FIRST INVESTMENT BANK Q1, 2019

CONFIDENTIAL

2CONFIDENTIAL

Table of contents

Section 1 Macro environment 3

Section 2 Banking system overview 10

Section 3 Fibank profile 15

Section 4 2018 Q4 Results and profitability 27

Section 5 Management and corporate governance 36

Section 6 Capitalization & leverage 39

Section 7 Funding and liquidity 44

Section 8 Appendix 47

3

MACROENVIRONMENT

SECTION 1

4CONFIDENTIAL

Country profile

Source: National Statistical Institute, Bulgarian National Bank, Ministry of Finance

• Full name: Republic of Bulgaria• Memberships: European Union (since 2007),

NATO (since 2004)• Population: 7.2 M• Capital: Sofia• Area: 110,994 sq km (42,855 sq miles)• Official language: Bulgarian• Traditional religion: Orthodox Christianity• Monetary unit: Bulgarian Lev (plural: Levs,

code: BGN)• A currency board arrangement was established

in 1997 through the Bulgarian National Bank Act.• Fixed Exchange rate: EUR 1 = BGN 1.95583

(BGN 1 EUR 0.51)• Main tax rates:

• corporate tax rate of 10%;• personal income tax rate of 10%;• Value Added Tax Act (VAT) rate of 20%;

• Main exports: Ferrous and non-ferrousmetals, petrol products, foods and drinks,textiles, machines and equipment

• Payment Systems: RINGS, TARGET2 BNB, BISERA, BISERA7EUR, BORICA, SEPA, ESROT, CENTRAL DEPOSITARY

FRANCE

SPAIN

SWITZ.

ITALY

ANDORRA

PORTUGAL

MONACO

Madrid

Lisbon

Rabat

Gibraltar (U.K.)Algiers

Balearic

Islands

MOROCCO

TUNISIA

MALTATunis

Tripoli

Cairo

Valletta

LEBANON

ISRAEL

CYPRUS

IRAQ

SYRIANicosia

Beirut

Damascus

AmmanTel Aviv-Yafo

JORDAN

TURKEY

Crete

COMMONWEALTH OF

INDEPENDENT STATES

ROMANIA

BULGARIA

HUNGARY

Sofia

GREECE

AUSTRIA

ALB.

SLOVENIA

CROATIA

BOSNIA-

HERZEGOVINASERBIA

KOS.

MACE-DONIA

MONT.

Mediterranean Sea

ALGERIA

LIBYA EGYPT

SAUDI ARABIA

Red

Sea

BLACKSEA

Bulgarian economy had strong results over past few years with high growth and low unemployment

KEY DRIVERS OF THE BULGARIANECONOMY

INFLATION & UNEMPLOYMENT DECREASED SINCE 2012

HICP & Unemployment(%, 2012-2018)

BULGARIAN GDP

GROWTH ABOVE EU

AVERAGE

GDP real growth(%, 2012-2018)

Source: International Monetary Fund; European Commission; Bulgarian Ministry of Finance; National Statistical Institute; Bulgarian National Bank

CONFIDENTIAL

5

2.3%

20182018

3.1

• In q1, 2019, the country's economyreported a real annual growth rate of 3.5%for the period (2011: 3.1%), influenced bythe improving external environment on aglobal scale, as well as the growingeconomic activity in the countries of theEuropean Union. The main driver of theeconomy was private consumption growingby 4.5% for Q1 (2018: 5%), due to higherinternal demand and positive dynamics inthe labor market;

• The unemployment rate declined to4.5% at the end of q1 2019, driven byemployment in trade, agriculture,hospitality industry and education;

• The current account remained positive,at the amount of BGN 654.3 М, or 1,1% ofGDP in q1, 2019.

3.5

q1, 2019q1, 2019

2.8%

Going forward, the economy is expected to continue strong growth anywhere between ~3-4% p.a.

KEY DRIVERS OF THE BULGARIAN ECONOMY

• Future GDP growth is hoveringaround 3-4% being driven by strongnet exports and privateconsumption. The positive outlook isalso supported by expectedacceleration of EU fundsabsorption

6

• Unemployment rate is expected tocontinue the decline from previousyears, but at a lower pace. The trendis driven by the recovery in domesticdemand

• The inflation rate is expected togradually increase to 1.8% in 2021due to strong domestic demand, higherprices for utilities and recovering energyprices

UNEMPLOYMENT EXPECTED TO FURTHER DECREASE & INFLATION TO INCREASE

HICP & Unemployment(%, 2016-2021F)

GDP GROWTH EXPECTED TO CONTINUE AT

ATTRACTIVE LEVELS

GDP real growth(%, 2016-2021F)

Source: International Monetary Fund; European Commission; Economist Intelligence Unit; Bulgarian Ministry of Finance

CONFIDENTIAL

7CONFIDENTIAL

Bulgarian Economic Overview

Growth of Real GDP, Consumption and Investments

Macroeconomic indicators 2013 2014 2015 2016 2017 2018 q1, 2019

GDPEUR M 42, 010 42, 824 45, 288 48, 128 51, 662 55, 181 12, 606

Growth, % 0.9 1.8 3.5 3.9 3.8 3.1 3.5

Current accountEUR M 535.6 530.6 (15.4) 1,244.0 1, 578,2 2,547.5 654.3

% of GDP 1.3 0.1 0.0 2.6 3.1 4.6 1.1

FDIEUR M 1, 384 347 2, 399 1, 003 2, 314 1, 744 (254.4)

% of GDP 3.3 0.8 5.3 2.1 4.5 3.2 (0.4)

Budget deficit/ surplus % of GDP (0.4) (5.4) (1.7) 0.2 1.1 1.0

Bulgaria Current Ratings

Source: Bulgarian National Bank, National Statistical Institute, Ministry of Finance

Date Outlook Rating

26 May 2017 Stable Baa2

30 November 2018 Positive BBB-

16 November 2018 Stable BBB

8CONFIDENTIAL

Macro environment: Key indicators historic development

Indicators 2013 2014 2015 2016 2017 2018 q1, 2019

Gross domestic product (BGN million) 82,166 83,634 88,571 94,130 98,361 107, 925 24, 656

Gross domestic product, real growth (%) 0.9 1.3 3.6 3.9 3.6 3.1 3.5

- Consumption, real growth (%) (1.9) 2.2 3.8 3.3 4.5 5.0 4.5- Gross fixed capital formation, real

growth (%)0.3 3.4 2.7 (6.6) 3.8 10.2 2.5

Export (% of GDP) 50.5 49.2 48.4 48.0 52.2 49.6 68.0

Inflation at period-end (%) (1.6) (0.9) (0.4) 0.1 2.8 2.7 3.6

Average annual inflation (%) 0.9 (1.4) (0.1) (0.8) 2.1 2.8 3.1

Unemployment (%) 11.8 10.7 10.0 8.0 7.1 6.1 5.0

Current account (% of GDP) 1.3 1.2 0.0 2.6 6.7 4.6 1.1

Trade balance (% of GDP) (7.0) (6.5) (5.8) (2.0) (1.5) (4.1) (0.4)Foreign exchange reserves of BNB (EUR

million)14,426 16,534 20,285 23,899 23,662 23,510 25,027

Foreign direct investments (% of GDP) 3.3 0.8 5.3 2.1 4.5 3.2 (0.4)

