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Investor Presentaiton

Positive operating result trend highlighted in 1H 2018 Net profit and ROE • • 9,7% 9,4% Operative P&L, Cost Income ratio 13.8% 0,63 0,65 2,28 0,51 44% 2,33 46% 45% 2016 2017 1H 2018 Net profit (HRK bn) ROE (%) With stable operating result, ROE is growing in 1H2018 due to lower impairments and provisions for losses Impairments and provisions for losses decreased in the first half of 2018 by HRK 191 mn vs. HRK 196 mn on June 30 of the previous year and amount to HRK 5 mn on June 30, 2018 ERSTEŚ Bank • • • • 2016 1 Operating income (HRK mn) Cost/income ratio (%) 1,06 1,18 0,53 2017 1H 2018 Operating expenses (HRK mn) Operating revenues are growing backed by intensified lending activities and interest cost optimization, despite the constant decreasing of interest rates on loans to customers. In 2017 net interest income increased by 4.7% y/y compared to the year before. The positive trends continued in 2018 as well. In the first half, net interest income grew by 3.9% compared to the first half of 2017. Net fees and commission income increased as well. In 2017 they grew by 8.5% y/y compared to 2017 and in 1H 2018 1% compared to the 1H of 2017. Cost / Income ratio is demonstrating stability in the period observed Source: audited non-consolidated financial reports for 2016 and 2017 and non-audited non-consolidated financial reports for 1H 2018 (GFI-KI) 16
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