BANKS IN BULGARIA JANUARY MARCH 2018

Transcription

1 BANKS IN BULGARIA JANUARY MARCH 2018

2 Banks in Bulgaria January March 2018 BULGARIAN NATIONAL BANK

3 2Banks in Bulgaria January March 2018 Bulgarian National Bank, Sofia, 1, Knyaz Alexander I Square Website: This issue includes materials and data received by 13 July 2018 (Sections II V) and by 17 July 2018 (Section I). The contents of the Banks in Bulgaria quarterly bulletin may be quoted or reproduced without further permission. Due acknowledgment is requested. ISSN (print) ISSN (online)

4 Contents 3 I. State of the Banking System... 5 II. Methodological Notes III. Banking Supervision Regulation IV. Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups V. Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Banks in Bulgaria January March 2018

5 4Banks in Bulgaria January March 2018 Abbreviations BGN The Abbreviation of the Redenominated Lev BRF Bank Resolution Fund BNB Bulgarian National Bank CIU Collective investment undertakings Core ROA Core Return on Assets FSC Financial Supervision Commission FVC Financial Vehicle Corporations HHI Herfindahl-Hirschman Index (Market Concentration Index) KTB Corporate Commercial Bank NSI National Statistical Institute PPF Professional Pension Fund ROA Return on Assets ROE Return on Equity RWA Risk Weighted Assets UPF Universal Pension Fund VPF Voluntary Pension Fund VPFPS Voluntary Pension Fund with Professional Schemes

6 I. State of the Banking System (first quarter of 2018) 5 1. The Banking System: Structure and Trends Dynamics by Bank Group Structural Changes in the Banking System Balance Sheet Credit Operations Deposits Balance Sheet Equity Banking System Risk Profile Developments in Major Risks to the Banking System Asset Quality Profitability Regulatory Capital Liquidity State of the Banking System

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8 7 1. The Banking System: Structure and Trends Dynamics by Bank Group In the first quarter of 2018 banking system assets decreased slightly by 0.2 per cent to reach BGN 97.6 billion at the end of March. The market share of the five largest banks 2 accounted for 59.1 per cent (against 55.9 per cent at the end of December 2017). The market share of domestic banks in total bank assets declined to 21.9 per cent by end-march, with EU bank subsidiaries and EU bank branches changing slightly their shares to 72.7 and 2.4 per cent, respectively. The share of non-eu banks rose to 2.9 per cent. State of the Banking System Chart 1 Market Shares of Domestic and Foreign Banks Note: The sum total may not add up to 100 per cent due to rounding. Source: the BNB Structural Changes in the Banking System Balance Sheet Within the structure of banking system assets, the following changes were observed between January and March 2018: More essential growth was recorded in the share of loans and advances (from 61.0 to 63.0 per cent) compared with previous quarters dynamics. 1 Data on the banking system and bank groups are based on the reports as of 31 March 2018, published on the BNB website with the March 2018 press release. Information on individual banks is based on updated and revised data obtained prior to the publication of this issue. 2 Developments in the five largest credit institutions and domestic banks reflected the merger of CIBANK into the UBB and the acquisition of Municipal Bank by a foreign investor.

9 8Banks in Bulgaria January March 2018 Cash, cash balances at central banks and other demand deposits declined from 19.9 to 18.9 per cent. Securities portfolios also decreased (from 14.2 to 13.4 per cent). Chart 2 Structure of Banking System Assets at the End of the Corresponding Period (per cent) Note: The sum total may not add up to 100 per cent due to rounding. Source: the BNB Credit Operations Over the reviewed quarter gross credit portfolio (excluding loans and advances to central banks and credit institutions) increased by BGN 921 million (1.6 per cent) to BGN 57.0 billion. Loans to nonfinancial corporations and households increased most significantly in absolute terms (by BGN 444 million and BGN 419 million, respectively). Credit to other financial corporations went up BGN 67 million, while that to the general government sector dropped by BGN 9 million. The share of lev-denominated loans in the credit portfolio continued to increase to reach 61.3 per cent at the end of March (60.9 per cent at the end of December 2017). Loans in euro declined to 37.0 per cent, from 37.5 per cent three months earlier.

10 9 Chart 3 Structure of Gross Loans and Advances as of 31 March 2018 State of the Banking System Source: the BNB Deposits Over the first quarter of 2018 banking system deposits decreased by BGN 56 million (0.1 per cent) to reach BGN 83.7 billion by end-march. Declines were reported in non-financial corporations deposits (by BGN 358 million) and credit institutions deposits (by BGN 262 million), unlike household deposits increasing by BGN 339 million and general government sector s and other financial corporations deposits growing by BGN 181 million and BGN 43 million. The foreign currency structure shows lev-denominated deposits rising from 57.3 to 57.8 per cent and euro deposits falling from 34.4 to 33.9 per cent. Chart 4 Structure of Deposits by Sector as of 31 March 2018 Note: The sum total may not add up to 100 per cent due to rounding. Source: the BNB.

11 10 Banks in Bulgaria January March Balance Sheet Equity At the end of March banking balance sheet equity was BGN 12.0 billion. 2. Banking System Risk Profile The situation in the external and internal economic environment continues to affect favourably banking system operations. In the second and third quarters of 2018 real GDP growth is expected to gradually accelerate on a quarterly and annual basis, with private consumption and corporate investment growth contributing most significantly to it. 3 Economic growth in terms of private consumption is likely to accelerate in the context of further increasing employment and wage outlooks and improved assessments of households of their financial position and general economic situation in Bulgaria. Investment growth reflects optimistic expectations of corporations about the future situation in the business climate and demand for their products. Risk to the asset quality Economic environment characteristics create conditions for strengthening credit demand. Low lending interest rates and increased income and profits have pushed up potential borrowers propensity to finance an increasing share of consumption and investments by borrowed funds. Bank credit supply has also increased under the influence of banking system liquidity and strengthened risk appetite of credit institutions. Upward trends in household income and corporate profits have contributed to the mitigation of the residual (potential) credit risk in the banking balance sheet. It has been achieved, of the one part, by the improved capacities of borrowers to service regularly their obligations. Bank sales and write-offs of non-performing loans appear to be additional drivers for reducing the residual credit risk in bank balance sheets. Macroeconomic environment developments have also played an important role for the future position of credit portfolios. This has been achieved through the level of adequacy of bank decisions as regards the speed of credit expansion and requirements applied to potential borrowers. Bank claims on non-financial corporations have increased slower than credit to households, with housing lending appearing to be the fastest-growing segment in the credit market, contributing most significantly to the rise in claims on the non-government sector in See Economic Review, 1/2018: documents/bnb_publication/pub_ec_r_2018_01_en.pdf

12 11 So far, the credit expansion has been broadly moderate, its rates staying close to the nominal GDP growth rates, as seen in safeguarding the levels of the credit-to-gdp ratio. Nevertheless, it cannot be excluded that a heigthened level of a potential credit risk may appear in individual segments of the credit market. Such an effect can arise, for example, from the pro-cyclical impact of the property market on credit activity. The increased prices of real estate have affected the loan-to-value (LTV) ratio even in the context of significant growth in credit, thereby creating conditions for risk underestimation and excessive credit growth. In addition, given the correlation between real estate prices and credit activity dynamics, a possible future increase in housing prices at rates higher than those of income may signal a potential rise in household indebtedness which, in turn, could affect their capacity to service existing obligations. Housing price dynamics requires that banks should also devote more attention to guarantee early identification of and adequate reactions to potential imbalances which could jeopardise the stability of some sectors in the real economy and the banking system. The macroprudential reaction can be expressed in both enhanced risk monitoring and use of various macroprudential tools. Results of the bank lending survey 4 conducted by the BNB in the fourth quarter of 2017 suggest that credit standards remained broadly unchanged for small and medium-sized enterprises and were slightly eased for large customers. Housing credit standards were eased for consumer loans and retained for housing loans. IFRS 9 implementation coincides with the cyclical upturn. Banks are challenged to avoid underestimation of the risk arising from any factors and processes in the economic environment which could reduce borrowers capacity to service their debt on a regular basis. Incorporating such risks into bank credit decisions would limit possible negative effects on the asset quality, which could potentially emerge from such economic environment developments. State of the Banking System Risk to the capital position The capital position of the banking sector continues to be marked by a significant capital surplus above the regulatory requirements for the capital adequacy and leverage ratios. If lending increases which will result in a larger share of higher-riskweighted assets and relevant growth in total risk weighted assets, a decrease may be expected in capital adequacy ratios. Given the increased willingness of banks to lend, a possible asset expansion at 4 See Economic Review, 1/2018: documents/bnb_publication/pub_ec_r_2018_01_en.pdf

13 12 Banks in Bulgaria January March 2018 rates exceeding those of capital changes would lead to a decline in the leverage indicator, as well. Banks are challenged to ensure that lending growth will either accelerate at moderate rates or be accompanied by actions to provide additional capital so as to prevent rapid erosion of the capital position. Furthermore, favourable economic developments provide a good opportunity to further reinforce the capacity of facing up to a potential credit risk. Risks to profitability Though the low rate environment continues to exert a pressure on banking interest income, credit institutions have managed to obtain comparatively high returns. The main contributors are low prices of attracted funds and the upward trend in the share of fees and commissions in operating revenue. Increased lending is expected to result in higher interest income of the banking sector. In case of future increases in interest levels, interest rate margins are likely to expand due to the rise in return on assets outpacing the cost of borrowing. A potential increase in profits and profitability indicators means that banks would then need to decide what portion of their financial result can be distributed in the form of dividends. Bank decisions in that respect should support their own funds through retaining a sufficient amount of profits to avoid a strong decline in the capital surplus above the regulatory requirements in the context of growing bank lending and relevant growth in risk weighted assets. Funding and liquidity risk Acceleration of lending rates would affect both the size of capital requirements and the banking sector liquidity position. Credit institutions will face the dilemma whether to keep the current degree of liquidity coverage of attracted funds and the loans-to-deposits ratio correspondingly, or to increase the share of loans in assets. It cannot be ruled out that the degree of liquidity coverage of attracted funds in the system and in individual credit institutions may decrease as a result of transformation of a portion of liquid assets into instruments of higher profitability, which do not qualify as level 1 liquid assets. The change in the role of down payment in financing consumption would also lead to a change in the loans-to-deposits ratio. These developments do not necessarily mean liquidity risk sharpening but outline a situation different from this in recent years.

