Table of Contents 1. Country Profile and Bulgarian Economic Overview 2. Fibank and the Bulgarian Banking System 3. Fibank at a Glance 4. Key Figures and Loan Portfolio 5. Company Profile 1. Country Profile and Bulgarian Economic Overview • Country Profile • Bulgarian Economic Overview Country Profile • Full name: Republic of Bulgaria • Memberships: European Union (since 2007), NATO (since 2004) AUSTRIA • Population: 7.2 M HUNGARY • CapitalSWITZ.: Sofia • Area: 110,994 sq km (42,855 sq miles)SLOVENIA Official language: Bulgarian FRANCE • CROATIA • Traditional religion: Orthodox Christianity ROMANIA • Monetary unit: Bulgarian Lev (plural: Levs, code: BGN) COMMONWEALTH OF • A currency board arrangement was established in 1997BOSNIA- through the Bulgarian INDEPENDENT STATES National Bank Act. HERZEGOVINA • Fixed Exchange rate: EUR 1 = BGN 1.95583 (BGN 1 SERBIA EUR 0.51) MONACO• Main tax rates: BULGARIA • corporate tax rate of 10%; MONT. KOS. BLACK Sofia • personal income tax rate ofITALY10%; SEA • Value Added Tax Act (VAT) rate of 20%; MACE- ANDORRA • Main exports: Ferrous and non-ferrous metals, petrol DONIA products, foods and drinks, textiles, machines and equipment ALB. • Payment Systems: RINGS, TARGET2 Madrid BNB, BISERA, BISERA7EUR, BORICA, SEPA, ESROT, CENTRAL DEPOSITARY GREECE TURKEY Balearic Lisbon SPAIN Islands 3 PORTUGAL Algiers Tunis MALTA Gibraltar (U.K.) Valletta Nicosia SYRIA Crete CYPRUS Mediterranean Sea Beirut Rabat Damascus LEBANON IRAQ TUNISIA ISRAEL MOROCCO Tripoli Tel Aviv-Yafo Amman JORDAN Cairo ALGERIA SAUDI ARABIA LIBYA EGYPT Red Sea Bulgarian Economic Overview Macroeconomic Indicators 2010 2011 2012 2013 2014 2015 2016 EUR M 37,723 40,954 41,693 41,911 42,750 44,161 47,139 GDP Growth, % 0.1 1.6 0.2 1.3 1.5 3.0 3.4 Current EUR M (330.2) 375.1 (108.4) 765.2 495.2 609.0 1,809.6 account % of GDP (0.9) 0.9 (0.3) 1.8 1.2 1.4 3.9 EUR M 1,170 1,476 1,321 1,384 1,285 1,593 682.8 FDI % of GDP 3.1 3.6 3.2 3.3 3.0 3.5 1.5 Budget deficit/ % of GDP (3.2) (2.0) (0.3) (0.4) (5.5) (1.7) 0.5 surplus Growth of Real GDP, Consumption and Investments Bulgaria Current Ratings Date Outlook Rating 5 June 2015 Stable Baa2 2 Dec 2016 Stable BB+ 2 Dec 2016 Stable BBB- 4 Source: Bulgarian National Bank, National Statistical Institute, Ministry of Finance Bulgarian Economic Overview Main Economic Indicators – Bulgaria GDP (growth, %) 3.4 HICP inflation ( period average, %) 3.0 3.2 2.9 3.0 3.0 2.4 2.0 1.7 1.5 1.5 1.3 1.1 0.5 0.4 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 -1.6 -1.1 -1.2 Unemployment rate ( %) 12.3 12.9 11.3 11.4 9.1 8.1 7.2 6.7 6.4 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 5 Source: Autumn Macroeconomic Forecast 2016 by Ministry of Finance 2. Fibank and the Bulgarian Banking System • The Banking System Structure • Current Status of the Bank System • Fibank and Bulgarian Banking System • Fibank: Market Share and Market Position Banking System Structure The Bulgarian banking sector comprises of 27 banks, allocated in three groups based on BNB classification: The five largest banks The other The Foreign bank based on total assets Bulgarian banks branches in Bulgaria Group I: Group II: Group III: • UniCredit Bulbanк • Raiffeisenbank, Bulgaria • Citi Bank Europe - Bulgaria branch • DSK Bank (OTP Group) • Societe Generale Expressbank • BNP Paribas S.A., Sofia branch • First investment bank • Central Cooperative Bank • ING Bank N.V., Sofia branch • United Bulgarian Bank (NBG Group) • Cibank • T.C. Ziraat bank, Sofia branch • Eurobank EFG, Bulgaria • Piraeus Bank Bulgaria • Isbank Gmbh-Sofia branch • Allianz Bank, Bulgaria • Investbank • Bulgarian Development Bank • Procredit Bank • Municipal Bank • International Asset Bank • Bulgarian-American Credit Bank • D Commerce Bank • TBI Bank • Tokuda Bank • Texim Bank • Commercial Bank Victoria 7 Source: Bulgarian National Bank and National Statistical Institute, December 2016 Current Status of the Bank System Banking Sector as at 31 December 2016 у/oy 2010 2011 2012 2013 2014 2015 2016 During the fourth quarter of 