28.11.2025: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 September 2025

To:

Financial Supervision Commission Investment Activity Supervision Department 16 Budapest Str.

Sofia

Cc:

Bulgarian Stock Exchange - Sofia AD 6 Tri Ushi Str.

Sofia

28 November 2025

Re: Consolidated (unaudited) financial statements of First Investment Bank AD as at 30 September 2025

Dear Sirs,

In compliance with the requirements of the Public Offering of Securities Act (POSA) and the regulations for its implementation, in our capacity as public company and issuer of bonds admitted for trading at a regulated market, we hereby submit the consolidated (unaudited) financial statements of First Investment Bank AD as at 30 September 2025, containing:

1. Financial statements as at 30.09.2025 as per Art. 100о, para. 4(1) of POSA;

2. Notes to the financial statements as at 30.09.2025;

3. Interim activity report under Art. 100о, para. 4(2) of POSA;

4. Declaration under Art. 100о, para. 4(3) of POSA.

5. Information pursuant to Ordinance No 2 of the Financial Supervision Commission on the prospectuses to be published when securities are offered to the public or admitted to trading on a regulated market and on disclosure of information.

Sincerely,

(signed) (signed)

Svetozar Popov Ralitsa Bogoeva

Executive Director Executive Director

Member of the MB Member of the MB

FIRST INVESTMENT BANK AD

unaudited

in thousands of BGN

FIRST INVESTMENT BANK AD

unaudited

in thousands of BGN

(s igned) (s igned)

Svetozar Popov Ralitsa Bogoeva

Executive Director Executive Director

(s igned)

Ianko Karakolev Chief Financial Officer

1. Basis of preparation
   1. Statute

      First Investment Bank AD (the Bank) was incorporated in 1993 in the Republic of Bulgaria and has its registered office in Sofia, at 111P, Tsarigradsko Chaussee.

      The Bank has a general banking license issued by the Bulgarian National Bank (BNB) according to which it is allowed to conduct all banking transactions permitted by Bulgarian legislation.

      Following the successful Initial Public Offering of new shares at the Bulgarian Stock Exchange -Sofia, on June 13th 2007 the Bank was registered as a public company in the Register of the Financial Supervision Commission pursuant to the provisions of the Law on the Public Offering of Securities.

      The consolidated financial statements of the Bank as at and for the nine months ended 30 September 2025 comprise the Bank and its significant subsidiaries, together referred to as the "Group".

      The Group has foreign operations in Cyprus (Cyprus Branch) and Albania (subsidiary).

   2. Statement of compliance

      These interim condensed financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting.

   3. Presentation of the financial statements

      The financial statements are presented in Bulgarian Leva (BGN) rounded to the nearest thousand.

      The financial statements are prepared in accordance with the fair value principle of derivative financial instruments, financial instruments recognised at fair value in profit or loss, investment properties, as well as assets recognised at fair value in other comprehensive income. Other financial assets and liabilities, as well as non-financial assets and liabilities, are reported at amortized or historical cost.

   4. New standards, amendments and interpretations effective as of 01 January 2025

      There are no new standards, nor amendments to existing standards issued by the International Accounting Standards Boards effective for the current period that could have any significant impacts on the Bank's accounting policies.

2. Material information on the accounting policy

   The accounting policy applied by the Group in the preparation of these interim condensed financial statements is the same as the one applied in the preparation of the last annual financial statements for the year ended on 31 December 2024 г.

   1. Income recognition

      1. Interes t income

         Interest income and expense is recognised in the profit or loss as it accrues, taking into account the effective yield of the asset (liability) or an applicable floating rate. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability. When calculating the effective interest rate, the Group assesses the future cash flows, taking into account all contractual terms of the financial instrument without future credit losses.

         The calculation of the effective interest rate includes all fees paid or received as well as discount and premiums which are an integral part of the effective interest rate. Transaction costs include

         incremental costs that are directly attributable to the acquisition or issue of a financial asset or liability.

         Interest income is calculated by applying the effective interest rate on the gross value of the financial asset, except for impaired assets for which the effective interest rate is applied to the amortised cost of the financial asset.

      2. Fees and Commiss ions

         Fee and commission income arises on financial services provided by the Group and is recognised in profit or loss when the corresponding service is provided.

      3. Net trading income

         Net gains (losses) on financial assets and liabilities held for trading includes those gains and losses arising from disposals and changes in the fair value of financial assets and liabilities held for trading as well as trading income in dealing with foreign currencies and exchange differences from daily revaluation of the net open foreign currency position of the Group.

      4. Dividend income

         Dividend income is recognised when the right to receive income is established. Usually this is the ex-dividend date for equity securities.

   2. Basis of consolidation

      1. Bus iness Combinations

         Business combinations are accounted for using the acquisition method as at the acquisition date - i.e. when control is transferred to the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

         The Group measures goodwill at the acquisition date as:

         • the fair value of the consideration transferred; plus

         • the recognised amount of any non-controlling interests in the acquiree; plus

         • if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; less

         • the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

           Negative goodwill arising on acquisition is re-assessed and any excess remaining after the reassessment is recognised in the income statement.

           The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss

           Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.

           Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.

           If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree's employees (acquiree's awards) and relate to past services, then all or a portion of the amount of the acquirer's replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based value of the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the replacement awards relate to past and/or future service.

           If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree's employees (acquiree's awards) and relate to past services, then all or a portion of the amount of the acquirer's replacement awards is included in measuring the

           consideration transferred in the business combination. This determination is based on the market-based value of the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the replacement awards relate to past and/or future service.

      2. Non-controlling interes t

         Non-controlling interest is measured at its proportionate share of the acquiree's identifiable net assets at the acquisition date.

         Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their capacity as owners. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. No adjustments are made to goodwill and no gain or loss is recognised in profit or loss; they are recognised directly in equity.

      3. Subs idiaries

         Subsidiaries are those enterprises controlled by the Bank. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

         The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

      4. Loss of control

         On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently that retained interest is accounted for as an equity-accounted investee or in accordance with the Group's accounting policy for financial instruments depending on the level of influence retained.

      5. Trans actions eliminated on cons olidation

         Intra-group income, expenses, balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

   3. Foreign currency transactions

      1. Functional and pres entation currency

         Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Bulgarian leva, which is the Group's functional and presentation currency.

      2. Trans actions and balances

         Transactions in foreign currencies are translated into the respective functional currencies of the operations at the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the spot exchange rate at that date. Foreign currency differences arising on translation are difference between amortised cost in functional currency in the beginning of period, adjusted with effective interest and received payments during the period, and amortised cost in foreign currency at the spot exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the functional currency at the spot exchange rate at the date that the fair value was determined.

