Unaudited financial statements of Zagrebačka banka Group

for the period from 1 January 2017 to 30 June 2017 Content: 1. Management report for the period from 1 January 2017 to 30 June 2017 2. Statement of the persons responsible for the preparation of the financial statements 3. Financial statements (TFI-KI statements)

3.1. Balance sheet as at 30 June 2017 3.2. Income statement for the period from 1 January 2017 to 30 June 2017 3.3. Cash flow statement for the period from 1 January 2017 to 30 June 2017 3.4. Statement of changes in equity for the period from 31 December 2016 to 30 June 2017 3.5. Notes to the financial statements

Management report for the period from 1 January to 30 June 2017

Zagrebačka banka Group recorded operating result of HRK 1,312 million in the first half of 2017. The profit after tax is HRK 365 million, impacted by the increase in impairment losses on placements to companies. The total volume of loans decreased due to the sale of a part of the non-performing portfolio. The Group realised positive operating result in all its members, the major contributors were Zagrebačka banka d.d., UniCredit Bank d.d. Mostar, UniCredit Leasing Croatia d.o.o. and Prva stambena štedionica d.d. In the upcoming period the Group will be focused on stimulating loan activity, transformation of business aiming at the introduction of new products and services based on digital technologies, as well as on further increase in efficiency.

Key performance indicators in the first half of 2017:

Zagrebačka banka Group operating income totals HRK 2,605 million (-4.6%)

Total operating expenses amount to HRK 1,293 million (+2.3%)

Profit before impairment and other provisions amounts to HRK 1,312 million (-10.6%)

Impairment and other provisions amount to HRK 903 million

Net loans to customers amount to HRK 80,254 million

Deposits from customers amount to HRK 89,035 million

Management report for the period from 1 January to 30 June 2017 (continued)

Operating income amounted to HRK 2,605 million, decreased by HRK 127 million (-4.6%):

Net interest income amounted to HRK 1,743 million, the increase of HRK 10 million (+0.6%) is a result of stable average volume of loans during the period and lower funding costs.

Net fee and commission income amounted to HRK 664 million which is HRK 57 million (+9.4%) higher, due to the increase in payment transaction fees, credit card fees and fees from asset management, brokerage and consulting services.

Net trading and other income amounted to HRK 198 million, decreased by HRK 194 million (-49.5%). The prior year result has been positively impacted by the net gain from sale of share of Visa Europe Limited to Visa Inc.

Operating expenses amounted to HRK 1,293 million and increased by HRK 29 million (+2.3%). The Group’s cost to income ratio (“C/I ratio”) has remained good and equals 49.6%.

Profit before impairment and other provisions amounted to HRK 1,312 million, lower by HRK 156 million (-10.6%), as a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions amounted to HRK 903 million, they have increased by HRK 560 million, mainly due to the increase in impairment losses on placements to companies.

Total assets of the Group amounted to HRK 123,429 million and have decreased by HRK 4,899 million (-3.8%), mainly under the influence of optimisation of funding sources.

Net loans to customers amounted to HRK 80,254 million, decreased by HRK 492 million (-0.6%). The total volume of loans decreased due to the sale of part of non-performing portfolio.

Deposits from customers represent primary source of funding. At the end of the period they

amounted to HRK 89,035 million and have decreased by HRK 3,193 million (-3.5%). Loans to deposits ratio amounts to 90.1%.

Deposits from banks and borrowings amounted to HRK 12,148 million. The decrease of HRK

716 million (-5.6%) is a result of lower funding needs. Capital and reserves of the Group - at HRK 17,293 million.

