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

Transcription

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

2 Management report for the period from 1 January to 30 September 2016 According to the unaudited financial statements, in the first nine months of 2016 Zagrebačka banka Group recorded a profit after tax of HRK 1,409 million. The result is significantly higher compared to the previous year due to the negative impacts of 2015 amendments to the Consumer Credit Act. The Group with all its members has realised solid operating result based on sustainable growth in operating income and responsible risk management approach. The overall level of non-performing loans decreased, while the provision coverage is 63.0%. With the purpose of optimizing business processes and realising synergies, in 2015 Zagrebačka banka acquired 100% stake in companies UniCredit Leasing Croatia d.o.o. and Locat Croatia d.o.o. and increased its ownership share in UniCredit Bank d.d. Mostar to 99%. With the abovementioned acquisitions, the Group has further optimized its governance and business role within UniCredit Group. Due to positive trends in the macroeconomic environment and realised economic growth, an increase in credit activity is recorded in Consumer Financing and Corporate segments. The total volume of loans remained stable despite the conversion of Swiss franc loans in the Republic of Croatia. We are continuously focused on the transformation of the Group, improving business processes by introducing innovative technologies with the goal to provide to our clients fast, quality and personalized services tailored to their needs. Key performance indicators in the first nine months of 2016: Zagrebačka banka Group operating income totals HRK 4,151 million (+14.1%) Total operating expenses amount to HRK 1,921 million (+7.3%) Profit before impairment and other provisions amounts to HRK 2,230 million (+20.8%) Impairment and other provisions amount to HRK 529 million Net loans to customers amount to HRK 83,959 million Deposits from customers amount to HRK 91,115 million

3 Management report for the period from 1 January to 30 September 2016 (continued) The Group s operating income in first nine months of 2016 amounted to HRK 4,151 million. Compared to the same 2015 period the increase is HRK 514 million (+14.1%), due to lower funding costs and higher Net trading and other income. Net interest income amounted to HRK 2,620 million which is HRK 117 million (+4,7%) higher compared to the same period in 2015, as a result of stable average volume of loans and lower funding costs. Net fee and commission income amounted to HRK 959 million and is by HRK 56 million (+6.2%) higher compared to the same prior year period, following the increase in payment transaction fees and fees from asset management, brokerage and consulting services. Net trading and other income amounted to HRK 572 million. The increase of HRK 341 million is the result of HRK 135 million gain from sale of stake in Visa Europe Limited, as well as higher net trading income compared to the previous year, when the result was negatively affected by January 2015 amendments to the Consumer Credit Act. Operating expenses amounted to HRK 1,921 million and increased by HRK 130 million (+7.3%), mainly as full annual contribution to the Single Resolution Fund was accrued compared to gradual recognition throughout the prior year and as leasing segment operating expenses were included, due to change in the scope of consolidation. The Group s cost to income ratio ( C/I ratio ) remained good and equalled 46.28% (2015: 49.24%). Profit before impairment and other provisions was HRK 2,230 million, higher by HRK 384 million (+20.8%), due to the previously described movements in Operating income and Operating expenses. Impairment and other provisions amounted to HRK 529 million and they have decreased by HRK 1,871 million, mainly due to Swiss franc loans conversion expense in the previous year. By responsible risk management approach the level of non-performing loans decreased, while the level of provisions against non-performing loans increased from 53.7% to 63.0%. Total assets of the Group amounted to HRK 126,662 million and decreased by HRK 1,342 million (-1.0%), due to optimisation of funding sources. Net loans to customers are stable and amount to HRK 83,959 million, despite the conversion of Swiss franc loans in Zagrebačka banka d.d. where the increase was realised mainly in Corporate segment, while Retail segment started its recovery since April The leading position and market share in loan activity were retained. Deposits from customers represent primary source of funding and amounted to HRK 91,115 million at the end of the period. The increase of HRK 4,571 million (+5.3%) was realised in deposits from Corporate and Retail. Loans to deposits ratio is stable and amounts to 92.1%. Deposits from banks and borrowings amounted to HRK 13,240 million. The decrease of HRK 6,063 million (-31.4%) is a result of lower funding needs and an increase in deposits form customers. Other liabilities amount to HRK 3,930 million. The decrease of HRK 1,191 million (-23.3%) mostly relates to utilisation of provision for conversion of Swiss franc loans. Capital and reserves amounted to HRK 18,377 million and increased by HRK 1,341 million (+7.9%). The capital adequacy ratio of Zagrebačka banka d.d. increased to 25.4%, (31 December 2015: 24.7%).