      3. Foreign operations

         The assets and liabilities of foreign operations are translated to Bulgarian leva at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Bulgarian

         leva at exchange rates at the dates of the transactions. Foreign currency differences are recognised in other comprehensive income. The functional currency of the foreign operations in Cyprus is determined by the management to be the Euro. The functional currency of the foreign operations in Albania is determined by the management to be the Albanian Lek.

   4. Financial assets

      1. Recognition

         The Group recognizes a financial asset when it becomes a party to the contractual provisions of the instrument. The Group initially recognizes trade and other receivables on the date of transaction. Advances to customers are recognised when cash is advanced to the borrowers. At initial recognition, the Bank measures all financial assets at fair value plus, in the case of financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

         The Group classifies financial assets in the following categories: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, or financial assets measured at fair value through profit or loss. Management determines the classification of investments at initial recognition according to the business model for management of the specific class of financial assets and the contractual features of the cash flows associated with that financial asset.

      2. Financial as s ets at amortis ed cos t

         Debt instruments held within the Group's business model whose objective is to hold assets in order to collect contractual cash flows and where the contractual cash flows give rise only to principal and interest payments are recognised at amortised cost. After the initial recognition assets are booked at amortised cost.

         Recognition at amortised cost requires application of the effective interest rate method. The amortised cost of a financial asset is the value at which the financial asset was initially recognised, minus the principal repayments plus or minus the amortisation accrued by using the effective interest rate method for each difference between the initial value and the value at the maturity date and minus impairment.

      3. Financial ass ets at fair value through other comprehens ive income

         Debt instruments held within the Group's business model whose objective is to hold assets in order to collect contractual cash flows or to sell the asset and where the contractual cash flows give rise only to principal and interest payments are recognised at fair value in other comprehensive income. After initial recognition, the asset is measured at fair value with changes in fair value in revaluation reserve of investments in securities (other comprehensive income). When the debt instrument is written off, the profit or loss accrued and recognised in other comprehensive income is transferred to profit or loss.

      4. Financial as s ets at fair value through profit or loss

         The position contains two categories: financial assets held for trading and financial assets not classified in the above two categories. A financial asset is classified in this category if it was acquired for the purpose of short-term sale or if its contractual characteristics do not meet the requirement for generating payments of only principal and interest. Derivatives are also categorised as held for trading unless they are designated as hedges.

         The Group does not designate any debt instrument as at fair value through profit or loss to remove or significantly reduce an accounting mismatch.

      5. Capital ins truments at fair value through other comprehens ive income

         The Group may make an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. When the equity instrument is written off, the profit or loss accrued and recognised in other comprehensive income is directly transferred to other reserves and retained earnings.

      6. Reclass ification

         If the Group reclassifies a financial asset out of the fair value through profit or loss measurement category and into the fair value through other comprehensive income measurement category, the financial asset shall continue to be measured at fair value. The revaluation reserve for the instrument shall be formed from changes to fair value after the reclassification date.

         If the Group reclassifies a financial asset out of the amortized cost measurement category and into the fair value through profit or loss measurement category, its fair value shall be measured at the reclassification date. Any gain or loss arising from a difference between the previous amortized cost of the financial asset and fair value is recognized in profit or loss.

         If the Group reclassifies a financial asset out of the fair value through profit or loss measurement category and into the amortized cost measurement category, its fair value at the reclassification date shall become its new gross carrying amount.

         If the Group reclassifies a financial asset out of the amortized cost measurement category and into the fair value through other comprehensive income measurement category, its fair value shall be measured at the reclassification date. Any revaluation difference shall be recognized in other comprehensive income. The effective interest rate and the measurement of expected credit losses shall not be adjusted as a result of the reclassification.

         If the Group reclassifies a financial asset from the 'measured at fair value through other comprehensive income' category to the 'measured at amortized cost' category, the entire value of the accumulated revaluation reserve at the date of reclassification is offset against the fair value of the financial asset. Thus, in practice, it turns out that at the date of reclassification the financial asset is measured as if it had always been measured at amortized cost. The effective interest rate and the measurement of expected credit losses shall not be adjusted as a result of the reclassification.

         Such reclassification is only possible after a change in the business model by which financial assets are managed.

         In case of a change of the business model from "hold to collect and sell" to "hold to collect", the Group reclassifies the financial assets concerned. To this end, it periodically reviews its business model historically and analyses the extent to which the purpose of holding financial assets meets the 'hold to collect' business model as opposed to the 'hold to collect and sell' business model. In this analysis, the following criteria may serve as indication for change in the business model: government securities with sufficiently long residual term that have not been traded since their acquisition; or privately placed securities without an active market where the Group holds a significant part of the issue. In case of a significant predominance of the 'hold to collect' business model, the Group needs to consider whether to reclassify the financial assets from the 'Measured at fair value through other comprehensive income' category to the 'Measured at amortized cost' category, continuing to manage financial assets in such a way as to generate cash flows only from collecting contractual payments.

         If the Group reclassifies a financial asset out of the fair value through other comprehensive income measurement category and into the fair value through profit or loss measurement category, the financial asset shall continue to be measured at fair value. The cumulative revaluation reserve at the reclassification date shall be reclassified to profit or loss.

         The Group shall not reclassify any financial liability.

      7. Fair value meas urement principles

         Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal, or in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.

         When applicable, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

         When there is no quoted price in an active market, the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction.

         The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Group determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.

         If an asset or a liability measured at fair value has a bid price and an ask price, the Group measures assets and long positions at a bid price and liabilities and short positions at an ask price. The Group, which holds a group of financial assets and financial liabilities, is exposed to market risk and credit risk. If the Group manages these portfolios on the basis of its net exposure either to market risk or credit risk, the fair value is measured on the basis of a price that would be received to sell a net long position or paid to transfer a net short position for a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.

         The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.

      8. Derecognition

         The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Group transfers these rights in a transaction in which substantially all the risks and rewards of ownership of the financial assets are transferred to the buyer. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

         The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

         The Group enters into transactions whereby it transfers financial assets recognised in its statement of financial position, but retains either all or substantially all risks and rewards of the transferred asset. If all or substantially all risks and rewards are retained, then the transferred assets are not derecognised in the statement of financial position (an example of such transactions are repo deals).

         In transactions in which the Group neither retains nor transfers substantially all the risks and rewards of ownership of a financial asset, it derecognises the asset if it does not retain control over the asset. The rights and obligations retained in the transfer are recognised separately as assets and liabilities as appropriate. In transfers in which, control over the asset is retained, the Group continues to recognise the asset to the extent of its continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.

