2024 Annual Report as per FSA Regulation 5/2018

Annual Report

For the year ended at 31st of December 2024

This yearly report is prepared in accordance with FSA Regulation no.5 / 2018 for the period ended as at 31

December 2024.

Date of Report:

Name of the legal entity:

19 February 2025

UniCredit Bank S.A.

Corporate address:

Romania, Bucharest, no. 1F, Expozitiei Bd., 1st District

Corporate Contact Details:

Tel +40 21 200 2000

Website: www.unicredit.ro

Email: infocenter@unicredit.ro

Trade Register Registration Number:

J40/7706/1991

Sole Registration Code:

RO361536

Bank Register No:

RB-PJR - 40 - 011/1999

Subscribed and paid-up share capital:

RON 455,219,478.30

The regulated capital market on which the issued

bonds are traded:

Bursa de Valori Bucuresti (BVB) - Bucharest Stock Exchange

(www.bvb.ro)

Main characteristics of the bonds issued by

UniCredit Bank S.A.:

977 corporate bonds having a nominal value of RON

500,000/bond, market symbol UCB27 (ISIN

RO3WU5H09299).

https://www.bvb.ro/FinancialInstruments/Details/Financial

InstrumentsDetails.aspx?s=UCB27

960 corporate bonds having a nominal value of RON

500,000/bond, market symbol UCB28 (ISIN

ROG0M1EGXBN8).

https://www.bvb.ro/FinancialInstruments/Details/Financial

InstrumentsDetails.aspx?s=UCB28

1500 corporate bonds having a nominal value of RON

500,000/bond, market symbol UCB29 (ISIN RO22LR2CLFI6).

https://www.bvb.ro/FinancialInstruments/Details/Financial

InstrumentsDetails.aspx?s=UCB29

 
  

    
Annual Report as per FSA Regulation 5/2018 
 
Contents: 
I. The annual report in accordance with Financial Supervision Authority Regulation 5/2018 
         .......................................................................................................................................... 3 
1.      .......................................................................................................................................................................... 3 
1.1.    ...................................................................... 3 
1.2.   Assessment of the Bank's technical level .................................................................................................................... 4 
1.3.   Assessment of the technical and material supply activity (internal and external sources) .................... 4 
1.4.   Assessment of sales activity ............................................................................................................................................. 4 
1.5.   Assessment  .......................................... 7 
1.6.   Assessment of the issuer activity on the enviroment ............................................................................................. 7 
1.7.   Assessment of research and development ................................................................................................................. 7 
1.8.   Assessment of the business of the company on risk management.................................................................. 7 
1.9.   r
 .................................................................................................................................................................................................................. 11 
1.10. Integrity and Corporate Social Responsibility ......................................................................................................... 13 
        Tangible and intangible assets of the Group ........................................................................................................... 16 
        Capital Market for the bonds issued by the Bank/Group .................................................................................... 16 
        Changes which impact the Shareholders equity and Management of the Group .................................... 17 
1.      Changes in the administration of the Group ............................................................................................................................ 17 
2.       ....................................................... 18 
        Consolidated and separate financial statements .................................................................................................. 20 
1.      Assets, Liabilities and Equity statements ................................................................................................................................... 20 
2.      Income statement ..................................................................................................................................................................................... 23 
3.      Cash flow statements ............................................................................................................................................................................. 25 
        ANNEXES ................................................................................................................................................................................ 27 
1.      Changes in the Constitutive Deed 
 
3.      Related parties lists 
4.      Statements of the Supervisory Board and Management Board members regarding direct or indirect 
interests in entities 
5.      Annexes related to the members of the Supervisory Board and Management Board CVs 
6.      Annexes related to changes in Supervisory Board and Management Board composition 
7.      Compliance statement 
report -  Consolidated and Separate for the financial year ended 31 
December 2024 
 
II. Consolidated and individual financial statements as of December 31, 2024 
 
 
 
 
 
 

2024 Annual Report as per FSA Regulation 5/2018

1. Analysis of the 

1.1 presentation

UniCredit Bank S.A. , which owns multiples banks in Europe and serves

over 15 million customers worldwide, being one of the main financial institutions in Romania. The Bank provides

retail and commercial banking services in 

companies. These include: accounts opening, domestic and international payments, foreign exchange

transactions, working capital finance, medium and long term credit facilities, retail loans, bank guarantees, letter

of credits and documentary collections.

registered office is in Bucharest, 1F Expozitiei Boulevard,

District 1, Romania. The Bank was established as a Romanian commercial bank as Banca Comerciala Ion Tiriac

S.A. in 1991, which merged with HVB Bank Romania SA on 01.09.2006, resulting Banca Comerciala HVB Tiriac

S.A. As a result of the merger by absorption of the former UniCredit Romania S.A. (the absorbed bank) by Banca

Comerciala HVB Tiriac S.A. (the absorbing bank), the Bank is licensed by the National Bank of Romania to conduct

banking activities.

UniCredit Bank S.A. is a joint stock company incorporated in 1991, registered with the Trade Register Bucharest

under number J40/7706/1991, sole registration number (CUI) RO361536, registered with the Banking Register

under number RB-PJR-40-011/1999, having EUID ROONRCJ40/7706/1991

(http://www.bnro.ro/files/d/RegistreBNR/InstitCredit/ban1_raport.html ).

As of 31 December 2024

parent company, and its subsidiaries, UniCredit 



the Reporting entity note presented in the notes to the consolidated and individual financial statements

for the period ended 31 December 2024.

The businesses of the subsidiaries and the percentage stake of the Bank in its subsidiaries are presented within

the consolidated and individual financial statements, prepared in accordance with IFRS, as endorsed by EU for

the period year ended at 31 December 2024.

As at 31 December 2024 the Group carried out its activity in Romania through its Head Office located in

Bucharest and through its network, having 169 branches/Bank 166 branches (31 December 2023: Group

168 branches/Bank 166 branches) in Bucharest and in the country.

1.1.1 

For UniCredit Group, the 2024 was marked by a positive evolution of the activity, based on the Romanian

economy re-opening in the post-pandemic context and private consumption recovery. Throughout this

period, the focus was set on consolidating the market position and risk management - the solid position

on the market allowing the Group to continue to contribute to the recovery of the economy and to offer its

clients high quality products and services.

UniCredit Group Romania has obtained a consolidated net profit of RON mil 1,634 in 2024 (UniCredit

Bank: RON mil 1,457), an increase of 13.60 % (UniCredit Bank: 12.60%) compared with the same period

of the previous year generated by the increase in net interest income.

UniCredit Group Romania had registered in 2024 RON mil 3,524 consolidated operational income,

increasing by 10.15% compared with the year 2023, on the back of higher net fee and commission income

and net interest income, following the increase of commercial volumes and interest rates. The operational

expenses in amount of RON mil 1,477, registered an increase of 22.90% as compared with previous year,

mainly due to the increase of the expenses with the contribution to the resolution fund and of various

other expenses impacted by higher inflation (including salary expenses).

UniCredit Romania Group's financial indicators show a solid position: the annualized return on equity (ROE)

at 16.75% and annualized return on assets (ROA) reached 2.02% at the end of 2024. Cost-income ratio

was at 41.92%.

2024 Annual Report as per FSA Regulation 5/2018

1.1.2. Evaluation of the technical level of the Bank

Digitisation of banking services forms the backbone of UniCredit's strategy, with the ambition of being a

truly digital bank, powered by data and new technological solutions in every endeavor we undertake. The

Bank is constantly improving and developing its digital offer, capitalizing on digital opportunities to better

understand customers' behaviors and expectations, to provide them with faster and more efficient

solutions that anticipate and answer their needs.

Thus, the efforts to develop and promote the most innovative digital solutions, functionalities and

alternative channels continued in 2024. UniCredit Bank customers can choose from numerous digital

functionalities, and the Online Banking and Mobile Banking applications represent efficient, simple and

intuitive channels of remote interaction with the Bank.

Last but not least, the Ioana voice guide from UniCredit Bank Contact Center is part of the bank's digital

transformation strategy and offers private individual clients an improved and intuitive interaction

experience with the bank.

The digitalization trend also continued both within UniCredit Consumer Financing IFN SA, with an emphasis



SA.).

1.1.3. Assessment of the technical and material supply activity (internal and external sources)

The technical and material provisioning activity is not significant for the Bank and for the Group.

1.1.4. Evaluation of the sales activities

In 2024, the Bank had a remarkable evolution, it also continued to support the real economy in Romania

and to be a reliable partner to help them. We have offered our consistent support to the business

environment, through high-quality services, through financing conditions (costs and required guarantees)

adapted to the needs of customers.

Thus, UniCredit Romania Group registered a significant increase in loan volumes +15% (+13 Bank)

compared to 2023, which also contributed to a favourable evolution of the market share, for all customer

segments.

Beyond all these excellent achievements and developments, the year 2024 was marked by the conclusion

of the transaction and the beginning of the merger process with Alpha Bank Romania, a process that is

expected to be completed in the second part of 2025.

During 2024, UniCredit Bank continued to support the development of companies in Romania, in an

economic environment with many challenges, receiving recognition for its efforts and capabilities to

support clients from various industries, through the excellent results recorded.

Specifically, the bank continued:

- to offer small and medium-sized companies access to working capital financing under advantageous

conditions, benefit from a guarantee between 50 and 70% of the loan value, through Competitiveness for

SMEs (eng.: SME Competitiveness), in order to expand the current activity, consolidate the activity, or carry

out new projects, including by approaching new markets; is a guarantee instrument accessed by UniCredit

Bank from the European Union, the program being financed by the EU through PNRR and administered by

the European Investment Fund;

- to implement credit facilities with guarantees dedicated to niche sectors, such as the Cultural and

Creative Sectors, Innovation and Digitization, Education or Sustainability. These guaranteed instruments

(eng.: Cultural and Creative Sectors, Innovation and Digitalization, Skills and Education, Sustainability) are

accessed by UniCredit Bank from the European Union, the programs being financed by the EU through

InvestEU and PNRR and administered by the European Investment Fund;

- to implement credit facilities with guarantees for large companies and small municipalities, with a focus

on meeting the environmental and digitalization objectives of the PNRR; is a guaranteed instrument

accessed by UniCredit Bank from the Ministry of Investments and European Projects, the program being

financed by PNRR and administered by the European Investment Bank;

2024 Annual Report as per FSA Regulation 5/2018

In the first half of 2024, an important direction in the bank's activity was the participation in local risk

sharing schemes, provided by the Romanian state, to offer support to companies affected by the

consequences of the pandemic and the Russia-Ukraine war. In this sense, credit facilities were granted

using own funds and state guarantees to companies from numerous sectors of activity, such as production,

construction, agriculture, food industry, IT, transport and others, as follows:

- continued the IMM PLUS Program, through its six components: IMM ROMANIA PLUS, AGRO PLUS, IMM

PROD PLUS, CONSTRUCT PLUS, RURAL PLUS and INNOVATION PLUS, under the Ukrainian Temporary

Framework state aid scheme.

At the same time, UniCredit continued to be the partner bank for the implementation of the Grants for

working capital programs granted to entities in the agri-food sector, Start-up Nation and Femeia

Antrepenor managed by the Ministry of Entrepreneurship and Tourism, facilitating access to non-

refundable financial aid, essential in this period. The bank continued to be active and proactive in

supporting small and medium-sized companies and to grant numerous financings to those sectors of

activity with positive evolution, such as agriculture, the food industry, IT, the chemical industry,

pharmaceuticals, health, etc.

UniCredit continues to develop and make available its technical expertise for the investments of strategic

companies in our country. An example is the successful coordination and completion, as Principal

Mandated Arranger, Coordinator, Bookrunner, Lender, Documentation and Payment Agent and Facility

Agent, of a syndicated loan for one of the most important companies for the national energy sector. The

syndicated credit facility represents a support for the financing of the investment projects included in the

Development Plan of the National Natural Gas Transport System.

The commercial activity benefited from a positive influence following the implementation of specific

Corporate initiatives, both in the area of financial markets for FX and derivative products, as well as in the

area of transactions and payments. The initiatives along with the accelerated approval flows and events

dedicated to clients contributed to the expansion of the active client base and the diversification of the

portfolio through cross-selling.

In the area of the Retail segment, we maintained a competitive lending offer throughout 2024, which

placed us among the first options of customers, naturally reflected in increases above the market in this

line of business.

UniCredit Bank continues to be a reliable partner of its customers, individuals, offering them financial

solutions adapted to their needs for purchasing a home or optimizing the costs of a real estate purchase

loan by refinancing loans. In an economic context where the increase in the ROBOR and IRCC indicators led

to significant increases in loan rates, we observe a significant dynamic in the demand for mortgage

refinancing. Customers have been looking for solutions to convert variable rate loans to fixed rate loans so

that they can hedge against interest rate fluctuations for a period of time. At the same time, the increase

in inflation and the decrease in purchasing power, as well as the increase in interest rates on the market,

affected the budget of Romanian consumers, causing them to reduce their expenses and look for more

advantageous alternatives. UniCredit Bank understood this customer need and adjusted its financing offer

so that it has in its portfolio an extremely competitive product, easy to access, with optimized costs for the

customer and additional benefits.

Because we relied on those products built around the actual needs of customers, we had a very good

evolution of the segment of loans intended for the purchase of homes, with the total volume of mortgage

sales registering a significant increase in 2024.

We have demonstrated our commitment to the long-term support of our clients through a series of

initiatives aimed at ensuring the development of the bank. Deposits attracted from customers increased,

reflecting our efforts to ensure diversified and solid liquidity. We successfully launched Onemarkets, an

absolute differentiator in the market, both for existing customers and for attracting new customers. This

platform means a diverse range of investment strategies, giving UniCredit clients the opportunity to

leverage the extensive expertise of world leaders in asset management. At the same time, the Premium

offer launched in 2024, dedicated to the Affluent customer segment, is considered one of the best on the

market.

2024 Annual Report as per FSA Regulation 5/2018

In November 2024, we successfully completed the largest issue on the local market of unsecured corporate

bonds, worth 750 million lei, listed on the Bucharest Stock Exchange, which shows investors' confidence

in the bank's financial soundness and long-term development strategy.

One of the priorities of 2024 was the continuation of the implementation of the local ESG strategy. In

accordance with the group's strategy, we have adopted objectives for both green financing and we have

proposed to support our clients in the transition towards a more sustainable and fairer economy. We

continued to finance businesses in the area of green energy, renewable energy and energy efficiency, and

the green mortgage loan for individuals continued to be one of the requested products. Financial and

entrepreneurial education programs are part of the ESG strategy. For example, in 2024, we organized the

first ESG awareness caravan in the country, reaching 8 cities, with the participation of over 800 large

companies and SMEs

An important recognition of the contribution brought to the support of companies that make the transition

from a consumer society to a responsible society in the allocation and use of resources, is obtaining the

Sustainable Business Hero award at the BIZ Sustainability Awards Gala.

At the annual Euromoney Excellence Awards Gala in London, UniCredit was named the Best Bank for

Corporate and ESG in Romania.

Also, the Best FX Bank in Central and Eastern Europe award at Euromoney's Foreign Exchange gala is a

remarkable achievement and comes as a result of a solid strategy based on customer needs orientation

and digital transformation: through continuous investments in technology and by creating a remarkable

experience for customers, becoming a more competitive bank and thus consolidating its market position

in FX activity in CEE, from year to year. The UniCredit FX trading platform, UCTrader, is a powerful

competitive tool to trade different FX products (spot, forward and currency swap transactions with a single

click) independently, in a secure environment.

The awards for the Best Corporate Bank and the Most Visible Supporter of Culture, received for the previous

year's activity, within one of the most prestigious and objective competitions for the financial-banking

sector in Romania, Mastercard Bank of the Year, once again confirm our constant efforts and the

exceptional results obtained by UniCredit Bank.

Forbes Romania magazine marked the moment of the merger of UniCredit Bank with Alpha Bank Romania,

awarding us the "Personality of the Year" award in December 2024.

UniCredit Consumer Financing IFN S.A.

In 2024, UniCredit Consumer Financing accelerated the expansion of commercial activity, the volume of

new loans being 41% higher than in the previous year. The balance of consumer loans was at a historical

maximum, increasing by 30% compared to 2023. These achievements were the result of both the constant

attention to provide customers with competitive financing solutions, through a simplified and digitized

lending process, as well as the continuous expansion of distribution channels. In addition, the offer of

financing through loans for personal needs has been constantly adapted to the needs of clients, being

offered interest reductions in the case of collecting income in accounts opened at UniCredit Bank or

purchasing a life insurance.

Regarding credit cards, customers benefited from the advantages offered in the interest-free instalments

campaigns, carried out on a recurring basis. Efforts to simplify, digitize and improve the customer

experience were also continued through the new facility to access a 100% digital credit card, through

partner sites, in order to finance the goods sold by the partner. In order to offer dedicated products, Auchan

and Leroy Merlin co-brand credit cards were launched.

The expansion of the commercial activity took place in parallel with the careful management of the credit

risk and the constant improvement of the operational efficiency.

UniCredit Leasing Corporation IFN S.A.

In 2024 we continued to emphasize projects and structures intended for sustainability (ESG). Thus, we

continued to develop the "GoGreen" project, both by maintaining competitive offers to encourage the

purchase of electric and hybrid vehicles, but also through structures dedicated to green energy, whether

we are talking about standard products addressed to the prosumer customer segment or by financing, in

a personalized approach, some green projects of medium and even large dimensions.

2024 Annual Report as per FSA Regulation 5/2018

Digitization has been and will continue to be a priority in the list of projects we are running. We are not

talking about a simple project, but about a digital route that both we and our customers follow. Of course,

we continued to build new partnership relationships, but also to develop the existing ones, all this, always

putting the client at the center of our activity.

In 2024, UniCredit Leasing celebrated 22 years of existence, but also the 17th consecutive year in which it

is the leader of the financial leasing industry.

1.1.5. Assessment 

As of 31 December 2024, UniCredit Bank S.A. had 2,953 full-time employees, and consolidated with UniCredit

Leasing Corporation IFN S.A and UniCredit Consumer Financing IFN S.A had 3,268 full-time employees.

UniCredit Bank S.A. is permanently concerned with the training and professional development of the employees,

organizing courses both for the improvement of the technical knowledge and of the specific competences of the

banking activity.

In respect of the trade union aspect, 1,343 (45% employees of the Bank) are members of the Trade Union.

Description of the relationship reports between management and employees, and any conflictual

elements related to these reports.

The annual performance evaluation represents the completion of a continuous dialogue process that takes

place throughout the year between the manager and the employees. A correct understanding of

performance and expectations helps employees to identify the right path to reaching their maximum

potential, in the most efficient way possible: Performance Evaluation.

Meanwhile, within the organization, professional training courses have been held for development of the

managerial competences of managers, which aimed mainly at 

providing feedback, efficient management and organisation of teams, as well as activities regarding the

improvement of performance and employees productivity, motivation, their commitment and cooperation

between employees, as well as between managers and employees.

1.1.6. Assessment of the issuer activity on the enviroment

There are no (existing or future) litigations regarding the breach of environment protection legislation.

1.1.7. Assessment of research and development

The research and development activity of UniCredit Bank Group, including the know-how received from

UniCredit Spa Group, was mainly directed to improvement of efficiency and productivity of:

 Products and services offered to customers;

 Risks management systems;

 Internal control systems;

 Financial accounting systems;

 Management information system;

 IT systems;

 Human resources management programs;

 Decision making systems.

1.1.8. Assessment of the business of the company on risk management

UniCredit Bank S.A. continued to carefully analyze the actual and potential risks, reflecting the appropriate

level of provisioning and capital requirements calculation.

UniCredit Bank S.A. aimed to develop a holistic framework for the management of significant risks  credit

risk, market risk, operational risk, liquidity risk, reputational risk, business risk, strategic risks and real estate

investment risk  taking into account the correlations and interdependences between different risk types.

2024 Annual Report as per FSA Regulation 5/2018

The main risks to which the UniCredit Group is exposed are:

1.1.8.1. The foreign exchange risk

UniCredit Group is exposed to foreign exchange risk, as a consequence of its foreign exchange transactions

performed in foreign currencies, respectively of the mix of currencies in which the assets and the liabilities

are denominated.

The main foreign currencies held by UniCredit Group are EUR and USD. UniCredit Bank S.A strictly monitors

and manages the foreign currency position and monitors the exposure to the internal limits set by internal

procedures.

1.1.8.2. Interest risk

UniCredit Group faces interest rate risk that could be a result of exposure to unfavourable fluctuations on

the market. The change of the interest rates on the market directly influences the income and expenses

related to the financial assets and liabilities bearing variable interests, as well as the effective value of

those bearing fixed interest rate.

Interest rate fluctuations can be a source of profit and increase in the value of shareholders' investment,

but, at the same time they can pose a threat to the bank's revenues and capital. Variable interest rates

influence the level of income through the effect on interest income and expenses as well as on other

operating expenses and income that are sensitive to changes in rates; at the same time, they have an

effect on the value generated by the bank by causing variations in the net present value of assets, liabilities

and off-balance sheet items. In this regard, UniCredit Bank S.A has implemented risk management

processes, which keep the interest rate risk within prudential limits.

Interest rate risk management outside the trading portfolio aims to optimize, in a normal market scenario,

the risk return profile and create long-term value while reducing the negative impact on bank and

regulatory capital gains from interest rate volatility.

UniCredit Bank S.A. monitors the exposure to interest rate risk through a system of indicators and

associated limits: duration gap, basis point value, the VaR component of the interest rate outside the

trading book, the sensitivity of net interest income and the change in economic value

1.1.8.3. Credit risk

UniCredit Group is exposed to credit risk representing the risk of negative impact on revenues generated

by debtors not fulfilling the contractual obligations of loans granted on short, medium or long run.

UniCredit Group manages this risk through a set of comprehensive measures, both at transaction and

debtor, and at global level, related to:

 ;

 Continuous monitoring of the exposures in order to identify any changes that may affect negatively

the overall risk position, in order to adopt the most appropriate solutions for preventing/reducing the

potential losses;

 Computation of expected credit loss (ECL), in accordance with the legislation in force on international

financial reporting standards (IFRS9) and in conjunction with the provisions of UniCredit Group

policies;

 Capital allocation for unexpected credit risk losses, in accordance with regulatory requirements and

UniCredit Group SpA regulations.

 Regular monitoring of the credit risk profile, in order to ensure compliance with the tolerance limits

;

In respect of ensuring a prudent management for credit counterparty risk, the UniCredit Bank S.A. deals

with international banks with adequate ranking based on specific assessment criteria and strict internal

rules. There are specific limits for the transactions with other banks related to deposits and foreign currency

exchanges.

2024 Annual Report as per FSA Regulation 5/2018

1.1.8.4. Liquidity risk

The liquidity risk is the probability of UniCredit Group falling short of its due payments resulting from its

contractual relations with clients and third parties. Under normal conditions of market functioning, the

liquidity risk may materialize also through the need for UniCredit Bank S.A to pay a premium over market

rates to be able to access liquidity.

Among the main potential generators of liquidity risk, the Bank distinguishes between liquidity mismatch

risk/refinancing risk, liquidity contingency risk, market liquidity risk.

Management of liquidity risk



keep the liquidity exposure at such a level that UniCredit Bank S.A is able to honour its payment obligations

on an on-going basis, but also during 

Hence, two main operating models for the liquidity management are defined: going concern liquidity

management and the contingent liquidity management.

From a liquidity risk governance perspective, the Bank has two type of operational structures: managing

bodies acting as strategic decision taking functions and operational units acting as operative liquidity

management functions, i.e. Finance, Financial Risk, Markets-Treasury.

In accordance with the strategic goal of self-

is centred on:

 achieving a well-diversified customer funding base;

 development of strategic funding through own bonds issues and covered bonds issues;

 development of relations with various international financial institutions and foreign banks for special

financing programs.

The liquidity cost benefit allocation is an important part of the liquidity management framework. Liquidity

is a scarce resource and accordingly a proper management of costs and benefits is essential in order to

support sound and sustainable business models. Therefore, the Bank has put in place a proper mechanism

for interntransfer pricing.

Exposure to liquidity risk

Key indicators used by UniCredit Bank S.A. for measuring liquidity risk are:

 the daily short-term liquidity report, through which cash inflows and outflows mainly coming from

inter-bank transactions are monitored;

 the structural liquidity ratios/gaps, used to assess the proportion of medium-long term assets

sustained with stable funding;

 regulatory indicators: UniCredit Bank S.A has to comply with the limits imposed by National Bank of

Romania, such as the liquidity indicator calculated according to NBR Regulation no. 25/2011 and the

Liquidity coverage ratio, calculated according with to the provisions of Regulation 575/2013 and

Regulation no. 61/2015;

 other key indicators for the management of liquidity and funding needs used to assess the liquid

assets, the concentration of funding and the way in which loans to customers are sustained by

commercial funds.

UniCredit Group sets the limit and triggers levels for the main indicators used to measure the liquidity risk

and, in case a breach is observed or anticipated, specific requested actions are taken for correcting the

structure of the asset and liability mix of UniCredit Bank S.A.

Regular stress testing assessments are performed in order to evaluate the liquidity position of UniCredit

Group. In case of a deteriorating position, liquidity stress tests are one of the main metrics in order to

lso during stress situations. Liquidity stress test results are



2024 Annual Report as per FSA Regulation 5/2018

liquidity stress testing serves as an essential tool of assessment of the liquidity risk in an on-going basis,

rather than in a crisis situation only.

1.1.8.5. Operational risk

Operational risk means the risk of loss resulting either from the use pf inadequate or failed internal

processes, people and systems or from external events. Operational risk includes legal risk, but excludes

strategic and reputational risk.

Legal risk is the risk of losses as a result of fines, penalties and sanctions for which the credit institution is

liable due to failure to apply or deficiently applying legal or contractual provisions, as well as due to the

fact that contractual rights and obligations of the bank and / or counterparty are not appropriately

provided.

The operational risk management framework within UniCredit Bank S.A. is well structured and involves

relevant factors in promoting a culture favorable to communication, management and control of

operational risk. Operational risk, including all its sub categories, is managed in accordance with the

requirements of the regulatory framework that includes the identification, assessment, mitigation,

reporting and control of operational risks.

For certain subcategories of operational risk (e.g.: IT risk, fraud risk, risk associated with outsourced

activities, conduct risk or legal risk), the framework includes regulations and tools specially designed for

administration and control, as well as the permanent involvement of organizational structures with

specific responsibilities assigned in this regard.

The framework is supported by the existence of an independent function dedicated to operational risk, by

a structure of relevant committees and by a system of reporting operational risk to the Management of

the Bank.

The operational risk management system is integrated into the internal processes defined for the

management of significant risks. The main tools used for identification, assessment, monitoring,

mitigation, reporting of operational risk, are: loss data collection and analysis, risk indicators monitoring,

scenario analysis, Permanent Workgroup analyses, evaluations of processes and activities from the

perspective of operational risk, mitigation actions definition (independently or as part of the previously

mentioned tools), management and Group reporting. Moreover, products, projects and internal regulations

are analyzed before approval and implementation and feedback and advice is provided by all relevant

areas within the Bank.

1.1.8.6. Reputational Risk

Reputational risk is the current or prospective risk of earnings or liquidity or capital decrease caused by the

adverse perception of the image of the Bank on the part of customers, counterparties (also including debt-

holders, market analysts, other relevant parties, such as civil society, NGOs, media, etc.), shareholders /

investors, regulators or employees (stakeholders).

UniCredit Bank S.A has implemented a series of policies, regulations, processes, methods, specific

indicators and systems for controlling the reputational risk, in order to evaluate, monitor, reduce and report

periodically to relevant bodies.

For reputational risk cases under the scope of specific reputational risk policies/regulations or which by

their nature involve reputational risk (like weapons/defense industry, civil nuclear sector, water

infrastructure (large dams) sector, mining industry, coal sector, oil & gas sector, etc. ), the working flow

established in specific procedures is followed, which implies going through the assessment process and

decision taking by the competent approval level for reputational risk according to regulations in force,

obtaining non-binding opinion (NBO) from Group (if the case).

2024 Annual Report as per FSA Regulation 5/2018

1.1.8.7. Business Risk

Business risk is defined as adverse, unexpected changes in business volume and/or margins that are not

due to credit, market and operational risks. It can lead to serious losses in earnings, thereby diminishing

the market value of a company.

Business risk can result above all from a serious deterioration in the market environment, changes in the

competitive situation or customer behavior, but may also result from changes in the legal framework.

1.1.8.8. Real Estate Risk

Real Estate Risk is defined as potential losses in market value resulting from market fluctuations of



1.1.8.9. Strategic Risk

The risk of suffering potential losses due to decisions or radical changes in the business environment,

improper implementation of decisions, lack of responsiveness to changes in the business environment,

with negative impact on the risk profile and consequently on capital, earnings as well as the overall

direction and scope of a bank on the long term.

1.1.8.10. Risk of Excessive Leverage



contingent leverage that may require unintended corrective measures to its business plan, including

distressed selling of assets which might result in losses or in valuation adjustments to its remaining assets.

1.1.8.11. Inter-concentration Risk

Within UniCredit Bank S.A., the following approaches relating to concentration risk are applicable:

 Intra-risk concentration risk is considered in the risk management processes for each significant risk

 The risk of inter-concentration is considered both in the risk management processes for individual risks

and integrated when performing stress testing and evaluation of capital adequacy

1.1.9. 

year

The Romanian economy will increase by about 1.0%yoy in 2024, at a slower pace as compared to 1.4%

recorded in 2023, as the external demand was below expectations, while the strong private consumption

was largely satisfied from imports. The continuation of the conflict in the region, which contributed to the



industrial output and exports. Among the sectors that performed well in 9M 2024, the main contributors

to GDP growth were the retail trade, cultural activities, public administration and defense and construction.

The agriculture and manufacturing had a negative contribution to GDP. In 2024, the investment continued

to support growth, albeit at a slower pace as compared to the previous year. Consumption remained the

main contributor to GDP growth, mainly driven by the private sector, favored by the lower inflation and

interest rates.

The investments had been supported by the EU funds available under the Recovery and Resilience Fund

(RRF), locally named the National Recovery and Resilience (PNRR). Within PNRR, Romania can access up

to EUR 28.5bn during 2021-2027 period (EUR 13.6bn grants and EUR 14.9bn loans), equivalent of 8.8%

of GDP. Until present, Romania received about EUR 9.4bn (as loans and grants, incl. pre-financing ) of which

only about 30% had been spent. The amount of EUR 2.6bn to be received in 2024 was postponed for 2025.

In our baseline scenario, we downgraded our GDP growth estimate to 1% in 2024 (from 3% at the

beginning of 2024) considering the poor performance of the economy in the first 9M 2024 (+0.9%yoy,

gross data). In 2025 the economy will increase by about 1.9% owing to base effects. The private sector

will remain the growth driver, although it will have less funding in 2025, leading to a slowdown in

consumption, while investment is likely to further support growth and exports could start to recover.

Moreover, we could see a better performance in construction, real estate transactions and industry.

Romania's budget deficit widened to 7.1% of GDP in 11M 2024 and is likely to end the year above 8% of

GDP. Romanian government requested the European Commission the extension of the horizon for deficit

reduction to below 3% of GDP, to seven years from the regular four years, taking advantage of the laxer

2024 Annual Report as per FSA Regulation 5/2018

European fiscal rules for public investment. The planned adjustment for 2025 is down to a level of 7% of

GDP, followed by a gradual reduction over the next 6 years and a drop below 3% target only in 2031.

Public debt is expected to exceed 50% of GDP at the end of 2024 and further expand in the coming years.

We do not see any danger of an immediate rating downgrade for Romania, but an insufficient fiscal

adjustment in 2025 would increase the risk of future rating actions. Fitch Ratings sent a warning by



In the first half of 2024, the annual inflation rate entered on a declining trend after it spiked to 7.4%yoy in

January 2024 triggered by several tax increases (especially excise duties for fuels and tobacco). Then, it

gradually declined to 4.9%yoy in June, due to the lower food and energy prices, leaving room for the NBR

to cut the key rate at two consecutive monetary policy meetings on July 5 to 6.75% and on August 7 to

6.5%. In the second semester of 2024, the NBR stayed on hold due to the high fiscal and political

uncertainty. The core inflation also decreased to 5.6% in December 2024, but remains much stickier than

in other CEE countries due to the strong domestic demand and above the headline inflation, which ended

the year slightly up at 5.1% in December following the food prices re-acceleration.

