Zagrebačka banka Group unaudited financial results Q2 2025

1. Management report for the period from 1 January to 30 June 2025

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

3. Financial statements (TFI-KI statements)

   1. General data as at 30 June 2025

   2. Balance sheet as at 30 June 2025

   3. Income statement for the period from 1 January to 30 June 2025

   4. Cash flow statement for the period from 1 January to 30 June 2025

   5. Statement of changes in equity for the period from 31 December 2024 to 30 June 2025

   6. Notes to the financial statements

We have continued achieving good results. Operating income is stable, costs demonstrate operational excellence. Capital and liquidity positions are strong, credit portfolio is adequately covered by provisions.

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.

• Operating income: EUR 522 million
• Operating expenses: EUR 170 million
• Profit before impairment and other provisions: EUR 347 million
• Impairment and other provisions: EUR 15 million
• Loans and advances to customers: EUR 14,887 million
• Deposits from customers: EUR 21,243 million

1. Management report for the period from 1 January to 30 June 2025 (continued) Operating income amounted to EUR 522 million, increased by EUR 5 million (+1.0%) Y/Y:

   • Net interest income amounted to EUR 344 million, the decrease was EUR 18 million (-5.0%).

   • Net fee and commission income amounted to EUR 123 million, increased by EUR 8 million (+7.0%).

   • Net trading and other income and expenses amounted to EUR 55 million, increased by EUR 15 million (+37.5%).

     Operating expenses amounted to EUR 170 million, at the same level as in first half of 2024. Cost to income ratio equals to 32.57%. Profit before impairment and other provisions amounted to EUR 347 million, increased by EUR 4 million (+1.2%), as a result of the previously described movements in Operating income and Operating expenses. Impairment and other provisions write back amounted to EUR 15 million. Total assets of the Group amounted to EUR 27,292 million, higher by EUR 1,346 million (+5.2%) BoY.
     • Net loans and advances to customers amounted to EUR 14,887 million, increased by EUR 1,218 million (+8.9%) in retail and corporate lending.
     • Deposits from customers represent primary source of funding, amounted to EUR 21,243 million. EUR 497 million (+2.4%) increase was realized mainly in retail.
     • Deposits from credit institutions at EUR 1,421 million, higher by EUR 590 million (+71.0%).

Zagreb, 22 July 2025

Geopolitical tensions and market uncertainties

At the end of June 2025, 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.

Pursuant to the provisions of the Capital Market Act, to the best of our knowledge:

1. the set of financial statements of Zagrebačka banka Group, prepared in accordance with International Financial Reporting Standards (IFRS) as adopted in the European Union, gives a true and fair view of the assets and liabilities, profit and loss, financial position and business operations of Zagrebačka banka Group.

   
   
   
   
   
   

2. the Management Report includes a fair overview of the development and results of operations and of the position of Zagrebačka banka Group.

Public Relations

e-mail: PR@unicreditgroup.zaba.hr https://www.zaba.hr

1. General data as at 30 June 20251

   Annex 1

   ISSUER'S GENERAL DATA

   Reporting period:

   to

   Year:

   Quarter:

   Quarterly financial statements

   egistration number (MB):

   Issuer's home Member State code:

   Entity's registration number (MBS):

   Personal identification

   number (OIB):

   LEI:

   Institution

   code:

   Name of the issuer: Zagrebačka banka d.d.

   Postcode and town:

   Zagreb

   treet and house number: Trg bana Josipa Jelačića 10

   E-mail address: zaba@unicreditgroup.zaba.hr

   Web address: https://www.zaba.hr

   Number of employees (end of the reporting

   Consolidated report:

   (KN-not consolidated/KD-consolidated)

   Audited:

   (RN-not audited/RD-audited)

   Names of subsidiaries (according to IFRS):

   Registered office:

   MB:

   UniCredit Leasing Croatia d.o.o.

   Samoborska cesta 145, 10000 Zagreb 1329162

   UniCredit Bank d.d.

   Kardinala Stepinca bb, 88000 Mostar 7700822

   Allianz ZB d.o.o., Zagreb

   Heinzelova 70, 10000 Zagreb 1581864

   ZB eplus

   Samoborska cesta 145, 10000 Zagreb 1500937

   Bookkeeping firm:

   (Yes/No)

   (name of the bookkeeping firm)

   Contact person: Ferizović Antica

   (only name and surname of the contact person)

   Telephone:

   E-mail address: antica.ferizović@unicreditgroup.zaba.hr

   Audit firm: KPMG d.o.o.

