ANNUAL FINANCIAL STATEMENTS AND INDEPENDAT AUDITOR’S REPORT

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PRIMORSKA BANKA d.d. in liquidation

Dolac 3, Rijeka

ANNUAL FINANCIAL STATEMENTS AND INDEPENDAT AUDITOR’S REPORT

31 DECEMBER 2020

CONTENTS

MANAGEMENT’S REPORT

1 RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS

2 INDEPENDENT AUDITOR’S REPORT

9 STATEMENT OF COMPREHENSIVE INCOME AS AT 31 DECEMBER 2020

10 STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2020

11 CASH FLOW STATEMENT AS AT 31 DECEMBER 2020

12 STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2020

13 NOTES TO THE FINANCIAL STATEMENTS

47 APPENDIX 1 – OTHER REGULATORY OBLIGATIONS FOR THE YEAR 2020

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RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS

Liquidators of Primorska banka d.d. in liquidation, Dolac 3, Rijeka ("the Bank") are responsible for ensuring that the annual financial statements for the year 2020 are prepared in accordance with the Accounting Act (Official Gazette 78/15, 134 / 15, 120/16, 116/18, 42/20 and 47/20) and the International Financial Reporting Standards (IFRS) as endorsed by the European Union and published in the EU Official Journal, to give a true and fair view of the financial position, the financial performance, the changes in equity and the cash flows of the Bank for that period.

As IFRS are based on the assumption of going concern basis, and plan in the Bank’s liquidation is to complete the liquidation in the near future, expected by the year 2021 at the latest, the Bank has prepared its financial statements in accordance with the recognition, measurement, presentation and disclosure requirements adopted in IFRS, although the going concern basis is not applicable to the financial statements for the financial year ended 31 December 2020, as the Bank considers that such an accounting framework ensures a true and fair presentation of the Bank’s financial position at 31 December 2020, financial performance and cash flows for the year.

At its session held on 21 May 2018, the General Assembly of the Bank adopted a Decision on termination of business and regular liquidation of the Bank with the date of commencement of regular liquidation on 21 June 2018 and the scheduled completion date for liquidation on 31 December 2021 with the possibility of extending the term of liquidation completion. Also, on 26 June 2018, the Croatian National Bank terminated the approval of the EROFF-22-020 / 18-ŽJ-BV with the date of liquidation commencement, thereby abolishing the Bank's approval for providing financial services as well as all other approvals given to the Bank. As a follow-up, the annual financial statements are prepared under the assumption that the Bank will cease operations. In preparing the annual financial statements, the Liquidators of the Bank are responsible for:

• selection and consistent application of suitable accounting policies in accordance with the applicable financial reporting standards;

• giving reasonable and prudent judgments and estimates;

• using the going concern basis of accounting, unless it is inappropriate to presume so. The Liquidators of the Bank are responsible for keeping the proper accounting records, which at any time with reasonable certainty present the financial position, the financial performance, the changes of equity and the cash flows of the Bank, and also their compliance with the Accounting Act and the International Financial Reporting Standards as endorsed by the European Union and published in the EU Official Journal. Bank’s Liquidators are also responsible for safe keeping the assets of the Bank and also for taking reasonable steps for prevention and detection of fraud and other irregularities.

Signed on behalf of the Liquidators:

Primorska banka d.d. in liquidation Dolac 3 51000 Rijeka, Croatia Rijeka, 19 March 2021

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PRIMORSKA BANKA d.d. | INDEPENDENT AUDITOR'S REPORT

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF PRIMORSKA BANKA d.d. in liquidation, Rijeka

Report on the Audit of the Annual Financial Statements

OPINION

We have audited the enclosed annual financial statements of Primorska banka d.d. in liquidation, Dolac 3, Rijeka (the ''Bank''), which comprise the Statement of Comprehensive Income for the year ended 31 December 312020, Statement of financial position as at 31 December 2020, Cash Flow Statement and Statement of Changes in Equity for the year as well as Notes to the Financial Statements, including a summary of significant accounting policies and other clarifying information.

In our opinion, the enclosed annual financial statements, give a true and fair view of the financial position of the Bank as at 31 December 2020 and of its financial performance and the cash flows for the year in accordance with accounting policies based on the recognition, measurement, presentation and disclosure requirements adopted in International Financial Reporting Standards (IFRS) endoresed by the European Commission and published in the Official Journal of the European Union.

BASIS FOR OPINION

We conducted our audit in accordance with the Accounting Act, Auditing Act and International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the annual financial statements section of our Independent Auditor’s report.

We are independent of the Bank in accordance with the Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTER

Key audit matters were ones which were, based on our professional judgement, of utmost importance for our audit of annual financial statements for the current period. We coducted our audit by assessing the risks of a material misrepresentation in the financial statements, what included taking into consideration the significant accounting estimates as well as assumptions and uncertain events.

We also carried out procedures related to circumventing the system of internal controls by the management, which represent the risk of error as a result of fraud and have the greatest impact on the annual financial statements. We dealt with these questions in the context of our audit of annual financial statements as a whole, and during the formation of our opinion of them; and we do not provide a separate opinion on these matters.

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We have determined that the issues listed below are the key audit matters to be published in our Independent Auditor's Report.

Key Audit Matter Auditing procedures we have used

Impairment of loans and advances to clients

The note to the Bank’s annual financial statements No. 15 - Loans and advances to clients shows the gross value of loans and advances in the amount of HRK 39,116,664; related provisions for impairment in the amount of HRK 19,322,109; and impairment loss recognized in the statement of profit or loss in the amount of HRK 453,855 (31.12.2019.: HRK 46,089,317, the corresponding impairment of the provisions of HRK 19,973,142, and the loss of the impairment of HRK 1,488,892 in the profit and loss account.

This area is determined as a key audit matter, because determining appropriate impairment requires the application of significant judgments using subjective assumptions, since the estimate of the impairment of provisions amount requires a significant assessment by the Bank's Liquidator relating to the determination of the timing of the impairment and the amount of that impairment.

Bank’s Liquidators made an assessment of the entire remaining portfolio by assessing the expected credit loss for individual loans.

Allocation of credit risk to an appropriate level in accordance with the International Financial Reporting Standard 9: Financial instruments (hereinafter referred to as "IFRS 9") depend on the liquidators’ judgments and the correct selection of indicators for the identification of credit risk of the borrower.

The Bank's liquidators assess the parameters they consider relevant for the calculation of expected losses, such as regular settlement of the liabilities, the financial position of the debtor, the period of realisation and the value of the collaterals at the expected date of realisations, expected cash flow and economic conditions.

Audit procedures related to the key audit matter included an assessment of the functioning of the internal control system, consideration of the business model of financial asset management, the review and analysis of placement groups, an assessment of the calculation methodology of expected losses, and an overview of individual placements that are materially significant or selected in the sample.

The audit procedures were focused on assessing the effectiveness of the functioning of the internal control system, the quality of the historical financial information , the assessment of the suitability of the associated estimation of collateral values, the suitability of assumptions used, and in particular the verification of the circumstances and events relating to financial assets, and the macroeconomic prospective information used that causes the need for impairment, the adequacy of the classification and the calculation of the expected credit losses.

We considered the methodology developed to calculate impairments on exposures in accordance with IFRS 9 requirements.

We have paid particular attention to the verification of the classification of orderly loans, loans with a significant increase in credit risk and loans in need of impairment, in accordance with IFRS 9, but also in accordance with the Decision and the assessment of the expected credit losses.

For impairment determined on individual basis we have:

- selected a sample of loans with the highest amount and the highest risk;

- verified the accuracy of the financial information used to identify loans where impairment is needed;

- assessed if the estimates of expected future cash flows and the time required to collect exposures are appropriate, the valuation of collateral and the

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The Bank acknowledges the impairment of loans and advances of clients in accordance with legal requirements for accounting of banks in the Republic of Croatia.

Historical information, identification of clients with a significant deterioration in credit quality, prospective information and liquidator assessments are included in the assumptions of the model. The Bank continuously adjusts the model parameters, which also requires our special attention during the audit.

Impairment represents the Bank's best estimate of expected losses of the loan portfolio and advances at the reporting date.

Related disclosures in the corresponding annual reports

See Notes to the financial statements 3.8. – Financial assets (Significant accounting policies) 10 – Costs of correction of value and provisions, 15 – Loans and advances to clients and 29 – Credit risk (Financial risk management),

financial impact of the use of collateral based on collecting of uncollected exposures;

- assessed the appropriateness of exposure classification and calculation of expected losses of individual exposures as at balance sheet date, as well as their compliance with the requirements of the CNB;

- conducted supporting testings of the selected sample of loans and related claims in order to assess the correctness of the classification and evaluation of the loan;

- We assessed the appropriateness of publications in relation to legal requirements for accounting of banks in the Republic of Croatia.

The results of our tests were satisfactory. We agree that the impairments carried out at the balance sheet date are appropriate.

EMPHASIS OF MATTER – GOING CONCERN BASIS

We would like to point out Notes 1.1 and 30 to the annual financial statements, explaining the circumstances for cessation of financial services provision, due to the commencement of regular liquidation procedure. On 21 May 2018, the General Assembly of the Bank issued a Decision on termination of business and regular liquidation of the Bank with the date of commencement of regular liquidation on 21 June 2018 and the scheduled completion date for liquidation 31 December 2021 with the possibility of extending the termination of liquidation. The Assembly of the Bank appointed the liquidators of the Bank at the same session. On 26 June 2018, the Croatian National Bank also annulled the approval of the Bank (EROFF-22-020 / 18-ŽJ-BV) for the provision of financial services, as well as all other approvals granted to the Bank. On 30 June 2018, a change in the company was entered into the Court Register, the appointment of a liquidator and the entry of reasons for the termination of the Bank.

Accordingly, these financial statements are prepared under the assumption that the Bank will cease operations. Our opinion has not been modified in this regard.

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OTHER INFORMATION IN THE ANNUAL REPORT

The Bank’s Liquidators are responsible for other information. Other information include information included in the Annual report as well as Management’s Report. Our opinion on the financial statements does not include other information or the Bank's Management Report.

Our opinion on the annual financial statements does not include other information, except to the extent explicitly stated in the part of our Independent auditor's report, entitled Report on compliance with other legal or regulatory requirements, and we do not express any kind of conclusion with assurance on them.

In connection with our audit of the annual financial statements, it is our responsibility to read the other information and consider whether other information has significant contradictions to annual financial statements or our knowledge gained while performing the audit, or otherwise appear to be materially misstated.

In connection with the Bank's Management Report, we have also carried out the procedures prescribed by the Accounting Act. Based on the procedures carried out, to the possible extent, we report that:

information in the enclosed Bank’s Management Report complied, in all relevant determinants with the attached annual reports, and that

enclosed Bank’s Management Report for the year 2020 is prepared in accordance with Art. 21. of Accounting Act.

If, based on the work we have performed, we conclude that there is a material misstatement of this information, we are required to report this fact. In this sense we have nothing to report.

RESPONSIBILITIES OF LIQUIDATORS AND THOSE CHARGED WITH GOVERNANCE FOR THE ANNUAL FINANCIAL STATEMENTS

The Liquidators are responsible for the preparation of annual financial statements that give a true and fair view in accordance with IFRS, determined by the European Union and published in the EU Official Journal; and for such internal control as the Liquidators determine necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error.

The Bank's Liquidators did not apply the going concern basis in the presentation of the financial statements, which, due to the circumstances described in the Emphasis of matter – going concern basis fully corresponds to the Bank’s position. Therefore, the financial statements have been prepared in accordance with accounting policies that comply with the requirements for recognition, measurement, presentation and publication of the Accounting Act and IFRS endorsed by the European Union and published in the Official Journal of the European Union as the most appropriate framework for the preparation.

Those in charge of the management are responsible for overseeing the Bank’s financial reporting process set by the Bank.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE ANNUAL FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

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audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Liquidators.

• Conclude on the appropriateness of Liquidator’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

• Evaluate the overall presentation, structure, and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also make a statement to those charged with governance that we have complied with the relevant ethical independence requirements and that we shall communicate with them all relationships and other matters that may reasonably be considered to have an impact on our independence, as well as, where applicable, on related protective measures.

Among the issues communicated with those charged with governance, we identify the issues most important for the audit of the annual financial statements of the current period and therefore represent key audit matters. We describe these issues in our independent auditor's report, unless the law or regulation prevents public disclosure or when we decide, in exceptional circumstances, that the matter should not be communicated in our independent auditor's report as it can reasonably be expected that negative consequences of communication would outweigh the public interest benefits of such disclosure.

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Report on Compliance with Other Legal Requirements

REPORT IN VIEW OF REQUIREMENTS OF REGULATION (EU) NO. 537/2014

On 30 September 2019, based on the Liquidator’s suggestion, we have been appointed by the General Assembly of the Bank to carry out an audit of the annual financial statements for the period ended 31 December 2019, 31 December 2020 and the next year till the end of the process of liquidation.