Financial results for the period from 1 January to 30 June 2017

Zagrebačka banka Group Balance Sheet (HRK mln)

Δ 2017 vs. 2016

31 Dec 2016 30 Jun 2017 % HRK mln

1 2 3 (4/1) 4 (2-1)

Cash and deposits with the CNB 15,164 16,725 10.3% 1,561

Loans to and receivables from banks 16,116 10,335 (35.9%) (5,781)

Securities 9,802 10,124 3.3% 322

Net loans to customers 80,746 80,254 (0.6%) (492)

Tangible and intangible assets 2,392 2,771 15.8% 379

Other assets 4,108 3,220 (21.6%) (888)

Total assets 128,328 123,429 (3.8%) (4,899)

Deposits from customers 92,228 89,035 (3.5%) (3,193)

Deposits from banks and borrowings 12,864 12,148 (5.6%) (716)

Other liabilities 4,542 4,953 9.0% 411

Capital and reserves 18,694 17,293 (7.5%) (1.401)

Total liabilities and equity 128,328 123,429 (3.8%) (4.899)

Equity attributable to equity holders of the Bank 128,306 123,407 (3.8%) (4.899)

Equity attributable to non-controlling interests 22 22 - -

Zagreb, 28 July 2017

Chairman of the Management Board

Miljenko Živaljić

Zagrebačka banka Group Income Statement (HRK mln)

Δ 2017 vs. 2016

2016 2017 % HRK mln

1 2 3 (4/1) 4 (2-1)

Interest income 3,091 2,796 (9.5%) (295)

Interest expense (1,358) (1,053) (22.5%) 305

Net interest income 1,733 1,743 0.6% 10

Fee and commission income 675 740 9.6% 65

Fee and commission expense (68) (76) 11.8% (8)

Net fee and commission income 607 664 9.4% 57

Net trading and other income 392 198 (49.5%) (194)

Operating income 2,732 2,605 (4.6%) (127)

Operating expenses (1,264) (1,293) 2.3% (29)

Profit before impairment and other provisions

1,468 1,312 (10.6%) (156)

Impairment and other provisions (343) (903) 163.3% (560)

Profit from operations 1,125 409 (63.6%) (716)

Share of profit from associates 20 21 5.0% 1

Profit before tax 1,145 430 (62.4%) (715)

Income tax (214) (65) (69.6%) 149

Net profit 931 365 (60.8%) (566)

Attributable to equity holders of the Bank 930 364 (60.9%) (566)

Attributable to non-controlling interests 1 1 - -

Net profit 931 365 (60.8%) (566)

Statement of the persons responsible for the preparation of financial statements

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

1. the set of summary financial statements of Zagrebačka banka Group prepared in accordance with the applicable standards for financial reporting for banks in the Republic of Croatia gives a true and complete view of the assets and liabilities, profit and loss, the financial position and business operations of Zagrebačka banka Group;

2. the Management Report gives a true view of business developments, operating results and the position of Zagrebačka banka Group

Head of Accounting and Member of the Management Board

Regulatory Reporting Lorenzo Ramajola

Marijana Brcko

Additional info: Public Relations Tel: 00385(1) 6104153 e-mail: PR@unicreditgroup.zaba.hr www.zaba.hr

1.1.2017 to 30.6.2017

133

21 Number of employees: 5557

(as at the quarter-end)

YES 6419

Subsidiaries and associates of the Bank which are included in Zagrebačka banka Group are shown in Note 4:

(only name and surname of contact person is included)

Telefax:

Documentation to be published:

and notes to financial statements)

2. Interim Management report

M.P.

E-mail address:

Surname and name: Živaljić Miljenko

Contact person:

Ivana Lučića 2a, 10000 Zagreb 02638541

Allianz ZB d.o.o., Zagreb Nike Grškovića 31, 10000 Zagreb 01581864

Jurič Ana

(person representing the company)

Accounting:

Allianz ZB d.o.o., Zagreb Ivana Lučića 2a, 10000 Zagreb 01637886

UniCreditLeasing d.o.o. Ložionička 7, 71000 Sarajevo 79535370

UniCredit Broker d.o.o. Obala Kulina bana 15, 71000 Sarajevo 79535362

Multiplus card d.o.o., Zagreb

(signature of the President of the Management Board)