Inflationary risks remain high and we expect inflation to miss target (2.5% +/- 1pp) in 2025 due to local



measures which are likely to be reflected in consumer prices; and 3. the removal of the legislative cap on

energy for households as of April 2025. We see the headline inflation slightly declining at 4.5% at the end

of 2025, while core inflation could drop below the 3.5% upper bound of the target range in 4Q 2025.

We expect the NBR to remain prudent due to the higher risk of outflows caused by two main factors: 1. the

political uncertainty and lack of transparency regarding the future fiscal measures, which will shape the

future inflation; and 2. the prospects of higher US interest rates and yields is likely to slow the easing cycle

in CEE countries. The NBR could cut the key rate from the current level of 6.5% in the second part of 2025,

down to about 5.5% at the end of 2025, to support the economic activity.

The main interbank money market rates continued to decline gradually to about 6.00% (Jun average),

supported by the easing of liquidity conditions. This trend continued by November, before the general

elections, the rates declining close to the 5.5% deposit facility rate. At the end of 2024, the local monetary

conditions tightened due to a sharp drop in the excess liquidity due to borrowing by the Ministry of Finance

-50bp from the

deposit facility (5.5%). We expect the ROBOR rates to stay closer to the key rate in 2025 as the market

liquidity will be lower.

The yields on government securities increased slightly to an average 6.72% in 2024, especially starting

mid-November when they exceeded 7%, due to the uncertainty surrounding the local general and

presidential elections, after they declined by about 2pp in 2023 to an 6.2% average for 10Y state securities.

The yields of the Romanian bonds could be subject to new episodes of upward pressure considering the

high global uncertainty, the upward pressure on US yields and the local political and fiscal uncertainty.

The EUR-RON exchange rate depreciated to an average 4.9746 in 2024 as compared to an average 4.9465

in 2023, while it ended the year on a depreciation trend, at an average 4.9754 in November and December.

The Romanian leu remains one of the most stable cur

which is using the exchange rate as an anti-inflationary anchor. At the end of 2024, the EURRON was under

severe upward pressure, but the NBR intervened and kept it below 5.00, the pair closing the year at 4.9765.

Depreciation pressures and the exchange rate volatility could persist at least until the spring of 2025, when

the presidential elections are being rescheduled (4 and 18 May). We expect the EURRON to move above

5.00 in 1Q25, trading within a 5.00- 

structural imbalances, respectively the high current account and fiscal deficits, are in favor of a gradual

depreciation of the national currency. Lending accelerated to 8.9%yoy as of December 2024, from 6.5%yoy

in 2023, due to both components, the RON lending at about 12.0%yoy (vs. 5.8%yoy in 2023), while the

foreign currency decelerated to 3.2%yoy from 7.9%yoy in 2023. The pace of lending to companies slowed

down to 8.5%yoy from 11%yoy in 2023, while the loans to individuals was almost 7 times faster at

2024 Annual Report as per FSA Regulation 5/2018

9.4%yoy vs. 1.4%yoy in 2023, mainly due to the consumer loans up strongly by +17.9%yoy, while the

mortgage loans rose moderately by 4.2%yoy.



halved as compared with the previous year (+7.0%yoy vs. 14.2%yoy in December 2023), while the

individuals' savings maintained their double digit growth (+12.4%yoy vs. 11.6%yoy in December 2023).

The NPL ratio at the banking sector level remained on a declining trend, respectively at 2.54% as of

September 2024 (vs. at 2.61% as of September 2023).

1.1.10 Integrity/Corporate Social Responsibility

For over 20 years, UniCredit Bank S.A. has supported some of the most important financial and

entrepreneurial education projects, community and social initiatives, as well as projects for the

development of the cultural and artistic community in Romania, in cooperation with various non-

governmental organizations and other partners.

The projects included in ESG strategy have the role to identify, finance and promote people and businesses

that have a positive social impact, in order to generate both economic benefits and broader societal

benefits. Beyond financing projects and organizations that are generally excluded from accessing banking

products and services, ESG strategy offers UniCredit Group the opportunity to share financial and business

expertise through educational programs dedicated to micro-entrepreneurs, social affairs, vulnerable or

disadvantaged groups, including young people, older people and other people at risk of social exclusion.

Employee involvement is an essential component in the implementation of ESG strategy, which supports

the building of valuable networks in the communities where the bank operates.

Educational Projects (digital, financial, entrepreneurial, sustainability education)

We believe that a sustainable business model is vital to our long-term financial health, to the economic

and social well-being of our clients, as well as for the communities in which we operate.

UniCredit Bank S.A. has consistently supported financial education and entrepreneurship programs, both

in the areas of art and culture, as well as business and education, with a focus on supporting young people,

but also entrepreneurship. In this regard, the bank has been involved in projects that have provided support

and grants for entrepreneurs within a digital entrepreneurial education platform, contributed to the

development of entrepreneurial residencies and joined numerous entrepreneurial education actions.

Among the projects supported are: RomanESTI - digital platform for entrepreneurial education & grants,

F&B Business Accelerator, Brand Minds Conference, Techsylvania International Conference in Cluj Napoca,

The Entrepreneurs Tours - series of educational conferences at national level, scale-up and mentoring

programs organized by Endeavor Romania, etc.

At local level, educational partnerships were continued, such as the Brio Challenge (Mathematics



program organized by the George Enescu Philharmonic; Start Major  Asociatia The Social Incubator;

Diploma Festival            

 Asociatia Edu Act; Future Career Days

in universities  Asociatia Alaturi de Voi; Chess in School  Gambitul Damei Iasi Sports Club; Glue Clubs 

Fundatia de Sprijin Comunitar Bacau; school support  Asociatia Bookland; support for organizing the Dare

to Learn conference, dedicated to teachers  Asociatia Dialog pentru Education; university design

scholarships, students  Asociatia Merci Charity Boutique; music scholarships - Fundatia Regala Margareta

a Romaniei; educational project in schools on posture - #staidrept  Asociatia Kineto Bebe; educational

program for seniors on cyber security - Institutul Roman pentru Imbatranire Activa; support for educational

programs in universities (such as: West University of Timisoara, Technical University Cluj-Napoca, Ovidius

University Constanta, Faculty of Economics and Business Administration, Galati, ASE Bucharest, Faculty of

Automation and Computers, etc.).

As part of its social commitment, in 2024 UniCredit ran two financial education programs with over 5,500

beneficiaries within the programs we support at local level - Start Major (5th edition) and Smart Leo (1st

edition).

Start Major is a program implemented by Asociatia The Social Incubator, fully supported by UniCredit Bank,

which aims to contribute to the formation of a generation of young people well prepared for the challenges

of professional and independent life. The program offers a comprehensive and structured approach,

2024 Annual Report as per FSA Regulation 5/2018

divided into three essential modules focused on three areas of development: financial education, career

and employability and entrepreneurship. In 2024, the program conducted financial education workshops

and entrepreneurship camps in 10 counties: Alba, Arges, Botosani, Ialomita, Neamt, Mures, Vrancea, Olt,

Prahova and Bucharest and reached 4,767 beneficiaries.

Smart Leo is a program run in partnership with the Asociatia Club Decan Lions, aiming to increase the

number of young people benefiting from basic financial literacy, raise awareness of environmental and

sustainability issues, and support young people to develop ideas and implement business projects related

to sustainability. In 2024 the program reached a total of 787 beneficiaries, being in its first edition.

In its desire to become an educational vector in sustainability, UniCredit Bank has supported the West

University of Timisoara, a leading Romanian university with over 15,000 students of over 50 nationalities,

to create a postgraduate course to address the lack of specialists in ESG reporting and sustainable

financing. The program was launched on November 14, on ESG Day, being the first of its kind in Romania,

and will be offered by the university as a general degree program.

Skills for Transition is a social program, fully funded by UniCredit. It provides strategic training to young

people, including students and those not in education, employment or training (NEETs), as well as to

companies expected to be affected by the ecological transition, helping them to develop the skills they

need to cope with the demands of a changing environment, while generating measurable social impact.

Also for companies, in order to support the process of understanding how ESG impacts the business

environment, UniCredit has supported two projects dedicated to the entrepreneurial segment. ESG Journey

is a local program and it represents a series of educational events on sustainability, reporting, adaptation

to ESG requirements. In 2024, the program consisted of a tour in 8 cities: Bucharest, Timisoara, Oradea,

Brasov, Constanta, Iasi, Craiova and Cluj, where we met over 800 companies and discussed the risks and

opportunities that sustainable transition brings.

ESG Lab is a local program dedicated to companies that expect to be impacted by the green transition. The

first edition took place in 2024, where companies made the first steps to create not only a transition plan,

but also value, focusing on the opportunities resulting from integrating sustainability into their strategies.

The UniCredit Foundation also financed two local education projects, over a 2-year period, within the "Call

for Education Romania & Bulgaria" initiative: "Profession - Towards the vision of my future" - dual system

education program of the Asociatia Hands Across Romania and the "Growth Mindset Programs for

vulnerable children and youth at the biggest educational center in Romania" project of the Asociatia Ana

si Copiii. Also with the support of the UniCredit Foundation, Asociatia Romanian Game Developers

Association has been implementing an innovative education program in schools for 2 years, in which over

8,000 students from grades 5-8 will experience an alternative method of studying history, mathematics

and English through video games every year. All the projects mentioned have completed their first year of

partnership in 2024.

Two other group-level partnerships (for 3 years) have carried out the activities provided for in the plan for

the 1st year of partnership: Junior Achievement and Teach for All. Within these partnerships, we intervene

in over 700 schools in Romania, with the effect of educational support for more than 70,000 students.

The UniCredit Foundation also launched the Edu Fund Platform in 2024, a grant program for educational

projects in the countries where UniCredit operates, with small (between 100,000-300,000 euros), medium

(between 300,000-800,000 euros) and large (over 800,000 euros) fundings. Currently, two projects from

Romania are winners. The platform is still open for applications.

We would like to mention that in most of the educational projects supported by UniCredit more than 50

employees are constantly and voluntarily involved.

Cultural Projects

We have the responsibility to offer back, to educate, to make our contribution to the development of the

society we operate in. The relationship of UniCredit Bank S.A. with the communities in which it operates

has naturally evolved as it actively engages in projects, year after year, having a long tradition in supporting

culture, from the conviction that this is a way to promote social and economic progress, but also to

encourage the dialog on innovation, social cohesion and a sense of belonging. In the cultural area, UniCredit

was and still is, one of the most active supporters, assuming a role as a long-term partner.

2024 Annual Report as per FSA Regulation 5/2018

One of the longest-running projects in which UniCredit Bank has been involved over time is the Sibiu

International Theatre Festival, which reached its 31st edition in 2024, a true cultural landmark in Romania,

but also in the entire world.

In 2024, Romania inaugurated its Pavilion located in the Giardini della Biennale, within La Biennale di

Venezia. The project, which represented Romania at the 60th edition of the most important event

dedicated to contemporary art in the world, belongs to the artist Serban Savu and is entitled Ce este munca.

UniCredit Bank has been supporting Romanian artists exhibiting in Venice for over 10 years, continuing to

contribute to supporting the creative industries and Romanian culture.

We supported the Sonnabend Exhibition at the National Museum of Art of Romania, the Ioana Nemes

Exhibition at the National Museum of Contemporary Art, the Turn Signals Exhibition in Bucharest by Faber

Timisoara, the Night of Museums, we supported the launch of the album "dupa SCULPTURA / SCULPTURA

dupa", a retrospective of Romanian sculpture from the last 50 years, etc.

We were also involved in supporting Romanian Design Week (Bucharest) and Romanian Creative Week

 

people in the creative industries.

In the film area, we supported the production of Flavors of Romania, Season 3, a Netflix production

coordinated by Charly Ottley, which presents areas of our country and represents a great opportunity to

increase the notoriety of our country in Europe and beyond. Also with UniCredit support, Les Films de

Cannes a Bucarest, one of the most anticipated film festivals in Bucharest and Timisoara, took place. A

series of festivals completed UniCredit's presence in the communities where it operates: Weekend

Sessions, SoNoRo, Garana Jazz Festival, Brezoiul Lumii Festival, JAZZx TM, Wild Experience Fest, Piata de

Arta si Design, RAD Fair, Babel FAST Targoviste, Shakespeare Festival in Craiova and others.

Social and Health Projects

UniCredit Bank S.A. contributed alongside other organizations with humanitarian and reconstruction

support in the case of the catastrophic floods in Galati, allocating substantial funds to 3 organizations that

were involved locally: Volunteer for Life, Inima de Copil Foundation, Habitat for Humanity Association.

Volunteer for Life - "Together for Galati" program represented a humanitarian aid convoy with supplies:

mattresses, beds, linen, sanitary and personal hygiene materials, as well as the participation of dozens of

volunteers who worked for over 60 days on reconstruction, supporting the population affected by the floods

in the localities of Galati county, helping people clean their homes and repair as much as possible.

Inima de Copil Foundation - support for the relocation and supply of the children's day care center in Pechea

commune, affected by the floods in Galati county.

Habitat for Humanity Romania Association  intervention for the reconstruction/repair of 400 households

among the most affected; damage assessment and support for the most vulnerable families with

accommodation in the social rental system and technical assistance.

Other projects in the social and health area: Volunteer for Life support for the construction of a sports base

in Deva, as well as a new Dental Social dental office, support for the causes of Asociatia Zi de Bine (among

which we list a few: the Medical-Educational Center for Young People and Adolescents with Addictions,

C.R.E.A.A.Ti.V., within the Voila Psychiatric Hospital in Campina, free workshops for seniors at the

Community Day Center in Bucharest, the provision of a dedicated lounge and the creation of a recreation



of a camp for children with eating disorders, the organization of an anti-bullying education camp for

children, etc.).

We also continued to support projects of the organizations Invingem Autismul; Asociatia Parintilor Copiilor

cu Afectiuni Oncologice; Organizatia Umanitara Concordia; Casa Buna; Real Help (with a professional

program for disadvantaged categories); Asociatia Merci Charity Boutique (dental treatment for children

from disadvantaged backgrounds), SOS Satele Copiilor; Hospice Casa Sperantei and many others.

UniCredit Bank also involved in the area of conferences with the purpose of health education, such as

Human is the New Normal and Bun Bine (educational conference series).

Environmental projects

2024 Annual Report as per FSA Regulation 5/2018

In 2024 we planted trees together with Asociatia Plantam Fapte Bune and with the support of over 50

UniCredit volunteers.

Sports projects

We got involved in sports projects, among which we mention a few: The Romanian Fencing Federation,

The Romanian Rowing Federation, The Romanian Polo Federation, Iasi Open WTA 250, The Color Run.

For more details on sustainability aspects, consult the sustainability report from the Administrators'

Report, included as an annex to this document (Annex 7).

2. Tangible and intangible assets of the Group

2.1. Presentation and analysis of the effects on the financial position of the Group regarding the

capital expenditures, current or in advanced, compared to those related to the same reporting

period of the previous year

Tangible and intangible assets of the UniCredit Romania Group (net amount) were in the amount of RON

mio 860 as of 31 December 2024 (including assets representing right of use from IFRS 16), compared to

RON mio 850 as of 31 December 2023, relatively stable evolution.

2.2. Description of the location and characteristics of production capacities owned by the Bank

As of 31 December 2024, UniCredit Bank S.A owned the following buildings in which it is performing its

activity through its branches: Bucuresti (branches),

- , etc..

2.3. Mention of potential problems related to property rights over the Bank's tangible assets

There are no problems related to property rights.

3. Capital Market for the bonds issued by the Bank/Group

3.1. Description of the market in Romania and other countries on where the issued bonds are

traded

In July 2017, UniCredit Bank S.A issued RON denominated medium and long term bonds listed on the

Bucharest Stock Exchange with a nominal value of 10,000 RON/bond and maturities in 2020, 2022 and

2024. The principal for the ISIN maturing in 2024 (UCB24) was repaid during the year and there was no

remaining bonds out of the three issues completedin 2017.

In December 2022, UniCredit Bank S.A issued 977 RON denominated medium and long term bonds with

a nominal value of 500,000 RON per piece and listed on the Bucharest Stock Exchange in January 2023:

 Symbol UCB27, ISIN RO3WU5H09299, number of instruments of 977, coupon rate 9.07% and a

maturity of 5 years.

In November 2023, UniCredit Bank S.A issued 960 RON denominated medium and long term bonds with

a nominal value of 500,000 RON per piece and listed on the Bucharest Stock Exchange in December 2023:

 Symbol UCB28, ISIN ROG0M1EGXBN8, number of instruments of 960, coupon rate 7.82% and a

maturity of 5 years.

In November 2024 UniCredit Bank SA issued 1500 RON denominated medium and long term bonds with

a nominal value of 500,000 RON per piece and listed on the Bucharest Stock Exchange in December 2024:

 Symbol UCB29, ISIN RO22LR2CLFI6, number of instruments of 1500, coupon rate 7.67% and a maturity

of 5 years.

Information regarding the bonds presented above can be foundon the Bucharest Stock Exchange website:

https://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=UCB24

https://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=UCB27

https://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=UCB28

https://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=UCB29

2024 Annual Report as per FSA Regulation 5/2018

3.2. Description of the way the Bank settle the obligations to the holders of those securities

The coupon payments for UCB27 and UCB 28 are made in accordance with the provisions of the Chapter

TERMS AND CONDITIONS OF THE NOTES, paragraph 8 Payments in the 2022 BASE PROSPECTUS published

on UniC website:

https://www.unicredit.ro/content/dam/cee2020-pws-

ro/DocumentePDF/InstitutionalPublicatii/Base%20Prospectus%20(EN).pdf

The 2022 BASE PROSPECTUS was supplmeneted in 2023. The 2023 Supplement is published on UniCredit



https://www.unicredit.ro/content/dam/cee2020-pws-ro/DocumentePDF/InstitutionalPublicatii/The-First-

Supplement-to-the-Euro-Medium-Term-Note-Programme.pdf

The coupon payments for UCB29 TERMS AND

CONDITIONS OF THE NOTES  9 Payments in the 2024 BASE PROSPECTUS published on

 website:

https://www.unicredit.ro/content/dam/cee2020-pws-

ro/DocumentePDF/InstitutionalPublicatii/UNICREDIT-BANK-Base-Prospectus.pdf

UniCredit Bank S.A. signed in January 2022 Service Contracts with the Central Depository and has the status

of paying agent for its own issued bonds.

3.3. Description of the 

The Supervisory Board proposes to the General Meeting of Shareholders the distribution of the profit

related to the year 2024 in the amount of RON 1,456,897,308.39, calculated and presented in the

Consolidated and Individual Financial Statements prepared in accordance with the International Financial

Reporting Standards applicable to credit institutions based on the Order issued by the Governor of the

National Bank of Romania no. 27/2010 with subsequent amendments and additions, as follows:

a. the establishment of a reserve in amount of RON 23,522,599.00 related to the profit reinvested in the

2024 financial year, for which the Bank applied the profit tax exemption, in accordance with art. 22 of Law

no. 227/2015 regarding the Fiscal Code;

b. the distribution of dividends in the amount of RON 728,448,654.20, proportional to each shareholder's

share in the Bank's paid-up capital;

c. the reinvestment of the remaining net profit, in amount of RON 704,926,055.19, in order to increase the

capital base and the solvency rate of the Bank.

4. Changes which impact the Shareholders equity and Management of the Bank

4.1. Changes in the administration of the Bank

On 17

of April 2008, General Meeting of Shareholders adopted the dual tier governance system, through which

the management of UniCredit Bank SA is ensured by the Management Board, respectively by Supervisory Board,

Management Board members not being able to be in the same time members of the Supervisory Board.

Presentation of the Supervisory Board members as of 31 December 2024

1. Pasquale Giamboi - Chairman of Supervisory Board;

2. Zeynep Nazan Somer Ozelgin - Member of Supervisory Board;

3. Huseyin Faik Acikalin - Member of Supervisory Board;

4. Riccardo Roscini - Vice-Chairman of Supervisory Board;

5. Graziana Mazzone - Member of Supervisory Board.

Presentation of the Management Board members as of 31 December 2024

1. Alina Mihaela Lupu - Executive President (CEO), President of Management Board;

2. Feza Tan - First Executive Vice-President, Member of Management Board;

2024 Annual Report as per FSA Regulation 5/2018

3. Raluca-Mihaela Popescu-Goglea - Executive Vice-president, Member of Management Board;

4. Dimitar Todorov - Executive Vice-president, Member of Management Board;

During 2024, there have been the following changes in the governing bodies of UniCredit Bank regarding:

Changes in Supervisory Board composition between 01.01.2024-31.12.2024:

 Acknowledgement of termination of the mandate of Mrs. Teodora Aleksandrova Petkova as

member of Supervisory Board, starting with 31 October 2024 - in OGSM meeting held on 23.12.2024

 Approval by the OGSM held on 04.11.2024 of appointment of new 6 members within the

Supervisory Board (pending for NBR approval)

Changes in Management Board composition between 01.01.2024-31.12.2024:

 SB Decision from 29.07.2024: termination of the mandate of Mr. Cengiz Arslan de as member of

Management Board, Executive Vice-president, starting with 01.09.2024

 SB Decision from 26.09.2024: appointment of Mr. Tsvetelin Petyov Minchev as member of

Management Board, Executive Vice-president, COO pending for NBR approval)

 SB Decisions from 26.09.2024 and from 29.10.2024: termination of the mandates as members of

Management Board, Executive Vice-presidents of Mrs. Antoaneta Curteanu si of Mr. Andrei-Florin Bratu,

starting with 04.11.2024;

            

Management Board, Executive Vice-president, Retail Coordonator (pending for NBR approval)

 SB Decision from 26.09.2024: appointment of Mrs. Elena Florea as member of Management Board,

Executive Vice-president, Risks Management Coordinator (pending for NBR approval)

There are no           

Supervisory Board or the Management Board of UniCredit Bank.



As of December 31 2024, the share capital of UniCredit Bank S.A. is of RON 455,219,478.30, consisting of

48,948,331 ordinary shares (same number as for 31 December 2023), with a face value of RON 9.30 /share and

a share premium of RON 75.93 /share. The total value of the share premium is RON thousands 621,680.

As of December 31, 2024, UniCredit Bank SpA, the main shareholder of UniCredit Bank S.A. owns 88.7298% of

UniCredit Bank S.A. social capital .

As of December 31, 2024, the Shareholders structure was as follows:

Shareholder



Value (RON)

UniCredit S.p.A.

43,431,736

403,915,144.80

88.7298%

Alpha International Holdings Single Member S.A.

4,845,885

45,066,730. 50

9.9000%

Romanian Individuals

622,926

5,793,211.80

1.2726%

Romanian Legal Entities

21,606

200,935.80

0.0441%

Foreign Individuals

18,838

175,193.40

0.0385%

Other Foreign Legal Entities

7,340

68,262.00

0.0150%

TOTAL

48,948,331

455,219,478.30

100.0000%

2024 Annual Report as per FSA Regulation 5/2018



31.12.2024

31.12.2023

UniCredit SpA

88.7298

98.6298

Alpha International Holdings Single Member S.A.

9.9000

Minority shareholders (individuals and legal entities)

1.3702

Total

100.00

On November 4th, 2024, after receiving all regulatory approvals, UniCredit S.p.A acquired 90.1% of the share

capital of local Alpha Bank Romania S.A. from majority shareholder Alpha International Holdings Single Member

S.A. in exchange of cash payment and share transfer of minority stake of 9.9% in UniCredit Bank S.A.

The structure of the capital is as follows:

RON thousands

31.12.2024

31.12.2023

Statutory social capital

455,219

IAS 29  Hyperinflation effect

722,529

Social capital as per IFRS

1,177,748

2024 Annual Report as per FSA Regulation 5/2018

5. Consolidated and separate financial statements

5.1. Assets, Liabilities and Equity statements

The structure and the evolution of the main categories of assets, liabilities and equity of the UniCredit Group are presented below:

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2022

31.12.2024

31.12.2023

31.12.2022

Assets:

Cash and cash equivalents

19,510,086

20,106,053

16,456,169

19,509,849

20,105,745

16,455,940

Financial assets at fair value through profit or loss

126,219

97,712

214,714

126,219

97,712

214,714

Derivatives assets designated as hedging instruments

165,600

242,560

310,229

165,600

242,560

310,229

Loans and advances to customers at amortized cost

41,495,113

36,196,421

32,849,251

38,362,383

33,892,452

31,054,544

Net lease receivables

5,089,369

4,305,696

3,788,693

2,243

7,300

11,342

Loans and advances to banks at amortized cost

185,383

142,096

399,455

185,383

142,096

399,455

Other financial assets at amortized cost

558,523

558,257

319,475

487,910

497,953

250,620

Financial assets at fair value through other comprehensive income

2,073,384

2,026,525

1,922,518

2,061,099

2,016,760

1,920,172

Debt instruments at amortized cost

10,597,046

9,647,214

8,856,966

10,597,046

9,647,214

8,856,966

Investment in subsidiaries

143,116

Property and equipment

156,574

171,348

179,752

155,316

169,000

176,415

Right of use assets

208,374

254,151

199,230

201,750

242,889

181,355

Intangible assets

495,127

424,876

362,782

472,707

406,108

344,366

Current tax assets

6,754

22,059

8,109

Deferred tax assets

50,866

57,961

163,726

41,810

49,686

73,999

Other assets

311,932

419,432

175,767

63,600

51,504

50,866

Total assets

81,030,350

74,672,361

66,206,836

72,576,031

67,712,095

60,444,099

2024 Annual Report as per FSA Regulation 5/2018

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2022

31.12.2024

31.12.2023

31.12.2022

Equity:

Share capital

1,177,748

Share premium

621,680

Cash flow hedging reserve

(6,119)

(6,506)

(7,501)

(6,119)

(6,506)

(7,501)

Reserve on financial assets at fair value through other

comprehensive income

(17,745)

(13,185)

(108,424)

(26,093)

(19,416)

(108,424)

Revaluation reserve on property and equipment

24,294

22,500

17,177

24,294

22,500

17,177

Other reserves

473,230

432,942

399,973

473,230

432,942

399,973

Retained earnings

7,291,155

6,369,744

4,981,500

6,404,695

5,633,921

4,374,995

Total equity for parent company

9,564,243

8,604,923

7,082,153

8,669,435

7,862,869

6,475,648

Non-controlling interest

192,392

175,619

160,422

Total equity

9,756,635

8,780,542

7,242,575

8,669,435

7,862,869

6,475,648

Total liabilities and equity

81,030,350

74,672,361

66,206,836

72,576,031

67,712,095

60,444,099

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2022

31.12.2024

31.12.2023

31.12.2022

Liabilities:

Financial liabilities at fair value through profit or loss

50,884

120,253

176,965

50,884

120,253

176,966

Derivatives liabilities designated as hedging instruments

158,242

202,404

262,514

158,242

202,404

262,514

Deposits from banks

1,782,107

1,240,982

1,050,418

1,782,107

1,240,982

1,050,418

Loans from banks

8,534,591

6,406,673

5,653,932

732,566

584,966

849,329

Deposits from customers

52,106,032

50,955,312

45,310,940

52,740,216

51,002,566

45,404,198

Debt securities issued

5,760,287

4,002,296

3,502,834

5,760,287

4,002,296

3,502,834

Other financial liabilities at amortized cost

1,251,140

1,185,038

1,307,973

1,137,670

1,149,294

1,239,449

Subordinated liabilities

841,862

952,073

945,604

841,862

842,632

836,761

Lease liabilities

205,074

255,803

198,403

200,208

250,414

193,362

Current tax liabilities

51,911

18,736

24,969

50,994

18,546

24,969

Provisions

190,382

206,162

250,064

212,720

226,903

250,737

Other non-financial liabilities

341,203

346,087

279,645

238,840

207,970

176,914

Total liabilities

71,273,715

65,891,819

58,964,261

63,906,596

59,849,226

53,968,451

2024 Annual Report as per FSA Regulation 5/2018

At the end of 2024, total assets of the Group were RON thousands 81,030,350, compared to RON thousands

74,672,361 as of 31 December 2023 (increase by 8.51%).

The main significant changes (increase/decrease) within the UniCredit Group assets were for the following

categories:

 Loans and advances to customers: increase by RON thousands 5,298,692 (+14.64%) from RON thousands

36,196,421 in December 2023 to RON thousands 41,495,113 in December 2024.

 Financial assets at fair value through other comprehensive income: increase by RON thousands 46,859

(2.31%) from RON thousands 2,026,525 in December 2023 to RON thousands 2,073,384 in December 2024.

 Cash and cash equivalents: decrease by RON thousands (595,967) (-2.96%) from RON thousands 20,106,053

in December 2023 to RON thousands 19,510,086 in December 2024.

 Net lease receivables: increase by RON thousands 783,673 (+18.20%) from RON thousands 4,305,696 in

December 2023 to RON thousands 5,089,369 in December 2024.

 Financial assets at fair value through profit or loss: increase by RON thousands 28,507 (+29.17%) from RON

thousands 97,712 in December 2023 to RON thousands 126,219 in December 2024.

The main significant changes (increase/decrease) of Group liabilities/equity positions were for the following

categories:

 Derivatives liabilities designated as hedging instruments: decrease by RON thousands (44,162) (-21.82%)

from RON thousands 202,404 as at 31 December 2023 to RON thousands 158,242 as at 31 December 2024.

 Deposits from banks: increase by RON thousands 541,125 (+43.60%) from RON thousands 1,240,982 at 31

December 2023 to RON thousands 1,782,107 at 31 December 2024.

 Loans from banks: increase by RON thousands 2,127,918 (+33.21%) from RON thousands 6,406,673 at 31

December 2023 to RON thousands 8,534,591 at 31 December 2024.

 Deposits from customers: increase by RON thousands 1,150,720 (+2.26%) from RON thousands 50,955,312

at 31 December 2023 to RON thousands 52,106,032 at 31 December 2024.

 Debt securities issued: increase by RON thousands 1,757,991 (+43.92%) from RON thousands 4,002,296 in 31

December 2023 to RON thousands 5,760,287 at 31 December 2024.

 Other financial liabilities at amortized cost: increase by RON thousands 66,102 (+5.58%) from 1,185,038 at

31 December 2023 to RON thousands 1,251,140 at 31 December 2024.

 Lease liabilities: decrease by RON thousands (50,729) (-19,83%) from RON thousands 255,803 (31 December

2023) to RON thousands 205,074 (31 December 2024).

 Provisions: decrease by RON thousands (15,780) (-7,65%) from RON thousands 206,162 at 31 December 2023

to RON thousands 190,382 at 31 December 2024.