4 Financial results for the period from 1 January to 30 September 2016 Zagrebačka banka Group Δ 2016 vs 2015 Income statement (HRK mln) % HRK mln (4/1) 4 (2-1) Interest income 5,009 4,615 (7.9%) (394) Interest expenses (2,506) (1,995) (20.4%) 511 Net interest income 2,503 2, % 117 Fee and commission income 1,049 1, % 33 Fee and commission expenses (146) (123) (15.8%) 23 Net fee and commission income % 56 Net trading and other income % 341 Operating income 3,637 4, % 514 Operating expenses (1,791) (1,921) 7.3% (130) Profit before impairment and other provisions 1,846 2, % 384 Impairment and other provisions (2,400) (529) (78.0%) 1,871 Profit from operations (554) 1,701 (407.0%) 2,255 Share of profit from associates (2.9 %) (1) Profit before tax (520) 1,734 (433.5%) 2,254 Income tax 124 (325) (362.0%) (449) Net profit (396) 1,409 (455.9%) 1,805 Attributable to equity holders of the Bank (398) 1,407 (453.6%) 1,805 Attributable to minority interests 2 2 (13.4%) (0) Net profit (396) 1,409 (455.9%) 1,805 Zagrebačka banka Group Δ 2016 vs 2015 Balance sheet (HRK mln) 31 Dec Sep 2016 % HRK mln (2/1) 4 (2-1) Cash and deposits with CNB 12,767 11,010 (13.8%) (1,757) Loans and receivables from banks 14,054 16, % 2,063 Securities 10,497 9,445 (10.0%) (1,052) Net loans to customers 84,340 83,959 (0.5%) (381) Tangible and intangible assets 2,486 2, % 292 Other assets 3,860 3,352 (13.1%) (508) Total assets 128, ,662 (1.0%) (1,342) Deposits from customers 86,544 91, % 4,571 Deposits from banks and borrowings 19,303 13,240 (31.4%) (6,063) Other liabilities 5,121 3,930 (23.3%) (1,191) Total equity 17,036 18, % 1,341 Total liabilities and equity 128, ,662 (1.0%) (1,342) Equity attributable to equity holders of the Bank 17,013 18, % 1,340 Equity attributable to minority interests % 1 Zagreb, 28 October 2016 Chairman of the Management Board Miljenko Živaljić

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

6 Appendix 3. Reporting period: to Quarterly financial report for credit institutions-tfi-ki Identification number (MB): Subjects identification number Personal identification number (OIB): Issuer company: Zagrebačka banka d.d. Post office number and city: Zagreb Street and number: Trg bana Josipa Jelačića 10 address: Internet address: ode and name of municipality/city: 133 Zagreb Code and name of county: Consolidated report: 21 Grad Zagreb Number of employees: 5,716 (as at the quarter-end) YES Code in NKD: 6419 Subsidiaries and associates of the Bank which are included in Zagrebačka banka Group are shown in Note 4): Companies included in consolidation (according to IFRS): Headquarters: MB: Prva stambena štedionica d.d. Savska 62, Zagreb ZB Invest d.o.o. Ivana Lučića 2a, Zagreb Centar Kaptol d.o.o. Nova Ves 17, Zagreb Pominvest d.d. Gundulićeva 26a, Split Suvremene poslovne komunikacije d.o.o. Savska cesta 28, Zagreb Zagreb nekretnine d.o.o. Nova Ves 17, Zagreb UniCredit Leasing Croatia d.o.o. Heinzelova 33, Zagreb Locat Croatia d.o.o. Damira Tomljanovića Gavrana 17, Zagreb UniCredit Partner d.o.o. Damira Tomljanovića Gavrana 17, Zagreb ALLIB NEKRETNINE d.o.o. Damira Tomljanovića Gavrana 17, Zagreb BACAL ALPHA d.o.o. Damira Tomljanovića Gavrana 17, Zagreb ZABA Partner d.o.o. Augusta Cesarca 2, Zagreb UniCredit Bank d.d. Kardinala Stepinca bb, Mostar Zane BH d.o.o. Branilaca Sarajeva 20, Sarajevo UniCreditLeasing d.o.o. Ložionička 7, Sarajevo UniCredit Broker d.o.o. Obala Kulina bana 15, Sarajevo Multiplus card d.o.o., Zagreb Ivana Lučića 2a, Zagreb Allianz ZB d.o.o., Zagreb Nike Grškovića 31, Zagreb Allianz ZB d.o.o., Zagreb Ivana Lučića 2a, Zagreb Accounting: Contact person: Korpar Hrvoje (only name and surname of contact person is included) Phone: 01/ Telefax: address: Surname and name: Živaljić Miljenko (person representing the company) Documentation to be published: 1. Financial reports (balance, income statement, cash flow statement, statement on changes in equity and notes to financial statements) 2. Interim Management report 3. Statement of persons responsible for preparation of financial reports M.P. (signature of the President of the Management Board)