14 13 3. Developments in Major Risks to the Banking System 3.1. Asset Quality In the first quarter of 2018 the dynamics in the quality of assets suggested the following: the gross and net amount of non-performing loans, the shares of non-performing loans and advances and restructured loans continued to decline; the downward trend in banking system credit risk levels across institutional sectors was sustained; the quality of investment in assets, other than loans (securities and placements in banks), for which the domestic environment is the main risk, remained good; the total amount of risk exposures grew as a result of both higher lending and regulatory changes; the banking system stability increased as a result of the improved quality of assets and the high level of capital indicators. State of the Banking System risk exposures rose 5.0 per cent to BGN 54.7 billion over the quarter, particularly credit risk exposures to the central government or central banks and those to institutions. The distribution among major risks (credit, operational, position, foreign exchange and commodity) did not experience essential changes. Gross non-performing loans and advances decreased by 7.0 per cent (BGN 577 million) to BGN 7.7 billion from end-december The share of banks non-performing loans and advances 5 decreased by 0.9 percentage points to 9.3 per cent at the end of March 2018, with three-month growth in gross loans and advances (by 1.7 per cent, BGN 1.4 billion) also contributing to this effect. Net non-performing loans and advances, representing the residual (potential) credit risk in banks balance sheets decreased by 15.1 per cent to BGN 3.6 billion and by the end of March 2018 accounted for 4.6 per cent of net loans and advances. 6 5 The share of gross non-performing loans and advances in total gross loans and advances is calculated using the European Banking Authority methodology AQT_3.2 Level of non-performing loans and advances (NPL ratio), published in the EBA Risk Indicators Methodological Guide: eba.europa.eu/documents/10180/ /eba+methodological+guide+- +Risk+Indicators+and+DRAT.pdf/02c d45-ac3e-23eb2f79f032 6 Net non-performing loans and advances are calculated using the EBA methodology: gross non-performing loans and advances less the accumulated impairment for this category. The share of net non-performing loans and advances is calculated using the net value of both non-performing loans and advances and total loans and advances.

15 14 Banks in Bulgaria January March 2018 At the end of March 2018 the capital exceeding the regulatory minimum of 8 per cent and set capital buffers covered entirely net non-performing loans in the banking system (residual credit risk). Chart 5 Share of Non-performing Loans and Advances in Loans and Advances of the Banking System (per cent) Source: the BNB. With the implementation of the IFRS 9 as of early 2018 and the requirement for measurement of expected credit losses against the end of 2017, the impairment of performing and non-performing loans and advances posted an increase. The total accumulated impairment in the banking system was BGN 4.8 billion at the end of the quarter. Gross non-performing loan and advance impairment coverage rose to 53.7 per cent, from 49.3 per cent at the end of Over the first quarter the quality of balance sheet items other than loans remained good with a high share of the most liquid balance sheet aggregate of cash, cash balances with central banks and other demand deposits. Securities carried no high risk or impairment since most were issued by the general government sector. The share and volume of capital instruments remained insignificant. Claims on credit institutions rose over the quarter, with their dynamics driven by a decline in resident and an increase in non-resident credit institutions. The share of latter prevailed.

16 15 Chart 6 Structure of Non-performing Loans and Advances by Sector as of 31 March 2018 State of the Banking System Note: The sum total may not add up to 100 per cent due to rounding. Source: the BNB Profitability Banks profit amounted to BGN 267 million at 31 March Return on assets (ROA) was 1.10 per cent and return on balance sheet equity (ROE) 8.88 per cent. Net interest margin (net interest income to gross interest bearing assets) was 3.12 per cent. Chart 7 Profitability Indicators (per cent) Source: the BNB.

17 16 Banks in Bulgaria January March 2018 At the end of March 2018 the total net operating income of the banking system was BGN 852 million, down BGN 23 million or 2.6 per cent from the first quarter of Chart 8 Net Operating Income Structure (per cent) Note: The sum total may not add up to 100 per cent due to rounding. Source: the BNB. Net interest income was BGN 646 million in the first quarter of Compared with the first quarter of 2017, the rate of decline in expenditure outpaced that in income. Net income from fees and commissions reached BGN 243 million. Administrative expenditure and depreciation rose 7.4 per cent and 0.7 per cent, respectively, on the first quarter of Regulatory Capital In the first quarter of 2018 equity, tier one capital and common equity tier one decreased to BGN 11.4 billion, 10.8 billion and 10.6 billion. As a result of increased total risk exposures of the banking system, the common equity tier one ratio, tier one capital and total capital adequacy ratios decreased to per cent, per cent and per cent, respectively.

18 17 (per cent) Chart 9 Selected Capital Indicators (per cent) State of the Banking System Source: the BNB. Chart 10 Common Equity Tier One Ratio: Dynamics of Numerator and Denominator for the Banking System (December 2014 = 100) Note: Numerator and denominator indices used. Source: the BNB.

19 18 Banks in Bulgaria January March 2018 By end-march 2018 the leverage ratio (when a fully phased-in definition of tier one capital is applied) was per cent. The total exposure to tier one capital was 9.6:1. At the end of the first quarter of 2018 the capital exceeding the regulatory minimum of 8 per cent was BGN 7.1 billion. 7 As of 31 March 2018 all credit institutions had sufficient common equity tier one to meet the capital buffer level. Chart 11 Equity: Minimum Requirement, Buffers and Excess above the Minimum Requirement and Buffers as of 31 March 2018 (BGN million) Note: For levels of the buffer for other systemically important institutions effective as of 1 January 2018, see the BNB press release of 1 December 2017: bg/pressoffice/popressreleases/poprdate/pr_ _en Source: the BNB. 7 The amount of capital exceeding the minimum regulatory requirement of 8 per cent also includes additional capital buffer requirements. For more information on capital buffers, see the BNB website: BSCapitalBuffers/index.htm

20 Liquidity In the January to March 2018 period total unadjusted Level 1 assets 8 decreased by BGN 590 million (2.3 per cent) and reached BGN 25.2 billion. Within the structure of assets, the share of assets in the central government increased, while the shares of other liquid assets experienced a decline. Net liquidity outflows (the liquidity coverage ratio nominator) increased by BGN 266 million, or 3.6 per cent, a result of growth in outflows (after applied outflow rates). The banking system liquidity buffer 9 (the liquidity coverage ratio nominator) was BGN 25.2 billion at the end of March. State of the Banking System Chart 12 Liquidity Buffer to Balance Sheet Assets Ratio (BGN million) (per cent) Source: the BNB. The dynamics of the liquidity buffer and net liquidity outflows was reflected in a lower liquidity coverage ratio. At the end of March 2018 the banking system liquidity coverage ratio was per cent (against per cent at the end of 2017). 8 For further information on the new liquidity reporting requirements, effective as from the beginning of 2018, see the quarterly Banks in Bulgaria, October December 2017: bnb_publication/pub_b_in_b_2017_12_en.pdf 9 Under Article 17 of Commission Delegated Regulation (EU) 2015/61, the requirements for the composition of the liquidity buffer by asset level, at any time shall be, as follows: a minimum of 60 per cent of the liquidity buffer is to be composed of level 1 assets; a minimum of 30 per cent of the liquidity buffer is to be composed of level 1 assets excluding extremely high quality covered bonds (referred to in Article 10), a maximum of 15 per cent of the liquidity buffer may be held in level 2B assets.

21 20 Banks in Bulgaria January March 2018 Chart 13 Liquidity Coverage Ratio (per cent) Source: the BNB. In the review quarter the banking system loans-to-deposits ratio (LTD ratio) 10 rose to 72.5 per cent, from 71.5 per cent on 31 December Banks credit portfolio growth added to this increase, while deposits (excluding those from credit institutions) remained almost unchanged. 10 The loans-to-deposits ratio uses data from the MPF1 reporting template with gross loan portfolio (excluding loans and advances to the central banks and credit institutions sectors) as a nominator and deposits (excluding those from credit institutions) as a denominator.

22 II. Methodological Notes From 1 January 2015, the BNB started publishing data on the balance sheet statement and statement of profit or loss in line with the reporting templates introduced by Commision Implementing Regulation (EU) No 680/2014 according to Regulation (EU) No 575/2013 of the European Parliament and of the Council. The European Banking Authority has developed Implementing Technical Standards subject to phased-in implementation under Implementing Regulation (EU) No 680/2014 and its amendments. Data on individual banks are based on both official reports introduced by Implementing Regulation (EU) No 680/2014 and additional reporting templates: the macroprudential reporting form MPF1. 2. Methodological references for completing relevant items in the balance sheet statement and statement of profit or loss along with an additional data template are available on the BNB website. 1 The template focuses the attention of data users on major principles of data preparation. 3. Data as of 2015 on the quality of loans and impairment were obtained using the standard reporting template 18 Information on performing and non-performing exposures of the financial reporting framework (FINREP). As a result of the harmonisation of concepts and definitions no match should be sought between the manner and scope of reporting of these items in the old and new reports (to the end of 2014 and from January 2015, respectively). 4. A bank passport includes basic information on the structure of shareholder capital and management bodies, which reflect the current state at the time of preparing the quarterly bulletin. Data on major items of the balance sheet statement and statement of profit or loss are based on relevant total lines. 5. The BNB may adjust already published data, where necessary. Revisions are made after receiving additional information, adjustments of errors in data provided by banks or as a consequence of changes and enhancement of methodological guidelines, imposing data revision from previous periods The BNB Banking Supervision Department groups banks in view of outlining the dynamics of processes in the banking system. This grouping does not entail any rating element and should not be interpreted as rating banks financial position. Assigning banks to groups is done based on the amount of their assets and is changed as of the end of each reporting period. The first group consists of the five largest banks, the second group comprises all the remaining banks, and the third group comprises the branches of foreign banks in Bulgaria. Methodological Notes 1 Methodological references for completing relevant items in the balance sheet statement and statement of profit or loss along with an additional data template are available on the BNB website. BS_201503_EN 2 Revisions are made pursuant to Implementing Regulation (ЕU) No 680/2014, Article 3, items 4 and 5.

