Half-Yearly Report 2017 UniCredit Bank Czech Republic and Slovakia, a.s.

Half-Yearly Report 2017 UniCredit Bank Czech Republic and Slovakia, a.s. Issued on 30 September 2017 UniCredit Bank Czech Republic and Slovakia, a.s. Želetavská 1525/1 140 92 Prague 4

UniCredit Bank Czech Republic and Slovakia, a.s., Reg. No. (IČ) 64948242, having its registered office at Želetavská 1525/1, Prague 4, as an issuer of listed securities publishes the present Half-Yearly Report, for the public, which is compiled pursuant to Article 19 of Act No. 256/2004 Coll. on Capital Market Undertakings, as amended. The Half-Yearly Report has not been audited by an auditor. Table of contents: 1. Commentary on Bank s Financial Results 2. Expected Development 3. Interim Consolidated Financial Statements according to the IFRS 4. Statement Made by Authorised Person 2

1. Commentary on Bank s Financial Results The profit or loss from operations of the UniCredit Bank Czech Republic and Slovakia Group after tax increased year-on-year by 22.4% compared to the previous year's half-year results, from 3 463 million CZK as at 30 June 2016 to 4 237 million CZK as at 30 June 2017. Statement of complete results Net interest income grew in comparison with the first half-year 2016 by 6.4% to 5 405 mil. CZK (5 078 mil. CZK as at 30 June 2016). The Group was able to repeat a similar level of net interest income in a persistent low interest rate environment and competition fight in the banking market, mainly due to customer base growth and increased volume of business in both markets where the Group operates. Net revenues and commission income amounted to 1 917 million CZK (as at 30 June 2016: 1 919 mil. CZK), which represents a 0.1% decline. Net profit from the sale of financial assets and liabilities dropped to 226 mil. CZK (the value was 886 mil. CZK as at 30 June 2016, and it was affected mainly by revenues derived from an international transaction the transformation of the company Visa Europe in which the Bank had a capital participation). The Group also strengthened its position in trading: the trading profit grew by 83.3% from 951 mil. CZK as at 30 June 2016 to 1 743 mil. CZK as at 30 June 2017, respectively. The Group achieves excellent results with respect to terminating interventions against the koruna-euro exchange rate, in the area of financial market trading due to the development of interest rates and risk premiums, and in the area of exchange market trading. Operating revenues reached 9 294 mil. CZK, and increased by 5.1% in comparison with 8 842 mil. CZK as at 30 June 2016, which reflects a dynamically growing client base and higher transaction volumes and the effects described above. Administrative costs were reported in the amount of 4 173 mil. CZK (as at 30 June 2016: 4 151 mil. CZK), which represents a 0.5% growth. Impairment losses on loans and receivables decreased year-on-year by 157.2% (from -542 mil. CZK as at 30 June 2016 to +310 mil. CZK as at 30 June 2017). The trend shows a Group s continuous responsible approach in the field of managing the cost of risk and a good condition of the economy. Statement of financial position Assets As at 30 June 2017, the total assets of the Group reached 744.1 billion CZK, representing a 17.2% growth in comparison with the end of 2016 when the balance amount was 635 billion CZK. Financial assets measured at fair value against cost and revenue accounts dropped by 18.4% from the end of 2016, by 9 billion CZK to 7.4 billion CZK. Available-for-sale securities dropped by 22.8% to 61,9 billion CZK (at the end of 2016, the value was 80.2 billion CZK). The drop was caused by the sale of a part of government bonds that form a majority of the portfolio. As at 30 June 2017, they represented 58% of this item. Receivables from clients grew by 3% to total 397.1 billion CZK compared to the status at the end of 2016 (385.6 billion CZK). Loans in retail banking continue to grow year-on-year at double-digit rates, mainly thanks to mortgage credits, even despite a slight deceleration of dynamics resulting from the regulation. Within the corporate segment, the Group also achieved a significant growth in lending, particularly to small and medium-sized businesses. Within leasing receivables, there was a slight decrease due to the repayment of large real estate transactions, however, the Group continues the double-digit growth in the strategic segment of vehicles up to 3.5t. 3