   (name of the audit firm)

   Certified auditor:

   (name and surname)

   No

   RN

   KD

   4472

   10000

   307

   PRNXTNXHBI0TSY1V8P17

   92963223473

   80000014

   HR

   3234495

   2

   2025

   30.6.2025

   1.1.2025

   
   
   

   ‌1 Average number of employees in head office and branch network of Zagrebačka banka dd in 1H 2025 amounts to 4,459.

2. Balance sheet as at 30 June 2025

   in EUR
   Submitter: Zagrebačka banka d.d.
   Item 1	ADP code	Last day of the preceding business year	Current period
   	2	3	4
   Assets
   Cash, cash balances at central banks and other demand deposits (from 2 to 4)	001	4,877,694,428	4,116,361,356
   Cash in hand	002	640,701,611	622,687,866
   Cash balances at central banks	003	3,934,055,331	3,224,947,624
   Other demand deposits	004	302,937,486	268,725,866
   Financial assets held for trading (from 6 to 9)	005	50,323,229	53,643,970
   Derivatives	006	49,617,381	48,288,083
   Equity instruments	007	705,848	381,037
   Debt securities	008	0	4,974,850
   Loans and advances	009	0	0
   Non-trading financial assets mandatorily at fair value through profit or loss (from 11 to 13)	010	122,517,237	147,726,347
   Equity instruments	011	8,014,627	10,831,518
   Debt securities	012	114,502,610	136,894,829
   Loans and advances	013	0	0
   Financial assets at fair value through profit or loss (15 + 16)	014	0	0
   Debt securities	015	0	0
   Loans and advances	016	0	0
   Financial assets at fair value through other comprehensive income (from 18 to 20)	017	1,062,778,541	1,731,834,375
   Equity instruments	018	679,296	812,190
   Debt securities	019	1,062,099,245	1,731,022,185
   Loans and advances	020	0	0
   Financial assets at amortised cost (22 + 23)	021	19,095,154,147	20,486,872,825
   Debt securities	022	1,917,190,310	2,456,892,441
   Loans and advances	023	17,177,963,837	18,029,980,384
   Derivatives - hedge accounting	024	98,962,299	123,866,565
   Fair value changes of the hedged items in portfolio hedge of interest rate risk	025	18,748,406	-2,700,498
   Investments in subsidiaries, joint ventures and associates	026	17,380,880	13,484,191
   Tangible assets	027	355,595,861	398,244,932
   Intangible assets	028	59,400,641	56,885,717
   Tax assets	029	70,403,987	62,604,604
   Other assets	030	117,625,188	103,101,962
   Fixed assets and disposal groups classified as held for sale	031	0	426,000
   Total assets (1 + 5 + 10 + 14 + 17 + 21 + from 24 to 31)	032	25,946,584,844	27,292,352,346
   Liabilities
   Financial liabilities held for trading (from 34 to 38)	033	47,414,005	43,756,236
   Derivatives	034	47,414,005	43,756,236
   Short positions	035	0	0
   Deposits	036	0	0
   Debt securities issued	037	0	0
   Other financial liabilities	038	0	0
   Financial liabilities at fair value through profit or loss (from 40 to 42)	039	125,582,615	134,379,652
   Deposits	040	0	0
   Debt securities issued	041	0	0
   Other financial liabilities	042	125,582,615	134,379,652
   Financial liabilities measured at amortised cost (from 44 to 46)	043	22,242,219,824	23,758,030,005
   Deposits	044	21,576,765,195	22,664,566,263
   Debt securities issued	045	594,488,057	1,015,785,126
   Other financial liabilities	046	70,966,572	77,678,616
   Derivatives - hedge accounting	047	158,832,762	141,833,212
   Fair value changes of the hedged items in portfolio hedge of interest rate risk	048	7,317,606	-47,230
   Provisions	049	240,960,295	208,335,366
   Tax liabilities	050	17,593,208	13,736,941
   Share capital repayable on demand	051	0	0
   Other liabilities	052	286,574,660	303,287,579
   Liabilities included in disposal groups classified as held for sale	053	0	0
   Total liabilities (33 + 39 + 43 + from 47 to 53)	054	23,126,494,975	24,603,311,761
   Equity
   Capital	055	850,068,233	850,068,233
   Share premium	056	465,253,748	465,431,476
   Equity instruments issued other than capital	057	0	0
   Other equity	058	1,996,305	1,137,735
   Accumulated other comprehensive income	059	-9,685,310	3,333,839
   Retained profit	060	892,447,355	999,086,333
   Revaluation reserves	061	0	0
   Other reserves	062	61,175,022	61,175,022
   ( - ) Treasury shares	063	-268,443	-275,100
   Profit or loss attributable to owners of the parent	064	555,106,299	304,690,182
   (--) Interim dividends	065	0	0
   Minority interests [non-controlling interests]	066	3,996,660	4,392,865
   Total equity (from 55 to 66)	067	2,820,089,869	2,689,040,585
   Total equity and liabilities (54 + 67)	068	25,946,584,844	27,292,352,346

