Zagrebacka Banka DdZSE: ZABA

Zagrebačka banka audited financial results for 31.12.2024.

Feb 18, 2025 at 6:40 AM UTC · Issued by Zagrebacka Banka Dd

Audited financial statements of

Zagrebačka banka dd

for the period from 1 January to 31 December 2024

Content:

Management report for the period from 1 January to 31 December 2024

Statement of the persons responsible for the preparation of the financial statements

III. Financial statements (GFI-KI statements)

General data as at 31 December 2024
Balance sheet as at 31 December 2024
Income statement for the period from 1 January to 31 December 2024
Cash flow statement for the period from 1 January to 31 December 2024
Statement of changes in equity for the period from 31 December 2023 to 31 December 2024
Notes to the financial statements

Management report for the period from 1 January to 31 December 2024

In 2024 Zagrebačka banka dd realised profit after tax of EUR 450 million, at the same level as in 2023.

We achieved excellent results and confirmed quality and sustainable growth in key business segments and a leading position on the market. Our operating income increased, while costs demonstrate operational excellence. Capital and liquidity positions are strong, credit portfolio is resilient with sound coverage levels.

We are strongly connected with our community, providing support to the economy and the society in which we operate. We are doing this by financing most loans in the market, by investing in optimal user experiences as well as in the security of our solutions, by maintaining the robust payment infrastructure and offering the wide scale of services to companies and citizens.

We are transforming our culture, working on simplification and digitalization of our organization and processes to assure sustainability. We continue to progress on our ESG ambition and are committed to activities that have an overall positive impact considering environmental, social and governance factors.

We are striving to be the best employer possible, by supporting our employees through work-life balance and wellbeing initiatives.

Key performance indicators:

Operating income: EUR 809 million
Operating expenses: EUR 247 million
Profit before impairment and other provisions: EUR 557 million
Impairment and other provisions: EUR 13 million
Loans and advances to customers: EUR 10,926 million
Deposits from customers: EUR 17,415 million

Management report for the period from 1 January to 31 December 2024 (continued)

Operating income amounted to EUR 809 million, increased by EUR 22 million (+2.8%) Y/Y:

Net interest income amounted to EUR 588 million, increased by EUR 11 million (+1.9%) Y/Y.
Net fee and commission income amounted to EUR 174 million, increased by EUR 8 million (+4.8%) Y/Y.
Net trading and other income and expenses amounted to EUR 47 million, increased by EUR 3 million (+6.8%).

Operating expenses at EUR 247 million, higher by EUR 12 million (+5.1%). Cost to income ratio equals to 30.53%.

Profit before impairment and other provisions amounted to EUR 557 million, higher by EUR 13 million (+2.4%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions amounted to EUR 13 million, increased by EUR 14 million.

Total assets of the Bank amounted to EUR 21,171 million, higher by EUR 798 million (+3.9%) BoY.

Net loans and advances to customers amounted to EUR 10,926 million, increased by EUR 641 million (+6.2%) due to increase in retail lending.
Deposits from customers represent primary source of funding. They amounted to EUR 17,415 million, higher by EUR 420 million (+2.5%) BoY mainly in retail deposits.
Deposits from credit institutions at EUR 135 million, lower by EUR 70 million (-34.1%) BoY.

Management report for the period from 1 January to 31 December 2024 (continued)

Financial results for the period from 1 January to 31 December 2024

Zagrebačka banka dd			Δ 2024 vs 2023
Income statement (EURm)	2024	2023	EUR m	%
	1	2	3 (1-2)	4 (3/2)
Interest income	791	685	106	15.5 %
Interest expense	(203)	(108)	(95)	88.0 %
Net interest income	588	577	11	1.9 %
Fee and commission income	222	206	16	7.8 %
Fee and commission expense	(48)	(40)	(8)	20.0 %
Net fee and commission income	174	166	8	4.8 %
Net trading and other income and expenses	47	44	3	6.8 %