   5. Cash and cash equivalents

      Cash and cash equivalents comprise cash balances on hand, cash deposited with the central bank and short-term highly liquid accounts and advances to banks with original maturity of up to three months.

   6. Investments

      Investments that the Group holds for the purpose of short-term profit taking or repurchases are classified as financial assets for trading. Investments in debt instruments held by the Group as part of a business model for the purpose of collecting contractual cash flows are classified as financial assets at amortised cost. Investments in debt instruments held by the Group as part of a business model for the purpose of collecting contractual cash flows and sale are classified as financial assets at fair value in other comprehensive income. All other investments, including those whose contractual terms do not meet the requirement for generation of only principal and interest payments are classified as recognised at fair value in profit or loss.

   7. Securities borrowing and lending business and repurchase transactions

      1. Securities borrowing and lending

         Investments lent under securities lending arrangements continue to be recognised in the statement of financial position and are measured in accordance with the accounting policy applicable for assets at fair value in profit or loss or at fair value in other comprehensive income. Cash collateral received in respect of securities lent is recognised as liabilities to either banks or customers. Investments borrowed under securities borrowing agreements are not recognised. Cash collateral placements in respect of securities borrowed are recognised under loans and advances to either banks or customers. Income and expenses arising from the securities borrowing and lending business are recognised on an accrual basis over the period of the transactions and are included in interest income or expense.

      2. Repurchas e agreements

         The Group enters into purchases (sales) of investments under agreements to resell (repurchase) substantially identical investments at a certain date in the future at a fixed price. Investments purchased subject to commitments to resell them at future dates are not recognised.

         The amounts paid are recognised in loans to either banks or customers. The receivables are shown as collateralised by the underlying security. Investments sold under repurchase agreements continue to be recognised in the statement of financial position and are measured in accordance with the accounting policy for either assets held for trading or available-for-sale as appropriate.

         The proceeds from the sale are reported as liabilities to either banks or other customers.

         The difference between the purchase (sale) and resell (repurchase) considerations is recognised on an accrual basis over the period of the transaction and is included in interest income (expenses).

   8. Borrowings

      Borrowings are recognised initially at 'cost', being their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently stated at amortised cost and any difference between net proceeds and the redemption value is recognized in profit or loss over the period of the borrowings using the effective yield method.

      If the Group purchases its own debt, it is removed from the statement of financial position and the difference between the carrying amount of a liability and the consideration paid is included in other operating income.

   9. Offs etting

      Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the Group has a legally enforceable right to set off the recognised amounts and the transactions are intended to be settled on a net basis.

   10. Impairment of financial assets

       The Group recognizes 12-month expected credit loss as loss allowance when there is no significant increase in the credit risk since initial recognition. When there is a significant increase

       in credit risk since initial recognition, expected credit losses for the remaining life of the financial assets are recognized as loss allowance.

       Whether credit risk is significantly increased or not is determined based on the following factors and events for the debtor or the exposure:

       • Internal behavioural scoring of natural persons, companies and institutions whose exposures are above the threshold for significance;

       • Decrease in credit rating (internal or external) by a given number of notches for companies and institutions whose exposures are above the threshold for significance.

       • Delinquencies;

       • Other factors.

   11. Property and equipment

       Land and buildings are presented in the statement of financial position at their revalued amount which is the fair value of the asset as at the date of revaluation less any subsequent amortisation and depreciation and accumulated impairment losses. All others classes of items of property, plant and equipment are stated in the statement of financial position at their acquisition cost less accumulated depreciation and allowance for impairment.

       Depreciation is calculated on a straight-line basis at prescribed rates designed to decrease the cost or valuation of fixed assets over their expected useful lives. The annual rates of amortisation are as follows:

       Assets %

       • • Buildings 2 - 10

       • • Equipment 10 - 50

       • Fixtures and fittings 10 - 15

       • • Motor vehicles 20

       • • Leasehold Improvements 2 - 50

       Assets are not depreciated until they are brought into use and transferred from assets in the course of construction into the relevant asset category.

   12. Intangible assets

       Intangible assets acquired by the Group are stated at cost, less accumulated amortisation and any impairment losses.

       Amortisation is calculated on a straight-line basis over the expected useful life of the asset. The annual rates of amortisation are as follows: The annual rates of amortisation are as follows:

       Assets %

       • Licenses and trademarks 10 - 14

       • Software and licences 10 - 50

   13. Investment Property

       Investment property is property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both. The Group has chosen for its accounting policy to account for investment property using the fair value model and applies this to all its investment property. Investment properties are initially measured at cost and are subsequently measured using the fair value model, and the revaluation income and expense is recognised in the profit for period in which they occurred. The reclassification of repossessed assets reported as inventories into investment properties is possible only where a contract to rent out the respective property has been signed. The fair value of assets constituting investment property was determined by independent property assessors holding recognised professional qualification and recent experience in assessing property with similar location and category, using reliable techniques for determining fair values.

       1. Provisions

          A provision is recognised in the statement of financial position when the Group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable assessment of the amount due can be made.

          If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The discount factor is determined before tax and reflects the current market assessment of the time value of money and the specific risks associated with the obligation.

       2. Acceptances

          An acceptance is created when the Group agrees to pay, at a stipulated future date, a draft drawn on it for a specified amount. The Group's acceptances primarily arise from documentary credits stipulating payment for the goods to be made a certain number of days after receipt of required documents. The Group negotiates most acceptances to be settled at a later date following the reimbursement from the customers. Acceptances are accounted for as liabilities evidenced by paper.

       3. Off-balance sheet commitments

          In the ordinary course of its business, the Group enters into off-statement of financial position commitments such as guarantees and letters of credit. The Group recognizes provision for off-statement of financial position commitments when it has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and when a reliable estimate can be made of the obligation.

       4. Taxation

          Tax on the profit for the year comprises current tax and the change in deferred tax. Current tax comprises tax payable calculated on the basis of the expected taxable income for the year, using the tax rates enacted by the statement of financial position date, and any adjustment of tax payable for previous years.

          Deferred tax is provided using the balance sheet liability method on all temporary differences between the carrying amounts for financial reporting purposes and the amounts used for taxation purposes.

          Deferred tax is calculated on the basis of the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. The effect on deferred tax of any changes in tax rates is charged to profit or loss, except to the extent that it relates to items previously recognised either in other comprehensive income or directly in equity.

