Unaudited financial statements of Zagrebačka banka Group

for the period from 1 January 2017 to 31 March 2017 Content: 1. Management report for the period from 1 January 2017 to 31 March 2017 2. Statement of the persons responsible for the preparation of the financial statements 3. Quarterly financial statements (TFI-KI statements)

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

Management report for the period from 1 January to 31 March 2017

According to the unaudited quarterly financial statements, in the first quarter of 2017 Zagrebačka banka Group recorded good operating result in the amount of HRK 588 million. At the same time, the Group recorded a loss after tax of HRK 153 million, following the increase in impairment losses on placements to companies. The capital adequacy ratio of Zagrebačka banka d.d. is at the level of 26.3%, thus the Group has a solid potential to support the loan activity and amortise eventual risks in the upcoming periods as well. Positive trends in the macroeconomic environment influenced the increase in new loans. In the upcoming period the focus of the Group will be on risk management, introduction of new products and services based on digital technologies as well as on further increase in efficiency.

Key performance indicators in 2017:

Zagrebačka banka Group operating income totals HRK 1,259 million (+2.2%)

Total operating expenses amount to HRK 671 million (+4.8%)

Profit before impairment and other provisions amounts to HRK 588 million (-0.7%)

Impairment and other provisions amount to HRK 790 million

Net loans to customers amount to HRK 81,039 million

Deposits from customers amount to HRK 89,210 million

Management report for the period from 1 January to 31 March 2017 (continued)

Operating income amounted to HRK 1,259 million, increased by HRK 27 million (+2.2%), due to lower funding costs, higher Net fee and commission income and increase in Net trading and other income.

Net interest income amounted to HRK 869 million, the increase of HRK 10 million (+1.2%) is a result of stable average volume of loans during the period and lower funding costs.

Net fee and commission income amounted to HRK 322 million which is HRK 32 million (+11.0%) higher, due to the increase in payment transaction fees and fees from asset management, brokerage and consulting services.

Net trading and other income amounted to HRK 68 million, a decrease was HRK 15 million (-18.1%).

Operating expenses amounted to HRK 671 million and increased by HRK 31 million (+4.8%). The Group’s cost to income ratio (“C/I ratio”) has remained good and equals to 53.30% (2016: 51.95%).

Profit before impairment and other provisions amounted to HRK 588 million, it is a result of the previously described movements in Operating income and Operating expenses.

Impairment and other provisions amounted to HRK 790 million, they have increased by HRK 729 million mainly due to the increase in impairment losses on placements to companies.

Total assets of the Group amounted to HRK 123,355 million and have decreased by HRK 4,973 million (-3.9%), mainly under the influence of optimisation of funding sources.

Net loans to customers amounted to HRK 81,039 million, increased by HRK 293 million (+0.4%). The increase in loan activity was realised due to positive trends in the macroeconomic environment and the increase in demand for loans.

Deposits from customers represent primary source of funding. At the end of the period they amounted to HRK 89,210 million and have decreased by HRK 3,018 million (-3.3%). Loans to deposits ratio amounts to 91.0%.

Deposits from banks and borrowings amounted to HRK 11,273 million. The decrease of HRK 1,591 million (-12.4%) is a result of lower funding needs.

Capital and reserves of the Group - at HRK 18,482 million. The capital adequacy ratio of

Zagrebačka banka d.d. - at 26.3% (31 December 2016: 26.1%).

Financial results for the period from 1 January to 31 March 2017

Zagrebačka banka Group Balance Sheet (HRK mln)

Δ 2017 vs. 2016

31 Dec 2016 31 Mar 2017 % HRK mln

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

Cash and deposits with the CNB 15,164 14,356 (5.3 %) (808)

Loans and receivables from banks 16,116 11,070 (31.3 %) (5,046)

Securities 9,802 10,623 8.4 % 821

Net loans to customers 80,746 81,039 0.4 % 293

Tangible and intangible assets 2,392 2,445 2.2 % 53

Other assets 4,108 3,822 (7.0 %) (286)

Total assets 128,328 123,355 (3.9 %) (4,973)

Deposits from customers 92,228 89,210 (3.3 %) (3,018)

Deposits from banks and borrowings 12,864 11,273 (12.4 %) (1,591)

Other liabilities 4,542 4,390 (3.3 %) (152)

Capital and reserves 18,694 18,482 (1.1 %) (212)

Total liabilities and equity 128,328 123,355 (3.9 %) (4,973)