We were appointed as the Bank's auditor for the first time for the year 2019. The audit of the financial statements for the period ended 31 December 2019 is our first year of auditing.

Besides issues that our independent auditor's report identified as key audit matters under subtitle Report on the Audit of the Annual Financial Statements, we have nothing to report regarding Article 10 item (c) of Regulation (EU) No. 537/2014.

By our statutory audit of the Bank's annual financial statements for the year 2020, we are able to detect irregularities, including fraud in accordance with Section 225 of the IESBA Code, which requires us to comply with the Non-Compliance with Laws and Regulations , in carrying out our audit engagement, to determine whether the Bank complies with laws and regulations that are generally recognized as having a direct impact on the determination of significant amounts and their disclosures in annual financial statements, as well as other laws and regulations that do not have a direct impact on the determination of significant amounts and their disclosures in annual financial statements, but respecting them may be crucial for operational aspects of the Bank's business, its ability to complete the liquidation process or avoid significant penalties.

Except where we encounter or become aware of disrespect of any of the aforementioned laws or regulations which is considered insignificant according to our judgment of its content and its influence, financial or otherwise, regarding the Bank, its stakeholders and the wider public, we are obliged to inform the Bank thereof and seek to investigate such case, as well as take appropriate measures to resolve irregularities and prevent the occurrence of such irregularities in the future. If the Bank fails to correct irregularities at the date of the audited balance sheet which arise from incorrect disclosures in audited annual financial statements that are cumulatively equal to or greater than the amount of significance for financial statements as a whole, we are required to modify our opinion in an independent auditor's report.

In the audit of the Bank's annual financial statements for the year ended 31 December 2020, we determined the materiality for financial statements as a whole in the amount of HRK 491,737 representing approximately 1% of the total Bank’s assets. We choose the Bank’s assests as the most appropriate measure of the Bank’s performance.

We confirm that our audit opinion on financial reports is consistent with additional report to the Bank’s Supervisory Board we issued on 19 March 2021 and in accordance with provisions of Article 11 of Europen Parlament and Council Regulation No. 537/2014.

To our best knowledge and beliefs, we declare that we have not provided non-audit services which are prohibited by Article 5(1) Of Regulation (EU) No 537/2014, and we did not provide any other permitted non-audit services to the Bank for the period from 1 January to 31 December 2020 i.e. up to the date of this Report, or in the year preceding this period.

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REPORT BASED ON ACCOUNTING ACT REQUIREMENTS

In our opinion, based on the work that we performed during the audit, information in the Management Report for the year 2020 are in accordance with the financial information stated in the annual financial statements of the Bank for the year 2020.

In our opinion, based on the work that we performed during the audit, the Bank's Management Report for the year 2020 is prepared in accordance with the Accounting Act.Based on the knowledge and understanding of the Bank and its environment obtained while performing the audit, we have not found that there are material misstatements in the Bank's Management Report.

Based on the Decision of the Croatian National Bank on the structure and contents of the Bank's annual financial statements (Official Gazette 42/18; 'the Decision'), the Bank's Liquidators prepared the forms presented on pages 48 to 51, under headlines the Statement of financial position (Balance Sheet) as at 31 December 2020, the Income Statement, the Cash Flows Statement, the Statement of Changes in Equity for the year together with information about the adjustments with Bank's financial reports. The Bank's Liquidators are responsible for preparing these forms and information on adjustments with the Bank's annual financial statements, which are not an integral part of these annual financial statements, but they provide the information required by the Decision. The financial information in the forms are based on the Bank's revised annual accounts prepared in accordance with the banks' accounting legal requirements in the Republic of Croatia and are presented on pages 52 to 58 and adjusted to the requirements of the Decision.

An engagement partner in auditing the Bank's annual financial statements for the year ended 31 December 2020 resulting in this Independent Auditor's Report is Jeni Krstičević, Certified Auditor.

Zagreb, March 19, 2021

PRIMORSKA BANKA d.d. in liquidation, Rijeka STATEMENT ON COMPREHENSIVE INCOME as at 31 December 2020

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Description Note 2020. 2019.

HRK HRK

Interest income 4. 687,848 2,376,986

Interest expense 5. (193,427) (628,635)

Net interest income 494,421 1,748,351

Fees and commissions income 6. 6,040 7,888

Fees and commissions expenses 7. (61,631) (79,299)

Net income from fees and commissions -55,591 (71,411)

Net income/expenses from trade, reduced to fair value of financial assets and calculation of monetary assests and liabilities 8. 55,788 18,226

Other income from ordinary business 51,169 116,902

Total other income 106,957 135,128

Other expenses 9. (5,930,354) (7,420,088)

Impairments and provisions 10. (455,425) 1,239,595

Total other expenses (6,385,779) (6,180,493)

(Loss) / profit before tax (5,839,992) (4,368,425)

Corporate income tax 11. 0 0

(Loss) for the year (5,839,992) (4,368,425)

(Loss) per share 26. (6,67) (4,99)

Net change of fair value 0 1,161

TOTAL COMPREHENSIVE (LOSS) FOR THE YEAR/PREVIOUS PERIOD

(5,839,992) (4,367,264)

Accompanying Notes form an integral part of these financial statements.

PRIMORSKA BANKA d.d. in liquidation, Rijeka STATEMENT ON FINANCIAL POSITION/BALANCE SHEET as at 31 December 2020

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Description Note 31.12.2020. 31.12.2019.

HRK HRK ASSETS

Cash 12. 26,727,320 34,637,752 Receivables from the Croatian National Bank 13. 325,646 1,047,282 Financial assets at fair value through other comprehensive income 14. 25,000 25,000 Loans and prepayments to customers 15. 19,794,555 26,116,175 Property, plant and equipment 16. 1,741,839 2,015,040 Intangible assets 17. 131,255 559,018 Foreclosed assets 18. 200,211 0 Other assets 19. 227,834 323,759

Total assets 49,173,660 64,724,027

LIABILITIES Deposits 20. 1,509,220 10,348,791 Hybrid instruments 21. 3,687,224 3,687,498 Loan liabilities 22. 2,365,000 2,627,778 Other liabilities 23. 826,452 1,434,202

Total liabilities 8,387,896 18,098,270

CAPITAL 24. Share capital

70,000,000 70,000,000,00 Reserves (2,078,999) (2,078,999) (Retained eanings) (21,295,244) (16,926,819) (Loss) for the year (5,839,993) (4,368,425)

Total capital 40,785,764 46,625,757

Total capital and liabilities

49,173,660 64,724,027

Accompanying Notes form an integral part of these financial statements

PRIMORSKA BANKA d.d. in liquidation, Rijeka STATEMENT OF CHANGES IN EQUITY as at 31 December 2020

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Opis

Share capital

Reserves of fair value

Transferred loss

Loss for the year

Total

HRK HRK HRK HRK HRK

Restated balance - on 21 June current year 70,000,000 (2,080,160) (8,956,532) (7,970,287) 50,993,021

Loss allocated into transferred loss 0 0 (7,970,287) 7,970,287 0

Changes in fair value of financial instruments 0 1,161 0 0 1,161

Loss for the year 0 0 0 (4,368,425) (4,368,425)

Balance as at 31 December 2019 70,000,000 (2,078,999) (16,926,819) (4,368,425) 46,625,757

Loss allocated into transferred loss 0 0 (4,368,425) 4,368,425 0

Changes in fair value of financial instruments 0 0 0 0 0

Loss for the year 0 0 0 (5,839,993) (5,839,993)

Balance as at 31 December 2020 70,000,000 (2,078,999) (21,295,244) (5,839,993) 40,785,764


PRIMORSKA BANKA d.d. in liquidation, Rijeka CASH FLOW STATEMENT as at 31 December 2020 INDIRECT METHOD

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Description 2020. 2019.

HRK

NET CASH FLOW FROM OPERATING ACTIVITIES

(Loss)/profit before taxation (5,839,993) (4,368,425)

Adjustment to net cash assets from operating activities

Depreciation 703,415 1,106,029

Loan impairments 453,855 (1,488,892)

Impairments of other assets (26,090) (3,775)

Provisions for court disputes 27,659 254,495

Provisions for off balance sheet liabilities 0 (1,423)

Changes on assets and liabilities from operating activities

Decrease in receivables from CNB 721,636 1,584,046

Increase in placements with banks 0 580,419

Decrese of financial instruments at fair value through OCI 0 25,009

Decrease in loans and advances to clients 5,875,620 10,781,300

Decrease/increase in other assets 95,925 103,878

Decrease/increase in demand deposits (184,727) 80,641

Decrease in time deposits (8,654,844) (19,055,123)

Decrease in other liabilities (607,750) (84,033)

Paid profit tax

Net cash flow from operating activities (7,435,294) (10,485,854)

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment and intangible assets (11,875) (18,000)

Increase/decrease in acquired assests 200,211 1,100,000

Net cash flow from investing activities (212,086) 1,082,000

CASH FLOW FROM FINANCIAL ACTIVITIES

Increase in liabilities for received loans (262,778) (300,318)

Increase/decrease in liabilities upon special stakes (274) 0

Other changes in equity (net) 0 1,161

Net cash flow from financial activities (263,052) (299,156)

Net change in cash and cash equivalents (7,910,431) (9,703,010)

Cash and cash equivalents at the beginning of the year 34,637,752 44,340,762

Cash and cash equivalents at the end of the year 26,727,321 34,637,752


PRIMORSKA BANKA d.d. in liquidation, Rijeka NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2020

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l GENERAL INFORMATION ABOUT THE BANK 1.1. Legal frame work and activities

Primorska banka d.d. (The "Bank") is a joint stock company registered at the Commercial Court in Rijeka under the registration number MBS 040098231 (OIB 96675880337). The headquarters of the Bank are located in Rijeka, Dolac 3.

By the decision of the General Assembly of the Bank of 29 December 2014, the Bank's share capital was increased by cash payment of HRK 58,089,000 in the amount of HRK 5,000,000 to HRK 63,089,000 by issuing 50,000 new ordinary shares in the name, of a nominal value of HRK 100. The Bank's share capital is divided into 630,890 shares with a nominal value of 100 kuna each. The increase in the subscribed capital was carried out in the court register on February 4, 2015.

By the decision of the General Assembly of 7 June 2016 on the simplified reduction of the share capital and the reduction of the nominal amount of the Bank's shares from 100 (hundred) kunas to 80 (eighty) of each in order to cover the carried loss of previous years, the share capital was reduced as follows: HRK 63,099,000 for the amount of HRK 12,617,800 to HRK 50,471,200. At the regular General Assembly held on 7 June2016, a decision was made to increase the share capital by entering the right, increasing the share capital from HRK 50,471,200 to HRK 19,528,800 to HRK 70,000,000, by issuing 244,110 new ordinary shares on behalf of a nominal value of 80 kuna. After the increase, the share capital amounted to HRK 70,000,000 divided into 875,000 ordinary shares.

On 30 January 2018, the Bank's Management Board issued a Decision to suspend the approval of placements (loans) and the termination of fixed-term deposits. On 10 April 2018, the Croatian National Bank analyzed the Bank's Liquidation Plan and other available documentation and gave a positive opinion.

On 21 May 2018, the General Assembly of the Bank issued a Decision on termination of business and regular liquidation of the Bank with the date of commencement of regular liquidation on 21 June 2018, and foreseen completion of liquidation on 31 December, 2021 with the possibility of extending the liquidation term. The Assembly of the Bank appointed the liquidators of the Bank at the same Assembly. On 26 June2018, the Croatian National Bank, with the ruling EROFF-22-020 / 18-ŽJ-BV has cancelled Bank’s approvals with the date of the opening of regular liquidation, thereby abolishing the Bank's approval of financial services as well as all other approvals granted to the Bank. On 30 June 2018, a change in the company, the appointment of a liquidator and the entry of reasons for the termination of the Bank was entered into the Court Register..

The Bank's share capital on 31 December 2020 amounts to HRK 70,000,000 and is divided into 875,000 ordinary shares with a nominal value of HRK 80. The shareholders of the Bank are stated as follows:

Shareholder 31.12.2020. % 31.12.2019. %

C.I.M. Banque 72.30 72.30

Francesco Signorio 15.02 15.02

Svetlana Signorio 2.03 2.03

Cofisi S.A. 8.88 8.88

Others 1.77 1.77

TOTAL 100.00 100.00

PRIMORSKA BANKA d.d. in liquidation, Rijeka NOTES TO THE FINANCIAL STATEMENTS as at 31December 2020 - continued

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As at 31 December 2020 the Bank employed 9 employees (as at 31 December 2019: 9 employees). Qualification structure of employees was as follows:

Structure 31 Dec 2020 31 Dec 2019

University education 8 8

Higher education 0 0

High school 1 1

Unqualified 0 0

TOTAL 9 9

1.2. Bank’s management bodies

Bank’s management bodies are the General Assembly, the Supervisory Board and the Liquidators.