          A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the unused tax losses and credits can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

       5. Critical accounting estimates and judgements in applying accounting policies

          The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

          Information on the valuations and the valuation uncertainty, for which there is a significant risk of change as of 30 June 2025 are stated below and are related to the impairment of financial instruments, income tax and the following notes related to other elements of the financial statements:

          • Note 4, 5 - determining of the fair value of the financial instruments, land and buildings through valuation techniques, in which the input data for the financial assets and liabilities are not based on the available market information. The Management uses valuation techniques for the fair value of financial instruments (when there is no quoted price in an

            active market) and non-financial assets. In applying the valuation techniques, the Management uses to a maximum degree market data and assumptions which market participants would take into account in pricing an instrument. When there is no available market data, the Management uses its best judgement of the assumptions that market participants would make. These judgements may differ from the actual prices that may be determined in a fair market transaction between informed and willing parties at the end of the reporting period.

            • Notes 10 12 14- measuring the expected credit loss - credit losses constitute the difference between all contractual cash flows payable to the Bank and all cash flows which the Bank expects to receive. Expected credit loss is the probability-weighted estimate of credit losses which require the Group's judgement. Expected credit loss is discounted with the initial effective interest rate (or with the loan-adjusted effective interest rate for purchased or initially created financial assets with credit impairment).

          • Notes 12, 14 - debt instruments at amortised cost - the analysis and intentions of the Management are confirmed by the business model of holding debt instruments that meet the requirements for receiving only principal and interest payments and holding assets until collecting the contractual cash flows from the bonds which are classified as debt instruments at amortised cost.

          • Note 23 in accordance with IAS 37 - Provisions, Contingent Liabilities and Contingent Assets and the internal rules for setting aside provisions for pending court cases the Group has recognised provisions for pending court cases. The Group is a defendant in pending cases and the outcome of those cases may lead to liabilities in an amount different from the amount of provisions recognized in the financial statement.

            1. Ass ess ment of repos s es s ed ass ets from collaterals

               Assets accepted as collateral are recognized at the lower of the cost of acquisition and the net realizable value. When evaluating the net realizable value of the assets the Group prepares several models for appraisal (e.g. discounted cash flows) and makes comparison to available market data (e.g. similar market transactions, offers from potential buyers).

            2. Income taxes

            The Group is subject to income taxes in numerous jurisdictions. Significant estimates are required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

       6. Earnings per share

          The Group presents basic and diluted earnings per share (EPS) data for the Bank's ordinary shares. Basic EPS is calculated by dividing the profit or loss for the period attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are calculated as the profit or loss for the period attributable to the Bank's ordinary shareholders, adjusted for the effect of all potential dilutive ordinary shares, which consist of convertible bonds and share options, divided by the weighted average number of ordinary shares held during the period."

       7. Employee benefits

          Defined contribution plans

          A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. The Government of Bulgaria is responsible for providing pensions in Bulgaria under a defined contribution pension plan. The Bank's contributions to the defined contribution pension plan are recognised as an employee benefit expense in profit or loss in the periods during which

          services are rendered by employees.

          Defined benefit plans

          A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.

          The Bank has an obligation to pay certain amounts to each employee who retires with the Bank in accordance with Art. 222, § 3 of the Labour Code.

          According to these regulations in the LC, when a labour contract of a bank's employee, who has acquired a pension right, is ended, the Bank is obliged to pay him compensations amounted to two gross monthly salaries. Where the employee has been with the same employer for the past 10 years, this employee is entitled to a compensation amounting to six gross monthly salaries. As at balance sheet date, the Management of the Bank estimates the approximate amount of the potential expenditures for every employee using the projected unit credit method.

          For the last two years the Bank has prepared estimates for the due provisions for pensions and has not identified significant liabilities.

          Termination benefits

          Termination benefits are recognised as an expense when the Group is committed demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Bank has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period, then they are discounted to their present value.

          Short-term employee benefits

          Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. The Group recognises as a liability the undiscounted amount of the estimated costs related to annual leave expected to be paid in exchange for the employee's service for the period completed.

       8. Insurance Contracts

          Significant ins urance ris k

          Insurance contracts are those contracts under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

          The Group considers that the insurance risk is significant only if an insured event could cause the issuer to pay additional amounts that are significant in any single scenario, excluding scenarios that have no commercial substance (i.e. no discernible effect on the economics of the transaction). If an insured event could mean significant additional amounts would be payable in any scenario that has commercial substance, the condition in the previous sentence can be met even if the insured event is extremely unlikely, or even if the expected (i.e. probability-weighted) present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract.

          Recognition of revenue by group of ins urance contracts

          The Group recognizes revenue from a group of insurance contracts, by deferring the insurance premium for the coverage period of each of the contracts forming the relevant group of insurance contracts. The coverage period is the period during which the entity provides insurance contract

          services. This period includes the insurance contract services that relate to all premiums within the boundary of the insurance contract.

          Meas urement of groups of ins urance contracts - meas urement model

          IFRS 17 Insurance Contracts requires that assets and liabilities under insurance contracts be measured using the General Measurement Model (GM) where the estimates of all rights and obligations are remeasured using actual unbiased assumptions during each reporting period. It is admissible to use the simplified Premium Allocation Approach (PAA) for calculating the Liability for Remaining Coverage (LRC), provided that it ensures a measurement which does not differ significantly from the measurement made using the General Measurement Model, or where the coverage period of the group of insurance contracts is one year or less.

          In order to apply the Premium Allocation Approach (PAA), the following criteria must be met at the same time:

          • he coverage period of the group of insurance contracts is one year or less;

          • The liability for remaining coverage calculated by using the PAA does not differ significantly from the liability for remaining coverage calculated by using the General Measurement Model (ОМ);

          • There are no onerous groups of insurance contracts on initial recognition.

          The Group recognizes the insurance contracts it has issued using the Premium Allocation Approach (PAA).

          Liability for remaining coverage

          The Group assesses the liability for remaining coverage using the Premium Allocation Approach and has chosen to recognize all acquisition cash flows when these costs are incurred.

          On initial recognition the carrying amount of the liability is: the premiums, if any, received at initial recognition. Upon subsequent measurement, the carrying amount of the liability is the carrying amount at the start of the reporting period, plus the premiums received in the period, minus the amount recognized as insurance revenue for services provided during this period.

          Liability for incurred claims

          The liability for incurred claims is formed on the basis of the expected cash outflows related to claims, taking into account the time value of money and the financial risks related to future cash flows, plus the risk adjustment for non-financial risk.

          The liability for incurred claims includes:

          • Reported but not settled claims - calculated using the "Claim by claim" method where it includes the expected amount of payments for each claim which has been reported but not settled. In order to calculate the amount of the reserve for reported but not settled claims, for each new claim an initial reserve is formed, based on statistical methods; upon an expert assessment of the claim, the reserve is changed based on this assessment in order to reflect the expected amount of the claim settlement. The amounts which are subject to reimbursement due to subrogation have been measured, and the reserve for reported but not settled claims in the business line "Other insurance related to motor vehicles" has been decreased.