23 22 Banks in Bulgaria January March 2018 Group I: Group II: Group III: UniCredit Bulbank DSK Bank United Bulgarian Bank First Investment Bank Eurobank Bulgaria Raiffeisenbank (Bulgaria) Société Générale Expressbank Central Cooperative Bank Piraeus Bank Bulgaria Allianz Bank Bulgaria Bulgarian Development Bank Investbank ProCredit Bank (Bulgaria) Municipal Bank International Asset Bank Bulgarian-American Credit Bank D Commerce Bank TBI Bank Tokuda Bank Texim Bank Victoria Commercial Bank BNP Paribas S.A. Sofia Branch ING Bank N.V. Sofia Branch Citibank Europe Bulgaria Branch T.C. Ziraat Bank Sofia Branch BNP Paribas Personal Finance S.A. Bulgaria Branch* * The new reporting unit has been included in the aggregated data of the banking system as of the end of May 2018.

24 III. Banking Supervision Regulation 23 CAPITAL ADEQUACY of the Banking System and Bank Groups as of 31 December 2017 Group I Group II Banking system 1. OWN FUNDS (CAPITAL BASE) Tier 1 capital Common equity tier 1 capital Additional tier 1 capital Tier 2 capital TOTAL RISK EXPOSURE AMOUNT Risk weighted exposure amounts for credit, counterparty credit and dilution risks and free deliveries risk exposure amount for settlement risk risk exposure amount for position, foreign exchange and commodity risks risk exposure amount for operational risk risk exposure amount for credit valuation adjustment COMMON EQUITY TIER 1 CAPITAL RATIO (%) TIER 1 CAPITAL RATIO (%) TOTAL CAPITAL ADEQUACY RATIO (%) Banking Supervision Regulation Note: The template for disclosure of information related to the capital adequacy of banks is based on the reporting templates included in the Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council. Source: the BNB.

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26 IV. Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups 25 Balance Sheet Statement (Statement of Financial Position) of the Banking System as of 31 March Statement of Profit or Loss of the Banking System as of 31 March Debt Securities, Loans and Advances, and Deposits of the Banking System as of 31 March Balance Sheet Statement (Statement of Financial Position) of Group I Banks as of 31 March Statement of Profit or Loss of Group I Banks as of 31 March Debt Securities, Loans and Advances, and Deposits of Group I Banks as of 31 March Balance Sheet Statement (Statement of Financial Position) of Group II Banks as of 31 March Statement of Profit or Loss of Group II Banks as of 31 March Debt Securities, Loans and Advances, and Deposits of Group II Banks as of 31 March Balance Sheet Statement (Statement of Financial Position) of Group III Banks as of 31 March Statement of Profit or Loss of Group III Banks as of 31 March Debt Securities, Loans and Advances, and Deposits of Group III Banks as of 31 March Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

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28 27 Balance Sheet Statement (Statement of Financial Position) of the BANKING SYSTEM as of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Cash on hand Cash balances at central banks Other demand deposits Financial assets held for trading Derivatives Equity instruments Debt securities Loans and advances Non-trading financial assets mandatorily at fair value through profit or loss Equity instruments Debt securities Loans and advances Financial assets designated at fair value through profit or loss Debt securities Loans and advances 0 Financial assets at fair value through other comprehensive income Equity instruments Debt securities Loans and advances 385 Financial assets at amortised cost Debt securities Loans and advances Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Property, plant and equipment Investment property Intangible assets Goodwill 0 Other intangible assets Tax assets Current tax assets Deferred tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups (continued)

29 28 Banks in Bulgaria January March 2018 (continued) Carrying amount LIABILITIES Financial liabilities held for trading Derivatives Short positions 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities designated at fair value through profit or loss 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities measured at amortised cost Deposits Debt securities issued Other financial liabilities Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Pensions and other post employment defined benefit obligations Other long-term employee benefits 325 Restructuring Pending legal issues and tax litigation Commitments and guarantees given Other provisions Tax liabilities Current tax liabilities Deferred tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES (continued)

30 29 (continued) Carrying amount EQUITY Capital Paid-up capital Unpaid capital which has been called up 0 Share premium Equity instruments issued other than capital 0 Equity component of compound financial instruments 0 Other equity instruments issued 0 Other equity 162 Accumulated other comprehensive income s that will not be reclassified to profit or loss Tangible assets Intangible assets 0 Actuarial gains or (-) losses on defined benefit pension plans Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Fair value changes of equity instruments measured at fair value through other comprehensive income Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item] 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument] 0 Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk 0 s that may be reclassified to profit or loss Hedge of net investments in foreign operations [effective portion] 0 Foreign currency translation 86 Hedging derivatives. Cash flow hedges [effective portion] Fair value changes of debt instruments measured at fair value through other comprehensive income Hedging instruments [not designated elements] 0 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Retained earnings Revaluation reserves Other reserves Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method 0 Other (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 Accumulated other comprehensive income 0 Other items 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

31 30 Banks in Bulgaria January March 2018 Statement of profit or loss of the BANKING SYSTEM as of 31 march 2018 income Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 665 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting, interest rate risk Other assets 367 income on liabilities ( expenses) (Financial liabilities held for trading) (Financial liabilities designated at fair value through profit or loss) 0 (Financial liabilities measured at amortised cost) (Derivatives hedge accounting, interest rate risk) (Other liabilities) 380 ( expenses on assets) (Expenses on share capital repayable on demand) 0 Dividend income 301 Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 24 Financial assets at fair value through other comprehensive income 277 Investments in subsidiaries, joint ventures and associates accounted for using other than equity method 0 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Financial assets at fair value through other comprehensive income Financial assets at amortised cost Financial liabilities measured at amortised cost -241 Other Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net -185 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net Gains or (-) losses from hedge accounting, net -666 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net Other operating income (Other operating expenses) TOTAL OPERATING INCOME, NET Value (continued)

32 31 (continued) (Administrative expenses) (Staff expenses) (Other administrative expenses) (Depreciation) (Property, plant and equipment) (Investment properties) (Other intangible assets) Modification gains or (-) losses, net Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost (Provisions or (-) reversal of provisions) (Commitments and guarantees given) (Other provisions) -325 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income ) -185 (Financial assets at amortised cost ) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 674 (Property, plant and equipment) -26 (Investment properties) 0 (Goodwill) 0 (Other intangible assets) 0 (Other) 700 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 895 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 Profit or (-) loss before tax from discontinued operations 0 (Tax expense or (-) income related to discontinued operations) 0 PROFIT OR (-) LOSS FOR THE YEAR Attributable to minority interest [non-controlling interests] 0 Attributable to owners of the parent Value Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

33 32 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits of the BANKING SYSTEM as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

34 33 Balance Sheet Statement (Statement of Financial Position) of Group I Banks As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Cash on hand Cash balances at central banks Other demand deposits Financial assets held for trading Derivatives Equity instruments Debt securities Loans and advances Non-trading financial assets mandatorily at fair value through profit or loss Equity instruments Debt securities Loans and advances Financial assets designated at fair value through profit or loss 0 Debt securities 0 Loans and advances 0 Financial assets at fair value through other comprehensive income Equity instruments Debt securities Loans and advances 0 Financial assets at amortised cost Debt securities Loans and advances Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Property, plant and equipment Investment property Intangible assets Goodwill 0 Other intangible assets Tax assets Current tax assets Deferred tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups (continued)

35 34 Banks in Bulgaria January March 2018 (continued) Carrying amount LIABILITIES Financial liabilities held for trading Derivatives Short positions 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities designated at fair value through profit or loss 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities measured at amortised cost Deposits Debt securities issued Other financial liabilities Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Pensions and other post employment defined benefit obligations Other long-term employee benefits 0 Restructuring Pending legal issues and tax litigation Commitments and guarantees given Other provisions Tax liabilities Current tax liabilities Deferred tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES (continued)

36 35 (continued) Carrying amount EQUITY Capital Paid-up capital Unpaid capital which has been called up 0 Share premium Equity instruments issued other than capital 0 Equity component of compound financial instruments 0 Other equity instruments issued 0 Other equity 0 Accumulated other comprehensive income s that will not be reclassified to profit or loss Tangible assets Intangible assets 0 Actuarial gains or (-) losses on defined benefit pension plans Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Fair value changes of equity instruments measured at fair value through other comprehensive income Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item] 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument] 0 Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk 0 s that may be reclassified to profit or loss Hedge of net investments in foreign operations [effective portion] 0 Foreign currency translation 0 Hedging derivatives. Cash flow hedges [effective portion] Fair value changes of debt instruments measured at fair value through other comprehensive income Hedging instruments [not designated elements] 0 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Retained earnings Revaluation reserves Other reserves Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method 0 Other (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 Accumulated other comprehensive income 0 Other items 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

37 36 Banks in Bulgaria January March 2018 Statement of profit or loss of GROUP I BANKs As of 31 march 2018 income Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting, interest rate risk Other assets 257 income on liabilities 888 ( expenses) (Financial liabilities held for trading) (Financial liabilities designated at fair value through profit or loss) 0 (Financial liabilities measured at amortised cost) (Derivatives hedge accounting, interest rate risk) (Other liabilities) 45 ( expenses on assets) (Expenses on share capital repayable on demand) 0 Dividend income 57 Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 21 Financial assets at fair value through other comprehensive income 36 Investments in subsidiaries, joint ventures and associates accounted for using other than equity method 0 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Financial assets at fair value through other comprehensive income Financial assets at amortised cost Financial liabilities measured at amortised cost 0 Other Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net -636 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net -666 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net Other operating income (Other operating expenses) TOTAL OPERATING INCOME, NET Value (continued)

38 37 (continued) (Administrative expenses) (Staff expenses) (Other administrative expenses) (Depreciation) (Property, plant and equipment) (Investment properties) (Other intangible assets) Modification gains or (-) losses, net Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost (Provisions or (-) reversal of provisions) (Commitments and guarantees given) (Other provisions) -436 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income ) -134 (Financial assets at amortised cost ) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 (Property, plant and equipment) 0 (Investment properties) 0 (Goodwill) 0 (Other intangible assets) 0 (Other) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations -2 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 Profit or (-) loss before tax from discontinued operations 0 (Tax expense or (-) income related to discontinued operations) 0 PROFIT OR (-) LOSS FOR THE YEAR Attributable to minority interest [non-controlling interests] 0 Attributable to owners of the parent Value Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

39 38 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits of GROUP I BANKs As of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