2024 Annual Report as per FSA Regulation 5/2018

5.2. Income statement

Income statement for UniCredit Group and UniCredit Bank S.A. is presented below:

Group

Bank

In RON thousands

2024

2023

2022

2024

2023

2022

Interest income using EIR

4,303,032

3,720,308

2,428,686

3,933,561

3,399,485

2,158,078

Other interest income

319,175

246,577

142,630

Interest expense

(2,237,543)

(1,859,985)

(897,030)

(1,863,639)

(1,584,043)

(772,856)

Net interest income

2,384,664

2,106,900

1,674,286

2,069,930

1,815,457

1,385,232

Fee and commission income

957,929

827,876

680,157

864,639

749,236

621,832

Fee and commission expense

(433,048)

(334,880)

(252,427)

(399,153)

(316,951)

(237,423)

Net fee and commission income

524,881

492,996

427,730

465,486

432,285

384,409

Net income from instruments at fair value through profit and

loss

500,484

424,639

347,676

500,484

424,701

347,795

Net gain/(loss) from foreign exchange

(12,767)

85,044

46,155

(30,435)

65,217

23,494

Fair value adjustments in hedge accounting

(3,410)

(7,616)

10,799

(3,410)

(7,616)

10,799

Net gain/(loss) from derecognition of financial assets

measured at amortised cost

23,088

93,229

20,596

3,958

83,005

8,759

Net gain/(loss) from derecognition of financial assets

measured at FVTOCI

(788)

(11,979)

(788)

(11,979)

Dividend income

4,949

3,868

3,196

4,949

3,868

33,184

Other operating income

103,302

12,540

8,780

76,075

12,780

12,577

Operating income

3,524,403

3,199,621

2,539,218

3,086,249

2,817,718

2,206,249

Personnel expenses

(617,624)

(566,521)

(525,288)

(549,339)

(500,259)

(463,572)

Depreciation and impairment of tangible assets

(103,057)

(105,279)

(109,209)

(95,584)

(96,996)

(100,048)

Amortization and impairment of intangible assets

(64,250)

(63,272)

(60,946)

(59,002)

(56,700)

(55,166)

Other administrative costs

(647,394)

(434,778)

(398,782)

(605,778)

(400,423)

(370,212)

Other operating costs

(45,056)

(32,262)

(17,355)

(25,683)

(21,549)

(11,072)

2024 Annual Report as per FSA Regulation 5/2018

Group

Bank

In RON thousands

2024

2023

2022

2024

2023

2022

Operating expenses

(1,477,381)

(1,202,112)

(1,111,580)

(1,335,386)

(1,075,927)

(1,000,070)

Net impairment (losses)/ reversals on

financial instruments

(82,046)

(293,577)

(276,609)

1,767

(212,789)

(187,669)

Losses on modification of financial assets

207

Net operating income

1,964,979

1,703,997

1,151,236

1,752,633

1,529,067

1,018,717

Net impairment losses on non-financial

assets

(1,112)

(449)

9,842

(1,112)

(449)

9,842

Net provision gains/ (losses)

(12,745)

(967)

4,108

(13,547)

(99)

(2,163)

Profit before tax

1,951,122

1,702,581

1,165,186

1,737,974

1,528,519

1,026,396

Income tax expense

(317,124)

(264,198)

(167,287)

(281,077)

(234,643)

(147,156)

Net profit for the year

1,633,998

1,438,383

997,899

1,456,897

1,293,876

879,240

Attributable to:

Equity holders of the parent company

1,612,348

1,423,187

984,455

Non-controlling interests

21,650

15,196

13,444

Net profit for the year

1,633,998

1,438,383

997,899

1,456,897

1,293,876

879,240

2024 Annual Report as per FSA Regulation 5/2018

5.3. Cash flow statements

The structure of cash flows is summarized by the statement of cash flows:

Group

Bank

In RON thousands

2024

2023

2022

2024

2023

2022

Operating activities

Profit / (Loss) before taxation

1,951,122

1,702,581

1,165,186

1,737,974

1,528,519

1,026,396

Adjustments for non-cash items:

Depreciation and amortization of property, plant and equipment

and of intangible assets

167,307

168,551

169,822

154,586

153,696

155,212

Net impairment losses on financial instruments

218,523

407,734

312,009

136,006

301,957

222,485

Fair value (gain)/loss on derivatives and other financial assets

held for trading

(67,951)

40,765

47,281

(67,951)

40,765

47,281

Other items for which the cash effects are investing or financing

(7,341)

45,948

53,013

(6,115)

16,719

993

Accrued interest and unwinding effect

(94,316)

100,116

45,926

(107,409)

78,224

44,914

Impairment of assets and provisions

42,453

(17,053)

88,976

2,298

(18,716)

21,531

FX impact

50,413

(46,283)

32,250

45,101

(56,691)

32,348

Other noncash items

20,077

45,961

(70,168)

29,715

11,861

(29,511)

Operating profit before changes in operating assets and

liabilities

2,280,287

2,448,320

1,844,295

1,924,205

2,056,334

1,521,649

Change in operating assets:

Decrease/(Increase) in financial assets at fair value through profit

and loss

(20,749)

52,115

102,023

(20,749)

52,115

102,023

Acquisition of debt instruments at amortized cost

(882,966)

(740,261)

(861,100)

(882,966)

(740,261)

(861,100)

Decrease/(Increase) in loans and advances to banks

(43,744)

255,982

95,485

(43,744)

255,982

95,001

Decrease/(Increase) in loans and advances to customers

(5,529,301)

(3,689,868)

(3,762,234)

(4,576,152)

(3,073,840)

(3,855,224)

Decrease/(Increase) in lease investments

(837,875)

(548,075)

(183,508)

(2,243)

(7,260)

(11,305)

Decrease/(Increase) in other assets

166,192

(474,512)

(73,222)

2,733

(250,562)

(41,669)

Change in operating liabilities:

Increase/(Decrease) in deposits from banks

543,019

187,563

382,540

543,019

187,563

382,540

Increase/(Decrease) in deposits from customers

1,367,911

5,299,988

5,224,225

1,636,855

5,467,316

5,161,250

Increase/(Decrease) in other liabilities

19,946

(81,045)

815,331

(5,290)

(88,664)

810,943

Income tax paid

(259,325)

(256,056)

(203,123)

(239,514)

(233,293)

(157,269)

Net cash from/ (used in) operating activities

(3,196,605)

2,454,151

3,380,712

(1,663,846)

3,625,430

3,146,839

Investing activities

Proceeds on disposal of financial assets at fair value through

other comprehensive income

530,322

359,980

74.146

530,322

359,980

74.146

Acquisition of financial assets at fair value through other

comprehensive income

(573,453)

(360,786)

(428.738)

(573,453)

(360,786)

(428.738)

2024 Annual Report as per FSA Regulation 5/2018

Group

Bank

In RON thousands

2024

2023

2022

2024

2023

2022

Proceeds on disposal of property, plant and equipment

1,243

246

1,243

171

Acquisition of property, plant and equipment and intangible

assets

(146,095)

(139,653)

(140,026)

(136,124)

(132,617)

(135,356)

Dividends received

5,276

4,305

3,463

5,276

4,305

33,451

Net cash used in investing activities

(183,950)

(134,911)

(490,909)

(173,979)

(127,875)

(456,326)

Financing activities

Dividends paid

(641,610)

(704)

(231,745)

(641,610)

(704)

(231,745)

Proceeds from bonds issued

1,944,054

480,000

2,751,896

1,944,054

480,000

2,751,896

Payments of bonds issued

(183,500)

(1,768,432)

(183,500)

(280,500)

Repayments of loans from banks

(3,322,287)

(3,349,718)

(1,347,756)

(205,845)

(264,648)

(218,175)

Drawdowns from loans from banks

5,119,179

4,265,962

2,914,975

348,121

492,947

Repayments of subordinated liabilities

(109,430)

Repayment of the lease liabilities

(80,708)

(82,492)

(73,630)

(78,181)

(79,988)

(70,135)

Net cash from/ (used in) financing activities

2,725,698

1,313,048

2,245,308

1,183,039

134,660

2,444,288

Net increase/(decrease) in cash and cash equivalents

(654,857)

3,632,288

5,135,111

(654,786)

3,632,215

5,134,801

Cash and cash equivalents at 1 January - gross value

20,112,188

16,459,052

11,270,506

20,111,879

16,458,822

11,270,425

Effect of foreign exchange rate changes

58,104

20,848

53,435

58,104

20,842

53,596

Cash and cash equivalents at 31 December - gross value

19,515,435

20,112,188

16,459,052

19,515,197

20,111,879

16,458,822

Impairment allowance

(5,349)

(6,135)

(2,883)

(5,348)

(6,134)

(2,882)

Cash and cash equivalents at 31 December -net value

19,510,086

20,106,053

16,456,169

19,509,849

20,105,745

16,455,940

Cash flow from operating activities include:

Interest received

4,459,984

3,809,279

2,420,080

3,805,792

3,300,754

2,052,992

Interest paid

(1,960,124)

(1,523,852)

(706,784)

(1,640,035)

(1,276,291)

(619,477)

2024 Annual Report as per FSA Regulation 5/2018

6. ANNEXES

There are attached to the present report the following documents:

6.1. Changes in the Constitutive Deed

In the meeting dated 04.11.2024, the Extraordinary General Meeting of Shareholders of UniCredit Bank S.A. decided

to amend the Articles of Association, as reflected in the Resolution attached to this report.

6.2. 

The list of subsidiaries and of entities controlled by the Bank as of 31 December 2024 is presented in the Annex 2.

6.3. Related  lists

The list of related parties is presented in the Annex 3.

6.4. Statements of the Supervisory Board and Management Board members regarding direct or indirect

interests in entities

The statements of the Supervisory Board and Management Board members regarding direct or indirect interests in

entities are presented in the Annex 4.

6.5. Annexes related to the members of the Supervisory Board and Management Board CVs

The CVs of the members of the Supervisory Board and Management Board are presented in the Annex 5.

6.6. Annexes related to changes in Supervisory Board and Management Board composition

The changes related to the Supervisory Board and Management Board composition are presented in the Annex 6.

6.7. Compliance statement

Statement of the Management Board Members that have assumed the responsibility for the preparation of the

Consolidated Financial Statements as of 31 December 2024.

7. - Consolidated and Separate for the financial year ended 31 December

2024

- Consolidated and Separate for the financial year ended 31 December 2024 was

audited by the external independent auditor KPMG Audit SRL.

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

STATEMENT

according to the provisions of article 63 of Law no. 24/2017 regarding

issuers of financial instruments and market operations

Legal Entity: UNICREDIT BANK S.A.

County: 41 - Directia Generala de Administrare Mari Contribuabili, MUN.BUCURESTI

Address: Bucharest, district 1, Expozitiei 1F, tel. 021/200.20.00

Trade Register Number: J40/7706/1991

Ownership type: 34  Stock company

Main activity (NACE Code): 6419  Other monetary intermediation

Fiscal Identification Code: RO 361536.

The persons responsible for the management of UniCredit Bank S.A. Group assume responsibility for the production

.

The Consolidated and Separate Financial Statements at 31st December 2024 have been drawn in accordance

with provisions of Order 27/2010 issued by National Bank of Romania for approval of accounting regulations in

accordance with International Financial Reporting Standards as endorsed by European Union, with subsequent

amendments, and we confirm, to the best of our knowledge, that:

a) the accounting policies applied for the preparation of the annual consolidated and separate financial statements

are in accordance with the applicable accounting regulations;

b) the annual consolidated and separate financial statements give a true and fair view of the the assets, liabilities,

financial position and profit or loss of UNICREDIT BANK S.A. and of the subsidiaries included in the financial

statements consolidation process;

c) The Annual report for the period ended as at 31 December 2024 prepared in accordance with FSA Regulation

no.5/2018 includes a correct analysis of the development and performance of UNICREDIT BANK S.A. and of the

subsidiaries included in the process of consolidating the financial statements, as well as a description of the main

risks and uncertainties specific to the activity carried out.

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

UniCredit Bank S.A.



Consolidated and Separate

for the financial year ended 31 December 2024

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

Content

1. General presentation ....................................................................................................................... 3

2. 2024 Activity Overview .................................................................................................................... 3

3. Consolidated and separate financial statements of UniCredit Bank S.A. as at 31 December 2024 .............. 7

4. Conclusion ................................................................................................................................... 16

5. Equity accounts and profit distribution ............................................................................................. 16

6. Forecast related to the future macroeconomic environment ............................................................... 17

7. Research and development activity ................................................................................................. 19

8. Risk Management ......................................................................................................................... 19

9. Corporate Governance.................................................................................................................... 26

10. Communication calendar for 2025 .................................................................................................. 33

11. Members of the Management Board of the Bank, UCFIN and UCLC during 2024 .................................... 33

12. Sustainability statement ................................................................................................................ 35



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

ESRS 2 - GENERAL INFORMATION ................................................................................................................................................... 35

Basis for preparation ........................................................................................................................................................................ 35

Governance ..................................................................................................................................................................................... 37

Strategy ............................................................................................................................................................................................ 48

Impact, risk and opportunity management ....................................................................................................................................... 60

ENVIRONMENTAL INFORMATION ..................................................................................................................................................... 84

COMMUNICATION OF INFORMATION UNDER ARTICLE 8 OF REGULATION (EU) 2020/852 (EU TAXONOMY REGULATION) ............................... 84

E1 - CLIMATE CHANGE ......................................................................................................................................................................... 133

Strategies ....................................................................................................................................................................................... 133

Impact risk and opportunity management ...................................................................................................................................... 139

Metrics and targets ........................................................................................................................................................................ 156

E3 - WATER AND MARINE RESOURCES .................................................................................................................................................. 162

Impact, risk and opportunity management ..................................................................................................................................... 162

Metrics and targets ........................................................................................................................................................................ 163

E4 - BIODIVERSITY AND ECOSYSTEMS ................................................................................................................................................... 163

Strategy .......................................................................................................................................................................................... 163

Impact, risk and opportunity management ..................................................................................................................................... 164

E5 - RESOURCE USE AND CIRCULAR ECONOMY ..................................................................................................................................... 166

Impact, risk and opportunity management ..................................................................................................................................... 166

SOCIAL INFORMATION ..................................................................................................................................................................... 168

S1 - OWN LABOUR FORCE .................................................................................................................................................................... 168

Impact, risk and opportunity management ..................................................................................................................................... 168

Metrics and targets ........................................................................................................................................................................ 176

S2 - VALUE CHAIN WORKERS ................................................................................................................................................................ 183

Impact, risk and opportunity management ..................................................................................................................................... 183

Metrics and targets ........................................................................................................................................................................ 184

S3 - AFFECTED COMMUNITIES .............................................................................................................................................................. 184

Impact, risk and opportunity management ..................................................................................................................................... 184

Metrics and targets ........................................................................................................................................................................ 191

S4 -CONSUMERS AND END-USERS ........................................................................................................................................................ 191

Impact, risk and opportunity management ..................................................................................................................................... 191

Matrics and targets ........................................................................................................................................................................ 198

GOVERNANCE INFORMATION ......................................................................................................................................................... 198

G1 - CONDUCTING BUSINESS ............................................................................................................................................................... 198

Impact, risk and opportunity management ..................................................................................................................................... 198

Metrics and targets ........................................................................................................................................................................ 202



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

1. General presentation

     

           

      . Further details are available in the Reporting

entity note presented in the Notes to the consolidated and individual financial statements for the period

ended 31 December 2024.

UniCredi       its current registered office is in Bucharest, 1F Expozitiei

Boulevard, District 1, Romania. The Bank was established as a Romanian commercial bank, Banca

Comerciala Ion Tiriac S.A. in 1991, which merged with HVB Bank Romania SA on 01.09.2006, resulting

Banca Comerciala HVB Tiriac S.A. As a result of the merger by absorption of the former UniCredit

Romania S.A. (the absorbed bank) by Banca Comerciala HVB Tiriac S.A. (the absorbing bank), the Bank is

licensed by the National Bank of Romania to conduct banking activities.

The Bank             

currency for private individuals and companies. These are including: current accounts opening, domestic

and international payments, foreign exchange transactions, working capital finance, medium and long

term credit facilities, retail loans, bank guarantees, letter of credits and documentary collections.

UniCredit Bank S.A. is directly controlled by UniCredit SpA (Italy), with registered office in Milano, Piazza

Gae Aulenti, 3.

The Group is exercising direct and indirect control over the following subsidiaries:

 UniCredit Consumer 1F Expozitiei

Boulevard, 6th floor, District 1, Bucharest, Romania, provides consumer finance loans to individuals.

The Bank has a shareholding of 50.1% in UCFIN since January 2013.

 UniCredit Leasing Corporation IFN ("UCLC"), having its headquarters in 1F Expozitiei Boulevard, 1st,

7th and 8th floor, District 1, Bucharest, Romania, provides financial leasing services to corporate

clients and individuals. UCLC, the former associate, has become the Bank's subsidiary since April

2014 when the Bank obtained indirect control of 99.95% (direct control: 99.90%). The Bank's

indirect controlling interest as of 31 December 2020 is 99.98% (direct control: 99.96%), as a result

of the merger of UniCredit Leasing Romania SA ("UCLRO") with UCLC, finalized in June 2015, the date

when UCLRO was absorbed by UCLC.

            1F Expozitiei

Boulevard, 8th floor, District 1, Bucharest, Romania, intermediates insurance policies related to

leasing activities to legal entities and individuals, and became a subsidiary of the Bank beginning

with 31 December 2020. The Bank has an indirect controlling interest of 99.98% through UCLC,

which owns 100% UCIB.

As of 31 December 2024 the Group carried out its activity in Romania through the Head Office located in

Bucharest and its network of 169 branches/Bank 166 branches (31 December 2023: Group 168

branches/Bank 166 branches) in Bucharest and in the country.

2. 2024 Activity Overview

In 2024, the Bank had a remarkable evolution, it also continued to support the real economy in Romania

and to be a reliable partner to help them. We have offered our consistent support to the business

environment, through high-quality services, through financing conditions (costs and required guarantees)

adapted to the needs of customers.

Thus, UniCredit Romania Group registered a significant increase in loan volumes +15% (+13 Bank)

compared to 2023, which also contributed to a favorable evolution of the market share, for all customer

segments.

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

Beyond all these excellent achievements and developments, the year 2024 was marked by the

conclusion of the transaction and the beginning of the merger process with Alpha Bank Romania, a

process that is expected to be completed in the second part of 2025.

During 2024, UniCredit Bank continued to support the development of companies in Romania, in an

economic environment with many challenges, receiving recognition for its efforts and capabilities to

support clients from various industries, through the excellent results recorded.

Specifically, the bank continued:

- to offer small and medium-sized companies access to working capital financing under advantageous

conditions, benefit from a guarantee between 50 and 70% of the loan value, through Competitiveness

for SMEs (eng.: SME Competitiveness), in order to expand the current activity, consolidate the activity, or

carry out new projects, including by approaching new markets; is a guarantee instrument accessed by

UniCredit Bank from the European Union, the program being financed by the EU through PNRR and

administered by the European Investment Fund;

- to implement credit facilities with guarantees dedicated to niche sectors, such as the Cultural and

Creative Sectors, Innovation and Digitization, Education or Sustainability. These guaranteed instruments

(eng.: Cultural and Creative Sectors, Innovation and Digitalization, Skills and Education, Sustainability) are

accessed by UniCredit Bank from the European Union, the programs being financed by the EU through

InvestEU and PNRR and administered by the European Investment Fund;

- to implement credit facilities with guarantees for large companies and small municipalities, with a

focus on meeting the environmental and digitalization objectives of the PNRR; is a guaranteed

instrument accessed by UniCredit Bank from the Ministry of Investments and European Projects, the

program being financed by PNRR and administered by the European Investment Bank;

In the first half of 2024, an important direction in the bank's activity was the participation in local risk

sharing schemes, provided by the Romanian state, to offer support to companies affected by the

consequences of the pandemic and the Russia-Ukraine war. In this sense, credit facilities were granted

using own funds and state guarantees to companies from numerous sectors of activity, such as

production, construction, agriculture, food industry, IT, transport and others, as follows:

- continued the IMM PLUS Program, through its six components: IMM ROMANIA PLUS, AGRO PLUS, IMM

PROD PLUS, CONSTRUCT PLUS, RURAL PLUS and INNOVATION PLUS, under the Ukrainian Temporary

Framework state aid scheme.

At the same time, UniCredit continued to be the partner bank for the implementation of the Grants for

working capital programs granted to entities in the agri-food sector, Start-up Nation and Femeia

Antrepenor managed by the Ministry of Entrepreneurship and Tourism, facilitating access to non-

refundable financial aid, essential in this period. The bank continued to be active and proactive in

supporting small and medium-sized companies and to grant numerous financings to those sectors of

activity with positive evolution, such as agriculture, the food industry, IT, the chemical industry,

pharmaceuticals, health, etc.

UniCredit continues to develop and make available its technical expertise for the investments of strategic

companies in our country. An example is the successful coordination and completion, as Principal

Mandated Arranger, Coordinator, Bookrunner, Lender, Documentation and Payment Agent and Facility

Agent, of a syndicated loan for one of the most important companies for the national energy sector. The

syndicated credit facility represents a support for the financing of the investment projects included in the

Development Plan of the National Natural Gas Transport System.

The commercial activity benefited from a positive influence following the implementation of specific

Corporate initiatives, both in the area of financial markets for FX and derivative products, as well as in

the area of transactions and payments. The initiatives along with the accelerated approval flows and

events dedicated to clients contributed to the expansion of the active client base and the diversification

of the portfolio through cross-selling.

In the area of the Retail segment, we maintained a competitive lending offer throughout 2024, which

placed us among the first options of customers, naturally reflected in increases above the market in this

line of business.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

UniCredit Bank continues to be a reliable partner of its customers, individuals, offering them financial

solutions adapted to their needs for purchasing a home or optimizing the costs of a real estate purchase

loan by refinancing loans. In an economic context where the increase in the ROBOR and IRCC indicators

led to significant increases in loan rates, we observe a significant dynamic in the demand for mortgage

refinancing. Customers have been looking for solutions to convert variable rate loans to fixed rate loans

so that they can hedge against interest rate fluctuations for a period of time. At the same time, the

increase in inflation and the decrease in purchasing power, as well as the increase in interest rates on the

market, affected the budget of Romanian consumers, causing them to reduce their expenses and look for

more advantageous alternatives. UniCredit Bank understood this customer need and adjusted its

financing offer so that it has in its portfolio an extremely competitive product, easy to access, with

optimized costs for the customer and additional benefits.

Because we relied on those products built around the actual needs of customers, we had a very good

evolution of the segment of loans intended for the purchase of homes, with the total volume of

mortgage sales registering a significant increase in 2024.

We have demonstrated our commitment to the long-term support of our clients through a series of

initiatives aimed at ensuring the development of the bank. Deposits attracted from customers increased,

reflecting our efforts to ensure diversified and solid liquidity. We successfully launched Onemarkets, an

absolute differentiator in the market, both for existing customers and for attracting new customers. This

platform means a diverse range of investment strategies, giving UniCredit clients the opportunity to

leverage the extensive expertise of world leaders in asset management. At the same time, the Premium

offer launched in 2024, dedicated to the Affluent customer segment, is considered one of the best on the

market.

In November 2024, we successfully completed the largest issue on the local market of unsecured

corporate bonds, worth 750 million lei, listed on the Bucharest Stock Exchange, which shows investors'

confidence in the bank's financial soundness and long-term development strategy.

One of the priorities of 2024 was the continuation of the implementation of the local ESG strategy. In

accordance with the group's strategy, we have adopted objectives for both green financing and we have

proposed to support our clients in the transition towards a more sustainable and fairer economy. We

continued to finance businesses in the area of green energy, renewable energy and energy efficiency, and

the green mortgage loan for individuals continued to be one of the requested products. Financial and

entrepreneurial education programs are part of the ESG strategy. For example, in 2024, we organized the

first ESG awareness caravan in the country, reaching 8 cities, with the participation of over 800 large

companies and SMEs

An important recognition of the contribution brought to the support of companies that make the

transition from a consumer society to a responsible society in the allocation and use of resources, is

obtaining the Sustainable Business Hero award at the BIZ Sustainability Awards Gala.

At the annual Euromoney Excellence Awards Gala in London, UniCredit was named the Best Bank for

Corporate and ESG .in Romania.

Also, the Best FX Bank in Central and Eastern Europe award at Euromoney's Foreign Exchange gala is a

remarkable achievement and comes as a result of a solid strategy based on customer needs orientation

and digital transformation: through continuous investments in technology and by creating a remarkable

experience for customers, becoming a more competitive bank and thus consolidating its market position

in FX activity in CEE, from year to year. The UniCredit FX trading platform, UCTrader, is a powerful

competitive tool to trade different FX products (spot, forward and currency swap transactions with a

single click) independently, in a secure environment.

The awards for the Best Corporate Bank and the Most Visible Supporter of Culture, received for the

previous year's activity, within one of the most prestigious and objective competitions for the financial-

banking sector in Romania, Mastercard Bank of the Year, once again confirm our constant efforts and the

exceptional results obtained by UniCredit Bank.

Forbes Romania magazine marked the moment of the merger of UniCredit Bank with Alpha Bank

Romania, awarding us the "Personality of the Year" award in December 2024.

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

UniCredit Consumer Financing IFN S.A.

In 2024, UniCredit Consumer Financing accelerated the expansion of commercial activity, the volume of

new loans being 41% higher than in the previous year. The balance of consumer loans was at a historical

maximum, increasing by 30% compared to 2023. These achievements were the result of both the

constant attention to provide customers with competitive financing solutions, through a simplified and

digitized lending process, as well as the continuous expansion of distribution channels. In addition, the

offer of financing through loans for personal needs has been constantly adapted to the needs of clients,

being offered interest reductions in the case of collecting income in accounts opened at UniCredit Bank

or purchasing a life insurance.

Regarding credit cards, customers benefited from the advantages offered in the interest-free

installments campaigns, carried out on a recurring basis. Efforts to simplify, digitize and improve the

customer experience were also continued through the new facility to access a 100% digital credit card,

through partner sites, in order to finance the goods sold by the partner. In order to offer dedicated

products, Auchan and Leroy Merlin co-brand credit cards were launched.

The expansion of the commercial activity took place in parallel with the careful management of the

credit risk and the constant improvement of the operational efficiency.

UniCredit Leasing Corporation IFN S.A.

In 2024 we continued to emphasize projects and structures intended for sustainability (ESG). Thus, we

continued to develop the "GoGreen" project, both by maintaining competitive offers to encourage the

purchase of electric and hybrid vehicles, but also through structures dedicated to green energy, whether

we are talking about standard products addressed to the prosumer customer segment or by financing, in

a personalized approach, some green projects of medium and even large dimensions.

Digitization has been and will continue to be a priority in the list of projects we are running. We are not

talking about a simple project, but about a digital route that both we and our customers follow. Of

course, we continued to build new partnership relationships, but also to develop the existing ones, all

this, always putting the client at the center of our activity.

In 2024, UniCredit Leasing celebrated 22 years of existence, but also the 17th consecutive year in which

it is the leader of the financial leasing industry.

In 2024, the main performance indicators of UniCredit Bank Group evolved as follows:

 Total assets increased by 8.51%, up to RON thousands 81,030,350;

 Net profit: increased by 13.60%, mainly due to increase in net interest income;

 Customer loan portfolio (including lease receivables) increased by 14.64% compared to 2023.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

UniCredit Bank Group had a solid financial position in 2024:

Indicator (%)

Group

Bank

2024

2023

2024

2023

ROE

16.75%

16.38%

16.80%

16.46%

ROA

2.02%

1.93%

2.01%

1.91%

Solvency ratio

21.10%

22.79%

24.42%

27.34%

Cost/Income ratio

41.92%

37.57%

43.27%

38.18%

Loans to deposits

83.5%

83.85%

75.97%

69.57%

Loan portfolio provision coverage

4.63%

5.00%

4.25%

4.48%

As of 31 December 2024, total assets of the UniCredit Bank Group are RON 81,030,350 thousands

(Bank: RON 72,576,031 thousands). The net profit for 2024 is RON 1,633,998 thousands (Bank: RON

1,456,897 thousands), out of which non-controlling interest amounts to RON 21,650 thousands.

During 2024, the members of the Management Board acted in accordance with statutory laws and

regulations in force and ruling UniCredit Bank regulations. The Supervisory Board and

Management Board members also acted according to their responsibilities as defined in the Constitutive

Act of the Bank and within the limits of their competences assigned by the General Shareholders

Meeting. The Management Board has acted under the supervision and control of the Supervisory Board.

The activity of the Management Board as the main decision making corporate body in the Bank has been

consistently and efficiently supported by staff of the Bank, in accordance with their responsibilities and

competences operating in compliance with their authorities and set of responsibilities.

The Management Board has coordinated the activity and has taken all necessary measures for the

proper management of it, in compliance with the Constitutive Act of UniCredit Bank.

The main subsidiaries are non-banking financial institutions, which are governed in a two tiered

system by Management Board and Supervisory Board. The members of the Management Board acted in

accordance with statutory laws and regulations in force and ruling UniCredit Bank   

regulations. The Supervisory Board and Management Board members also acted according to their

responsibilities as defined in the Constitutive Act of the Bank and within the limits of their competences

assigned by the General Shareholders Meeting. The Management Board has acted under the supervision

and control of the Supervisory Board.

3. Consolidated and separate financial statements of UniCredit Bank S.A. as at 31 December 2024

3.1. Legal framework

The separate financial statements of UniCredit Bank S.A and the consolidated financial statements of the

UniCredit Bank Group have been prepared in accordance with International Financial Reporting Standards

the provisions of Order 27/2010 issued by National

Bank of Romania, for approval of accounting regulations in accordance with International Financial

Reporting Standards as endorsed by European Union, with subsequent changes.

The duties stipulated by law, related to the organization and management of the accounting activity,

including the accounting principles (prudence, permanence of methods, continuity, independence,

intangibility, non-, materiality, substance over

form) have been followed. The provisions of the Accounting Law no. 82/1991, with subsequent changes,

the accounting regulations and the methods stipulated by regulations in force, were abided by the Bank.

The annual consolidated and separate financial statements of UniCredit Bank Group is audited by KPMG

Audit SRL.

-controlling interests

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

3.2. The Consolidated Statement of financial position

The IFRS Consolidated Statement of financial position of UniCredit Bank SA as of 31.12.2024 is presented below:

Group

Bank

In RON thousands

2024

2023

2024/

2023 (%)

2024

2023

2024/

2023 (%)

Assets:

Cash and cash equivalents

19,510,086

20,106,053

-2.96%

19,509,849

20,105,745

-2.96%

Financial assets at fair value through profit or loss

126,219

97,712

29.17%

126,219

97,712

29.17%

Derivatives assets designated as hedging instruments

165,600

242,560

-31.73%

165,600

242,560

-31.73%

Loans and advances to customers at amortized cost

41,495,113

36,196,421

14.64%

38,362,383

33,892,452

13.19%

Net lease receivables

5,089,369

4,305,696

18.20%

2,243

7,300

-69.27%

Loans and advances to banks at amortized cost

185,383

142,096

30.46%

185,383

142,096

30.46%

Other financial assets at amortized cost

558,523

558,257

0.05%

487,910

497,953

-2.02%

Financial assets at fair value through other comprehensive

income

2,073,384

2,026,525

2.31%

2,061,099

2,016,760

2.20%

Debt instruments at amortized cost

10,597,046

9,647,214

9.85%

10,597,046

9,647,214

9.85%

Investment in subsidiaries

0.00%

143,116

0.00%

Property, plant and equipment

156,574

171,348

-8.62%

155,316

169,000

-8.10%

Right of use assets

208,374

254,151

-18.01%

201,750

242,889

-16.94%

Intangible assets

495,127

424,876

16.53%

472,707

406,108

16.40%

Current tax assets

6,754

22,059

-69.38%

0.00%

Deferred tax assets

50,866

57,961

-12.24%

41,810

49,686

-15.85%

Other assets

311,932

419,432

-25.63%

63,600

51,504

23.49%

Total assets

81,030,350

74,672,361

8.51%

72,576,031

67,712,095

7.18%



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Group

Bank

In RON thousands

2024

2023

2024/

2023 (%)

2024

2023

2024/

2023 (%)

Liabilities:

Financial liabilities at fair value through profit or loss

50,884

120,253

-57.69%

50,884

120,253

-57.69%

Derivatives liabilities designated as hedging instruments

158,242

202,404

-21.82%

158,242

202,404

-21.82%

Deposits from banks

1,782,107

1,240,982

43.60%

1,782,107

1,240,982

43.60%

Loans from banks and other financial institutions at amortized cost

8,534,591

6,406,673

33.21%

732,566

584,966

25.23%

Deposits from customers

52,106,032

50,955,312

2.26%

52,740,216

51,002,566

3.41%

Debt securities issued

5,760,287

4,002,296

43.92%

5,760,287

4,002,296

43.92%

Other financial liabilities at amortized cost

1,251,140

1,185,038

5.58%

1,137,670

1,149,294

-1.01%

Subordinated liabilities

841,862

952,073

-11.58%

841,862

842,632

-0.09%

Lease liabilities

205,074

255,803

-19.83%

200,208

250,414

-20.05%

Current tax liabilities

51,911

18,736

177.07%

50,994

18,546

174.96%

Provisions

190,382

206,162

-7.65%

212,720

226,903

-6.25%

Other non-financial liabilities

341,203

346,087

-1.41%

238,840

207,970

14.84%

Total liabilities

71,273,715

65,891,819

8.17%

63,906,596

59,849,226

6.78%

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

Group

Bank

In RON thousands

2024

2023

2024/

2023(%)

2024

2023

2024/

2023 (%)

Equity

Share capital

1,177,748

0.00%

1,177,748

0.00%

Share premium account

621,680

0.00%

621,680

0.00%

Cash flow hedging reserve

(6,119)

(6,506)

-5.95%

(6,119)

(6,506)

-5.95%

Reserve on financial assets at fair value through other

comprehensive income

(17,745)

(13,185)

34.58%

(26,093)

(19,416)

34.39%

Revaluation reserve on property, plant and equipment

24,294

22,500

7.97%

24,294

22,500

7.97%

Other reserves

473,230

432,942

9.31%

473,230

432,942

9.31%

Retained earnings

7,291,155

6,369,744

14.47%

6,404,695

5,633,921

13.68%

Total equity for parent company

9,564,243

8,604,923

11.15%

8,669,435

7,862,869

10.26%

Non-controlling interest

192,392

175,619

9.55%

0.00%

Total equity

9,756,635

8,780,542

11.12%

8,669,435

7,862,869

10.26%

Total liabilities and equity

81,030,350

74,672,361

8.51%

72,576,031

67,712,095

7.18%

A more detailed explanation on several captions of the Statement of Financial Position is presented below.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

3.3. Assets

Cash and due from Central Banks - The balance of current accounts with the National Bank of Romania

represents the minimum reserve maintained in accordance with the National Bank of Romania

requirements. As at 31 December 2024, the minimum reserve level was at the level of as 8% (31

December 2023: 8%) for liabilities to customers in RON and 5% for liabilities to customers in foreign

currency (31 December 2023: 5%), both with residual maturity less than 2 years from the end of

reporting period and for liabilities with the residual maturity longer than 2 years with reimbursement,

transfer and anticipated withdrawals clause or 0% for all the other liabilities included in the calculation.