7 ASSETS 1. CASH AND DEPOSITS WITH THE CNB ( ) 1.1.Cash 1.2.Deposits with the CNB 2. DEPOSITS WITH BANKING INSTITUTIONS 3. TREASURY BILLS AND CNB BILLS BALANCE SHEET balance as at Position name 4. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD FOR TRADING 5. SECURITIES AND OTHER FINANCIAL INSTRUMENTS AVAILABLE FOR SALE 6. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD TO MATURITY 1 Amounts in HRK AOP code Previous period Current period ,767,328,005 11,009,790, ,517,363,441 2,914,315, ,249,964,564 8,095,474, ,846,392,060 12,581,750, ,600,972,233 4,475,474, ,483,232 21,384, ,755,223,069 4,826,000, ,770, , SECURITIES AND OTHER FINANCIAL INSTRUMENTS WHICH ARE NOT ACTIVELY TRADED, BUT ARE DESIGNATED TO FAIR VALUE THROUGH PROFIT OR LOSS 8. DERIVATIVE FINANCIAL ASSETS 9. LOANS TO FINANCIAL INSTITUTIONS 10. LOANS TO OTHER CUSTOMERS 11. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES 12. FORECLOSED ASSETS 13. PROPERTY, PLANT AND EQUIPMENT (NET OF DEPRECIATION) 14. INTEREST, FEES AND OTHER ASSETS A) TOTAL ASSETS ( do 016) LIABILITIES 1. BORROWINGS FROM FINANCIAL INSTITUTIONS ( ) 1.1. Short-term borrowings 1.2. Long-term borrowings 2. DEPOSITS (AOP 022 to 024) 2.1. Giro and current accounts 2.2. Savings deposits 2.3. Term deposits 3. OTHER BORROWINGS ( ) 3.1. Short-term borrowings 3.2. Long-term borrowings 4. LIABILITIES ARISING FROM DERIVATIVES AND OTHER LIABILITIES HELD FOR TRADING 5. ISSUED DEBT SECURITIES ( ) 5.1. Short-term issued debt securities 5.2. Long-term issued debt securities 6. ISSUED SUBORDINATED INSTRUMENTS 7. ISSUED HYBRID INSTRUMENTS 8. INTERESTS, FEES AND OTHER LIABILITIES B) TOTAL LIABILITIES ( ) EQUITY 1. SHARE CAPITAL 2. CURRENT YEAR PROFIT / (LOSS) 3. RETAINED EARNINGS / (LOSS) 4. LEGAL RESERVES 5. STATUTORY AND OTHER CAPITAL RESERVES 6. UNREALISED GAIN / (LOSS) ON VALUE ADJUSTMENT OF AVAILABLE-FOR- SALE FINANCIAL ASSETS ,693, ,435, ,202,903,145 1,920,059, ,207,515,330 3,535,706, ,339,919,245 83,959,119, ,303,476 82,438, ,508,348 63,037, ,486,396,713 2,778,206, ,311,870,054 1,286,956, ,003,279, ,662,463, ,879,498,085 5,893,556, ,561, ,282, ,421,936,282 5,158,274, ,639,669,928 95,916,006, ,288,486,557 23,599,002, ,196,281,100 15,408,572, ,154,902,271 56,908,431, ,328,232,568 2,545,545, ,266, ,820, ,046,965,722 2,112,724, ,956,316,728 1,666,629, ,164,428,079 2,263,590, ,968,145, ,285,328, ,404,839,100 6,404,839, ,844,354 1,409,218, ,593,833,905 6,397,518, ,048,522 64,048, ,906,041,757 3,902,384, ,214, ,125, HEDGE ACCOUNTING RESERVES C) TOTAL EQUITY (036 to 042) ,035,133,795 18,377,134,529 D) TOTAL LIABILITIES AND EQUITY ( ) ,003,279, ,662,463,204 BALANCE SHEET SUPPLEMENT (to be inputed by issuer preparing consolidated financial reports) 1. TOTAL EQUITY ,035,133,795 18,377,134, Attributable to equity holders of the Bank ,012,433,515 18,353,325, Attributable to minority interests ( ) ,700,280 23,809,183