Gross external debt (% of GDP) 87.9 91.9 74.0 71.1 65.5 60.4 57.1

Public debt (% of GDP) 9.7 15.3 13.2 15.0 12.3 11.1 10.2

Consolidated budget balance (% of GDP) (1.8) (3.7) (2.8) 1.6 0.8 -

Exchange rate of USD (BGN for USD 1) 1.42 1.61 1.79 1.86 1.63 1.71 1.74

Source: National Statistical Institute, Bulgarian National Bank, Ministry of Finance

9CONFIDENTIAL

Mid-term macro forecast

Spring forecast 2019, Ministry of Finance

2017 2018 2019F 2020F

GDP real growth, % 3.6 3.1 3.9 3.9

- consumption 4.3 5.0 4.3 4.0

- investment 3.4 6.6 4.9 5.9

- exports 6.1 1.4 5.9 6.0

- imports 6.5 1.6 6.8 6.9

Unemployment, % 6.5 6.1 5.9 5.6

Average HICP, % 1.1 2.3 1.7 1.8

Current account, % of GDP

4.8 4.6 4.2 4.1

Trade balance, % of GDP

-1.5 -4.1 -2.8 -3.0

FDI, % of GDP 4.5 3.2 2.1 2.2

M3 aggregate 6.3 6.5 6.6 6.8

Loans to corporates 3.8 5.2 6.9 6.9

Loans to individuals 6.3 14.1 5.8 6.1

MACRO ASSUMPTIONS2018-2020F

FAVOURABLE MACRO ENVIRONMENT IN THE MID TERM (2018-2020F)

▪ Positive assumptions of the economic development during the period 2018-2020;

▪ Stable growth in GDP to slow down in 2018 & then to gradually increase exceeding 3% y/o/y;

▪ The consumption will accelerate its growth up to 4.0% y/o/y until 2020;

▪ The growth in exports will reach 6.0% y/o/y in 2020;

▪ FDI are expected to remain stable around 2.2% of GDP;

▪ Full production capacity in the business;

▪ Additional increase in the share of goods with a high value added;

▪ Recovery of the labour market;

▪ Reduction in unemployment rate down to 5.6% in 2020;

▪ Strong fiscal position;

▪ Increased activity on the real estate market of residential and office space;

▪ Augmentation of public investments;

▪ Acceleration in the absorption of EU funds;

▪ Expected completion of important infrastructure projects.

10

BANKING SECTOR OVERVIEW

SECTION 2

11CONFIDENTIAL

Sector prospects: gradual increase in loan demand, on-going consolidation & new upward interest rate cycle.

BNB FORECAST 2018-19

Annual rate of change 2018 2019f

Claims on non-government sector 4.9% 5.6%

- claims on non-financial corporations 4.6% 6.1%

- claims on households 5.2% 4.3%

Deposits of the non-government sector 6.8% 7.2%

▪ In the 2018–2019 period funds attracted from the non-government sector in the banking system are expected to grow further, though at lower than the average 2016 rates, driven by the projected acceleration of private consumption and, correspondingly, by a slight decrease in the savings rate, as well as by the expectations of comparatively strong demand for currency in circulation. The expectations of retaining deposit rates at the attained low levels will also contribute to the foreseen trends regarding funds attracted from corporations and households in the banking system.

▪ The recovery of private consumption and investment amid relatively low lending rates will be a factor stimulating demand for loans from the non-government sector. Progressively improving economic activity is also expected to be a factor behind banks’ increasing lending risk appetite. The expectations of gradually accelerating credit growth correspond to the assumption of retaining positive trends in new loans to the private sector which have occurred since the second quarter of 2016.

Source: BNB Economic Review 4/2018

NET PROFIT

TOTALDEPOSITS

TOTALLOANS

Loans,BGNb

53,6

57,757,8

+0.2%

+7.7%

78,484,6 85,9

Deposits,BGNb

+1.6%+7.9%

Net profit,BGNM

Net profit

288

309-7%

+15.7%

267

12

Current Status of the Bank System

Banking Sector as at 31 March 2019

у/oy 2013 2014 2015 2016 2017 2018 q1, 2019

Bank system assets, BGN M 85 747 85 135 87 524 92 095 97 807 105 557 108 347Growth of assets in the bank system,% 4.0 (0.7) 2.8 5.2 6.2 7.9 10.9

Bank system profit, BGN M 584.9 746.3 898.4 1 262.3 1 174.0 1 678 309

Profit growth, %, y/oy 3.2 27.6 20.4 40.5 (7.0) 42.9 15.7

Bank system deposits, BGN M 62 230 63 710 69 276 74 129 78 405 84 571 85 922

Growth of deposits, % 8.7 2.4 8.7 7.0 5.8 7.9 9.3

Bank system loans, BGN M 57 376 54 158 52 256 52 442 53 553 57 688 58 569

Growth of loans, % 0.9 (5.6) (3.5) (1.8) 2.1 7.7 7.6

Capital adequacy, % 16.85 21.95 22.18 22.15 22.08 20.01 20.38

Liquidity, % 27.1 30.12 36.71 38.24 38.97 - -

In the period December 2018 – March 2019, the

dynamics of processes in the banking system

was impacted by the increase in assets, deposits

and loans.

Source: Bulgarian National Bank, March 2019

12

13

Fibank and the Bulgarian Banking System

in BGN M December 2018 March 2019 Growth, %

AssetsBanking system 105,557 108,247 2.5%

Fibank 9,312 9,322 0.1%

Deposits (other than from credit institution)

Banking system 84,571 85,922 1.6%

Fibank 8,095 8,204 1.4%

Deposit of individuals and households

Banking system 53,383 54,282 1.7%

Fibank 6,393 6,447 0.8%

Loans to non-banksBanking system 57,688 58,569 1.5%

Fibank 6,167 6,225 0.9%

Consumer loansBanking system 10,333 10,545 2.1%

Fibank 958 992 3.6%

Mortgage loansBanking system 10,906 11,264 3.3%

Fibank 728 762 4.6%

Company loansBanking system 34,871 35,377 1.4%

Fibank 4,469 4,459 -0.2%

in BGN M March 2018 March 2019 Growth

ProfitBanking system 267 309 15.7%

Fibank 22 16 -27.7%

Fibank and the Banking Sector as at 31 March 2019

Source: Bulgarian National Bank, December 2018 and March 2019

13

14

The banking sector: 25 banks & foreign branches operated in the country. Fibank in Top5 banks at March 2019.