A strong capital base and the growing base of stable deposits of retail clients and small businesses paves the way for further growth of responsible lending in areas of strategic focus of the Bank. Combined with a wide range of other banking services, the Bank creates business relationships with long-term positive benefits for its economy. Receivables from banks, compared to the situation as at 31 December 2016, grew by 84.4% (258 billion CZK as at 30 June 2017 compared to 139.9 billion CZK as at the end of 2016), mainly thanks to a growth of receivables from reverse repos. The increase in the value of intangible assets from 1 387 million CZK as at 31 December 2016 to 1 632 million CZK as at 30 June 2017 is caused by continued implementation of a common architecture for IT systems of the Czech and Slovak head-office, which will complete the integration of both banks after the merger in 2013. The common architecture will allow a reduction of the cost of investments and maintenance. Liabilities As at mid-2017, liabilities to banks grew by 97.9% from 115.5 billion CZK, as at the end of 2016, they grew to 228.6 billion CZK as at mid-2017. Here the growth is also caused mainly by an increase of liabilities from repo transactions. Client deposits decreased by 3.1% compared to the end of 2016, to total 359.5 billion CZK. (from 371.2 billion CZK as at 31 December 2016). The decrease is caused mainly in the area of liabilities from repo transactions, deposits in current accounts and term deposits remained the same as at the end of 2016. Deposits of retail clients recorded a marked double-digit year-on-year growth, which strengthens the structural value of the entire deposit base and allows the optimisation of its total amount with respect to refinancing costs. However, debt securities issued remained in the same value as at the end of 2016, in the amount of 60 billion CZK. Capital As at 30 June 2017, the Bank equity was 69.5 billion CZK, which represents a 3.8% growth compared to the end of 2016. This year and in 2016, the Group did not pay the dividend. 4

2. Expected Development in 2017 After the excellent results in 2016, the Bank expects the net profit at record levels again in 2017. On the revenue side, a positive growth in net interest income has been kept, mainly due to the growth in trade volumes and a modest contribution to the CNB's interest rate increase. The termination of the intervention scheme of the koruna exchange rate was used by the Bank to increase the trading result, on the one hand by providing a hedge of currency risk services to clients and, on the other hand, by the sound management of its own positions. Although it is a phenomenon of the first half-year, its contribution to the all-year result will remain significant. In the field of costs, the Bank starts to make significant savings in the execution of activities within the Groupwide programme Transform 2019, focusing on cost savings and optimisation of the branch network following the successful expansion of digital services for clients. The positive situation in the area of the costs of risks continues thanks to a high economic growth and the ability of the Bank to successfully deal with overdue loans even in 2017, and it will remain another significant contributor to the Bank's results. For growth sustainability in the long term, the Bank continues to grow its client base, particularly in the retail segment and the small and medium-sized business segment. Emphasis on risk and capital management will be positively reflected in the amount of risk-weighted assets, while contributing to the growth of return on capital consumption and improvement of the capital adequacy of the Bank. 5

3. Interim Financial Statements according to the IFRS (consolidated) ASSETS CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.6.2017 31.12.2016 mil. CZK mil. CZK Cash 5 500 4 192 Financial assets measured at fair value against cost and revenue accounts, 7 367 9 027 - held for trading 7 367 9 027 - not held for trading - - Available-for-sale securities 61 882 80 192 Held-to-maturity securities 175 186 Receivables from banks 258 047 139 900 Receivables from clients 397 087 385 572 Positive fair value of hedging derivatives 4 084 5 163 Investments in affiliated companies 368 401 Tangible assets 4 978 5 016 Intangible assets 1 632 1 387 Tax assets, 663 921 - Current tax 93 294 - Deferred tax 570 627 Non-current assets held for trading 4 4 Other assets 2 335 3 081 Total assets 744 122 635 042 LIABILITIES Liabilities to banks 228 568 115 524 Liabilities to clients 359 540 371 163 Debt securities issued 60 081 60 107 Financial liabilities held for trading 7 997 6 569 Negate fair value of hedging derivatives 3 208 3 417 Tax liabilities, 1 449 1 523 - Current tax 538 398 - Deferred tax 911 1 125 Other liabilities 12 986 8 879 Provisions 836 969 Total liabilities 674 665 568 151 EQUITY Share capital 8 755 8 755 Share premium 3 495 3 495 Funds from revaluation 3 174 4 782 Retained earnings and reserve funds 49 796 43 814 Profit for the accounting period 4 237 6 045 Total equity 69 457 66 891 Total liabilities and equity 744 122 635 042 6