General Assembly:

• Jože Perić – president of the General Assembly until 20 February 2018

• Andrej Galogaža - president of the General Assembly since 1 March 2018 until 20 June 2018

• Adnan Hafizadić - president of the General Assembly since 21 June 2018

Supervisory Board:

• Gabriele Ruffa – Deputy Chairman of the Supervisory Board as of 1 March 2018, Member of the Supervisory Board of 21 February 2018 for a term of one year. Based on the decision of the General Assembly on 10 December 10 the mandate is extended for another four years.

• Thierry David Raphael Mosse – Member of the Supervisory Board of 21 February 2018 for one year. Based on the decision of the General Assembly on 10 December, the mandate is extended for another four years.

• Adnan Hafizadić - Chairman of the Supervisory Board of 21 June 2018, based on the Supervisory Board's decision, member of the Supervisory Board of 21 June 2018, based on the decision of the General Assembly of 21 May 2018. Based on the decision of the General Assembly on 10 December, the mandate is extended for another four years.

• Andrej Galogaža – Chairman of the Supervisory Board from 1 March 2018 to 20 June 2018. From January 1, 2018 until March 1, 2018, he ceased to serve as Deputy Chairman of the Supervisory Board because he served as Deputy Chairman of the Board during that period.

• Jože Perić - Chairman of the Supervisory Board until 20 February 2018

• Giorgio Mattioli - ceased to be a member of the Supervisory Board by expiration of the term of office expiring on 20 February 2018

• Franco Brunati - ceased to be a member of the Supervisory Board by expiration of the term of office expiring on 20 February 2018

• Renata Dogan - member of the Supervisory Board until 1 March 2018

Management Board (until 20 June 2018):

• Mario Pilat - CEO of the Management Board since 1 March 2018, for a term of one year

• Andrej Galogaža - Deputy Chairman of the Management Board, represents the Bank together with a member of the Management Board from 1 January 2018 to 1 March 2018

• Goran Brajdić - member of the Management Board, represents the Bank together with the President of the Management Board until 20 June 2018


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On 21 May 2018, the Bank's General Meeting passed a Decision on termination of business and regular liquidation of the Bank with the date of commencement of regular liquidation on 21 June 2018 and the scheduled completion date for liquidation on 31 December, 2021 with the possibility of extending the liquidation term, appointing bank liquidators:

Liquidators (since 20 June 2018):

• Mario Pilat, Liquidator, represents jointly with another liquidator based on the Assembly's decision of 21 May 2018, with the mandate since 21 June 2018

• Andrej Galogaža, Liquidator, represents jointly with another liquidator based the Assembly's decision of 21 May 2018, with the mandate since 21 June 2018

II BASIS FOR THE PREPARATION OF FINANCIAL STATEMENTS 2.1. Statement of adjustment and basis of presentation

The annual financial statements have been prepared in accordance with the legal accounting regulations for banks in the Republic of Croatia, which require credit institutions to report in accordance with International Financial Reporting Standards (IFRS) endorsed by the European Commission and published in the Official Journal of the European Union. IFRS are based on the going concern basis, and the Bank’s liquidation plan is to complete the liquidation in the near future, expected by 2021 at the latest. The Bank has prepared its financial statements in accordance with the recognition, measurement, presentation and disclosure requirements adopted in IFRS, although the going concern basis is not applicable to the financial statements for the financial year ended 31 December 2020, as the Bank considers that such an accounting framework ensures a true and fair presentation of the Bank’s financial position at 31 December 2020, financial performance and cash flows for the year. Bank’s operations have been regulated by the Credit Institutions Act (OG 153/09, 19/15, 102/15, 15/18, 70/19, 47/20 and 146/20), according which, financial reporting is prescribed by the Croatian National Bank (“the CNB”) as the central supervisory institution of the banking system in Croatia. Bank’s financial statements have been prepared in accordance with these banking regulations.

The basic accounting policies applied in the preparation of these financial statements are summarized below, and the Bank has consistently applied them for all periods reported in these financial statements. We draw attention to the differences between the CNB's accounting regulations and IFRS recognition and measurement requirements.

2.2. Basis of preparation

The financial statements have been prepared on a fair value basis for financial assets available for sale. Other financial assets and liabilities and non-financial assets and liabilities are stated at depreciated or historical cost.

2.3. Key estimates and uncertainty of estimates

Certain estimates are used during preparation of the financial statements which have an effect on the statement of assets and liabilities of the Bank, income and expenses of the Bank and the disclosure of potential liabilities of the Bank. Future events and their influence could not be predicted with certainty and, following to this, the real results may differ from the estimated ones. Estimates used during preparation of the financial statements are subject to changes due to the


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occurrence of new events, gathering additional experience, obtaining additional information and comprehensions and due to change of environment in which the Bank operates.

Key estimates used in the application of accounting policies during preparation of the financial statements relate to depreciation calculation of long-term intangible and tangible assets, impairment of assets, impairment of provisions and reserves; and the disclosure of potential liabilities.

Financial statements are shown in a form usually used and internationally accepted in publishing financial statements of banks and similar financial institutions. 2.4. Functional and reporting currency

The functional and reporting currency is the Croatian kuna, and the financial statements are presented in kuna (unless otherwise stated).

III SUMMARY OF ACCOUNTING POLICIES

Summary of significant accounting policies adopted in the preparation of financial statements is set out below. Policies are consistently applied to all the years presented that are included in this statement, unless otherwise stated.

3.1. Changes in accounting policies The new standards and the amended existing standards issued by the International Accounting

Standards and Interpretations Committee endorsed by the International Financial Reporting

Interpretations Committee and adopted in the European Union and in force for the current period

have no material effect on the Bank’s annual financial statements for 2020 and are described as

follows:

• Amendments to the Guidelines on the conceptual framework in IFRS standards (EU Regulation 2019/2075);

• Amendments to IAS 1 and IAS 8: Definition of Significance (EU Regulation 2019/2104)

• Amendments to IFRS 9, IAS 39 and IFRS 17: Reform of the Interest Rate Reference Value (EU Regulation 2020/34);

• Amendments to IFRS 3: Business Combinations (EU Regulation 2020/551)

• Amendment to IFRS 16: Lease Rental Concessions relaed to COVID-19 (EU Regulation 2020/1434)

Standards and interpretations issued by the Standards Board that have not yet become effective,

have not been adopted by the Bank.

The Liquidators of the Bank foresee that the application of these standards, amendments and interpretations will not have a significant impact on the financial statements in the period of their first application. 3.2. Interest income and expenses

Interest is defined as all income, i.e. expense, for which the base for calculating the placement is stated in the balance sheet assets, i.e. the liability shown in the liability statement, whether the calculation is made on a one-time basis or on a time basis (periodic).


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Interest income to fully recoverable placements is recognized in the income statement, taking into account the effective yield of the asset on which the interest rates are calculated.

Interest income that is in the form of interest, fees and commissions charged and credited during the granting of a loan or during the term of a loan agreement relating to the future period shall be recognized in profit or loss on a pro rata basis over the period to which the income relates.

Interest income and interest expense includes amortization of discount or premium, as well as other differences between the initial carrying amount of the interest-bearing instrument and the amount at maturity.

The effective interest rate is the decurtive interest rate, expressed on an annual basis using a complex interest rate account, using discounted cash receipts equalizing the discounted cash outflows related to the given loans, i.e. the received deposits. For loans, the rate is not additionally adjusted to the one-off equivalent effect of discounted cash receipts and expenses on the basis of the cash deposit used to secure the crediting. When discounting, the actual (calendar) number of days in the month and 365/366 days per year are applied. The effective interest rate is expressed in two decimal places, with the rounding of the second decimal.

If the loan is partially written off to its estimated recoverable amount, the interest income is recognized on the basis of the interest rate used to discount the future cash flows in order to measure the recoverable amount. In accordance with IFRS 39, this is a historical effective interest rate that was used before the claim became suspicious and controversial. Interest income on partially recoverable and non-recoverable placements (risk groups B and C) is recognized in the income statement when or if it is charged. Interest income on approved loans and receivables, and on payments made for guarantees and other warranties are calculated according to interest rate and tariff resolutions of the Bank.

3.3. Fee and commission income and expenses

Fee and commission income are the fees of the Bank for guarantees and other services provided by the Bank, commissions for asset management on behalf of and for the account of legal entities and citizens and commissions for domestic and foreign payment transactions.

Fee and commission income is recorded on the principle of invoiced realization when performing banking services in the period when they are earned. For fees and commissions that have not been paid within 90 days from the maturity date, a write-down is made in accordance with the Procedure on placement and off-balance-sheet items classification; nased on one criterion: days of delay.

If the claim is billed, the booking is canceled for the benefit of the fee period. Fee expense is recognized in the income statement in the period when they were incurred.

3.4. Net income and losses from financial instruments at fair value through statement of comprehensive income and the result from purchase and sale of currencies and currency rate differentials made through recalculation of monetary assets and liabilities

This category includes earnings from purchase and sale of currencies, realized and unrealized profit and loss from debt and equity securities held for trading, other financial instruments valued at fair value through the Statement of Comprehensive Income, and derivative financial instruments. Net profit and loss from currency rate differentials made through recalculation of


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monetary assets and liabilities denominated in foreign currencies are also included in this category. 3.5. Foreign currency translation Transactions in foreign currencies are translated into functional currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities are calculated to functional currency at CNB’s middle exchange rate on balance sheet date. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to HRK at the foreign exchange rate ruling at that date. Foreign exchange differences arising from translation are recognized in the Statement of Comprehensive Income. Non-monetary items denominated in foreign currencies measured at fair value are translated to HRK using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured in terms of purchase cost in a foreign currency should be recognised using the exchange rates as at the dates of the initial transactions. Gains and losses arising from translation and foreign currency trading are recognized in the Statement of Comprehensive Income for the year concerned.

3.6. Taxation

The profit tax represents the joint amount of current tax liabilities and deferred taxation. Current tax Current tax liabilities are based on taxable profit for the year. Taxable profit differs from net profit of the period declared in the Statement of Comprehensive Income for amounts which are not added to the tax base, as well as amounts of tax-unrecognised expenses. The current tax liability of the Bank is calculated using valid interest rates, or those valid on the balance sheet date. Management periodically assesses tax application positions in relation to situations in which applicable tax laws are the subject of interpretation, and makes provisions whenever possible.

Deferred tax Deferred tax is calculated using the liability method and shows tax effects of all significant time differences between the tax basis, assets and liabilities and amounts declared in financial statements. 3.7. Pension plans / retirement benefits Defined contribution plans Contributions from the Bank's pension plans burden the Statement of Comprehensive Income in the year pertaining. Defined benefit plans Surplus and deficits from retirement benefit (pension) plans are measured per:

- Fair value of assets available for mentioned benefits, as at the day of reporting, less - Current net value of benefits and - Adjustments for non-recognized expenses of previous services


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The Bank has no other retirement plans except those included within the state retirement plan in the Republic of Croatia. 3.8. Financial assets Financial assets include:

(a) cash;

(b) contractual right to receive money or other financial assets of another company;

(c) the contractual right to exchange financial instruments with other companies

under conditions that are potentially more favorable;

(d) equity instruments of another company.

CLASSIFICATION OF FINANCIAL ASSETS Financial assets in accordance with IFRS 9 are divided into four basic categories:

(a) Financial assets measured at amortized cost (b) Financial assets measured at fair value through other comprehensive income (c) Financial assets that are measured at fair value through profit or loss (d) Financial assets held for trading

Financial assets measured at amortized cost - this portfolio classifies financial assets and financial liabilities that are measured at amortized cost in accordance with IFRS 9 - Financial Instruments (items 4.1.2 and 4.2.1). Financial assets measured at fair value through other comprehensive income - this portfolio classifies financial assets measured at fair value through other comprehensive income in accordance with IFRS 9 - Financial Instruments (item 4.1.2.A). Financial assets that are measured at fair value through profit or loss - this portfolio classifies a financial asset that does not meet the requirement that the related cash flows comprise only the payment of principal and interest on the outstanding principal amount and is therefore measured at fair value through an income statement in accordance with IFRS 9 - Financial Instruments (item 4.1.4). Financial assets held for trading - This portfolio classifies financial assets and financial liabilities held for trading in accordance with IFRS 9 - Financial Instruments (Appendix A, Definitions of Concepts). RECOGNITION OF FINANCIAL ASSETS Financial assets measured at fair value through other comprehensive income, measured at fair value through profit or loss and held for trading, are recognized in the balance sheet at the settlement date, i.e. on the date on which the Bank settled the obligation to purchase or settle receivable from sale of property. Financial assets measured at amortized cost are recognized in the balance sheet at the settlement date.