Loans and advances to customers and net lease receivables are in amount of RON 46,584,482

thousands for the Group (Bank: RON 38,364,626 thousands), corresponding to 57.49% of total assets

(Bank: 52.86%).

The outstanding loans balance as at 31.12.2024 is distributed as follows:

Group

Bank

2024

2023

2024

2023

Corporate

59.34%

59.70%

76.46%

76.24%

SME

14.12%

14.50%

1.82%

1.89%

Private Individual

26.49%

25.73%

21.65%

21.80%

Private Banking

0.05%

0.06%

0.07%

Term loans granted to customers are classified according to the remaining maturity into the following

time buckets:

Up to 1 Year

1 Year to 5 Years

Over 5 Years

Group

2024

41.2%

36.1%

22.7%

2023

41.3%

36.7%

22.1%

Bank

2024

41.1%

34.1%

24.8%

2023

40.6%

35.6%

23.8%

Loans are collateralized mainly by mortgages, assignments of receivables, pledges, corporate guarantees

from parent company and letters of guarantee.

The high-level risk structure of the loan portfolio (including individuals and companies) at the end of

2024 and 2023 is as follows:

Group

Bank

2024

2023

2024

2023

Neither past due nor impaired

95.02%

88.10%

91.47%

86.80%

Past due but not impaired

1.29%

5.39%

5.34%

5.43%

Other impaired loans

0.91%

0.40%

0.75%

0.30%

Individually significant impaired

loans

2.77%

0.56%

2.44%

0.52%

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

Other assets of RON 311,931 thousands decreased by 25.63% compared with December 2023 (Group

level).

3.4. Liabilities

Deposits and loans from banks balance is RON 10,316,698 thousands (Bank RON 2,514,673

thousands), representing 12.73% of total liabilities and equity.

In RON thousands

Group

Bank

2024

2023

2024

2023

Deposits

Term deposits

980,889

881,358

980,889

881,358

Sight deposits

801,218

359,624

801,218

359,624

Total deposits

1,782,107

1,240,982

1,782,107

1,240,982

Loans

Commercial Banks

7,677,347

5,671,409

Multilateral development banks

857,244

735,264

732,566

584,966

Total borrowings

8,534,591

6,406,673

732,566

584,966

Total

10,316,698

7,647,655

2,514,673

1,825,948

The balance of deposits from customers is totaling RON 52,106,032 thousands at Group level (Bank

RON 52,740,216 thousands), representing 73.11% of total liabilities and equity. At the end of 2024

almost 68% of deposits are payable on demand.

In RON thousands

Group

Bank

2024

2023

2024

2023

Term deposits

16,430,802

17,993,000

16,440,907

18,013,196

Payable on demand

34,510,585

31,956,699

35,135,042

31,988,882

Collateral deposits

1,164,623

1,005,603

1,164,245

1,000,478

Certificates of deposits

Total

52,106,032

50,955,312

52,740,216

51,002,566

In RON thousands

Group

Bank

2024

2023

2024

2023

Sundry debtors

20,116

19,957

21,385

19,927

Prepaid Expenses

177,639

342,517

48,162

36,376

Inventories

33,405

9,772

Other

93,266

59,606

6,547

7,574

Less impairment for sundry

debtors

(12,495)

(12,420)

(12,495)

(12,420)

Total other non-financial

assets

311,931

419,432

63,599

51,504



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Other non-financial liabilities balance is RON 341,203 thousands include:

In RON thousands

Group

Bank

2024

2023

2024

2023

Deferred income

183,627

214,810

109,898

105,094

Payable to state budget

52,723

43,644

47,773

40,049

Payable to employees

85,390

68,621

79,518

61,293

Other

19,463

19,012

1,651

1,534

Total other non-financial

liabilities

341,203

346,087

238,840

207,970

Provisions of RON 190,382 thousands are split by type as presented below:

In RON thousands

Group

Bank

2024

2023

2024

2023

Provision for financial

guarantees

91,524

97,769

117,477

124,949

Provision for legal disputes

6,815

8,276

5,478

6,248

Provision for off-balance

commitments

63,798

86,528

62,110

82,696

Other provisions

28,245

13,589

27,655

13,010

Total

190,382

206,162

212,720

226,903

Subordinated loans of RON 841,862 thousands represent the outstanding balance of subordinated

loans borrowed from UniCredit SPA.

In RON thousands

Group

Bank

2024

2023

2024

2023

UniCredit SPA

841,862

842,632

841,862

842,632

UniCredit Bank Austria AG

109,441

Total

841,862

952,073

841,862

842,632

3.5. Off-balance-sheet exposures

The outstanding off-balance-sheet gross exposure at Group level at the end of 2024 totaling RON

27,378,872 thousands is presented below, 88.92% representing exposures to non-banking customers

(Bank: RON 27,027,525 thousands).

In RON thousands

Group

Bank

2024

2023

2024

2023

Off balance sheet exposures to

nonbanking customers

24,344,577

21,780,442

23,993,230

21,091,571

Off balance sheet exposures to

banks

3,034,295

2,446,777

3,034,295

2,446,777

Total

27,378,872

24,227,219

27,027,525

23,538,348

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

3.6. Consolidated Profit and loss account

2024 Consolidated and Separate IFRS Income Statement of UniCredit Bank is presented below:

Group

Bank

In RON thousands

2024

2023

2024/

2023

(%)

2024

2023

2024/

2023

(%)

Interest income using EIR

4,303,032

3,720,308

15.66%

3,933,561

3,399,485

15.71%

Other interest income

319,175

246,577

29.44%

-46.67%

Interest expense

(2,237,543)

(1,859,985)

20.30%

(1,863,639)

(1,584,043)

17.65%

Net interest income

2,384,664

2,106,900

13.18%

2,069,930

1,815,457

14.02%

Fee and commission income

957,929

827,876

15.71%

864,639

749,236

15.40%

Fee and commission expense

(433,048)

(334,880)

29.31%

(399,153)

(316,951)

25.94%

Net fee and commission income

524,881

492,996

6.47%

465,486

432,285

7.68%

Net income from instruments at fair value through profit and

loss

500,484

424,639

17.86%

500,484

424,701

17.84%

Net gain/(loss) from foreign exchange

(12,767)

85,044

-115.01%

(30,435)

65,217

-146.67%

Fair value adjustments in hedge accounting

(3,410)

(7,616)

-55.23%

(3,410)

(7,616)

-55.23%

Net gain/(loss) from derecognition of financial assets

measured at amortised cost

23,088

93,229

-75.24%

3,958

83,005

-95.23%

Net gain/(loss) from derecognition of financial assets

measured at FVTOCI

(788)

(11,979)

-93.42%

(788)

(11,979)

-93.42%

Dividend income

4,949

3,868

27.95%

4,949

3,868

27.95%

Other operating income

103,302

12,540

723.80%

76,075

12,780

495.27%

Operating income

3,524,403

3,199,621

10.15%

3,086,249

2,817,718

9.53%

Personnel expenses

(617,624)

(566,521)

9.02%

(549,339)

(500,259)

9.81%

Depreciation and impairment of tangible assets

(103,057)

(105,279)

-2.11%

(95,584)

(96,996)

-1.46%

Amortization and impairment of intangible assets

(64,250)

(63,272)

1.55%

(59,002)

(56,700)

4.06%

Other administrative costs

(647,394)

(434,778)

48.90%

(605,778)

(400,423)

51.28%



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Group

Bank

In RON thousands

2024

2023

2024/

2023

(%)

2024

2023

2024/

2023

(%)

Other operating costs

(45,056)

(32,262)

39.66%

(25,683)

(21,549)

19.18%

Operating expenses

(1,477,381)

(1,202,112)

22.90%

(1,335,386)

(1,075,927)

24.11%

Net impairment (losses)/reversals on financial instruments

(82,046)

(293,577)

-72.05%

1,767

(212,789)

-100.83%

Losses on modification of financial assets

-95.38%

Net operating income

1,964,979

1,703,997

15.32%

1,752,633

1,529,067

14.62%

Net impairment losses on non-financial assets

(1,112)

(449)

147.66%

(1,112)

(449)

147.66%

Net provision gains/ (losses)

(12,745)

(967)

1217.99%

(13,547)

(99)

13583.84%

Profit before tax

1,951,122

1,702,581

14.60%

1,737,974

1,528,519

13.70%

Income tax expense

(317,124)

(264,198)

20.03%

(281,077)

(234,643)

19.79%

Net profit for the year

1,633,998

1,438,383

13.60%

1,456,897

1,293,876

12.60%

Attributable to:

Equity holders of the parent company

1,612,348

1,423,187

13.29%

Non-controlling interests

21,650

15,196

42.47%

Net profit for the year

1,633,998

1,438,383

13.60%

1,456,897

1,293,876

12.60%

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

4. Conclusion

Although the market conditions and the local and international economic environment continued to be

challenging, in 2024 UniCredit Bank Group proved to be one of the Unicredit Group's growth engines in

Eastern Europe, having remarkable results.

The future development objectives will continue to focus on a more rapid growth of operations in retail,

alongside with the strengthening of corporate activity. The Group continues to focus on delivering of

value-added services, on risk management, profitability, productivity and strengthening of market

position through higher service quality, enriching the range of products and services, as well as strict

compliance with the acting laws and by-laws. Last but not least, the Group remains consistent with its

mission of being close to its clients and supporting them in accomplishing the things that matter to

them.

5. Equity accounts and profit distribution

5.1. Equity accounts of the Bank as of 31 December 2024

As of 31 December 2024        RON 8,669,435 thousands and the

composition is presented below:

In RON thousands

Bank

Paid-in capital

455,219

Hyperinflation effect  IAS 29

722,529

Subscribed Share capital

1,177,748

Share premium

621,680

Cash flow hedge reserve

(6,119)

Reserve on financial assets at fair value through other comprehensive

income

(26,093)

Revaluation reserve on property and equipment

24,294

Other reserves

473,230

- Statutory general banking risks

115,785

- Statutory legal reserve

91,044

- Effect of hyperinflation  IAS 29

19,064

- Actuary profit/loss

-67

- Other reserves

247,404

Retained earnings

6,404,695

Net profit for the period

2,264,740

Total equity of the Bank

8,669,435

At 31 December 2024 the paid-in capital of the Bank was RON 455,219,478.30, split into 48,948,331

shares at RON 9.3 per value each. Out of the total shares, 8,187,547 shares were issued with a share

premium of 75.93 RON / share. The total value of the share premium is RON 621,680 thousands. Both

the statutory capital and the share premium were fully paid.

2024 is the following:

Bank

31.12.2024

31.12.2023

UniCredit SpA

88.7298

98.6298

Alpha International Holdings Single Member S.A.

9.9000

Minority shareholders (individuals and legal entities)

1.3702

Total

100.00

On November 4th, 2024, after receiving all regulatory approvals, UniCredit S.p.A acquired 90.1% of the

share capital of local Alpha Bank Romania S.A. from majority shareholder Alpha International Holdings

Single Member S.A. in exchange of cash payment and share transfer of minority stake of 9.9% in

UniCredit Bank S.A.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

5.2. Profit distribution

The Supervisory Board proposes to the General Meeting of Shareholders the distribution of the profit

related to the year 2024 in the amount of RON 1,456,897,308.39, calculated and presented in the

Consolidated and Individual Financial Statements prepared in accordance with the International

Financial Reporting Standards applicable to credit institutions based on the Order issued by the Governor

of the National Bank of Romania no. 27/2010 with subsequent amendments and additions, as follows:

a. the establishment of a reserve in amount of RON 23,522,599.00 related to the profit reinvested in the

2024 financial year, for which the Bank applied the profit tax exemption, in accordance with art. 22 of

Law no. 227/2015 regarding the Fiscal Code;

b. the distribution of dividends in the amount of RON 728,448,654.20, proportional to each shareholder's

share in the Bank's paid-up capital;

c. the reinvestment of the remaining net profit, in amount of RON 704,926,055.19, in order to increase

the capital base and the solvency rate of the Bank.

6. Forecast related to the future macroeconomic environment

The Romanian economy will increase by about 1.0%yoy in 2024, at a slower pace as compared to 1.4%

recorded in 2023, as the external demand was below expectations, while the strong private consumption

was largely satisfied from imports. The continuation of the conflict in the region, which contributed to

the increase of the energy and food prices, as well as the lower external demand, weigh down on



Among the sectors that performed well in 9M 2024, the main contributors to GDP growth were the retail

trade, cultural activities, public administration and defense and construction.

The agriculture and manufacturing had a negative contribution to GDP. In 2024, the investment

continued to support growth, albeit at a slower pace as compared to the previous year. Consumption

remained the main contributor to GDP growth, mainly driven by the private sector, favored by the lower

inflation and interest rates.

The investments had been supported by the EU funds available under the Recovery and Resilience Fund

(RRF), locally named the National Recovery and Resilience (PNRR). Within PNRR, Romania can access up

to EUR 28.5bn during 2021-2027 period (EUR 13.6bn grants and EUR 14.9bn loans), equivalent of 8.8%

of GDP. Until present, Romania received about EUR 9.4bn (as loans and grants, incl. pre-financing ) of

which only about 30% had been spent. The amount of EUR 2.6bn to be received in 2024 was postponed

for 2025.

In our baseline scenario, we downgraded our GDP growth estimate to 1% in 2024 (from 3% at the

beginning of 2024) considering the poor performance of the economy in the first 9M 2024 (+0.9%yoy,

gross data).

In 2025 the economy will increase by about 1.9% owing to base effects. The private sector will remain

the growth driver, although it will have less funding in 2025, leading to a slowdown in consumption,

while investment is likely to further support growth and exports could start to recover. Moreover, we

could see a better performance in construction, real estate transactions and industry.

Romania's budget deficit widened to 7.1% of GDP in 11M 2024 and is likely to end the year above 8% of

GDP. Romanian government requested the European Commission the extension of the horizon for deficit

reduction to below 3% of GDP, to seven years from the regular four years, taking advantage of the laxer

European fiscal rules for public investment. The planned adjustment for 2025 is down to a level of 7% of

GDP, followed by a gradual reduction over the next 6 years and a drop below 3% target only in 2031.

Public debt is expected to exceed 50% of GDP at the end of 2024 and further expand in the coming

years. We do not see any danger of an immediate rating downgrade for Romania, but an insufficient

fiscal adjustment in 2025 would increase the risk of future rating actions. Fitch Ratings sent a warning by

In the first half of 2024, the annual inflation rate entered on a declining trend after it spiked to 7.4%yoy

in January 2024 triggered by several tax increases (especially excise duties for fuels and tobacco). Then,

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

it gradually declined to 4.9%yoy in June, due to the lower food and energy prices, leaving room for the

NBR to cut the key rate at two consecutive monetary policy meetings on July 5 to 6.75% and on August 7

to 6.5%. In the second semester of 2024, the NBR stayed on hold due to the high fiscal and political

uncertainty.

The core inflation also decreased to 5.6% in December 2024, but remains much stickier than in other

CEE countries due to the strong domestic demand and above the headline inflation, which ended the

year slightly up at 5.1% in December following the food prices re-acceleration.

Inflationary risks remain high and we expect inflation to miss target (2.5% +/- 1pp) in 2025 due to local

measures which are likely to be reflected in consumer prices; and 3. the removal of the legislative cap on

energy for households as of April 2025. We see the headline inflation slightly declining at 4.5% at the

end of 2025, while core inflation could drop below the 3.5% upper bound of the target range in 4Q 2025.

We expect the NBR to remain prudent due to the higher risk of outflows caused by two main factors: 1.

the political uncertainty and lack of transparency regarding the future fiscal measures, which will shape

the future inflation; and 2. the prospects of higher US interest rates and yields is likely to slow the easing

cycle in CEE countries. The NBR could cut the key rate from the current level of 6.5% in the second part

of 2025, down to about 5.5% at the end of 2025, to support the economic activity.

The main interbank money market rates continued to decline gradually to about 6.00% (Jun average),

supported by the easing of liquidity conditions. This trend continued by November, before the general

elections, the rates declining close to the 5.5% deposit facility rate. At the end of 2024, the local

monetary conditions tightened due to a sharp drop in the excess liquidity due to borrowing by the



30-50bp from the deposit facility (5.5%). We expect the ROBOR rates to stay closer to the key rate in

2025 as the market liquidity will be lower.

The yields on government securities increased slightly to an average 6.72% in 2024, especially starting

mid-November when they exceeded 7%, due to the uncertainty surrounding the local general and

presidential elections, after they declined by about 2pp in 2023 to an 6.2% average for 10Y state

securities. The yields of the Romanian bonds could be subject to new episodes of upward pressure

considering the high global uncertainty, the upward pressure on US yields and the local political and

fiscal uncertainty.

The EUR-RON exchange rate depreciated to an average 4.9746 in 2024 as compared to an average

4.9465 in 2023, while it ended the year on a depreciation trend, at an average 4.9754 in November and

December. The Romanian leu remains one of the most stable currencies in CEE, supported by the Central

-inflationary anchor. At the end of 2024, the

EURRON was under severe upward pressure, but the NBR intervened and kept it below 5.00, the pair

closing the year at 4.9765. Depreciation pressures and the exchange rate volatility could persist at least

until the spring of 2025, when the presidential elections are being rescheduled (4 and 18 May).

We expect the EURRON to move above 5.00 in 1Q25, trading within a 5.00-5.10 range, which is likely to

           

fiscal deficits, are in favor of a gradual depreciation of the national currency.

Lending accelerated to 8.9%yoy as of December 2024, from 6.5%yoy in 2023, , due to both components,

the RON lending at about 12.0%yoy (vs. 5.8%yoy in 2023), while the foreign currency decelerated to

3.2%yoy from 7.9%yoy in 2023. The pace of lending to companies slowed down to 8.5%yoy from

11%yoy in 2023 , while the loans to individuals was almost 7 times faster at 9.4%yoy vs. 1.4%yoy in

2023, mainly due to the consumer loans up strongly by +17.9%yoy, while the mortgage loans rose

moderately by 4.2%yoy.

halved as compared with the previous year (+7.0%yoy vs. 14.2%yoy in December 2023), while the

individuals' savings maintained their double digit growth (+12.4%yoy vs. 11.6%yoy in December 2023).

The NPL ratio at the banking sector level remained on a declining trend, respectively at 2.54% as of

September 2024 (vs. at 2.61% as of September 2023).



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

7. Research and development activity

The research and development activity of UniCredit Bank Group, including the know-how received from

UniCredit Spa Group, was mainly directed to improvement of efficiency and productivity of:

 Products and services offered to customers;

 Risks management systems;

 Internal control systems;

 Financial accounting systems;

 Management information system;

 IT systems;

 Human resources management programs;

 Decision making systems.

8. Risk Management

               

subsidiaries. UniCredit Bank established a comprehensive and independent risk management function

under direct supervision of the management body, having personnel with relevant experience, adequate

                

measurement and assessment of risks.

Within the risk management processes, the Internal Capital Adequacy Assessment Process  has

an important role being focused on the development and maintenance of sound internal procedures and

systems which allow the evaluation of the bank capital adequacy, respectively, ensuring the balance

between the assumed risks and the available capital. ICAAP is an integral part of management and

decision-making processes.

The risk management framework is clearly and transparently transposed in internal norms, procedures,

manuals and codes of conduct, distinctively mentioning the standards applicable for all employees and

those applicable only to specific categories of employees.

The strategic objectives on significant risk management are achieved through the following:

 Definition and setting of basic principles and respective limits regarding risk management;

 An organizational structure specialized and with focus on risk management;

 Specific strategies and techniques for risk measuring and monitoring.

Based on the internal analysis performed with the Holding guidance, UniCredit Bank S.A. identified the

following significant risks:

1. Credit risk

2. Market risk and Interest Rate Risk in the Banking Book (IRRBB)

3. Liquidity risk

4. Operational risk

5. Reputational risk

6. Strategic risk/ Business risk

7. Real estate risk

8. Risk of excessive leverage.

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

9. Compliance risk

10. Inter-concentration risk

Other risks considered to have major impact on the bank patrimony are the risks associated with

outsourcing activities.

The final responsibility for risks assessment belongs exclusively to the Bank, that critically assesses its

risks without relying solely on external valuations.

The strategy and the significant risk management policies, established at the Bank level, are reviewed

periodically.

Unicredit Bank S.A. has implemented a well-defined and documented reporting framework, including

regular and transparent reporting mechanisms, so that the management body and all relevant units

within the institution benefit on time by accurate and concise reports, through risk management advisory

committees, established by the Bank.

The reports to be submitted to the management body and to the relevant units, and other relevant

information related to the identification, measurement or evaluation and monitoring of risks are

summarized in the implemented reporting framework.

Unicredit Bank S.A. defines periodically the risk appetite, respectively the level of risk that UniCredit Bank

S.A. is prepared to accept in pursuit of its strategic objectives and business plan, taking into account the

interest of its customers (e.g. depositors, policyholders) and shareholders as well as capital and other

requirements.

The Management body reviews and approves the risk appetite on a yearly basis to ensure its consistency



the budget process.

Unicredit Bank S.A. regularly monitors the actual risk profile and examines it in relation to the credit

institution's strategic objectives and tolerance / risk appetite for assessing the effectiveness of the risk

management framework. Evaluation and monitoring of the risk profile is done through indicators

established within risk appetite.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

8.1. Credit risk

In the assessment of credit risk, Bank takes into consideration the following sub-categories of the credit

risc: default risk (which also includes country risk and foreign currency risk), migration risk, counterparty

credit risk and settlement risk, credit concentration risk (which also includes, risk associated to high-

leverage transactions), residual risk and climate & environmental risk

UniCredit Bank Group manages this risk through a set of comprehensive measures, both at transaction

and debtor, and at global level, related to:

 Identifying, measurement and adequately management both of credit risk in general, and sub-

categories of credit risk in particular;

 Adequate credit risk management by applying risk mitigation techniques and by optimizing risk-

weighted assets;

 Periodically monitoring of credit products in order to identify high-risk products and take specific

measures to reduce the risk;

 Monitoring, based on its polices and processes of the counterparties risk profiles to which the Bank

grants credits, and any other factor that can trigger the default, including the foreign currency risk for

unhedged borrowers.

 Aggregate management of significant risk, for the identification of intercorrelation between different

types of risks;

 Set up of the flow of expected credit loss (ECL) under IFRS9 (credit risk provisions) in UniCredit Bank

in accordance with the legislation in force on international financial reporting standards and in

conjunction with the provisions contained in the policies of UniCredit Bank Group;

 Capital allocation for credit risk unexpected losses in accordance with the regulatory and UniCredit

Bank Group regulations;

 Regular monitoring of the credit risk profile of the Bank in order to ensure framing the specific

indicators for measuring credit risk within the limits established in risk appetite framework.

8.1.1 Environmental, Social & Governance (ESG) Risks

Environmental, social and governance (ESG) factors are key factors in measuring the sustainability and social

impact of a financial institution. ESG factors are those environmental, social or governance elements that can

have a positive effect or negative impact on the bank's financial performance or solvency.

An annual materiality analysis is aimed at assessing the relevance of climate related risk drivers with respect to

the various risk families considered and their potential impact for the Bank is carried out under the normative

and economic perspectives for both the short-term and medium/long- term horizons.

ed out under the normative and economic perspectives for both the short-term and medium/long- term

horizons.

This exercise, performed through scenario analysis, envisages the full coverage of risk types and the integration

of forward-looking elements and is used to identify how the risk types (e.g. credit risk, market risk, etc.) are

impacted by transition and physical risks for the considered time horizons, as well as an assessment of the

capital adequacy to check the Bank resilience for the medium/long-term horizon.

erm horizon.

Integration of climate risk into risk framework into overall risk management framework, was achieved through:

a. Integration of climate risk into Risk Appetite Framework (RAF), as follows:

- provides a strategic view of and guidance on the target risk profile;

- quantitative KPIs with related targets and risk tolerance thresholds for proactive

risk steering  transition risk score and physical risk specific KPIs ;

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

- ensure the cascading of the Risk Appetite to more granular levels via operative indicators,

limits and controls.

b. Integration of transition risk into credit portfolio  Credit Risk Strategy and Counterparty level. The transition

risk of the portfolio is measured with different metrics, also including the distribution of the credit portfolio by

industry. Thus, a comprehensive approach has been developed to assess and manage transition risk and the

Risk Management framework defined is consistent with RAF and is based on 3 pillars:

 specific reputation risk policies set-up ;

 dedicated Industry steering signals, based on relevant C&E factors included in the Credit Risk Strategies

framework;

 assessment at single client level, leveraging a dedicated C&E questionnaire.

Leveraging on transition risk score, the process application results in specific strategies (in terms of eligible

products) to steer the corporate portfolio's exposure as to manage climate and environmental risks.

More in details, in case the client is assigned high transition risk score, the strategy foresees prevalence or

exclusivity of ESG products.

Outcome of physical risk assessment at counterparty level is meant to complement the strategy with the

request of physical risk mitigation action whenever deemed necessary.

c. Evaluation of Transition risk at collateral level, which was achieved by measuring the risk associated with

assets accepted as collateral to fulfill regulatory obligations (Pillar 3, EU Taxonomy, Stress Tests) and meet

managerial needs:

                

specialized providers, which developed an estimation model;

 for the new flows, the following transition risk KPIs are collected and properly taken in consideration during

origination phase.

Such information has been integrated into the ESG Global IT Infrastructure and is available on the local

platforms at the origination stage.

d. Physical risk in the credit portfolio physical risk is monitored for collateral assets portfolio. This involves the

assessment of a wide range of hazard events. Local guidelines have been updated to integrate transition risk

KPIs into collateral evaluation - the appraiser is delegated to evaluate, based on own independent assessment,

the extent of transition risk (leveraging on EPC) and to embed this component in the overall assessment and

final value assigned to the collateral.

8.2. Market risk and Interest risk

UniCredit Bank S.A faces interest rate risk that could be a result of exposure to unfavorable fluctuations

on the market. The change of the interest rates on the market directly influences the income and

expenses related to the financial assets and liabilities bearing variable interests, as well as the effective

value of those bearing fixed interest rate.

For the financial receivables and financial liabilities in RON, UniCredit Bank S.A. aims to correlate the

current interest rates on the market and to obtain a positive interest margin.

For the financial assets and liabilities denominated in other currencies than RON, Unicredit Bank S.A. and

its subsidiaries aim to maintain a positive net position. Most of the interest-earning assets and interest-

bearing liabilities in foreign currencies have variable interest rates which could be exchanged at the Bank

initiative or that are related to a reference variable interest rate on the inter-banking market.

Unicredit Bank S.A. monitors the exposure to interest rate risk by using a system of indicators and

associated limits: duration gap, basis point value, VaR component for the interest rate risk in the banking

book, net interest income sensitivity and economic value sensitivity. The two indicators: net interest

income sensitivity and economic value sensitivity .



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

8.3. Liquidity risk

The liquidity risk is the probability of the bank falling short of its due payments resulting from its

contractual relations with clients and third parties. Under normal conditions of market functioning, the

liquidity risk may materialize also through the need for the bank to pay a premium over market rates to

be able to access liquidity. Among the main potential generators of liquidity risk, the Bank distinguishes

between liquidity mismatch risk/refinancing risk; liquidity contingency risk; market liquidity risk.

Management of liquidity risk

               

management is to keep the liquidity exposure at such a level that UniCredit Bank S.A is able to honor its

payment obligations on an on-going basis, but also during a crisis without jeopardizing its franchise



Hence, two main operating models for the liquidity management are defined: going concern liquidity

management and the contingent liquidity management.

From a liquidity risk governance perspective, the Bank has two layers of governance bodies: managing

bodies acting as strategic decision taking functions and operational units acting as operative liquidity

management functions, i.e. Finance, Financial Risk, and Markets  Treasury respectively.

In accordance with the strategic goal of self-sufficient funding, the Bankunding strategy

is centered on:

 encouraging sticky client deposits;

 development of strategic funding through own bonds issues;

The liquidity cost/benefit allocation is an important part of the liquidity management framework.

Liquidity is a scarce resource and accordingly a proper management of costs and benefits is essential in

order to support sound and sustainable business models. Therefore, the Bank has put in place a proper

mechanism for internal funds transfer pricing.

Exposure to liquidity risk

Key indicators used by UniCredit Bank S.A. for measuring liquidity risk are:

 the daily short-term liquidity report, through which cash inflows and outflows mainly coming from

inter-bank transactions are monitored;

 the structural liquidity ratios/gaps, used to assess the proportion of medium-long term assets

sustained with stable funding;

 regulatory indicators: UniCredit Bank S.A has to comply with the limits imposed by National Bank of

Romania, such as the liquidity indicator calculated according to NBR Regulation no. 25/2011 and

the, Liquidity coverage ratio; calculated according with to the provisions of Regulation (EU)

575/2013, as amended by Regulation (EU) no. 61/2015.

 other key indicators for the management of liquidity and funding needs used to assess, the

concentration of funding and the way in which loans to customers are sustained by commercial

funds.

UniCredit Bank S.A. sets the limit and triggers levels for the main indicators used to measure the liquidity

risk and in case a breach is observed or anticipated, specific requested actions are taken for correcting

the structure of the asset and liability mix of UniCredit Bank S.A.

Regular stress testing assessments are performed in order to evaluate the liquidity position of UniCredit

Bank S.A. In case of a deteriorating position, liquidity stress tests are one of the main metrics in order to

   



basis. As such, liquidity stress testing serves as an essential tool of assessment of the liquidity risk in an

on-going basis, rather than in a crisis situation only.

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

8.4. Operational risk

Operational risk means the risk of loss resulting either from the use pf inadequate or failed internal

processes, people and systems or from external events. Operational risk includes legal risk, but excludes

strategic and reputational risk.

Legal risk is the risk of losses as a result of fines, penalties and sanctions for which the credit institution

is liable due to failure to apply or deficiently applying legal or contractual provisions, as well as due to

the fact that contractual rights and obligations of the bank and / or counterparty are not appropriately

provided.

The operational risk management framework within UniCredit Bank S.A. is well structured and involves

relevant factors in promoting a culture favorable to communication, management and control of

operational risk. Operational risk, including all its sub categories, is managed in accordance with the

requirements of the regulatory framework that includes the identification, assessment, mitigation,

reporting and control of operational risks.

For certain subcategories of operational risk (e.g.: IT risk, fraud risk, risk associated with outsourced

activities, conduct risk or legal risk), the framework includes regulations and tools specially designed for

administration and control, as well as the permanent involvement of organizational structures with

specific responsibilities assigned in this regard.