TOTAL ASSETS(Q1’19, BGNm)

MARKET SHARE (Q1’19%)

Citi Bank Europe- Sofia Branch

890.4 0.82%

ING Bank N.V., Sofia Branch 873.9 0.81%

Paribas S.A., Sofia Branch 862.8 0.80%

Paribas Personal Finance S.A., Bulgaria Branch

632.2 0.58%

T.C. Ziraat Bank, Sofia Branch

316.6 0.29%

GROUP 3: FOREIGN BRANCHES

GROUP 2: OTHER BANKSGROUP 1: TOP 5 BANKS

TOTAL ASSETS(Q1’19, BGNm)

MARKET SHARE (Q1’19%)

UniCredit Bulbank 20,144.4 18.6%

DSK Bank (OTP) 15,110.4 14.0%

United Bulgarian Bank (KBC) 11,586.0 10.7%

First Investment Bank 9,321.6 8.6%

Eurobank Bulgaria 8,525.8 7.9%

TOTAL ASSETS(Q1’19, BGNm)

MARKET SHARE (Q1’19%)

Raiffeisenbank Bulgaria 7,907.4 7.30%

Expressbank (OTP) 6,391.0 5.90%

Central Cooperative Bank 5,726.9 5.29%

Piraeus Bank 2,904.2 2.68%

Bulgarian Development Bank 2,895.8 2.68%

Allianz Bank 2,797.6 2.58%

ProCredit Bank 2,211.4 2.04%

Municipal Bank 2,044.0 1.89%

Investbank 2,022.8 1.87%

International Asset Bank 1,502.7 1.39%

BACB 1,438.7 1.33%

D Commerce Bank 860.0 0.79%

TBI Bank 774.4 0.72%

Tokuda Bank 395.1 0.37%

Texim Bank 316.6 0.29%

▪ Fibank is the largest Bulgarian-owned bank ▪ Fibank is the fourth largest overall, systemically important

to the Bulgarian banking system

14

15

FIBANK PROFILE

SECTION 3

16CONFIDENTIAL

Fibank aspires to be one of the best banks in Bulgaria, recognized as innovative & customer-oriented bank

BUSINESS MODEL IN LINE WITH BANK MISSION

VISION AHEAD TO GROW FORWARD IN

RETAIL & SME

STRONG COMPETITIVE ADVANTAGES SUPPORTIVE

TO OUTPACE PEERS

First-class customer service

Flexibility in decision

making

Deep knowledge

of the market

Solid market

positions

Wide branch

network

High professional standards

Well recognized

brand

▪ Fibank aspires to be among the best banks in Bulgaria, recognized as a steadily growing, innovative, client-oriented bank, offering outstanding products and services.

▪ Fibank aims to ensure excellent careers for its employees & social contribution to the community.

▪ The Bank seeks to continue to develop high-technological solutions providing its customers with opportunities for banking from any place at any time.

▪ Emphasis on mortgage & consumer lending, the card business & innovative payment solutions in line with client needs & digital trends in banking business

RETAIL BANKING

▪ Strong focus on products & services to micro, small & medium enterprises (SME), with flexible approach and knowledge of the market & local specifics

COMMERCIAL BANKING

▪ Continue to develop model in line with the best corporate governance & risk mgmt. standards in banking industry

BEST STANDARDS

1

2

3

CONFIDENTIAL

Fibank Launches its Smart Lady

Program Aimed at Women in

Business; Fibankwon second place

in the Offering Innovation

category of the Efma-Accenture

DMI Awards 2018

17

2000Assets:

€173m

2005Assets:

€1.3bn

2010Assets:

€2.6bn

2012Assets:

€3.6bn

2018Assets:

€4.8bn

Fibank was established

1993 1997 1999 2000 2005 2007 2010 2013 2015

Fibank was established

EBRD became a shareholder in Fibank with 20% stake.

Sold its shares in 2005.

Fibank Albania

established as a branch.

Grew into a separate

100%-owned entity,

licensed by BoA in 2007

Fibank started developing its retail banking. Retail deposits grew 2.3 fold.

Fibank issued EUR200m

Eurobonds. First in

Bulgaria to issue

perpetual tier 2 bonds

Fibank realized

the biggest banking IPO in

Bulgaria.

1998-2008: Fibank attracted > EUR800m on

international debt markets

Fibank welcomed

its one millionth

client

2011-2013: First in

Bulgaria to issue Basel 3

compliant tier 1 bonds

totaling EUR100m

Fibank acquired MKB Unionbank in a EUR 24m, 0.25x P/B

deal

Joint project with the IFC for

enhancing corporate governance & risk mgmt.

2016

Fibank is among the first banks in Bulgaria to implement new chip

technology (EMV) in issuing debit & credit cards

Fibank was the first bank in Bulgaria to

offer contact-less payments

based on PayPass (NFC)

technology

Fibank first in the Balkans launched an innovative

platform for digital payments

via mobile devices, with contactless

(NFC) function.

2018

Fibankcredit ratings were

upgraded by Fitch and

Moody's

Top 3 Player: 25 years of stable development with focus on innovation and customer experience

2017

Fibank is top 4 player in assets, loans and deposits at March 2019. Committed to innovation & product leadership

LOANS DEPOSITSTOTAL ASSETS

4

3

4

Market share (Q1/19 & 2018) Market share (Q1/19 & 2018) Market share (Q1/19 & 2018)

18

Increased market shares in consumer loans & retail deposits at March 2019 as part of long-term strategy.

CONSUMERLOANS

MORTGAGELOANS

RETAILDEPOSITS

CORPORATE LOANS

3

5

6

2

19

Market share (Q1/19 & 2018) Market share (Q1/19 & 2018) Market share (Q1/19 & 2018) Market share (Q1/19 & 2018)

20CONFIDENTIAL

Fibank with diverse and stable business model. Business mix weighted towards traditional banking.

▪ Limited presence

▪ Traditional banking products and services

▪ Focus on retail & SME clients

BUSINESSMIX

RETAILBANKING

COMMERCIALBANKING

FOREIGNOPERATIONS

CYPRUS

ALBANIA

Mortgage lending

Card business

Consumer lending

Dep

osit

an

d s

avin

gs p

ro

du

cts

Paym

en

t servic

es,

е-b

an

kin

g

Priv

ate

ban

kin

g,

Go

ld &

co

ins

In

vestm

en

t &

dep

osit

ory s

ervic

es

Factoring

Microlending

Corporate lending

SME lending

Trade financing

Project financing

EU programs financing

▪ Retail banking

▪ Corporate banking

▪ SME lending

▪ Microlending

▪ Card payments

▪ E-banking

▪ Private banking

▪ Trade financing

▪ Project financing

▪ Factoring

▪ EU programs financing

▪ Deposit & savings

▪ Payment services

▪ Money and capital markets

▪ Foreign exchange

▪ Investment gold

▪ Package programs

UNIVERSAL & TRADITIONAL

BANKING

251

254

260

267

269

2015 2016 2017 2018 q1, 2019

Number of customers withloan products, thousands

Total number of customers,thousands

21CONFIDENTIAL

Fibank customer profile: 91% retail customers, 62% in 25-55 age group. Strong potential for cross selling

CUSTOMERS GREW 1.36% DURING 2018

TO REACH 1.190M

22.4% OF RETAIL CLIENTS WITH LOAN PRODUCTS. CROSS SALE POTENTIAL

YOUNG & WELL-BALANCED CUSTOMER

PROFILE

+0.75%

1.141

1.160

1.174

1.1901.193

2015 2016 2017 2018 q1,

2019

Source: Unconsolidated data, March 2019

+0.25%

DEPOSIT PRODUCTS

PAYMENT SERVICES

PACKAGE PROGRAMS

DEBIT & CREDIT CARDS

DINERS CLUB CARDS

MORTGAGE LOANS

CONSUMER LOANS

BUSINESS LOANS

TRADE FINANCING

PROJECT FINANCING

FACTORING

EU FINANCING

E-BANKING

INVESTMENT SERVICES

GOLD & COINS

22CONFIDENTIAL

Distribution platform: Country-wide branch network with 154 locations in Bulgaria & 10 abroad (Cyprus & Albania)

MAP OF BRANCHES

2018 Sofia Country Total

Branches 52 102 154

ATMs 154 484 638

POS 5 738 4 755 10 493

ATM&POS 5 892 5 239 11 131

Grand total 5 944 5 341 11 285

NETWORK IN BULGARIA

FULL RANGE OF SERVICES CYPRUS BRANCH

▪ Fibank Cyprus branch has operated since 1997, initially mainly in the area of corporate banking. Over the years, it systematically and consistently expanded its products and services.