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DERECOGNITION AND FINANCIAL MEASUREMENT OF FINANCIAL ASSETS Financial assets are initially recognized at cost, including transaction costs. The cost of the acquisition represents the fair value of resources given for for financial assets or received for a financial liability. After initial recognition, all financial assets measured at fair value through other comprehensive income, measured at fair value through profit or loss and held for trading, are stated at fair value on a daily basis. Financial assets measured at amortized cost are stated at amortized cost less any impairment losses. Amortized cost is calculated using the effective interest rate method. Premiums and discounts, including initial transaction costs, are included in the carrying amount of the instrument and are amortized on the basis of the effective interest rate of the instrument. The fair value of financial assets is based on the daily market price without deducting transaction costs. If the discounted cash flow method is used, the estimated future cash receipts are based on the best management estimate and the discount rate is the market rate valid on the balance sheet date for a instrument of similar characteristics and conditions. The fair value of derivative instruments not traded on a regulated market is estimated on the basis of the amount of receipts or expenditures that the Bank would have in case of termination of the contract at the balance sheet date, taking into account the current market conditions and the credit risk of the counterparty. Gains or losses on financial assets classified at fair value are recognized in the income statement. Gains or losses on financial assets measured at fair value through other comprehensive income are recognized directly in equity except for impairment losses and foreign exchange differences until the derecognition of instruments, when cumulative gains and losses that had previously been recognized in equity are recognized in the income statement. IMPAIRMENT LOSSES OF FINANCIAL ASSETS Financial assets are reviewed at the balance sheet date to establish the existence of objective evidence of impairment loss. If there is such an indication, the recoverable amount of the asset is estimated. The recoverable amount of financial assets measured at amortized cost is calculated as the present value of the expected future cash flows discounted at the original effective interest rate instrument. If future cash flows are expected within one year from the balance sheet date, cash flows need not be discounted. Recoverable amount of investment in securities that is measured at amortized cost is calculated as the present value of expected future cash receipts and expenses, discounted at the original effective interest rate, as explained in the impairment policies of financial instruments. A recognized impairment loss on securities or receivables measured at amortized cost is charged if the subsequent increase in recoverable amount can be objectively associated with an event occurring after recognition of impairment loss. Revenue can not exceed the value of the original loss.


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DERECOGNITION OF FINANCIAL ASSETS Financial assets are derecognised when the Bank ceases to have control over the contractual rights related to that asset, i.e. when the rights have been realized, due or relinquished. A financial liability is derecognised if the contractual obligation has been settled, corrected or expired. When assets are measured at fair value through other comprehensive income that is measured at fair value through profit or loss and held for trading, their recognition and related receivables from customers are discontinued on the date of settlement of the receivable sold. Assets measured at amortized cost are derecognised on the date on which the Bank loses control over them. SPECIAL FINANCIAL INSTRUMENTS Investments in equity securities Stocks or shares in companies are included in equity securities. Equity securities give the Bank the right to participate in the company's profits and assets after the rights of the creditor and other financial providers are met. Equity securities are classified as financial assets that are measured at fair value through profit or loss and held for trading. Equity securities classified as financial assets that are measured at fair value through profit or loss and held for trading are adjusted on a daily basis with fair value. For equity securities quoted on an active market, fair value is determined on the basis of the closing price. If the equity securities are not quoted in an active market, they can be stated at fair value if fair value can be measured reliably. It is considered that fair value can be measured reliably if:

• the change in value within a reasonable range of fair value estimates of the same instrument is not significant, or

• the reliability of different estimates within a range of estimates can reasonably be estimated and used when estimating fair value.

If a number of reasonable estimates of the fair value of the equity instrument are significant and the probability of different estimates cannot reasonably be estimated, such an instrument is not measured at fair value but at cost. The sale of a portion of a portfolio of a particular security is recorded at the average book value of the investment. When investing, the difference between net investment income and the carrying amount of the investment is recognized as gain or loss on sale. Loans to banks and customers Loans include short-term and long-term receivables based on:

• approved loans and advances

• payments made on guarantees used framework loans If there is a permanent decrease in the value of loans and if there is a lack of objective evidence that the claim will not be fully settled, the value adjustments (provisions) of the placements that identify the potential losses on an individual basis has to be done. Depending on the level of coverage and the quality of the collateral, the balance sheet and off-balance sheet receivables of the bank are allocated to the appropriate groups A, B, and C in accordance with the provisions of


22

the Decision on the classification of placements and off-balance sheet liabilities of credit institutions. In addition to these provisions, provision is made for losses or collective impairment on placements classified in risk category A according to the Methodology for the preparation of IFRS 9. Provisions or impairments of the placements referred to in the previous paragraph are charged at the cost of provisions. If the loan is uncollectible and all legal proceedings are completed and the final amount of loss is known, the loan is written off. If, in the following period, the amount of impairment loss is reduced by billing, the amount charged is recognized in the income statement. Contracts with the right of repurchase The Bank contracts the purchase (sale) of the investment by negotiating the re-sale (purchase) of substantially the same investments at a certain date in the future at a fixed price. Investments purchased with a repurchase obligation in the future are not recognized in the balance sheet, but expenditures under these contracts are recognized as loans granted to banks or customers. It is also noted that the purchased receivables are secured by appropriate securities from the repurchase agreement. Investments sold under a repurchase agreement are further recognized in the balance sheet and are recognized in accordance with the accounting policies for financial assets available for sale or held-to-maturity assets, whichever is the most appropriate. Investment income receivables are presented as liabilities to banks or customers. The difference between the amount of sales and re-purchase is recognized on the basis of the calculation over the transaction period and is shown as income in the income statement. 3.9. Fair value of financial instruments Fair value of financial instruments being traded on active markets shall be determined on each reporting date, with respect to quoted market prices or distributor's quoted prices, without decrease for transaction costs. Fair value of financial instruments not being traded on active markets shall be determined through the use of value estimate techniques. Such techniques may include the use of new, non-biased market transactions; use of current fair value of another similar instrument; analysis of discounted cash flow, or other models of value estimation.

3.10. Property, plant and equipment Plant and equipment are stated at cost less accumulated depreciation and / or accumulated impairment losses, and make tangible assets if their useful life is longer than one year, and single value is greater than HRK 3,500 at the acquisition date. Cost includes purchase price, the cost of spare parts, plant and equipment, borrowing costs for long-term construction projects, and other dependent costs and estimated future costs of dismantling, if recognition conditions are met, while the liability is recorded as commission.

Land and property are recorded at cost less accumulated depreciation of property and asset impairment losses recognized after the date of revaluation, on the basis of periodic evaluation by professional appraisers.


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Depreciation is calculated so to write-off the cost of the assets, except land and investments in progress, over their estimated useful lives using the straight-line method at the following rates:

D E S C R I P T I O N 2020

2019

% %

Computer equipment 25 25 Furniture 14.3 14.3 Personal vehicles 25 25 Other equipment 14.3 - 25 14.3 - 25

Depreciation is calculated separately by each item of assets till it is fully depreciated. Property, plant and equipment and any of their significant part initially recognized is derecognized upon the full write-off or when no future economic benefits are expected from its use or disposal. Any gains or losses from disposal of certain asset are determined as difference between sales revenue and carrying amount of that asset and are recognized as expense or income in the Income statement. The assets’ residual carrying value, useful life and methods of depreciation are reviewed at each financial year end, and adjusted if appropriate. 3.11. Intangible assets Intangible assets include IT programmes and leasehold investments initially measured at cost and depreciated on a straight line basis during the estimated useful life. Intangible assets acquired separately are measured at initial cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and eventual accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in the statement of comprehensive income in the year in which the expenditure occurred. The useful lives of intangible assets are assessed as either limited (finite) or unlimited (indefinite). Intangible assets with finite lives are amortised over the useful economic life and impaired whenever the conditions are met. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year end. For the purpose of preparation of these financial statements the Bank calculated depreciation of intangible assets at the following rates:

D E S C R I P T I O N 2020 2019

% %

Investments in property of third parties 3.3 - 10 3.3 - 10 Software 10 - 25 10 - 25 Other intangible assets 20 - 50 20 - 50

The amortisation expense on intangible assets with finite lives is recognised in the Income Statement in the expense category consistent with the function of the intangible asset.


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Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash generating unit level.

3.12. Acquired tangible assets Acquired assets in exchange for uncollected receivables on placements are recorded at the lower of net book value and net realizable value on the basis of appraisal. 3.13. Deposits Deposits are shown at the level of deposited amounts increased for accounted interest. Foreign currency deposits and the deposits in kunas with currency clause are accounted at currency rate at the date of transaction and at the end of the accounting period at the balance sheet date. 3.14. Hybrid instruments Hybrid instruments represent long term deposits with possibility of conversion into shares. The Bank is obliged to make conversion of a liquid hybrid instrument into shares if adequacy of capital falls under 75% of the minimal prescribed liquidity, unless the existing shareholders pay the necessary capital within 90 days from the date of the deviation from the prescribed adequacy value is established. The owners of hybrid instruments have the possibility to buy Bank's shares in case of increase of the basic Bank’s capital. Value of shares is not defined in advance. 3.15. Share capital and reserves Share (basic) capital represents undistributed capital of the Bank. Profit, after appropriation into legal reserves and the payment of dividends, has to be transferred into reserves. Reserves include legal reserves of the Bank, retained profits and other reserves prescribed by Statutes or Assembly's Decision. 3.16. Cash flow statement For the cash flow reporting purposes, cash and cash equivalents are defined as cash, placements with banks with remaining maturity up to 90 days; treasury bills of the Ministry of Finance and bills of exchange of trading companies with remaining maturity up to 90 days.

3.17. Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision maker, i.e. the function that allocates resources and evaluates the wok of operational segments, has been identified as the Bank’s Liquidators who reache strategic decisions. The Bank identified four primary segments: Corporate, Retail, Banks and Other. The primary segmental information is based on the internal reporting structure of business segments. Where it was possible. the positions of the balance sheet and Statement of Comprehensive Income were shown by mentioned segments.

3.18. Regulatory requirements The Bank is subject to the regulatory requirements of the Croatian National Bank. These regulations include limits and other restrictions pertaining to minimum capital adequacy


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requirements, classification of loans and off-balance sheet commitments and provisioning to cover credit risk, liquidity, interest risk and risk related to foreign currency position. 3.19. Use of estimates The preparation of the financial statements in accordance with the International Financial Reporting Standards (‘’IFRS’’) requires that the Bank’s Management Board makes estimates and assumptions that affect the amounts reported in financial statements and accompanying notes. The estimates and accompanying notes have been made based on historical experience and various other factors that are believed to be realistic in the given circumstances and information available at the date of preparation of financial statements, the results of which form the basis for judgments about carrying values of assets and liabilities that are not easily ascertainable from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which they are incurred only if they affect that period; or in the period in which they are incurred and in the future periods if they affect current and future periods. The assessment of provisions for credit losses represents the best estimate of the management's risk of default and expected credit losses on financial assets, both for balance sheet positions but also for excluded interest claims recognised in balance sheet. Balance sheet and off-balance sheet exposures are included in the Bank's total exposure to customer. Bank placements are provided for the most part by collateral, of which the most important are real estate. The valuation of real estate represents the best estimate of the Liquidator, but this estimate contains uncertainty. Historical transactions, as well as transactions in 2020, confirmed that realized foreclosed property values are higher than the Liquidators' estimates adjusted to CNB regulations and recognised in the financial statements. As the Bank is in liquidation, the classification of the portfolio is retained with the aim of monetising within the planned maturities, until the end of the planned liquidation deadline, and by selling if the planned liquidation period is not extended until the maturity of the financial instrument. In particular, the bank is considering the timing of a significant increase in credit risk. As the Bank's loan position is mainly targeted at legal entities, credit risk is considered individually for each significant exposure and aggregate for the group of products. Indicators for possible impairment are based on days of delay, internal credit risk assessments based on historical information, current and forward-looking information, corrected for macroeconomic indicators and expectations. The required value adjustment or provision is determined on the basis of the measured expected credit loss calculated as a product of the probability of default, the amount of expected loss due to default and exposure to customers who are defaulted over the remaining expected life of the financial instrument and discounted at the effective interest rate as at the balance sheet date. Expected exposure losses classified as 'level 1' measure the expected loss in the next 12 months, while exposures classified as 'level 2' measure the expected loss by the end of the remaining expected life of the financial instrument and are exposures with a significant credit risk increase . On this basis, the Bank did not have a negative net effect on the value adjustment or increase of provisions on the balance sheet.


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3.20. Events after the reporting date Events after the balance sheet date are those events which have positive or negative effects and which emerged between the balance sheet date and the date of approving the issue of the financial statements. The Bank shall coordinate the amounts which it recognized in its financial statements for events after the balance sheet date which need adjustment. NOTES TO THE STATEMENT OF PROFIT AND LOSS

4. Interest income

D e s c r i p t i o n

2020. 2019.

HRK HRK

Corporate 101,644 230,241

Financial institutions 262 297

Non-profit institutions 0 68,507

Citizens 585,484 2,076,072

Other 0 1,993

Value adjustment of interest income 458 (124)

Total 687,848 2,376,986

5. Interest expenses


2020. 2019.

HRK HRK

Corporate 0 2

Citizens 67,689 492,704

Foreign customers 125,738 135,930

Total 193,427 628,635

6. Fees and commission income


2020. 2019.