Equity attributable to equity holders of the Bank 18,672 18,460 (1.14 %) (212)

Equity attributable to non-controlling interests 22 22 - -

Zagreb, 28 April 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 1,548 1,446 (6.6 %) (102)

Interest expense (689) (577) (16.3 %) 112

Net interest income 859 869 1.2 % 10

Fee and commission income 321 354 10.3 % 33

Fee and commission expense (31) (32) 3.2 % (1)

Net fee and commission income 290 322 11.0 % 32

Net trading and other income 83 68 (18.1 %) (15)

Operating income 1,232 1,259 2.2 % 27

Operating expenses (640) (671) 4.8 % (31)

Profit before impairment and other provisions 592 588 (0.7 %) (4)

Impairment and other provisions (61) (790) 1,195.1 % (729)

Profit/(loss) from operations 531 (202) (138.0 %) (733)

Share of profit from associates 10 10 - -

Profit/(loss)before tax 541 (192) (135.5 %) (733)

Income tax (101) 39 (138.6 %) 140

Net profit/(loss) 440 (153) (134.8 %) (593)

Attributable to equity holders of the Bank 439 (154) (135.1 %) (593)

Attributable to non-controlling interests 1 1 - -

Net profit/(loss) 440 (153) (134.8 %) (593)

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 31.3.2017

133

21 Number of employees: 5,536

(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.

Ivana Lučića 2a, 10000 Zagreb 01637886

Jurič Ana

(person representing the company)

Accounting:

E-mail address:

Surname and name: Živaljić Miljenko

Contact person:

Multiplus card d.o.o., Zagreb Ivana Lučića 2a, 10000 Zagreb 02638541

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

Allianz ZB d.o.o., Zagreb

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

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

(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 14,355,608,651

002 2,868,720,100 2,919,932,259

003 12,295,520,389 11,435,676,392

004 12,070,578,371 9,462,906,842

005 4,439,697,564 4,530,900,082

006 21,275,609 103,111,120

007 5,214,397,980 5,862,891,280

008 105,433 86,473

009 126,801,837 125,786,628

010 2,420,407,583 2,147,580,361

011 4,044,548,567 1,607,243,630

012 80,746,020,782 81,039,452,221

013 89,551,953 64,088,250

014 216,922,008 128,569,058

015 2,391,766,170 2,445,461,864

016 1,381,473,511 1,480,963,978

017 128,327,787,857 123,354,650,438

018 3,516,409,787 4,640,435,847

019 1,266,299,151 1,503,070,467

020 2,250,110,636 3,137,365,380

021 97,730,312,360 93,162,505,164

022 25,195,503,754 24,974,507,168

023 18,291,330,292 18,364,633,980

024 54,243,478,314 49,823,364,016

025 3,845,640,093 2,679,154,333

026 339,202,505 289,207,345

027 3,506,437,588 2,389,946,988

028 2,068,340,448 1,907,560,763

029 53,653,841 53,000,707

030 0 0

031 53,653,841 53,000,707

032 0 0

033 0 0

034 2,419,447,861 2,429,329,217

035 109,633,804,390 104,871,986,031

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

037 1,688,334,860 -152,795,851

038 6,413,042,354 8,056,916,701

039 64,048,522 64,048,522

040 3,910,540,693 3,903,637,903

041 213,177,938 206,018,032

042 0 0

043 18,693,983,467 18,482,664,407

044 128,327,787,857 123,354,650,438

045 18,693,983,467 18,482,664,407

046 18,671,985,811 18,460,368,461

047 21,997,656 22,295,946

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 31.03.2017

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 1,548,371,742 1,548,371,742 1,446,478,578 1,446,478,578