Phone: 01/ 4801-663

3. Statement of persons responsible for preparation of financial reports

ana.juric@unicreditgroup.zaba.hr

1. Financial reports (balance, income statement, cash flow statement, statement on changes in equity

UniCredit Leasing Croatia d.o.o. Heinzelova 33, 10000 Zagreb 01329162

Zane BH d.o.o. Branilaca Sarajeva 20, 71000 Sarajevo 79524093

04089014

01598465

UniCredit Partner d.o.o. Damira Tomljanovića Gavrana 17, 10000 Zagreb

Pominvest d.d. Gundulićeva 26a, 21000 Split 03891984

Zagreb nekretnine d.o.o. Nova Ves 17, 10000 Zagreb 03709124

ZB Invest d.o.o. Ivana Lučića 2a, 10000 Zagreb 01500937

Centar Kaptol d.o.o. Nova Ves 17, 10000 Zagreb 01149440

Companies included in consolidation (according to IFRS): Headquarters: MB:

Prva stambena štedionica d.d. Savska 62, 10000 Zagreb 01391178

Code and name of municipality/city: Zagreb

Code and name of county: Grad Zagreb

Consolidated report: Code in NKD:

Street and number: Trg bana Josipa Jelačića 10

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

Internet address: www.zaba.hr

Personal identification number

(OIB):

92963223473

Issuer company: Zagrebačka banka d.d.

Post office number and city: 10000 Zagreb

Appendix 3.Reporting period:

Quarterly financial report for credit institutions-TFI-KI

Identification number (MB): 03234495

Subjects identification number 080000014

01972669

ALLIB NEKRETNINE d.o.o. Damira Tomljanovića Gavrana 17, 10000 Zagreb 01569465

Damira Tomljanovića Gavrana 17, 10000 ZagrebLocat Croatia d.o.o.

UniCredit Bank d.d. Kardinala Stepinca bb, 88000 Mostar 07700822

BACAL ALPHA d.o.o. Damira Tomljanovića Gavrana 17, 10000 Zagreb 02001365

ZABA Partner d.o.o. Augusta Cesarca 2, 10000 Zagreb

AOP

codePrevious period Current period

2 3 4

001 15,164,240,489 16,725,492,964

002 2,868,720,100 3,451,750,728

003 12,295,520,389 13,273,742,236

004 12,070,578,371 9,222,370,350

005 4,439,697,564 4,338,838,138

006 21,275,609 48,808,509

007 5,214,397,980 5,616,656,457

008 105,433 86,104

009 126,801,837 119,862,354

010 2,420,407,583 1,336,344,319

011 4,044,548,567 1,113,303,168

012 80,746,020,782 80,253,731,378

013 89,551,953 73,072,048

014 216,922,008 139,574,964

015 2,391,766,170 2,771,397,377

016 1,381,473,511 1,669,210,421

017 128,327,787,857 123,428,748,551

018 3,516,409,787 5,072,399,569

019 1,266,299,151 1,704,945,864

020 2,250,110,636 3,367,453,705

021 97,730,312,360 93,539,153,853

022 25,195,503,754 27,313,705,592

023 18,291,330,292 18,007,739,338

024 54,243,478,314 48,217,708,923

025 3,845,640,093 2,570,430,556

026 339,202,505 124,163,876

027 3,506,437,588 2,446,266,680

028 2,068,340,448 1,164,150,317

029 53,653,841 52,970,433

030 0 0

031 53,653,841 52,970,433

032 0 0

033 0 0

034 2,419,447,861 3,735,890,618

035 109,633,804,390 106,134,995,346

036 6,404,839,100 6,404,839,100

037 1,688,334,860 364,610,365

038 6,413,042,354 6,347,791,737

039 64,048,522 64,048,522

040 3,910,540,693 3,906,274,393

041 213,177,938 206,189,088

042 0 0

043 18,693,983,467 17,293,753,205

044 128,327,787,857 123,428,748,551

045 18,693,983,467 17,293,753,205

046 18,671,985,811 17,271,330,093

047 21,997,656 22,423,112

3. TREASURY BILLS AND CNB BILLS

13. PROPERTY, PLANT AND EQUIPMENT (NET OF DEPRECIATION)

5. SECURITIES AND OTHER FINANCIAL INSTRUMENTS AVAILABLE FOR SALE

A) TOTAL ASSETS (001+004 do 016)