HRK HRK

Corporate 4,340 5,289

Financial institutions 1,700 2,599

Total 6,040 7,888

7. Fees and commission expenses


2020. 2019.

HRK HRK

Corporate and financial institutions 34,385 75,057

Foreign customers 27,246 4,242

Total 61,631 79,299


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8. Net income from trade, fair value of financial assets and exchange rate differences


2020. 2019.

HRK HRK

Loss from currency trade with (153) (5,289)

Profit / loss from reducing foreign currency balance sheet items to ST (8,404) 6,945

Profit from reducing balance sheet items with a currency clause to UT 64,345 16,569

Total 55,788 18,226

9. Other expenses


2020. 2019.

HRK HRK

Employees /i/ 3,292,196 4,706,323

Depreciation of long-term assets 697,818 766,301

Depreciation of foreclosed property 0 32,893

Disposal of long-term assets 5,598 306,834

Other operating costs 1,934,743 1,607,736

Total 5,930,354 7,420,088

/i/ Employees' costs are shown as follows:


2020. 2019.

HRK HRK

Net salaries 1,729,143 2,265,777

Contributions from and on salaries 973,995 1,162,783

Taxes and surtaxes from salaries 490,619 670,322

Other employees’ costs 98,438 146,174

Severance pay 0 461,268

Total 3,292,196 4,706,323

/ii/ Other operating expenses are shown as follows:


2020. 2019.

HRK HRK

Deposit insurance premiums 5,341 60,369

Material and similar expenses 88,348 106,488

Reimbursements to the Supervisory Board 145,793 146,533

IT services 227,643 248,136

Services of attorneys, notaries and counsellors 31,330 95,363

Other intellectual services 84,375 55,913

Rental costs 518,964 513,391

Other services expenses 34,165 31,953

Cost of advertising, propaganda and entertainment 3,360 11,003

Other 795,425 338,588

Total 1,934,743 1,607,736


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10. Impairment and provisions costs


2020. 2019.

HRK HRK

Impairment of loans and advances to clients (Note 15) (453,855) 1,488,892

Impairment of other assets (Note19) 26,090 3,775

Provisions for contingent liabilities 0 1,423

Provisions for court disputes (27,659) (254,495)

Total (455,425) 1,239,595

11. Corporate income tax According to Article 18 of the Profit Tax Act, until the date of the opening of the liquidation procedure (from 1 January to 20 June 2018), the Bank calculated the profit tax at the rate of 18%. The profit tax calculation for the stated period is shown below:

D e s c r i p t i o n 01.01.18. - 20.06.18.

HRK

Accounting loss before taxation (9,314,371)

Items which increase tax base 3,424,866

Items which decrease tax base (194,845)

Loss after increase and decrease (6,084,350)

Tax loss carried forward (19,046,217)

Corporate income tax base 0

Income tax rate 18%

Corporate income tax liability (deferred tax assets) 0

Tax loss for transfer (25,130,567)

The transferred tax losses are shown below:

Description 2017. 1.1. - 20.06.

2018.

HRK HRK

Tax loss 5,612,603 6,084,350

Transferred tax loss 0 5,612,603

Total tax loss 5,612,603 11,696,953

To be transferred to the next tax period

5,612,603 11,696,953

According to the Profit Tax Act, the liquidation period is one tax period and the Bank did not disclose the profit tax for the period from 21 June 2018 to 31 December 2018.

The Bank has not recognized the deferred tax assets in the financial statements that arise from the past tax losses transferred in the previous periods due to the uncertainty of profit making in future tax periods.


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NOTES TO THE STATEMENT OF FINANCIAL POSITION / BALANCE SHEET 12. Cash

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Cash on foreign current accounts with foreign banks 23,754 1,335,738

Cash on foreign current accounts with domestic banks 44,184 5,996,347

Giro account with domestic banks 26,659,382 27,305,667

Total 26,727,320 34,637,752

Due to the process of regular liquidation of the Bank, all accounts with CNB were closed and all funds were transferred to a newly opened account in a commercial bank through which the Bank performs its operations in liquidation. 13. Receivables from the Croatian National Bank

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Mandatory reserves

- HRK 325,646 1,047,282

Total 325,646 1,047,282

The Bank is required to deposit mandatory reserves with the CNB in the amount of 12% of short-term and long-term deposits to which the reserve requirement is calculated. The Bank cannot use the amount of required reserves for its daily operations.

HRK portion of so calculated mandatory reserves is increased to 75% of the calculated reserve requirement on foreign currency deposits and loans. The percentage of kuna reserve requirement is 70%. Kuna reserve requirement is deposited with the National Bank through the transfer of the funds accrued on the account of statutory reserves within CNB.

With the CNB Decision on Obligatory Reserve made on 15 December 2015, a 100% maintenance of the foreign exchange reserve requirement was introduced with effect from 13 January 2016. Also, the obligation of banks was introduced that from the calculation in May 2016 2% of the foreign exchange reserve requirement hold the average daily balance of funds on their own Euro currency settlement accounts with the CNB, ie on their own PM accounts in the TARGET2-HR system Due to the Bank's entry into the regular liquidation procedure in accordance with the Mandatory Reserve Decision, the Bank is not required to maintain the kuna and foreign reserve requirement until the kuna reserve requirement continues to be allocated. 14. Financial assets at fair value through other comprehensive income

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Shares

- HRK 25,000 25,000

Total 25,000 25,000


30

15. Loans and advances to clients

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Corporate 33,637,512 38,167,381

Citizens 5,479,152 6,755,878

Non-profit institutions 0 1,166,059

Impairment (19,322,109) (19,973,142)

Total 19,794,555 26,116,175

/i/ Loans to customers by categorisation of placements are shown as follows:

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Non purpose loans in cash 1,550,090 2,928,062

Investment loans 2,962,700 3,331,022

Loans to construction 574,582 574,582

Loans to tourism 2,672,498 3,017,575

Loans for current assets 8,799,038 11,003,603

Overdrafts upon balances of transaction accounts 118,912 149,553

Mortgage loans 900,665 1,498,049

Other loans 20,225,074 22,157,566

Receivables for interest and fees upon loans 1,313,105 1,429,305

Impairment (19,322,109) (19,973,142)

Total 19,794,555 26,116,175

/ii/ Changes upon impairment, i.e. provisions for possible losses are shown as follows:


2020. 2019.

Impairment

Special provisions

for identified cumulative

losses

Total Impairment

Special provisions for

identified cumulative

losses

Total

HRK HRK HRK HRK HRK HRK

Balance as at 1 January 19,549,365 423,777 19,973,142 27,905,718 769,924 28,675,641

Net Impairment and provisions 453,855 (129,840) 324,015 (1,488,892) (346,147) (1,835,039)

Write-offs and foreign

currency differences (975,048) (975,048) (6,867,460) 0 (6,867,460)

Balance as at 31 December 19,028,172 293,937 19,322,109 19,549,365 423,777 19,973,142

Pursuant to the Bank's policies in accordance with the applicable legislation, the Bank shall allocate group-based impairment provisions on a group basis that are determined in the credit portfolio on the basis of prior experience. The amount of such reserves determined by the Bank shall be in accordance with the regulations of the Croatian National Bank (CNB).


31

16. Property, plant and equipment


Equipment

Furniture and transport vehicles

Buildings

Other tangible assets

Total property, plant and

equipment

HRK HRK HRK HRK

Cost

Balance as at 1 January 2019 2,627,124 687,344 1,629,984 5,958 4,950,410

Additions 10,634 0 0 0 10,634

Write-offs and disposals (358,758) (157,054) 0 0 (515,811)

Balance as at 31 December 2019 2,279,001 530,290 1,629,984 5,958 4,445,233

Additions 11,875 0 0 0 11,875


Balance as at 31 December 2020 1,611,008 306,065 1,629,984 5,958 3,553,016

Impairment

Balance as at 1 January 2019 1,995,950 575,465 0 0 2,571,415

Depreciation 215,748 41,189 81,499 0 338,437


Tangible asset impairment (18,752) 0 0 0 (18,752)

Balance as at 31 December 2019 1,889,093 459,600 81,499 0 2,430,192

Depreciation for 2020 166,667 19,729 83,659 0 270,055


Tangible asset impairment 1,389,723 256,295 165,158 0 1,811,176

Balance as at 31 December 2020 1,995,950 575,465 0 0 2,571,415

Net book value as at 1 January 2019 631,174 111,879 1,629,984 5,958 2,378,996

Net book value as at 31 December 2019 389,907 70,690 1,548,485 5,958 2,015,040

Net book value as at 31 December 2020 221,286 49,770 1,464,826 5,958 1,741,839


32

17. Intangible assets


Software Other intangible

assets Total intangible

assets

HRK HRK HRK

Cost

Balance as at 1 January 2019 3,889,981 38,488 3,928,470

Additions 7,366 0 7,366

Write-offs and disposals 0 0 0

Balance as at 31 December 2019 3,897,347 38,488 3,935,836

Additions 0 0 0



Impairment

Balance as at 1 January 2019 2,910,478 38,488 2,948,968

Depreciation 427,851 0 427,851


Intangible asset impairment 0 0 0


Depreciation for 2020 427,763 0 427,763


Intangible asset impairment 0 0 0


Net book value as at 1 January 2019 979,503 0 979,503

Net book value as at 31 December 2019 559,018 0 559,018

Net book value as at 31 December 2020 131,255 0 131,255

18. Acquired assets

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Acquired assets gained and recognized in the amount of the exposure on the acquisition date, related to assets foreclosed by the Bank in exchange for uncollected receivables of loans and advances

200,211

0

Total 200,211 0


33

19. Other assets

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Receivables for fees and commissions 300 21,714

Receivables for overpaid membership fees 4,404 3,220

Receivables for refunds of sick leaves 888 888

Other receivables 67,585 57,472

Prepaid expenses of the future period 157,942 269,839

Provisions for possible losses (3,284) (29,374)

Total 227,834 323,759

/Movements on impairments are shown as follows:

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Balance as at 1 January (29,374) (33,149)

Net Impairment 26,090 3,775

Balance as at 31 December (3,284) (29,374)

20. Clients' deposits

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Deposits on demand /i/ 757,199 941,926

Timed deposits /ii/ 752,021 9,406,866

Total 1,509,220 10,348,791

/i/ Demand deposits are shown as follows:

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Demand deposits - citizens

- HRK 705,217 881,615

- foreign currency 13,271 21,631

Total citizens 718,488 903,246

Demand deposits – trade companies

- HRK 722 861

- foreign currency 0 84

Total trade companies 722 945

Deposits – foreigners

- HRK 4,692 4,692

- foreign currency 33,297 33,043

Total foreigners 37,989 37,735

Total demand deposits 757,199 941,926


34

/ii/ Time deposits are shown as follows:

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Time deposits - citizens

- HRK 0 1,352,639

- foreign currency 752,021 8,054,226

Total citizens 752,021 9,406,866

21. Hybrid instruments

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Hybrid instruments of foreign legal entities 3,687,224 3,687,498

Total 3,687,224 3,687,498

22. Liabilities for received loans

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Loans from domestic financial institutions 2,365,000 2,627,778

Total 2,365,000 2,627,778

23. Other liabilities

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Trade payables 58,328 81,435

Liabilities to employees for net wages and salaries 169,129 151,859

Liabilities for taxes and contributions from and on salaries 130,525 116,700

Liabilities for other taxes and contributions 35,325 4,001

Overpayments upon loans 10,711 40,196

Liabilities from balancing of accounts 420,037 357,305

Provisions for court disputes (ii) 2,397 680,980

Other liabilities 0 1,726

Total 826,452 1,434,202


35

Movements in provisions are shown as follows:

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Balance as at 1 January 477,742 477,742

New provisions for contingent liabilities 203,238 0

New provisions for court disputes 27,659 304,645

Cancellation of provisions for contingent liabilities 0 (1,423)

Cancellation of provisions for court disputes (706,242) (99,983)

Balance as at 31 December 2,397 680,980

24. Share capital In line with the decision of the General Assembly dated 29 December2014 the share capital was increased by payment in cash from the amount of HRK 58,089,000 by the amount of HRK 5,000,000 to the amount of HRK 63,089,000; issuing 50,000 new ordinary shares, with the nominal value of HRK 100. The share capital of the Bank is divided into 630,890 shares with a nominal value of HRK 100 each. The increase in subscribed capital was recorded in the Court Register on 4 February 2015.

In line with the decision of the General Assembly dated 7 June 2016, a simplified decrease of the share capital was implemented from the amount of HRK 63,089,000 by the amount of HRK 12,617,800 to the amount of HRK 50,471,200 as well as the decrease of the nominal amount of the Bank`s share from 100 (one hundred) HRK to 80 (eighty) HRK each in order to cover accumulated loss from previous years. In line with the decision of the General Assembly of the Bank from 7 June 2016, the decision was reached to increase the share capital by contribution, i.e. to increase the share capital from the amount of HRK 50,471,200 HRK by the amount of 19,528,800 HRK to the amount of HRK 70,000,000 HRK, all by issuing 244,110 new ordinary shares each having a nominal value of HRK 80. After the increase, share capital amounts HRK 70,000,000 HRK divided into 875,000 ordinary shares.

