30.10.2025: Individual (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

30 October 2025

Re: Individual (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 individual (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)

Nikola Bakalov Ralitsa Bogoeva

Chief Executive Officer Executive Director

Chairman of the MB Member of the MB

FIRST INVESTMENT BANK AD

unaudited

(signed) (signed)

Nikola Bakalov Ralitsa Bogoeva

Chief Executive Officer Executive Director

(signed)

Ianko Karakolev

Chief Financial Officer

(s igned) (s igned)

Nikola Bakalov Ralitsa Bogoeva

Chief Executive Officer Executive Director

(s igned)

Ianko Karakolev

Chief Financial Officer

FIRST INVESTMENT BANK AD

unaudited

in thousands of BGN

Issued share Share premium capital

Other reserves and retained earnings

Revaluation reserve of investments in

securities

Revaluation reserve on property

Statutory reserve Total

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.

      The Bank has foreign operations in Cyprus.

      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.

   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, 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.

      The current financial statements of the Bank are not consolidated. These individual financial statements form an integral part of the consolidated financial statements. Information on basic earnings per share is presented in the consolidated financial statements.

   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 Bank 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.

   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 Bank 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 Bank 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 Bank.

      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 of subsidiaries

      Investments in subsidiaries are stated at cost, minus the accrued impairment.

   3. Foreign currency transactions

      1. Functional and pres entation currency

         The financial statements are presented in Bulgarian leva, which is the Bank'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 functional currency of the foreign operations in Cyprus is determined by the management to be the Euro. In determining the functional currency of the foreign operations, the Bank takes into account the fact that they are carried out as an extension of the reporting entity.

   4. Financial assets

      1. Recognition

         The Bank recognizes a financial asset when it becomes a party to the contractual provisions of the instrument. The Bank 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 Bank 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 ass ets at amortis ed cos t

         Debt instruments held within the Bank'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 Bank'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 Bank 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 Bank 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. Reclas s ification

         If the Bank 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 Bank 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 Bank 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 Bank 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 Bank 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 Bank 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 Bank holds a significant part of the issue. In case of a significant predominance of the 'hold to collect' business model, the Bank 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 Bank 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 Bank 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 Bank has access at that date. The fair value of a liability reflects its non-performance risk.

         When applicable, the Bank 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 Bank 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 Bank 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 Bank measures assets and long positions at a bid price and liabilities and short positions at an ask price. The Bank, which holds a group of financial assets and financial liabilities, is exposed to market risk and credit risk. If the Bank 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 Bank 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 Bank derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Bank 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 Bank is recognised as a separate asset or liability.

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

         The Bank 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 Bank 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 Bank 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 in debt instruments held by the Bank 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 Bank 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 Bank 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 Bank 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. Offsetting

      Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the Bank 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 Bank recognizes 12-month expected credit loss as loss allowance when there is no significant increase in the credit risk since the initial recognition of the financial asset. When there is a significant increase in credit risk since initial recognition, expected credit losses for the whole 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 3 - 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 Bank 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 Bank 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 reclassification of assets reported under IAS 16 Property and equipment into investment properties is carried out upon termination of the use of the relevant asset by the Bank. 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.

   14. Provisions

       A provision is recognised in the statement of financial position when the Bank 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.

       1. Acceptances

          An acceptance is created when the Bank agrees to pay, at a stipulated future date, a draft drawn on it for a specified amount. The Bank'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 Bank 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.

       2. Off-balance sheet commitments

          In the ordinary course of its business, the Bank enters into off-statement of financial position commitments such as guarantees and letters of credit. The Bank 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.

       3. 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.

       4. Critical accounting estimates and judgements in applying accounting policies

          The Bank 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.

          The actual results may differ from the Management's assumptions, estimates and judgements and in rare cases correspond fully to the preliminary result estimates.

          In preparing the present individual financial statements the Management's estimates in applying the Bank's accounting policies and the main sources of uncertainty of the approximate accounting valuations do not differ from those disclosed in the individual financial statement for the previous year.

          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, 15 - 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 Bank'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 20 - Lease contract term - in determining the lease contract term the Management takes into consideration all facts and circumstances that create economic incentives for exercising the option to extend the lease, or not to exercise the option to terminate the lease Extension options (or the periods after termination options) are included in the lease contract term only if it is reasonably certain that the lease contract has been extended (or has not been terminated).