The framework is supported by the existence of an independent function dedicated to operational risk, by

a structure of relevant committees and by a system of reporting operational risk to the Management of

the Bank.

The operational risk management system is integrated into the internal processes defined for the

management of significant risks. The main tools used for identification, assessment, monitoring,

mitigation, reporting of operational risk, are: loss data collection and analysis, risk indicators monitoring,

scenario analysis, Permanent Workgroup analyses, evaluations of processes and activities from the

perspective of operational risk, mitigation actions definition (independently or as part of the previously

mentioned tools), management and Group reporting. Moreover, products, projects and internal

regulations are analyzed before approval and implementation and feedback and advice is provided by all

relevant areas within the Bank.

8.5. Compliance risk

Within a complex legal framework, UniCredit Bank Group is subject also to compliance risk, defined as

the actual or future risk to impact the profits and capital, which may lead to fines, claims and/or

cancellation of contracts or which may affect the reputation of a credit institution, as a result of

breaching or non-compliance with its own rules and standards, agreements, recommended practices or

ethical standards.

In order to meet the legal requirements compliance function, supported Management Board to manage

the conformity risk. It also gives support to identify, evaluate, monitor and report the compliance risk

associated to different activities, including consultancy regarding compliance with legal internal and

UniCredit SPA requirements.

8.6. Reputational Risk

Reputational risk is the current or prospective risk of earnings or liquidity or capital decrease caused by

the adverse perception of the image of the Bank on the part of customers, counterparties (also including

debt-holders, market analysts, other relevant parties, such as civil society, NGOs, media, etc.),

shareholders / investors, regulators or employees (stakeholders).

UniCredit Bank S.A has implemented a series of policies, regulations, processes, methods, specific

indicators and systems for controlling the reputational risk, in order to evaluate, monitor, reduce and

report periodically to relevant bodies.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

For reputational risk cases under the scope of specific reputational risk policies/regulations or which by

their nature involve reputational risk (like weapons/defense industry, civl nuclear sector, water

infrastructure (large dams) sector, mining industry, coal sector, oil & gas sector, etc. ), the working flow

established in specific procedures is followed, which implies going through the assessment process and

decision taking by the competent approval level for reputational risk according to regulations in force,

obtaining non-binding opinion (NBO) from Group (if the case).

8.7. Business Risk

Business risk is defined as adverse, unexpected changes in business volume and/or margins that are not

due to credit, market and operational risks. It can lead to serious losses in earnings, thereby diminishing

the market value of a company.

Business risk can result above all from a serious deterioration in the market environment, changes in the

competitive situation or customer behavior, but may also result from changes in the legal framework.

8.8. Real Estate Risk

Real Estate Risk is defined as potential losses due to fluctuations in the market value of the real estate



8.9 Strategic Risk

The strategic risk is the risk of suffering potential losses due to decisions or radical changes in the

business environment, improper implementation of decisions, lack of responsiveness to changes in the

business environment, with negative impact on the risk profile and consequently on capital, earnings as

well as the overall direction and scope of a bank on the long run.

8.10 Risk of Excessive Leverage

contingent leverage that may require unintended corrective measures to its business plan, including

distressed selling of assets which might result in losses or in valuation adjustments to its remaining

assets.

8.11 Inter-concentration Risk

Within the Bank, the following approaches relating to concentration risk are applicable

 Intra-concentration risk is considered in the risk management processes for each significant risk

 The risk of inter-concentration is considered both in the risk management processes for individual

risks and integrated when performing stress testing and evaluation of capital adequacy

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

9. Corporate Governance

UniCredit Bank Group is responsible for the existence of a rigorous management framework designed to

include at least the following aspects:

 organizational structure and organization;

 business model and related strategy;

 the  management, respectively: attributions and responsibilities, its composition and

functioning, including the establishment, composition, procedures and responsibilities of the

committees of the  management in its supervisory function;

 the culture regarding the risks and the conduct in carrying out the activity;

 internal control and related mechanisms, respectively: the risk management framework and internal

control functions, the policy of approving new products and significant changes to existing products,

processes and systems;

 managing the continuity of the activity;

 transparency requirements.

UniCredit Bank S.A. has a comprehensive range of internal regulations regarding management of the

business.

9.1.  corporate governance

Corporate governance statement

UniCredit Bank S.A., as a two tier governed bank, operates in a corporate governance framework that

respects all the legal and regulatory requirements of the Romanian legal framework, UniCredit Bank

Group rules, and the best international practices in the field.

Corporate governance of the bank is the set of rules and processes that establish the relationship

between shareholders, management, clients, employees, suppliers and other parties involved in defining

the bank's objectives, how they are met, and monitoring the performance of the bank. This highlights the

efficiency of management systems, namely the role of the Supervisory Board and the Management

Board, the responsibilities and remuneration of the members of these structures, the credibility of the

financial statements and the efficiency of the control functions.

The governance principles are defined in the:

 Constitutive Act;

 Internal functioning and organization regulation of the bank;

 The Bank's management framework (CAR);

 Management Board regulation (Annex to CAR) and Supervisory Board regulation (Annex to CAR);

 Regulations of the Committees subordinated to the Supervisory Board (Annexes to CAR);

 Regulations of the Committees subordinated the Management Board.

The sections below include details of the main features of internal control, risk management systems in

relation to the financial reporting process, the manner in which the general meeting of shareholders or

associates takes place and its key attributions, the rights of shareholders or associates and the structure

and how to operate the administrative, management and supervisory bodies and their committees.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

9.1.1. 

supreme authority of the Bank.

The rights, responsibilities and working methods of the GSM are established in the Constitutive Act of the

Bank and they are carried out in compliance with the applicable Romanian laws and regulations.

The detailed tasks and responsibilities .



Management Board in the cases mentioned in the Constitutive Act and in compliance with the applicable

laws.

The roles and responsibilities are detailed in the specific regulation/rule of procedure.

The Ordinary General Meetings of the Shareholders shall be convened at least once a year, within

maximum 5 months since the financial year end in accordance with the legal requirements, and at any

time it is needed to make decisions in its area of responsibility, in accordance with the provisions of law

or the Constitutive Act.

Extraordinary General Meeting of Shareholders shall be convened whenever decisions in its

responsibilities must be adopted.

The Ordinary General Meeting of Shareholders shall:

 discuss, approve or modify the annual financial statements, based upon the reports of the

Management Board, Supervisory Board and financial auditor, and shall approve the dividends;

 appoint and revoke the Supervisory Board members;

 appoint and revoke the financial auditor;

 establish the minimum duration of the financial audit contract following the proposal of the

Supervisory Board;

 

 

 approve the budget of income and expenses, and the program of activity for the next financial year

as established by the Management Board and after preapproval by the Supervisory Board.

The conduct of General Meetings Shareholders is in accordance with legal requirements of the applicable

laws regarding capital market, with a special attention to meet the rights and obligations of the

shareholders.

9.1.2. Supervisory Board

The Supervisory Board is the statutory body of the Bank responsible for supervision and control of the

          

business activities.

The Supervisory Board shall supervise the financial and business activities of the Bank and shall control



management bodies. The Supervisory Board shall further review the annual financial statements

including the proposal for the distribution of profits, and the annual report prior to submitting them to

the Ordinary General Meeting of Shareholders for approval.

The competences of the Supervisory Board are established by the Constitutive Act the Rules of Procedure

of SB (Annex to management Framework) - and the Romanian laws and regulations in force.

The Supervisory Board acted in 2024 through the Audit Committee, Remuneration Committee, Risk

Administration Committee, Nomination Committee.

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

9.1.3. Management Board

The Management Board is the statutory body responsible for current management of the Bank.

The Management Board is the statutory body of the Bank which is responsible for the management and

execution of all activities of the Bank, including monitoring and control of the business objectives of the

Bank. The Management Board takes decisions on any matters of the Bank, unless such decisions are

reserved to other bodies according to legal regulations or this Constitutive Act.



competences assigned by the Constitutive Act and the Rules of Procedure of the Management Board.

The members of the Management Board are appointed and/or revoked by the Supervisory Board.

              



Both Supervisory Board and Management Board operate through specialized committees, whose role is

to assist the management structure in specific areas.

9.1.4. Committees subordinated to Supervisory Board

Committees subordinated to Supervisory Board are:

 Audit Committee

 Remuneration Committee

 Nomination Committee

 Risk Administration Committee

9.1.4.1. Audit Committee

The Audit Committee is directly subordinated to the Supervisory Board.

The Audit Committee is a consulting body of the Supervisory Board, with specialized attributions.

The Audit Committee will be composed of 3 elected non-executive members of the Supervisory Board.

The members of the Audit Committee and the Chairman will be elected by the Supervisory Board.

The roles, responsibilities and functioning mechanisms of the Audit Committee are detailed in the Audit

Committee Regulation/rule of procedure.

9.1.4.2. Remuneration Committee

The Remuneration Committee is directly subordinated to the Supervisory Board.

The Remuneration Committee is set up to:

 

Board members, as well as Heads of Audit, Compliance and Risk Management;

 approve the terms and conditions of the management contracts to be concluded between the Bank

and the members of the Management Board;

 approve the goals of the Management Body and Head of Audit, Compliance and Risk Management.

The Remuneration Committee consists of 3 members, appointed by the Supervisory Board from among

its members and who exercise this function as long as they are also members of the Supervisory Board.

The Chairman of the Remuneration Committee is appointed by the Supervisory Board from among the

members of the Remuneration Committee and must be independent.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

The roles and responsibilities and functioning mechanisms of the Remuneration Committee are detailed

in the Remuneration Committee Rules of Procedure.

9.1.4.3. Nomination Committee

The Nomination Committee is a permanent committee established by the Supervisory Board having as

main duties:

 to identify and recommend to the Supervisory/Management Board, for approval, candidates to

occupy the vacant seats within the management body;

 to assess the balance of knowledge, skills, diversity and experience within the management body;

 to assess on a regular basis, but at least once a year, the structure, size, composition and

performance of the management body and to make recommendations to the management body

with respect to any changes;

 to assess on a regular basis, but at least once a year, the knowledge, skills and experience of each

member of the management body and of the management body as a whole and report to the

management body accordingly;

 to decide with respect to a target concerning the representation of the male or female gender, poorly

represented in the structure of the management body and draw up a policy concerning the means

for increasing the number of these individuals in the structure of the management body in order to

achieve the target concerned.

The nomination committee consists of 3 (three) members, appointed by the Supervisory Board from its

members that exercise this position as long as they are of the Supervisory Board. The roles,

responsibilities and functioning mechanisms of the Nomination Committee are detailed in the specific

Regulation.

9.1.4.4. Risk Management Committee

The Risk Management Committee is a permanent committee, directly subordinated to the Supervisory

Board, which advises the members of the Supervisory Board on specific areas to document the decisions

to be taken by the Supervisory Board, evaluates and sends recommendations to the Supervisory Board on

the assigned attributions and facilitates the development and implementation of a solid internal

governance/activity management framework.

The RMC shall be composed of 3 (three) members, appointed by the Supervisory Board from its members

that exercise this position as long as they are of the Supervisory Board.

The roles, responsibilities and functioning mechanisms of the Committee are detailed in the specific

regulation.

9.1.5. Committees subordinated to Management Board

Committees subordinated to Management Board are:

 Risk Management Operative Committee;

 Transactional Committee, with two sessions: (i) Credit Subcommittee and (ii) Special Credit

Subcommittee;

 Financial Risk Committee, with two sessions; (i) ALCO Subcommittee and (ii) Market Risk

Subcommittee;

 Projects & Expenses Committee, with two sessions: (i) Project Subcommittee and (ii) Cost

Subcommittee;

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

 Occupational Safety and Health Committee;

 Crisis Committee and working teams;

 Non-Financial Risk Committee, with two sessions: (i) ICT, Security and Cyber Risk and Subcommittee

(ii) Reputational Risk. Subcommittee;

The organization, composition, functioning and attributions of these committees are described in the

Organization and Functioning Regulation and in specific documents (rules of procedure).

Activities of the most important committees subordinated to the Management Board are bellow.

9.1.5.1 Risk Management Operative Committee

Risk Management Operative Committee has a consultative role, its mission being to analys the aspects

regarding the risks (including risk of conduct and risk of fraud), other than those subject to the

responsibilities of other committees. Also issue consultative decisions, opinions and recommendations to

the Management Board in connection with the analysed aspects, including in connection with the

outsourcing process of some activities of the Bank and the management of the non-performing

.

9.1.5.2 Transactional Committee, with two sessions: (i) Credit Subcommittee and (ii) Special Credit

Subcommittee

Transactional Committee has a decision-making role and is the main approval authority in relation to

individual credit exposures / credit lending transactions, based on the delegated powers based on the

delegated authorities of the Directorate, within the limits established by it, in with respect to all

segments of their bank customers, its main mission being organized in order to analyse, approve,

recommend, approve and / or reject applications for loan applications and related Memoirs for changes

to previously approved transactions, including attributions related to:

 ;

 Arbitration in cases of disagreements between different departments/ organizational structures

related with the transfer of a customer to / from Restructuring / Workout Department (according to

specific procedures);

           

classification;

 Approval of credit risk provisions and write-offs for restructuring and workout clients/exposures.

Transactional Committee meets in two sessions:

 Credit Sub-Committee (for performing exposures)

 Special Credit Sub-Committee (for non performing exposures).

and is structured on several levels of decision, regulated in the Rules of Procedure of the Committee.

9.1.5.3 Financial Risk Committee, with two sessions; (i) ALCO Subcommittee and (ii) Market Risk

Subcommittee

The Financial Risk Committee has a consultative or decision-making role, depending on the aspects that

form the object of its analysis and based on the competence delegated by the Management Board, its

mission being to:

 ensure the adequate administration of the bank balance sheet, in a proactive manner

 to monitor the financial risk position in order to optimize the bank's profit within the approved risk

limits



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

 advise strategies, policies, methodologies for market risk, counterparty credit risk, liquidity risk, FX

and banking book interest rate risks, fund transfer pricing, minimum margins in the customer

business and setting limits accordingly

 advise the Funding Plan and Contingency Funding Plan and evaluate the impact of transactions

significantly affecting the overall financial risk portfolio profile

 approve market risk limits, liquidity and interest rates, as well as new Treasury products (subject to

the approval of the Management Board)

 approve the internal transfer prices, including methodological aspects, as well as the external prices

of the products

 any other aspects related to Financial Risk, Treasury or Strategic Finance

9.1.5.4 Projects & Expenses Committee, with two sessions: (i) Project Subcommittee and (ii) Cost

Subcommittee

Project & Expenses Committee has a consultative or decision-making role, depending on the subjects

submitted for analysis according to its responsibilities and based on the competence delegated by the

-HR costs (OPEX)

and capital expenditure (CAPEX) of the Bank and of the UniCredit Subsidiaries.

Project & Expense Committee meets within two sessions:

 Project Sub-Committee Session (involved in issues related to the management of the bank's

portfolio of projects, including the initiation and monitoring of project implementation. This CPC

session will also approve project costs, according to the delegated approval powers) and;

 Cost Sub-Committee (having a decision-making role, approving OPEX costs and capital expenditures

(CAPEX), according to the delegated approval powers, other than those related to projects, while

ensuring operational monitoring, estimation and optimization of OPEX and CAPEX costs, both for

the Bank but and for its subsidiaries).

9.1.5.5. Crisis Committee and working teams

The Crisis Committee has a decision-making role, based on the competence delegated by the MB, both

the Crisis Committee and the related work teams being established by decision of the MB, their mission

being to coordinate and ensure operational support in crisis situations, adopt the necessary operational

decisions.

9.1.5.6 Non-Financial Risk Committee, with two sessions: (i) ICT, Security and Cyber Risk and

Subcommittee (ii) Reputational Risk. Subcommittee

NFRC has an advisory role, with the possibility to issue opinions, as appropriate, on major incidents

affecting ICT and information security services, as well as on the reputational risks associated with

lending or non-lending cases / initiatives / transactions.

NFRC meets within two sessions:

 NFRC - ICT, Security, Cyber Risk Sub-Committee involved in the analysis of major incidents affecting

ICT services in the reference area, as well as those with potential major impact, in order to identify

and take corrective action to effectively resolve ongoing incidents and to prevent new incidents and,

and to monitor information security management in all areas defined by internal regulations and

group policies),

 NFRC - Reputational Risk Sub-Committee - having the role of analyzing and issuing of opinions in

relation to the reputational risk associated with credit cases / initiatives / transactions, as well as for

non-credit activities and it is involved with priority, before any other committee / other official

decision. For the lending activity, the opinion issued within this sub-committee is followed by the

decision on reputational risk, the analysis of the lending opportunity and the final lending decision,

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

according to the established decision-making powers. For transactions other than lending, the

opinion of this sub-committee is requested before the analysis and approval of the respective

transaction.

9.1.6 Internal Control

The internal control is based on:

 the existence of the Internal Control framework

 the existence of the independent internal control function.

In the internal control functions, which must be independent, are included:

 risk management function, being composed by risk control function on each business line;

 compliance function and

 internal audit function.

The internal control framework is adapted at individual level to the specifics of the activity, to the

complexity and to the related risks, taking into account the organization of the UCB Group.

Internal control afferent framework represent the framework that ensure the development effective and

efficient operations, prudent development of the activity, identification, measurement and mitigation of

risks, credibility of financial and non-financial information reported internally and externally, sound

administrative and accounting procedures, compliance with the applicable legal framework, including

supervisory requirements, as well as the credit institution's internal policies, processes, rules and

decisions.

The internal control framework covers all structures of the Bank as a whole, including the activities of all

operational units, support and control functions.

Internal control functions submit periodically to the  management, official reports on the major

deficiencies identified. These reports include, for any new major deficiency identified, the relevant risks

involved, an impact assessment, recommendations and remedial measures to be taken.

9.2. Corporate Governance subsidiaries (UCFIN and UCLC)

UniCredit Bank S.A., as a parent credit institution, takes into account and balances the interests of all its

subsidiaries and analyses the way in which those interests concur to the common objective and interests

of the whole UniCredit Bank Group, on long term.

9.2.1. UniCredit Consumer Financing IFN SA

Committees subordinated to Supervisory Board are:

 Audit Committee;

 Risk Management Committee.

Committees subordinated to Management Board are:

 Transactions Committee

 Financial Risk Committee

 Projects Committee

 Occupational Health and Safety Committee

 Crisis Committee



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

 Non-Financial Risk Committee (with ICT, Cyber Security and Risk Subcommittee and Reputational

Risk Subcommittee)

9.2.2 UniCredit Leasing Corporation

Committees subordinated to Supervisory Board are:

 Audit Committee;

 Risk Management Committee.

Committees subordinated to Management Board are:

 The Transactions Committee, with: a) the Credit Subcommittee and b) the Special Credit

Subcommittee;

 Crisis Committee

 Health and Safety Committee at Work;

 Remarketing and Asset Management Committee;

 Reputational Risk Committee;

 The Non-Financial Risks Committee with: a) ICT, Security and Cyber Risk Subcommittee and b)

Reputational Risk Subcommittee.

10. Communication calendar for 2025

The Bank prepares every year a financial communication schedule, for information of their shareholders; this

schedule will be published also on Bucharest Stock Market site.

The schedule for 2025 is the following:

2024 local financial results

approval

26.03.2025

Presentation of the separate and consolidated financial results for the 2024 year,

on the official website of the Bank

27.03.2025

Presentation of the half-yearly report and the consolidated financial results for

the first half of 2025, on the official website of the Bank

25.08.2025

11. Members of the Management Board of the Bank, UCFIN and UCLC during 2024

Members of the Management Board of the Bank, the parent company:

1. Mihaela Alina Lupu- Executive President (CEO), Chairman of the Management Board;

2. Andrei Bratu - member of the Management Board (Risks Management), mandate terminated starting

with 04.11.2024;

3. Feza Tan - Executive First Vice-President, (Deputy CEO), member of the Management Board.

4. Antoaneta Curteanu - Executive Vice-President (Retail), member of the Management Board mandate

terminated starting with 04.11.2024;

5. Cengiz Arslan - Executive Vice-President (COO)  mandate terminated starting with 01.09.2024;

6. Mihaela Raluca Popescu-Goglea- Executive Vice-President (CORPORATE).

7. Dimitar Todorov - Executive Vice-President (FINANCE).

Members of the Management Board of UCFIN, the subsidiary:

1. Sorin Dragulin - President of the Management Board;

2. Adela Ticmeanu  Member of the Management Board

Convenience translation in English of the original Romanian version



for the financial period ended 31 December 2024

3. Adrian Nesu  Member of the Management Board

4. Daniel Ghiulea - Member of the Management Board

6. Alexandru Avram  Member of the Management Board.

Members of the Management Board of UCLC, the subsidiary:

1. Daniela Bodirca - President of Management Board, until 30.11.2024;

2. Roxana Bujor - President of Management Board, as of December 1, 2024;

3. Claudia Mocanu - Vice-President of the Management Board;

4. Laura Madalina Gramanschi - Vice-President of the Management Board;

5. Loredana-Elena Nedelcu-Popescu - Vice-President of the Management Board;

6. Daniela Panaitescu - Vice-President of the Management Board, starting 01.12.2016.

In their activity, the Management Board members acted in compliance with specific economic legislation

in force, norms and regulations issued by National Bank of Romania, Group rules and internal rules and

regulations of UniCredit Bank SA.



of the B

In conclusion, the main focus of the Management Board members was on:

 Strong financial standing of the UniCredit Bank Group, including solid capital base and liquidity;

 Prudent risk management, including credit, market and operational risks;

 Strict and effective internal control of activity and operations, carried out in accordance with the

legal provisions in force;

 Value added of all types of businesses, geographies and operations;

 Completion of the targets set in the budget;

 Business sustainability;

 Corporate social responsibility;

 Increase the productivity and efficiently functioning organizational structure of the Bank, focused on

rendering qualitative and competitive banking services and products to the clients of the Bank;

 Increased efficiency of logistical organization and infrastructure;

 Higher automation and systems development, through improvement of banking software

performances, risk management and specialized applications in order to satisfy the b

needs, acting accounting and legal requirements, and enhance decision making process;

 



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

12. Sustainability statement

ESRS 2 - General information

Basis for preparation

BP-1 - General basis for preparation of sustainability statement

bility Reporting Directive

(CSRD) 2022/2464 and local law Order No 1/2024 amending and supplementing Order No 27/2010 of the National Bank of Romania. The sustainability

statement for the reporting year 2024 is not published as a standalone report, but is included as a separate section of the management s report.

The sustainability statement has been prepared on a consolidated basis.

The perimeter adopted for the consolidated sustainability statement is the same as that for the financial statement. All legal entities consolidated line-

by-line in the consolidated financial statements have been included in the sustainability perimeter.

The details of the subsidiaries included in the Sustainability Statement's perimeter are included in the Notes to the consolidated and separate financial

statements, Section 1  Reporting entity. It should be noted that no operational control has been identified for any of the entities consolidated through

equity method. All entities controlled but not consolidated for financial materiality reasons (for further details reference is made to the Notes to the

consolidated accounts, Part A - Accounting policies, Section 3 - Consolidation scope and methods) have been considered as not material also from a

sustainability perspective.

The following subsidiaries are included in the consolidated sustainability statement of UniCredit Group in Romania ("Group"): UniCredit Bank S.A.

("the Bank") as parent company and its subsidiaries, UniCredit Consumer Financing IFN S.A. ("UCFIN"), UniCredit Leasing Corporation IFN S.A

("UCLC") and UniCredit Insurance Broker S.R.L ("UCIB"). Further details are available in the note to the Reporting Entity presented in the Notes to

the consolidated and individual financial statements for the financial year ended December 31, 2024.

UniCredit Bank S.A. ("the Bank") is a credit institution in Romania, part of the UniCredit SpA Group ("UniCredit SpA Group").

both upstream and downstream value chain segments.

-2 Disclosures in

nability impacts, risks and opportunities,

focusing on responsible sourcing, environmental impacts, and social practices. This includes the GHG emissions associated with purchased goods

and services (for example categories 1, 2 and 7- Scope 3) and promoting sustainable procurement practices.

On the other side, the downstream value chain segment mainly covers direct clients and business partners.

The disclosure of information about the value chain as of 31 December 2024 includes quantitative metrics related to Scope 3 GHG emissions and

-3 Material

-1 Description of the processes to identify and

tions, targets).

The Group has not omitted any specific information related to relevant topics, such as intellectual property, know-how or innovation outcomes.

BP-2 - Disclosures in relation to specific circumstances

For Group, the time horizons are classified as:

 Short term: <1 year

 Medium-term: >1-5 years.

 Long-term: 5-10 years or more.

These definitions prove to be coherent and concretely implemented across multiple levels and more details are available under the sections that

cover ESG (Environmental, Social and Governance) strategy, risk management, and governance.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

The definition of medium and long-term horizons is aligned with financial reports, ensuring consistency in the communication. It is also aligned with

our business model, industry standards, and ESG-related risks and opportunities. In particular, the defined time horizons are linked to our strategic

goals, such as the UniCredit SpA Group climate targets (e.g., net-zero emissions by 2050) and transition plans in response to regulatory changes.

Moreover, decision-making procedures are affected by the identified time-horizons, particularly around lending practices, investment strategies, and

ors and other key parties have been engaged

to confirm time horizons, which also align with initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD).

As indicated before, topical standards require to include value chain quantitative data only for some metrics. Such metrics for Group include Scope

-6  

These emissions typically require data directly provided from clients, suppliers, business partners and other counterparties involved with specific

business relationships with the Group. According to the standard, when primary information related to the value chain, after making reasonable efforts,

such information shall be estimated, using proxies, sector data and other information from indirect sources.

The following factors contributed to the Group decision on using estimated data:

 the size of the Group involves many actors for multiple different services offered, and mapping all actors and business relationships (direct

and indirect) is a very complex exercise.

 sector-specific standards with specific references to data and information on the value chain for financial institutions are still not available

 the availability of efficient tools to access and share value-chain information is limited.

 the Group has a large number of counterparties, including not only large international companies but also SMEs, which may not have the

necessary resources to easily and quickly provide the information of interest to the reporting.

 the information on the value chain could not have the qualitative characteristics required by the standard due to the possible lack of

technical readiness of the actor in the value chain.

The Group decided to use estimation processes based on proxies and sector data to estimate the value chain quantitative metrics (scope 3 GHG

emissions) and to consider only first-tier counterparties in mapping its value chain.

In particular, for the Group, the information subject to the estimation process includes scope 3 emissions (both financed and own emissions).

Financed emission have been estimated for Non-Financial Corporations and Households counterparties while excluding data and information on (i)

financial institutions, (ii) other financial corporations and (iii) government and administrative corporations, considering that no reliable data are available

-

information on methodologies.

The Group makes use of the UniCredit SpA Group methodologies for calculations of GHG.

                 ed a range of

techniques to ensure that the reporting aligns with recognized standards while providing transparency about the limitations and estimations involved.

The preparation of value chain metrics follows globally recognized frameworks, ensuring consistency and comparability across reporting periods.

The primary frameworks used included:

Greenhouse Gas (GHG) Protocol for calculating Scope 3 emissions, covering both upstream and downstream activities

Partnership for Carbon Accounting Financials (PCAF) for estimating Scope 3 emissions related to loans and investments in the financial portfolio.

These methodologies provide structured approaches for collecting, estimating and reporting data where direct measurements are not available.

In the absence of primary data from stakeholders, UniCredit SpA Group relies on estimation techniques that involve assumptions based on the best

available information. These techniques include:

Emissions factors: For Scope 3 GHG emissions, as indicated by PCAF and the GHG Protocol, emissions factors from recognized sources are

applied to financial data (e.g. loan amount, expenses, etc.) to estimate carbon emissions. Reference is made to the paragraph -6 Gross Scopes 1,



Proxy data: when client-specific data is missing, proxies are used. For example, carbon intensity averages from similar industries are applied to

estimate emissions;

Scenario analysis: UniCredit SpA Group uses scenario analysis based on future regulatory and environmental changes to estimate potential impacts

for metrics such as climate-related risks. The scenario used are baseline, delayed transition, and energy disorder.

When quantitative metrics and monetary amounts, including upstream and downstream value chain information, cannot be measured directly and can

only be estimated, measurement uncertainty may arise. The use of reasonable assumptions and estimates, including scenario analysis, proxies

and sector data, is an essential part of preparing sustainability-related information and does not undermine the usefulness of that information, provided

that the assumptions and estimates are accurately described and explained.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

At this regard, while the Group strives to use the most accurate data, such as primary data provided directly by clients or suppliers, some metrics rely

on estimates derived from indirect sources, for example data derived from industry averages or secondary sources and proxy data or assumptions

based on broader sectoral information.

Potential estimates are based on the best available information or spot checks in such cases. Data and assumptions used in preparing the

sustainability statements are consistent with the corresponding financial data and assumptions used in the Group consolidated financial

statements.

Information related to the use of estimation and the connected level of accuracy are clearly stated in the reporting and the metrics are subject to

specific controls to ensure accuracy.

To improve the accuracy of value chain metrics, Group engages with clients and suppliers and, where not possible, with external info providers, to

encourage more direct reporting and refine the estimation processes over time. Additionally, at central level, UniCredit SpA Group regularly reviews

and updates the methodologies used, in line with the latest standards and market developments.

By applying these estimation techniques and methodologies, Group ensures that the sustainability metrics provide a meaningful representation of the



Changes in preparation and presentation of sustainability information, resulting comparisons of information with prior periods of prior period material

errors and corrections cannot be presented for reporting periods before the first year of application of ESRS.

These Sustainability Statements do not include additional disclosures stemming from applicable legislations, except for the disclosures pursuant to

Article 8 of Regulation (EU) 2020/852 of the European Parliament (reference is made to Disclosure pursuant to Article 8 of Regulation 2020/852 -EU

Taxonomy Regulation). The only requirements incorporated by reference in the Sustainability Statements are the IRO-1 - Description of the processes

to identify and assess material impacts, risks and opportunities, in particular on Climate topics.

Governance

GOV-1 - The role of the administrative, management and supervisory bodies

                    pan-European

commercial bank, with a unique service offering in Italy, Germany, Central and Eastern Europe and one of the main financial institutions in Romania,

offering high quality services and products for all categories of clients.

The Bank has its registered office located at Bd. Expozitiei 1F, Sector 1, Bucharest, Romania and was founded in 1991 as a Romanian commercial

bank under the name Banca Comerciala Ion Tiriac S.A.. This merged, starting with 01.09.2006, with HVB Bank Romania S.A., resulting in Banca

Comerciala HVB Tiriac S.A. Following the merger by absorption of UniCredit Romania S.A. (the absorbed bank) by Banca Comerciala HVB Tiriac S.A.

(the absorbing bank), the Bank is authorized by the National Bank of Romania to carry out banking activities.

91, with the fiscal

registration code RO361536 and is registered in the banking register with number RB-PJR - 40 - 011/1999, with EUID ROONRC J40/7706/1991

(http://www.bnro.ro/files/d/RegistreBNR/InstitCredit/ban1_raport.html).

UniCredit Bank S.A. directly and indirectly controls the following subsidiaries:

 ides

consumer loans to individual clients. The Bank has held a 50.1% stake in UCFIN since January 2013.

 des

financial leasing services to both individual and corporate clients. Previously an associate entity, UCLC became a subsidiary of the Bank

in April 2014, when the Bank acquired indirect control of 99.95% (direct control of 99.90%). As of December 31, 2022, the Bank's indirect

control increased to 99.98% (direct control of 99.96%), following the absorption merger of UniCredit Leasing Romania SA ("UCLRO") into

UCLC, finalized in June 2015.

  1F, 8th floor, Sector 1, Bucharest, Romania, UCIB acts as an

insurance broker for leasing-related policies for corporate and individual clients. It became a subsidiary of the Bank on December 31, 2020.

The Bank holds 99.98% indirect control through UCLC, which owns 100% of UCIB.

Together, UniCredit Bank S.A. as its parent company and its subsidiaries, UCFIN, UCLC and UCIB are referred to as the UniCredit Group in Romania

(the "Group").