3. Income statement for the period from 1 January to 30 June 2025

   in EUR
   Submitter: Zagrebačka banka d.d.
   Item	ADP code	Same period of the previous year		Current period
   		Cumulative	Quarter	Cumulative	Quarter
   1	2	3	4	5	6
   Interest income	001	476,032,308	238,626,035	442,488,723	218,014,131
   (Interest expenses)	002	114,252,495	57,794,742	97,750,299	46,490,296
   (Expenses on share capital repayable on demand)	003	0	0	0	0
   Dividend income	004	1,146,507	21,267	3,399,921	716,022
   Fees and commissions income	005	134,929,675	68,612,101	148,721,577	75,532,229
   (Fees and commissions expenses)	006	20,309,965	10,882,484	25,929,884	14,530,486
   Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	007	0	0	99	99
   Gains or (-) losses on financial assets and liabilities held for trading, net	008	5,131,437	7,280,868	-8,146,390	-5,462,766
   Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss, net	009	-789,867	-811,079	-174,103	-231,945
   Gains or (-) losses on derecognition of financial assets and liabilities at fair value through profit or loss, net	010	0	0	0	0
   Gains or (-) losses from hedge accounting, net	011	116,775	64,011	246,464	-80,792
   Exchange rate differences [gain or (-) loss], net	012	6,263,009	-1,843,316	21,107,069	12,112,914
   Gains or (-) losses on derecognition of of investments in subsidiaries, joint ventures and associates, net	013	0	0	-456,300	-456,300
   Gains or (-) losses on derecognition of non-financial assets, net	014	596,819	338,286	513,107	237,008
   Other operating income	015	35,718,447	26,337,745	42,268,916	22,447,993
   (Other operating expenses)	016	8,072,022	6,292,203	4,027,588	2,054,971
   Total operating income, net (1 - 2 - 3 + 4 + 5 - 6 + from 7 to 15 - 16)	017	516,510,628	263,656,489	522,261,312	259,752,840
   (Administrative expenses)	018	140,748,915	73,227,075	139,161,937	68,697,337
   (Cash contributions to resolution boards and deposit guarantee schemes)	019	4,187,180	2,095,394	4,489,506	2,265,884
   (Depreciation)	020	29,291,188	14,591,885	30,782,361	15,978,115
   Modification gains or (-) losses, net	021	0	0	0	0
   (Provisions or (-) reversal of provisions)	022	-7,494,266	-8,201,626	-18,072,597	-15,551,655
   (Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss)	023	-13,282,295	2,418,551	3,633,043	5,140,290
   (Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates)	024	343,021	342,126	8	0
   (Impairment or (-) reversal of impairment on non-financial assets)	025	-340,670	95,338	-238,583	-292,072
   Negative goodwill recognised in profit or loss	026	0	0	0	0
   Share of the profit or (-) losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method	027	2,548,948	1,393,556	2,877,282	1,503,034
   Profit or (-) loss from fixed assets and disposal groups classified as held for sale not qualifying as discontinued operations	028	0	0	0	0
   Profit or (-) loss before tax from continuing operations (17 - 18 to 20 + 21 - from 22 to 25 + from 26 to 28)	029	365,606,503	180,481,302	365,382,919	185,017,975
   (Tax expense or (-) income related to profit or loss from continuing operations)	030	61,006,394	30,150,240	60,321,071	30,613,379
   Profit or (-) loss after tax from continuing operations (29 - 30)	031	304,600,109	150,331,062	305,061,848	154,404,596
   Profit or (-) loss after tax from discontinued operations (33 - 34)	032	0	0	0	0
   Profit or (-) loss before tax from discontinued operations	033	0	0	0	0
   (Tax expense or (-) income related to discontinued operations)	034	0	0	0	0
   Profit or ( - ) loss for the year (31 + 32; 36 + 37)	035	304,600,109	150,331,062	305,061,848	154,404,596
   Attributable to minority interest [non-controlling interests]	036	359,272	170,625	371,665	210,402
   Attributable to owners of the parent	037	304,240,837	150,160,437	304,690,183	154,194,194
   STATEMENT OF OTHER COMPREHENSIVE INCOME
   Income or (-) loss for the current year	038	304,600,109	150,331,062	305,061,848	154,404,596
   Other comprehensive income (40+ 52)	039	-3,321,262	-1,763,960	13,062,373	14,064,121
   Items that will not be reclassified to profit or loss (from 41 to 47 + 50 + 51)	040	878,828	926,481	693,569	759,622
   Tangible assets	041	999,201	1,050,952	732,243	808,149
   Intangible assets	042	0	0	0	0
   Actuarial gains or (-) losses on defined benefit pension plans	043	0	0	0	0
   Fixed assets and disposal groups classified as held for sale	044	0	0	0	0
   Share of other recognised income and expense of entities accounted for using the equity method	045	0	0	0	0
   Fair value changes of equity instruments measured at fair value through other comprehensive income	046	18,284	23,606	102,965	99,631
   Gains or (-) losses from hedge accounting of equity instruments at	047	0	0	0	0
   Fair value changes of equity instruments measured at fair value	048	0	0	0	0
   Fair value changes of equity instruments measured at fair value	049	0	0	0	0
   Fair value changes of financial liabilities measured at fair value through profit or loss attributable to changes in their credit risk	050	0	0	0	0
   Income tax relating to items that will not be reclassified	051	-138,657	-148,077	-141,639	-148,158
   Items that may be reclassified to profit or loss (from 53 to 60)	052	-4,200,090	-2,690,441	12,368,804	13,304,499
   Hedge of net investments in foreign operations [effective portion]	053	0	0	0	0
   Foreign currency translation	054	0	0	0	0
   Cash flow hedges [effective portion]	055	0	0	0	0
   Hedging instruments [not designated elements]	056	-9,088,502	-5,583,013	2,009,386	4,626,152
   Debt instruments at fair value through other comprehensive income	057	3,818,471	2,403,572	12,803,037	11,499,931
   Fixed assets and disposal groups classified as held for sale	058	0	0	0	0
   Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates	059	0	0	0	0
   Income tax relating to items that may be reclassified to profit or (-) loss	060	1,069,941	489,000	-2,443,619	-2,821,584
   Total comprehensive income for the current year (38 + 39; 62 + 63)	061	301,278,847	148,567,102	318,124,221	168,468,717
   Attributable to minority interest [non-controlling interest]	062	398,967	192,217	391,224	240,598
   Attributable to owners of the parent	063	300,879,880	148,374,885	317,732,997	168,228,118