8 INCOME STATEMENT for the period to Position name AOP code 1 1. Interest income 2. Interest expense 3. Net interest income ( ) 4. Fee and commission income 5. Fee and commission expense 6. Net income from commissions and fees ( ) 7. Gains / losses from investment in subsidiaries, associates and joint ventures 8. Gains / losses from trading activities 9. Gains / losses from embedded derivatives 10. Gains / losses from assets which are not actively traded, but are designated at fair 11. Gains / losses from activities related to available-for-sale financial assets 12. Gains / losses from activities related to held-to-maturity investments 13. Gains / losses from hedging transactions 14. Income from investments in subsidiaries, associates and joint ventures 15. Income from other equity investments 16. Gains / losses from foreign exchange differences 17. Other income 18. Other expenses 19. General administrative expenses and depreciation 20. Net income from operations before impairment and other provisions 21. Impairment losses and other provisions 22. PROFIT / LOSS BEFORE TAX ( ) 23. INCOME TAX EXPENSE 24. PROFIT / LOSS FOR THE PERIOD ( ) 25. Earnings per share INCOME STATEMENT SUPPLEMENT (to be inputed by issuer preparing consolidated financial statements) Previous period Amounts in HRK Current period Cumulated Quarterly Cumulated Quarterly ,008,899,981 1,586,304,921 4,615,361,899 1,525,286, ,505,627, ,495,713 1,994,876, ,300, ,503,272, ,809,208 2,620,485, ,985, ,048,994, ,914,041 1,082,043, ,957, ,235,710 64,648, ,555,186 54,736, ,758, ,265, ,487, ,221, ,463,229 12,181,844 32,459,026 12,230, ,905,537-8,611,813-19,788, , ,475-9,003,870 4,471,928 7,240, ,550,801 45, ,077,549 4,945, ,341, ,753 11,027, , ,040,993 58,128, ,613,099 79,511, ,505,980 79,147, ,689,076 87,628, ,928,603 70,067, ,578,111 90,829, ,574,105, ,882,035 1,657,156, ,472, ,880,265, ,488,745 2,262,788, ,451, ,400,176,677 1,859,686, ,682, ,995, ,911,609-1,190,197,888 1,734,106, ,456, ,778, ,509, ,888, ,351, ,132, ,688,793 1,409,218, ,105, PROFIT / LOSS FOR THE PERIOD 2. Attributable to equity holders of the Bank 3. Attributable to minority interests ( ) ,132, ,688,793 1,409,218, ,105, ,837, ,906,836 1,407,486, ,489, ,704,747-46,781,957 1,731, ,466

9 Position name in the period from AOP code STATEMENT OF CHANGES IN EQUITY to Attributable to shareholders of the Bank Share capital Treasury shares Legal, statutory, capital and other reserves Retained earnings/ loss Profit/loss for the year Unrealised gain/loss from revaluation on AFS financial assets Minority interests Amounts in HRK Total Balance as at 1 January of the current period Changes in accounting policies and errors Restated balance as at 1 January of the current period ( ) Disposal of available-for-sale financial assets Changes in fair value of available-for-sale financial assets ,404,839, ,970,090,279 6,573,548, ,259, ,214,865 22,700,280 17,035,133, ,404,839, ,970,090,279 6,573,548, ,259, ,214,865 22,700,280 17,035,133, ,699, ,699, ,628,070 9,322 95,637,392 Deferred tax on movements in fair value reserve of available-for-sale financial assets Other gains/losses recognised directly in equity Net gains/losses recognised directly in equity ( ) Profit / loss for the period Total recognised income and expense for the current period ( ) Increase / decrease of share capital Acquisition / disposal of treasury shares Other movements Transfer to reserves Dividends paid Distribution of profit ( ) Balance as at 31 December of the current period ( ) Banks w hich prepare consolidated annual financial statements separately disclose changes in minority interests in the relevant sections of equity ,960,292 3,960, ,213-47,855, , ,400-48,163, ,213-47,855, ,089, ,078-63,264, ,407,486, ,731,550 1,409,218, ,213-47,855,632 1,407,486,535-15,089,091 1,404,472 1,345,953, , , ,192, ,192, ,259, ,259, , , , ,251, ,259, , , ,404,839, ,966,432,599 6,375,441,338 1,407,486, ,125,774 23,809,183 18,377,134,529