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1.1.2017-30.6.2017 mil. CZK 1.1.2016-30.6.2016 mil. CZK Interest and similar income 5 933 6 015 Interest and similar expense (528) (937) Net interest and similar income 5 405 5 078 Fee and commission income 2 480 2 440 Fee and commission expenses (563) (521) Net fee and commission income 1 917 1 919 Dividend income 1 - Net profit/loss from financial assets and liabilities held for trading 1 743 951 Net profit/loss from coverage of the risk of variations of fair values 2 5 Net profit/loss from sale of financial assets and liabilities 226 886 Net profit/loss from financial assets and liabilities measured at fair value against cost and revenue accounts not held for trading - 3 Operating income 9 294 8 842 Impairment losses for financial assets 310 (542) Administrative costs (4 173) (4 151) Creation and reversal of provisions (100) (2) Amortisation and impairment losses on tangible assets (476) (370) Amortisation and impairment losses on intangible assets (29) (22) Other operating income and costs 377 396 Operating costs (4 401) (4 149) Profit/loss from participating interests in affiliated companies 64 27 Profit/loss from sale of non-financial assets (4) 182 Profit/loss from operations before tax 5 263 4 360 Income tax (1 026) (897) Profit/loss from operations after tax 4 237 3 463 Profit/loss from operations after tax attributable to Group owners 4 237 3 462 Profit/loss from operations after tax attributable to minority shares - 1 Another comprehensive result Items that may be derecognised subsequently into profit/loss from operations: Fund from revaluation of hedging instruments: (485) 537 Changes in net fair value of derivatives for cash flow hedges reported in another comprehensive result (476) 565 Net fair value of derivatives for cash flow hedges transformed into profit/loss from operations (9) (28) Fund from revaluation of available-for-sale securities: (736) (704) Change of revaluation of available-for-sale securities reported in another comprehensive result (686) (205) Revaluation of available-for-sale securities transformed into profit/loss from operations (50) (499) Exchange differences from consolidation of foreign branch (386) 48 Another comprehensive result (1 607) (119) Another comprehensive result attributable to Group owners (1 607) (119) Another comprehensive result attributable to minority shares - - Total comprehensive result 2 630 3 344 Total comprehensive result attributable to Group owners 2 630 3 343 Total comprehensive result attributable to minority shares - 1 7

CONSOLIDATED STATEMENT OF CASH FLOWS 1.1.2017-30.6.2017 mil. CZK 1.1.2016-30.6.2016 mil. CZK Profit after tax 4 237 3 463 Adjustments for non-monetary transactions: Impairment losses on loans and receivables and financial investments (344) 542 Revaluation of securities and derivatives (1 859) 321 Creation and reversal of other provisions 7 - Depreciation of tangible and intangible assets 505 392 Profit/loss from sale of tangible and intangible assets 4 (182) Taxes 1 026 897 Other non-monetary changes (469) 939 Operating profits before change of operating assets and liabilities 3 107 6 372 Financial assets and liabilities held for trading 4 912 (3 391) Receivables from banks (118 108) (34 644) Loans and receivables from clients (11 267) (23 102) Other assets 746 239 Liabilities to banks 113 069 41 168 Liabilities to clients (11 602) 8 228 Other liabilities 3 976 7 681 Income tax paid (616) (571) Net cash flow generated from operating activities (15 816) 1 980 Change in available-for-sale securities and other financial assets 18 110 (134) Purchase of a subsidiary company - - Proceeds from the sale of tangible and intangible assets 370 826 Purchase of tangible and intangible assets (986) (634) Dividends received 1 - Net cash flow generated from investing activities 17 495 58 Dividends paid - - Debt securities issued (404) (2 067) Net cash flow generated from financing activities (404) (2 067) Cash and other quick liquid resources at the beginning of the period 4 192 4 445 Net cash flow generated from operating activities (15 783) 1 980 Net cash flow generated from investing activities 17 495 58 Net cash flow generated from financing activities (404) (2 067) Cash and other quick liquid resources at the end of the period 5 500 4 416 Interest received 7 093 5 934 Interest paid (196) (668) 8

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY mil. CZK Share Share Fund from revaluation Retained earnings and reserve funds Profit Equity capital premiu m of hedging available-forsale Exchange Reserve funds Specialpurpose Exchange Retained for the current instruments securities difference and reserve differences earnings period s from other fund from consoliforeign capital branch funds dation Balance as at 31 December 2015 8 755 3 495 1 754 3 198 492 5 190 11 611 (2) 21 373 5 640 61 506 Transactions with company owners, contributions by and distributions to owners Profit distribution for 2015 5 640 (5 640) - Payment of dividend - - Impact of consolidation (1) (1) Total comprehensive result Profit/loss from operations after tax for the period 3 463 3 463 Another comprehensive result Change in revaluation of available-for-sale securities Change in revaluation of available-for-sale securities reported in another comprehensive result (218) (218) Revaluation of available-for-sale securities transformed into profit/loss from operations (618) (618) Deferred tax 132 132 Changes in net fair value of derivatives for cash flow hedges Changes in net fair value of derivatives for cash flow hedges reported in another comprehensive result 702 702 Net fair value of derivatives for cash flow hedges transformed into profit/loss from operations (34) (34) Deferred tax (131) (131) Exchange differences from consolidation of foreign branch 48 48 Total comprehensive result for the period 537 (704) 48 (119) Balance as at 30 June 2016 8 755 3 495 2 291 2 494 540 5 190 11 611 (3) 27 013 3 463 64 849 9