          • Incurred but not reported claims - includes the amount of unreported claims for events which occurred before the end of the reporting period, and the amount of claims which may be renewed.

          In all business lines the claims incurred consist of reported claims (RBNS claims) and incurred but not reported claims (claims with delayed reporting, IBNR claims). The applicable regulation does not require that the calculation necessarily be made separately for reported claims, for unreported claims and for expenses to settle those claims. The Group calculates the reserve for claims on the basis of a model developed to generate the expected amount of claims incurred and the respective cash flows related thereto. The model generates expected cash flows on an annual basis with regard to claims based on premium earned and the quota for claims, and the results are compared to the settlement for claims and the reported claims (RBNS claims) in order to determine the reserve for claims.

       9. Leases

       1. The Company as less ee

          For contracts concluded on or after 1 January 2019 the Group assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an asset (the identified asset) for a period of time in exchange for consideration. In order to apply this definition, the Group assesses three key elements:

          • Whether the contract refers to an identified asset which is either explicitly specified in a contract, or implicitly specified at the time that the asset is made available for use;

          • The Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, within the scope of its right of use defined in the contract;

          • The Group has the right to direct the use of the identified asset throughout the period of use.

            The Group assesses whether it has the right to direct how and for what purpose the asset will be used throughout the period of use.

            Ass ess ment and recognition of leas es by the Group as less ee

            On the commencement date of the lease contract the Group recognises the right-of-use asset and the lease liability in the statement of financial position. The right-of-use asset is assessed at cost which comprises the amount of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset at the end of the lease contract, and any lease payments made at or before the commencement date (less any lease incentives received).

            The Group depreciates the right-of-use asset using the linear method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also reviews the right-of-use assets for impairment, where such indicators exist.

            On the commencement date of the lease contract the Group measures the lease liability at the present value of the remaining lease payments at that date, discounted using the borrowing rate stipulated in the lease contract, if that rate can be readily determined, or the company's incremental borrowing rate.

            As of 01.01.2019 the Group applies IFRS 16 Leases. To this end, an analysis was made of the requirements of this Standard, and the following key elements were identified:

            IFRS 16 Leases introduces new rules for reporting lease agreements. First of all, the standard requires that an analysis be made of whether and which agreements with or without the legal form of lease constitute a lease or contain lease components in accordance with the definition of lease contained in IFRS 16, paragraph 9. According to Paragraph 9, a contract is, or contains, a lease if:

            • there is an identified asset, and

            • the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration.

              In the general case, the lessee is required recognise a right-of-use asset and a lease liability at the commencement date.

              Also, instead of applying the requirements for recognition of a right-of-use asset in return for consideration under a lease contract, the lessee may choose to report lease contracts as an expense under the linear method for the duration of the lease in the following types of contracts:

            • ending within 12 months of the date of initial application of IFRS 16

            • lease of low-value assets

              In the process of assessing the effects of application of this Standard, the Group did the following:

            • Full review of all agreements was made in order to establish whether it may be necessary to consider additional agreements as lease agreements according to the new IFRS 16 definition;

            • A decision was made for partial retrospective application (which means that the comparative information will not be changed). Under the modified approach it is possible not to assess whether existing agreements contain leases and other relief. Under the modified approach it is possible not to assess whether existing agreements contain leases and other relief.

            The Management analysed the effect of application of the Standard for contracts expected to last up to five years because a big part of the rental agreements to which the Group is a party as a tenant, the Group can terminate after a three- or six-months' notice without owing an indemnity.

            Even in the other contracts this possibility is available in accordance with the law.

            This reflects on the expected actual duration of the lease because the contract term depends on the probability that the Group would exercise that option. With relation to this the Group considers that a duration of five years is indicative of the maximum duration of the lease term, irrespective of whether contracts of longer duration exist or not.

            In order to determine the incremental borrowing rate, the Group uses an interest rate consisting of the risk-free interest rate and a surcharge reflecting the credit risk related to the Group and additionally adjusted for the specific conditions of the lease contract, including term, country, currency, and collateral.

            Lease payments included in measuring the lease liability comprise fixed payments (including in-substance fixed payments), variable lease payments that depend on an index or a rate, amounts expected to be payable by the lessee under residual value guarantees, and the exercise price of a purchase option if the Group is reasonably certain to exercise that option.

            After the commencement date, the lease liability shall be decreased with the amount of payments made and shall be increased with the amount of the interest. The lease liability is remeasured to reflect any reassessment or lease modifications, or to reflect revised in-substance fixed lease payments.

            When the lease liability is remeasured, the amount of the remeasurement is recognised in the right-of-use asset or in profit or loss, if the carrying amount of the right-of-use asset is already reduced to zero.

            The Group has chosen to report short-term leases and leases of low-value assets by using practical expedients envisaged in the standard. Instead of recognising right-of-use assets and lease liabilities, the Bank recognizes the payments related to them as an expense in profit or loss using the linear method during the lease term.

            In the statement of financial position, right-of-use assets are presented on a separate row "Right-of-use assets", and the liabilities under lease contracts are also presented on a separate row -"Lease liabilities".

            Extension options or termination options are included in a number of the Group's property rentals. They are used to increase the operative flexibility in the management of assets used in its operations.

       2. The company as less or

       The portion of IFRS 16 which concerns the Group as lessor no significant changes were found in comparison to the previous IAS 17. The Group classifies a lease contract as a finance lease if it has transferred substantially all risks and rewards related to ownership of the asset subject to the lease. All other lease contracts are classified as operating.

       In case of a finance lease, the Group recognises as asset a receivable under the contract in an amount equal to the net investment in the lease. During the lease term the Group recognizes interest income on the amount receivable at an interest rate reflecting the return rate of the net investment in the lease.

       In case of operating lease, the Group recognises lease payments as revenue on a linear basis.

       As lessor, the Group classifies each of its lease contracts as either an operating lease or a finance lease.

       A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

3. Segment Reporting

   Segment information is presented in respect of the Group's geographical segments. The primary format, geographical segments, is based on the Bank's management and internal reporting structure.

   Reporting and measurement of segment assets and liabilities and segment revenues and results is based on the accounting policies set out in the accounting policy notes.

   Transactions between segments are conducted on an arm's length basis.

   The Group operates principally in Bulgaria, but also has operations in Cyprus and Albania.

   In presenting information on the basis of geographical segments, revenue and operating income is allocated after intragroup eliminations based on the location of the Bank branch that generated the revenue. Segment assets and liabilities are allocated after intragroup eliminations based on their geographical location.