40 39 Balance Sheet Statement (Statement of Financial Position) of Group II Banks As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Cash on hand Cash balances at central banks Other demand deposits Financial assets held for trading Derivatives Equity instruments Debt securities Loans and advances 0 Non-trading financial assets mandatorily at fair value through profit or loss Equity instruments Debt securities 0 Loans and advances Financial assets designated at fair value through profit or loss Debt securities Loans and advances 0 Financial assets at fair value through other comprehensive income Equity instruments Debt securities Loans and advances 385 Financial assets at amortised cost Debt securities Loans and advances Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Property, plant and equipment Investment property Intangible assets Goodwill 0 Other intangible assets Tax assets Current tax assets Deferred tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups (continued)

41 40 Banks in Bulgaria January March 2018 (continued) Carrying amount LIABILITIES Financial liabilities held for trading Derivatives Short positions 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities designated at fair value through profit or loss 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities measured at amortised cost Deposits Debt securities issued Other financial liabilities Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Pensions and other post employment defined benefit obligations Other long-term employee benefits 325 Restructuring 0 Pending legal issues and tax litigation Commitments and guarantees given Other provisions Tax liabilities Current tax liabilities Deferred tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES (continued)

42 41 (continued) Carrying amount EQUITY Capital Paid-up capital Unpaid capital which has been called up 0 Share premium Equity instruments issued other than capital 0 Equity component of compound financial instruments 0 Other equity instruments issued 0 Other equity 0 Accumulated other comprehensive income s that will not be reclassified to profit or loss Tangible assets Intangible assets 0 Actuarial gains or (-) losses on defined benefit pension plans -661 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Fair value changes of equity instruments measured at fair value through other comprehensive income Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item] 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument] 0 Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk 0 s that may be reclassified to profit or loss Hedge of net investments in foreign operations [effective portion] 0 Foreign currency translation 86 Hedging derivatives. Cash flow hedges [effective portion] 0 Fair value changes of debt instruments measured at fair value through other comprehensive income Hedging instruments [not designated elements] 0 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Retained earnings Revaluation reserves Other reserves Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method 0 Other (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 Accumulated other comprehensive income 0 Other items 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

43 42 Banks in Bulgaria January March 2018 Statement of profit or loss of GROUP II BANKs As of 31 march 2018 income Financial assets held for trading 622 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 665 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting, interest rate risk 0 Other assets 110 income on liabilities 871 ( expenses) (Financial liabilities held for trading) 122 (Financial liabilities designated at fair value through profit or loss) 0 (Financial liabilities measured at amortised cost) (Derivatives hedge accounting, interest rate risk) 0 (Other liabilities) 335 ( expenses on assets) (Expenses on share capital repayable on demand) 0 Dividend income 244 Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 3 Financial assets at fair value through other comprehensive income 241 Investments in subsidiaries, joint ventures and associates accounted for using other than equity method 0 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -936 Financial assets at fair value through other comprehensive income -530 Financial assets at amortised cost -165 Financial liabilities measured at amortised cost -241 Other 0 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 451 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 521 Gains or (-) losses on derecognition of non-financial assets, net -126 Other operating income (Other operating expenses) TOTAL OPERATING INCOME, NET Value (continued)

44 43 (continued) (Administrative expenses) (Staff expenses) (Other administrative expenses) (Depreciation) (Property, plant and equipment) (Investment properties) 425 (Other intangible assets) Modification gains or (-) losses, net -80 Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost -80 (Provisions or (-) reversal of provisions) (Commitments and guarantees given) (Other provisions) 103 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Financial assets at fair value through other comprehensive income ) -63 (Financial assets at amortised cost ) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 674 (Property, plant and equipment) -26 (Investment properties) 0 (Goodwill) 0 (Other intangible assets) 0 (Other) 700 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 897 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 Profit or (-) loss before tax from discontinued operations 0 (Tax expense or (-) income related to discontinued operations) 0 PROFIT OR (-) LOSS FOR THE YEAR Attributable to minority interest [non-controlling interests] 0 Attributable to owners of the parent Value Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

45 44 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits of GROUP II BANKs As of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

46 45 Balance Sheet Statement (Statement of Financial Position) of Group III Banks As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Cash on hand Cash balances at central banks Other demand deposits Financial assets held for trading Derivatives Equity instruments 0 Debt securities Loans and advances 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Equity instruments 0 Debt securities 0 Loans and advances 0 Financial assets designated at fair value through profit or loss 0 Debt securities 0 Loans and advances 0 Financial assets at fair value through other comprehensive income Equity instruments 219 Debt securities Loans and advances 0 Financial assets at amortised cost Debt securities Loans and advances Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets Property, plant and equipment Investment property 0 Intangible assets Goodwill 0 Other intangible assets Tax assets Current tax assets 233 Deferred tax assets Other assets Non-current assets and disposal groups classified as held for sale 944 TOTAL ASSETS Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups (continued)

47 46 Banks in Bulgaria January March 2018 (continued) Carrying amount LIABILITIES Financial liabilities held for trading Derivatives Short positions 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities designated at fair value through profit or loss 0 Deposits 0 Debt securities issued 0 Other financial liabilities 0 Financial liabilities measured at amortised cost Deposits Debt securities issued 0 Other financial liabilities Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 855 Pensions and other post employment defined benefit obligations 294 Other long-term employee benefits 0 Restructuring 0 Pending legal issues and tax litigation 0 Commitments and guarantees given 360 Other provisions 201 Tax liabilities Current tax liabilities Deferred tax liabilities 6 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES (continued)

48 47 (continued) Carrying amount EQUITY Capital 0 Paid-up capital 0 Unpaid capital which has been called up 0 Share premium 0 Equity instruments issued other than capital 0 Equity component of compound financial instruments 0 Other equity instruments issued 0 Other equity 162 Accumulated other comprehensive income s that will not be reclassified to profit or loss 57 Tangible assets 0 Intangible assets 0 Actuarial gains or (-) losses on defined benefit pension plans 57 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Fair value changes of equity instruments measured at fair value through other comprehensive income 0 Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedged item] 0 Fair value changes of equity instruments measured at fair value through other comprehensive income [hedging instrument] 0 Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk 0 s that may be reclassified to profit or loss 979 Hedge of net investments in foreign operations [effective portion] 0 Foreign currency translation 0 Hedging derivatives. Cash flow hedges [effective portion] 0 Fair value changes of debt instruments measured at fair value through other comprehensive income 979 Hedging instruments [not designated elements] 0 Non-current assets and disposal groups classified as held for sale 0 Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates 0 Retained earnings Revaluation reserves 0 Other reserves Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method 0 Other (-) Treasury shares 0 Profit or loss attributable to owners of the parent -59 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 Accumulated other comprehensive income 0 Other items 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

49 48 Banks in Bulgaria January March 2018 Statement of profit or loss of GROUP III BANKs As of 31 march 2018 income Financial assets held for trading 289 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income 132 Financial assets at amortised cost Derivatives hedge accounting, interest rate risk 0 Other assets 0 income on liabilities 210 ( expenses) (Financial liabilities held for trading) 0 (Financial liabilities designated at fair value through profit or loss) 0 (Financial liabilities measured at amortised cost) (Derivatives hedge accounting, interest rate risk) 0 (Other liabilities) 0 ( expenses on assets) 957 (Expenses on share capital repayable on demand) 0 Dividend income 0 Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income 0 Investments in subsidiaries, joint ventures and associates accounted for using other than equity method 0 Fee and commission income (Fee and commission expenses) 702 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 431 Financial assets at fair value through other comprehensive income 431 Financial assets at amortised cost 0 Financial liabilities measured at amortised cost 0 Other 0 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income (Other operating expenses) 257 TOTAL OPERATING INCOME, NET Value (continued)

50 49 (continued) (Administrative expenses) (Staff expenses) (Other administrative expenses) (Depreciation) 316 (Property, plant and equipment) 188 (Investment properties) 0 (Other intangible assets) 128 Modification gains or (-) losses, net 0 Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost 0 (Provisions or (-) reversal of provisions) -411 (Commitments and guarantees given) -419 (Other provisions) 8 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -289 (Financial assets at fair value through other comprehensive income ) 12 (Financial assets at amortised cost ) -301 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 (Property, plant and equipment) 0 (Investment properties) 0 (Goodwill) 0 (Other intangible assets) 0 (Other) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS 62 (Tax expense or (-) income related to profit or loss from continuing operations) 121 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS -59 Profit or (-) loss after tax from discontinued operations 0 Profit or (-) loss before tax from discontinued operations 0 (Tax expense or (-) income related to discontinued operations) 0 PROFIT OR (-) LOSS FOR THE YEAR -59 Attributable to minority interest [non-controlling interests] 0 Attributable to owners of the parent -59 Value Balance Sheet Statements, Statements of Profit or Loss and Other Data on the Banking System and Bank Groups

51 50 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits of GROUP III BANKs As of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

52 V. Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data* 51 Allianz Bank Bulgaria BNP Paribas S.A. Sofia Branch BNP Paribas Personal Finance S.A. Bulgaria Branch Bulgarian-American Credit Bank Bulgarian Development Bank Central Cooperative Bank Citibank Europe, Bulgaria Branch D Commerce Bank DSK Bank Eurobank Bulgaria First Investment Bank ING Bank N.V., Sofia Branch International Asset Bank Investbank Municipal Bank PLC Piraeus Bank Bulgaria ProCredit Bank, Bulgaria Raiffeisenbank, Bulgaria Société Générale Expressbank TBI Bank T.C. Ziraat Bank, Sofia Branch Texim Bank Tokuda Bank UniCredit Bulbank United Bulgarian Bank Victoria Commercial Bank Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data * Banks are arranged in alphabetical order, not according to the bank identification code.

