not?) 64. Does the Company have internal auditors and an integrated system of internal control? (If not, why not?) 65. Do the investors have the possibility to request in writing, and receive within reasonable time, relevant information from the Company Management or from the person in the Company tasked with investor relations? (If not, why not)? The external auditor provided only the services of audit, in accordance with the conditions of their business. 66. How many meetings with investors did the Company Management have? 67. Did anyone suffer negative consequences because he/she pointed out to the competent bodies within the Company or outside the Company any insufficiencies in the application of regulations or ethical norms within the Company? (If so, why?) A larger number of meetings with the shareholders as a group, and with shareholders individually 68. Are all members of the Management, the SB and the MB in agreement that the answers to the questions in this questionnaire, to their best knowledge, completely true? (If not, name the members of the Management, the SB or the MB who do not agree, which answers they disagree with and why) 69

72 7 ORGANIZATIONAL DIAGRAM

73 CONTACTS SUPERVISORY BOARD Mrs. Ružica Vađić, Chairwoman Mrs. Blaženka Eror Matić, Member Mr. Hrvoje Markovinović, Member Mr. Denis Smolar, Member Mr. Tomislav Rosandić, Member CHAIRWOMAN OF THE MANAGEMENT BOARD Angelina Horvat, B.Econ. V.Nazora 2, Slatina Tel: 33/84-4, Fax: 33/ slatinska-banka.hr BOARD MEMBER Elvis Mališ, B.Econ. V.Nazora 2, Slatina Tel: 33/84-4, Fax: 33/ slatinska-banka.hr BOARD MEMBER Marko Krajina, B.Econ. V.Nazora 2, Slatina Tel: 33/84-4, 1/ Fax: 33/ , 1/ slatinska-banka.hr BOARD MEMBER Marko Brnić B.Econ. V.Nazora 2, Slatina Tel: 33/84-4, 1/ Fax: 33/ , 1/ slatinska-banka.hr CREDITS AND GUARANTEES SECTOR MANAGER Tina Živković, M.S. V.Nazora 2, Slatina Tel: 33/ fax: 33/ slatinska-banka.hr BUSINESS SUPPORT SECTOR MANAGER Natalina Zdjelarević, B.Econ. V.Nazora 2, Slatina Tel: 33/84-44 fax: 33/ slatinska-banka.hr PAYMENT TRANSACTIONS SECTOR MANAGER Snježana Pačarić, B.Econ. V.Nazora 2, Slatina Tel: 33/84-43 Fax: 33/ slatinska-banka.hr 71

74 CONTACTS TREASURY AND SOLVENCY SECTOR MANAGER Manuela Kolari ć, M.S. (Econ.) V.Nazora 2, Slatina Tel: 33/ Fax: 33/ slatinska-banka.hr ACCOUNTING SECTOR MANAGER Danijela Medved, B.Econ. V.Nazora 2, Slatina Tel: 33/84-45 Fax: 33/ slatinska-banka.hr LEGAL AND GENERAL ADMINISTRATION SECTOR MANAGER Nada Samardžić, LLB. V.Nazora 2, Slatina Tel: 33/84-46 Fax: 33/ slatinska-banka.hr IT SECTOR MANAGER Dražen Brkljač, B.Eng. V.Nazora 2, Slatina Tel: 33/84-47 Fax: 33/ slatinska-banka.hr 72

75 SLATINSKA BANKAD.D. BUSINESS NETWORK FINANCIAL CENTRES: FINANCIAL CENTRE OSIJEK Županijska 13, 31 Osijek Manager: Marina Penavin, tel: 31/2-797 FINANCIAL CENTRE ZAGREB Tomašićeva 2, 1 Zagreb Manager: Milan Kunica, tel: 1/ FINANCIAL CENTRE RIJEKA Jelačićev trg 1, 51 Rijeka Manager: Ivan Katalin, tel: 51/ BRANCHES: SLATINA BRANCH BANK MAIN OFFICE V.Nazora 2, 3352 Slatina Manager: Marina Koleno, tel: 33/ DONJI MIHOLJAC BRANCH Vukovarska 4, 3154 D.Miholjac Manager: tm Juraj Nerovčić, tel: 31/ DARUVAR BRANCH Kralja Tomislava 22, 435 Daruvar Manager: Jasminka Ajdić, tel: 43/ NAŠICE BRANCH Trg Izidora Kršnjavija 3, 315 Našice Manager: Sanja Kapraljević, tel: 31/ \AKOVO BRANCH Stjepana Radića 9, 314 \ akovo Manager: Ivan Pološki, tel: 31/ ORAHOVICA BRANCH Kralja Zvonimira 14, Orahovica Manager: Juraj Nerovčić, tel: 33/674-2 POŽEGA BRANCH Kamenita vrata 4, 34 Požega Manager: Ivan Renka, tel: 34/ VALPOVO BRANCH Trg kralja Tomislava bb, 3155 Valpovo Manager: Ignjo Ivanović, tel: 31/65-45 VIROVITICA BRANCH Trg kralja Tomislava 6, 33 Virovitica Manager: Ksenija Stanić, tel: 33/ PITOMAČA BRANCH Trg kralja Tomislava bb, 3345 Pitomača Manager: Neven Bedeković, tel: 33/ KOPRIVNICA BRANCH Dr. Željka Selingera 2a, Koprivnica Manager: Predrag Marković, tel: 48/ SLAVONSKI BROD BRANCH Matije Gupca 39, 35 Slavonski Brod Manager: Filip Tolić tel: 35/4-7 ILOK BRANCH Trg žrtava domov. Rata 1, Ilok Manager: Tomislav Pole, tel:32/ BRANCH OFFICES: ČAČINCI BRANCH OFFICE Trg dr. F. Tuđmana 1, Čačinci tel: 33/4-999 BRIBIR BRANCH OFFICE Bribir 1, Bribir tel: 51/ VIŠKOVO BRANCH OFFICE Vozišće 1, Viškovo tel: 51/ VA KAPELA BRANCH OFFICE Kralja Tomislava 13, 3541 Nova Kapela tel: 35/ SUHOPOLJE BRANCH OFFICE Trg Sv. Terezije 1,3341 Suhopolje tel: 33/ ČA\AVICA BRANCH OFFICE Zagrebačka 11, Čađavica tel: 33/ KUTJEVO BRANCH OFFICE Trg Graševine 2, 3434 Kutjevo tel:34/ PLETERNICA BRANCH OFFICE Trg Z. Frankopana 1, 3431 Platernica tel: 34/ VA BUKOVICA BRANCH OFFICE Zagrebačka 2, Nova Bukovica tel:33/ KAPTOL BRANCH OFFICE Trg Vilima Korajca 15, Kaptol tel:34/ MIKLEUŠ BRANCH OFFICE Ivana pl. Zajca bb, Mikleuš tel: 33/