          • Note 26 - in accordance with IAS 37 - Provisions, Contingent Liabilities and Contingent Assets and the internal rules for setting aside provisions for pending court cases the bank has recognised provisions for pending court cases. The Bank 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.

       5. Assessment of repossessed assets 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 Bank 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).

       6. Income taxes

          The Bank 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 Bank 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.

       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 Bank'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 Bank 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 Bank 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 Bank 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. Leases

       1. The Company as less ee

          For contracts concluded on or after 1 January 2019 the Bank 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 Bank 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 Bank 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 Bank has the right to direct the use of the identified asset throughout the period of use.

            The Bank 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 Bank as less ee

            On the commencement date of the lease contract the Bank 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 Bank, 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 Bank 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 Bank also reviews the right-of-use assets for impairment, where such indicators exist.

            On the commencement date of the lease contract the Bank 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 Bank 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 Bank 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 Bank is a party as a tenant, the Bank 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 Bank would exercise that option. With relation to this the Bank 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 Bank uses an interest rate consisting of the risk-free interest rate and a surcharge reflecting the credit risk related to the Bank 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 Bank 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 Bank's property rentals. They are used to increase the operative flexibility in the management of assets used in its operations.

       2. The company as les s or

       The portion of IFRS 16 which concerns the Bank as lessor no significant changes were found in comparison to the previous IAS 17. The Bank 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 Bank recognises as asset a receivable under the contract in an amount equal to the net investment in the lease. During the lease term the Bank 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 Bank recognises lease payments as revenue on a linear basis.

       As lessor, the Bank 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 Bank'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 Bank operates principally in Bulgaria, but also has operations in Cyprus.

   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 interbranch eliminations based on their geographical location.

   Nine months	Nine months	Nine months	Nine months	Nine months
   ended 30	ended 30	ended 30	ended 30	ended 30
   September	September	September	September	September
   2024	2025	2024	2025	2024

   in thousands of BGN Bulgarian operations Foreign operations Total

   Nine months ended 30 September 2025

   Interest income	374,889	335,911	13,215	19,095	388,104	355,006
   Interest expense	(61,205)	(39,209)	-	-	(61,205)	(39,209)
   Net interest income	313,684	296,702	13,215	19,095	326,899	315,797
   Net fee and commission income	160,288	147,594	11,836	8,329	172,124	155,923
   Fee and commission expense	(41,249)	(33,182)	(793)	(822)	(42,042)	(34,004)
   Net fee and commission income	119,039	114,412	11,043	7,507	130,082	121,919
   Net trading income	16,436	18,966	1,533	1,196	17,969	20,162
   Administrative expenses	(177,397)	(164,665)	(2,469)	(2,505)	(179,866)	(167,170)
   	30.09.2025	31.12.2024	30.09.2025	31.12.2024	30.09.2025	31.12.2024
   Assets	15,753,613	15,033,999	706,243	699,465	16,459,856	15,733,464
   Liabilities	13,868,865	13,466,177	852,605	661,870	14,721,470	14,128,047

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

   	Assets	Liabilities	Net interest income	Net fee and commission income	Net trading income	Other net operating income
   Large enterprises Small and medium	2,936,817	1,949,035	73,824	39,148	-	16
   enterprises	2,222,242	1,998,014	76,947	39,686	-	0
   Retail Banking	3,719,615	10,168,872	133,568	54,382	-	162
   Treasury	5,825,469	131,294	61,241	(635)	17,969	(83,712)
   Other	1,755,713	474,255	(18,681)	(2,499)	-	8,302
   Total	16,459,856	14,721,470	326,899	130,082	17,969	(75,232)

4. Financial assets and liabilities Accounting classification and fair values

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

   The Bank 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 Bank 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 Bank 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 Bank 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 Bank 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;