53

54 Allianz Bank Bulgaria 53 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets Intangible assets Tax assets 393 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

55 54 Allianz Bank Bulgaria Banks in Bulgaria January March 2018 Statement of profit or loss as of 31 march 2018 income ( expenses) 470 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 712 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -699 Gains or (-) losses on financial assets and liabilities held for trading, net 518 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -73 Gains or (-) losses on derecognition of non-financial assets, net 20 Other operating income 881 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 549 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -283 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 775 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value

56 Allianz Bank Bulgaria 55 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

57 56 Allianz Bank Bulgaria Banks in Bulgaria January March 2018 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 345 of 3 June 1997 of the BNB Governing Council. License updated by: Order No of 31 July 1998 of the BNB Governor and amended by Order No of 22 November 1999 and by Order No. RD of 20 June 2002 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 12 November 1997 of the Sofia City Court on Company file No of 1997, lot No , vol. 487, p. 202; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 13 May Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Auditors 79 Knyaginya Maria-Luiza Blvd., 1202 Sofia tel. 02/ ; 02/ Website: Dimitar Georgiev Zhelev Chairman Christoph Plein Raymond Seymour Rainer Franz Kai Mueller Walter Lippolis Rosen Stoyadinov Stanimirov Executive Director Kamelia Georgieva Gyuleva Marieta Vassileva Petrova Georgi Kostadinov Zamanov Chief Executive Director Christina Marinova Martsenkova Executive Director Ivaylo Stoyanov Stoyanov Alexander Protsenko Allianz Bulgaria Holding Ltd per cent KPMG Bulgaria OOD AFA OOD

58 BNP Paribas S.A. Sofia Branch 57 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income 52 Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets 179 Intangible assets 29 Tax assets 154 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 252 Tax liabilities 15 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital 0 Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 52 Retained earnings Revaluation reserves 0 Other reserves 0 (-) Treasury shares 0 Profit or loss attributable to owners of the parent -262 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

59 58 BNP Paribas S.A. Sofia Branch Banks in Bulgaria January March 2018 Statement of profit or loss as of 31 march 2018 income ( expenses) 784 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 139 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net -83 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 89 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 2 (Other operating expenses) 25 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 34 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -423 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -34 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS -212 (Tax expense or (-) income related to profit or loss from continuing operations) 50 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS -262 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR -262 Value

60 BNP Paribas S.A. Sofia Branch 59 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

61 60 BNP Paribas S.A. Sofia Branch Banks in Bulgaria January March 2018 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office By Order No. RD of 28 November 2006 of the BNB Governor, the BNP Paribas S.A., Paris, French Republic, was granted a permit to conduct bank transactions in Bulgaria through a branch in Sofia. Entered in the Commercial Register by Resolution No. 1 of the Sofia City Court of 4 December 2006, company file No of 2006, lot No , vol. 1504, reg. 10, p. 111; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 12 November Tsar Osvoboditel Blvd., 1000 Sofia tel. 02/ ; 02/ Website: Management of a foreign bank s branch Shareholders (shares over 10 per cent) Auditor The branch is managed and represented jointly by two of the following persons: the Governor and Deputy Governors or by two of the Deputy Governors respectively: Christophe Deroo Governor Ivaylo Lyubomirov Lyubomirov Deputy Governor Agnes Mezes Deputy Governor BNP Paribas S.A., Republic of France 100 per cent Deloitte Audit OOD

62 BNP Paribas Personal Finance S.A. Bulgaria Branch 61 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management of a foreign bank s branch Shareholders (shares over 10 per cent) Auditor BNP Paribas Personal Finance S.A. Bulgaria Branch is a branch of the BNP Paribas Personal Finance S.A., Republic of France, a member state of the EU, and therefore no license by the BNB is required The European branch is registered in the Commercial Register to the Registry Agency on 5 October 2017* Bl 14, Sofia Business Park, Mladost 4 District tel. 02/ Website: Jose Manuel Saloio Dimitar Todorov Dimitrov Nelly Pancheva Nedyalkova BNP Paribas Personal Finance S.A., Republic of France 100 per cent KPMG Bulgaria OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data * The new reporting unit has been included in aggregated data on the banking system as of the end of May 2018.

63 62 Bulgarian- AmericaN Credit Bank Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets 730 Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 10 Tax liabilities 151 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves 0 (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

64 Bulgarian- AmericaN Credit Bank 63 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 2 Fee and commission income (Fee and commission expenses) 119 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 5 Gains or (-) losses on financial assets and liabilities held for trading, net 592 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -50 Gains or (-) losses on derecognition of non-financial assets, net -147 Other operating income 149 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 303 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -10 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 455 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations -17 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 34 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

65 64 Bulgarian- AmericaN Credit Bank Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

66 Bulgarian- AmericaN Credit Bank 65 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 425 of 11 July 1996 of the BNB Governing Council in accordance with the requirements of the Law on Banks and Credit Activity. License updated by: Order No of 30 December 1998 of the BNB Governor to conduct transactions under Article 1, paragraphs 1 and 2 of the Law on Banks in Bulgaria and abroad; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 3 December 1996 of the Sofia City Court on company file No of 1996, lot No , vol. 397, p. 180; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 27 March 2008 Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) 2 Slavyanska Str., 1000 Sofia tel. 02/ ; 02/ Website: Tzvetelina Borislavova Karagyozova Chair Martin Boychev Ganev Serge Lioutyi Vassil Stefanov Simov Chairman and Executive Director Silvia Kirilova Kirilova Ilian Petrov Georgiev Chief Executive Officer Loreta Ivanova Grigorova Executive Director Alexander Dimitrov Dimitrov Executive Director CSIF AD per cent LTBI HOLDINGS LLC, the USA per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditors Ernst & Young Audit OOD AFA OOD

67 66 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets 248 Tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 554 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

68 67 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income 479 (Fee and commission expenses) 9 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -7 Gains or (-) losses on financial assets and liabilities held for trading, net 0 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 64 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 223 (Other operating expenses) 67 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 262 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -268 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 238 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 554 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

69 68 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

70 69 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Auditors Licensed by Order No of 25 February 1999 of the BNB Governor to conduct bank transactions in Bulgaria and abroad and to conduct transactions under Article 1, paragraphs 1 and 2 of the Law on Banks. License updated by: Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by Resolution No. 1 of the Sofia City Court of 11 March 1999 on company file No of 1999, lot No. 879, vol. 16, p. 38; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 29 April Dyakon Ignatii Str., 1000 Sofia tel. 02/ Websites: Lachezar Dimitrov Borisov Chairman Mitko Emilov Simeonov Deputy Chairman Velina Ilieva Burska Stoyan Todorov Mavrodiev Chairman and Chief Executive Director Rumen Dimitrov Mitrov Deputy Chairman and Executive Director Nikolai Dimitrov Dimitrov Executive Director Ministry of the Economy, Energy and Tourism, Repulic of Bulgaria 100 per cent Ernst & Young Audit OOD Zaharinova and Partners OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

71 70 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 327 Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 146 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

72 71 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 10 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -826 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 368 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -361 Gains or (-) losses on derecognition of non-financial assets, net 1 Other operating income 575 (Other operating expenses) 51 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -90 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 3 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

73 72 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

74 73 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Licensed by Protocol No. 14 of 25 February 1991 of the BNB to conduct bank transactions in Bulgaria. License updated by: Order No of 11 November 1998 of the BNB Governing Council to conduct bank transactions abroad; Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by resolution of 28 March 1991 of the Sofia City Court on company file No of 1991, lot No. 334, vol. 4, p. 11; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 18 July Tsarigradsko Shosse Blvd., 1086 Sofia tel. 02/ Website: Ivo Kamenov Georgiev Chairman Central Cooperative Union Marin Velikov Mitev Rayna Dimitrova Kouzmova Alexander Asenov Vodenicharov Chairman Tsvetan Tsankov Botev Deputy Chairman Georgi Dimitrov Konstantinov Executive Director Sava Marinov Stoynov Executive Director Georgi Kossev Kostov Executive Director Alexander Dimitrov Kerezov Biser Yordanov Slavkov Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Procurator Shareholders (shares over 10 per cent) Auditors Tihomir Angelov Atanasov CCB Group EAD per cent Deloitte Audit OOD Grant Thornton Ltd.

75 74 CITIBank Europe Bulgaria branch Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets Intangible assets 987 Tax assets 424 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 133 Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital 0 Share premium 0 Equity instruments issued other than capital 0 Other equity 162 Accumulated other comprehensive income 549 Retained earnings Revaluation reserves 0 Other reserves 0 (-) Treasury shares 0 Profit or loss attributable to owners of the parent 258 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

76 CITIBank Europe Bulgaria branch 75 Statement of profit or loss as of 31 march 2018 income 854 ( expenses) 666 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 381 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -1 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 655 (Other operating expenses) 212 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 148 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 12 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 24 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS 329 (Tax expense or (-) income related to profit or loss from continuing operations) 71 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS 258 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR 258 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

77 76 CITIBank Europe Bulgaria branch Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

78 CITIBank Europe Bulgaria branch 77 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the branch Management of a foreign bank s branch Shareholders (shares over 10 per cent) Auditor The Branch applies the EU principle of freedom of establishment in another Member State on the basis of the Single European Passport The European branch is entered in the Commercial Register to the Registry Agency on 17 December 2013, UIC ; the new European branch started operations on 1 January 2014: the effective date of the transfer of the Citibank Sofia branch undertaking 48 Sitnyakovo Blvd., Serdika offices, floor 10, 1505 Sofia tel. 02/ Website: Stanislava Petkova Taneva Governor Grigoriy Ananiev Ananiev Governor Borislava Stoyanova Jereva-Naymushina Governor Valentina Milosheva Rangelova Governor Svetoslav Stefanov Pintev Governor Citibank Europe Plc., Republic of Ireland 100 per cent KPMG Bulgaria OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

79 78 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets 813 Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 590 Tax liabilities 529 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 32 Retained earnings Revaluation reserves 876 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

80 79 Statement of profit or loss as of 31 march 2018 income ( expenses) 783 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 212 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 8 Gains or (-) losses on financial assets and liabilities held for trading, net 0 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 802 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 549 (Other operating expenses) 613 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 398 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -577 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 362 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

81 80 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

82 81 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Auditors Licensed by Resolution No of 12 March 1999 of the BNB Governor in accordance with the requirements of the Law on Banks. License updated by: Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by Resolution No. 1 of 15 April 1999 of the Sofia City Court on company file No of 1999, lot No , vol. 547, p. 178; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 29 May General Totleben Blvd., 1606 Sofia tel. 02/ Website: Bahattin Gürbüz Valery Borissov Borissov Fuat Güven Chairman Anna Ivanova Asparuhova Chair and Executive Director Martin Emilov Ganchev Executive Director Plamen Ivanov Dermendzhiev Valentina Dimitrova Borisova Zahary Dimitrov Alipiev Fuat Güven (Fuat Hyuseinov Osmanov) per cent FORTERA EAD, Republic of Bulgaria per cent AFA OOD Baker Tilly Klitou and Partners Ltd. Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