049 689,328,208 689,328,208 576,687,339 576,687,339

050 859,043,534 859,043,534 869,791,239 869,791,239

051 321,024,115 321,024,115 354,297,095 354,297,095

052 30,947,548 30,947,548 31,836,877 31,836,877

053 290,076,567 290,076,567 322,460,218 322,460,218

054 9,555,658 9,555,658 9,583,613 9,583,613

055 -10,257,769 -10,257,769 -71,823,800 -71,823,800

056 0 0 0 0

057 -3,300,439 -3,300,439 1,325,297 1,325,297

058 3,561,326 3,561,326 1,191,167 1,191,167

059 0 0 0 0

060 0 0 0 0

061 0 0 0 0

062 0 0 75,002 75,002

063 30,326,793 30,326,793 52,440,213 52,440,213

064 62,174,295 62,174,295 84,654,060 84,654,060

065 104,310,766 104,310,766 115,738,590 115,738,590

066 535,226,250 535,226,250 556,063,229 556,063,229

067 601,642,949 601,642,949 597,895,190 597,895,190

068 60,891,391 60,891,391 790,105,244 790,105,244

069 540,751,558 540,751,558 -192,210,054 -192,210,054

070 100,730,949 100,730,949 -39,414,203 -39,414,203

071 440,020,609 440,020,609 -152,795,851 -152,795,851

072 5 5 -2 -2

073 440,020,609 440,020,609 -152,795,851 -152,795,851

074 439,480,285 439,480,285 -153,410,599 -153,410,599

075 540,324 540,324 614,748 614,748

Previous period

1

1. Interest income

2. Interest expense

for the period 01.01.2017 31.03.2017

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 -1,191,167 0 -1,191,167

005 0 0 0 0 0 -7,459,932 -6,103 -7,466,035

006 0 0 0 0 0 1,479,694 0 1,479,694

007 0 0 -975 -44,144,055 0 11,499 -310,355 -44,443,886

008 0 0 -975 -44,144,055 0 -7,159,906 -316,458 -51,621,394

009 0 0 0 0 -153,410,599 0 614,748 -152,795,851

010 0 0 -975 -44,144,055 -153,410,599 -7,159,906 298,290 -204,417,245

011 0 0 0 0 0 0 0 0

012 0 0 0 0 0 0 0 0

013 0 -6,901,815 0 0 0 0 0 -6,901,815

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

015 0 0 0 0 0 0 0 0

016 0 0 0 -1,686,124,275 1,686,124,275 0 0 0

017 6,404,839,100 -6,901,815 3,974,588,240 4,662,986,953 3,218,837,951 206,018,032 22,295,946 18,482,664,407

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. 31.03.2017. in the period from

Transfer to reserves

Dividends paid

Distribution of profit (014+015)

Balance as at 31 December of the current period

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

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

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

interestsTotal

1

Balance as at 1 January of the current period

Position nameAOP

code

Attributable to shareholders of the Bank

to

AOP code Previous period Current period

2 3 4

001 746,733,693 461,800,679

002 439,480,285 -192,210,053

003 60,891,391 794,858,814

004 77,263,602 80,119,608

005 -9,569,838 187,024,187

006 -426,827 -14,374,814

007 179,095,080 -393,617,063

008 4,261,322,272 2,027,612,708

009 1,253,039,260 219,012,921

010 118,302,232 -94,332,139

011 2,637,750,334 4,580,389,590

012 494,366,553 -1,921,921,212

013 -2,081,004 -81,190,504

014 -240,226,553 -718,464,762

015 2,401,260 882,626

016 -2,229,810 43,236,188

017 -2,723,764,701 -3,285,451,685

018 -274,098,943 -36,933,144

019 -2,480,679,440 -3,331,838,595

020 0 199,527

021 31,013,682 83,120,527

022 2,284,291,264 -796,038,298

023 -108,137,291 -5,884,668

024 2,176,153,973 -801,922,966

025 -58,399,749 -12,448,296

026 -58,417,501 -123,923,166

027 0 25,435,621

028 17,752 17,572

029 0 86,021,677

030 0 0

031 106,925,968 53,607,004

032 106,959,179 53,411,710

033 0 195,294

034 0 0

035 0 0

036 -33,211 0

037 0 0

038 2,224,680,192 -760,764,258

039 -65,516,510 -48,223,685

040 2,159,163,682 -808,987,943

041 8,802,849,127 12,812,760,339

042 10,962,012,809 12,003,772,396

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)

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

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

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)

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

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

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

CASH FLOW STATEMENT - Indirect methodin the period from 01.01.2017. 31.03.2017. Amounts in HRK

Position name

NOTES TO THE FINANCIAL STATEMENTS

in HRK

Net liquid assets 31.12.2016. 31.03.2017.

Cash 2,868,720,100 2,919,932,259

Deposits w ith the CNB 12,295,520,389 11,435,676,392

Deposits w ith banking institutions 12,070,578,371 9,462,906,842

Treasury bills and CNB bills 4,439,697,564 4,530,900,082

Securities and other f inancial instruments held for trading 21,275,609 103,111,120

Secutiries and other f inancial instruments available for sale 5,214,397,980 5,862,891,280

Securities and other f inancial instruments w hich are not actively traded,

but are designated to fair value in income statement 126,801,837 125,786,628

37,036,991,850 34,441,204,603

Loans to and receivables from customers 31.12.2016. 31.03.2017.