   • proposal of new models and changes to existing models is made by the Risk Management Department and approved by the 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 September 2025	Level 1	Level 2	Level 3	Total
   Financial assets at fair value through profit or loss	95,567	73,401	85	169,053
   Financial assets at fair value through other comprehensive income	2,112,019	20,741	-	2,132,760
   Derivatives held for risk management	-	-	-	-
   Total	2,207,586	94,142	85	2,301,813
   Financial liabilities at fair value through profit or loss.	-	-	-	-
   in BGN '000
   31 December 2024	Level 1	Level 2	Level 3	Total
   Financial assets at fair value through profit or loss	45,970	160,209	85	206,264
   Financial assets at fair value through other comprehensive income	2,139,460	19,571	-	2,159,031
   Derivatives held for risk management	1,732	1,288	-	3,020
   Total	2,187,162	181,068	85	2,368,315
   Financial liabilities at fair value through profit and 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

   in BGN '000

   30 September 2025 Assets	Level 1	Level 2	Level 3	Total fair values	Total balance sheet value
   Cash and balances with Central Banks	-	2,510,049	-	2,510,049	2,510,049
   Financial assets at amortised cost	586,419	-	-	586,419	632,367
   Loans and advances to banks and other financial institutions	-	381,240	-	381,240	381,240
   Loans and advances to customers	-	533,272	8,462,250	8,995,522	8,878,674
   Total	586,419	3,424,561	8,462,250	12,473,230	12,402,330
   Liabilities Due to banks	-	41,739	-	41,739	41,739
   Due to other customers	-	9,069,860	3,935,586	13,005,446	13,060,293
   Other borrowed funds	-	1,237,895	-	1,237,895	1,246,464
   Hybrid debt	-	261,482	-	261,482	261,482
   Total	-	10,610,976	3,935,586	14,546,562	14,609,978
   in BGN '000

   31 December 2024 Assets	Level 1	Level 2	Level 3	Total fair values	Total balance sheet value
   Cash and balances with Central Banks	-	2,666,996	-	2,666,996	2,666,996
   Financial assets at amortised cost	652,912	-	-	652,912	711,311
   Loans and advances to banks and other financial institutions	-	397,550	-	397,550	397,550
   Loans and advances to customers	-	825,142	7,167,803	7,992,945	7,917,260
   Total	652,912	3,889,688	7,167,803	11,710,403	11,693,117
   Liabilities
   Due to banks	-	52,510	-	52,510	52,510
   Due to other customers	-	9,083,502	3,827,208	12,910,710	12,986,192
   Other borrowed funds	-	715,607	-	715,607	722,384
   Hybrid debt	-	258,908	-	258,908	258,908
   Total	-	10,110,527	3,827,208	13,937,735	14,019,994

   The investments in securities reported in portfolios of financial assets at fair value in profit or loss, financial assets at fair value in other comprehensive income and financial assets at amortised cost are mostly investments in government securities from first-class issuers which are highly liquid and with the most favourable capital treatment.

   The bank manages its investments in debt securities in line with the current market expectations and dynamics. As at 30.09.2025 he modified portfolio duration is 2.6 years, while as at 31.12.2024 it was 2.1 years.

5. Net interest income

   in thousands of BGN	Nine months ended 30	nine months ended 30
   Interest income	September 2025	September 2024
   Accounts with and placements to banks and financial institutions	10,755	8,527
   Large enterprises	97,299	77,687
   Small and medium enterprises	84,070	86,392
   Microlending	8,813	7,926
   Retail Banking	134,113	116,685
   Debt instruments	53,031	57,789
   Other interest income	23	-
   Interest expense	388,104	355,006
   Deposits from banks	(401)	(63)
   Deposits from other customers	(6,398)	(1,736)
   Other borrowed funds	(35,686)	(18,673)
   Hybrid debt	(18,611)	(18,646)
   Interest on assets cost	-	(1)
   Interest expense on financial liabilities recognized in profit or loss	(21)	(14)
   Lease agreements and other	(88)	(76)
   	(61,205)	(39,209)
   Net interest income	326,899	315,797

6. Net fee and commission income

   	Nine months ended	nine months ended 30
   In thousands of BGN	30 September 2025	September 2024
   Net fee and commission income Letters of credit and guarantees	3,557	2,634
   Payment operations	26,365	24,652
   Customer accounts	30,488	29,295
   Card services	51,623	46,031
   Other	60,091	53,311
   Fee and commission expense	172,124	155,923
   Letters of credit and guarantees	(429)	(424)
   Payment systems	(3,823)	(3,854)
   Card services	(28,934)	(22,351)
   Other	(8,856)	(7,375)
   	(42,042)	(34,004)
   Net fee and commission income	130,082	121,919