83 82 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

84 83 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 10 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 526 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net -537 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 162 Other operating income (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

85 84 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

86 85 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB State Savings Bank (SSB) was transformed into a commercial bank according to Ordinance No. 59 of 25 November 1998 of the Council of Ministers pursuant to the Law on Transformation of the SSB (Darjaven Vestnik, issue 48 of 28 April 1998). By Order No. RD of 26 September 2002 of the BNB Governor, DSK Bank was granted a permission to conduct bank transactions under Article 1, paragraphs 1 and 2 of the Law on Banks. License updated by: Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 26 January 1999 of the Sofia City Court on company file No. 756 of 1999, lot No. 875, vol. 16, reg. II, p. 22; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 8 April 2008 Address of the head office Management Supervisory Board Management Board 19 Moskovska Str., 1036 Sofia tel. 02/ Website: Laszlo Bencsik Chairman Laszlo Wolf Deputy Chairman Andras Takacs Gabor Kuncze Attila Kozsik Akos Ferenc Tisza-Papp Violina Marinova Spasova Chair and Chief Executive Director Diana Decheva Miteva Executive Director Dorothea Nikolaeva Nikolova Executive Director Yuriy Blagoev Genov Executive Director Margarita Dobreva Petrova-Karidi Executive Director Boyan Filipov Stefov Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors OTP Bank RT, Hungary 100 per cent Deloitte Audit OOD AFA OOD

87 86 Eurobank Bulgaria Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

88 Eurobank Bulgaria 87 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 6 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 6 Exchange differences [gain or (-) loss], net 188 Gains or (-) losses on derecognition of non-financial assets, net -1 Other operating income 926 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net (Provisions or (-) reversal of provisions) 557 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations -2 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

89 88 Eurobank Bulgaria Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

90 Eurobank Bulgaria 89 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Licensed by Resolution No. 21 of 14 March 1991 of the BNB Governing Council. License updated by: Resolution No. 15 of 15 April 1992 of the BNB Governing Council to conduct foreign currency activity in Bulgaria and abroad in accordance with the requirements of the Law on Banks and Credit Activity; Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the Law on Amendment to the Law on Credit Institutions Entered in the Commercial Register by resolution of the Sofia City Court on company file No of 1991, lot No. 414, vol. 4, p. 91; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 11 March Okolovrasten pat Str., 1766 Sofia tel. 02/ Website: Georgios Provopulos Chairman Theodoros Karakasis Deputy Chairman Michalakis Louis Christina Theofilidi Anastasios Nikolaou Stavros Ioannu Petia Nikolova Dimitrova Chair and Chief Executive Director Dimitar Borisov Shumarov Executive Director Asen Vasilev Yagodin Executive Director Ioannis Serafeimidis Executive Director Iordan Marinov Souvandjiev Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Procurator Shareholders (shares over 10 per cent) Auditors Milena Ivaylova Vaneva Eurobank Ergasias S.A., Greece per cent ERB New Europe Holding B.V., Kingdom of the Netherlands per cent Pricewaterhouse Coopers Audit OOD Moore Stephens Bulgaria Audit OOD

91 90 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 836 Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

92 91 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 10 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities held for trading, net -86 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 156 Other operating income (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

93 92 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

94 93 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Licensed by Resolution No. 278 of 1 October 1993 of the BNB Governing Council to conduct bank transactions in Bulgaria in accordance with the requirements of the Law on Banks and Credit Activity. License amended by Resolution No. 273 of 14 September 1995 of the BNB Governing Council to conduct bank transactions abroad. License updated by: Order No of 18 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by resolution of the Sofia City Court on company file No of 1993, lot No , vol. 163, p. 106; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 21 April Dragan Tsankov Blvd., 1797 Sofia tel. 02/ Website: Evgeni Krustev Lukanov Chairman Maya Lyubenova Georgieva Deputy Chair Georgi Dimitrov Mutafchiev Radka Veselinova Mineva Jordan Velichkov Skortchev Jyrki Ilmari Koskelo Nedelcho Vassilev Nedelchev Chairman and Chief Executive Director Sevdalina Ivanova Vassileva Executive Director Chavdar Gerorgiev Zlatev Executive Director Svetozar Alexandow Popov Executive Director Zhivko Ivanov Todorov Nadya Vassileva Koshinska Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors Tzeko Todorov Minev 42.5 per cent Ivaylo Dimitrov Mutafchiev 42.5 per cent BDO Bulgaria OOD Mazars OOD

95 94 ING Bank N.V., Sofia Branch Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 730 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets 338 Intangible assets 283 Tax assets 971 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 349 Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital 0 Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 430 Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent -618 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

96 ING Bank N.V., Sofia Branch 95 Statement of profit or loss as of 31 march 2018 income ( expenses) 567 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income 879 (Fee and commission expenses) 147 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 432 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 672 (Other operating expenses) 0 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 65 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 29 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS -618 (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS -618 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR -618 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

97 96 ING Bank N.V., Sofia Branch Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

98 ING Bank N.V., Sofia Branch 97 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the branch Management of a foreign bank s branch Shareholders (shares over 10 per cent) Auditor Licensed by Resolution No. 134 of 14 April 1994 of the BNB Governing Council in accordance with the requirements of the Law on Banks and Credit Activity. License amended by Resolution No. 199 of 16 June 1994 of the BNB Governing Council. License updated by Order No of 22 December 1999 of the BNB Governor in accordance with the requirements of the Law on Banks. After the accession of the Republic of Bulgaria to the EU branches of banks from Member States licensed by the BNB prior the entry into force of the Law on Credit Institutions shall continue to perform their activities by virtue of the mutual recognition of the single European passport. Entered in the Commercial Register by resolution of 26 July 1994 of the Sofia City Court on company file No of 1994; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 18 June B, Bulgaria Blvd., entr. A, seventh floor, 1404 Sofia tel. 02/ Website: Grzegorz Marek Konieczny Chief Executive Director Vladimir Boyanov Tchimov Executive Director Miroslava Mihailova Strashilova Executive Director Tsvetomir Stefanov Uzunov Executive Director ING Bank N.V., Kingdom of the Netherlands 100 per cent Ernst & Young Audit OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

99 98 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 500 Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 588 Other assets Non-current assets and disposal groups classified as held for sale 901 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 41 Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 0 Retained earnings Revaluation reserves 0 Other reserves 0 (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

100 99 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 375 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net -281 Gains or (-) losses on financial assets and liabilities held for trading, net 682 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -29 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 467 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 434 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 1 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 103 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

101 100 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

102 101 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Licensed by Protocol No. 42 of 25 October 1989 of the BNB Governing Council. By Protocol No. 93 of 20 December 1990 of the BNB was permited to conduct transactions in Bulgaria. License updated by: Resolution No. 59 of 18 February 1993 of the BNB Governing Council to conduct bank transactions abroad; Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by resolution of 6 May 1991 of the Sofia City Court on company file No of 1991, lot No. 53, vol. 1, p. 140; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 9 June Todor Alexandrov Blvd., 1303 Sofia tel. 02/ ; 02/ Website: Ivan Minkov Dragnevski Chairman Georgi Stoinev Harizanov Deputy Chairman Georgi Borislavov Georgiev Victor Georgiev Vulkov Rumyana Lyubenova Gotseva-Yordanova Aleksey Asenov Tsvetanov Chairman and Chief Executive Director Rumen Georgiev Sirakov Deputy Chairman and Executive Director Maria Andreeva Guneva Dynatrade International OOD 33 per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditors BDO Bulgaria OOD Audit Correct Ltd.

103 102 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets Intangible assets Tax assets 299 Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES 0 Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

104 103 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 3 Fee and commission income (Fee and commission expenses) 621 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 351 Gains or (-) losses on financial assets and liabilities held for trading, net 0 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net -71 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 688 Gains or (-) losses on derecognition of non-financial assets, net -1 Other operating income 543 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 512 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 652 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 510 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

105 104 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

106 105 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 364 of 1 December 1994 of the BNB Governing Council to conduct bank transactions in Bulgaria and abroad under Article 9, para. 1 of the Law on Banks and Credit Activity. License updated by: Order No of 27 December 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 16 December 1994 of the Sofia City Court on company file No of 1994, lot No , vol. 261, reg. 1, p. 130; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 26 May 2008 Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) 85 Bulgaria Blvd., 1404 Sofia tel. 02/ Website: Petia Ivanova Barakova-Slavova Chair Festa Holding AD Dimitriyka Lazarova Andreeva Plamen Yordanov Milkov Chairman and Executive Director Vesela Ivanova Koleva-Dzhidzheva Executive Director Zdravka Rumenova Ruseva Executive Director Krasimira Ivanova Todorova Executive Director Petia Ivanova Barakova-Slavova per cent ADIL SAID AHMED AL SHANFARI, Sultanate of Oman per cent Festa Holding per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditors BDO Bulgaria OOD Audit Correct OOD

107 106 MUNICIPAL BANK PLC Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 40 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 764 Tax liabilities 791 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings 32 Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent -823 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

108 MUNICIPAL BANK PLC 107 Statement of profit or loss as of 31 march 2018 income ( expenses) 703 (Expenses on share capital repayable on demand) 0 Dividend income 3 Fee and commission income (Fee and commission expenses) 279 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net 273 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -111 Gains or (-) losses on derecognition of non-financial assets, net 2 Other operating income 235 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 699 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -12 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -643 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS -823 (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS -823 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR -823 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

109 108 MUNICIPAL BANK PLC Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions 81 Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

110 MUNICIPAL BANK PLC 109 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Licensed by Resolution No. 121 of 4 March 1996 of the BNB Governing Council to conduct bank transactions in Bulgaria in accordance with the requirements of the Law on Banks and Credit Activity. License amended by Resolution No. 499 of 22 July 1996 of the BNB Governing Council and Resolution No. 249 of 11 April 1997 of the BNB Governing Council to conduct bank transactions abroad. License updated by: Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions Entered in the Commercial Register by Resolution No. 1 of 4 April 1996 of the Sofia City Court on company file No of 1996, lot No. 737, vol. 13, reg. II, p. 138; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 6 October Vrabcha Str., 1000 Sofia tel. 02/ Website: Stefan Lazarov Nenov Chairman Zdravko Borisov Gargarov Deputy Chairman Spas Simeonov Dimitrov Angel Kirilov Guekov Chairman and Executive Director Borislav Yavorov Chilikov Executive Director Vladimir Georgiev Kotlarski Deputy Chairman Todor Nikolov Vanev NOVITO OPPORTUNITIES FUND AGMVK, Principality of Liechtenstein per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditors Grant Thornton OOD PCM BG EOOD