Companies and similar organisations and government 54,656,455,841 55,899,799,917

Individuals and unincorporated businesses 35,992,652,625 35,652,299,966

Total gross loans 90,649,108,465 91,552,099,883

Companies and similar organisations and government (7,123,667,755) (7,795,585,416)

Individuals and unincorporated businesses (2,779,419,928) (2,717,062,246)

Impairment allowance (9,903,087,683) (10,512,647,662)

80,746,020,782 81,039,452,221

Deposits 31.12.2016. 31.03.2017.

Companies and similar organisations and government 31,715,293,702 29,413,857,671

Individuals and unincorporated businesses 60,512,513,791 59,796,091,029

Banks and other f inancial institutions 5,502,504,867 3,952,556,464

97,730,312,360 93,162,505,164

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.

Intermediation in trade of various

products 100.0

UniCredit Partner d.o.o.

Intermediation in trade of various

products 80.0

ALLIB NEKRETNINE d.o.o.

Rent and management of the ow n

property or leased property 100.0

BACAL ALPHA d.o.o.

Organisation of project delivery for

buildings 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

Promjene u obuhvatu konsolidacije

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 show n below :

Cumulative Quarterly Cumulative Quarterly

Interest and similar income 1,548,371,742 1,548,371,742 1,446,478,578 1,446,478,578

Loans to and receivables from customers 1,131,352,500 1,131,352,500 1,029,442,136 1,029,442,136

Debt securities 51,239,039 51,239,039 50,481,101 50,481,101

Loans to and receivables from banks 8,265,648 8,265,648 8,015,450 8,015,450

Derivative instruments 357,514,555 357,514,555 358,539,892 358,539,892

Interest expense and similar charges 689,328,208 689,328,208 576,687,339 576,687,339

Current accounts and deposits from banks 31,799,465 31,799,465 19,892,124 19,892,124

Current accounts and deposits from individuals 205,878,494 205,878,494 135,284,010 135,284,010

Current accounts and deposits from companies and other organisations 57,296,417 57,296,417 43,769,383 43,769,383

Borrow ings 48,150,314 48,150,314 30,118,177 30,118,177

Derivative instruments 346,203,518 346,203,518 347,623,645 347,623,645

859,043,534 859,043,534 869,791,239 869,791,239

Cumulative Quarterly Cumulative Quarterly

Fee and commission income 321,024,115 321,024,115 354,297,095 354,297,095

Domestic payment transaction related fees and commissions 124,167,855 124,167,855 132,492,698 132,492,698

Credit card related fees and commissions 67,824,340 67,824,340 70,023,748 70,023,748

Foreign payment transaction related fees and commissions 39,353,855 39,353,855 34,535,892 34,535,892

Investment management, brokerage and consultancy fees 41,087,429 41,087,429 65,344,290 65,344,290

Other fees and commissions 48,590,636 48,590,636 51,900,467 51,900,467

Fee and commission expense 30,947,548 30,947,548 31,836,877 31,836,877

Credit card related charges 16,662,707 16,662,707 17,571,945 17,571,945

Domestic payment transaction related charges 8,273,662 8,273,662 8,656,532 8,656,532

Foreign payment transaction related charges 1,931,964 1,931,964 1,368,294 1,368,294

Other fees and commissions 4,079,215 4,079,215 4,240,106 4,240,106

290,076,567 290,076,567 322,460,218 322,460,218

Cumulative Quarterly Cumulative Quarterly

Impairment losses on loans to and receivables from customers 32,135,326 32,135,326 (791,229,613) (791,229,613)

Other impairment losses and provisions (93,026,717) (93,026,717) 1,124,369 1,124,369

(60,891,391) (60,891,391) (790,105,244) (790,105,244)

Earnings/(loss) per sharePrevious period

31.12.2016.

Current period

31.03.2017.

Profit/(loss) attributable to equity holders of the Bank 1,686,124,275 (153,410,659)

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

Basic and diluted earnings/(loss) per share

(expressed in HRK per share) 5.27 -1.92

Impairment losses and provisions

Previous period

31.03.2016.

Current period

31.03.2017.

Net interest income

Previous period

31.03.2016.

Current period

31.03.2017.

Net fee and commission income

Previous period

31.03.2016.

Current period

31.03.2017.