Zagrebacka Banka DdZSE: ZABA

Zagrebačka banka group 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 Group

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

Zagrebačka banka Group realised profit after tax of EUR 556 million in 2024. This is EUR 47 million (+9.2%) higher than 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.

Major contributors to Group result are Zagrebačka banka dd, UniCredit Bank dd Mostar and UniCredit Leasing Croatia doo.

Key performance indicators:

Operating income: EUR 1,040 million
Operating expenses: EUR 352 million
Profit before impairment and other provisions: EUR 675 million
Impairment and other provisions: EUR 15 million
Loans and advances to customers: EUR 13,669 million
Deposits from customers: EUR 20,746 million

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

Operating income amounted to EUR 1,040 million, increased by EUR 81 million (+8.4%) Y/Y:

Net interest income amounted to EUR 724 million, the increase was EUR 36 million (+5.2%) Y/Y.
Net fee and commission income amounted to EUR 234 million, increased by EUR 17 million (+7.8%) Y/Y.
Net trading and other income and expenses amounted to EUR 82 million, increased by EUR 28 million (+51.9%) Y/Y.

Operating expenses - at EUR 352 million, higher by EUR 19 million (+5.7%). Cost to income ratio equals to 33.85%.

Profit before impairment and other provisions amounted to EUR 675 million, higher by EUR 64 million (+10.5%) Y/Y, as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions were EUR 15 million, increased by EUR 14 million.

Total assets of the Group amounted to EUR 25,947 million, higher by EUR 1,355 million (+5.5%) BoY.

Net loans and advances to customers amounted to EUR 13,669 million, increased by EUR 1 billion (+8.1%) in retail and corporate lending.
Deposits from customers represent primary source of funding, amounted to EUR 20,746 million. EUR 680 million (+3.4%) increase was realized mainly in retail.
Deposits from credit institutions at EUR 831 million, higher by EUR 165 million (+24.8%).

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 Group					Δ 2024 vs 2023
Income statement (EURm)	2024		2023		EURm		%
	1		2		3 (1-2)		4 (3/2)
Interest income	955	813		142		17.5 %
Interest expense	(231)		(125)		(106)		84.8 %
Net interest income	724	688		36		5.2 %
Fee and commission income	284	259		25		9.7 %
Fee and commission expense	(50)		(42)		(8)		19.0 %
Net fee and commission income	234	217		17		7.8 %
Net trading and other income and expenses	82	54		28		51.9 %
Operating income	1,040	959		81		8.4 %
Operating expenses	(352)		(333)		(19)		5.7 %
Cash contributions to resolution funds and	(13)		(15)		2		(13.3 %)
deposit guarantee schemes

Profit before impairment and other provisions	675	611		64		10.5 %
Impairment and other provisions	(15)		(1)		(14)		1,400.0 %
Profit from operations	660	610		50		8.2 %
Share of profit from associates	6	4		2		50.0 %
Profit before tax	666	614		52		8.5 %
Income tax	(110)		(105)		(5)		4.8 %
Net profit	556	509		47		9.2 %
Attributable to equity holders of the Bank	555	508		47		9.3 %
Attributable to non-controlling interests	1	1		0		0 %
Net profit	556	509		47		9.2 %

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 Group			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 and other	4,878	6,202	(1,324)	(21.3 %)
demand deposits

Financial assets at fair value through profit or loss	149	214	(65)	(30.4 %)
Fair value changes of the hedged items in portfolio	19	3	16	533.3 %
hedge of interest rate risk

Non-trading financial assets mandatorily at fair	123	92	31	33.2 %
value through profit or loss

Financial assets at fair value through other	1,063	1,005	58	5.8 %
comprehensive income

Financial assets at amortised cost:	19,095	16,506	2,589	15.7 %
Debt securities	1,917	1,718	199	11.6 %
Loans and advances to credit institutions	3,509	2,140	1,369	64.0 %
Loans and advances to customers	13,669	12,648	1,021	8.1 %
Tangible and intangible assets	415	371	44	11.9 %
Investments in subsidiaries. joint ventures and	17	18	(1)	(5.6 %)
associates

Other assets	188	181	7	3.9 %
Total assets	25,947	24,592	1,355	5.5 %
Financial liabilities held for trading	333	429	(96)	(22.4 %)
Fair value changes of the hedged items in portfolio	7	(16)	23	(143.8 %)
hedge of interest rate risk

Financial liabilities measured at amortised cost:	22,242	20,954	1,288	6.1 %

Debt securities issued	594	151	443	293.4 %
Deposits from credit institutions	831	666	165	24.8 %
Deposits from customers	20,746	20,065	681	3.4 %
Other financial liabilities	71	72	(1)	(1.4 %)
Provisions for risks and charges	241	241	0	0.0 %
Other liabilities	304	303	1	0.3 %
Total liabilities	23,127	21,911	1,216	5.5 %
Equity	2,820	2,681	139	5.2 %
Total equity and liabilities	25,947	24,592	1,355	5.5 %

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 Group'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 Group's future financial condition and results of operations.

The Group 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 Group 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