   Nine months ended 30 September	nine months ended 30 September	Nine months ended 30 September	nine months ended 30 September	Nine months ended 30 September	nine months ended 30 September
   2025	2024	2025	2024	2025	2024
   374,318	335,343	57,744	61,422	432,062	396,765
   (60,837)	(39,645)	(16,053)	(12,119)	(76,890)	(51,764)
   313,481	295,698	41,691	49,303	355,172	345,001
   159,077	146,581	24,419	19,389	183,496	165,970
   (41,185)	(33,124)	(6,309)	(4,974)	(47,494)	(38,098)
   117,892	113,457	18,110	14,415	136,002	127,872
   16,329	18,929	3,380	2,735	19,709	21,664
   (177,997)	(174,399)	(18,465)	(16,557)	(196,462)	(190,956)
   30.09.2025	31.12.2024	30.09.2025	31.12.2024	30.09.2025	31.12.2024
   15,730,148	15,015,408	2,053,595	1,840,202	17,783,743	16,855,610
   13,770,601	13,387,528	2,132,091	1,737,933	15,902,692	15,125,461

   in thousands of BGN Bulgarian operations Foreign operations Total

   Interest income Interest expense Net interest income

   Net fee and

   commission income Fee and commission expense

   Net fee and commission income Net trading income Administrative expenses Assets Liabilities

   The table below shows assets and liabilities and income and expense by business segments as at 30/09/2025:

   Business	Assets	Liabilities	Net interest income	Net fee and commission income	Net trading income	Other net operating income
   Large enterprises	2,937,667	1,938,467	73,866	39,164	-	16
   Small and medium enterprises	2,518,332	2,220,316	93,148	41,488	-	-
   Retail Banking	4,145,143	11,118,099	134,614	55,750	-	162
   Treasury	6,410,364	2,656	72,696	(821)	19,709	(83,697)
   Other	1,772,237	623,154	(19,152)	421	-	8,302
   Total	17,783,743	15,902,692	355,172	136,002	19,709	(75,217)

4. Financial assets and liabilities Accounting classification and fair values

   The Group's accounting policy on fair value measurements is set out in Note 2(d)(vi).

   The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

   Level 1: inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

   Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

   Level 3: inputs are observable date for a given asset or liability. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

   Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all other financial instruments, the Group determines fair values using other valuation techniques.

   Other valuation techniques include net present value and discounted cash flow models, comparison to similar instruments for which market observable prices exist, option pricing models and other valuation models. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premia used in estimating discount rates, bond and equity prices, foreign currency exchange rates, equity and equity index prices and expected price volatilities and correlations.

   The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

   The Group uses widely recognised valuation models for determining the fair value of common and more simple financial instruments, like interest rate and currency swaps that use only observable market data and require little management judgement and estimation. Observable prices and model inputs are usually available in the market for listed debt and equity securities, exchange traded derivatives and simple over the counter derivatives like interest rate swaps. Availability of observable market prices and model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determination of fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets.

   However, where the Group measures portfolios of financial assets and financial liabilities on the basis of net exposures, it applies judgement in determining appropriate portfolio level adjustments such as bid-ask spread.

   Such adjustments are derived from observable bid-ask spreads for similar instruments and adjusted for factors specific to the portfolio.

   For more complex instruments, the Group uses proprietary valuation models, which usually are developed from recognised valuation models. Some or all of the significant inputs into these models may not be observable in the market, and are derived from market prices or rates or are estimated based on assumptions. Example of instruments involving significant unobservable inputs include certain over the counter derivatives, certain loans and securities for which there is no active market and retained interests in securitisations. Valuation models that employ significant

   unobservable inputs require a higher degree of management judgement and estimation in the determination of fair value. Management judgement and estimation are usually required for selection of the appropriate valuation model to be used, determination of expected future cash flows on the financial instrument being valued, determination of probability of counterparty default and prepayments and selection of appropriate discount rates.

   The Bank has an established control framework with respect to the measurement of fair values. This framework includes a Risk Management function, which is independent of Treasury division and reports to management, and which has overall responsibility for independently verifying the results of trading and investment operations and all significant fair value measurements. Specific controls include:

   • verification of observable pricing;

   • a review and approval process for new models and changes to models involving the Risk Management Division and the Group's Management Board;

   • calibration of models against observed market transactions;

   • analysis and investigation of significant daily valuation movements;

   • review of significant unobservable inputs, valuation adjustments and significant changes to the fair value measurement of Level 3 instruments compared to previous month, by Risk Management division.

     Where third-party information, such as broker quotes or pricing services, are used to measure fair value, Risk Management division assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS. This includes:

   • verifying that the broker or pricing service is approved by the Bank for use in pricing the relevant type of financial instrument;

   • understanding how the fair value has been arrived at and the extent to which it represents actual market transactions;

   • when prices for similar instruments are used to measure fair value, how these prices have been adjusted to reflect the characteristics of the instrument subject to measurement;

   • where a number of quotes for the same financial instrument have been obtained, how fair value has been determined using those quotes.

   The tables below set out analysis of financial instruments measured at fair value at the end of the reporting period classified by fair value hierarchy level framework categorising fair value measurement. The amounts are based on the amounts in the statement of financial position.

   in thousands of BGN 30/09/2025	Level 1	Level 2	Level 3	Total
   Financial assets at fair value through profit or loss	100,717	73,401	85	174,203
   Financial assets at fair value through other comprehensive income	2,272,168	146,558	-	2,418,726
   Derivatives held for risk management	-	-	-	-
   Total	2,372,885	219,959	85	2,592,929
   Financial liabilities at fair value through profit or loss.	-	-	-	-
   in BGN '000 31/12/2024	Level 1	Level 2	Level 3	Total
   Financial assets at fair value through profit or loss	50,387	160,209	85	210,681
   Financial assets at fair value through other comprehensive income	2,254,082	93,094	-	2,347,176
   Derivatives held for risk management	1,732	1,288	-	3,020
   Total	2,306,201	254,591	85	2,560,877
   Financial liabilities at fair value through profit or loss.	-	936	-	936

   The tables below set out analysis of the fair values of financial instruments not recognised at fair value, classified by fair value hierarchy level framework categorising fair value measurement

   Level 1	Level 2	Level 3	Total fair values	Total balance sheet value
   -	2,694,446	-	2,694,446	2,694,446
   751,313	-	-	751,313	789,605
   -	333,384	-	333,384	333,384
   -	556,164	9,189,622	9,745,786	9,601,142
   751,313	3,583,994	9,189,622	13,524,929	13,418,577
   -	1,837	-	1,837	1,837
   -	9,745,258	4,414,935	14,160,193	14,221,255
   -	1,237,547	-	1,237,547	1,247,155
   -	19,601	-	19,601	19,601
   -	261,482	-	261,482	261,482
   -	11,265,725	4,414,935	15,680,660	15,751,330

   in BGN '000

   30/09/2025 Assets

   Cash and balances with Central Banks

   Financial assets at amortised cost Loans and advances to banks and other financial institutions