4. Cash flow statement for the period from 1 January to 30 June 2025

   in EUR
   Submitter: Zagrebačka banka d.d.
   Item	ADP code	Same period of the previous year	At the reporting date of the current period
   1	2	3	4
   Operating activities - direct method
   Interest received and similar receipts	001	0	0
   Fees and commissions received	002	0	0
   (Interest paid and similar expenditures)	003	0	0
   (Fees and commissions paid)	004	0	0
   (Operating expenses paid)	005	0	0
   Net gains/losses from financial instruments at fair value through statement of profit or loss	006	0	0
   Other receipts	007	0	0
   (Other expenditures)	008	0	0
   Operating activities - indirect method
   Profit/(loss) before tax	009	365,606,503	365,382,919
   Adjustments:		0	0
   Impairment and provisions	010	-21,117,231	-14,678,137
   Depreciation	011	29,291,188	30,782,361
   Net unrealised (gains)/losses on financial assets and liabilities at fair value through statement of profit or loss	012	3,642,710	-2,058,618
   (Profit)/loss from the sale of tangible assets	013	35,965,757	-513,107
   Other non-cash items	014	-346,577,019	-335,714,861
   Changes in assets and liabilities from operating activities
   Deposits with the Croatian National Bank	015	-720,758,100	1,162,276,913
   Deposits with financial institutions and loans to financial institutions	016	-258,845,325	-807,372,256
   Loans and advances to other clients	017	-733,484,546	-1,220,430,547
   Securities and other financial instruments at fair value through other comprehensive income	018	29,970,046	-643,396,443
   Securities and other financial instruments held for trading	019	-130,349	-4,651,431
   Securities and other financial instruments at fair value through statement of profit or loss, not traded	020	-43,140,470	-4,055,784
   Securities and other financial instruments mandatorily at fair value through statement of profit or loss	021	0	-21,137,854
   Securities and other financial instruments at amortised cost	022	101,801,469	-551,499,257
   Other assets from operating activities	023	-7,776,220	11,631,290
   Deposits from financial institutions	024	-19,057,780	34,203,468
   Transaction accounts of other clients	025	-77,673,251	201,063,808
   Savings deposits of other clients	026	-298,989,600	11,401,634
   Time deposits of other clients	027	239,502,690	268,354,666
   Derivative financial liabilities and other liabilities held for trading	028	0	0
   Other liabilities from operating activities	029	-83,463,301	16,988,757
   Interest received from operating activities [indirect method]	030	452,893,712	409,120,581
   Dividends received from operating activities [indirect method]	031	0	0
   Interest paid from operating activities [indirect method]	032	-100,564,035	-114,088,983
   (Income tax paid)	033	-62,853,069	-50,679,622
   Net cash flow from operating activities (from 1 to 33)	034	-1,515,756,221	-1,259,070,503
   Investing activities
   Cash receipts from the sale / payments for the purchase of tangible and intangible assets	035	-72,012,460	-71,080,381
   Cash receipts from the sale / payments for the purchase of investments in branches, associates and joint ventures	036	-1,112,620	3,328,000
   Cash receipts from the sale / payments for the purchase of securities and other financial instruments held to maturity	037	0	0
   Dividends received from investing activities	038	151,717	3,210,390
   Other receipts/payments from investing activities	039	0	0
   Net cash flow from investing activities (from 35 to 39)	040	-72,973,363	-64,541,991
   Financing activities
   Net increase/(decrease) in loans received from financing activities	041	105,527,065	610,409,340
