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Investor Presentaiton

Growth of demand deposits with increase of ESB mkt. share Retail deposits stable, while growth slightly more pronounced on corporate side Retail deposits and market share Corporate deposits and market share 13,67% 13,71% 13,79% 13,50% 12,59% 14,33% 25,7 26,1 26,36 8,52 8,84 7,32 2016 2017 1H 2018 2016 2017 1H 2018 Retail deposits - ESB (HRK bn) Retail deposits - ESB market share (%) In the period shown, the market is characterized by continuous deposit base growth both on retail and corporate sides. As previously mentioned there is a trend of deposit base transformation from term deposits to demand deposits due to continuous drop in interest rates ESB market share in respect to retail deposits is on a mild upward swing, given the fact that the Croatian market of retail deposits is growing slower than that of the corporate deposits market. Nevertheless, in this category, ESB has also slightly outperformed the total market ERSTEŚ . • Source: Agregated non-consolidated statistic report of credit institutions wich CNB provides to credit institutions Corporate deposits - ESB (HRK bn) Corporate deposits - ESB market share (%) The current low interest rate development could encourage clients to direct excess funds into different types of investments (e.g. investment funds). These trends are noticeable, but not to such an extent that it could result in significant deposit base drop, neither in retail nor in corporate clients segment The total amount of corporate deposits of the banking sector were HRK 63.08 bn in 2017, which is an increase by 8.5% y/y compared to the year before. EBS had outperformed the market with its corporate deposits growth reaching 16.4% in 2017, which resulted with ESB's market share growth Bank 14
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