8. DERIVATIVE FINANCIAL ASSETS

Amounts in HRK

ASSETS

1. CASH AND DEPOSITS WITH THE CNB (002+003)

1.1.Cash

1.2.Deposits with the CNB

2. DEPOSITS WITH BANKING INSTITUTIONS

3. RETAINED EARNINGS / (LOSS)

4. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD FOR TRADING

1.1. Short-term borrowings

6. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD TO MATURITY

7. SECURITIES AND OTHER FINANCIAL INSTRUMENTS WHICH ARE NOT

ACTIVELY TRADED, BUT ARE DESIGNATED TO FAIR VALUE THROUGH PROFIT

OR LOSS

2. DEPOSITS (AOP 022 to 024)

9. LOANS TO FINANCIAL INSTITUTIONS

10. LOANS TO OTHER CUSTOMERS

11. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

4. LEGAL RESERVES

LIABILITIES

2. Attributable to equity holders of the Bank

5. STATUTORY AND OTHER CAPITAL RESERVES

6. UNREALISED GAIN / (LOSS) ON VALUE ADJUSTMENT OF AVAILABLE-FOR-

SALE FINANCIAL ASSETS

B) TOTAL LIABILITIES (018+021+025+028+029+032+033+034)

EQUITY

2. CURRENT YEAR PROFIT / (LOSS)

1.2. Long-term borrowings

1. BORROWINGS FROM FINANCIAL INSTITUTIONS (019+020)

2.1. Giro and current accounts

2.2. Savings deposits

2.3. Term deposits

3. OTHER BORROWINGS (026+027)

5.1. Short-term issued debt securities

3.2. Long-term borrowings

3.1. Short-term borrowings

3. Attributable to minority interests (045-046)

Position name

1

7. HEDGE ACCOUNTING RESERVES

C) TOTAL EQUITY (036 to 042)

D) TOTAL LIABILITIES AND EQUITY (035+043)

BALANCE SHEET SUPPLEMENT (to be inputed by issuer preparing consolidated financial reports)