mil. CZK Share Share Fund from revaluation Retained earnings and reserve funds Profit Equity capital premiu m of hedging available-forsale Exchange Reserve funds Specialpurpose Exchange Retained for the current instruments securities difference and reserve differences earnings period s from other fund from consoliforeign capital branch funds dation Balance as at 31 December 2016 8 755 3 495 1 880 2 412 490 5 200 11 611-27 003 6 045 66 891 Transactions with owners of the Company, contributions by and distributions to owners Profit distribution for 2016 18 6 027 (6 045) - Payment of dividend - - Impact of consolidation (63) (63) Total comprehensive result Profit/loss from operations after tax for the period 4 237 4 237 Another comprehensive result Change in revaluation of available-for-sale securities Change in revaluation of available-for-sale securities reported in another comprehensive result (806) (806) Revaluation of available-for-sale securities transformed into profit/loss from operations (62) (62) Deferred tax 132 132 Changes in net fair value of derivatives for cash flow hedges Changes in net fair value of derivatives for cash flow hedges reported in another comprehensive result (590) (590) Net fair value of derivatives for cash flow hedges transformed into profit/loss from operations (11) (11) Deferred tax 115 115 Exchange differences from consolidation of foreign branch (386) (386) Total comprehensive result for the period (486) (736) (386) (1 608) Balance as at 30 June 2017 8 755 3 495 1 394 1 676 104 5 218 11 611 (63) 33 030 4 237 69 457 10

Annex of Interim Financial Statements (consolidated) CONSOLIDATION GROUP On 14 February 2014, the Bank signed contracts for the purchase of a 100% stake in UniCredit Leasing CZ, a.s. at the acquisition cost of 3 211 million CZK and of a 71.3% stake in UniCredit Leasing Slovakia, a.s. at the acquisition cost of 16 mil. EUR. The main activity of both companies is leasing and hire purchase. The contracts were signed between the Bank and UniCredit Leasing SpA.; thus, these transactions are transactions under common control. At the same period, both leasing companies bought Czech or Slovak real property of a project company from their original owner, UniCredit Leasing SpA. These transactions also represent transactions under common control. UniCredit Group's sales were made due to the reorganization of equity holdings within the UniCredit Group aimed at creating a strong financial group on local markets and boosting the business potential. The Bank then transferred a 91.2% share in UniCredit Leasing Slovakia, a.s. (a purchased share of 71.3% a and a share of 19.9% that was in Bank s property as early as at the end of 2013) as a non-monetary contribution to the share capital of UniCredit Leasing CZ, a.s. and on 18 April 2014, thus the value of the Bank's investment in UniCredit Leasing CZ, a.s. increased by 570 mil. CZK. Within the purchase of real estate project companies, UniCredit Leasing CZ, a.s. acquired the companies CA-Leasing Praha s.r.o. and CAC IMMO, s.r.o., which were merged on 1 November 2014 into the company HVB Leasing Czech Republic s.r.o. On 8 October 2014, the company UniCredit Leasing Insurance Services, s.r.o. was established, which is 100% owned by UniCredit Leasing Slovakia, a.s. The main activity of the company is intermediary activity in the field of services. UniCredit Leasing Real Estate s.r.o., which was acquired by UniCredit Leasing Slovakia, a.s. as part of real estate project companies, was merged on 8 January 2015 into UniCredit Leasing Slovakia, a.s. On 20 January 2015, the Bank completed the acquisition of the 100% stake in Transfinance, a.s., which was acquired from the owner outside the UniCredit Group. The investment value is 197 mil. CZK. The main activity of the company is financing, the collection and securing of short-term receivables from clients from various branches of industry. The aim of this acquisition for the Group is mainly a further expansion of the offer of products and services of corporate banking by factoring, which is intended mainly for small and medium-sized companies. In May 2015, the company changed the name to UniCredit Factoring Czech Republic and Slovakia, a.s. In June 2015, CAC Real Estate, s.r.o. owned by UniCredit Leasing CZ, a.s. was sold outside the UniCredit Group. In February 2016, INPROX Poprad, spol. s r.o. and INPROX SR I., spol. s r.o. merged and formed the company UniCredit Leasing Slovakia, a.s. with effect from 1 January 2016. In March 2016, BACA Leasing Gama s.r.o. owned by UniCredit Leasing CZ, a.s. was sold outside the UniCredit Group. In August 2016, INPROX Chomutov, s.r.o. and INPROX Kladno, s.r.o. merged and formed the company UniCredit Leasing CZ, a.s. with effect from 1 January 2016. In February 2017, CA-Leasing EURO, s.r.o. owned by UniCredit Leasing CZ, a.s., was sold outside the UniCredit Group. 11