7. Net trading income

   	Nine months	nine months
   	ended 30	ended 30
   in thousands of BGN	September 2025	September 2024
   Net trading income arises from
   Debt instruments	484	60
   Equities	218	1,401

   Foreign exchange rate fluctuations 17,267 18,701

   Net trading income 17,969 20,162
8. Other net operating income

   	Nine months ended	nine months ended 30
   in BGN '000	30 September 2025	September 2024
   Other net operating income arising from:
   -net income from transactions and revaluation of gold and precious metals	2,685	765
   Rental income	5,617	5,612
   Debt instruments	(86,190)	(59,170)
   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 (75,232) (50,613)
9. Administrative expenses

   	Nine months ended 30 September	nine months ended 30 September
   in thousands of BGN	2025	2024
   General and administrative expenses comprise:
   Personnel costs	84,110	72,885
   Amortization of equipment and tangible fixed assets	17,972	12,034
   Rights of use assets	13,582	23,619
   Advertising	4,652	6,162
   Telecommunication, software and other computer maintenance	14,568	12,798
   - Other expenses for external services	44,982	39,672
   Administrative expenses	179,866	167,170

10. Allowance for impairment

    	ended 30 September 2025	ended 30 September 2024
    Reversal of write-downs
    Loans and advances to customers	(174,054)	(213,833)
    Off-balance sheet commitments	(200)	(869)
    Write-downs
    Loans and advances to customers	47,289	72,789
    Off-balance sheet commitments	488	202
    Impairment, net	(126,477)	(141,711)

    in BGN '000 Nine months

    nine months 10a. Other (expenses)/income, net

    	Nine months ended 30	nine months ended 30
    in BGN '000	September 2025	September 2024
    Profit from the sale and write-off of assets acquired as collateral	4,270	3,896
    Revaluation of investment property	65,307	-
    Profit from sale and write-offs of investment property	876	4,648
    Dividend income	3,594	2,545
    Cost of guarantee schemes	(16,712)	(18,157)
    Income/(expense) for provisions for pending court cases
    Other (expenses)/income, net	(2,094)	(2,920)
    Total	55,241	(9,988)

11. Cash and balances with Central Banks

    in thousands of BGN	30.09.2025	31.12.2024
    Cash on hand - in BGN	236,113	249,825
    in foreign currency	89,160	91,181
    Balances with Central Banks	1,910,585	2,127,068
    Current accounts and amounts with foreign banks	274,191	198,922
    Total	2,510,049	2,666,996

12. Investments in securities in BGN '000 30.09.2025 31.12.2024

    - denominated in BGN	487,573	480,746
    - denominated in foreign currencies	243,644	135,574
    Foreign governments	1,912,294	2,101,061
    Corporates	120,582	205,588
    Banks	121,556	105,344
    Other issuers - equity instruments	48,531	48,293
    Total	2,934,180	3,076,606
    Of which:
    at fair value through other comprehensive income	2,132,760	2,159,031
    at amortised cost	632,367	711,311
    at fair value through profit and loss	169,053	206,264
    Total	2,934,180	3,076,606

    Bonds and notes issued by: Bulgarian Government

13. Loans and advances to banks and other financial institutions
    1. Analysis by type in thousands of BGN 30.09.2025 31.12.2024

       Placements with banks 132,574 167,215

       Receivables under resale agreements 326

       Other 248,340 230,335

       Total 381,240 397,550
    2. Geographical analysis in BGN '000 30.09.2025 31.12.2024