1. SHARE CAPITAL

5. ISSUED DEBT SECURITIES (030+031)

1. TOTAL EQUITY

BALANCE SHEET

balance as at 30.06.2017

8. INTERESTS, FEES AND OTHER LIABILITIES

5.2. Long-term issued debt securities

6. ISSUED SUBORDINATED INSTRUMENTS

7. ISSUED HYBRID INSTRUMENTS

4. LIABILITIES ARISING FROM DERIVATIVES AND OTHER LIABILITIES HELD

FOR TRADING

12. FORECLOSED ASSETS

14. INTEREST, FEES AND OTHER ASSETS

to Amounts in HRK

AOP

code

Cumulated Quarterly Cumulated Quarterly

2 3 4 5 6

048 3,090,075,586 1,541,703,844 2,796,410,982 1,349,932,404

049 1,357,576,096 668,247,888 1,053,328,136 476,640,797

050 1,732,499,490 873,455,956 1,743,082,846 873,291,607

051 675,085,699 354,061,583 739,761,211 385,464,116

052 67,818,760 36,871,212 75,842,418 44,005,541

053 607,266,939 317,190,371 663,918,793 341,458,575

054 20,228,128 10,672,470 20,664,335 11,080,722

055 -20,434,626 -10,176,857 -144,350,201 -72,526,401

056 0 0 0 0

057 -2,768,848 531,591 -1,899,092 -3,224,389

058 148,131,551 144,570,225 7,275,531 6,084,364

059 0 0 0 0

060 0 0 0 0

061 0 0 0 0

062 10,684,932 10,684,932 10,964,019 10,889,017

063 103,101,420 72,774,627 130,039,841 77,599,628

064 153,060,592 90,886,297 196,596,890 111,942,830

065 173,748,571 69,437,805 180,851,185 65,112,595

066 1,089,684,341 554,458,091 1,112,264,458 556,201,229

067 1,488,336,666 886,693,716 1,333,177,319 735,282,129

068 343,686,772 282,795,381 903,421,359 113,316,115

069 1,144,649,894 603,898,335 429,755,960 621,966,014

070 213,537,053 112,806,104 65,145,596 104,559,799

071 931,112,841 491,092,231 364,610,364 517,406,215

072 5 5 2 2

073 931,112,841 491,092,231 364,610,364 517,406,215

074 929,996,757 490,516,472 363,520,112 516,930,711

075 1,116,084 575,759 1,090,253 475,505

Previous period

1

1. Interest income

2. Interest expense

for the period 01.01.2017 30.06.2017

Position name

3. Net interest income (048-049)

4. Fee and commission income

5. Fee and commission expense

6. Net income from commissions and fees (051-052)

7. Gains / losses from investment in subsidiaries, associates and joint ventures

8. Gains / losses from trading activities

9. Gains / losses from embedded derivatives

10. Gains / losses from assets which are not actively traded, but are designated at fair

11. Gains / losses from activities related to available-for-sale financial assets

12. Gains / losses from activities related to held-to-maturity investments

13. Gains / losses from hedging transactions

14. Income from investments in subsidiaries, associates and joint ventures

1. PROFIT / LOSS FOR THE PERIOD

15. Income from other equity investments

16. Gains / losses from foreign exchange differences

17. Other income

18. Other expenses

19. General administrative expenses and depreciation

20. Net income from operations before impairment and other provisions

INCOME STATEMENT

Current period

2. Attributable to equity holders of the Bank

3. Attributable to minority interests (073-074)

INCOME STATEMENT SUPPLEMENT (to be inputed by issuer preparing consolidated financial statements)

21. Impairment losses and other provisions

22. PROFIT / LOSS BEFORE TAX (067-068)

23. INCOME TAX EXPENSE

24. PROFIT / LOSS FOR THE PERIOD (069-070)

25. Earnings per share

to

Share capital Treasury shares

Legal,

statutory,

capital

and other

reserves

Retained

earnings/

loss

Profit/loss

for the

year

Unrealised

gain/loss

from

revaluation

on AFS

financial

assets

2 3 4 5 6 7 8 9 10

001 6,404,839,100 0 3,974,589,215 6,393,255,283 1,686,124,275 213,177,938 21,997,656 18,693,983,467

002 0 0 0 0 0 0 0 0

003 6,404,839,100 0 3,974,589,215 6,393,255,283 1,686,124,275 213,177,938 21,997,656 18,693,983,467

004 0 0 0 0 0 -7,320,033 0 -7,320,033

005 0 0 0 0 0 -1,547,016 21,988 -1,525,028

006 0 0 0 0 0 1,871,330 0 1,871,330

007 0 0 -1,234 -55,645,904 0 6,869 -391,217 -56,031,486

008 0 0 -1,234 -55,645,904 0 -6,988,850 -369,229 -63,005,217

009 0 0 0 0 363,520,112 0 1,090,253 364,610,365

010 0 0 -1,234 -55,645,904 363,520,112 -6,988,850 721,024 301,605,148

011 0 0 0 0 0 0 0 0

012 0 0 -1,018,425 0 0 0 0 -1,018,425

013 0 0 -3,246,641 0 0 0 0 -3,246,641

014 0 0 0 1,686,124,275 -1,686,124,275 0 0 0

015 0 0 0 -1,697,274,775 0 0 -295,569 -1,697,570,344

016 0 0 0 -11,150,500 -1,686,124,275 0 -295,569 -1,697,570,344

017 6,404,839,100 0 3,970,322,915 6,326,458,879 363,520,112 206,189,088 22,423,111 17,293,753,205