   Loans and advances to customers

   Total Liabilities

   Due to banks

   Due to other customers Other borrowed funds Subordinated term debt Hybrid debt

   Total

   in BGN '000

   31/12/2024 Assets	Level 1	Level 2	Level 3	Total fair values	Total balance sheet value
   Cash and balances with Central Banks	-	2,814,363	-	2,814,363	2,814,363
   Financial assets at amortised cost Loans and advances to banks and	830,239	-	-	830,239	883,256
   other financial institutions	-	365,017	-	365,017	365,017
   Loans and advances to customers	-	841,155	7,699,878	8,541,033	8,542,732
   Total	830,239	4,020,535	7,699,878	12,550,652	12,605,368
   Liabilities
   Due to banks	-	15,010	-	15,010	15,010
   Due to other customers	-	9,639,346	4,234,303	13,873,649	13,959,100
   Other borrowed funds	-	723,560	-	723,560	730,033
   Subordinated term debt	-	19,410	-	19,410	19,410
   Hybrid debt	-	258,908	-	258,908	258,908
   Total	-	10,656,234	4,234,303	14,890,537	14,982,461

5. Net interest income

   in thousands of BGN	Nine months ended 30.09.2025	Nine months ended 30.09.2024
   Interest income
   Accounts with and placements to banks and financial institutions	11,039	9,239
   Large enterprises	97,318	77,705
   Small and medium enterprises	98,020	100,421
   Microlending	12,244	11,964
   Retail Banking	148,329	129,062
   Debt instruments	65,089	68,374
   Other interest income	23	-
   	432,062	396,765
   Interest expense Deposits from banks	(41)	(34)
   Deposits from other customers	(20,725)	(12,039)
   Other borrowed funds	(35,742)	(19,047)
   Subordinated term debt	(575)	(575)
   Hybrid debt	(18,611)	(18,646)
   Interest on assets cost	(615)	(401)
   Interest expense on financial liabilities recognized in profit or loss	(21)	(14)
   Lease agreements and other	(560)	(1,008)
   	(76,890)	(51,764)
   Net interest income	355,172	345,001

   The distribution of the loan portfolio is reported according to the Bank's business segments

6. Net fee and commission income

   	Nine months	Nine months ended
   In thousands of BGN	ended 30/09/2025	30/09/2024
   Net fee and commission income Letters of credit and guarantees	3,573	2,652
   Payment operations	27,362	25,568
   Customer accounts	33,614	32,179
   Card services	58,079	51,591
   Other	60,868	53,980
   	183,496	165,970
   Fee and commission expense Letters of credit and guarantees	(453)	(439)
   Payment systems	(3,903)	(3,955)
   Card services	(34,138)	(26,201)
   Other	(9,000)	(7,503)
   	(47,494)	(38,098)
   Net fee and commission income	136,002	127,872

7. Net trading income

   	Nine months ended	Nine months ended
   in thousands of BGN	30/09/2025	30/09/2024
   Net trading income arises from Debt instruments	401	60
   Equities	218	1,401
   Foreign exchange rate fluctuations	19,090	20,203
   Net trading income	19,709	21,664

8. Other net operating income

   	Nine months ended	Nine months ended
   in BGN '000	30/09/2025	30/09/2024
   Other net operating income arising from:
   -net income from transactions and revaluation of gold and precious metals	2,685	552
   Rental income	5,617	5,612
   Debt instruments	(86,175)	(59,107)
   Equities	2,478	-
   - income from management of assigned receivables	26	2,161
   Gain on administration of loans acquired through business combination	152	19
   Other net operating income	(75,217)	(50,763)

9. Administrative expenses

   	Nine months ended	Nine months ended
   in BGN '000 General and administrative expenses comprise:	30/09/2025	30/09/2024
   Personnel costs	93,506	83,250
   Amortization of equipment and tangible fixed assets	19,146	13,416
   Rights of use assets	14,842	28,020
   Advertising	5,449	7,016
   Telecommunication, software and other computer maintenance	15,374	13,464
   - Other expenses for external services	48,145	45,790
   Administrative expenses	196,462	190,956

10. Allowance for impairment

    in BGN '000	Nine months ended 30/09/2025	Nine months ended 30/09/2024
    Reversal of write-downs
    Loans and advances to customers	(180,847)	(225,955)
    (v) Capital instruments at fair value through other comprehensive income	(36)	-
    Off-balance sheet commitments	(201)	(882)
    Write-downs Loans and advances to customers	62,201	82,427
    Securities at fair value through other comprehensive income	143	32
    Off-balance sheet commitments	489	203
    Impairment cost, net	(118,251)	(144,175)

    10a. Other income/(expenses), net

    In thousands of BGN	Nine months ended 30/09/2025	Nine months ended 30/09/2024
    Profit from the sale and write-off of assets acquired as collateral	3,276	3,485
    Revaluation of investment property	65,307	-
    (Loss)/profit from sale of investment property	876	4,648
    Dividend income	3,658	2,545
    Cost of guarantee schemes	(18,866)	(20,008)
    Insurance income	9,958	8,584
    (Expense) for insurance services	(5,078)	(4,907)
    (Expense)/reversal of expense for provisions for pending court cases	-	-
    Other income/(expenses), net	(2,576)	6,856
    Total	56,555	1,203

    10b. Earnings per share Nine months ended 30/09/2025 Nine months 30/09/2024

    Net profit attributable to shareholders (in thousands of BGN) 157,057 96,669 Average weighted number of ordinary shares held (in thousands) 149,085 149,085 Earnings per share (BGN) 1.05 0.65

    The basic earnings per share, calculated in accordance with IAS 33, are based on the profit attributable to ordinary equity holders of the Group. In 2025, as in the previous year, no convertible or option rights on the Bank's common shares were issued. The diluted earnings per share, therefore, correspond to the basic earnings per share.