CONSOLIDATION GROUP (Continued) As at 30 June 2017, the consolidation group consists of the following companies: Company name Company activity Seat Owner Group s share Consolidation method UniCredit Factoring Czech UniCredit Bank Czech Republic and Slovakia, a.s. Factoring Prague Republic and Slovakia, a.s. 100% complete Prague UniCredit Bank Czech complete UniCredit Leasing CZ, a.s. Leasing Republic and Slovakia, a.s. 100% UniCredit Fleet Management Rental of motor vehicles Prague complete s.r.o. UniCredit Leasing CZ, a.s. 100% UniCredit pojišťovací makléřská Prague complete spol. s r.o. Mediation of services UniCredit Leasing CZ, a.s. 100% Financing of motor Prague RCI Financial Services, s.r.o. vehicles UniCredit Leasing CZ, a.s. 50% equivalence Real estate project Prague complete ALLIB Leasing s.r.o. activity UniCredit Leasing CZ, a.s. 100% Real estate project Prague complete BACA Leasing Alfa s.r.o. activity UniCredit Leasing CZ, a.s. 100% Real estate project Prague complete CA-Leasing OVUS s.r.o. activity UniCredit Leasing CZ, a.s. 100% HVB Leasing Czech Republic Real estate project Prague complete s.r.o. activity UniCredit Leasing CZ, a.s. 100% UniCredit Leasing Slovakia, a.s. Leasing Bratislava UniCredit Leasing CZ, a.s. 100% complete UniCredit Fleet Management Rental of motor vehicles UniCredit Leasing Slovakia, complete s.r.o. Bratislava a.s. 100% Mediation of services UniCredit Leasing Slovakia, complete UniCredit Broker, s.r.o. Bratislava a.s. 100% UniCredit Leasing Insurance Mediation of services UniCredit Leasing Slovakia, complete Services, s.r.o. Bratislava a.s. 100% ACCOUNTING METHODS These financial statements have been prepared in accordance with the International Accounting Standard IAS 34 Interim Financial Reporting as adopted by the European Union and have not been audited. For the interim financial statements, the same accounting policies and methods as in the most recent annual financial statements as at 31 December 2016 were used. The figures are stated in millions of CZK unless otherwise stated. For the interim financial statements, the same material accounting estimates and assumptions as in the most recent annual financial statements as at 31 December 2016 were used. In the first half of 2017, the Bank did not start to use any IFRS standards and interpretations that could have a material impact on the financial statements. 12

CASH Petty cash 5 304 4 083 Other deposits in central banks 196 109 Total 5 500 4 192 For the purposes of compiling a cash flow statement, cash is defined as cash and quick liquid resources. FINANCIAL ASSETS MEASURED AT FAIR VALUE AGAINST COST OR REVENUE ACCOUNTS (a) (i) Held for trading By the quality of input used in the measurement at the fair value mil. CZK Level 1 Level 2 Level 3 Total 30 June 2017 Debt securities 1 481 58-1 539 Derivatives 33 5 795-5 828 Total 1 514 5 853-7 367 mil. CZK Level 1 Level 2 Level 3 Total 31 December 2016 Debt securities 2 803 13-2 816 Derivatives 39 6 172-6 211 Total 2 842 6 185-9 027 (ii) By the issuer s field of business Debt securities Public administration 1 539 2 816 Total 1 539 2 816 13

AVAILABLE-FOR-SALE SECURITIES (a) By the quality of input used in the measurement at the fair value mil. CZK Level 1 Level 2 Level 3 Total 30 June 2017 Debt securities 44 660 16 990-61 650 Shares - - 232 232 Total 44 660 16 990 232 61 882 mil. CZK Level 1 Level 2 Level 3 Total 31 December 2016 Debt securities 65 539 14 424-79 963 Shares - - 229 229 Total 65 539 14 424 229 80 192 (b) By the issuer s field of business Debt securities Banking 15 255 12 240 Governments and central banks 35 937 57 759 Another public sector 2 108 2 185 Other 8 350 7 779 Shares Other 232 229 Total 61 882 80 192 (c) Ownership interests Business company Registered office Date of acquisition Acquisition cost Net book value 2017 Net book Group s share value 2016 as at 30.6.2017 Group s share as at 31.12.2016 CBCB - Czech Banking Credit Bureau, a.s. (banking register) Prague 10.10.2001 0.24 0.24 0.24 20% 20% Total 0.24 0.24 0.24 - - 14