Total

1

Balance as at 1 January of the current period

Position nameAOP

code

Attributable to shareholders of the Bank

Changes in accounting policies and errors

Restated balance as at 1 January of the current period

(001+002)

Disposal of available-for-sale f inancial assets

Increase / decrease of share capital

Changes in fair value of available-for-sale f inancial assets

Minority

interests

Other movements

Deferred tax on movements in fair value reserve of available-for-sale

f inancial assets

Other gains/losses recognised directly in equity

Net gains/losses recognised directly

in equity (004+005+006+007)

Profit / loss for the period

Total recognised income and expense for the current period

(008+009)

Acquisition / disposal of treasury shares

Amounts in HRK

Banks w hich prepare consolidated annual f inancial statements separately disclose changes in minority interests in the relevant sections of equity.

STATEMENT OF CHANGES IN EQUITY31.12.2016. 30.06.2017 in the period from

Transfer to reserves

Dividends payouts

Distribution of profit (014+015)

Balance as at 31 December of the current period

(003+010+011+012+013+016)

to

AOP code Previous period Current period

2 3 4

001 1.541.968.601 1.401.612.207

002 1.144.649.894 429.755.960

003 343.686.772 903.421.359

004 155.713.382 173.249.582

005 85.025.007 368.499.795

006 -2.657.485 -46.597.593

007 -184.448.969 -426.716.896

008 2.176.288.783 2.107.267.772

009 1.554.209.339 -99.513.310

010 216.842.707 91.812.900

011 1.673.304.432 5.194.133.885

012 -2.786.114.412 -2.326.117.419

013 -62.232.110 -26.008.714

014 1.687.061.047 -559.427.518

015 906.015 2.738.118

016 -107.688.235 -170.350.170

017 -433.668.481 -1.232.075.551

018 1.392.555.297 2.358.560.053

019 -1.968.546.269 -3.725.785.182

020 197.429 161.627

021 142.125.062 134.987.951

022 3.284.588.903 2.276.804.428

023 -146.549.146 -297.329.439

024 3.138.039.757 1.979.474.989

025 -328.241.597 -478.024.804

026 -351.629.918 -510.609.919

027 10.493.300 0

028 228.145 19.329

029 12.666.876 32.565.786

030 0 0

031 -1.742.784.811 160.357.223

032 -1.742.447.716 409.755.934

033 0 1.466.942

034 0 0

035 0 0

036 -337.095 -250.865.653

037 0 0

038 1.067.013.349 1.661.807.408

039 -64.496.760 -84.357.758

040 1.002.516.589 1.577.449.650

041 8.802.849.127 12.812.760.339

042 9.805.365.716 14.390.209.989

CASH FLOW STATEMENT - Indirect methodin the period from 01.01.2017. 30.06.2017 Amounts in HRK