▪ Currently, the branch offers standard credit and savings products, payment services and e-banking, with a strategic focus on retail & SMEs customers.

FIBANK ALBANIABRANCH NETWORK

2018 Total

Head Office 1

Branches 10

Total 11

ATMs 29

Grand total 40

▪ Much of the branch network operates with extended working hours, as well as at weekends.

RETAILCLIENTS

BUSINESS CLIENTS

CONFIDENTIAL 23

MULTI-CHANNEL DISTRIBUTION NETWORK

PHYSICAL DISTRIBUTION

CHANNELS

REMOTE DISTRIBUTION

CHANNELS

Branch network

Direct sales

Remote channels

Integrated platform for electronic banking

My Fibank

Physical channels

ATMnetwork

POSnetwork

Corporate blogContact

center

▪ Branch network is the main channel for distribution of bank products & services.

▪ Fibank maintains a country-wide branch network with 154 locations in Bulgaria & 10 abroad.

▪ Further focus on optimization & increase efficiency of the branch network.

▪ Strong network of ATM & POS devices places Fibank among the market leaders

▪ Direct sales to corp.& institutional clients

▪ New integrated e-platform for digital banking featuring:

➢ E-banking

➢ Mobile banking

➢ Utility payments

➢ E-statements

▪ New opportunity to apply for consumer loan via Contact center. In 2016, over 25 campaigns carried out; 150’000 outgoing calls with 75% respondents reached.

▪ Corporate blog functioning since 2008 to test client’s satisfaction on Bank products & servicesCorporate

website

Online store for gold products

Multi-channel distribution network with adequate balance between physical locations & remote banking channels

24CONFIDENTIAL

Group structure: Clear strategic focus on business in Bulgaria

FIRST INVESTMENT BANK AD

Companies in the financial sector

• First Investment Bank – Albania Sh.a.

• Diners Club Bulgaria AD

• Fi Health Insurance AD

Ancillary services companies

• First Investment Finance B.V.

• Balkan Financial Services EAD

• Turnaround Management EOOD

• Creative Investment EOOD

• Lega Solutions EOOD

• AMC ImotiEOOD

• Debita OOD

• Realtor OOD

Subsidiary companies

Parent company

CORPORATE GROUP STRUCTURE

3 KEY SUBSIDIARIES IN FINANCIAL SECTOR

▪ Replication of the successful business model in Bulgaria & its adaptation to the Albanian banking market through a subsidiary bank in Albania with limited presence and focus on retail & SME business.

▪ Further develop the strategic focus on the card business through promoting and consistently increasing penetration of the Diners Club brand in the local market in Bulgaria by offering new services for cardholders, and expanding the network of POS terminals accepting payments with Diners Club cards.

▪ Offering of insurance products & services in line with license of FiHealth Insurance for attracting new customers in the retail & SME segments.

SHAREHOLDERS’ STRUCTURE

25CONFIDENTIAL

Key subsidiaries: Sound performance & results in 2018, growing contributors to Group profit

FIRST INVESTMENT BANK - ALBANIA

DINERS CLUB BULGARIA

FIHEALTHINSURANCE

BGNm 2017 2018 %

Total income 16 17.9 11.9%

Net profit 6 7.1 18.3%

Loans 140 186.6 33.3%

Total assets 309 391 26.5%

Deposits 253 330 30.4%

Equity 39

BGNm 2017 2016 %

Total income 2.6 2.3 13%

Net profit 0.3 0.2 32%

Loans 10.5 9.1 15%

Total assets 12.1 11.2 8%

Overdraft 9.0 8.3 9%

Equity 2.4 2.1 14%

BGNm 2017 2018 %

Total income 4.5 5.5 22.2%

Net profit 0.1 0.3 200%

Finan.assets 4.9 5.5 12.2%

Receivables 2.4 3.0 25.0%

Total assets 8.7 9.6 10.3%

Equity 5.8 6.1 5.2%

▪ In 2018, First Investment Bank –Albania Sh.a. reported positive financialresults and sustainable developmentwhile maintaining high standards of riskmanagement and customer-orientedapproach.

▪ The Bank maintained strong liquidityand capital positions, its capitaladequacy ratio at year-end amountingto 17.36% against a minimum requiredlevel of 12% according to the applicableregulatory requirements in the country

▪ For 2017 the company reported a netprofit of BGN 264 thousand, comparedto BGN 179 thousand a year earlier.

▪ The company’s assets increased by8.3% to BGN 12,106 thousand (2016:BGN 11,177 thousand), mainly due toan increase in receivables fromcustomers which amounted to BGN10,357 thousand or 14.0% more thanat the end of 2016 (BGN 9,086thousand). Loans and advances toindividuals formed 98.7% of allreceivables from customers (2016:98.7%).

▪ In 2017, Fi Health Insurance increasedthe amount of the premium income toBGN 4,457 thousand, compared to BGN3,266 thousand in 2016.

▪ The company’s assets grew by 12%, toBGN 8,722 thousand at year-end(2016: BGN 7,788 thousand), driven bythe increase in financial assets (2017:BGN 4,945 thousand; 2016: BGN 4,476thousand), which mainly comprise bankdeposits and Bulgarian governmentsecurities.

26CONFIDENTIAL

Recent awards confirmed Fibank’s successful development & strong focus on innovation & digitalization

EFMA-ACCENTURE DMI AWARDS 2018 2 AWARDS ON

DIGITAL CARDSBANK OF THE

YEAR AWARDSEUROMONEY

AWARDS

▪ Fibank won second place inthe Offering Innovationcategory of the Efma-Accenture DMI Awards 2018,which brought together someof the world's most renownedinstitutions and companies inthe retail segment. The Efmaorganizers and anauthoritative international juryhighly appreciated Fibank'sinnovation, launched for thefirst time in the Bulgarianmarket: a microchip forchildren and teenager debitcards, as well as the Bank'searly financial educationprogram.

▪ In April 2019 Fibank was awarded on “Product of the year” for Smart Lady program.

▪ Fibank received the first award for its digital cards, enabling clients to pay easy, secure and fast through their NFC phone.

▪ A Second award on digital cards was received on the Webitinnovation & technology festival, organized in Sofia in 2017.