The first application of IFRS 9 for which the Bank's Management has conducted a detailed analysis has appropriately amended the internal acts related to the effects of the application of this Standard. The Bank's management adopted the standard after its effective date and its impact was assessed and quantified and recorded in the business books starting on 1 January 2018. The impact of first-time adoption of IFRS 9 is recorded as impairment of reserves and increase in financial assets losses through other comprehensive income of a total of HRK 2,106,999.

Until 31 December 2017, the bank calculated the aggregate provisions on the basis of the Decision on classification of placements and off-balance sheet liabilities of credit institutions. The amount of the provision was 1% of the base. By applying IFRS 9 Financial Instruments as of 1 January 2018, the Bank has developed its own group-based booking methodology where it will conduct a group-based impairment estimate if the gross exposure to the debtor or group of related persons does not exceed the amount of HRK 500,000 (Decision on the classification of exposures to risk groups and the method of determining credit losses, Article 8 paragraph 2) and is not secured by an adequate insurance instrument. The bank divided the property into homogeneous groups (exposures):

1. Loans, off-balance sheet liabilities and receivables a. Citizens b. Legal persons


36

c. Other claims 2. Securities a. State b. Other issuers c. Shares and funds 3. Accounts with the Banks and the CNB

Pursuant to the provisions of IFRS 9 - Financial Instruments, PD and LGD are calculated and the percentage of provisions for each exposure is calculated. 25. Loss per share

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

(Loss)/Profit for the year (5,839,992) (4,368,425)

Weighted average number of shares 875,000 875,000

Earnings/Loss per share (6,67) (4,99)

26. Cash and cash equivalents

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Giro account with domestic banks 26,703,566 33,302,014

Deposits with maturity dates of up to 3 months 23,754 1,335,738

Total cash and cash equivalents 26,727,320 34,637,752

27. Concentration of Assets to the Republic of Croatia

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Mandatory deposits with the CNB 325,646 1,047,282

Total 325,646 1,047,282

Concentration of assets to the Republic of Croatia on 31 December 2019 represents 1.62% while on 31 December 2018 it represented 3% of the Bank’s assets. 28. Transactions with related parties Related parties are those in which one party is controlling or has a significant influence in governing the financial and operating business decisions of other party. Bank activities with the related parties are conducted in the course of ordinary operations, which include loans and deposits assignation. Mentioned transactions are conducted under commercial conditions and market rates, respectively, prices. Total amount of transactions with related parties, closing balances at the end of a year and related income and expense for the year are shown as follows:


37

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Shareholders with 5 and more ordinary shares 3,687,224 3,687,498

Total deposits and hybrid instruments 3,687,224 3,687,498

D e s c r i p t i o n 2020. 2019.

HRK HRK

Income

Members of the Management Board 0 0

Total income 0 0

Expenses

Shareholders with 5 and more ordinary shares 152,984 142,145

Total expenses 152,984 142,145

/i/ Salaries of the Liquidators are shown as follows:

D e s c r i p t i o n 2020. 2019.

HRK HRK

Net wages and salaries 716,219 752,690

Taxes and contributions 639,971 576,281

Total 1,356,190 1,328,971

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Loans and advances

C.I.M. BANQUE 23,754 1,335,738

Total loans and advances 23,754 1,335,738

Deposits and hybrids

COFISI S.A. 3,687,224 3,687,498

Total deposits and hybrids 3,687,224 3,687,498

D e s c r i p t i o n 31.12.2020. 31.12.2019.

HRK HRK

Interest and received commissions (fees) costs

C.I.M. BANQUE 27,246 16,397

COFISI S.A. 125,738 125,748

PRIMORSKE NEKRETNINE D.O.O. 0 0

Total interest expense and commission expenses (fees)

152,984 142,145


38

29. FINANCIAL RISK MANAGEMENT Interest risk The following table represents the carrying value of the Bank's assets and liabilities, categorized by the earlier contractual re-pricing or maturity, depending which term is earlier as at 31 December 2020.

31.12.2020.

Up to 1

month

From 1 to 3

months

From 3 to

12 months

From 1 to 3

years

Over 3

years Interest free TOTAL

HRK HRK HRK HRK HRK HRK HRK

ASSETS

Cash 26,727,321 0 0 0 0 0 26,727,321

Receivables from the CNB 0 0 0 0 0 325,646 325,646

Financial assets available

for sale 0 0 0 0 0 25,000 25,000

Loans and advances to clients

219,853 291,038 1,054,828 1,909,578 3,081,792 13,237,466 19,794,555

Property, plant and equipment

0 0 0 0 0 1,741,839 1,741,839

Intangible assets 0 0 0 0 0 131,255 131,255

Acquired assets 0 0 0 0 0 200,211 200,211

Other assets 0 0 0 0 0 227,834 227,834

Total assets 26,947,174 291,038 1,054,828 1,909,578 3,081,792 15,889,251 49,173,660

LIABILITIES

Demand deposits 0 0 757,199 0 0 0 757,199

Hybrid instruments 0 0 0 3,687,224 0 0 3,687,224

Time deposits 0 752,021 0 0 0 0 752,021

Liabilities for received

loans 81,336 12,513 244,008 750,794 1,276,349 0 2,365,000

Other liabilities 0 0 0 0 0 826,451 826,451

Total liabilities 81,336 764,535 1,001,207 4,438,018 1,276,349 826,451 8,387,896

CAPITAL

Shared capital 0 0 0 0 0 70,000,000 70,000,000

Own shares 0 0 0 0 0 0 0

Capital gains 0 0 0 0 0 0 0

Revaluation reserves 0 0 0 0 0 0 0

Reserves 0 0 0 0 0 (2,078,999) (2,078,999)

Accumulated loss 0 0 0 0 0 (21,295,244) (21,295,244)

Loss for the year 0 0 0 0 (5,839,993) (5,839,993)

Total capital 0 0 0 0 0 40,785,765 40,785,765

Total liabilities and capital

81,336 764,535 1,001,207 4,438,018 1,276,349 41,612,216 49,173,660

Net assets/liabilities and capital

26,865,838 (473,496) 53,621

(2,528,440) 1,805,442 (25,722,965) 0


39

The following table represents the carrying value of the Bank's assets and liabilities, categorized by the earlier contractual re-pricing or maturity, depending which term is earlier as at 31 December 2019.

31.12.2019.

Up to 1 month

From 1 to 3 months

From 3 to 12 months

From 1 to 3 years

Over 3 years Interest free TOTAL

HRK HRK HRK HRK HRK HRK HRK

ASSETS

Cash 34,637,752 0 0 0 0 0 34,637,752

Receivables from

the CNB 0 0 0 0 0 1,047,282 1,047,282

Financial assets

available for sale 0 0 0 0 0 25,000 25,000

Loans and advances to clients

254,609 285,522 2,050,089 2,456,922 3,965,740 17,103,294 26,116,175

Property, plant and equipment

0 0 0 0 0 2,015,040 2,015,040

Intangible assets 0 0 0 0 0 559,018 559,018

Other assets 0 0 0 0 0 323,759 323,759

Total assets 34,892,361 285,522 2,050,089 2,456,922 3,965,740 21,073,393 64,724,027

LIABILITIES

Demand deposits 0 0 941,926 0 0 0 941,926

Hybrid instruments 0 0 0 0 3,687,498 0 3,687,498

Time deposits 1,254,446 3,304,079 4,039,052 809,289 0 0 9,406,866

Liabilities for

received loans 75,079 0 225,238 900,953 1,426,508 0 2,627,778

Other liabilities 0 0 0 0 0 1,434,202 1,434,202

Total liabilities 1,329,525 3,304,079 5,206,216 1,710,242 5,114,006 1,434,202 18,098,270

CAPITAL

Subscribed capital 0 0 0 0 0 70,000,000 70,000,000

Reserves 0 0 0 0 0 (2,078,999) (2,078,999)

Transferred loss 0 0 0 0 0 (16,926,819) (16,926,819)

Loss for the year 0 0 0 0 (4,368,425) (4,368,425)

Total capital 0 0 0 0 0 46,625,757 46,625,757

Total liabilities and capital

1,329,525 3,304,079 5,206,216 1,710,242 5,114,006 48,059,959 64,724,027

Net assets/liabilities and capital

33,562,836 (3,018,557) (3,156,127) 746,680 (1,148,266) (26,986,566) 0


40

Table below shows effective interest rates for interest bearing assets and liabilities:

D e s c r i p t i o n 2020. 2019.

% %

Assets

Loans and advances to clients 1.50 – 7.82 2.00 – 11.90

Liabilities

Time deposits 1.75 – 3.50 0.01 – 3.25

Concentration of assets, liabilities and off-balance sheet items


31 December 2020 31 December 2019

Assets Liabilities

Off-balance sheet items

Assets Liabilities Off-balance sheet items


Geographic region

Republic of Croatia 47,095,846 4,681,927 0

60,814,195 14,372,229 0

Europe 23,754 130,304 0

1,335,774 3,723,796 0

Other countries 0 2,109 0

0 2,245 0

Total geographic region 47,119,600 4,814,340 0

62,149,969 18,098,270 0

Sector

Republic of Croatia 0 21,942 0

0 16,758 0

The Croatian National Bank 325,646 0 0

1,047,282 0 0

Trade 14,708,412 67,985 0

19,461,349 761,502 0

Finance 26,646,309 3,772,423 0

34,532,856 3,254,265 0

Tourism 120,818 0 0

143,024 0 0

Industry 2,985,033 3,160 0

3,717,626 4,221 0

Citizens 2,328,090 916,888 0

3,243,724 14,023,822 0

Non-residents 0 4,943 0

0 4,939 0

Other 5,292 26,998 0

4,108 32,763 0

Total analysis by sector 47,119,600 4,814,340 0

62,149,969 18,098,270 0

Fer value of financial assets and liabilities Fair value represents the amount in which funds can be exchanged or liabilities settled in the best interest of all parties. Since market prices for the major part of Bank’s financial assets and liabilities are not available, the fair value of these items is based on the Liquidators’ estimates of according to the type of assets and liabilities. According to the Liquidators’ estimation, the market value is not materially different from the book value of all categories of assets and liabilities.


41

Currency risk Bank's foreign currencies and liabilities as at 31 December 2020 are shown as follows:

2020

Total HRK EUR USD Other

HRK HRK HRK HRK HRK

ASSETS

Cash 26,727,321 26,659,382 40,417 27,247 274

Receivables from the Croatian National Bank 325,646 325,646 0 0 0

Financial assets available for sale 25,000 25,000 0 0 0

Loans and advances to clients 20,072,042 16,913,794 3,158,248 0 0

Property, plant, equipment 1,741,839 1,741,839 0 0 0

Intangible assets 131,255 131,255 0 0 0

Acquired assets 200,211 200,211 0 0 0

Receivables for interest and fees 16,449 8,771 7,679 0 0

Other assets 227,834 227,834 0 0 0

Cumulative provisions (293,937) (293,937) 0 0 0

Total assets 49,173,660 45,939,795 3,206,344 27,247 274

LIABILITIES

Demand deposits 757,199 710,631 40,324 5,969 274

Time deposits 703,946 0 703,946 0 0

Hybrid instruments 3,592,800 3,592,800 0 0 0

Liabilities for received loans 2,365,000 2,365,000 0 0 0

Liabilities for interest 142,500 94,425 48,075 0 0

Other liabilities 826,451 588,759 167,241 70,451 0

Total liabilities 8,387,896 7,351,615 959,587 76,420 274

CAPITAL

Subscribed capital 70,000,000 70,000,000 0 0 0

Reserves (2,078,999) (2,078,999) 0 0 0

Transfered loss

(21,295,244)

(21,295,244) 0 0 0

Profit for the year (5,839,993) (5,839,993) 0 0 0

Total capital 40,785,765 40,785,765 0 0 0

Total liabilities and capital 49,173,660 48,137,380 959,587 76,420 274

Net assets/liabilities and capital 0

(2,197,585) 2,246,757 (49,173) 0


42

Assets and liabilities of the Bank by type of currencies as at 31 December 2019 are shown as follows:

2019

Total HRK EUR USD Other

HRK HRK HRK HRK HRK

ASSETS

Cash 34,637,752 27,305,667 5,686,134 1,645,791 160

Receivables from the Croatian National Bank 1,047,282 1,047,282 0 0 0

Financial assets available for sale 25,000 25,000 0 0 0

Loans and advances to clients 26,512,614 21,810,168 4,702,446 0 0

Property, plant, equipment 2,015,040 2,015,040 0 0 0

Intangible assets 559,018 559,018 0 0 0

Receivables for interest and fees 27,339 14,304 13,034 0 0

Other assets 323,759 323,759 0 0 0

Cumulative provisions (423,777) (423,777) 0 0 0

Total assets 64,724,027 52,676,462 10,401,614 1,645,791 160

LIABILITIES

Demand deposits 941,926 887,168 48,021 6,466 270

Time deposits 9,190,273 1,283,500 6,384,863 1,521,909 0

Special investments 3,592,800 3,592,800 0 0 0

Liabilities for received loans 2,627,778 2,627,778 0 0 0

Liabilities for interest 311,291 163,838 69,004 78,449 0

Other liabilities 1,434,202 1,173,265 184,597 76,313 27

Total liabilities 18,098,270 9,728,349 6,686,486 1,683,138 297

CAPITAL

Subscribed capital 70,000,000 70,000,000 0 0 0

Reserves (2,078,999) (2,078,999) 0 0 0

Transfered loss (16,926,819) (16,926,819) 0 0 0

Profit for the year (4,368,425) (4,368,425) 0 0 0

Total capital 46,625,757 46,625,757 0 0 0

Total liabilities and capital 64,724,027 56,354,106 6,686,486 1,683,138 297

Net assets/liabilities and capital 0 (3,677,645) 3,715,128 (37,347) (136)


43

Liquidity risk

Remaining maturity of the Bank's assets and liabilities as at 31 December 2020 is shown as follows:

2020 Up to 1 month

From 1 to 3 months

From 3 to 12 months

From 1 to 3 years Over 3 years TOTAL


ASSETS

Cash 26,727,321 0 0 0 0 26,727,321

Receivables from the CNB 325,646 0 0 0 0 325,646

Financial assets available for sale 0 0 0 0 25,000 25,000

Loans and prepayments to customers 219,853 291,038 1,054,828 1,909,578 16,613,194 20,088,492

Property, plant and equipment 0 0 0 0 1,741,839 1,741,839

Intangible assets 0 0 0 0 131,255 131,255

Acquired assets 0 0 0 200,211 0 200,211

Other assets 0 0 0 0 227,834 227,834

Cumulative provisions 0 0 0 0 (293,937) (293,937)

Total assets 27,272,820 291,038 1,054,828 2,109,789 18,445,186 49,173,660

LIABILITIES Demand deposits 757,199 0 0 0 0 757,199

Time deposits 0 703,946 0 0 0 703,946

Hybrid instruments 0,00 0 0 3,592,799 0 3,592,799

Liabilities for received loans 81,336 12,513 244,008 750,794 1,276,349 2,365,000

Interest liabilities 0 48,075 94,425 0 0 142,500

Other liabilities 826,451 0 0,00 0 0,00 826,451

Total liabilities 1,664,986 764,535 338,433 4,343,593 1,276,349 8,387,896

CAPITAL Subscribed capital 0 0 0 0 70,000,000 70,000,000

Reserves 0 0 0 0 (2,078,999) (2,078,999)

Transfered loss 0 0 0 0 (21,295,244) (21,295,244)

Profit for the year 0 0 0 0 (5,839,993) (5,839,993)

Total capital 0 0 0 0 40,785,765 40,785,765

Total liabilities and capital 1,664,986 764,535 338,433 4,343,593 42,062,114 49,173,660

Net assets/liabilities and capital 25,607,834 (473,496) 716,395 (2,233,804)

(23,616,928) 0


44

Remaining maturity of the Bank's assets and liabilities as at 31 December 2019 is shown as follows:

2019 Up to 1 month

From 1 to 3 months

From 3 to 12 months

From 1 to 3 years Over 3 years TOTAL


ASSETS

Cash 34,637,752 0 0 0 0 34,637,752

Receivables from the CNB 1,047,282 0 0 0 0 1,047,282

Placements with banks 0 0 0 0 25,000 25,000

Financial assets available for sale 254,609 285,522 2,050,089 2,456,922 21,492,811 26,539,953

Property, plant and equipment 0 0 0 0 2,015,040 2,015,040

Intangible assets 0 0 0 0 559,018 559,018

Other assets 0 0 0 0 323,759 323,759

Cumulative provisions 0 0 0 0 (423,777) (423,777)

Total assets 35,939,643 285,522 2,050,089 2,456,922 23,991,851 64,724,027

LIABILITIES

Demand deposits 941,926 0 0 0 0 941,926

Time deposits 1,232,711 3261365,28 3921855,32 774341,48 0 9,190,273

Hybrid instruments 0,00 0 0 3,687,498 0 3,687,498

Liabilities for received loans 75,079 0 225,238 900,953 1,426,508 2,627,778

Interest liabilities 21,735 42,714 117,196 34,948 0 216,593

Other liabilities 1,434,202 0 0,00 0 0,00 1,434,202

Total liabilities 3,705,653 3,304,079 4,264,290 5,397,740 1,426,508 18,098,270

CAPITAL

Subscribed capital 0 0 0 0 70,000,000 70,000,000

Reserves 0 0 0 0 (2,078,999) (2,078,999)

Transferred loss 0 0 0 0 (16,926,819)

(16,926,819)

Profit for the year 0 0 0 0 (4,368,425) (4,368,425)

Total capital 0 0 0 0 46,625,757 46,625,757

Total liabilities and capital 3,705,653 3,304,079 4,264,290 5,397,740 48,052,265 64,724,027

Net assets/liabilities and capital 32,233,990 (3,018,557) (2,214,201) (2,940,818)

(24,060,414) 0

Credit risk

The Bank is exposed to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due. The Bank structures the levels of credit risk by placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis and subject to an annual or more frequent review.

Exposure to credit risk is managed through regular analysis of the ability of existing and potential borrowers to meet interest and capital repayment obligations and by changing these lending limits where appropriate. Exposure to credit risk is also managed in part by obtaining collateral, corporate and personal guarantees.


45

The primary purpose of credit commitments is to ensure that funds are available to a customer as required. Guarantees which represent irrevocable commitments that the Bank will settle the payment to the third parties if the customers are not able to bear the same credit risk as other loans. Contingent credit commitments represent undrawn portions of authorised loans and guarantees. According to credit risk related to contingent credit commitments, the Bank takes on potential loss exposure in the amount equal to total undrawn contingent commitments. However, possible loss amount is lower than total amount of undrawn contingent commitments, as the most of contingent credit commitments is related to maintenance of specific credit standards by customers. The Bank monitors the term of maturity of contingent credit commitments because longer-term commitments generally have a greater degree of credit risk than short-term. 30. GOING CONCERN BASIS For the period from 1 January to 31 December 2018, the Bank realized a loss in the amount of HRK 7,970,287 (from 1 January to 20 June 2018 loss amounting to HRK 9,314,371). As a result of the accumulated losses in previous years, the Bank has been obliged to maintain the regulatory capital level above the minimum statutory amount in the previous periods by continuous recapitalizations.

On 7 March 2018, the Bank's majority owner, CIM Banque Geneve, granted the Bank an unconditional and irrevocable credit line in the amount of EUR 5 million with an interest rate of 1% for the possible needs of the Bank's liquidity shortfall in the liquidation process. The bank may use the specified credit limit unconditionally. The repayment of the proceeds is made to the Bank's ability during the period of liquidation. The term of the credit line is up to the end of liquidation.

On 10 April 2018, the Croatian National Bank analyzed the Bank's Liquidation Plan and other available documentation and gave a positive opinion on it. On 26 June 2018, the Croatian National Bank also annulled the approval of the Bank for the provision of financial and all other services (Decision EROFF-22-020 / 18-ŽJ-BV) as well as other approvals granted to the Bank.

On 21 May 2018, the General Assembly of the Bank issued a Decision on termination of business and initiaton of regular liquidation of the Bank with the date of commencement of regular liquidation on 21 June 2018, and foreseen completion of liquidation on 31 December 2021 with the possibility of extending the liquidation term. The same Assembly appointed the liquidators.

On 26 June 2018, the Croatian National Bank annulled the approval of the Bank for the provision of financial and other services (Decision EROFF-22-020 / 18-ŽJ-BV) as well as other approvals granted to the Bank.

On 30 June 2018, a change in the company, the appointment of a liquidator and the entry of reasons for the termination of the Bank were entered into the Court Register..


46

IV COURT DISPUTES AND POTENTIAL LIABILITIES

The Bank as the plaintiff has 29 active lawsuits and enforcement proceeding due to non-payment upon loans and advances The Bank has made provisions for the stated receivables on loans and placements in accordance with regulations of the Croatian National Bank.

There are 2 court disputes against the Bank with the provision in amount of HRK 2,397. An external solicitor's office and internal legal service are in charge of all court disputes and the Bank relies on their expert estimate in respect of the result of disputes.

V EVENTS AFTER THE REPORTING DATE After the balance sheet date, there were no events that would have a significant impact on the Bank's annual financial statements for the year 2020 which should subsequently be disclosed in relation to that matter.

VI APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS The annual financial statements were signed and authorised for issuing by the Bank’s Liquidators on 19 March 2021.

Signed on behalf of the Liquidators:

Primorska banka d.d. Dolac 3 51000 Rijeka Croatia

PRIMORSKA BANKA d.d. in liquidation, Rijeka Appendix – other legal and regulatory obligations for the year 2020

47

APPENDIX 1 IN ACCORDANCE WITH THE ACCOUNTING ACT AND THE DECISION ON THE STRUCTURE AND CONTENT OF ANNUAL FINANCIAL STATEMENTS OF CREDIT INSTITUTIONS

The basic financial statements have been prepared in accordance with the Decision of the Croatian National Bank ("CNB") on the structure and content of the annual financial statements of credit institutions (Official Gazette 42/2018).

Credit institutions are required to compile the annual financial statements referred to in Article 19 of the Accounting Act (Official Gazette 78/2015, 134/2015, 120/2016, 116/2018, 42/2020 and 47/2020) according to the Decision on the structure and content of the annual financial statements of credit institutions and in accordance with the International Financial Reporting Standards.

The figures in the Statement of Financial Position (Balance Sheet), the Income Statement, the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity are presented in kuna for the current and the previous year. The Bank's annual financial statements for the period ended 31 December 2020 and the accompanying accounting policies and notes as their integral part have been signed and approved by the Bank's Liquidators on 19 March 2021.


48

AOPoznaka

Rbr. bilješke

Prethodna godina Tekuća godina

2 3 4 5

069 669.617 2.376.986

070 590.628 628.634

071

072

073 20.389 7.888

074 113.502 79.299

075 891

076 -7.917

077

078

079

080 -5.016 18.226

081 -96.221 -306.834

082 72.954 116.902

083

084 -49.433 1.505.235

085 4.994.647 6.314.061

086 510.256 799.194

087

088 2.415.951 -1.239.595

089

090

091

092

093

094

095 -7.970.287 -4.368.425

096

097 -7.970.287 -4.368.425

098 0 0

099

100

101 -7.970.287 -4.368.425

102

103

104 -7.970.287 -4.368.425

105 21.539 1.161

106 0 0

107

108

109

110

111

112

113

114

115

116

117

118 21.539 1.161

119

120

121

122

123 21.539 1.161

124

125

126

127 -7.948.748 -4.367.264

2.2.8. Porez na dobit koji se odnosi na stavke koje je moguće reklasificirati u

dobit ili gubitak

3. Ukupna sveobuhvatna dobit tekuće godine (AOP 104 + 105 i AOP 128 + 129)

2.2.4. Instrumenti zaštite od rizika (elementi koji nisu određeni)

2.2.5. Dužnički instrumenti po fer vrijednosti kroz ostalu sveobuhvatnu dobit

2.2.6. Dugotrajna imovina i grupe za otuđenje namijenjene za prodaju

2.2.7. Udjel ostalih priznatih prihoda i rashoda od ulaganja u društva kćeri,

zajedničke pothvate i pridružena društva

2.2. Stavke koje je moguće reklasificirati u dobit ili gubitak (AOP 119 do 126)

2.2.1 Zaštita neto ulaganja u inozemno poslovanje (efektivni udjel)

2.2.2. Preračunavanje stranih valuta

2.2.3. Zaštite novčanih tokova (efektivni udjel)

2.1.8. Promjene fer vrijednosti vlasničkih instrumenata mjerenih po fer vrijednosti

kroz ostalu sveobuhvatnu dobit (zaštićena stavka)


kroz ostalu sveobuhvatnu dobit (instrument zaštite)