Position name

1

Operating activities

1. Cash flow from operating activities before changes in operating assets (002 do 007)

1.1.Profit/(loss) before tax

1.2. Impairment losses

1.3. Depreciation and amortisation

1.4. Unrealised (gains)/losses on securities at fair value through profit or loss

1.5. (Gains)/losses from sale of tangible assets

1.6. Other (gains)/losses

2. Net Increase/decrease in operating assets (009 do 016)

2.1. Deposits with the CNB

2.2. Ministry of Finance treasury bills and CNB bills

2.3. Deposits with banking institutions and loans to financial institutions

2.4. Loans to other clients

2.5. Securities and other financial instruments held for trading

2.6. Securities and other financial instruments available for sale

2.7. Securities and other financial instruments at fair value through profit or loss which are not

actively traded

2.8. Other operating assets

3. Net (increase)/decrease in operating liabilities (018 do 021)

3.1. Demand deposits

3.2. Savings and term deposits

3.3. Derivative financial liabilities and other liabilities held for trading

3.4. Other liabilities

4. Net cash flow from operating activities before income taxes paid (001+008+017)

5. Paid income tax

6. Net inflow/(outflow) of cash from operating activities (022+023)

Investment activities

7. Net cash flow from investment activities (026 do 030)

7.1. Receipts from sale of / (payments to acquire) property, plant and equipment and intangible

assets

7.2. Receipts from disposal of / (payments for purchase) investments in subsidiaries,

associates and joint ventures

7.3. Receipts from sale of / (payments to acquire) securities and other investments held to

maturity

7.4. Received dividends

7.5. Other receipts/(payments) from investment activities

Financial activities

8. Net cash flow from financing activities (032 do 037)

8.1. Net increase/(decrease) in borrowings

10. Effects of foreign exchange differences on cash and cash equivalents

11. Net increase/(decrease) in cash and cash equivalents (038+039)

12. Cash and cash equivalents at the beginning of the year

13. Cash and cash equivalents at the end of the year (040+041)

8.2. Net increase /(decrease) of issued debt securities

8.3. Net increase /(decrease) of subordinated and hybrid instruments

8.4. Receipts from issue of capital

8.5. Payment of dividends

8.6. Other receipts/(payments) from financial activities

9. Net increase/(decrease) in cash and cash equivalents

(024+025+031)

NOTES TO THE FINANCIAL STATEMENTS

in HRK

Net liquid assets 31.12.2016. 30.6.2017

Cash 2,868,720,100 3,451,750,728

Deposits w ith the CNB 12,295,520,389 13,273,742,236

Deposits w ith banking institutions 12,070,578,371 9,222,370,350

Treasury bills and CNB bills 4,439,697,564 4,338,838,138

Securities and other f inancial instruments held for trading 21,275,609 48,808,509

Secutiries and other f inancial instruments available for sale 5,214,397,980 5,616,656,457

Securities and other f inancial instruments w hich are not actively

traded, but are designated to fair value in income statement 126,801,837 119,862,354

37,036,991,850 36,072,028,772

Loans to and receivables from customers 31.12.2016. 30.6.2017

Companies and similar organisations and government 54,656,455,841 53,158,842,182

Individuals and unincorporated businesses 35,992,652,625 34,843,400,600

Total gross loans 90,649,108,465 88,002,242,782

Companies and similar organisations and government (7,123,667,755) (6,067,371,604)

Individuals and unincorporated businesses (2,779,419,928) (1,681,139,800)

Impairment allowance (9,903,087,683) (7,748,511,404)

80,746,020,782 80,253,731,378

Deposits and borrowings 31.12.2016. 30.6.2017

Companies and similar organisations and government 31,715,293,702 29,575,045,026

Individuals and unincorporated businesses 60,512,513,791 59,460,106,815

Banks and other f inancial institutions 12,864,554,746 12,146,832,132

105,092,362,240 101,181,983,973

Fully consolidated subsidiaries:

Company GroupGroup

ownership in %

UniCredit Bank d.d., Mostar Banking 99.3

Prva stambena štedionica d.d. Banking 100.0

ZB Invest d.o.o. Fund management 100.0

Centar Kaptol d.o.o. Property investment 100.0

Pominvest d.d.

Property

management 88.7

Zagreb nekretnine d.o.o. Real estate agency 100.0

Zane BH d.o.o. Real estate agency 100.0

UniCredit Leasing Croatia d.o.o. Leasing 100.0

Locat Croatia d.o.o.

Real estate

business 100.0

UniCredit Partner d.o.o. Trading activities 80.0

ALLIB NEKRETNINE d.o.o.

Real estate

business 100.0

BACAL ALPHA d.o.o.

Real estate

business 100.0

ZABA Partner d.o.o. Insurance brokerage 100.0

UniCreditLeasing d.o.o., Sarajevo Leasing 99.3

Equity accounted associated companies:

Company GroupGroup

ownership in %

Allianz ZB d.o.o., Zagreb

Obligatory pension

fund management 49.0

Allianz ZB d.o.o., Zagreb

Voluntary pension

fund management 49.0

Multiplus card d.o.o., Zagreb

Advertising and

marketing services 25.0

UniCredit Broker d.o.o. Sarajevo brokersko društvo u osiguranju Insurance brokerage 48.7

Change in scope of consolidation

In June 2016 Locat Croatia d.o.o. disposed its 100% stake in the subsidiary Bacal Beta Nekretnine d.o.o.