   Net increase/(decrease) in debt securities issued	042	286,868,455	421,297,069
   Net increase/(decrease) in Tier 2 capital instruments	043	0	0
   Increase in share capital	044	0	0
   (Dividends paid)	045	-447,770,569	-448,319,920
   Other receipts/(payments) from financing activities	046	0	0
   Net cash flow from financing activities (from 41 to 46)	047	-55,375,049	583,386,489
   Net increase/(decrease) of cash and cash equivalents (34 + 40 + 47)	048	-1,644,104,633	-740,226,005
   Cash and cash equivalents at the beginning of period	049	6,202,080,797	4,877,694,428
   Effect of exchange rate fluctuations on cash and cash equivalents	050	-6,263,009	-21,107,067
   Cash and cash equivalents at the end of period (48 + 49 + 50)	051	4,551,713,155	4,116,361,356

   
   
   
   1. Financial statements (TFI-KI statements) (continued)

5. Statement of changes in equity for the period from 31 December 2024 to 30 June 2025

   		for the period from 31.12.2024	to 30.6.2025												in EUR
   Sources of equity changes	ADP code	Attributable to owners of the parent											Non-controlling interest		Total
   		Equity	Share premium	Equity instruments issued other than capital	Other equity	Accumulated other comprehensi ve income	Retained profit	Revaluation reserves	Other reserves	( ) Treasury shares	Profit or ( - ) loss attributable to owners of the parent	(-) Interim dividends	Accumulated other comprehensi ve income	Other items
   1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
   Opening balance [before restatement]	001	850,068,233	465,253,748	0	1,996,305	-9,685,310	892,447,355	0	61,175,022	-268,443	555,106,299	0	361,576	3,635,084	2,820,089,869
   Effects of error corrections	002	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Effects of changes in accounting policies	003	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Opening balance [current period] (1 + 2 + 3)	004	850,068,233	465,253,748	0	1,996,305	-9,685,310	892,447,355	0	61,175,022	-268,443	555,106,299	0	361,576	3,635,084	2,820,089,869
   Ordinary shares issue	005	0	177,728	0	0	0	0	0	0	0	0	0	0	0	177,728
   Preference shares issue	006	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Issue of other equity instruments	007	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Exercise or expiration of other equity instruments issued	008	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Conversion of receviables to equity instruments	009	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Capital reduction	010	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Dividends	011	0	0	0	0	0	-448,338,737	0	0	0	0	0	0	0	-448,338,737
   Purchase of treasury shares	012	0	0	0	0	0	0	0	0	-687,500	0	0	0	0	-687,500
   Sale or cancellation of treasury shares	013	0	0	0	0	0	0	0	0	680,843	0	0	0	0	680,843
   Reclassification of financial instruments from equity to liability	014	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Reclassification of financial instruments from liability to equity	015	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Transfers among components of equity	016	0	0	0	0	0	555,106,299	0	0	0	-555,106,299	0	0	0	0
   Equity increase or ( - ) decrease resulting from business combinations	017	0	0	0	0	0	0	0	0	0	0	0	0	0	0
   Share based payments	018	0	0	0	-858,570	0	0	0	0	0	0	0	0	0	-858,570
   Other increase or (-) decrease in equity	019	0	0	0	0	-23,665	-128,584	0	0	0	0	0	0	4,981	-147,268
   Total comprehensive income for the current year	020	0	0	0	0	13,042,814	0	0	0	0	304,690,182	0	19,559	371,665	318,124,220
   Closing balance [current period] (from 4 to 20)	021	850,068,233	465,431,476	0	1,137,735	3,333,839	999,086,333	0	61,175,022	-275,100	304,690,182	0	381,135	4,011,730	2,689,040,585