The Management Body has the final and general responsibility for the Bank and is represented by the institutional bodies with administration and

management role corresponding to the dualist administration system, respectively:

 The Bank's supervisory function, represented by the Supervisory Board, which fulfills its role of overseeing and monitoring the decision-

making process



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

 Executive Management, represented by the members of the Executive Board, individuals who exercise managerial functions within the

Bank and are empowered with the day-to-day management of the Bank and are accountable to the Supervisory Board for its fulfillment.

According to the Bank's Constitutive Anct, the Supervisory Board consists of at least 4 (four) and a maximum of 11 (eleven) members, of which a

minimum of 3 (three) independent members. The Board of Directors is composed of at least 3 (three) and a maximum of 9 (nine) members. The

approved composition of the Supervisory Board is 11 members, of which 3 are independent members, and the composition of the Executive Board is

7 members (at the time of this report, there are several pending applications for approval for MB and SB members at the National Bank of Romania)

The composition of the Management Body reflects diversity and an appropriate mix of individuals (in terms of gender, age, geographic origin, and

education or work experience) to meet the Bank's level of growth and supervisory requirements, with no specific criteria requiring its members to be

appointed from among union members. The Management Body consisted, at the end of 2024, of a total of 9 members (5 members at the Supervisory

Board level and 4 members at the Executive Board level), of which 5 were women. Therefore, at Management Body level, the gender ratio was on

average 44.5% men and 55.5% women, in line with the target set for underrepresented gender in the relevant internal policy of at least 40% for

underrepresented gender at the level of the entire Management Body.

The criteria of nationality, education and professionalism are also met. In terms of diversity, it is estimated that some deviations in the sub-criterion

"age" will be recorded in the future composition (given that there are currently a few pending applications for approval of members of the Management

Board/Supervisory Board pending at the National Bank of Romania). However, the Nominating Committee considered the impact of the future

Management Body structure in terms of diversity in terms of educational and professional background as positive, this positive impact being

appropriately balanced against any minor divergences in terms of overall age diversity compared to the ambitions set. In addition, the newly appointed

members will further contribute to the diversity of the Management Board, both nationally, geographically and in terms of experience, thus contributing

to an innovative approach.

The knowledge, skills and experience of the members of the Management Body ( Management Board and Supervisory Board), both individually and

collectively, are diverse and adequate, covering different professional backgrounds in areas such as economics, business, risk, audit, finance, law,

etc.

Each member of the Management Body has adequate and sufficient knowledge, skills and experience to fulfill his/her individual responsibilities in

relation to the role of the position held (according to the Bank's Organizational Chart, in the case of members of the Supervisory Board, respectively

according to the roles on the Supervisory Board and/or its Committees), including through the day-to-day experience demonstrated in his/her

professional activities.

The level of expertise in areas such as financial markets, strategic planning and business management, regulatory framework, risk management,

operation of credit institutions, corporate structure, governance and control, bank accounting system, AML, KYC, financial sanctions and ESG, banking

key performance indicators is consistently high.



 

                    





 

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 

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                 

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 

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





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



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

                   







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                     

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

 











                



 







 



Fraud Risk Management Permanent Working Group 



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version







Operational Risk Permanent Working Group 







Non-Performing Exposure Permanent Working Group 



     



The Group ESG function ensures:

 the development of ESG strategy and policies at the Bank level in a harmonized manner with the UniCredit SpA Group's ESG strategy and

adapted to local markets and legal specificities, and to ensure collaboration to all relevant functions for the efficient, coordinated and

structured implementation, both at the individual level and at the sub-consolidated level, of the ESG strategy, as well as the fulfilment of

the established objectives, following the involvement in this sense, both of the internal decision-makers and of the external partners

 Deployment of ESG Strategy and Standards at local level as overarching structure for local steering

 Local deployment of ESG UniCredit SpA Group projects, impacting Romania, including oversight and implementation of ESG activities,

ESG Transformation, support in the definition of ESG business targets at local level and execution of related monitoring, local competence

point ESG and ESG-related IT Development

 Coverage support on Commercial activities for Environment and Social matters in cooperation with the commercial functions and UniCredit

SpA Group ESG Advisory

 Assess and ensure the business is exploiting the opportunities while at the same time adhering to ESG Product Guidelines





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                







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





 







 

























for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version







The financial statements of Bank which are subject to the legal obligation to audit are audited by a financial auditor - legal entity -, under the conditions

provided by local law. The Audit Committee is responsible for the procedure for the selection of the External Auditor and issues recommendations for

the approval by the general meeting of shareholders of the appointment, remuneration, and dismissal of the External Auditor.

Regarding the composition of the Management Body, at the end of 2024, the Supervisory Board consisted of 5 non-executive members (with the note

that, at the date of this report, the approval process for other members of the Supervisory Board is pending with the National Bank of Romania). The

Executive Director is a member of the Management Board with executive powers.

The members of the Supervisory Board are appointed by the GMS. The members of the Audit Committee are appointed by the Supervisory Board

from among its members.

The appointment process is based on a gender-balanced approach in accordance with applicable regulations and provisions.









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                   













for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

















 Overview and scope of the EU's ESG reporting framework, including CSRD and ESRS;

 Scope and applicability of the materiality assessment as a first step in the publication of CSRD

 Implementation of CSRD

The table below shows for each member of the Supervisory Board the skills and expertise as set out in the theoretical profile.

Knowledge, skills & experience (KSE) mapping - individuals who are of most value-added for the

particular required experience

Pasquale Giamboi

N. Ozelgin

Riccardo Roscini

G. Mazzone

Faik Aikalin

General

Business model/ strategy, including in terms of Group consistency

Banking

Insurance

Asset Management/ Investment services

Business activities

Banking products - Lending to private individuals

Banking products - Lending to corporate

Banking products - Lending to SME clients

Leasing activities

Banking products - Payment services

Banking products - Deposits/ other saving products

Insurance products - Distribution of insurance products (bank assurance)

Mergers & acquisitions

Geographical area

Romanian baking system and macroeconomic environment

Risk management

Risk management frameworks and practices (including risk function organisation, ICAAP & capital

planning)

Stress testing

Internal models

Credit risk

Market risk

Liquidity risk/ funding risk

Operational Risks

Other risks (e.g. reputational, leverage risks)

Recovery and resolution

IT systems/ infrastructure & IT risks

Legal & Compliance

Romanian legal and regulatory framework applicable to financial services

KYC and AML&CTF

Internal control/ internal audit

Set-up of internal control system

Financial reporting & accounting

Prudential reporting

Internal audit

Internal control

Governance

Human resources and remuneration



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Internal governance and administrative organization

Group governance

Corporate governance requirements and related risks specific to the ESG framework

Outsourcing policies & outsourcing

risk





 

  





 



                      



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

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 



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



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 

 

 

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

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 

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for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

                  

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

                  







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

                   

                   



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Convenience translation in English of the original Romanian version





                   

   





         







 

 

 



 

 











 

 

 



GOV-3  Integration of sustainability-related performance in incentive schemes



                 

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

 

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 

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                 

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

for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version



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 

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



 





 



      



 

 

 

 











for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

 To reinforce management commitment to the ESG strategy, sustainability objectives (with a significant weighting of 20%, as detailed below)

are set in line with the areas of responsibility

 Thus, at the local level, the long-term sustainability objective is assigned to the entire population of Group Material Risk Takers (GMRTs),

i.e. employees whose professional activities have a material impact on the risk profile of the institution, up to relevant management roles

 















 

 

 

 

 

 



 

 

 

 



 

 

For the CEO / Deputy CEO, 60% of the bonus is on deferred pay structure over time and subject to additional long-term performance conditions

defined at Group level and covering the three years following the annual performance in 2024 (i.e. from 2025 to 2027).

For the CEO / Deputy CEO as part of the additional long-term performance conditions, the sustainability goal is 20%, primarily aimed at supporting

clients in their green and social transition, while also embedding sustainability and diversity, equity and inclusion (DE&I) ambitions into culture. This

goal includes a specific focus on climate risk through Net Zero commitments.





                   









GOV-4 - Declaration on the due diligence process

The Group's due diligence process is not a standalone, formalised procedure but is fully integrated within its strategic and business model framework.

This integrated approach ensures that the due diligence process is part of the Group's day-to-day operations, particularly in terms of identifying and

managing negative impacts.

Under the 2024  materiality assessment, the Group has identified a list of positive and negative impacts on which it has focused, following the

steps of the  materiality methodology. This list was subject to a detailed assessment by the related management functions and external



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

stakeholders to determine the relevance and materiality of the identified impacts. The results of the assessment were also approved by the

Management Board and acnowledged by the Supervisory Board as detailed above.

According to the table "List of material IROs" (reference to "SBM-3 Material Impacts, Risks and Opportunities and their interaction with business

strategy and business model"), negative material impacts are associated with:

 

 

 

In terms of specific details on the impacts identified are:

 Environmental impacts: Greenhouse gas (GHG) emissions, Resource intensive, Waste generation

 Social impacts: risks related to the protection of customer data, including possible security breaches and loss of customers` data.



Furthermore, for each matter, the Bank has developed specific policies, actions, targets, and metrics (described in the dedicated sections) to effectively

monitor and manage these negative impacts over time. These issues are detailed in the dedicated sections, providing a robust framework for

monitoring and managing long-term negative impacts.

GOV-5 - Risk management and internal controls over sustainability reporting

The introduction of the new ESRS standards on sustainability reporting under the CSRD has led to new and additional requirements for transparency

of information related to the internal control system (ICS) reporting. Ensuring the credibility and accuracy of sustainability data and information subject

to internal and/or external reporting has become essential, including in order to comply with the new requirements of the CSRD, by defining and

implementing an ICS to ensure compliance with sustainability reporting.

The internal control system framework for sustainability issues has been designed by mirroring the existing financial reporting framework adopted by

the parent company and aligning it with the characteristics of CSRD reporting. This approach includes the application of a common methodological

framework, based on the use of a centrally developed, consistent internal control system model inspired by the internationally recognized

methodological standard issued by the Committee of Sponsoring Organization of Treadway Commission (CoSO) and updated in March 2023 by

introducing the "Internal Control over Sustainability Reporting", which is reminiscent of the "Integrated Internal Control over Financial Reporting

Framework" on financial reporting.

The pillars of the sustainability reporting model implemented are:

 Entity-level controls, which are normally structural elements of the control system; specifically, in this context, they relate to the alignment

of governance policies with ESG topics;

 Process-level controls, including description of the organizational model (roles, processes and controls) to produce sustainability reporting

and tests of controls in the performance of operational activities to obtain evidence to assess the effectiveness of the internal control

environment on sustainability reporting. Following the testing of these controls the conclusions obtained are presented to the Board of

Directors for approval. At the same time, in case of identified deficiencies, remedial measures are proposed with clear deadlines for

implementation.

The operational implementation of the adopted model foresees:

 Identifying processes that have a significant impact on sustainability reporting by assessing risk and control, including completeness,

relevance and faithful representation, including the accuracy of the results of estimates, verifiability, understandability and comparability;

 the identification for such processes of first level controls and control owners, formalized in narratives (process descriptions), which also

include the risk and control matrix and any proposed remedial action. Those responsible are primarily responsible for ensuring that the

effectiveness of controls is assessed, highlighting any possible action required to reduce the associated risk levels.

Therefore, each procedure and control is documented, evaluated, tested and validated, and individual managerial responsibility is defined for the

achievement of the activities involved.

The report on the internal control system for Sustainability Reporting, including a description of the findings and any remedial action, and the attestation

signed by the ESG Director and CEO to ensure compliance with the requirements of the regulations, is presented for approval at the Board meeting

at which the consolidated annual financial statements are presented.

Strategy

SBM-1 - Strategy, Business Model and Value Chain



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

As indicated above, the Group is part of a pan-European commercial bank. The Group also operates through its head office in Bucharest and its

network of 169 branches/166 agencies. We serve all customer segments throughout Romania.

The Group is the trusted partner for its clients, responding to increasingly sophisticated financing, advisory, investment and risk mitigation requirements.

For corporate clients, we offer customized solutions in:

 

 

 

 

For individuals, we provide a diversified range of investment and risk mitigation products as well as financing.

For corporate clients, financial institutions and individual customers, we offer payment solutions tailored to their needs, supporting optimal liquidity and

transaction management.

The group's total number of employees is 3,489.

The Group does not currently have significant activity in any of the sectors listed in ESRS2 SBM-1 Strategy, Business Model and Value Chain,

paragraph 40(d) (fossil fuels, chemical manufacturing, controversial weapons, tobacco growing and production), however there are historical

transactions in progress with insignificant values, therefore there are no significant revenues related to such activities.

In order to make a difference and set a new benchmark in the market, ESG principles are integrated into all our activities. At Group level, we are

committed to implementing the ESG framework based on the following objectives:

 

 

 

 

 

As an integral part of the ESG strategy, the ESG Product Guidelines is designed to meet the objective of sustainability as it provides rules to ensure

consistent classification and reporting of ESG financial products and services. The document is periodically revised to modify or include additional

eligible activities and/or criteria based on market trends or business needs and to comply with regulatory requirements.

The ESG Product Guidelines aim to establish a consistent and comprehensive methodology for classifying and reporting ESG product offerings and

to prevent the risks associated with greenwashing and socialwashing. ESG products include different product categories taking into account

environmental, social and governance characteristics and cover all customer segments. The rule specifies the classification rationale, eligibility criteria,

environmental and social requirements as follows:

A. Specific use

 Green financing supports economic activities that contribute substantially to achieving one or more of the six environmental objectives set

out in the EU taxonomy and which meet specific technical screening criteria. Green finance includes loan instruments used to finance or

refinance, in full or in part, projects with specific and well identified objectives that are expected to deliver positive environmental benefits.

The eligibility criteria for labeling loans with a specific use of proceeds as "green" are based on the EU taxonomy and linked to the applicable

Sustainable Development Goals (SDGs).

 Transition financing supports business transition to a green or low-carbon economy. It can only be provided to companies that are

committed to reducing their carbon footprint or achieving net-zero emissions targets and that are making the necessary investments to

reach these targets. We are considering three distinct categories:

o Loans to companies operating in Net Zero sectors, committed to decarbonization targets on the basis of a transition plan and

not yet fully aligned to them, carrying out the economic activities listed in the Green Financing Criteria section and meeting the

related eligibility criteria.

o Loans to companies (including companies operating in Net Zero sectors, committed to achieving decarbonization targets based

on a transition plan and not yet fully aligned with them), which are carrying out Transition Economic Activities in the EU taxonomy

listed under Transition Economic Activities in the ESG Product Guidelines and meet the related eligibility criteria.

o Loans granted to companies (including companies operating in Net Zero sectors committed to achieving decarbonization targets

based on a transition plan and not yet fully aligned with them), which carry out economic activities listed in the Green Financing

Criteria section aligned to the EU Taxonomy Transition Economic Activities listed in the ESG Product Guidelines but do not meet

the related eligibility criteria.

 Social Financing, based on UniCredit SpA Group's current Social Taxonomy, aims to provide access to financial services for vulnerable

groups and support companies to become more socially oriented. The social finance products of the ESG Product Guidelines support

individuals and micro-enterprises with sustainable business projects that may be excluded from traditional banking offerings, as well as



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

companies and organizations that promote projects and initiatives that, in addition to generating an economic return, have positive, tangible

and measurable social impact objectives. The social finance perimeter consists of 4 categories: inclusive finance, impact finance, social

housing and high social impact lending.

B. General purpose

 Sustainability Linked Loans, any type of financial instruments and/or contingent facilities that incentivize the client's achievement of

ambitious and pre-determined sustainability performance targets. Any type of financial instruments and/or contingent facilities (such as

loans, bonds, derivative instruments, revolving facilities, trade finance, supply chain finance, working capital programs, guarantees and

letters of credit) that incentivize the achievement of ambitious and predetermined sustainability performance targets by customers. Based

on the Loan Market Association's (LMA) Sustainability-linked Loan Principles (SLLP), sustainability performance is measured through key

performance indicators (KPIs) and the setting of sustainability performance targets (SPTs), which allow the measurement of improvements

in the sustainability profile of clients.

The Group also monitors the risk of greenwashing and social washing in communications. In the ESG Product Guidelines we include the main risks

for Marketing and Communications activities in promoting ESG products, services and initiatives.

Strategy that relates to sustainability matters, value chain and business model

Above all, the ESG strategy supports the fulfillment of the Group's mission to empower communities to progress. We have a principles-based

approach that guides our actions, enabling us to embed sustainability into what we do, while constantly adapting our strategy to the changing external

context.



   



Our principles: As mentioned, our ESG strategy is based on a set of core principles aligned to our group values. These principles guide everything

we do, ensuring that sustainability is embedded in all aspects of our operations:

 Integrity: We hold ourselves to the highest possible standards, ensuring that we always do the right thing for our customers and

communities.

 Ownership: We are fully committed to helping support our customers in a fair and just transition to a sustainable future.

 Caring: We respect and balance the perspectives and priorities of all stakeholders, ensuring that these are reflected in our work and

decision-making processes.

These principles form the foundation of our approach to Environmental, Social, and Governance (ESG) initiatives, supporting the fulfillment of our

ambition to lead by example in Empowering Communities to Progress.

Goals: We are constantly evolving our approach to ESG target-setting, driven by regulatory changes and market forces. This has led us to set ESG

penetration targets to create a transparent and meaningful view of our ESG performance. Furthermore, we work to align our lending portfolio with our

net-zero targets, as part of our commitment to supporting the global transition to a sustainable future.

Strategic Levers:

 Championing Social: we place a strong emphasis on supporting communities, people and society, striving to generate long-term social

value through initiatives that support and uplift those around us.

 



 



Enablers:

 Enriched client offering: expanding and diversifying our portfolio of products and services

 

 

 

Our integrated and sustainable business model is based on local excellence, inspired by our principles and values. The Group serves its customers

through its branches, covering individuals and microenterprise customers respectively small, medium and large corporations, offering high quality

products and services on the Romanian market.

While customers access services through the branch network and gradually through digital channels, our extensive offering, developed to meet their

needs, is supported by product structures, offering best-of-breed solutions, developed internally within UniCredit SpA Group or through our dynamic

ecosystem of trusted partners.

Corporate solutions



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Our inherent strengths are an extensive corporate client base, focused on increasing the share of small and medium sized enterprises by leveraging

our network, and a unique cross-border positioning (UniCredit SpA Group-wide) that allows us to support clients in their commercial and growth

ambitions.

Solutions for Individual Customers

On the retail side, we differentiate ourselves through our extensive offering of high-quality products and services, strong partnerships with industry

leaders, and our ability to provide clients with access to innovation and financial education. These strengths are underpinned by a diversified range of

products, enhanced with onemarkets' unique onemarkets investment fund offering and partnership with Allianz.

Payment solutions

Our inherent strengths are our unique pan-European footprint and cross-border positioning, the full range of transaction and payment products

available locally, our high product expertise, our payment DNA and advanced technology for data utilization. We have also entered into an innovative,

multi-market partnership with Mastercard.

Understanding how the company's principles and values, strategic pillars and business model are interconnected and interact is critical to the proper

development of our value creation process over time. This means being able to detect changes in the external environment, including evolving

stakeholder concerns, in order to find internal responses to meet expectations, generate value and make the organization more resilient. We take into

account the constantly evolving market context in which we operate (including macro-economic, industry and regulatory trends) and the changing

needs of our stakeholders. We use our knowledge of the external context to manage risks and capture opportunities effectively while maximizing the

value we create through the successful execution of our strategy.

In this process, listening to stakeholders is of utmost importance. Listening to their needs and expectations can guide us in making the right decisions

on our offer of responsible lending, savings, payments and investment products, enabling individuals to improve their quality of life and financial

stability. We also provide finance to small, medium and large enterprises and help finance transition plans and the development of key sectors,

contributing to economic growth, job creation and innovation.

Therefore, the core of our business is to support clients and stakeholders in managing their environmental and social challenges and financing their

investments for a sustainable future.

The Group's value chain can be divided into two main segments: upstream and downstream. These represent the different stages of activities and

relationships that contribute to the Bank's value creation process (reference is made to "BP-2 Disclosures in relation to specific circumstances" for

specification of reasonable efforts).

The Group's upstream value chain consists of the inputs and activities that enable the Bank to deliver its products and services. It includes:

 Capital Providers, such as customer deposits, interbank loans or capital market funding. These funds are the main input for lending and

investment operations;

 Vendors, such as technology vendors, for core functions such as transaction processing, Customer Relationship Management (CRM),

Risk Management and Compliance; Data vendors, as banks rely on third-party data providers for credit assessments, market intelligence

and customer profiling to make informed decisions on lending, investment and risk management;

 Regulators and compliance entities: banks must operate within strict regulatory frameworks. Inputs from regulatory bodies (e.g. central

banks, financial authorities) shape how banks manage risks, capital adequacy, and liquidity.

The Group's downstream value chain comprises the distribution and delivery of the Bank's services to end-users. It includes:

 Retail customers: individuals who use the bank's products such as savings accounts, loans, mortgages and credit cards;

 Corporate clients: companies and institutions that use corporate banking, lending, treasury management and advisory services;

 Business partners: the Group works with fintechs, payment processors and other service providers to offer better financial solutions to

customers as well as asset management and insurance companies.

The Group acts as an intermediary in the value chain, connecting capital providers (depositors, markets) with borrowers and investors. It also acts as

a service provider for companies and individuals, offering financial solutions that help manage money, investment and risk. The bank's position in the

value chain is unique as it facilitates the flow of capital, manages risk and supports economic activity.

The Group creates value through a well-coordinated value chain, where upstream inputs enable efficient operations and risk management, while

downstream relationships generate revenue through customer acquisition, loyalty and service innovation. The Bank's position as an intermediary and

service provider enables it to balance risk, efficiency and customer needs, ensuring long-term profitability and market competitiveness.

SBM-2 - Stakeholder interests and views

General considerations

We are firm in our commitment and take decisive action, striving to understand stakeholder expectations. These contribute not only to financial success,

but also to supporting our customers through the transition, strengthening our social responsibility and, from the perspective of our role as a bank,

integrating our social mission into our day-to-day activities and operations.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

For us, close relationships with key stakeholders create long-term value and support individual and collective growth. Listening to all stakeholders is

central to the way we work. We constantly seek their feedback to strengthen stakeholder relationships and improve how we respond to their needs.

We encourage our stakeholders to share their views and concerns and strive to respond quickly and accurately. Collecting and analyzing stakeholder

suggestions not only provides us with valuable information about their needs, but also helps us to manage the risks and opportunities we face and

support our efforts to achieve long-term sustainability.

Our key stakeholders include customers, colleagues, shareholders, regulators and communities. We use a wide range of stakeholder engagement

tools, specifically:

 Customers: customer satisfaction and brand reputation assessments, market research, mystery shopping, instant feedback and focus

groups;

 Colleagues: Internal customers' perceptions of UniCredit products and services as well as collecting suggestions on various

improvements aimed at streamlining processes (e.g. Internal system improvements, process simplification);

 Regulators: bilateral and group meetings, calls;

 Communities: Surveys; Social media.

We have developed several major initiatives to ensure that we put our stakeholders at the center of our thinking and processes. For example, to

engage our customers, our strategic plan uses Net Promoter Score (NPS) as a key performance indicator for relationship surveys and Satisfaction

Score (SAT) for transactional surveys. The NPS is fundamental to understanding how well customers recommend and experience our banking services

and this guides our interventions. In terms of the SAT, starting with key customer journeys and touch points, it is measured, monitored, analyzed and

discussed on a regular basis and any written suggestions from customers on specific areas are continually reviewed.

With regulators, the Group communicates proactively. As part of the UniCredit SpA Group, it participates in the European and international commitment

to strengthen the EU sustainable finance framework, increase its usability and facilitate the transition to a low-carbon economy.

Materiality analysis remains a fundamental tool to consult stakeholders, support our business strategy and contribute to long-term value creation. It

provides a dynamic and forward-looking view on ESG topics, allowing us to regularly take action on emerging risks and relevant issues.

Materiality analysis also helps us to identify and address the issues that are most important to our stakeholders, including emerging risks. In our

materiality analysis, we consider a variety of sources to ensure that we include all topics in the banking sector that are important to our stakeholders.

We assess sustainability impacts, risks and opportunities (IROs) for all environmental, social and governance issues, topics considered material from

a  materiality perspective: impact materiality and financial materiality.

Recognizing stakeholder expectations and effectively managing the related risks and opportunities are key when it comes to developing strategies to

increase positive impacts and minimize negative impacts - essential for long-term value creation.

Our objective is to understand stakeholders' views and interests and align them with our strategic approach. At the heart of the approach is a

commitment to promote respect for human rights, as outlined in the UniCredit SpA Group's, and by extension the Group's, Commitment to Human

Rights. This commitment extends to all those affected by our business, including employees, customers, suppliers and local communities

Specifically, during 2023 and 2024, we conducted comprehensive surveys to consult with internal and external stakeholders to gather opinions,

expectations and priorities relevant to our ESG strategy. This process enabled us to identify material themes and better align our strategic direction

with market and regulatory requirements.

The consultation included a wide range of stakeholders, including employees, customers (individuals, SMEs and corporates), regulators and

supervisors, business associations, business associations, supranational organizations, NGOs, media, suppliers and partners. Each of these groups

provided valuable insights on sustainability, governance and social responsibility, contributing to the development of better informed initiatives tailored

to the real needs of society and business.

We have also organized a series of internal workshops with experts from relevant departments, including Business, Risk Management, Finance and

ESG, to deepen our understanding of the strategic and operational impact of the identified themes. In addition, specific interactions were conducted

through questionnaires with UniCredit employees and corporate clients to ensure the fullest possible validation of the priority directions identified and

to accurately reflect the interests of all stakeholder groups in our ESG strategy.

By adopting a strategic approach, we carefully collect and analyze the views and concerns shared by our stakeholders and promptly address their

comments. Long-term value creation depends not only on an awareness of our own impact on our business, but also on a clear understanding of our

stakeholders' needs

The Board is informed of the relevant results of our stakeholder consultation activities. During the  materiality assessment, the Management

Board carefully considered the suggestions and information provided by relevant external stakeholders on the IRO. By integrating different viewpoints,

a comprehensive understanding of what could be considered material and relevant to the Group's long-term strategy and sustainability efforts was

ensured.

SBM-3 - Significant Impacts, Risks and Opportunities and their interaction with Strategy and Business

Model



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

                   





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



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 

 

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 

 

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                



 

 



                     





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Own workforce

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

for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

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







                    



 

 



Maintaining a proactive and regular dialog with our workforce reinforces UniCredit's collaborative spirit. We have a history of consistent engagement

with our people both nationally within Group and internationally within the UniCredit SpA Group, and this has enabled us to manage the many market

challenges we have faced over the years. At the heart of our efforts to maintain effective and mutually beneficial social dialog is our unwavering

commitment to respect local laws and the terms and conditions of collective agreements, including the rights of employees to exercise their freedom

of association and to bargain collectively.









Workers in the value chain















 

 

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for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

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

Business conduct























 

 



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



  









In the fourth quarter of 2023, the Group commenced a materiality assessment exercise; this was a preliminary exercise based on the GRI standards

framework and was not aligned to the new requirements of the CSRD Directive. The  materiality assessment carried out later in 2024 differs

significantly and was carried out in line with the new framework set by the European ESRS. The material topics in 2024 have been improved and

evolved, as have the IROs related to the identified materials.

In addition, no Group specific IROs have been identified for the 2024 reporting period.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

List of Material IROs

ESRS TOPIC

SUB-TOPIC

SUB-SUB-TOPIC

IROS

TYPE OF IROS

TYPE OF

IMPACT

POSITIVE/NEGATIVE

OWN

OPERATIONS/VALUE

CHAIN

VALUE

CHAIN

LOCATION

TIME-

HORIZON

E1 Climate

Change

Climate change

mitigation (own

operations/value

chain)

Climate change

adaptation (own

operations/value

chain)

Energy (own

operations)

N/A

Fostering awareness and commitments

related to climate change and

accelerating the green transition through

the support towards energy efficiency

initiatives and renewable sources

financial projects across counterparties

for the next years.

IMPACT

Actual

Positive

Value chain

Across

Medium-

term

Generation of direct and indirect energy

GHG emissions (Scope 1 and 2).

IMPACT

Actual

Negative

Own operations

Short-term

Generation of indirect GHG emissions

produced in the value chain as a result

of the business activities performed by

actors in the downstream value chain

(Scope 3 - Only 15 category).

IMPACT

Actual

Negative

Value chain

Downstream

(clients)

Short-term

Generation of indirect GHG emissions

produced in the value chain as a result

of the business activities performed by

actors in the upstream and downstream

value chain (Scope 3 - All categories

except financed).

IMPACT

Actual

Negative

Both

Across

Short-term

Investments in the implementation of

green/environmental projects

OPPORTUNITY

Both

Downstream

(Clients)

Medium-

term

Creation of new products and services

to support clients in their transition

journey towards their decarbonization

targets

OPPORTUNITY

Both

Downstream

(Clients)

Medium-

term

Invest in/finance green tech (start-ups)

and also access new markets (e.g.,

carbon emissions trading)

OPPORTUNITY

Both

Across

Medium-

term

Physical Risk

Credit risk: impact on credit risk portfolio



creditworthiness due to damage, caused

by acute and chronic events, to the



sites and decrease in the recoverable

amount/market values of collateral due

to damage, caused by acute and chronic

events

RISK

Own operations

Medium-

term

E3 Water and

marine

resources

Water

Water consumption

Water withdrawals

Fostering awareness and commitments

related to water consumption,

withdrawal by UniCredit clients.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term

Biodiversity

and

ecosystems

Direct impact

drivers of

biodiversity loss

Impacts on the

extent and

condition of

ecosystems

Climate change

Land-use change, fresh

water-use change and

sea-use change

Example: Land

degradation

Creation and promotion of innovative

financial products/services focused on

green and sustainable investments,

thereby contributing to the protection of

natural capital, biodiversity and

conservation of land use

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

E5 Resource

use and

circular

economy

Resources

inflows,

including

resource use

Resources

outflows related

to products and

services

Waste

N/A

Contribution to high inflow and use of

resources, and to high waste by sectors

such as construction, power generation,

manufacture, and waste-intensive

sectors in which Unicredit clients

operate.

IMPACT

Actual

Negative

Value chain

Downstream

(clients)

Short-term

Fostering awareness and commitments

related to waste production and waste

management from UniCredit clients.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Continued: List of Material IROs

ESRS TOPIC

SUB-TOPIC

SUB-SUB-TOPIC

IROS

TYPE OF IROS

TYPE OF

IMPACT

POSITIVE/NEGATIVE

OWN

OPERATIONS/VALUE

CHAIN

VALUE

CHAIN

LOCATION

TIME-

HORIZON

S1 Own

workforce

Working

conditions

Work-life balance

Promotion of employee well-being

through the implementation of dedicated

well-being activities and benefits within a

healthy and stimulating working

environment.

IMPACT

Actual

Positive

Own operations

Medium-

term

Becoming an employer of choice with

widespread diversity, a culture of

inclusion and concrete work-life balance

solutions which encompass a new,

flexible approach

OPPORTUNITY

Own operations

Short-term

Equal treatment

and

opportunities

for all

Employment and inclusion

of persons with disabilities

Measures against violence

and harassment in the

workplace

Gender equality and equal

pay for work of equal value

Diversity

Short-term

Working

conditions

Secure employment

Adequate wages

Social dialogue

Freedom of association,

the existence of work

councils and the

information, consultation

and participation rights of

workers

Collective bargaining,

including rate of workers

covered by collective

agreement

Positive contribution to the objectives of

ensuring equal opportunities, secure

employment, generation of quality

employment, the payment of adequate

wages also through the promotion of

social dialogue, collective bargaining

agreements and workers' associations.

IMPACT

Actual

Positive

Own operations

Medium-

term

Equal treatment

and

opportunities

for all

Gender equality and equal

pay for work of equal value

Medium-

term

Training and skills

development



and professional development activities,

general and technical programmes, also

linked to personalised growth and

evaluation objectives (e.g. career

development plans).