▪ Fibank has won for 7 times the award for “Bank of the Client in the competition “Bank of the Year”

Best Bank in Bulgaria by the financial magazine Euromoney

27

RESULTS & PROFITABILITY

SECTION 4

28CONFIDENTIAL

Fibank with BGN 19,4m net profit in Q1,2019, used as a strong tool for internal capital generation.

FINANCIAL HIGHLIGHTS 2017Income statement, BGNth

2016 2017 2018 Q1,2019

Net interest income 319,179 260,926 267,088 63,262

Net fee & commission income 91,486 102,146 97,111 23,652

Net trading income 13,937 15,326 10,809 4,179

Other operating income 40,115 28,191 16,321 5,426

Total operating income 464,717 406,589 391,329 96,519

Administrative expenses (192,307) 204,698 (212,066) (54,999)

Impairment (156,120) 78,850 (83,378) (13,001)

Other income/(expenses), net (6,177) 20,431 65,127 (6,551)

Group profit after tax 98,811 92,210 171,546 19,431

Balance-sheet indicators, BGNth

2016 2017 2018 Q1,2019

Cash & balances with central banks 1,639,888 1,478,594 1,674,754 1,759,781

Portfolio of financial instruments 891,835 803,999 802,321 743,596

Loans & advances to customers 5,044,850 5,162,907 5,716,062 5,864,366

Repossessed assets 1,034,501 984,448 812,934 808,921

Investment property 222,267 218,212 242,558 242,558

Total assets 9,089,855 8,921,198 9,586,681 9,704,250

Customer deposits 7,911,911 7,583,819 8,342,691 8,475,867

Ministry of Finance deposit - - - -

Other borrowed funds 70,367 127,493 121,120 114,823

Perpetual debt - - - -

Hybrid debt 208,740 208,786 208,786 214,428

Total Group equity 856,836 947,350 846,272 866,503

1

2

3

4

7

8

For q1 net interest income amounted to BGN 63,262thousand or 3.4% less than the previous year (2018: BGN267,088 thousand), and remained a major source ofincome for the Group, constituting 65.5% of totaloperating income (2018: 68.2%).

Net trading & other income generated additional BGN4.2M to the total operating income for the period

Total operating income stood at BGN 96,5M (YE18: BGN391,3M).

. Impairment charges decreased further to BGN (13 M)vs. BGN 22,7M y/o/y, with the Bank’s cost of risk down to1.4% for 2017. Asset quality metrics improved & riskprofile enhancement efforts furthered in line with settargets.

Group profit after tax decreases to BGN 19,4M for thefirst three months of 2019 (YE18: BGN 171,6M), supportedby improving macro environment & related positivedynamics in loan loss provisions.

Improved market shares in consumer loans (9.4%, fifthplace) and mortgage (6.8%, sixth place) loans.

Total assets were BGN 9,704M (YE18: €9,587M) in linewith projections & efforts to reduce excess liquidity.

As at q1,2019 attracted funds comprised BGN 8,476Mcustomer deposits, BGN 115M other borrowed funds &BGN 214M hybrid debt, qualified as AT1.

2

3

4

6

7

6

8

1

5

5

29CONFIDENTIAL

Fibank with sound financial indicators. Improved profitability & coverage ratios due to conservative policy

FINANCIAL HIGHLIGHTS 2018Key ratios, % 2016 2017 2018 Q1, 2019

CET1 ratio 12.01 12.87 13.3 12.66

T1 capital ratio 15.1 15.87 16.15 15.46

Total Capital adequacy ratio 15.13 15.89 16.15 15.46

Leverage ratio 10.11 11.28 11.11 10.7

Group equity/total assets 9.43 10.62 8.83 8.93

Liquid assets ratio 28.12 24.78 25.48 24.34

Liquid assets/customer deposits 29.12 25.91 26.50 25.30

LCR 327.37 334.85 269.21 238.64

NSFR 137.61 136.43 134.33 131.55

Net loan/deposit ratio 63.76 68.08 68.52 69.19

Earnings per share (in BGN) 0.9 0.84 1.56 0.18

ROE (after tax) 10.4 10.24 19.24 9.20

ROA (after tax) 1.37 1.03 1.87 0.82

Income diversity ratio 68.68 64.17 68.25 65.54

Cost/income ratio (CIR) 41.38 50.35 46.46 61.13

Net interest margin 5.04 4.14 4.03 3.68

Operating profit/RWAs 7.63 6.30 5.71 5.60

Cost of risk (CoR) 2.66 1.37 1.59 0.72

NPL90+ ratio 17.51 17.48 12.95 12.25

Provisioning coverage ratio 14.19 10.44 11.59 10.34

N222PL90+ coverage ratio 67.82 59.74 89.48 84.36

Capital adequacy position at q1, 2019 strengthened furtherwith CET1 ratio reaching 12.7% (YE18: 13.3%) and totalcapital ratio is 15.5% (YE18: 16.15%), substantiallyexceeding the minimum regulatory requirements.

Shareholders’ equity of the Group of First Investment Bank raised throughout the first quarter by 8.93%.

Liquid assets ratio was 24.3%, while net loan/deposit ratiowas 69.2%, showing stable liquidity position & improvedefficiency.

The loan/deposit ratio amounted to 69.2% compared to69.04% the previous year. This represented actions forincreasing effectiveness, reflecting a conservative approachto credit risk management.

For the first quarter the reported results ensured return-on-assets (ROA) at 0.82% (2018: 1.87%) and return-on-equity (ROE) at 9.2% (2018: 19.24%), which reflected thebanking sector ability to generate good profitability inaccordance with the development and conditions of theenvironment.

In q1, C/I ratio was 61.13%, in line with banking sector’strend for decrease in net interest income.

1

2

3

6

1

3

4

Cap

ital

Liq

uid

ity

Pro

fita

bilit

yAsset qualit

y

2

4

55

6

30CONFIDENTIAL

Retail business: Retail loans well-balanced in terms of products & FX. Growing share of consumer loans.

STRUCTURE OF RETAIL LOANS

KEY HIGHLIGHTS & COMMENTS

RETAIL LOANS BY PRODUCT

▪ As of 31 March 2019, FirstInvestment Bank kept its thirdplace in terms of loans amongbanks in the country with amarket share of 10.63% (2018:10.69%) on an unconsolidatedbasis.

▪ An increase was registered inretail banking – up to 27.2% ofthe total portfolio (2018: 26.2%),microlending – up to 2.7% (2018:2.2%) and SMEs – up to 14.1%(2018: 13.6%, in execution of thestrategic goals for futuredevelopment and growth in these

segments.▪ In the currency structure of the

loan portfolio, the loans in BGNincreased up to BGNm 2,724thousand (2018: BGNm 2,724thousand) or 47.2% of the totalportfolio (2018: 47.2%)

1,4541,507

Retail portfolio,BGNm Retail portfolio,%

+4.1%By product By currency

1,711

51

6772 73

48

3126 25

1 2 2 2

2016 2017 2018 q1, 2019

BGN EUR Other

1,781

31CONFIDENTIAL

Retail business: Growing focus & share of Microlendingportfolio. Gross amount reached BGN 175m at q1, 2019.