RECEIVABLES FROM CLIENTS (a) Analysis of receivables from clients in net value by the type of receivables mil. CZK Without default With default Total 30 June 2017 Current accounts (bank overdrafts) 38 833 522 39 355 Reverse repo transactions 6 025-6 025 Resident mortgage loans 92 922 840 93 762 Other mortgage loans 47 272 1 495 48 767 Leasing 25 330 503 25 833 Credit cards and consumer credits 11 843 112 11 955 Factoring 7 252 168 7 420 Other loans 162 297 1 673 163 970 Total 391 774 5 313 397 087 31 December 2016 Current accounts (bank overdrafts) 34 441 474 34 915 Reverse repo transactions - - - Resident mortgage loans 90 932 696 91 628 Other mortgage loans 62 473 1 902 64 375 Leasing 26 676 643 27 319 Credit cards and consumer credits 11 723 107 11 830 Factoring 6 087 144 6 231 Other loans 147 065 2 209 149 274 Total 379 397 6 175 385 572 When defining a client default, the Group applies it according to the CNB Decree 163/2014 Coll. or according to the Regulation (EU) No 575/2013 of the European Parliament and of the Council, specifically an obligor s default means a situation when: a) the obligor is past due more than 90 days on any repayment of the principal or accessions of any its obligation to the bank, and/or b) there is a likelihood that the obligor will not be able to repay its liabilities in time and in full, without the bank having to proceed to the exercise of security. 15

RECEIVABLES FROM CLIENTS (continued) (b) Classification of receivables from clients and impairment loss mil. CZK Gross value Identified individual losses 30 June 2017 Identified portfolio losses Net value Standard 388 001 - (1 459) 386 542 Monitored 5 421 - (189) 5 232 Non-standard 5 401 (2 685) - 2 716 Doubtful 1 670 (1 131) - 539 Loss-making 8 021 (5 963) - 2 058 Total 408 514 (9 779) (1 648) 397 087 31 December 2016 Standard 374 717 - (1 746) 372 971 Monitored 6 695 - (269) 6 426 Non-standard 6 190 (3 140) - 3 050 Doubtful 1 884 (1 093) - 791 Loss-making 8 364 (6 030) - 2 334 Total 397 850 (10 263) (2 015) 385 572 (c) Analyses of receivables from clients in net value by sectors Financial institutions 11 365 9 797 Non-financial corporations 274 332 268 668 Government sector 2 001 1 669 Natural persons and others 109 389 105 438 Total 397 087 385 572 LIABILITIES TO CLIENTS Analysis of liabilities to clients by type of liabilities Current accounts 321 740 322 479 Term deposits 33 942 40 411 Repo transactions - 4 653 Other 3 858 3 620 Total 359 540 371 163 16

DEBT SECURITIES ISSUED Analysis of debt securities issued Mortgage bonds 50 160 49 183 Structured bonds 7 672 8 170 Zero-coupon bonds 2 145 1 664 Other debt securities issued 104 1 090 Total 60 081 60 107 PROVISIONS Provisions consist of the following items: Provisions for off-balance-sheet credit items 413 553 Lawsuits 73 81 Provisions for restructuring 113 23 Other 237 312 Total provisions 836 969 mil. CZK Provisions for offbalancesheet credit items Lawsuits Provisions for restructuri ng Other Total Balance as at 1 January 2017 553 81 23 312 969 Creation during the year 56-104 1 161 Use during the year - - (1) (84) (85) Reversal of unnecessary provisions and other (196) (8) (13) 8 (209) Total as at 30 June 2017 413 73 113 237 836 AMORTISATION AND IMPAIRMENT LOSSES ON TANGIBLE ASSETS In the first half of 2017, the Group did not reverse the impairment loss on tangible assets (in the first half of 2016, the Group reversed 1 mil. CZK). DIVIDEND In the first half of 2017 and 2016, the Group did not pay the dividend. 17

SEGMENTAL ANALYSIS IFRS 8 Operating Segments provides for the presentation and reporting of operating segments according to performance criteria monitored by the person who bears the main responsibility for the operational decision. In the case of a group, this person is the Board of Directors of the bank. The Group primarily presents business segments broken down by client types: retail and private banking, corporate and investment banking, and others. The results from operations of the individual segments are monitored by the Board of Directors and other members of the Group's management on a monthly basis. Reported segments generate revenues mainly from loans and other bank products. Retail and private banking includes, in particular, the following products and services - loans, mortgages, account administration, payment system services including payment cards, saving and term accounts, investment advice. Corporate and investment banking includes, in particular, the following products and services - the provision of banking services to companies and government institutions - loans, bank guarantees, account administration, payment system services, opening of letters of credit, term deposits, derivative and foreign currency transactions, including the subscription of client shares, investment advice and advice in the field of acquisitions and mergers. Other services services not being part of the above categories. mil. CZK Retail and private banking Corporate and investment banking Other Total As at 30 June 2017 Net interest income and dividend income 1 402 3 619 384 5 405 Other net income 1 009 3 019 302 4 330 Amortisation and impairment losses on tangible and intangible assets (51) (417) (37) (505) Impairment of assets and provisions 216 249 (155) 310 Cost of segment (2 180) (2 146) 49 (4 277) Profit before tax 396 4 324 543 5 263 Income tax - - (1 026) (1 026) Result of segment 396 4 324 (483) 4 237 Assets by segments 116 649 615 311 12 162 744 122 External sources by segments 154 680 472 978 47 007 674 665 The income tax for all segments is reported in the segment Other. The Group does not have a client or a client group generating more than 10% of Group revenues. 18