2016 deposits and Bank system assets, BGN M 73,726 76,811 82,416 85,747 85,135 87,524 92,095 Growth of assets in the bank balance sheet assets of the banking system 4.0 4.2 7.3 4.0 -0.7 2.8 5.2 system,% increased. The increase in cash and cash balances Bank system profit, BGN M 616.6 586 566.8 584.9 746.3 898.4 1 262.3 Profit growth, %, y/oy (20.96) (4.9) (3.3) 3.2 27.6 20.4 40.5 with the BNB and debt securities accounted for the Bank system deposits, BGN M 46,928 52,808 57,256 62,230 63,710 69,276 74,129 growth of liquid assets. As of end-December, the Growth of deposits, % 8.4 12.5 8.4 8.7 2.4 8.7 7.0 Bank system loans, BGN M 53,073 55,208 56,847 57,376 54,158 52,256 52,442 liquidity ratio calculated under BNB Ordinance No. Growth of loans, % 2.9 4.0 3.0 0.9 -5.6 -3.5 -1.8 11 reached 38.24% Capital adequacy, % 17.48 17.53 16.7 16.85 21.95 22.18 22.79* Liquidity, % 24.37 25.57 26.0 27.1 30.12 36.71 38.24 *As at Sept 2016 8 Source: Bulgarian National Bank, December 2016 Fibank and the Bulgarian Banking System Fibank and the Banking Sector as at 31 December 2016 in BGN M December 2015 December 2016 Growth, % Banking system 87,524 92,095 5.2 Assets Fibank 8,680 8,852 2.0 Deposits (other than from Banking system 69,276 74,129 7.0 credit institution) Fibank 7,454 7,691 3.2 Deposit of individuals Banking system 44,407 47,196 6.3 and households Fibank 5,954 6,376 7.1 Banking system 52,256 52,442 0.4 Loans to non-banks Fibank 5,601 5,502 (1.8) Banking system 8,718 8,677 (0.5) Consumer loans Fibank 743 762 2.6 Banking system 8,764 8,772 0.1 Mortgage loans Fibank 595 550 (7.5) Banking system 33,285 33,180 (0.3) Corporate loans Fibank 4,120 4,058 (1.5) in BGN M December 2015 December 2016 Growth Banking system 898 1 262 40.5 Profit Fibank 12.7 90.2 610.9 9 1 Source: Bulgarian National Bank, Dec 2015 and Dec 2016 ; Unconsolidated data Fibank: Market Share and Market Position As at Dec 2016 Market position/ share Corporate loans 2nd/ 12.2% Deposits from individual and house holds 3nd/ 13.5% Assets 3rd/ 9.6% Deposits NFI 3rd/ 10.4% Loans NFI 3rd/ 10.6% Mortgage loans 6th/ 6.6% Consumer lending 6th/ 9.1% Top 10 Banks Assets Deposits NFI Loans NFI 14 893 9 790 18 626 UniCredit 13 485 UniCredit UniCredit 17 368 9 495 9 786 7 082 11 643 DSK (OTP … 9 361 DSK (OTP … DSK (OTP Group) 11 100 7 036 8 852 Fibank 7 691 Fibank 5 502 Fibank 8 680 7 454 5 601 6 832 Eurobank 5 573 Eurobank 4 572 UBB (NBG Group) 6 559 4 635 4 333 6 818 UBB (NBG … 5 571 UBB (NBG … 4 344 Eurobank 5 760 5 089 4 803 6 364 SG … 4 827 Raiffeisenbank 3 885 Raiffeisenbank 6 450 4 339 3 703 5935 4 749 3 616 SG Expressbank 5274 Raiffeisenbank 4 760 SG … 3 439 CCB 4 970 4 458 2 141 4 642 CCB 4 175 CCB 2 070 As at Dec`16 3 103 Cibank Allianz Bank 2 178 Piraeus 1 780 2 687 2 011 1 989 As at Dec`15 2 908 Piraeus 2 172 Cibank 1 708 2 861 Piraeus 2 044 1 555 10 Source: Bulgarian National Bank, Dec 2015 and Dec 2016 ; Unconsolidated data Fibank: Market Share and Market Position Assets Deposits (other than from credit institution) Market share Market share 11.6% 10.8% 10.2% 10.5% 10.3% 10.4% 9.9% 9.6% 10.0% 8.7% 9.0% 7.9% 8.4% 6.7% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Growth y/y Growth y/y 23.4% 28.3% 20.7% 25.7% 16.1% 13.2% 15.8% 14.0% 12.5% 7.3% 7.8% 5.2% 8.4% 8.4% 8.7% 8.7% 4.0% 4.2% 4.0% 6.2% 7.0% 2.8% 2.0% 0.4% 2.4% 3.2% -0.7% 0.6% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Fibank Banking system Fibank Banking system 11 Source: Bulgarian National Bank, Unconsolidated data Fibank: Market Share and Market Position Loans to non-banks Profit 31.6% Market share Market share 11.5% 10.7% 10.6% 8.9% 7.7% 8.1% 6.5% 7.1% 5.0% 6.2% 5.1% 3.5% 1.4% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Growth y/y 610.9% Growth y/y 539.6% 22.6% 22.6% 15.1% 10.1% 40.5% 8.7% -3.7% 18.4% 3.2% 27.6% 20.4% 2.9% 4.0% 3.0% -3.3% 0.9% -58.3% -21.0% -4.9% -20.8% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 -3.5% -85.9% -5.6% -10.4% Fibank Banking system Fibank Banking system 12 Source: Bulgarian National Bank, Unconsolidated data 3.