GROWING SHARE OF MICROLENDING

KEY HIGHLIGHTS & COMMENTS

MICROLENDINGPORTFOLIO

▪ In q1, 2019, the microlendingportfolio grew by 24.6% to BGNm174,977 thousand compared toBGNm 140,422 thousand at the endof 2018.

▪ The market share of Fibank at theend of March amounted to 12.6% ofloans to corporates in the bankingsystem (2018, 12.8%), Fibankretained its second place (2018:second) among banks in thecountry on an unconsolidated basis.

▪ The loans of the other businesslines - to small and mediumenterprises and microlending, grew.

▪ They increased their share in thestructure of loans to companies ofthe Group to 17.7%, (2016:13.8%) and up to 3.0% (2017:2.9%) respectively, as part of thepolicy for portfolio diversificationand priority development in thesesegments.

+24.6%

51 55 55 56

39 35 35 34

10 10 10 10

2016 2017 2018 q1, 2019

Retail deposits by currency, %

BGN EUR Other

2016 2017 2018 q1, 2019

Deposits to individuals, BGNm

Current accounts Term and savings accounts

32CONFIDENTIAL

Retail business: Stable & granular retail deposit base, >80% covered by deposit guarantee scheme

RETAIL DEPOSITS BY CURRENCY

KEY HIGHLIGHTS & COMMENTS

RETAIL DEPOSITS BY PRODUCT

▪ As at 31 March 2019, First InvestmentBank stepped up on fourth place interms of deposits among banks inBulgaria (2018: fourth). The marketshare of Fibank amounted to 9.6% onan unconsolidated basis (2017: 9.6%)at the end of the period.

▪ The funds attracted from individualsamounted to BGNm 6,760 thousand atthe end of period compared to BGNm6,686 thousand at the end of 2018.They retained their structure-definingshare in the total deposits due tocustomers at 79.8% (2018: 80.5%).

▪ In the currency structure of attractedfunds from individuals, funds in BGNformed the majority at 58.1% of totaldeposits from customers (2018:55.5%), followed by those in EUR at32.1% (2018: 35%) and in othercurrencies at 9.8% (2018: 10%).

6,7606,594

6,305

100% 100% 100% 100%

+1.1%

6,686

33

Leading in Commercial Lending With Top 2 Position

Fibank’s loan book is predominantly commercial focused…Loan Portfolio by Type, Q1’19(1)

Source: Company disclosure, Bulgarian National Bank.Notes:(1) As per EC Definition (SME: <250 employees AND ≤€50mn turnover OR ≤€43mn total assets; Business: >250 employees AND >€50mn turnover OR >€43mn total assets). Breakdown as per Fibank’s internal definition would be: 10% SME, 63% Business, 2% Microlending, 25% Retail. (2) Includes loans to general governments, other financial corporations and non-financial corporations. (3) Excludes credit cards and unsecured loans.

…with a leading position in the Bulgarian sector…Corporate Loans(2) Market Share, Q1’19

…and diversified loan portfolioLoan Portfolio by Sectors of Economy(3), Q4’18

Fibank’s main competitive advantages in the commercial banking market are its:• Focus on quality of service (consistently ranked as the bank with

the best service standards in Bulgaria)• Deep understanding of the Bulgarian market• Wide distribution network

• Product offering includes term loans, investment loans,working capital loans, overdrafts, guarantees and businesscredit cards

• Active participation (almost full take-up) supportingbeneficiary companies under the programs related to the EUstructural and cohesion funds (JEREMIE initiative)

• Limited exposure to construction and real estate as Fibank did not participate in the boom for these sectors during 2007/2008

• Low portion of the book is uncollateralised (85% of total loan book is collateralised(3))

9

Loan portfolio by business lines

58.00%31.00%

11.00%

BGN EUR Other

58%

32%

10%

BGN EUR Other

2016 2017 2018 q1, 2019

Corporate deposits by product, BGNm

Current accounts Term accounts

34CONFIDENTIAL

Commercial business: Deposits from corporates grew 3.6% in q1, 2019 outpacing banking system averages.

CORPORATE DEPOSITS BY CURRENCY

KEY HIGHLIGHTS & COMMENTS

CORPORATE DEPOSITS BY PRODUCT

▪ Attracted funds from corporates andinstitutions in q1 remained at levelsclose to the previous year,amounting to BGNm 1,716 thousand(2017: 1,657 thousand). Thedecrease in volume reflected adecrease in current accounts against

a growth in fixed-term accounts.▪ Term accounts reached BGNm

532,139 thousand (2018: 451,198thousand).

▪ Current accounts amounted to BGN997,876 thousand at the end of2018 compared to BGN 897,423thousand a year earlier, forming58% of the attracted funds fromcorporates and institutions (2018:58%).

▪ By 31 March 2019, funds attractedby the second biggest non-bankingclients represented 5.2% of the totalamount due to other customers(2018: 5.2%).

2018

Corporate deposits by currency, %

Q1, 2019

1,716

1,3181,278

3.6%

1,657

110

121

136

115

2015 2016 2017 2018

3.592

4.013

4.268

4.062

2015 2016 2017 2018

5.7

5.9

6.1

6.3

5.5

6.0

5.7

6.0

2015 2016 2017 2018

Market share outgoing

Market share incoming

35CONFIDENTIAL

Payment services: Registered growth in fund transfers in both BGN & FX. Well-established market position.

FUND TRANSFERS IN FX CURRENCY

SOLID MARKET SHARES

FUND TRANSFERS IN BGN

BISERA & RINGSPAYMENT SYSTEMS

Correspondent banking (SWIFT), TARGET2 & BISERA7-EUR

(SEPA compliant)

Outgoing transfersin BGN, (000’ numbers)

Outgoing transfersin FX, (000’ numbers)

Market share offund transfers in BGN, %

-5% +0.2 ppt-15%

36

MANAGEMENT & CORPORATE GOVERNANCE

SECTION 5

Cooperation with the IFC: Successful CG & RM enhancement project during 2015

37

IFC COOPERATION MILESTONES

▪ In 2010, Fibank asked the IFC to prepare a diagnostic assessment of the Bank’s corporate governance & risk management. As a result, changes were implemented to the organizational structure and in 2012, ahead of its peers new committees to the SB were created in line with EBA latest guidelines.

▪ In 2014, at the initiative of Fibank and as a follow-up project, another independent review was performed. IFC’s recommendations were included as part of the Bank’s Restructuring Plan, committed to the European Commission.

▪ In 2015, the joint CG & RM implementation project was launched with detailed plan adopted and deliverables identified. Both Fibank & IFC teams worked together side-by-side with multiple on-site workshops delivered and off-line exchange of information. A steering committee was assigned to track implementation progress.

CORP.GOVERNANCE DELIVERABLES

RISK MANAGEMENT DELIVERABLES

✓Fibank introduced full CCO function in line with the latest Basel Committee principles on CG in banks.

✓A new independent member to the SB was elected with strong expertise and >20 years experience within the IFC.

✓A full CG Code & Disclosure policy were adopted in compliance with the latest best standards in this sphere.

✓The role of the Audit Committee was strengthened with new independent member elected and regular quarterly meetings with IA introduced.

✓Steps to strengthen the dialogue with minority shareholders were undertaken, e.g. a new Investor Club created and new initiative for regular meetings with minority shareholders.