In January 2017 a full legal merger w as completed w hereby the company Suvremene poslovne komunikacije

d.o.o. (100% ow ned by Zagrebačka banka d.d.) w as merged to Zagreb Nekretnine d.o.o. (also 100%

ow ned by Zagrebačka banka d.d.)

List of subsidiaries and associatesZagrebačka banka d.d. is a licensed bank operating in Croatia and the holding company for the Zagrebačka

banka Group. The Bank's subsidiaries and associated companies are presented below :

Cumulative Quarterly Cumulative Quarterly

Interest and similar income 3,090,075,586 1,541,703,844 2,796,410,982 1,349,932,404

Loans to and receivables from customers 2,260,661,128 1,129,308,628 2,013,978,118 984,535,982

Debt securities 97,964,090 46,725,051 101,975,402 51,494,302

Loans to and receivables from banks 16,532,131 8,266,483 15,402,790 7,387,341

Derivative instruments 714,918,238 357,403,683 665,054,671 306,514,779

Interest expense and similar charges 1,357,576,096 668,247,888 1,053,328,136 476,640,797

Current accounts and deposits from banks 66,618,350 34,818,885 23,893,239 4,196,410

Current accounts and deposits from individuals 397,119,070 191,240,576 255,670,960 120,386,950

Current accounts and deposits from companies and other organisations 109,899,536 52,603,119 71,195,549 27,426,166

Borrow ings 91,411,268 43,260,954 58,045,625 27,927,448

Derivative instruments 692,527,872 346,324,354 644,130,995 296,507,350

Issued debt securities 0 0 391,767 196,472

1,732,499,490 873,455,956 1,743,082,846 873,291,607

Cumulative Quarterly Cumulative Quarterly

Fee and commission income 675,085,699 354,061,583 739,761,211 385,464,116

Domestic payment transaction related fees and commissions 255,391,306 131,223,451 285,639,598 153,146,900

Credit card related fees and commissions 148,479,467 80,655,127 166,437,021 96,413,273

Foreign payment transaction related fees and commissions 82,021,344 42,667,489 53,543,779 19,007,888

Investment management, brokerage and consultancy fees 95,948,451 54,861,022 118,736,510 53,392,219

Other fees and commissions 93,245,131 44,654,494 115,404,302 63,503,836

Fee and commission expense 67,818,760 36,871,212 75,842,418 44,005,541

Credit card related charges 39,027,112 22,364,405 45,843,258 28,271,313

Domestic payment transaction related charges 17,197,560 8,923,898 18,204,123 9,547,591

Foreign payment transaction related charges 3,655,992 1,724,028 2,955,594 1,587,300

Other fees and commissions 7,938,096 3,858,881 8,839,443 4,599,337

607,266,939 317,190,371 663,918,793 341,458,575

Cumulative Quarterly Cumulative Quarterly

Impairment losses on loans to and receivables from customers (140,462,426) (172,597,752) (892,407,251) (101,177,638)

Other impairment losses and provisions (203,224,345) (110,197,628) (11,014,107) (12,138,477)

(343,686,772) (282,795,381) (903,421,359) (113,316,115)

Earnings per sharePrevious period

31.12.2016.

Current period

30.06.2017.

Profit attributable to equity holders of the Bank 1,686,124,275 363,520,112

Weighted average number of ordinary shares in issue 320,241,955 320,235,917

Basic and diluted earnings per share

(expressed in HRK per share) 5.27 2.27

Impairment losses and provisions

Previous period

30.06.2016.

Current period

30.06.2017.

Net interest income

Previous period

30.06.2016.

Current period

30.06.2017.

Net fee and commission income

Previous period

30.06.2016.

Current period

30.06.2017.