10 CASH FLOW STATEMENT - Direct method in the period to Amounts in HRK Position name AOP code Previous period Current period Operating activities 1. Cash flow from operating activities (002 do 009) 1.1. Interest and similar receipts 1.2. Fee and commission receipts 1.3. Interest and similar payments 1.4. Fee and commission payments 1.5. Operating expenses paid 1.6. Net gains / losses from financial instruments at fair value through profit or loss 1.7. Other receipts 1.8. Other payments 2. Net (increase) / decrease of operating assets (011 to 018) 2.1. Deposits with the CNB 2.2. Ministry of Finance treasury bills and CNB treasury bills 2.3. Deposits with financial institutions and loans to financial institutions 2.4. Loans to other customers 2.5. Securities and other held-for-trading financial assets 2.6. Securities and other available-for-sale financial assets 2.7. Securities and other financial instruments which are not actively traded, but are designated at fair value through profit or loss 2.8. Other assets 3. Net increase / (decrease) of operating liabilities (020 to 023) 3.1. Demand deposits 3.2. Savings and term deposits 3.3. Derivative financial liabilities and other trading liabilities 3.4. Other liabilities 4. Net cash flow from operating activities before income taxes paid ( ) 5. Paid income tax 6. Net cash flow from operating activities ( ) Investment activities 7. Net cash flow from investment activities (028 to 032) 7.1. Receipts from sale of / (payments to acquire) property, plant and equipment and intangible assets 7.2. Receipts from sale of / (payments for purchase) investments in subsidiaries, associates and joint ventures 7.3. Receipts from sale of / (payments to acquire) securities and other investments held to maturity 7.4. Received dividends 7.5. Other receipts / (payments) from investment activities Financing activities 8. Net cash flow from financing activities (034 to 039) 8.1. Net increase / (decrease) of borrowings 8.2. Net increase / (decrease) of issued debt securities 8.3. Net increase / (decrease) of subordinated and hybrid instruments 8.4. Receipts from issue of share capital 8.5. Payment of dividends 8.6. Other receipts / (payments) from financing activities 9. Net cash flow ( ) 10. Effects of foreign exchange differences on cash and cash equivalents 11. Net increase / (decrease) in cash and cash equivalents ( ) 12. Cash and cash equivalents at the beginning of the year 13. Cash and cash equivalents at the end of the year ( ) 001 2,542,591,924 2,323,450, ,872,040,176 4,482,850, ,046,484,823 1,092,002, ,078,900,245-1,982,640, ,348, ,435, ,552,808,465-1,578,214, ,020, ,050, ,103, ,837, ,316,440-2,334,489, ,439,404 1,293,836, ,169, ,036, ,186,046-2,210,617, ,542,407,958-2,430,887, ,467,178 1,174, ,139, ,368, ,176,427-2,210, ,956,736-85,187, ,404,622,749 1,846,483, ,361,225 2,775,896, ,235,036,017-1,228,998, ,225, ,584, ,969,898,233 1,835,444, ,434, ,333, ,711,463,412 1,676,111, ,126, ,463, ,377, ,740, ,075,053,944 10,493, ,205,478, , ,826,366 32,953, ,247,748,416-1,565,917, ,020,701,938-1,565,574, ,320, ,150,725, , ,357,588, ,270, ,788,379-74,469, ,372,376, ,739, ,884,966,481 8,802,849, ,257,343,393 8,413,109,178 * Collections arising from interest and dividends may be classified as operating activities (IAS 7 Appendix A)