✓Organizational changes were made, incl. full CEO, CRO & CCO functions being introduced. CFO was added as member of the MB.

✓Fibank introduced full CRO function based on the “three lines of defense” principle.

✓A new pricing policy was implemented for the setting of individual product price.

✓A new profitability tool was launched to better monitor the profitability per client, business line, portfolio.

✓RCSA methodology was enhanced to better assess operational risks at the process level, before & after controls.

✓A new rules for using KRIs in OP risk framework were adopted for improving processes for escalating & tracking tolerance limits.

✓Risk strategy was enhanced with risk appetite statement introduced and full risk map of the organization defined.

✓ALCO work was strengthen, i.e. a full fledged info pack in place for enhanced activity.

2015 Implementation Project

CONFIDENTIAL 38

Organizational structure ensures effective running of key functions & clear separation of duties.

SUPERVISORY BOARD

(Chair: Evgeni Lukanov, Deputy Chair: Maya Georgieva, Members: Georgi Mutafchiev, Radka Mineva, Jordan Skortchev, Jyrki Koskelo)

NOMINATION COMMITTEE

Chair: Georgi Mutafchiev

REMUNERATION COMMITTEE

Chair: Jordan Skortchev

RISK COMMITTEE

Chair: Evgeni Lukanov

PRESIDING COMMITTEE

Chair: Maya Georgieva

AUDIT COMMITTEE

Chair: Georgi Trenchev

INTERNAL AUDIT(Plamen Dimitrov)

MANAGING BOARD

(Chair: Nedelcho Nedelchev, Members: Sevdalina Vassileva, Chavdar Zlatev, Svetozar Popov, Jivko Todorov, Nadia Koshinska)

ALCOCREDIT

COUNCIL

RESTRUCTURING COMMITTEE

OPERATIONAL RISK COMMITTEE

BUSINESS UNITS SUPPORTING UNITS

39

CAPITALIZATION & LEVERAGE

SECTION 6

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2016 2017 2018 q1,

2019

Regulatory capital, BGN,m

CET1 Additional tier 1 capital Tier 2 capital

Own funds calculations, BGNth

YE2018 Q1, 2019

Paid up capital instruments 110.000 110,000

(-) Indirect shareholding in CET1 capital instruments

-60 -62

Premium reserves 97.000 97,000

Other reserves 506.932 606,182

Minority interests - -Accumulated other comprehensive income

23.704 21,873

Deductions from CET1 capital:

(-) Intangible assets -14.402 -7,248

Adjustments of CET1 capital 192.544 100,598

Common Equity Tier 1 capital 914,996 928,343

Additional Tier 1 capital

Hybrid debt 195,583 195,583

Tier 1 capital deductions:

Transitional adjustments of Additional Tier 1 capital

Tier 1 capital 1,110,579 1,123,926

Tier 2 capital

Perpetual debt

Adjustments of Tier 2 capital

Total own funds 1,110,579 1,123,926

40CONFIDENTIAL

Regulatory capital well in line with CRD IV (Basel III). Profit retention following GMS in June’19 to support CET1.

REGULATORY CAPITAL

OWN FUNDS CALCULATIONS

REGULATORY REQUIREMENTS

▪ Since 1 January 2014, the provisions of the CRD IV package have been in force, transposing into European law the provisions of the Basel III capital standards for banks.

▪ CET1: a) issued and paid up capital instruments (ordinary shares); b) share premium from issuance of ordinary shares; c) audited retained earnings; d) accumulated other comprehensive income, including revaluation reserves; e) other reserves; f) minority interests. Deductions includes intangible assets.

▪ AT1: instruments include hybrid debt. Deductions include regulatory adjustments relating to items that are included in the capital or the assets of the Group, but are treated differently for capital adequacy regulation.

▪ Tier 2 capital: T2 capital consists of perpetual debt and regulatory adjustments related to revaluation reserve on land & buildings.

GMS in June’18 voted to capitalize the net profit for 2017, thus

ensuring strong internal capital generation with focus on CET1

In 2016 the Bank repaid perpetual debt (T2 capital) with principal EUR 21M

1,0261,124

935

+8.2%

1,111

2.5

3.5

6

0.50.75

1

0

1

2

3

4

5

6

7

Capital

conservation

buffer 2018

Buffer for

systemic risk

2018

Countercyclical

capital buffer

2018

Total capital

buffers 2018

2017 2018 2019 2020

41CONFIDENTIAL

Fibank to maintain capital buffers in line with CRD IV. New O-SII capital buffer applicable since 2018.

CAPITAL BUFFERS COMMENTS

▪ In addition to the capital requirements, Fibank maintains capital buffers in compliance with the requirements of Ordinance No8 of the BNB on capital buffers.

▪ Capital conservation buffer, comprised of common equity tier 1 capital equal to 2,5% of the total risk exposure of the Bank

▪ Buffer for systemic risk amounting to 3.5% of the Bank’s total risk exposures in Bulgaria, which is covered by common equity tier 1 capital.

▪ Countercyclical capital buffer, applicable to credit risk exposures in the Republic of Bulgaria, the level of which is determined by the Bulgarian National Bank each quarter. During the whole of 2017 and for the first quarter of 2018, it was defined at 0%

▪ Buffer for O-SII on an individual and consolidated basis, determined as a share of the total value of the risk exposures, is in the amount of 0% for 2017 and it will gradually grow from 0.5% in 2018 to 1% in 2020.

0.0 0.00

Capital buffer for other systemically important institution

Pursuant to decision of MB of BNB / 2018

With a decision dated 2018, the BNB determined ten banks in Bulgaria as other systematically

important institutions (O-SII), among which is First Investment Bank AD.

Types of capital buffers maintained by the Bank, %

12.9

15.9

5.9

13.3

16.2 16.2

12.7

15.5 15.5

CET1 ratio Tier 1 capitalratio

Total capitaladequacy ratio

Capital adequacy indicators for 2017, 2018, q1 2019 %

2017 2018 q1, 2019

42CONFIDENTIAL

Capital indicators exceeds minimum requirements. Ratio calculations consistent with CRD IV.

CAPITAL INDICATORS

CAPITAL ADEQUACY RATIO CALCULATIONS

▪ Common Equity Tier 1 capital ratio is the Common Equity Tier 1 capital of the institution expressed as a percentage of the total risk exposure amount;

▪ Tier 1 capital ratio is the Tier 1 capital of the institution expressed as a percentage of the total risk exposure amount;

▪ Total capital ratio is the own funds of the institution expressed as a percentage of the total risk exposure amount.

▪ The total risk exposure amount is calculated as the sum of the risk-weighted assets for credit, market, and operational risk.

▪ The Group calculates the credit risk requirements for the exposures in its banking and trading portfolios based on the standardised approach. Exposures are taken into account at their book value. Off-balance sheet commitments are taken into account by applying conversion factors for the purpose of their approximation to book values. Positions are weighted for risk using different percentages depending on the class of exposure and its credit rating. A variety of techniques are used to reduce credit risk, such as collaterals and guarantees. For derivative instruments, such as forwards and options, the counterparty credit risk is estimated.

▪ The Group also calculates capital requirements for market risk for foreign exchange and commodity instruments in the trading and banking books.