IMPACT

Actual

Positive

Own operations

Medium-

term



through the implementation of efficient

training programs, anticipating future

trends

OPPORTUNITY

Own operations

Short-term

Ensure a guarantee transparent

performance review systems and

professional growth plans for the

Group's entire population, allowing all

employees to work to the best of their

abilities

OPPORTUNITY

Own operations

Short-term

Employment and inclusion

of persons with disabilities

Contribution to the development of

young talents through partnerships with

national and international Universities,

collaborations with communities in the IT

and tech sector, often with a focus on

women and creation of networks on

several diversity traits.

IMPACT

Actual

Positive

Own operations

Medium-

term

Diversity

Medium-

term

Respect for diversity and promotion of

an inclusive corporate climate through

anti-discrimination activities and

corporate initiatives.

IMPACT

Actual

Positive

Own operations

Medium-

term

Measures against violence

and harassment in the

workplace

IMPACT

Actual

Positive

Own operations

Medium-

term

Other work-

related rights

Privacy

Increase in digital skills, knowledge and

opportunities of employees.

IMPACT

Actual

Positive

Own operations

Medium-

term



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Continued: List of Material IROs

ESRS TOPIC

SUB-TOPIC

SUB-SUB-TOPIC

IROS

TYPE OF IROS

TYPE OF

IMPACT

POSITIVE/NEGATIVE

OWN

OPERATIONS/VALUE

CHAIN

VALUE

CHAIN

LOCATION

TIME-

HORIZON

S2 Workers in

the value

chain

Other work-

related rights

Child labour

Forced labour

Awareness and dissemination of the

culture of ethics and human rights (child

and forced labour) by business partners

and other stakeholders increases

responsibility and fair practices across

value chains.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term

S3 Affected

communities

Communities'

economic,

social and

cultural rights

Adequate housing

Adequate food

Contributions to various social causes

with positive socioeconomic impacts

such as education, health, and

community development programmes.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term

Security-related impacts

Improving access to credit and

disseminating financial culture in the

communities, with a focus on supporting

younger and more vulnerable and/or

low-income groups through dedicated

products and services in order to

enhance economic development and

investor confidence.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term

Adequate housing

Adequate food

Security-related impacts

Strategic community partnerships,

collaborations with local organisations,

industry and professionals' associations

and community groups to create

sustainable and impactful programmes.

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

Improvement of relationships /

consolidation of positioning within

territories and communities of reference

through the promotion of initiatives of

financial inclusion targeting vulnerable

groups.

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

Establish and promote employee

volunteering programmes that

contribute to the well-being and

development of local communities and

support associations and projects in the

area.

OPPORTUNITY

Value chain

Downstream

(Clients)

Short-term

Communities'

civil and

political rights

Freedom of expression

Increase in market share through the

expansion of product offerings with

positive social impact, such as those

related to the third sector.

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

Opportunities for the Bank to gain an

improved image among competitors and

attract socially conscious investors, if it

is able to anticipate and react to political

and societal changes.

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Continued: List of Material IROs

ESRS TOPIC

SUB-TOPIC

SUB-SUB-TOPIC

IROS

TYPE OF IROS

TYPE OF

IMPACT

POSITIVE/NEGATIVE

OWN

OPERATIONS/VALUE

CHAIN

VALUE

CHAIN

LOCATION

TIME-

HORIZON

Consumers

and end-users

Information-

related impacts

for consumers

and/or end-

users

Privacy

Creation of a long-term relationship with

customers through a strong and safe

ICT systems

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

Privacy

Breach and loss of customer data and

poor cybersecurity management.

IMPACT

Potential

Negative

Value chain

Downstream

(Clients)

Medium-

term

Privacy

Operational risk: Risk of operating

losses due to unauthorized access to

customer data (data Breach) with the

purpose of obtaining a personal

advantage and due to cyber attacks

RISK

Own operations

Privacy

Reputational risk: failure to meet the

consumers and end-

to guarantee the customers' data

integrity that may lead to negative

impacts

RISK

Own operations

Privacy

Freedom of expression

Access to (quality)

information

Ensure the UniCredit transformation of

the distribution and production model,

making it more sustainable through

greater digitalisation, the creation of

new technologies, the access to

information, the adoption of cloud

solutions, the use of AI.

IMPACT

Potential

Positive

Value chain

Downstream

(clients)

Medium-

term

Privacy

Freedom of expression

Expansion of market shares and

improvement of retention thanks to the

implementation of solutions, products

and digital / innovative services

OPPORTUNITY

Value chain

Downstream

(Clients)

Medium-

term

Privacy

Access to (quality)

information

Enhance client loyalty and retention

through the optimization of corporate

assets in terms of privacy and data

security and quality information

OPPORTUNITY

Value chain

Downstream

(Clients)

Short-term

Freedom of expression

Access to (quality)

information

Informed decisions to customers

through transparent, neutral and fair

advice, also providing the possibility to

express their feedbacks.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term

Social inclusion

of consumers

and/or end-

users

Responsible marketing

practices

Enhancement of relationships with

clients and shareholders through clear

and transparent communication

OPPORTUNITY

Actual

Value chain

Downstream

(clients)

Short-term

Non-discrimination

Access to products and

services

Increased and improved customer

satisfaction and end-users experience

by meeting their expectations.

IMPACT

Actual

Positive

Value chain

Downstream

(clients)

Medium-

term



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Continued: List of Material IROs

ESRS TOPIC

SUB-TOPIC

SUB-SUB-TOPIC

IROS

TYPE OF IROS

TYPE OF

IMPACT

POSITIVE/NEGATIVE

OWN

OPERATIONS/VALUE

CHAIN

VALUE

CHAIN

LOCATION

TIME-

HORIZON

G1 Business

conduct

Corporate

culture

N/A

Contribution to the creation of an

environment of fair competition,

encouraging businesses to compete based

on innovation and efficiency rather than

aggressive tax practices and reducting

national tax evasion.

IMPACT

Actual

Positive

Value chain

Upstream

Medium-

term

Maximum generation of value and its

distribution to shareholders/stakeholders

IMPACT

Actual

Positive

Both

Across

Medium-

term

Protection of

whistle-blowers

N/A

Awareness and dissemination of the

culture of ethics, by management,

employees, business partners and other

stakeholders in own operations.

IMPACT

Actual

Positive

Own operations

Medium-

term

Management of

relationships

with suppliers

including

payment

practices

N/A

Ensure solid relationships with its suppliers

and respect of agreed terms

IMPACT

Actual

Positive

Value chain

Upstream

Medium-

term

Improvement in the quality of products and

services purchased through a more

sustainable supply chain and certified

products (incorporating minimum

environmental criteria)

OPPORTUNITY

Actual

Both

Upstream

Medium-

term

Corruption and

bribery

Prevention and detection

including training

Incidents

Prevent the possible events of corruption

and/or bribery through the training activities

involving employees, top management and

other relevant stakeholder

IMPACT

Actual

Positive

Value chain

Upstream

Operational Risk: The risk of money

laundering, sanctions violations, bribery

and corruption, and KYC failure

RISK

Both

Across

Medium-

term

Enhancement of reputation through

investing in the development of innovative

tools to manage, monitor and prevent

corruption and bribery

OPPORTUNITY

Both

Medium-

term

Impact, risk and opportunity management

IRO-1 - Description of the process for identifying and assessing significant impacts, risks and

opportunities







The Group's  materiality assessment began with an initial phase of understanding the context in which the Group operates. In particular, the

Group conducted internal and external analysis, identifying dependencies, resources and mapping affected stakeholders. During this phase, external

stakeholders were actively involved through various engagement channels and methods (questionnaires, workshops, forums, interviews, surveys,

etc.) and their perceptions were taken into account throughout the process.

In parallel with the context analysis, the Group examined the list of issues on ESRS 1 - AR 16, reconciling the themes, sub-themes and sub-sub-

themes with the results obtained in the first phase. Then, each impact in the long list was associated with the location of the event (own operations

and/or value chain), the time horizon (short, medium or long term), the strategic actors involved (e.g. employees, customers, shareholders, etc.).

In the impact assessment, the Group considered the gross impact (i.e. before any mitigation action); this was done to provide sustainability data users

with information that allows to distinguish between gross impacts and impact management (i.e. policies, actions and targets). In addition, an impact

was assessed without considering other impacts; therefore, positive impacts on the environment and people cannot be offset against negative impacts.

In assessing the potential impact, the Group considered the effect of technical or other measures to avoid or mitigate the impact in the future. The

Group also considered its in-built due diligence approach and results when assessing adverse impacts. For more information on the due diligence

process, please refer to section GOV-4 - Statement on the due diligence process.

The process considered the most relevant stakeholders along the entire value chain, analyzing factors such as the Group's stakeholder exposure and

the specific industry in which it operates. In doing so, a comprehensive understanding of the sectors most exposed to potential risks has been possible,

ensuring that all critical elements are thoroughly assessed to provide a clear picture of the vulnerabilities present in different industries.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version



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











 

 



 

                 



 



  



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               

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





                    



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for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

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





















     





                 











In relation to the climate change theme, economic capital and conditional loss (considering ICAAP scenarios) and expected credit loss were used; while for the other environmental themes, exposure to very high impact

counterparties was considered; for the social themes and business themes, historical operational losses and reputational risk economic capital are considered.

Among the sources used to support the analysis and evidence to assess several risks related to the Group's material themes, ICAAP 2023 [...] was considered for the climate change, social and governance themes, also

taking into account some updates from June 2024, as well as the results of the IFRS9 ECL models.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version







ESRS reporting requirements under the corporate sustainability statement

IRO-2 - List of information requirements







  











for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

All the datapoints deriving from other EU legislation

DISCLOSURE REQUIREMENT AND RELATED DATAPOINT

MATERIAL/NOT MATERIAL

PARAGRAPH

ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)



ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)



ESRS 2 GOV-4 Statement on due diligence paragraph 30 ESRS 2 SBM-1 Involvement in

activities related to fossil fuel activities paragraph 40 (d) i



ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii



ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40

(d) iii



ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco

paragraph 40 (d) iv



ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14

material



ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)

material



ESRS E1-4 GHG emission reduction targets paragraph 34

material



ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high

climate impact sectors) paragraph 38

material



ESRS E1-5 Energy consumption and mix paragraph 37

material



ESRS E1-5 Energy intensity associated with activities in high climate impact sectors

paragraphs 40 to 43

material



ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44

material



ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55

material



ESRS E1-7 GHG removals and carbon credits paragraph 56

not material



ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks

paragraph 66

material

subject to phase in

ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk

paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk

paragraph 66 (c).

material

subject to phase in

ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency

classes paragraph 67 (c).

material

subject to phase in

ESRS E1-9 Degree of exposure of the portfolio climate-relate to opportunities paragraph

material

subject to phase in

ESRS E2-4 Amount of each pollutant listed in Annex E-PRT II of the Regulation

(European Pollutant Release and Transfer Register) emitted to air, water and soil,

paragraph 28

not material



ESRS E3-1 Water and marine resources paragraph 9

material (only water)



ESRS E3-1 Dedicated policy paragraph 13

not material



ESRS E3-1 Sustainable oceans and seas paragraph 14

not material



ESRS E3-4 Total water recycled and reused paragraph 28 (c)

not material



ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph

not material



ESRS 2- IRO 1 - E4 paragraph 16 (a) i

not material



ESRS 2- IRO 1 - E4 paragraph 16 (b)

not material



ESRS 2- IRO 1 - E4 paragraph 16 (c)

not material



ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)

material



ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) ESRS E4-2

Policies to address deforestation paragraph 24 (d)

material





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

DISCLOSURE REQUIREMENT AND RELATED DATAPOINT

MATERIAL/NOT MATERIAL

PARAGRAPH

ESRS E5-5 Non-recycled waste paragraph 37 (d)

not material



ESRS E5-5 Hazardous waste and radioactive waste paragraph 39

not material



ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)

not material



ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)

not material



ESRS S1-1 Human rights policy commitments paragraph 20

material



ESRS S1-1 Due diligence policies on issues addressed by the fundamental International

Labor Organisation Conventions 1 to 8, paragraph 21

material



ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph

material



ESRS S1-1 workplace accident prevention policy or management system paragraph 23

material



ESRS S1-3 grievance/ complaints handling mechanisms paragraph 32 (c)

material



ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph

88 (b) and (c)

not material



ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)

not material



ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)

material



ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)

material



ESRS S1-17 Incidents of discrimination paragraph 103 (a)

material



ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph

104 (a)

not material



ESRS 2- SBM3 - S2 Significant risk of child labour or forced labour in the value chain

paragraph 11 (b)

material



ESRS S2-1 Human rights policy commitments paragraph 17

material



ESRS S2-1 Policies related to value chain workers paragraph 18

material



ESRS S2-1Non-respec of UNGPs on Business and Human Rights principles and OECD

guidelines paragraph 19

material



ESRS S2-1 Due diligence policies on issues addressed by the fundamental International

Labor Organisation Conventions 1 to 8, paragraph 19

material



ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream

value chain paragraph 36

material



ESRS S3-1 Human rights policy commitments paragraph 16

material



ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and

OECD guidelines paragraph 17

material



ESRS S3-4 Human rights issues and incidents paragraph 36

material



ESRS S4-1 Policies related to consumers and end-users paragraph 16

material



ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines

paragraph 17

material



ESRS S4-4 Human rights issues and incidents paragraph 35

material



ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)

not material



ESRS G1-1 Protection whistle-blower of paragraph 10 (d)

not material



ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)

material



ESRS G1-4 Standards anti-corruption of and anti- bribery paragraph 24 (b)

material





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-

TOPIC

DISCLOSURE REQUIREMENT

PAGE/PARAGRAPH

General

disclosure



BP-1 General basis for preparation of sustainability

statements



BP-2 Disclosures in relation to specific circumstances



GOV-1 The role of the administrative, management

and supervisory bodies



GOV-2 Information provided to and sustainability

matters addressed by the





supervisory bodies



GOV-3 Integration of sustainability-related

performance in incentive schemes



GOV-4 Statement on due diligence



GOV-5 Risk management and internal controls over

sustainability reporting



SBM-1 Strategy, business model and value chain



SBM-2 Interests and views of stakeholders



SBM-3 Material impacts, risks and opportunities and

their interaction with strategy and business model



strategy and business model



IRO-1 Description of the processes to identify and

assess material impacts, risks and opportunities



IRO-2 Disclosure Requirements in ESRS covered by







for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-

TOPIC

DISCLOSURE REQUIREMENT

PAGE/PARAGRAPH

Environment

ESRS E1 Climate

change

Climate change mitigation

ESRS 2 GOV-3 Climate performance in incentive

schemes



E1-1  Transition plan for climate change

mitigation



ESRS 2 SBM-3  Material IROs and interactions

with SBM



ESRS 2 IRO-1  Description and assessment of

IROs



E1-2 Policies



E1-3 Actions



E1-4 Targets



E1-5-Energy Consumption and mix



E1-6 Gross Scopes 1, 2, 3 and total GHG

emissions



E1-7 GHG Removals

(only specification of not

applicability)

E1-8 Internal carbon pricing

(only specification of not

applicability)

E1-9 Anticipated financial effects from material

Subject to phase-in

Climate change adaptation

ESRS 2 SBM-3  Material IROs and interactions

with SBM



ESRS 2 IRO-1  Description and assessment of

IROs



E1-2 Policies



E1-3 Actions



E1-4 Targets



E1-9-Anticipated financial effects from material

Subject to phase-in

Energy

ESRS 2 SBM-3  Material IROs and interactions

with SBM



ESRS 2 IRO-1  Description and assessment of

IROs



E1-2 Policies



E1-3 Actions



E1-4 Targets



E1-5-Energy Consumption and mix



E1-9-Anticipated financial effects from material

Subject to phase-in

ESRS E3 Water and

marine resources

Water - Water consumption

ESRS 2 IRO-1 Description and assessment of

IROs



E3-1 Policies



E3-2 Actions



E3-3 Targets



Water - water withdrawal

ESRS 2 IRO-1 Description and assessment of

IROs



E3-1 Policies



E3-2 Actions



E3-3 Targets





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Environment

ESRS E4 Biodiversity and

ecosystems

Direct impact drivers of biodiver

sity loss

E4-1 Transition plan

ESRS 2 SBM-3 Material impacts, risks and opportunities and

their interaction with strategy and business model

ESR2 IRO-1 Description and assessment of IROs

E4-2 Policies

E4-3 Actions

E4-4 Targets

Direct impact drivers of biodiver

E4-1 Transition plan

sity loss

ESRS 2 SBM-3 IROs and their interaction with strategy and

business model



ESR2 IRO-1 Description and assessment of IROs



E4-2 Policies



E4-3 Actions



E4-4 Targets

ESRS E5 Resource use

and circular economy

Resources inflows, including

resource use

ESRS 2 IRO-1 Description and assessment of IROs

E5-1 Policies

E5-2 Actions

E5-3 Targets

Resource outflows related to

products and services

ESRS 2 IRO-1 Description and assessment of IROs

E5-1 Policies

E5-2 Actions

E5-3 Targets

Waste

ESRS 2 IRO-1 Description and assessment of IROs

E5-1 Policies

E5-2 Actions

E5-3 Targets



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Social

ESRS S1 Own workforce

Working conditions - Secure

employment

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of non-employee workers in the



S1-11 Social protection

S1-17 Incidents, complaints and severe human rights impacts

Working conditions - Adequate

wages

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of non[1]employee workers in the



S1-10 Adequate wages

S1-17 Incidents, complaints and severe human rights impacts

Working conditions - Social

dialogue

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of nonemployee workers in the



S1-8 Collective bargaining coverage and social dialogue

S1-17 Incidents, complaints and severe human rights impacts



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Social

ESRS S1 Own workforce

Working conditions - Freedom of

association, works councils and

the information, consultation and

participation rights of workers

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of nonemployee workers in the



S1-8 Collective bargaining coverage and social dialogue

S1-17 Incidents, complaints and severe human rights impacts

Working conditions - Collective

bargaining, including the rate of

workers covered by collective

agreements

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of nonemployee workers in the



S1-8 Collective bargaining coverage and social dialogue

S1-17 Incidents, complaints and severe human rights impacts

Working conditions - Work-life

balance

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of nonemployee workers in the



S1-15 Work-life balance metrics

S1-17 Incidents, complaints and severe human rights impacts



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-

TOPIC

DISCLOSURE REQUIREMENT

PAGE/PARAGRAPH

Social

ESRS S1 Own

workforce

Equal treatment and

opportunities for all - Gender

equality and equal pay for

work of equal value

ESRS 2 SBM-2  Interests and views of

stakeholders



ESRS 2 SBM-3  Material impacts, risks and

opportunities and their interaction with strategy

and business model



S1-1 Policies



S1-2 Processes for engaging with own workers





S1-3 Processes to remediate negative impacts

and channels for own workers to raise concerns



S1-4 Actions



S1-5 Targets



S1-

Employees



S1-7 Characteristics of non[1]employee workers





S1-16 Remuneration metrics (pay gap and total

remuneration)



S1-17 Incidents, complaints and severe human

rights impacts



Equal treatment and

opportunities for all -

Training and skills

development

ESRS 2 SBM-2  Interests and views of

stakeholders



ESRS 2 SBM-3  Material impacts, risks and

opportunities and their interaction with strategy

and business model



S1-1 Policies



S1-2 Processes for engaging with own workers





S1-3 Processes to remediate negative impacts

and channels for own workers to raise concerns



S1-4 Actions



S1-5 Targets



S1-

Employees



S1-7 Characteristics of nonemployee workers in





S1-13 Training and skills development metrics



S1-17 Incidents, complaints and severe human

rights impacts



Equal treatment and

opportunities for all -

Employment and inclusion

of persons with disabilities

ESRS 2 SBM-2  Interests and views of

stakeholders



ESRS 2 SBM-3  Material impacts, risks and

opportunities and their interaction with strategy

and business model



S1-1 Policies



S1-2 Processes for engaging with own workers





S1-3 Processes to remediate negative impacts

and channels for own workers to raise concerns



S1-4 Actions



S1-5 Targets



S1-

Employees



S1-7 Characteristics of nonemployee workers in





S1-12 Persons with disabilities



S1-17 Incidents, complaints and severe human

rights impacts





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Social

ESRS S1 Own workforce

Equal treatment and opportunities

for all - Measures against violence

and harassment in the workplace

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-6 

S1-7 Characteristics of non[1]employee workers in the



S1-12 Persons with disabilities

S1-17 Incidents, complaints and severe human rights impacts

Equal treatment and opportunities

for all - Diversity

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-2 

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-6 Characteristics of the 

S1-7 Characteristics of nonemployee workers in the



S1-9 Diversity metrics

S1-17 Incidents, complaints and severe human rights impacts

Other work-related rights -

Privacy

ESRS 2 SBM-2  Interests and views of stakeholders

ESRS 2 SBM-3  Material impacts, risks and opportunities and

their interaction with strategy and business model

S1-1 Policies

S1-

representatives about impacts

S1-3 Processes to remediate negative impacts and channels

for own workers to raise concerns

S1-4 Actions

S1-5 Targets

S1-

S1-7 Characteristics of nonemployee workers in the



S1-17 Incidents, complaints and severe human rights impacts



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Social

ESRS S3 Affected

communities



and cultural rights - adequate

housing

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S3-1 Policies

S3-2 Processes for engaging with affected communities about

impacts

S3-3 Processes to remediate negative impacts and channels

for affected communities to raise concerns

S3-4 Actions

S3-5 Targets



and cultural rights - adequate food

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S3-1 Policies

S3-2 Processes for engaging with affected communities about

impacts

S3-3 Processes to remediate negative impacts and channels

for affected communities to raise concerns

S3-4 Actions

S3-5 Targets

economic,social and

cultural rights - security-related

impacts

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S3-1 Policies

S3-2 Processes for engaging with affected communities about

impacts

S3-3 Processes to remediate negative impacts and channels

for affected communities to raise concerns

S3-4 Actions

S3-5 Targets



rights

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S3-1 Policies

S3-2 Processes for engaging with affected communities about

impacts

S3-3 Processes to remediate negative impacts and channels

for affected communities to raise concerns

S3-4 Actions

S3-5 Targets



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Social

ESRS S4 Consumers and

end[1]users

Information-related impacts for

consumers and/or end-users

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S4-1 Policies

S4-2 Processes for engaging with consumers and end-users

about impacts

S4-3 Processes to remediate negative impacts and channels

for consumers and end-users to raise concerns

S4-4 Actions

S4-5 Targets

Social inclusion of consumers

and/or end[1]users

ESRS 2 SBM-2 Interests and views of stakeholders

ESRS 2 SBM-3 - Material impacts, risks and opportunities and

their interaction with strategy and business model

S4-1 Policies

S4-2 Processes for engaging with consumers and end-users

about impacts

S4-3 Processes to remediate negative impacts and channels

for consumers and end-users to raise concerns

S4-4 Actions

S4-5 Targets

SECTION

TOPIC

SUB-TOPIC/SUB-SUB-TOPIC

DISCLOSURE REQUIREMENT

Governance

ESRS G1 Business

conduct

Corporate culture

ESRS 2-GOV1

ESRS 2-IRO 1

G1-1 Business conduct policies and corporate culture

Protection of whistleblowers

ESRS 2-GOV1

ESRS 2-IRO 1

G1-1 Business conduct policies and corporate culture

Management of relationships with

suppliers including payment

practices

ESRS 2-GOV1

ESRS 2-IRO 1

G1-1 Business conduct policies and corporate culture

G1-2 Management of relationships with suppliers

G1-6 Payment Practices

Corruption and bribery

ESRS 2-GOV1

ESRS 2-IRO 1

G1-1 Business conduct policies and corporate culture

G1-2 Management of relationships with suppliers

G1-3 Prevention and detection of corruption and bribery

G1-4 Incidents of corruption or bribery



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Minimum reporting requirements - policies and actions

MDR-P - Policies adopted to manage significant sustainability issues













                 





the Group 

















      



























It is approved by the Board of Directors and the Supervisory Board and complies with

the provisions of NBR Regulation 5/2013 on prudential requirements for credit institutions, as subsequently supplemented and amended. It is also

available on the official website.







       



Unacceptable conduct refers to any action and/or omission in a work-related or process-affecting context that is or could be harmful or could

jeopardize the Bank, the Group and/or its employees, including:

 illegal, disloyal or unethical behavior;

 breach of laws and regulations, including, but not limited to, European legislation; or

 non-compliance with internal regulations.



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

                   







                     



 The

policy is available on the official website.













 Government Emergency Ordinance (GEO) no. 50/2010 on credit agreements for consumers, as amended and the Directive on 



 GEO No 52/2016 on credit agreements offered to consumers for immovable property, as well as for amending and supplementing GEO No

50/2010 on credit agreements for consumers, as amended and the Directive on credit agreements offered to consumers for residential

immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 - Directive 2014/17/EU, as

amended;

 Law No 190/1999 on mortgage credit for real estate investments, as amended;

 Law No 258/2017 on the comparability of payment account fees, switching of payment accounts and access to payment accounts with

basic services and the Directive on payment accounts - Directive 2014/92/EU (PAD - on the comparability of payment account fees,

switching of payment accounts and access to payment accounts with basic services);

 Law No 209/2019 on payment services and amending some normative acts and PSD2 Payment Services Directive;

 Law 311/2015 on Deposit Guarantee Schemes and the Bank Deposit Guarantee Fund and the Directive on Deposit Guarantee Schemes

- Directive 2014/49/EU

 Law 193/2000 on unfair terms in contracts concluded between professionals and consumers, amended;

 Law no. 363/2007 on combating unfair practices by traders in relation to consumers and harmonization of regulations with European

consumer protection legislation, amended;

 OG no. 21/1992 on consumer protection, as amended;

 OG no. 85/2004 on consumer protection in the conclusion and performance of distance contracts concerning financial services, republished

and amended;

 Law no. 365/2002 on e-commerce, republished and amended;

 Law No 296/2004 - Consumer Code, republished and amended.















The Politicy targets to:

 clearly articulate the commitment of UniCredit Bank ("the Bank") and UniCredit Group to prohibit bribery and corruption;

 define the principles for identifying and preventing possible cases of bribery and corruption;

 to clearly communicate the principles for combating bribery and corruption to both internal and external stakeholders;



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

















The underlying purpose of this policy 









  















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                 

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                 

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  











 

                 





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version











                    















The document describes: The provisions and principles followed by the Group in managing tax issues and the risks (both financial and reputational)

associated with them; The mission of the Tax function within UniCredit Bank as well as in the entities controlled by the Group and define the principles

and rules to be followed in order to effectively manage tax issues, as well as the main activities that should be carried out by the said function;

Information on CBC and Pillar II.

This Tax Policy is guided by the same principles set out in the Group's Code of Conduct, which identifies the standards of conduct for all employees

and which constitutes an essential part of their contractual obligations, as well as by the principles set out in the UniCredit SpA Group Tax Framework.

An appropriate framework for tax management is essential for the Group, its shareholders and all parties affected by its activities. The Group recognizes

that the taxes it owes are an important part of the wider economic and social role it plays in Romania. Given that the Romanian Group is part of a

global financial group serving both institutional bodies and individuals, on the one hand, the Group seeks to protect and enhance its image and

reputation, recognizing that these are essential foundations for the development of UniCredit's business. In line with this, the Group also aspires to

fully respect the contributions to the community required by law. The Group complies in form and substance with all domestic, international or

supranational tax laws, regulations and practices and cooperates in full transparency with the tax authorities in all jurisdictions in which it operates.

In particular, the aim of the Group is:

 to pay all taxes due and promptly implement all obligations required by applicable tax laws;

 while maintaining tax efficiency, avoiding double taxation and reducing the tax burden only where permitted by law.

In addition, given the complexity of the various tax laws to which it is subject, to ensure that the above-mentioned objectives are achieved, the Group

has adopted a comprehensive monitoring system to verify that it fully complies with all tax obligations in a timely manner. For the avoidance of

doubt, the principles articulated in this tax policy apply to all types of taxes, irrespective of the nature of the tax, the jurisdiction in which it is payable

or the party liable to pay or collect it. The Group also seeks to establish constructive and cooperative relationships and open a dialog with the tax

authorities in Romania and other jurisdictions in which it operates.





ESG Product Guidelines

It is applicable from the end of 2023 and aims to establish a consistent and comprehensive methodology for the classification and reporting of

UniCredit's ESG offering, as well as the prevention of risks related to greenwashing and socialwashing.

The scope covers all business lines of the Group: lending products, bonds, investment products, hedging products, capital market products,

transactional products and insurance products.

The norm is approved by the Management Board and is in line with: the EU Taxonomy; ICMA Principles; Sustainable Development Goals; Net Zero

Banking Alliance; Loan Market Association (LMA) Sustainability Linked Lending Principles (SLLP); SFDR (art. 8 and 9); MIFID II; UN Global

Compact; Paris 2015.

The policy is intended for internal use and a summary is also available on the UniCredit SpA Group website.









               











for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version









                   











 

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 

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 



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 

  



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for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version



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for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

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

 

 

    



 















 

 





 all subjects, defined as potential or active customers: belonging to the business division Corporates (turnover greater than 50 million

euro) or Key Customers Corporations or Large Corporations, when applicable AND belonging to the following categories: Companies

active in the Upstream and Midstream sectors of the Oil & Gas sector, as owners, operators, subcontractors or suppliers of "Key

Components/Infrastructures/Services (e.g. EPC contractors)"; all companies belonging to a legal group operating in the Oil & Gas sector.

 all activities (design, construction, as well as expansion and/or modernization, maintenance and routine operations) related to the

upstream and midstream segments of the oil and gas sector.





                 



 

 

 

 





 

 





for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version



                  

   



 





















 This norm defines: Criteria for identifying subjects and activities that are in scope

 Process, roles and responsibilities for carrying out the "Reputational and ESG Risk Assessment" to assess the specific situation and

characteristics of each topic or activity related to water infrastructures

The specific provisions of the norm apply:

 potential or active corporate clients operating as owners or operators of large dams

 any purpose/financing/support of transactions for specific purpose, regardless of the subject matter, when related to engineering,

construction, maintenance, expansion, modernization, modernization, rehabilitation and decommissioning of large dams and related

infrastructure (e.g. hydropower plants), ancillary services, key components and equipment.

Specific provisions of this regulation do not apply to:

 all activities - not related to large dams - related to water treatment, sewerage, wastewater treatment plants, wastewater management,

drainage systems, water supply/installations, irrigation systems or smaller in-stream power plants (e.g. river hydropower)

 commercialization of hydropower (utility company distributing electricity and not directly operating a hydropower plant)























The Declaration has been developed taking into account the views of stakeholders such as regulators, investors, civil society, NGOs and is based

on the following internationally recognized standards and initiatives:

 Equator Principles;

 International Finance Corporation (IFC) performance standards on social and environmental sustainability;

 World Bank Group Guidelines for Environment, Health and Safety (EHS);

 Financing for Biodiversity Pledge (FfBP).

The document is a position paper on natural capital and biodiversity and is published on the UniCredit SpA Group website.









for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version







                 









 

 

 

 

 

 

 

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

for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Environmental information

Communication of information under Article 8 of Regulation (EU) 2020/852 (EU Taxonomy

Regulation)

Introduction

The following tables display the disclosure obligations under Article 8 of the Disclosures Delegated Act supplementing the EU Taxonomy Regulation

(2020/852), which alendar

year 2023. The disclosure is intended to provide transparency on sustainability and facilitate the transition towards a low-carbon economy. In particular,

the Article 8 of the Regulation requires undertakings covered by the Non-Financial Reporting Directive (NFRD) 2014/95/EU to publish information on

how and to what extent their economic activities qualify as environmentally sustainable under the Taxonomy Regulation. The result is presented

through the green asset ratio (GAR), that is the exposures to activities that are Taxonomy aligned (numerator) divided by total covered assets

(denominator).

-related KPIs for financial and

non-financial undertakings. This means that undertakings that are not covered by mandatory non-financial disclosure are excluded, and the data gap



This year, the GAR indicator based on turnover represents 0.78% of total GAR assets (RON 61.314.093 thousand) and is mainly explained by the

exposures contributing to the climate change mitigation objective

Our calculation approach

In accordance with the templates provided by Regulation, for the calculation of the GAR KPIs, we have differentiated the portfolio by assets and

applied different calculation approaches, where required. We have only included undertakings subject to NFRD with mandatory disclosures,

excluding exposures to central governments, central banks, and supranational issuers. Information related to the use of proceeds is not published

within the framework of the Article 8 Taxonomy templates. Therefore, the sole counterparty KPIs are taken into account to define eligibility and

alignment. Furthermore, as required by the Regulation, the T-1 templates have been published but it should be noted that the comparison is not

significant as the perimeter of the 2024 disclosure has been changed compared to that of last year. In details, below a description of the applied

approach.