11 NOTES TO THE FINANCIAL STATEMENTS in HRK Net liquid assets Cash 2,517,363,441 2,914,315,337 Deposits with the CNB 10,249,964,564 8,095,474,833 Deposits with banking institutions 12,846,392,060 12,581,750,925 Treasury bills and CNB bills 4,600,972,233 4,475,474,718 Securities and other financial instruments held for trading 19,483,232 21,384,311 Secutiries and other financial instruments available for sale 5,755,223,069 4,826,000,302 Securities and other financial instruments which are not actively traded, but are designated at fair value in income statement 119,693, ,435,560 36,109,092,518 33,036,835,986 Loans to and receivables from customers Companies and similar organisations and Government 56,529,994,049 57,704,796,727 Individuals and unincorporated businesses 37,363,138,623 35,842,097,130 Total gross loans 93,893,132,672 93,546,893,857 Companies and similar organisations and Government -6,765,297,479-6,959,521,965 Individuals and unincorporated businesses -2,787,915,948-2,628,252,102 Impairment allowance -9,553,213,427-9,587,774,067 84,339,919,245 83,959,119,790 Deposits Companies and similar organisations and Government 29,615,640,419 33,080,252,040 Individuals and unincorporated businesses 56,928,542,562 58,035,097,760 Banks and other financial institutions 9,095,486,947 4,800,656,657 95,639,669,928 95,916,006,457

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

13 Net interest income Previous period Current period Cumulative Quarterly Cumulative Quarterly Interest and similar income 5,008,899,981 1,586,304,921 4,615,361,899 1,525,286,313 Loans to and receivables from customers 3,476,954,100 1,161,005,427 3,367,706,605 1,107,045,477 Debt securities 169,703,691 47,325, ,993,010 52,028,920 Loans to and receivables from banks 24,550,085 8,111,593 23,972,328 7,440,197 Derivative instruments 1,337,692, ,862,264 1,073,689, ,771,719 Interest expense and similar charges 2,505,627, ,495,713 1,994,876, ,300,677 Current accounts and deposits from banks 124,970,373 38,702,656 89,695,805 23,077,455 Current accounts and deposits from individuals 739,146, ,408, ,536, ,417,205 Current accounts and deposits from companies and other organisations 159,825,233 52,561, ,464,224 51,564,688 Borrowings 192,297,533 64,774, ,131,757 37,720,489 Derivative instruments 1,289,387, ,049,239 1,040,048, ,520,840 2,503,272, ,809,208 2,620,485, ,985,636 Net fee and commission income Previous period Current period Cumulative Quarterly Cumulative Quarterly Fee and commission income 1,048,994, ,914,041 1,082,043, ,957,485 Domestic payment transaction related fees and commissions 374,460, ,687, ,856, ,465,432 Credit card related fees and commissions 295,636, ,979, ,496, ,017,037 Foreign payment transaction related fees and commissions 120,625,169 42,731, ,119,636 38,098,292 Investment management, brokerage and consultancy fees 106,156,800 38,531, ,483,825 70,535,374 Other fees and commissions 152,115,131 44,984, ,086,481 35,841,350 Fee and commission expense 146,235,710 64,648, ,555,186 54,736,426 Credit card related charges 95,272,856 46,632,683 77,933,527 38,906,415 Domestic payment transaction related charges 28,212,024 9,968,787 27,191,390 9,993,830 Foreign payment transaction related charges 7,807,338 2,019,225 5,467,042 1,811,050 Other fees and commissions 14,943,492 6,027,433 11,963,227 4,025, ,758, ,265, ,487, ,221,059 Impairment losses and provisions Previous period Current period Cumulative Quarterly Cumulative Quarterly Impairment losses on loans and receivables from customers -831,377, ,735, ,773, ,311,548 Other impairment losses and provisions including provision for conversion of Swiss franc loans -1,568,799,165-1,584,951, ,908,091-4,683,745-2,400,176,677-1,859,686, ,682, ,995,293 Earnings per share Previous period Current period (Loss)/profit attributable to equity holders of the Bank -150,259,586 1,407,486,535 Weighted average number of ordinary shares in issue 320,222, ,215,663 Basic and diluted earnings per share (expressed in HRK, per share)