Operating income	809	787	22	2.8 %
Operating expenses	(247)	(235)	(12)	5.1 %
Cash contributions to resolution funds and	(5)	(8)	3	(37.5 %)
deposit guarantee schemes

Profit before impairment and other provisions	557	544	13	2.4 %

Impairment and other provisions	(13)	1	(14)	(1,400.0 %)
Share of the profit or (-) loss of investments in
subsidiaries, joint ventures and associates	3	(2)	5	(250.0 %)
accounted for using the equity method
Profit before tax	547	543	4	0.7 %
Income tax	(97)	(93)	(4)	4.3 %
Net profit	450	450	0	0.0 %

Management report for the period from 1 January to 31 December 2024 (continued)

Financial results for the period from 1 January to 31 December 2024 (continued)

	Zagrebačka banka dd					Δ 2024 vs. 2023
	Balance sheet (EURm)	31 Dec 2024		31 Dec 2023		EURm		%
		1		2		3 (1-2)		4 (3/2)
Cash, cash balances at central banks	4,124		5,478		(1,354)		(24,7 %)
and other demand deposits

Financial assets at fair value through	146		210		(64)		(30,5 %)
profit or loss

Fair value changes of the hedged
items in portfolio hedge of interest	19		3		16		533,3 %
rate risk
Non-trading financial assets
mandatorily at fair value through	7		8		(1)		(12,5 %)
profit or loss
Financial assets at fair value through	826		749		77		10,3 %
other comprehensive income

Financial assets at amortised cost:	15,464		13,342		2,122		15,9 %

	Debt securities	1,573		1,460		113		7,7 %
	Loans and advances to credit	2,965		1,597		1,368		85,7 %
	institutions

	Loans and advances to customers	10,926		10,285		641		6,2 %
Tangible and intangible assets	195		188		7		3,7 %
Investments in subsidiaries, joint	266		284		(18)		(6,3 %)
ventures and associates

Other assets	124		111		13		11,7 %

Total assets	21,171		20,373		798		3,9 %

Financial liabilities held for trading	198		248		(50)		(20,2 %)

Fair value changes of the hedged
items in portfolio hedge of interest	7		(16)		23		(143,8 %)
rate risk
Financial liabilities measured at	18,197		17,401		796		4,6 %
amortised cost:

	Debt securities issued	594		151		443		293,4 %

	Deposits from credit institutions	135		205		(70)		(34,1 %)

	Deposits from customers	17,415		16,995		420		2,5 %

	Other financial liabilities	53		50		3		6,0 %
Provisions for risks and charges	219		213		6		2,8 %

Other liabilities	201		199		2		1,0 %

Total liabilities	18,822		18,045		777		4,3 %

Equity	2,349		2,328		21		0,9 %
Total equity and liabilities	21,171		20,373		798		3,9 %


	Rating					31 December 2024
Fitch Ratings Ltd,	Long Term Issuer Default Rating	BBB+
		Short Term Rating			F2
		Viability			bbb
		Shareholder Support			bbb+
		Outlook			Positive

Zagreb, 18 February 2025

Management report for the period from 1 January to 31 December 2024 (continued)

Significant events and transactions

Geopolitical tensions and market uncertainties

At the end of 2024, the Bank's assets were not significantly directly impacted by the geopolitical tensions. Our operations remain indirectly affected, as the overall macro-economic scenario evolves.

The market environment continues to be uncertain.

The impacts of uncertainties continue to evolve as of the date of this report. As such, it is fluctuant as to the full magnitude that they will have on the macro-economic scenario and consequentially on the Bank's future financial condition and results of operations.

The Bank continues to support our clients, while it adequately assesses their creditworthiness, carefully considering the risk classification as well as the related impact on financial reporting.

While having a strong capital and liquidity position, as well as the assets covered by prudent loan provisions, the Bank is actively monitoring the situation and assessing its impact on operations, financial performance, capital position and cash-flows.

Dalibor Ćubela

Chief Executive Officer,

Chairman of the Management Board

Jasna Mandac