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: 7.3 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 H1 2016 EUR M 37,723 40,954 41,693 41,911 42,750 44,161 21,218 GDP Growth, % 0.1 1.6 0.2 1.3 1.6 3.0 3.5 Current EUR M (330.2) 375.1 (108.4) 765.2 495.2 609.0 780.1 account % of GDP (0.9) 0.9 (0.3) 1.8 1.2 1.4 1.7 EUR M 1,170 1,476 1,321 1,384 1,285 1,593 1294.7 FDI % of GDP 3.1 3.6 3.2 3.3 3.0 3.5 2.0 Budget deficit/ % of GDP (3.2) (2.0) (0.3) (0.4) (5.4) (2.1) 1 surplus Growth of Real GDP, Consumption and Investments Bulgaria Current Ratings Date Outlook Rating 5 June 2015 Stable Baa2 11 Dec 2015 Stable BB+ 4 Dec 2015 Stable BBB- 4 Source: Bulgarian National Bank, National Statistical Institute, Ministry of Finance Bulgarian Economic Overview Main Economic Indicators – Bulgaria GDP (growth, %) HICP inflation ( period average, %) 3.0 2.7 2.7 3.4 2.5 2.0 2.1 2.4 1.5 1.3 1.4 1.1 1.2 0.5 0.4 -0.8 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 -1.6 Unemployment rate ( %) -1.1 12.3 12.9 11.3 11.4 9.1 8.6 7.9 7.4 2011 2012 2013 2014 2015 f2016 f2017 f2018 5 Source: Spring 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) • Piraeus Bank Bulgaria • T.C. Ziraat bank, Sofia branch • Eurobank EFG, Bulgaria • Cibank • 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, September 2016 Current Status of the Bank System Banking Sector as at 30 September 2016 у/oy 2010 2011 2012 2013 2014 2015 q3 2016 During the third quarter of 2016 the main financial Bank system assets, BGN M 73,726 76,811 82,416 85,747 85,135 87,524 89,822 Growth of assets in the bank indicators of the banking system remained stable. 4.0 4.2 7.3 4.0 -0.7 2.8 5.1 system,% Deposits, loan portfolio and balance sheet capital Bank system profit, BGN M 616.6 586 566.8 584.9 746.3 898.4 1 073.2 Profit growth, %, y/oy (20.96) (4.9) (3.3) 3.2 27.6 20.4 35.1 grew, and also liquid assets. Bank system deposits, BGN M 46,928 52,808 57,256 62,230 63,710 69,276 72,041 As of 30 Sept 2016, the profit of the banking Growth of deposits, % 8.4 12.5 8.4 8.7 2.4 8.7 7.3 Bank system loans, BGN M 53,073 55,208 56,847 57,376 54,158 52,256 52,144 system amounted to BGN 1.1 billion, i.e. by BGN Growth of loans, % 2.9 4.0 3.0 0.9 -5.6 -3.5 -2.2 279 million more than the one realized for the nine Capital adequacy, % 17.48 17.53 16.7 16.85 21.95 22.18 22.72* months of the previous year. Liquidity, % 24.37 25.57 26.0 27.1 30.12 36.71 37.35 *As at H1/ 2016 8 Source: Bulgarian National Bank, September 2016 Fibank and the Bulgarian Banking System Fibank and the Banking Sector as at 30 September 2016 in BGN M December 2015 September 2016 Growth, % Banking system 87,524 89,823 2.6 Assets Fibank 8,680 8,576 (1.2) Deposits (other than from Banking system 69,276 72,041 4.0 credit institution) Fibank 7,454 7,445 (0.1) Deposit of individuals Banking system 44,407 45,687 2.9 and households Fibank 5,954 6,288 5.6 Banking system 52,256 52,144 (0.2) Loans to non-banks Fibank 5,601 5,507 (1.7) Banking system 8,718 8,753 0.4 Consumer loans Fibank 743 794 6.9 Banking system 8,764 8,743 (0.2) Mortgage loans Fibank 595 574 (3.6) Banking system 33,285 33,087 (0.6) Corporate loans Fibank 4,120 4,015 (2.6) in BGN M Sept 2015 Sept 2016 Growth Banking system 794.7 1 073.5 35.1 Profit Fibank 10.0 55.1 453.3 9 1 Source: Bulgarian National Bank, Dec 2015 and Sept 2016 ; Unconsolidated data Fibank: Market Share and Market Position As at Sept 2016 Market position/ share Corporate loans 2nd/ 12.1% Deposits from individual and house holds 3nd/ 13.8% Assets 3rd/ 9.5% Deposits NFI 3rd/ 10.3% Loans NFI 3rd/ 10.6% Mortgage loans 6th/ 6.6% Consumer lending 6th/ 9.1% Top 10 Banks Loans NFI Assets Deposits NFI 14 305 9 666 17 908 UniCredit 13 485 UniCredit UniCredit 17 368 9 495 9 734 7 345 11 626 DSK (OTP … 9 361 DSK (OTP … DSK (OTP Group) 11 100 7 036 8 576 Fibank 7 445 Fibank 5 507 Fibank 8 680 7 454 5 601 7 147 UBB (NBG … 5 614 UBB (NBG … 4 583 UBB (NBG Group) 6 559 5 089 4 803 6 566 Eurobank 5 340 Eurobank 4 490 Eurobank 5 760 4 635 4 333 6 294 Raiffeisenb… 4 682 Raiffeisenb… 3 858 Raiffeisenbank 6 450 4 760 3 703 5601 4 652 3 440 SG Expressbank 5274 SG … 4 339 SG … 3 439 CCB 4 857 4 353 2 133 As at 4 642 CCB 4 175 CCB 2 070 Sept`16 Cibank 2 897 2 212 Piraeus 1 837 2 687 Allianz Bank 2 011 1 989 As at 2 871 Dec`15 Piraeus 2 115 Cibank 1 635 2 861 Piraeus 2 044 1 555 10 Source: Bulgarian National Bank, Dec 2015 and Sept 2016 ; Unconsolidated data Fibank: Market Share and Market Position Assets Deposits (other than from credit institution) Market share Market share 10.2% 9.9% 11.6% 9.5% 10.8% 10.5% 10.3% 10.3% 8.4% 8.7% 10.0% 7.9% 9.0% 6.7% 2010 2011 2012 2013 2014 2015 Sept 2016 2010 2011 2012 2013 2014 2015 Sept 2016 Growth y/y Growth y/y 28.3% 23.4% 25.7% 20.7% 16.1% 15.8% 13.2% 14.0% 12.5% 7.3% 7.8% 8.4% 8.4% 8.7% 8.7% 6.2% 4.0% 4.2% 4.0% 2.8% 2.4% 0.6% -0.7% 0.4% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 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% 5.0% 6.2% 5.1% 5.1% 3.5% 1.4% 2010 2011 2012 2013 2014 2015 Sept 2016 2010 2011 2012 2013 2014 2015 Sept 2016 Growth y/y Growth y/y 539.6% 22.6% 22.6% 15.1% 8.7% 10.1% -3.7% 18.4% 3.2% 27.6% 20.4% 2.9% 4.0% 3.0% -3.3% 0.9% -20.8% -21.0% -4.9% -3.5% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 -5.6% 2015 -85.9% -58.3% -10.4% Fibank Banking system Fibank Banking system 12 Source: Bulgarian National Bank, Unconsolidated data 3.