111 110 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 210 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 553 Tangible assets Intangible assets Tax assets 414 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 88 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

112 111 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 3 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 301 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -98 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 193 (Other operating expenses) 259 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 17 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 135 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

113 112 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

114 113 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 399 of 29 December 1993 of the BNB Governing Council under the Law on Banks and Credit Activity. License updated by: Resolution No. 63 of 2 March 1994 of the BNB Governing Council to conduct bank transactions in Bulgaria under the Law on Banks and Credit Activity; Order No of 18 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment of the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 8 March 1994 of the Sofia City Court on company file No of 1993, lot No , vol. 194, p. 174; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 23 April 2008 Address of the head office Management Board of Directors Shareholders (shares over 10 per cent) Auditors 115 E Tsarigradsko Shose Blvd., 1784 Sofia tel. 02/ Website: Ioannis Kyriakopoulos Chairman and Chief Executive Director Emil Angelov Angelov Deputy Chairman and Chief Executive Director Lyubomir Ignatov Punchev Executive Director Alkiviadis Alexandrou Minko Hristov Gerdjikov Piraeus Bank S.A., Greece per cent Deloitte Audit OOD Baker Tilly Klitou and Partners Ltd. Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

115 114 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 419 Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 132 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 904 Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

116 115 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 504 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 140 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income (Other operating expenses) 183 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -124 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 258 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 567 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

117 116 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

118 117 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Order No. RD of 25 September 2001 of the BNB Governor to conduct bank transactions under the Law on Banks. License updated by: Order No. RD of 20 July 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Legal registration Entered in the Commercial Register by Resolution No. 1 of 28 September 2001 of the Sofia City Court on company file No of 2001, lot No , vol. 733, p. 116; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 18 April 2008 Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Auditors 26 Todor Alexandrov Blvd., 1303 Sofia tel. 02/ ; 02/ Website: Petar Slavchev Slavov Chairman Christoph Andreas Freytag Borislav Nikolov Kostadinov Claus-Peter Zeitinger Christian Krämer Rumyana Velichkova Todorova Executive Director Reni Ivanova Peycheva Executive Director Ivan Dachev Dachev Executive Director PROCREDIT HOLDING AG & CO.KGAA, Federal Republic of Germany 100 per cent Pricewaterhouse Coopers Audit OOD Baker Tilly Klitou and Partners OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

119 118 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 173 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

120 119 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 2 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 1 Gains or (-) losses on financial assets and liabilities held for trading, net 731 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net -19 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 142 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 421 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -412 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

121 120 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

122 121 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 198 of 16 June 1994 of the BNB Governing Council to conduct bank transactions in Bulgaria and abroad under Article 9, para. 1 of the Law on Banks and Credit Activity. License updated by: Order No of 18 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment of the Law on Credit Institutions Legal registration Entered in the Commercial Register by Resolution No. 1 of 1 August 1994 of the Sofia City Court on company file No of 1994, lot No , vol. 230, p. 38; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 11 March 2008 Address of the head office Management Supervisory Board Management Board 55 Nikola Vaptsarov Blvd., 1407 Sofia tel. 02/ Website: Helmut Breit Chairman Martin Gruell Kurt Bruckner Gerda Lottersberger-Roschitz Robert Wagenleitner Fabian Stenzel Monika Ruch Oliver Roegl Chairman and Chief Executive Director Dobromir Slavov Dobrev Deputy Chairman and Executive Director Ani Vasileva Angelova Executive Director Martin Josef Pytlik Executive Director Nedialko Velikov Mihailov Executive Director Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Procurator Shareholders (shares over 10 per cent) Auditors Mihail Tanev Petkov Raiffeisen Bank International AG (Raiffeisen SEE Region Holding GmbH), Republic of Austria 100 per cent Ernst & Young Audit OOD AFA OOD

123 122 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 517 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

124 123 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 0 Gains or (-) losses on derecognition of non-financial assets, net 38 Other operating income 613 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) -714 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) -26 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 924 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

125 124 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

126 125 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Licensed by Resolution No. 176 of 3 June 1993 of the BNB Governing Council to conduct bank transactions in Bulgaria and abroad under Article 17, para. 2, item 4 of the Law on Banks and Credit Activity. License updated by: Order No of 17 November 1999 in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions Entered in the Register of Commercial Companies by Resolution No of 24 June 1993 of the Varna Regional Court on company file No of 1993, lot No. 33, vol. 30, p. 125; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 11 April Vladislav Varnenchik Blvd., 9000 Varna tel. 052/ Website: Martin Mihailov Zaimov Chairman Didier Colin Giovanni Luca Soma Ingrid Bocris Marie Sophie Le Picard Arnaud Rene Julien Leclair Chairman and Chief Executive Director Willy-Pierre Abbal Executive Director Elenka Petrova Bakalova Executive Director Zdenek Metelak Executive Director Martina Angelova Macheva Executive Director Eric Hauschild Executive Director Zhivka Stoyanova Sarachinova Procurator Daniela Dimitrova Hristova Procurator Slaveyko Lyubomirov Slaveykov Procurator Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors Société Générale S.A., Republic of France per cent Ernst & Young Audit OOD Deloitte Audit OOD

127 126 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 23 Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 217 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 0 Tax liabilities Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 60 Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

128 127 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income (Fee and commission expenses) 702 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 132 Gains or (-) losses on financial assets and liabilities held for trading, net -378 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 156 Gains or (-) losses on derecognition of non-financial assets, net -45 Other operating income 69 (Other operating expenses) 79 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 473 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) -2 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 576 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

129 128 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

130 129 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Order No. RD of 13 August 2003 of the BNB Governor to conduct bank transactions in Bulgaria and abroad. License updated by: Order No. RD of 20 July 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions Order No. RD of 3 August 2011 of the BNB Deputy Governor heading the Banking Supervision Department permitting NLB Banka Sofia to change its name to TBI Bank. Legal registration Entered in the Commercial Register by Resolution No. 1 of 28 August 2003 of the Sofia City Court on company file No of 2003, lot No , vol. 927, reg. I, p. 158; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 17 March 2008 Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) Dimitar Hadzikotsev Str., 1421 Sofia tel. 02/ Website: Ariel Shalom Hasson Chairman Kieran Donnelly Nicholas Philpott Gauthier Van Weddingen Nikolai Georgiev Spasov Executive Director Florentina-Virginia Tudor Mircea Executive Director Valentin Angelov Galabov Executive Director Alexander Chavdarov Dimitrov Executive Director Gergana Staikova Staikova TBIF Financial Services B.V., Kingdom of the Netherlands 100 per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditor Ernst & Young Audit EOOD AFA OOD

131 130 T.C. Ziraat Bank, Sofia Branch Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income 0 Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets 413 Intangible assets 276 Tax assets 47 Other assets 159 Non-current assets and disposal groups classified as held for sale 944 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 121 Tax liabilities 42 Share capital repayable on demand 0 Other liabilities 369 Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital 0 Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income 5 Retained earnings 0 Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent 563 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

132 T.C. Ziraat Bank, Sofia Branch 131 Statement of profit or loss as of 31 march 2018 income 475 ( expenses) 37 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income 381 (Fee and commission expenses) 35 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net 122 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net 0 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 15 (Other operating expenses) 20 TOTAL OPERATING INCOME, NET 901 (Administrative expenses) 577 (Depreciation) 69 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -308 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS 563 (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS 563 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR 563 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

133 132 T.C. Ziraat Bank, Sofia Branch Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

134 T.C. Ziraat Bank, Sofia Branch 133 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the branch Management of a foreign bank s branch Shareholders (shares over 10 per cent) Auditors By Order No of 26 June 1998 of the BNB Governor T.C. Ziraat Bank with main office Ancara, Republic of Turkey, was granted a permit to conduct bank activity in Bulgaria through a branch in Sofia. License updated by: Order No. RD of 25 October 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. By Order No. RD of 14 June 2010 of the BNB Deputy Governor heading the Banking Supervision Department the Bank is allowed to provide payment services within the meaning of the Law on Payment Services and Payment Systems Entered in the Commercial Register by Resolution No. 1 of 3 July 1998 of the Sofia City Court on company file No of 1998, lot No. 863, vol. 15, p. 173; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 10 May Tsar Samuil Str., 1301 Sofia tel. 02/ Website: Fazilet Çavdar President Milka Ivanova Kosturska Vice President Serkan Atasoy Vice President T.C. Ziraat Bankasi A.Ş., Republic of Turkey 100 per cent Grant Thornton OOD HLB Bulgaria OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

135 134 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 451 Tangible assets Intangible assets Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale 586 TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 341 Tax liabilities 89 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings -488 Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent 536 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

136 135 Statement of profit or loss as of 31 march 2018 income ( expenses) 155 (Expenses on share capital repayable on demand) 0 Dividend income 220 Fee and commission income (Fee and commission expenses) 143 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 58 Gains or (-) losses on financial assets and liabilities held for trading, net 522 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -6 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 90 (Other operating expenses) 21 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 286 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 1 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) -77 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS 536 (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS 536 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR 536 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

137 136 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

138 137 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Licensed by Resolution No. 243 of 4 March 1992 of the BNB Governing Council to conduct bank transactions in Bulgaria under the Law on Banks and Credit Activity. License amended by Resolution No. 277 of 1 October 1993 of the BNB Governing Council to conduct bank transactions abroad. License confirmed by Resolution No. 248 of 11 April 1997 of the BNB Governing Council. License updated by: Order No of 23 December 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions Entered in the Commercial Register by resolution of the Sofia City Court on Company file No of 1992, lot No. 4542, vol. 89, p. 180; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 28 May Todor Alexandrov Blvd., 1309 Sofia tel. 02/ ; 02/ ; 02/ Website: Apostol Lachezarov Apostolov Chairman Milen Georgiev Markov Deputy Chairman Ivelina Kancheva Kancheva-Shaban Veselin Raychev Morov Petar Georgiev Hristov Iglika Dimitrova Logofetova Chair Ivaylo Lazarov Donchev Deputy Chairman and Executive Director Maria Petrova Vidolova Executive Director Temelko Valentinov Stoychev Executive Director Dimitar Iliev Zhilev Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors Web Finance Holding AD per cent Grant Thornton OOD PCM BG OOD