       Domestic banks and financial institutions 46,200 82,446

       Foreign banks and other financial institutions 335,040 315,104

       Total 381,240 397,550
14. Loans and advances to customers

    in thousands of BGN 30/09/2025

    Allowance for Gross value impairment Amortised cost

    Large enterprises 3,007,294 (70,477) 2,936,817

    Small and medium enterprises 2,475,178 (252,936) 2,222,242

    Microlending 253,519 (1,122) 252,397 Retail Banking

    Consumer loans 1,649,417 (58,083) 1,591,334

    Mortgage loans 1,750,246 (2,731) 1,747,515

    Credit cards 137,488 (9,119) 128,369 Other programmes and collateralised

    Total 9,273,142 (394,468) 8,878,674

    in BGN '000 31/12/2024

    Allowance for Gross value impairment Amortised cost

    Large enterprises 2,750,130 (65,205) 2,684,925

    Small and medium enterprises 2,317,467 (216,421) 2,101,046

    Microlending 233,807 (1,137) 232,670 Retail Banking

    Consumer loans 1,336,690 (35,421) 1,301,269

    Mortgage loans 1,478,828 (3,205) 1,475,623

    Credit cards 128,421 (6,694) 121,727 Other programmes and collateralised

    Total 8,245,343 (328,083) 7,917,260

    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 01 January 2025	328,083
    Additional allowances	174,054
    Amounts released	(47,289)
    Write-offs	(59,144)
    Other	(1,236)
    Total Balance as at 30 September 2025	394,468

    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 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) 7,249,617 (11,839) 5,993,449 (8,074)

    Exposures with significant increase of credit risk after the initial recognition

    (phase 2) 1,174,144 (66,520) 1,161,940 (55,197)

    Non-performing (impaired) exposures

    (phase 3) 849,381 (316,109) 1,089,954 (264,812)

    Total 9,273,142 (394,468) 8,245,343 (328,083) 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 8,423,761 (78,359) 8,345,402 Non-performing

    Collectively impaired	226,778	(68,634)	158,144
    Individually impaired	622,603	(247,475)	375,128
    Total	9,273,142	(394,468)	8,878,674
    31/12/2024	Gross amount of loans		in thousands of BGN Carrying amount of loans
    Class of exposure	and advances to customers	Allowance for impairment	and advances to customers
    Performing
    Collectively impaired	7,155,389	(63,271)	7,092,118
    Non-performing
    Collectively impaired	214,418	(47,446)	166,972
    Individually impaired	875,536	(217,366)	658,170
    Total	8,245,343	(328,083)	7,917,260

    As at 30 September 2025 the gross amount of overdue loans and advances to customers measured as exposures 90+ days overdue is BGN 462,495 thousand (31 December 2024: BGN 482,238 thousand).

    For comparability with the official EBA definition of the ratio measuring NPLs and advances (NPL ratio), the Bank discloses the gross balance sheet value of the supervisory category Loans and advances as at 30 September 2025 in the amount BGN 11,839,159 thousand. (31 December 2024: BGN 10,995,149 thousand).

15. Property and equipment

    in thousands of BGN Land and Buildings

    Fixtures and fittings
    • Motor
    vehicles Assets under Construction Leasehold Total Improvements As at 01 January 2025 202,827 146,150 9,516 50,909 46,798 456,200

    Additions 10,335 2 - 17194 - 27,531

    Disposals - -4,326 -798 - -1311 -6,435

    Transfers 4991 37,838 212 -47938 386 -4,511

    As at 30 September 2025 218,153 179,664 8,930 20,165 45,873 472,785 Amortisation As at 01 January 2025 8,419 109,016 6,360 - 33,045 156,840

    Accrued during the year 2,347 9,785 598 - 1,466 14,196

    On disposals - -4,324 -798 - -753 -5,875

    As at 30 September 2025 10,766 114,477 6,160 - 33,758 165,161 Carrying amount As at 01 January 2025 194,408 37,134 3,156 50,909 13,753 299,360 As at 30 September 2025 207,387 65,187 2,770 20,165 12,115 307,624
16. Intangible assets

    in thousands of BGN Software products and

    licenses Total As at 01 January 2025 68,619 68,619

    Additions -

    Disposals (2,363) (2,363)

    Transfers 4,511 4,511

    As at 30 September 2025 70,767 70,767 Amortisation As at 01 January 2025 44,823 44,823

    Accrued during the year 3,776 3,776

    On disposals (2,363) (2,363)

    As at 30 September 2025 46,236 46,236 Carrying amount As at 01 January 2025 23,796 23,796 As at 30 September 2025 24,531 24,531
17. Repossessed assets in thousands of BGN 30.09.2025 31.12.2024

    Land 202,788 204,875

    • Buildings 123,534 147,421

    Machines, plant and vehicles 11,980 9,928

    Fixtures and fittings 807 816

    Total 339,109 363,040

    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.