11. Cash and balances with Central Banks

    in thousands of BGN	30.09.2025	31.12.2024
    Cash on hand
    - in BGN	236,117	249,827
    in foreign currency	123,172	115,494
    Balances with Central Banks	2,027,524	2,222,970
    Current accounts and amounts with local banks	-	-
    Current accounts and amounts with foreign banks	307,633	226,072
    Total	2,694,446	2,814,363

12. Investments in securities

    in BGN '000 30.09.2025 31.12.2024

    Bonds and notes issued by: Bulgarian Government

    - denominated in BGN	490,087	482,511
    - denominated in foreign currencies	246,281	138,225
    Foreign governments	2,355,497	2,461,152
    Corporates	120,582	205,588
    Banks	121,556	105,344
    Other issuers - equity instruments	48,531	48,293
    Total	3,382,534	3,441,113
    Of which financial assets:
    at fair value through other comprehensive income	2,418,726	2,347,176
    at amortised cost	789,605	883,256
    at fair value through profit and loss	174,203	210,681
    Total	3,382,534	3,441,113

13. Loans and advances to banks and other financial institutions

    (a) Analysis by type
    in thousands of BGN	30.09.2025	31.12.2024
    Placements with banks	83,372	133,357
    Receivables under resale agreements	326	-
    Other	249,686	231,660
    Total	333,384	365,017

    (b) Geographical analysis

    in BGN '000	30.09.2025	31.12.2024
    Domestic banks and financial institutions	47,545	83,772

    Foreign banks and other financial institutions 285,839 281,245

    Total. 333,384 365,017
14. Loans and advances to customers

    in thousands of BGN	Gross value	Allowance for impairment	30/09/2025 Amortised cost
    Large enterprises	3,008,144	(70,477)	2,937,667
    Small and medium enterprises	2,780,921	(262,589)	2,518,332
    Micro enterprise	327,539	(4,899)	322,640
    Retail Banking
    Consumer loans	1,731,991	(62,118)	1,669,873
    Mortgage loans	2,023,706	(5,302)	2,018,404
    Credit cards	143,918	(9,692)	134,226
    Total	10,016,219	(415,077)	9,601,142
    in BGN '000		Allowance for	31/12/2024
    	Gross value	impairment	Amortised cost
    Large enterprises	2,750,975	(65,205)	2,685,770
    Small and medium enterprises	2,591,528	(228,046)	2,363,482
    Micro enterprise	307,446	(10,238)	297,208
    Retail Banking
    Consumer loans	1,400,709	(38,680)	1,362,029
    Mortgage loans	1,714,620	(7,245)	1,707,375
    Credit cards	134,166	(7,298)	126,868
    Total	8,899,444	(356,712)	8,542,732

    The distribution of the loan portfolio is reported according to the Bank's business segments

    (а) Movement in impairment allowances

    in thousands of BGN Balance as at 31/12/2024	357,608
    Additional allowances	180,847
    Amounts released	(62,201)
    Write-offs	(59,332)
    Recovered against impairment	-
    Other	(948)
    Balance as at 30/09/2025	415,974

    Distribution of trade receivables and impairment as adjustment for financial assets (receivables from customers) according to the requirements of IFRS9:

    30/09/2025 31/12/2024 Gross

    in thousands of BGN

    amount of loans and advances to customers Allowance for impairment Gross amount of loans and advances to customers Allowance for impairment

    Exposures without increase of credit risk

    after the initial recognition (phase 1) 7,921,328 (17,559) 6,571,482 (14,175)

    Exposures with significant increase of credit risk after the initial recognition

    (phase 2) 1,210,470 (69,260) 1,207,454 (63,187)

    Non-performing (impaired) exposures

    (phase 3) 884,421 (328,258) 1,120,507 (279,350)

    Total 10,016,219 (415,077) 8,899,443 (356,712)

    30/09/2025 in thousands of BGN

    Class of exposure

    Performing

    Gross amount of loans and advances to customers Allowance for impairment Carrying amount of loans and advances to customers

    Collectively impaired 9,131,798 (86,819) 9,044,979 Non-performing

    Collectively impaired	226,778	(68,634)	158,144
    Individually impaired	657,643	(259,624)	398,019
    Total	10,016,219	(415,077)	9,601,142

    31/12/2024 in thousands of BGN

    Class of exposure

    Performing

    Gross amount of loans and advances to customers Allowance for impairment Carrying amount of loans and advances to customers

    Collectively impaired 7,778,936 (77,362) 7,701,574 Non-performing

    Collectively impaired	214,418	(47,446)	166,972
    Individually impaired	906,089	(231,904)	674,185
    Total	8,899,443	(356,712)	8,542,731

    As at 30/09/2025 the gross amount of overdue loans and advances to customers measured as exposures 90+ days overdue is BGN 497,536 thousand (31/12/2024: BGN 512,789 thousand).

15. Property and equipment

    	Land and Buildings	Fixtures and fittings	• Moto r vehicles	Assets under Construction	Leasehold Improvements	Total
    in thousands of BGN
    Carrying value
    As at 01 January 2025	202,827	157,556	10,164	51,384	53,822	475,753
    Additions	10,335	62	-	19,807	-	30,204
    Exchange rate differences	-	155	9	7	97	268
    Write-offs	-	(4,576)	(798)	-	(1,865)	(7,239)
    Transfers	4,991	37,838	212	(47,938)	386	(4,511)
    At 30 September 2025	218,153	191,035	9,587	23,260	52,440	494,475
    Amortisation
    As at 01 January 2025	8,419	116,372	6,604	-	35,698	167,093
    Exchange rate differences	-	107	5	-	39	151
    Accrued during the period	2,347	10,309	640	-	1,615	14,911
    For the written-off	-	(4,540)	(798)	-	(1,246)	(6,584)
    As at 30 September 2025	10,766	122,248	6,451	-	36,106	175,571
    Carrying amount
    As at 01 January 2025	194,408	41,184	3,560	51,384	18,124	308,660
    As at 30 September 2025	207,387	68,787	3,136	23,260	16,334	318,904

16. Intangible assets

Machines, plant and vehicles 11,980 9,928

Fixtures and fittings 807 816

Repossessed assets acquired as collateral are measured at the lower of cost and net realisable value. The net realizable value of the lands and buildings is approximately equal to their fair value.

in thousands of BGN

1. Other assets

   in BGN '000	30.09.2025	31.12.2024
   Deferred expense	36,372	16,925
   Gold	5,736	4,673
   Investments in non-consolidated subsidiaries	8,344	8,344
   Other assets	54,140	101,813
   Total	104,592	131,755

2. Due to banks

   in BGN '000	30.09.2025	31.12.2024
   Term deposits	-	12,193
   Current accounts	1,837	2,817
   Total	1,837	15,010

3. Due to other customers

   in BGN '000	30.09.2025	31.12.2024
   Retail customers current accounts	4,895,248	4,343,903
   Term and saving deposits	5,204,857	4,981,382
   Businesses and public institutions current accounts	3,630,146	4,038,624
   Term deposits	491,004	595,191
   Total	14,221,255	13,959,100

4. Other borrowed funds