SEGMENTAL ANALYSIS (continued) mil. CZK Retail and private banking Corporate and investment banking Other Total As at 30 June 2016 Net interest income and dividend income 1 432 3 677 (31) 5 078 Other net income 788 2 377 1 022 4 187 Amortisation and impairment losses on tangible and intangible assets (45) (323) (24) (392) Impairment of assets and provisions 3 (545) - (542) Cost of segment (1 803) (1 936) (232) (3 971) Profit before tax 375 3 250 735 4 360 Income tax (897) (897) Result of segment 375 3 250 (162) 3 463 Assets by segments 97 766 523 836 11 177 632 779 External sources by segments 143 545 375 424 48 961 567 930 CONTINGENT ASSETS AND CONTINGENT LIABILITIES Within ordinary commercial transactions, the Group enters various financial operations which are not posted within the Group balance sheet, and which are marked as off-balance-sheet financial instruments. Unless otherwise indicated, the figures provided below represent nominal amounts of off-balance-sheet operations. Contingent liabilities Lawsuits As at 30 June 2017, the Group assessed lawsuits conducted against it. Provisions were created for these lawsuits. In addition to these lawsuits, the Group was exposed to lawsuits arising out of ordinary commercial activities. The management does not expect that the outcome of these legal proceedings will have a significant impact on the Group's financial position. Liabilities deriving from guarantees and credit facilities and other contingent liabilities The major contingent liabilities include the values of undrawn credit facilities. Credit facilities issued by the Group include the commitments of loans or guarantees and also undrawn credit amounts, for bank overdraft facilities. Revocable commitments are commitments of loans or guarantees issued by the Group that the Group may revoke at any time without giving any reason. By contrast, irrevocable commitments represent an obligation of the Group to extend a loan or issue a guarantee the performance of which, if this linked to the fulfilment of contract terms by the client, is to a large extent independent of the Group s will. Liabilities deriving from financial guarantees represent an irrevocable confirmation that the Group will make payments in case that the conditions defined in the guarantee certificate are fulfilled. These confirmations carry a similar risk to loans and, therefore, the Group creates provisions for them based on an algorithm that is similar to loans. 19

CONTINGENT ASSETS AND CONTINGENT LIABILITIES (continued) Documentary letters of credit represent a written irrevocable obligation of the Group, issued on the basis of a request from its client (the principal) that a certain performance will be provided to a third party or to order of the party (the beneficiary, the authorised person) provided that conditions of letter of credit are met within a certain time period. The Group creates provisions for such financial instruments based on an algorithm that is similar to loans. The Group created provisions for off-balance-sheet items to cover the losses incurred as a result of the value impairment resulting from the credit risk. As at 30 June 2017, the total amount of these provisions was 413 mil. CZK (as at 31 December 2016: 553 mil. CZK). Letters of credit and financial guarantees 40 109 41 499 Other contingent liabilities (undrawn credit facilities) 118 295 115 291 Total 158 404 156 790 TRANSACTIONS WITH RELATED PARTIES Entities are considered persons that have a special relationship in case that one entity is able to control the activity of the other entity or to exercise a significant influence on the entity's financial or operating policies. In the ordinary course of business, transactions with persons with a special relationship are carried out. These transactions are mainly loans, deposits and other types of transactions. These transactions are carried out on the basis of ordinary business terms and at normal market prices so that no party suffers any detriment. Predominantly parent companies and sister companies within the UCI/HVB/BA Group, subsidiaries, and associated companies, and Board of Directors members and leading personnel of the Bank were identified as related parties. The UniCredit Group prepared a UniCredit Group Employee Participation Program, in which employees can purchase UniCredit Group's investment shares at a discount in the form of discount shares. A ban on the sale applies to discount shares during the tied period. Tied shares will forfeit if an employee terminates his/her employment in the Group or sells investment shares before the end of the tied period. The discount granted is allocated to particular companies in the Group which joined the programme, and the companies will defer and recognise them during the tied period. 20

TRANSACTIONS WITH RELATED PARTIES (continued) (a) Transactions with the parent company Until 30 September 2016, the parent company of the Bank was UniCredit Bank Austria AG; starting from 1 October 2016, the parent company of the Bank is UniCredit S.p.A. (i) Transactions with UniCredit S.p.A Assets Receivables from banks 1 096 3 451 Available-for-sale securities 1 863 1 929 Total 2 959 5 380 Liabilities Liabilities to banks 35 222 16 534 Total 35 222 16 534 Off-balance-sheet items Guarantees issued 279 112 Irrevocable credit facilities 98 185 Total 377 297 mil. CZK 1.1.2017-30.6.2017 1.1. 2016-30.6.2016 Interest and similar income 22 1 Interest and similar expense (10) - Fee and commission income 2 - Fee and commission expenses (25) - Net profit/loss from financial assets and liabilities held for trading - - Net profit/loss from coverage of the risk of variations of fair values - - Administrative costs (15) (43) Total (26) (42) 21