▪ The Group calculates capital requirements for operational risk using the basic indicator approach. The capital requirement is equal to the average gross annual income over the last three years multiplied by a fixed percentage (15%). The respective risk weighted assets are calculated by further multiplication by 12.5.

15.1

15.9

16.2

15.5

14.4

14.6

14.8

15.0

15.2

15.4

15.6

15.8

16.0

16.2

16.4

2016 2017 2018 q1, 2019

TCA ratio, %

15.1

15.9

16.2

15.5

14.4

14.6

14.8

15

15.2

15.4

15.6

15.8

16

16.2

16.4

2016 2017 2018 q1, 2019

Tier 1 capital ratio, %

12.0

12.9

13.3

12.7

11.0

11.5

12.0

12.5

13.0

13.5

2016 2017 2018 q1, 2019

CET1 ratio, %

+0.4 ppt

43CONFIDENTIAL

Capital indicators improved due to de-leverage measures. Hybrid capital fully compliant to absorb losses.

CET1 RATIO

T1 RATIO

TCA RATIO

AT1:HYBRID CAPITAL

▪ As at YE16, Fibank had issued two hybrid instruments (bond issues) with original principal on the amount of EUR 40M and EUR 60M (ISIN: BG2100008114 & BG2100022123), which fully comply with the requirements of Regulation (EU) No 575/2013 and are included in the additional tier 1 capital.

▪ The bonds are registered, dematerialized, interest-bearing, perpetual, unsecured, freely transferable, non-convertible, deeply subordinated and without incentive to redeem.

▪ Both hybrid bond issues are admitted to trade on a regulated market at the Luxembourg Stock Exchange.

-0.6 ppt

-0.7 ppt- 0.7 ppt

+0.3 ppt+0.3 ppt

44

FUNDING & LIQUIDITY

SECTION 7

63.8

68.08

69.4169.19

2016 2017 2018 q1, 2019

Net loan/deposit ratio, in %

2016 2017 2018 q1, 2019

Customer deposits, BGNm

Retail Business

0

20

40

60

80

100

120

2016 2017 2018 q1, 2019

Structure of liabilities, %

Other Hybrid & Perpetual debt

Other borrowed funds Deposit MF

Customer deposits

45CONFIDENTIAL

Customer deposits main source of funding with 95% of liabilities. Stable growth covered state aid repayment.

DEPOSITS: MAIN FUNDING SOURCE

STABLE GROWTH TO ADDRESS AID REPAYMENT

LDR SUPPORTING LIQUIDITY

7,5847,912

8,4768,4768,233 7,974

-0.22 ppt1.6 %

8,3438,748

327335

269

239

138 136 134 132

2016 2017 2018 q1, 2019

LCR & NSFR indicators %

LCR NSFR

2016 2017 2018 q1, 2019

Liquid assets, BGNm

Debt securities and gold

Current accounts and amounts with banks

Central banks

46CONFIDENTIAL

Strong liquidity in line with market. Liquidity ratios well above minimum required levels.

LCR & NSFR WELL ABOVE MIN LEVELS

LIQUID ASSETS GREW DESPITE SA REPAYMENT

STRONG LIQUIDITY RATIOS

2,144

2,304

1,987

Minlevel

Minlevel

-3 %

2,211

28.1

24.725.5

24.34

29.1

25.9 26.525.3

2016 2017 2018 q1, 2019

Liquidity indicators, %

Liquid assets ratio

Liquid assets/customer deposits

47

APPENDIX

SECTION 8

48CONFIDENTIAL

Awards

Best Bank in Bulgaria

Bank of the year by market share, by Bank of the year association

201020112012

Bank of the year by Bank of the year association

200120112012

20012011

Mrs. Maya Georgieva Banker of the year, by financial magazine Banker

2012 Mr. Vasil Christov Banker of the year, by financial magazine Banker

Management

Best Bank in Bulgaria by the financial magazine Euromoney

2011

Quality of Service

2012 Bank of the Client by Bank of the year association

Mystery Client by Bank of the year association2012

2011STP Award, Excellent quality , Commerzbank

20102009

2013

2009

20102011

Straight-Through Processing (STP) Excellence Award, Deutsche Bank

Bank of the Customer,by the influential Bulgarian daily “Pari” (“Money”)

20022003200620082009

The best customers service of the year by International Finance Exhibition “Banks, Investments, Money”

2007

For achieving a Straight Through Processing Rate in excess of 97% for US Dollar payments sent to Citibank New York

2009

Best Retail Bank in Bulgaria by Global banking & Finance

2014

Innovation in Retail Banking Bulgaria and Best Private Bank Of The Year by Finance publishing

2014

Mr. Matthew Mateev Banker of the year

2005

20142016

49CONFIDENTIAL

Awards

Brand/ Products/ Web/Other awards

Fibank is the strongest brand in Bulgarian market by the Superbrands

201220142016

Golden Martenitsa by Made in Bulgaria union2012

Best brand in financial institutions by My love marks2012

2017

2011

OSCARD for innovative co-branded credit card Fibank-Vivatel

2008

Financial product of the year, by International Finance Exhibition “Banks, Investments, Money”

2004200520062007

Three awards for charity at the Fifth Annual Donors' Conference organized by the Bulgarian Donors' Forum

2009

VISA International Certificate

for VISA Cards Retail Sales Volume

The Bank’s corporate site won category “Business” by Bulgarian Web Awards 2009

2014

2009

2006

Most Innovative Banking Product (Credit and Debit Card) by Global banking & Finance

The best corporate blogs in Bulgaria by Nova Vizia2009

First prize for best corporate BG Site2009

2012

2014 Best maturity deposits by Handelsblattnewspaper

2014 Developing card payments and bringing innovations by MasterCard

20072008

Best public company on the Bulgarian Stock Exchange, by "Dnevnik" newspaper

2015 Card Product of the Customers by b2b magazine

2015 Best marketing team by Baawards

2016

2016

2016

Annual awards for charity and CSR“Golden heart” by “Business Lady”magazine

Investment in a digital and civilliterate society by Digital Kids

National charity campaign “Easter for everyone”.

2016 “Product of the Year”

50CONFIDENTIAL

Awards

Brand/ Products/ Web/Other awards

2017 “Product of the Year”

Debit card for children and teenagers - category “Bank cards”Consumer credit online - category “Consumer credit”Digital card - category “Mobile financial services”

Webit awards:Mobile Digital Card – “Best digital payment solution” 2017

2017

2017

2017“Best consumer banking brand”

“GBM – Best SME banking brand”

2017 “Superbrands”

2017 “Golden Heart”

2018

b2b awards 2018

Category “Socially responsible campaign”

Category “Business debut of the year”

2018“Product of the Year” – Debit card for children and teenagers - category “Bank cards”

2018

My love marks 2018

Category “Banks”

Category “My favorite employer”

Category “Innovative brands”

2017 My love marks 2017Category “Banks - My favorite brand”

European Excellence Awards 20182018

2018 EFMA Accenture DMI Awards 2018“Offering Innovation” category, silver

Forbes, business awards2018

Annual business awards of BusinessLady magazine

2018

2019

“Product of the Year” – Smart lady2019