139 138 Tokuda Bank Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss 0 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 25 Tangible assets Intangible assets 705 Tax assets 0 Other assets Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 693 Tax liabilities 108 Share capital repayable on demand 0 Other liabilities 930 Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves -795 Other reserves 813 (-) Treasury shares 0 Profit or loss attributable to owners of the parent -23 (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

140 Tokuda Bank 139 Statement of profit or loss as of 31 march 2018 income ( expenses) 551 (Expenses on share capital repayable on demand) 0 Dividend income 0 Fee and commission income 789 (Fee and commission expenses) 84 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net 26 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -1 Gains or (-) losses on derecognition of non-financial assets, net 0 Other operating income 154 (Other operating expenses) 4 TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) 170 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 80 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS -23 (Tax expense or (-) income related to profit or loss from continuing operations) 0 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS -23 Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR -23 Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

141 140 Tokuda Bank Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

142 Tokuda Bank 141 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Licensed by Resolution No. 365 of 1 December 1994 of the BNB Governing Council to conduct bank transactions in Bulgaria under Article 9, para. 1 of the Law on Banks and Credit Activity. License updated by: Order No of 23 December 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 30 January 2003 of the BNB Governor to conduct bank transactions abroad; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment of the Law on Credit Institutions Legal registration Entered in the Commercial Register by Resolution No. 748 of 29 January 2002 of the Plovdiv Regional Court on company file No of 2001, lot No. 31, vol. 23, p. 122; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 26 March 2008 Address of the head office Management Supervisory Board Management Board Shareholders (shares over 10 per cent) 21, George Washington Str., 1000 Sofia tel. 02/ ; 02/ Website: Arthur Stern Dimitar Stoyanov Vuchev Thomas Michael Higgins Maria Svetoslavova Sheitanova Executive Director Anna Petrova Tsankova-Boneva Executive Director Todorina Alexandrova Doctorova International Hospital Services Co., Tokushukai Incorporated, Japan per cent Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Auditors Deloitte Audit OOD ABVP-Audit Standard OOD

143 142 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale 0 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves Other reserves 0 (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

144 143 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 11 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net -128 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net Other operating income 543 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

145 144 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

146 145 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Supervisory Board Management Board Established by Decree No. 7 of 20 February 1964 of the Council of Ministers to conduct foreign exchange and credit transactions in Bulgaria and abroad. Licensed by Resolution No. 13 of 25 February 1991 of the BNB Governing Council. License updated by: Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered under No. 17 of 21 February 1964 of the Sofia Regional Court on company file No. 9 of 1964 and in the Commercial Register under No. 503, vol. 5, p. 99 on company file No of 1990 of the Sofia City Court, re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 18 February Sveta Nedelya Sq., 1000 Sofia tel. 02/ Website: Robert Zadrazil Chairman Alberto Devoto Deputy Chairman Heinz Meidlinger Dimitar Georgiev Zhelev Silvano Silvestri Luca Rubaga Ivan Vlaho Levon Karekin Hampartzoumian Chairman and Chief Executive Director Enrico Minniti Executive Director Tsvetanka Georgieva Mintcheva Jasna Mandac Antoaneta Kurteanu Teodora Alexandrova Petkova Giacomo Volpi Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors UNICREDIT S.P.A., Republic of Italy per cent Deloitte Audit OOD Baker Tilly Klitou and Partners OOD

147 146 Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading Non-trading financial assets mandatorily at fair value through profit or loss Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates Tangible assets Intangible assets Tax assets Other assets Non-current assets and disposal groups classified as held for sale 156 TOTAL ASSETS LIABILITIES Financial liabilities held for trading Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions Tax liabilities 0 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

148 147 Statement of profit or loss as of 31 march 2018 income ( expenses) (Expenses on share capital repayable on demand) 0 Dividend income 20 Fee and commission income (Fee and commission expenses) Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net Gains or (-) losses on financial assets and liabilities held for trading, net Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net -7 Exchange differences [gain or (-) loss], net Gains or (-) losses on derecognition of non-financial assets, net 324 Other operating income 638 (Other operating expenses) TOTAL OPERATING INCOME, NET (Administrative expenses) (Depreciation) Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 0 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

149 148 Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

150 149 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management* Supervisory Board Management Board Procurator Licensed by resolution of 25 February 1991 of the BNB Governing Council. License updated by: Resolution No. 340 of the BNB Central Management to conduct bank transactions in Bulgaria and abroad; Order No of 17 November 1999 of the BNB Governor in accordance with the requirements of the Law on Banks; Order No. RD of 20 July 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions Entered in the Commercial Register by Resolution No. 376 of 1992 of the Sofia City Court on company file No of 1992, lot No. 376, vol. 8, p. 105; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 22 May B Vitosha Blvd., 1463 Sofia tel. 02/ Website: Luc Popelier Chairman Christine Van Rijsseghem Willem Hueting Peter Grozdev Andronov Chairman and Chief Executive Director Theodor Valentinov Marinov Executive Director Frank Jansen Executive Director Christof De Mil Executive Director Svetla Atanasova Georgieva Executive Director Ivailo Stanev Mateev Executive Director Hristina Atanasova Filipova Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data Shareholders (shares over 10 per cent) Auditors KBC BANK N.V., Kingdom of Belgium per cent Pricewaterhouse Coopers Audit OOD Grant Thornton OOD * The one-tier board system was deleted on 21 June 2017.

151 150 Victoria Commercial Bank Banks in Bulgaria January March 2018 Balance Sheet Statement (Statement of Financial Position) As of 31 march 2018 Carrying amount ASSETS Cash, cash balances at central banks and other demand deposits Financial assets held for trading 0 Non-trading financial assets mandatorily at fair value through profit or loss 201 Financial assets designated at fair value through profit or loss 0 Financial assets at fair value through other comprehensive income Financial assets at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Investments in subsidiaries, joint ventures and associates 0 Tangible assets Intangible assets Tax assets 33 Other assets 733 Non-current assets and disposal groups classified as held for sale TOTAL ASSETS LIABILITIES Financial liabilities held for trading 0 Financial liabilities designated at fair value through profit or loss 0 Financial liabilities measured at amortised cost Derivatives hedge accounting 0 Fair value changes of the hedged items in portfolio hedge of interest rate risk 0 Provisions 99 Tax liabilities 7 Share capital repayable on demand 0 Other liabilities Liabilities included in disposal groups classified as held for sale 0 TOTAL LIABILITIES EQUITY Capital Share premium 0 Equity instruments issued other than capital 0 Other equity 0 Accumulated other comprehensive income Retained earnings 50 Revaluation reserves 0 Other reserves (-) Treasury shares 0 Profit or loss attributable to owners of the parent (-) Interim dividends 0 Minority interests [non-controlling interests] 0 TOTAL EQUITY TOTAL EQUITY AND TOTAL LIABILITIES

152 Victoria Commercial Bank 151 Statement of profit or loss as of 31 march 2018 income 452 ( expenses) 245 (Expenses on share capital repayable on demand) 0 Dividend income 1 Fee and commission income 57 (Fee and commission expenses) 6 Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities held for trading, net 0 Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net 0 Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net 0 Gains or (-) losses from hedge accounting, net 0 Exchange differences [gain or (-) loss], net -20 Gains or (-) losses on derecognition of non-financial assets, net 6 Other operating income 75 (Other operating expenses) 194 TOTAL OPERATING INCOME, NET 126 (Administrative expenses) (Depreciation) 180 Modification gains or (-) losses, net 0 (Provisions or (-) reversal of provisions) 0 (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss) 695 (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates) 0 (Impairment or (-) reversal of impairment on non-financial assets) 0 Negative goodwill recognised in profit or loss 0 Share of the profit or (-) loss of investments in subsidaries, joint ventures and associates accounted for using the equity method 0 Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 163 PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS (Tax expense or (-) income related to profit or loss from continuing operations) 1 PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS Profit or (-) loss after tax from discontinued operations 0 PROFIT OR (-) LOSS FOR THE YEAR Value Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data

153 152 Victoria Commercial Bank Banks in Bulgaria January March 2018 Debt securities, loans and advances, and deposits as of 31 march 2018 income Debt securities Central banks General governments Credit institutions Other financial corporations Non-financial corporations income Loans and advances Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households o.w. Residential mortgage loans o.w. Credit for consumption expenses Deposits Central banks General governments Credit institutions Other financial corporations Non-financial corporations Households

154 Victoria Commercial Bank 153 STATUS, MANAGEMENT AND MAJOR SHAREHOLDERS License granted by the BNB Legal registration Address of the head office Management Board of Directors Shareholders (shares over 10 per cent) Auditors Licensed by Resolution No. 337 of 2 November 1994 of the BNB Governing Council to conduct bank transactions in Bulgaria under the Law on Banks and Credit Activity. License updated by: Resolution No. 86 of 30 January 1997 of the BNB Governing Council and Order No of 8 September 1997 of the BNB Governing Council in accordance with the requirements of the Law on Banks; Order No. RD of 7 May 2007 of the BNB Governor in accordance with the requirements of the Law on Credit Institutions; Order No. RD of 16 November 2009 of the BNB Governor in accordance with the requirements of the Law on Amendment to the Law on Credit Institutions. Entered in the Commercial Register by resolution of the Sofia City Court on company file No of 1994, lot No , vol. 253, p. 168; re-entered in the Commercial Register to the Registry Agency, UIC , certificate No of 4 August Lajos Kossuth Str., 1606 Sofia tel. 02/ Website: Krasimir Georgiev Zhilov Chairman and Chief Executive Director Galya Dimitrova Dimitrova Executive Director Evgenia Dimitrova Stoyanova Boyka Markova Vasileva Stefka Tinkova Zagorova Corporate Commercial Bank AD (in bankruptcy), Republic of Bulgaria 100 per cent Ernst & Young Audit OOD Zaharinova and Partners OOD Balance Sheet Statements, Statements of Profit or Loss and Other Individual Bank Data * Currently, a change in the ownership of the bank is under registration in the relevant registers and Investbank AD will own 100 per cent of the bank s capital.

155

156 ISSN Elements of the 10 lev banknote, issues 1999 and 2008, are used in cover design.