18. Investment Property

    in thousands of BGN

    Balance as at 01/01/2025 766,231

    Additions	6,749
    Increases from expenses incurred recognized in the asset's value
    Transferred from assets acquired as collateral IAS 2 and/or group 20 IAS 16.	23,608
    Revaluation of investment properties to fair value recognized upon transfer	65,307
    Write-offs upon sale	(3,249)
    Balance as at 30 September 2025	858,646

19. Investments in subsidiaries

    Investments in subsidiaries are as follows:

    in thousands of BGN				30.09.2025
    			Allowance for	Carrying
    Entity	% held	Acquisition cost	impairment	amount
    Finclub AD	96.51%	5,743		5,743
    First Investment Bank − Albania Sh.a.	100%	23,420		23,420
    Debita OOD	70%	105	(104)	1
    Fi Health Insurance AD	92%	8,815		8,815
    Creative Investment EOOD	100%
    Lega Solutions EOOD	100%
    AMC Imoti EOOD	100%
    MyFin EAD	100%	2,000		2,000
    Incasso Guarant EOOD	100%	100		100
    Total		40,183	(104)	40,079
    in thousands of BGN				31.12.2024
    			Allowance for	Carrying
    Entity	% held	Acquisition cost	impairment	amount
    Diners Club Bulgaria AD	96.51%	5,743	-	5,743
    First Investment Bank − Albania Sh.a.	100%	23,420	-	23,420
    Debita OOD	70%	105	(104)	1
    Fi Health Insurance AD	59.10%	3,315	-	3,315
    Creative Investment EOOD	100%	-	-	-
    Lega Solutions EOOD	100%	-	-	-
    AMC Imoti EOOD	100%	-	-	-
    MyFin EAD	100%	2,000	-	2,000
    Incasso Guarant EOOD	100%	100	-	100
    Total		34,683	(104)	34,579

    By resolution of the General Meeting of Shareholders of Diners Club Bulgaria AD of 9 February 2024 the company's name was changed to Finclub AD.

20. Rights of use assets

1. Other borrowed funds

   in BGN '000	30.09.2025	31.12.2024
   Liabilities under repurchase agreements with local banks	0
   Liabilities for received financing.	18,102	19,998
   Liabilities related to investment products	0
   Obligations under loan agreements	1,228,362	702,386
   Total	1,246,464	722,384

   Financing from financial institutions through extension of loan facilities can be analysed as follows:

   in BGN '000

   Lender	Amortised cost as at 30/09/2025
   European Investment Fund - JEREMIE 2	722
   Bulgarian Bank for Development AD	10,558
   Manager of financial instruments in Bulgaria fund	6,822
   Total	18,102
   in BGN '000
   Lender	Amortised cost as at 31/12/2024
   European Investment Fund - JEREMIE 2	542
   Bulgarian Bank for Development AD	10,869
   Manager of financial instruments in Bulgaria fund	8,587
   Total	19,998

2. Hybrid debt

in thousands of BGN

The bonds under the four instruments are registered, dematerialized, interest-bearing, perpetual, unsecured, freely transferable, non-convertible, deeply subordinated and without incentive to redeem.

The subscription for the public offering of shares of First Investment Bank AD was completed successfully on 3 July 2020. Out of the 40 000 000 ordinary dematerialized shares with nominal value of BGN 1, and issue value of BGN 5.00 each, a total of 39 084 800 shares were subscribed and paid up.

On 31 July 2020 First Investment Bank's capital increase was registered in the Commercial Register and Register of Non-for-profit Legal Entities. This registration was carried out after the subscription for shares was successfully completed on 03 July 2020 based on the prospectus confirmed by the Financial Supervision Commission.

Thus, the Bank's capital was increased to BGN 149 084 800 by issue of 39 084 800 new ordinary, registered, dematerialized shares, each with one voting right in the general meeting, with nominal value of BGN 1 and issue value of BGN 5. The amount of the capital after the increase was reflected in the By-Laws of First Investment Bank AD after approval granted by the Bulgarian National Bank.

The table below shows those shareholders of the Bank holding shares as at 30/09/2025 together with the number and percentage of total issued shares.

shares share capital

Type of related party Parties that control or manage the Bank