TRANSACTIONS WITH RELATED PARTIES (continued) (ii) Transactions with UniCredit Bank Austria AG Assets Receivables from banks 4 250 722 Positive fair value of hedging derivatives 292 55 Total 4 542 777 Liabilities Liabilities to banks 105 223 54 766 Financial liabilities held for trading 55 59 Negative fair value of hedging derivatives 162 33 Total 105 440 54 858 Off-balance-sheet items Guarantees issued 746 2 949 Irrevocable credit facilities - - Total 746 2 949 mil. CZK 1.1.2017-30.6.2017 1.1.2016-30.6.2016 Interest and similar income 10 49 Interest and similar expense 30 20 Fee and commission income 10 2 Fee and commission expenses (1) (1) Net profit/loss from financial assets and liabilities held for trading 172 (40) Net profit/loss from coverage of the risk of variations of fair values - (1) Administrative costs - 49 Total 221 78 22

TRANSACTIONS WITH RELATED PARTIES (continued) (b) Transactions with other related parties Assets Financial assets held for trading 1 159 1 036 UniCredit Bank AG 1 061 1 036 Receivables from banks 4 606 6 587 UniCredit Bank AG 537 287 Yapi ve Kredi Bankasi AS 3 700 5 524 UniCredit Bank Hungary Zrt. 98 25 ZAO UniCredit Bank 241 730 Receivables from clients 781 359 UCTAM CZ 415 - UCTAM SK 261 269 Board of Directors - 2 Other members of the management 104 87 Positive fair value of hedging derivatives 1 547 2 023 UniCredit Bank AG 1 547 2 023 Total 6 934 10 005 23

TRANSACTIONS WITH RELATED PARTIES (continued) Liabilities Liabilities to banks 30 870 14 572 UniCredit Luxembourg S.A. - 11 UniCredit Bank AG 27 395 10 288 UniCredit Bank Hungary Zrt. 3 433 4 233 Liabilities to clients 1 320 1 512 UniCredit Leasing (Austria) GmbH - 121 Pioneer Asset Management a.s. 634 897 Pioneer Investment Company 90 95 UniCredit Business Integrated Solutions S.p.A. 79 84 Board of Directors 97 88 Other members of the management 109 82 Financial liabilities held for trading 1 893 2 025 UniCredit Bank AG 1 893 2 025 Negative fair value of hedging derivatives 1 667 2 072 UniCredit Bank AG 1 667 2 072 Total 35 750 20 183 Off-balance-sheet items Guarantees issued 867 967 UniCredit Bank AG 701 656 UniCredit Bank Hungary Zrt. 76 112 Irrevocable credit facilities 173 287 UniCredit Bank AG 104 108 UCTAM CZ - 103 ZAO UniCredit Bank - 22 Board of Directors 1 1 Other members of the management 4 10 Total 1 040 1 254 24

TRANSACTIONS WITH RELATED PARTIES (continued) mil. CZK 1.1.2017-30.6.2017 1.1.2016-30.6.2016 Interest and similar income 150 206 UniCredit Bank AG 111 153 Yapi ve Kredi Bankasi AS 31 42 ZAO UniCredit Bank 2 9 Interest and similar expense 10 (2) UniCredit Bank AG 10 - Fee and commission income 29 23 UniCredit Bank AG 11 23 Fee and commission expenses (2) (2) UniCredit Bank AG - - Net profit/loss from financial assets and liabilities held for trading 125 273 UniCredit Bank AG 123 272 Net profit/loss from coverage of the risk of variations of fair values 150 (219) UniCredit Bank AG 148 (219) Administrative costs (726) (723) UniCredit Business Integrated Solutions S.p.A. (726) (711) Total (264) (445) SUBSEQUENT EVENTS The Group management is not aware of any events occurring after the balance sheet date that would require adjustment of the Bank's interim financial statements. 25

4. Statement Made by Issuer s Authorised Persons The present Half-Yearly Report, to the best of our knowledge, gives a true and fair picture of the financial position, business activities and operating results of the issuer and its consolidation unit over the past halfyear and the prospects of future financial development, business activities and operating results of the issuer and its consolidation unit. In Prague, on 30 September 2017 Ing. Jiří Kunert The Chairman of the Board of Directors Ljubiša Tešić The Member of the Board of Directors 26