2.1.10. Promjene fer vrijednosti financijskih obveza mjerenih po fer vrijednosti

kroz dobit ili gubitak koje se pripisuju promjenama u kreditnom riziku

2.1.11. Porez na dobit koji se odnosi na stavke koje neće biti reklasificirane

2.1.4. Dugotrajna imovina i grupe za otuđenje namijenjene za prodaju

2.1.5. Udjel ostalih priznatih prihoda i rashoda od subjekata koji se obračunava

metodom udjela


kroz ostalu sveobuhvatnu dobit

2.1.7. Dobici ili gubici od računovodastva zaštite vlasničkih instrumenata

mjerenih po fer vrijednosti kroz ostalu sveobuhvatnu dobit, neto

2.1. Stavke koje neće biti reklasificirane u dobit ili gubitak (AOP 107 do 113 + 116 + 117)

2.1.1. Materijalna imovina

2.1.2. Nematerijalna imovina

2.1.3. Aktuarski dobici ili gubici na mirovinskim planovima pod pokroviteljstvom

poslodavca

33. Pripada vlasnicima matičnog društva

IZVJEŠTAJ O OSTALOJ SVEOBUHVATNOJ DOBITI

1. Dobit ili gubitak tekuće godine (AOP 101)

2. Ostala sveobuhvatna dobit (AOP 106 + 118)

30.1. Dobit ili gubitak prije oporezivanja iz poslovanja koje se neće nastaviti

30.2. Porezni rashodi ili prihodi povezani s poslovanjem koje se neće nastaviti

31. DOBIT ILI GUBITAK TEKUĆE GODINE (AOP 097 + 098; 102 + 103)

32. Pripada manjinskom udjelu (nekontrolirajući udjeli)

27. DOBIT ILI GUBITAK PRIJE OPOREZIVANJA IZ POSLOVANJA KOJE ĆE SE NASTAVITI

(AOP 084 - 085 - 086 + 087 - 088 do 091+ 092 do 094)

28. Porezni rashodi ili prihodi povezani s dobiti ili gubitkom iz poslovanja koje će se

nastaviti

29. DOBIT ILI GUBITAK NAKON OPOREZIVANJA IZ POSLOVANJA KOJE ĆE SE

NASTAVITI (AOP 095 - 096)

30. Dobit ili gubitak nakon oporezivanja iz poslovanja koje se neće nastaviti

(AOP 099 - 100)

23. Umanjenje vrijednosti ili ukidanje umanjenja vrijednosti nefinancijske imovine

24. Negativan goodwill priznat u dobiti ili gubitku

25. Udjel dobiti ili gubitka od ulaganja u društva kćeri. zajedničke pothvate i

pridružena društva obračunatih metodom udjela

26. Dobit ili gubitak od dugotrajne imovine i grupe za otuđenje klasificirane kao

namijenjene za prodaju koje nisu kvalificirane kao poslovanje koje se neće nastaviti

19. Dobici ili gubici zbog promjena, neto

20. Rezervacije ili ukidanje rezervacija

21. Umanjenje vrijednosti ili ukidanje umanjenja vrijednosti financijske imovine koja

nije mjerena po fer vrijednosti kroz dobit ili gubitak

22. Umanjenje vrijednosti ili ukidanje umanjenja vrijednosti ulaganja u društva kćeri,

zajedničke pothvate i pridružena društva

15. Ostali rashodi iz poslovanja

16. UKUPNI PRIHODI IZ POSLOVANJA, NETO

(AOP 069 - 070 - 071 + 072 + 073 - 074 + 075 do 082 - 083)

17. Administrativni rashodi

18. Amortizacija

11. Dobici ili gubici od računovodstva zaštite, neto

12. Tečajne razlike (dobit ili gubitak), neto

13. Dobici ili gubici po prestanku priznavanja nefinancijske imovine, neto

14. Ostali prihodi iz poslovanja

7. Dobici ili gubici po prestanku priznavanja financijske imovine i financijskih obveza

koje nisu mjerene po fer vrijednosti kroz dobit ili gubitak, neto

8. Dobici ili gubici po financijskoj imovini i financijskim obvezama koje se drže radi

trgovanja, neto

9. Dobici ili gubici po financijskoj imovini kojom se ne trguje koja se mjeri po fer

vrijednosti kroz dobit ili gubitak, neto

10. Dobici ili gubici po financijskoj imovini i financijskim obvezama po fer vrijednosti

kroz dobit ili gubitak, neto

5. Prihodi od naknada i provizija

6. Rashodi od naknada i provizija

Naziv pozicije

1

1. Kamatni prihodi

2. Kamatni rashodi

Račun dobiti i gubitka Obrazac

BAN-RDGza razdoblje 01.01.2019. do 31.12.2019.

Obveznik: ________; PRIMORSKA BANKA D.D. RIJEKA U LIKVIDACIJI

3. Rashodi od temeljnoga kapitala koji se vraća na zahtjev

4. Prihodi od dividende


49

AOP

oznaka

Rbr.

bilješke

Prethodna godina

(neto)

Tekuća godina

(neto)

2 3 4 5

001 43.986.036 34.360.596

002

003

004 43.986.036 34.360.596

005 0 0

006

007

008

009

010 0 0

011

012

013

014 0 0

015

016

017 49.947 25.000

018 25.000 25.000

019 24.947 0

020

021 39.242.806 27.471.765

022 0 0

023 39.242.806 27.471.765

024

025

026

027 2.378.996 2.015.040

028 979.503 559.018

029 3.220

030 391.861 289.388

031 1.420.975 0

032 88.450.124 64.724.027

033 0 0

034

035

036

037

038

039 0 0

040

041

042

043 35.938.869 16.664.068

044 35.938.869 16.664.068

045

046

047

048

049 477.742 680.980

050 63.029 49.360

051

052 977.463 703.862

053

054 37.457.103 18.098.270

055 70.000.000 70.000.000

056

057

058

059 -2.080.161 -2.078.999

060 -8.956.531 -16.926.819

061

062

063

064 -7.970.287 -4.368.425

065

066

067 50.993.021 46.625.757

068 88.450.124 64.724.027

Izvještaj o financijskom položaju (Bilanca) Obrazac

BAN-BILstanje na dan 31.12.2019.


1.1. Novac u blagajni

1.2. Novčana potraživanja od središnjih banaka

1.3. Ostali depoziti po viđenju

2. Financijska imovina koja se drži radi trgovanja (AOP 006 do 009)

Naziv pozicije

1

Imovina

1. Novčana sredstva. novčana potraživanja od središnjih banaka i ostali

depoziti po viđenju (AOP 002 do 004)

3. Financijska imovina kojom se ne trguje koja se obvezno mjeri po fer vrijednosti

kroz dobit ili gubitak (AOP 011 do 013)

3.1. Vlasnički instrumenti

3.2. Dužnički vrijednosni papiri

3.3. Krediti i predujmovi

2.1. Izvedenice







6. Financijska imovina po amortiziranom trošku (AOP 022+023)

4. Financijska imovina po fer vrijednosti kroz dobit ili gubitak(AOP 015 + 016)



5. Financijska imovina po fer vrijednosti kroz ostalu sveobuhvatnu dobit

(AOP 018 do 020)

9. Ulaganja u društva kćeri, zajedničke pothvate i pridružena društva

10. Materijalna imovina

11. Nematerijalna imovina

12. Porezna imovina



7. Izvedenice − računovodstvo zaštite

8. Promjene fer vrijednosti zaštićenih stavki u zaštiti portfelja od kamatnog rizika

16. Financijske obveze koje se drže radi trgovanja (AOP 034 do 038)

16.1. Izvedenice

16.2. Kratke pozicije

16.3. Depoziti

13. Ostala imovina

14. Dugotrajna imovina i grupe za otuđenje klasificirane kao namijenjene za prodaju

15. UKUPNA IMOVINA (AOP 001 + 005 + 010 + 014 + 017 + 021 + 024 do 031)

Obveze

17.2. Izdani dužnički vrijednosni papiri

17.3. Ostale financijske obveze

18. Financijske obveze mjerene po amortiziranom trošku (AOP 044 do 046)

18.1. Depoziti



17. Financijske obveze po fer vrijednosti kroz dobit ili gubitak (AOP 040 do 042)

17.1. Depoziti

21. Rezervacije

22. Porezne obveze

23. Temeljni kapital koji se vraća na zahtjev

24. Ostale obveze



19. Izvedenice − računovodstvo zaštite

20. Promjene fer vrijednosti zaštićenih stavki kod zaštite portfelja od kamatnog rizika

28. Premija na dionice

29. Izdani vlasnički instrumenti osim kapitala

30. Ostali vlasnički instrumenti

31. Akumulirana ostala sveobuhvatna dobit

25. Obveze uključene u grupe za otuđenje klasificirane kao namijenjene za prodaju

26. UKUPNE OBVEZE (AOP 033 + 039 + 043 + 047 do 053)

Kapital

27. Temeljni kapital

40. UKUPNO OBVEZE I KAPITAL (AOP 054+067)

36. Dobit ili gubitak koji pripadaju vlasnicima matičnog društva

37. Dividende tijekom poslovne godine

38. Manjinski udjeli (nekontrolirajući udjeli)

39. UKUPNO KAPITAL(AOP 055 do 066)

32. Zadržana dobit

33. Revalorizacijske rezerve

34. Ostale rezerve

35. Trezorske dionice


50

AOP

oznaka

Rbr.

bilješkePrethodna godina Tekuća godina

2 3 4 5

001 -7.970.287 -4.368.425

002 2.415.951 -1.239.595

003 510.256 799.194

004

005 96.221 306.834

006

007 4.348.047 1.584.046

008 207.010 580.419

009 11.217.629 10.781.302

010 6.399.139 25.009

011

012

013

014

015 -283.743 103.878

016

017 -997.712 80.641

018

019 -13.143.733 -19.055.123

020

021 -1.162.461 -84.033

022

023

024

025

026 1.636.317 -10.485.853

027 -76.683 -18.000

028

029

030

031 1.100.000

032 -76.683 1.082.000

033 -75.080 -300.318

034

035 66.812 0

036 21.539 1.161

037

038

039 13.271 -299.157

040 1.572.905 -9.703.010

041 42.767.857 44.340.762

042

043 44.340.762 34.637.752

4. Povećanje dioničkoga kapitala

Financijske aktivnosti

3. Neto povećanje/smanjenje instrumenata dopunskoga kapitala

2. Neto povećanje / smanjenje/ izdanih dužničkih vrijednosnih papira

1. Neto povećanje / smanjenje/ primljenih kredita iz financijskih aktivnosti

Novac i novčani ekvivalenti na kraju godine (AOP 040+041+042)

Učinak promjene tečaja stranih valuta na novac i novčane ekvivalente

6. Ostali primici / plaćanja iz financijskih aktivnosti

D) Neto povećanje / smanjenje novca i novčanih ekvivalenata (AOP 026+032+039)

C) Neto novčani tokovi iz financijskih aktivnosti (AOP 033 do 038)

Novac i novčani ekvivalenti na početku godine

10. Vrijednosni papiri i drugi financijski instrumenti po fer vrijednosti kroz ostalu

sveobuhvatnu dobit

13. Vrijednosni papiri i drugi financijski instrumenti koji se obvezno vode po fer

vrijednosti kroz račun dobiti i gubitka

5. Ostali primici / plaćanja/ iz ulagačkih aktivnosti

25. Plaćeni porez na dobit

1. Primici od prodaje / plaćanja za kupnju/ materijalne i nematerijalne imovine

A) Neto novčani tokovi iz poslovnih aktivnosti (AOP 001 do 025)

4. Primljene dividende iz ulagačkih aktivnosti

Ulagačke aktivnosti

B) Neto novčani tokovi iz ulagačkih aktivnosti (AOP 027 do 031)


Naziv pozicije

1

8. Depoziti kod financijskih institucija i krediti financijskim institucijama

Poslovne aktivnosti i usklađenja

1. Dobit / gubitak prije oporezivanja

Obrazac

BAN-NTI

IZVJEŠTAJ O NOVČANIM TOKOVIMA - Indirektna metoda

u razdoblju 01.01.2019. do 31.12.2019.

Povećanje/smanjenje poslovnih obveza

2. Umanjenja vrijednosti i rezerviranja

3. Amortizacija

4. Neto nerealizirana dobit/gubitak od financijske imovine i obveza po fer vrijednosti

kroz RDG

5. Dobit/gubitak od prodaje materijalne imovine

6. Ostale nenovčane stavke

7. Sredstva kod HNB-a

23. Primljene dividende iz poslovnih aktivnosti

14. Vrijednosni papiri i drugi financijski instrumenti koji se vode po

amortiziranom trošku

17. Transakcijski računi ostalih komitenata

19. Oročeni depoziti ostalih komitenata

22. Neplaćene kamate iz poslovnih aktivnosti

18. Štedni depoziti ostalih komitenata

15. Ostala imovina iz poslovnih aktivnosti

20. Izvedene financijske obveze i ostale obveze kojima se trguje

12. Vrijednosni papiri i drugi financijski instrumenti kojima se aktivno ne trguje, a

vrednuju se prema fer vrijednosti kroz RDG

24. Plaćene kamate iz poslovnih aktivnosti

5. Isplaćena dividenda

Promjene u imovini i obvezama iz poslovnih aktivnosti

2. Primici od prodaje / plaćanja za kupnju/ ulaganja u društva kćeri, zajedničke

pothvate i pridružena društva

16.Depoziti od financijskih institucija

3. Primici od naplate / plaćanja za kupnju/ vrijednosnih papira i drugih

financijskih instrumenata iz ulagačkih aktivnosti

9. Krediti i predujmovi ostalim komitentima

21. Ostale obveze

11. Vrijednosni papiri i drugi financijski instrumenti koji se drže radi trgovanja


51

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