6. Notes to the condensed interim financial statements

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques, as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities,

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices),

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. More information about the assumptions applied in measuring fair values is disclosed in the last annual financial statements.

1. Measurement of fair values (continued)
   1. Financial instruments measured at fair value - fair value hierarchy

      EUR million
      			30 June 2025					31 December 2024
      	Level 1	Level 2	Level 3		Total		Level 1	Level 2	Level 3	Total
      Financial assets at fair value through profit or loss
      Debt securities held for trading	-	5	-		5		-	-	-	-
      Equity securities held for trading	-	-	-		-		-	1	-	1
      Financial assets mandatorily at fair value	-	8	3		11		115	5	3	123
      Derivative financial instruments	-	48	-		48		-	49	-	49
      Hedge accounting	-	124	-		124		-	99	-	99
      Fair value changes of the hedged items in portfolio hedge of interest rate risk	-	(3)			(3)		-	(19)	-	(19)
      	-	182	3		185		115	135	3	253
      Financial assets at fair value through other comprehensive income
      Debt securities at fair value through other comprehensive income	1,031	598	102		1,731		301	594	167	1,062
      Equity securities at fair value through other comprehensive income	-	-	1		1		-	-	1	1
      	1,031	598	103		1,732		301	594	168	1,063
      Total financial assets measured at fair value	1,031	780	106		1,917		416	729	171	1,306
      Financial liabilities at fair value through profit or loss
      Derivative financial instruments	-	44	-		44		-	47	-	47
      Hedge accounting	-	142	-		142		-	160	-	160
      Fair value changes of the hedged items in portfolio hedge of interest rate risk	-	-	-		-		-	7	-	7
      Financial liabilities measured at fair value	-	134	-		134		-	126	-	126
      Total financial liabilities measured at fair value	-	320	-		320		-	340	-	340

   2. Fair value of financial instruments not measured at fair value

      EUR million
      Fair value
      	Book value	Total	Level 1	Level 2	Level 3
      30 June 2025
      Financial assets at amortised cost	20,487	20,553	1,350	8,404	10,799
      Financial liabilities at amortised cost	23,758	23,773	-	549	23,224

      31 December 2024
      Financial assets at amortised cost	19,095	18,417	939	6,530	10,948
      Financial liabilities at amortised cost	22,242	21,579	-	568	21,011

      Assumptions used in estimates and measurement of fair values are based on requirements of IFRS 13.

2. Commitments and contingencies

   EUR million
   			30 June 2025				31 December 2024
   	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
   Gross carrying amount
   Loan commitments given	2,941	287	3	3,231	2,781	352	3	3,136
   Financial guarantees given	386	56	11	453	394	35	10	439
   Commercial guarantees given	1,086	109	24	1,219	1,026	110	25	1,161
   Other commitments given	31	3	-	34	41	3	-	44
   Total	4,444	455	38	4,937	4,242	500	38	4,780

   EUR million
   			30 June 2025				31 December 2024
   Stage 1		Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
   ECL allowance
   Loan commitments given	(11)	(13)	(2)	(26)	(12)	(17)	(2)	(31)
   Financial guarantees given	(2)	(3)	(6)	(11)	(3)	(2)	(7)	(12)
   Commercial guarantees given	(8)	(3)	(11)	(22)	(14)	(7)	(12)	(33)
   Other commitments given	-	-	-	-	(1)	-	-	(1)
   Total	(21)	(19)	(19)	(59)	(30)	(26)	(21)	(77)

3. Events after the reporting period

There were no significant reportable events after the reporting period.