 Financial Corporations, Non-Financial Corporations, and Financial Guarantees: the Taxonomy KPIs consist of the weighted average of

financing activities and the proportion of Taxonomy-aligned economic activities of the counterparty. The collection of reports disclosed by our

counterparties, according to the NFRD, was done with the support of an external provider.

o When identifying NFRD counterparties, we have included all corporations which by themselves or indirectly fulfil criteria of the

e

value for the counterparty by using the KPIs of the parent company.

o We encountered cases where a counterparty, in its NFRD disclosure, did not report the breakdown of its Taxonomy KPIs among



WTR + CE 

). Therefore, the values in the total columns might be greater than the sum of the single components.

 Guaranteed loans granted to households: we focused on the 'Purchase' perimeter under Delegated Regulation 2021/2139; (excluding the

'Renovation' perimeter under Delegated Regulation 2021/2139 and 'Motor vehicles' due to lack of specific information related to the identification

of 'green loans')

o For this portfolio, we have identified the share of "green loans" by applying the criteria of the Regulation mentioned above - i.e. we

consider the best performing buildings with point data on Energy Performance Contracts (EPCs) and Positive Energy Districts (PEDs)

for the key performance indicators of eligibility

o For the alignment KPIs analysis, we considered assets built before December 31, 2020 with a documented EPC = A. We only consider

documented EPC (adequate/punctual documentation), hence using a conservative approach

o The calculation approach also integrates the physical risk analysis into the Do Not Significant Harm (DNSH) assessment, which is

aligned to the thresholds and climate data used for Pillar 3 disclosure Template 5 - "Banking Portfolio - Indicators of potential physical

risk from climate change: exposures subject to physical risk (Group)". We have not included adaptation plans or other types of

mitigation actions, thus applying a conservative approach

Motor vehicles for households: for eligible exposures, we took into account loans granted to finance the purchase of motor vehicles. For aligned

exposures, we only considered loans for the purchase of low-emission vehicles



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Assets under management (AuM): the reporting perimeter of the AuM KPIs is based on the volumes of collective investment funds that the Group

reports in the Group's full year results market presentation and other external communications. The numerator is calculated as a weighted average of

the proportion of business activities aligned to the taxonomy at the aggregate portfolio level to total investments. The collection of the aggregated

portfolio-level aggregated KPIs, which are the results of calculations performed on the actual KPIs of the underlying holdings available in the market,

was collected through an external provider

Total assets under management include all types of funds in the asset class, while "of which" includes only debt and equity, respectively, as classified

by our external data provider (e.g. commodities are not classified). This means that the total value of AuM could be higher than the sum of the individual

components 'of which debt' and 'of which equity'

New trades: the flow was calculated as a stock change approach at the transaction level between T (December 31, 2024) and T-1 (December 31,

2023), identifying only new trades initiated during this period

Additional information on nuclear and gas activities: the eligibility, non-eligibility and alignment of nuclear and fossil gas activities has been

disclosed in accordance with Article 8(6), (7) and (8) of the amended Disclosure Obligation Delegated Act as from January 1, 2023. The key

performance indicators of nuclear and fossil gas activities have been calculated using the latest available data and key performance indicators of our

non-financial counterparties, thus taking into account only companies subject to the NFRD



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

Annex VI  Template for the KPIs of credit institutions

0 Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation

(RON Thousands)

MAIN KPI

TOTAL

ENVIRONMENTALLY

SUSTAINABLE

ASSETS

KPI TURNOVER

BASED

KPI CAPEX BASED

COVERAGE OVER

TOTAL ASSETS

% OF ASSETS

EXCLUDED FROM

THE NUMERATOR

OF THE GAR

(ARTICLE 7 (2) AND

(3) AND SECTION

1.1.2. OF ANNEX V)

% OF ASSETS

EXCLUDED FROM

THE

DENOMINATOR OF

THE GAR (ARTICLE

7 (1)) AND SECTION

1.2.4 OF ANNEX V)

Green Assets Ratio (GAR) stock

474,348

0.77%

0.95%

73.16%

62.18%

26.84%

ADDITIONAL KPI

TOTAL

ENVIRONMENTALLY

SUSTAINABLE

ASSETS

KPI TURNOVER

BASED

KPI CAPEX BASED

COVERAGE OVER

TOTAL ASSETS

% OF ASSETS

EXCLUDED FROM

THE NUMERATOR

OF THE GAR

(ARTICLE 7 (2) AND

(3) AND SECTION

1.1.2. OF ANNEX V)

% OF ASSETS

EXCLUDED FROM

THE

DENOMINATOR OF

THE GAR (ARTICLE

7 (1)) AND SECTION

1.2.4 OF ANNEX V)

GAR flow

107,652

0.79%

0.84%

22.82%

Trading book

Financial Guarantees

136,712

5.75%

14.81%

Assets Under Management

7,548

7.33%

11.40%

Fees and commissions income



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

1 Assets for the calculation of GAR - CapEx based

(RON

Thousands)

31.12.2024

TOTAL GROSS

CARRYING AMOUNT

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

GAR - Covered assets in both numerator and denominator

Loans and advances, debt securities and equity instruments

not HfT eligible for GAR calculation

9,309,957

8,807,688

579,150

428,566

126,870

1,501

1,496

Financial undertaking

517,782

166,201

1,596

409

444

Credit institutions

483,329

163,776

1,306

401

428

Loans and advances

483,329

163,776

1,306

401

428

Debt securities, including UoP

Equity instruments

Other Financial corporation

34,453

2,425

290

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

327,167

204,172

150,942

1,545

126,426

1,501

1,496

Loans and advances

327,167

204,172

150,942

1,545

126,426

1,501

1,496

Debt securities, including UoP

Equity instruments

Households

8,464,358

8,437,315

426,612

Of which: loans collateralised by residential

immovable property

8,251,027

8,224,241

426,612

Of which: building renovation loans

213,331

213,074

Of which: motor vehicle loans

Local governments financing

650

Housing financing

Other local government financing

650



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - CapEx based

(RON

Thousands)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

111

8,809,308

580,652

428,566

126,870

Financial undertaking

166,207

1,597

409

444

Credit institutions

163,776

1,307

401

428

Loans and advances

163,776

1,307

401

428

Debt securities, including UoP

Equity instruments

Other Financial corporation

2,431

290

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

111

205,786

152,443

1,545

126,426

Loans and advances

111

205,786

152,443

1,545

126,426

Debt securities, including UoP

Equity instruments

Households

8,437,315

426,612

Of which: loans collateralised by

residential immovable property

8,224,241

426,612

Of which: building renovation loans

213,074

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - CapEx based

(RON

Thousands)

31.12.2024

TOTAL GROSS

CARRYING AMOUNT

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

Collateral obtained by taking possession: residential and

commercial immovable properties

Assets excluded from the numerator for GAR calculation

(covered in the denominator)

52,004,136

Financial and Non-Financial undertaking

43,455,140

SMEs and NFCs (other than SMEs) not subject to NFRD

disclosure obligations

32,320,865

Loans and advances

32,320,865

of which: loans collateralised by commercial immovable

property

12,458,167

of which: building renovation loans

Debt securities

Equity instruments

Non-EU country counterparties not subject to NFRD

disclosure obligations

Loans and advances

Debt securities

Equity instruments

Derivatives

115,314

On demand interbank loans

230,254

Cash and cash-related assets

1,455,282

Other categories of assets (e.g. Goodwill, commodities

etc.)

6,748,146

Total GAR assets

61,314,093

8,807,688

579,150

428,566

126,870

1,501

1,496

Assets not covered for GAR calculation

22,481,495

Central governments and supranational issuers

14,822,413

Central banks exposure

7,541,639

Trading book

117,443

Total assets

83,795,588

8,807,688

579,150

428,566

126,870

1,501

1,496

Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations

Financial guarantees

2,378,862

710,387

349,435

1,511

199,679

3,252

761

195

9,811

2,127

Assets under management

102,959

22,905

11,399

661

5,937

1,393

334

143

255

of which: debt securities

19,821

4,810

1,649

205

526

178

134

of which: equity instruments

83,138

15,374

8,181

327

4,733

1,099

147

233



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - CapEx based

(RON

Thousands)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Collateral obtained by taking possession:

residential and commercial immovable

properties

Assets excluded from the numerator for GAR

calculation (covered in the denominator)

Financial and Non-Financial undertaking

SMEs and NFCs (other than SMEs) not subject

to NFRD disclosure obligations

Loans and advances

of which: loans collateralised by

commercial immovable property

of which: building renovation loans

Debt securities

Equity instruments

Non-EU country counterparties not subject to

NFRD disclosure obligations

Loans and advances

Debt securities

Equity instruments

Derivatives

On demand interbank loans

Cash and cash-related assets

Other categories of assets (e.g. Goodwill,

commodities etc.)

Total GAR assets

111

8,809,308

580,652

428,566

126,870

Assets not covered for GAR calculation

Central governments and supranational

issuers

Central banks exposure

Trading book

Total assets

111

8,809,308

580,652

428,566

126,870

Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations

Financial guarantees

87,594

831,706

352,325

1,511

199,875

Assets under management

1,614

2,843

29,043

11,733

661

6,081

of which: debt securities

5,062

1,784

205

546

of which: equity instruments

1,486

2,724

20,947

8,328

327

4,825



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

1 Assets for the calculation of GAR - Turnover based

(RON

Thousands)

31.12.2024

TOTAL GROSS

CARRYING

AMOUNT

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH

ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

9,309,957

8,690,389

474,341

429,035

42,985

Financial undertaking

517,782

165,809

1,151

421

Credit institutions

483,329

163,374

884

412

Loans and advances

483,329

163,374

884

412

Debt securities, including UoP

Equity instruments

Other Financial corporation

34,453

2,435

267

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

327,167

87,265

46,578

2,414

42,564

Loans and advances

327,167

87,265

46,578

2,414

42,564

Debt securities, including UoP

Equity instruments

Households

8,464,358

8,437,315

426,612

Of which: loans collateralised by residential

immovable property

8,251,027

8,224,241

426,612

Of which: building renovation loans

213,331

213,074

Of which: motor vehicle loans

Local governments financing

650

Housing financing

Other local government financing

650



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - Turnover based

(RON

Thousands)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and

equity instruments not HfT eligible for GAR

calculation

146

8,690,555

474,348

429,035

42,985

Financial undertaking

165,821

1,151

421

Credit institutions

163,374

884

412

Loans and advances

163,374

884

412

Debt securities, including UoP

Equity instruments

Other Financial corporation

2,447

267

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

146

87,419

46,585

2,414

42,564

Loans and advances

146

87,419

46,585

2,414

42,564

Debt securities, including UoP

Equity instruments

Households

8,437,315

426,612

Of which: loans collateralised by

residential immovable property

8,224,241

426,612

Of which: building renovation loans

213,074

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - Turnover based

(RON

Thousands)

31.12.2024

TOTAL GROSS

CARRYING

AMOUNT

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-

ALIGNED)

OF WHICH ENVIRONMENTALLY

SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY

SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

Collateral obtained by taking

possession: residential and

commercial immovable

properties

Assets excluded from the numerator

for GAR calculation (covered in the

denominator)

52,004,136

Financial and Non-Financial

undertaking

43,455,140

SMEs and NFCs (other than SMEs)

not subject to NFRD disclosure

obligations

32,320,865

Loans and advances

32,320,865

of which: loans collateralised

by commercial immovable

property

12,458,167

of which: building renovation

loans

Debt securities

Equity instruments

Non-EU country counterparties not

subject to NFRD disclosure

obligations

Loans and advances

Debt securities

Equity instruments

Derivatives

115,314

On demand interbank loans

230,254

Cash and cash-related assets

1,455,282

Other categories of assets (e.g.

Goodwill, commodities etc.)

6,748,146

Total GAR assets

61,314,093

8,690,389

474,341

429,035

42,985

Assets not covered for GAR

calculation

22,481,495

Central governments and

supranational issuers

14,822,413

Central banks exposure

7,541,639

Trading book

117,443

Total assets

83,795,588

8,690,389

474,341

429,035

42,985

Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations

Financial guarantees

2,378,862

523,625

135,900

1,105

86,417

3,092

810

8,490

Assets under management

102,959

16,413

7,404

452

4,378

1,183

144

137

of which: debt securities

19,821

4,592

1,182

198

323

191

of which: equity instruments

83,138

9,559

5,254

117

3,612

877

126



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 1 Assets for the calculation of GAR - Turnover based

(RON

Thousands)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-

ELIGIBLE)

OF WHICH TOWARDS TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE

(TAXONOMY-ALIGNED)

OF WHICH ENVIRONMENTALLY SUSTAINABLE (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Collateral obtained by taking possession:

residential and commercial immovable

properties

Assets excluded from the numerator for GAR

calculation (covered in the denominator)

Financial and Non-Financial undertaking

SMEs and NFCs (other than SMEs) not

subject to NFRD disclosure obligations

Loans and advances

of which: loans collateralised by

commercial immovable property

of which: building renovation loans

Debt securities

Equity instruments

Non-EU country counterparties not subject to

NFRD disclosure obligations

Loans and advances

Debt securities

Equity instruments

Derivatives

On demand interbank loans

Cash and cash-related assets

Other categories of assets (e.g. Goodwill,

commodities etc.)

Total GAR assets

146

8,690,555

474,348

429,035

42,985

Assets not covered for GAR calculation

Central governments and supranational

issuers

Central banks exposure

Trading book

Total assets

146

8,690,555

474,348

429,035

42,985

Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations

Financial guarantees

157,359

729,144

136,712

1,105

86,425

Assets under management

2,460

3,051

23,316

7,548

452

4,432

of which: debt securities

4,870

1,261

198

329

of which: equity instruments

2,314

2,915

15,828

5,291

117

3,648



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

A02.10 Silviculture and other forestry activities

A02.20 Logging

A02.30 Gathering of wild growing non-wood products

A02.40 Support services to forestry

C16.10 Sawmilling and planing of wood

C16.21 Manufacture of veneer sheets and wood-based

panels

C16.22 Manufacture of assembled parquet floors

C16.23 Manufacture of other builders'carpentry and joinery

C16.24 Manufacture of wooden containers

C16.29 Manufacture of other products of wood;

manufacture of articles of cork, straw and plaiting materials

C17.11 Manufacture of pulp

C17.12 Manufacture of paper and paperboard

C17.21 Manufacture of corrugated paper and paperboard

and of containers of paper and paperboard

C17.22 Manufacture of household and sanitary goods and

of toilet requisites

C17.23 Manufacture of paper stationery

C17.24 Manufacture of wallpaper

C17.29 Manufacture of other articles of paper and

paperboard

C20.11 Manufacture of industrial gases

C20.13 Manufacture of other inorganic basic chemicals

C20.14 Manufacture of other organic basic chemicals

C20.15 Manufacture of fertilisers and nitrogen compounds

C20.16 Manufacture of plastics in primary forms

C22.11 Manufacture of rubber tyres and tubes; retreading

and rebuilding of rubber tyres

C22.19 Manufacture of other rubber products

C22.21 Manufacture of plastic plates, sheets, tubes and

profiles

C22.22 Manufacture of plastic packing goods



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C22.23 Manufacture of builders ware of plastic

C22.29 Manufacture of other plastic products

C23.11 Manufacture of flat glass

C23.12 Shaping and processing of flat glass

C23.13 Manufacture of hollow glass

C23.14 Manufacture of glass fibres

C23.19 Manufacture and processing of other glass,

including technical glassware

C23.20 Manufacture of refractory products

C23.31 Manufacture of ceramic tiles and flags

C23.32 Manufacture of bricks, tiles and construction

products, in baked clay

C23.41 Manufacture of ceramic household and ornamental

articles

C23.42 Manufacture of ceramic sanitary fixtures

C23.43 Manufacture of ceramic insulators and insulating

fittings

C23.44 Manufacture of other technical ceramic products

C23.49 Manufacture of other ceramic products

C23.51 Manufacture of cement

C23.52 Manufacture of lime and plaster

C23.61 Manufacture of concrete products for construction

purposes

C23.62 Manufacture of plaster products for construction

purposes

C23.63 Manufacture of ready-mixed concrete

C23.64 Manufacture of mortars

C23.65 Manufacture of fibre cement

C23.69 Manufacture of other articles of concrete, plaster

and cement

C23.70 Cutting, shaping and finishing of stone

C23.91 Production of abrasive products



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C23.99 Manufacture of other non-metallic mineral products

n.e.c.

C24.10 Manufacture of basic iron and steel and of ferro-

alloys

C24.20 Manufacture of tubes, pipes, hollow profiles and

related fittings, of steel

C24.31 Cold drawing of bars

C24.32 Cold rolling of narrow strip

C24.33 Cold forming or folding

C24.34 Cold drawing of wire

C24.42 Aluminium production

C24.51 Casting of iron

C24.52 Casting of steel

C24.53 Casting of light metals

C25.11 Manufacture of metal structures and parts of

structures

C25.12 Manufacture of doors and windows of metal

C25.21 Manufacture of central heating radiators and

boilers

C25.29 Manufacture of other tanks, reservoirs and

containers of metal

C25.30 Manufacture of steam generators, except central

heating hot water boilers

C25.40 Manufacture of weapons and ammunition

C25.50 Forging, pressing, stamping and roll-forming of

metal; powder metallurgy

C25.61 Treatment and coating of metals

C25.62 Machining

C25.71 Manufacture of cutlery

C25.72 Manufacture of locks and hinges

C25.73 Manufacture of tools

C25.91 Manufacture of steel drums and similar containers

C25.92 Manufacture of light metal packaging



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C25.93 Manufacture of wire products, chain and springs

C25.94 Manufacture of fasteners and screw machine

products

C25.99 Manufacture of other fabricated metal products

n.e.c.

C26.11 Manufacture of electronic components

C26.12 Manufacture of loaded electronic boards

C26.20 Manufacture of computers and peripheral

equipment

C26.30 Manufacture of communication equipment

C26.40 Manufacture of consumer electronics

C26.51 Manufacture of instruments and appliances for

measuring, testing and navigation

C26.52 Manufacture of watches and clocks

C26.60 Manufacture of irradiation, electromedical and

electrotherapeutic equipment

C26.70 Manufacture of optical instruments and

photographic equipment

C26.80 Manufacture of magnetic and optical media

C27.11 Manufacture of electric motors, generators and

transformers

C27.12 Manufacture of electricity distribution and control

apparatus

C27.20 Manufacture of batteries and accumulators

C27.31 Manufacture of fibre optic cables

C27.32 Manufacture of other electronic and electric wires

and cables

C27.33 Manufacture of wiring devices

C27.40 Manufacture of electric lighting equipment

C27.51 Manufacture of electric domestic appliances

C27.52 Manufacture of non-electric domestic appliances

C27.90 Manufacture of other electrical equipment

100

C28.11 Manufacture of engines and turbines, except

aircraft, vehicle and cycle engines

101

C28.12 Manufacture of fluid power equipment



for the financial period ended 31 December 2024

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

102

C28.13 Manufacture of other pumps and compressors

103

C28.14 Manufacture of other taps and valves

104

C28.15 Manufacture of bearings, gears, gearing and

driving elements

105

C28.21 Manufacture of ovens, furnaces and furnace

burners

106

C28.22 Manufacture of lifting and handling equipment

107

C28.23 Manufacture of office machinery and equipment

(except computers and peripheral equipment)

108

C28.24 Manufacture of power-driven hand tools

109

C28.25 Manufacture of non-domestic cooling and

ventilation equipment

110

C28.29 Manufacture of other general-purpose machinery

n.e.c.

111

C28.30 Manufacture of agricultural and forestry machinery

112

C28.41 Manufacture of metal forming machinery

113

C28.49 Manufacture of other machine tools

114

C28.91 Manufacture of machinery for metallurgy

115

C28.92 Manufacture of machinery for mining, quarrying

and construction

116

C28.93 Manufacture of machinery for food, beverage and

tobacco processing

117

C28.94 Manufacture of machinery for textile, apparel and

leather production

118

C28.95 Manufacture of machinery for paper and

paperboard production

119

C28.96 Manufacture of plastics and rubber machinery

120

C28.99 Manufacture of other special-purpose machinery

n.e.c.

121

C29.10 Manufacture of motor vehicles

122

C30.11 Building of ships and floating structures

123

C30.12 Building of pleasure and sporting boats

124

C30.20 Manufacture of railway locomotives and rolling

stock

125

C30.91 Manufacture of motorcycles

126

C30.92 Manufacture of bicycles and invalid carriages



for the financial period ended 31 December 2024

100

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

127

C30.99 Manufacture of other transport equipment n.e.c.

128

C33.12 Repair of machinery

129

C33.15 Repair and maintenance of ships and boats

130

C33.17 Repair and maintenance of other transport

equipment

131

D35.11 Production of electricity

132

D35.12 Transmission of electricity

133

D35.13 Distribution of electricity

134

D35.21 Manufacture of gas

135

D35.22 Distribution of gaseous fuels through mains

136

D35.30 Steam and air conditioning supply

137

E36.00 Water collection, treatment and supply

138

E37.00 Sewerage

139

E38.11 Collection of non-hazardous waste

140

E38.21 Treatment and disposal of non-hazardous waste

141

E38.32 Recovery of sorted materials

142

E39.00 Remediation activities and other waste

management services

143

F41.10 Development of building projects

144

F41.20 Construction of residential and non-residential

buildings

145

F42.11 Construction of roads and motorways

146

F42.12 Construction of railways and underground railways

147

F42.13 Construction of bridges and tunnels

148

F42.21 Construction of utility projects for fluids

149

F42.22 Construction of utility projects for electricity and

telecommunications

150

F42.91 Construction of water projects

151

F42.99 Construction of other civil engineering projects

n.e.c.



for the financial period ended 31 December 2024

101

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

152

F43.11 Demolition

153

F43.12 Site preparation

154

F43.13 Test drilling and boring

155

F43.21 Electrical installation

156

F43.22 Plumbing, heat and air-conditioning installation

157

F43.29 Other construction installation

158

F43.31 Plastering

159

F43.32 Joinery installation

160

F43.33 Floor and wall covering

161

F43.34 Painting and glazing

162

F43.39 Other building completion and finishing

163

F43.91 Roofing activities

164

F43.99 Other specialised construction activities n.e.c.

165

H49.10 Passenger rail transport, interurban

166

H49.20 Freight rail transport

167

H49.31 Urban and suburban passenger land transport

168

H49.32 Taxi operation

169

H49.39 Other passenger land transport n.e.c.

170

H49.41 Freight transport by road

171

H49.50 Transport via pipeline

172

H50.10 Sea and coastal passenger water transport

173

H50.20 Sea and coastal freight water transport

174

H50.30 Inland passenger water transport

175

H50.40 Inland freight water transport

176

H52.21 Service activities incidental to land transportation



for the financial period ended 31 December 2024

102

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

177

H52.22 Service activities incidental to water transportation

178

H53.10 Postal activities under universal service obligation

179

H53.20 Other postal and courier activities

180

J59.11 Motion picture, video and television programme

production activities

181

J59.12 Motion picture, video and television programme

post-production activities

182

J59.13 Motion picture, video and television programme

distribution activities

183

J59.14 Motion picture projection activities

184

J59.20 Sound recording and music publishing activities

185

J60.10 Radio broadcasting

186

J60.20 Television programming and broadcasting activities

187

J61.10 Wired telecommunications activities

188

J61.20 Wireless telecommunications activities

189

J61.30 Satellite telecommunications activities

190

J61.90 Other telecommunications activities

191

J62.01 Computer programming activities

192

J62.02 Computer consultancy activities

193

J62.03 Computer facilities management activities

194

J62.09 Other information technology and computer service

activities

195

J63.11 Data processing, hosting and related activities

196

K65.12 Non-life insurance

197

K65.20 Reinsurance

198

L68.10 Buying and selling of own real estate

199

L68.20 Rental and operating of own or leased real estate

200

L68.31 Real estate agencies

201

L68.32 Management of real estate on a fee or contract

basis



for the financial period ended 31 December 2024

103

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

202

M71.11 Architectural activities

203

M71.12 Engineering activities and related technical

consultancy

204

M71.20 Technical testing and analysis

205

M72.11 Research and experimental development on

biotechnology

206

M72.19 Other research and experimental development on

natural sciences and engineering

207

M72.20 Research and experimental development on social

sciences and humanities

208

N77.11 Rental and leasing of cars and light motor vehicles

209

N77.12 Rental and leasing of trucks

210

N77.21 Rental and leasing of recreational and sports

goods

211

N77.34 Rental and leasing of water transport equipment

212

N77.39 Rental and leasing of other machinery, equipment

and tangible goods n.e.c.

213

P85.10 Pre-primary education

214

P85.20 Primary education

215

P85.31 General secondary education

216

P85.32 Technical and vocational secondary education

217

P85.41 Post-secondary non-tertiary education

218

P85.42 Tertiary education

219

P85.51 Sports and recreation education

220

P85.52 Cultural education

221

P85.53 Driving school activities

222

P85.59 Other education n.e.c.

223

P85.60 Educational support activities

224

Q87.10 Residential nursing care activities

225

Q87.20 Residential care activities for mental retardation,

mental health and substance abuse

226

Q87.30 Residential care activities for the elderly and

disabled



for the financial period ended 31 December 2024

104

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Capex based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

227

Q87.90 Other residential care activities

228

R90.01 Performing arts

229

R90.02 Support activities to performing arts

230

R90.03 Artistic creation

231

R90.04 Operation of arts facilities

232

R91.01 Library and archives activities

233

R91.02 Museums activities

234

R91.03 Operation of historical sites and buildings and

similar visitor attractions

235

R91.04 Botanical and zoological gardens and nature

reserves activities

236

S95.21 Repair of consumer electronics

237

S95.22 Repair of household appliances and home and

garden equipment



for the financial period ended 31 December 2024

105

Convenience translation in English of the original Romanian version

2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

A02.10 Silviculture and other forestry activities

A02.20 Logging

A02.30 Gathering of wild growing non-wood products

A02.40 Support services to forestry

C16.10 Sawmilling and planing of wood

C16.21 Manufacture of veneer sheets and wood-based

panels

C16.22 Manufacture of assembled parquet floors

C16.23 Manufacture of other builders'carpentry and joinery

C16.24 Manufacture of wooden containers

C16.29 Manufacture of other products of wood;

manufacture of articles of cork, straw and plaiting materials

C17.11 Manufacture of pulp

C17.12 Manufacture of paper and paperboard

C17.21 Manufacture of corrugated paper and paperboard

and of containers of paper and paperboard

C17.22 Manufacture of household and sanitary goods and

of toilet requisites

C17.23 Manufacture of paper stationery

C17.24 Manufacture of wallpaper

C17.29 Manufacture of other articles of paper and

paperboard

C20.11 Manufacture of industrial gases

C20.13 Manufacture of other inorganic basic chemicals

C20.14 Manufacture of other organic basic chemicals

C20.15 Manufacture of fertilisers and nitrogen compounds

C20.16 Manufacture of plastics in primary forms

C22.11 Manufacture of rubber tyres and tubes; retreading

and rebuilding of rubber tyres

C22.19 Manufacture of other rubber products

C22.21 Manufacture of plastic plates, sheets, tubes and

profiles

C22.22 Manufacture of plastic packing goods



for the financial period ended 31 December 2024

106

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C22.23 Manufacture of builders ware of plastic

C22.29 Manufacture of other plastic products

C23.11 Manufacture of flat glass

C23.12 Shaping and processing of flat glass

C23.13 Manufacture of hollow glass

C23.14 Manufacture of glass fibres

C23.19 Manufacture and processing of other glass,

including technical glassware

C23.20 Manufacture of refractory products

C23.31 Manufacture of ceramic tiles and flags

C23.32 Manufacture of bricks, tiles and construction

products, in baked clay

C23.41 Manufacture of ceramic household and ornamental

articles

C23.42 Manufacture of ceramic sanitary fixtures

C23.43 Manufacture of ceramic insulators and insulating

fittings

C23.44 Manufacture of other technical ceramic products

C23.49 Manufacture of other ceramic products

C23.51 Manufacture of cement

C23.52 Manufacture of lime and plaster

C23.61 Manufacture of concrete products for construction

purposes

C23.62 Manufacture of plaster products for construction

purposes

C23.63 Manufacture of ready-mixed concrete

C23.64 Manufacture of mortars

C23.65 Manufacture of fibre cement

C23.69 Manufacture of other articles of concrete, plaster

and cement

C23.70 Cutting, shaping and finishing of stone

C23.91 Production of abrasive products



for the financial period ended 31 December 2024

107

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C23.99 Manufacture of other non-metallic mineral products

n.e.c.

C24.10 Manufacture of basic iron and steel and of ferro-

alloys

C24.20 Manufacture of tubes, pipes, hollow profiles and

related fittings, of steel

C24.31 Cold drawing of bars

C24.32 Cold rolling of narrow strip

C24.33 Cold forming or folding

C24.34 Cold drawing of wire

C24.42 Aluminium production

C24.51 Casting of iron

C24.52 Casting of steel

C24.53 Casting of light metals

C25.11 Manufacture of metal structures and parts of

structures

C25.12 Manufacture of doors and windows of metal

C25.21 Manufacture of central heating radiators and

boilers

C25.29 Manufacture of other tanks, reservoirs and

containers of metal

C25.30 Manufacture of steam generators, except central

heating hot water boilers

C25.40 Manufacture of weapons and ammunition

C25.50 Forging, pressing, stamping and roll-forming of

metal; powder metallurgy

C25.61 Treatment and coating of metals

C25.62 Machining

C25.71 Manufacture of cutlery

C25.72 Manufacture of locks and hinges

C25.73 Manufacture of tools

C25.91 Manufacture of steel drums and similar containers

C25.92 Manufacture of light metal packaging



for the financial period ended 31 December 2024

108

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

C25.93 Manufacture of wire products, chain and springs

C25.94 Manufacture of fasteners and screw machine

products

C25.99 Manufacture of other fabricated metal products

n.e.c.

C26.11 Manufacture of electronic components

C26.12 Manufacture of loaded electronic boards

C26.20 Manufacture of computers and peripheral

equipment

C26.30 Manufacture of communication equipment

C26.40 Manufacture of consumer electronics

C26.51 Manufacture of instruments and appliances for

measuring, testing and navigation

C26.52 Manufacture of watches and clocks

C26.60 Manufacture of irradiation, electromedical and

electrotherapeutic equipment

C26.70 Manufacture of optical instruments and

photographic equipment

C26.80 Manufacture of magnetic and optical media

C27.11 Manufacture of electric motors, generators and

transformers

C27.12 Manufacture of electricity distribution and control

apparatus

C27.20 Manufacture of batteries and accumulators

C27.31 Manufacture of fibre optic cables

C27.32 Manufacture of other electronic and electric wires

and cables

C27.33 Manufacture of wiring devices

C27.40 Manufacture of electric lighting equipment

1,077

C27.51 Manufacture of electric domestic appliances

C27.52 Manufacture of non-electric domestic appliances

C27.90 Manufacture of other electrical equipment

100

C28.11 Manufacture of engines and turbines, except

aircraft, vehicle and cycle engines

101

C28.12 Manufacture of fluid power equipment



for the financial period ended 31 December 2024

109

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

102

C28.13 Manufacture of other pumps and compressors

103

C28.14 Manufacture of other taps and valves

104

C28.15 Manufacture of bearings, gears, gearing and

driving elements

3,297

1,319

3,297

1,319

105

C28.21 Manufacture of ovens, furnaces and furnace

burners

106

C28.22 Manufacture of lifting and handling equipment

107

C28.23 Manufacture of office machinery and equipment

(except computers and peripheral equipment)

108

C28.24 Manufacture of power-driven hand tools

109

C28.25 Manufacture of non-domestic cooling and

ventilation equipment

110

C28.29 Manufacture of other general-purpose machinery

n.e.c.

111

C28.30 Manufacture of agricultural and forestry machinery

112

C28.41 Manufacture of metal forming machinery

113

C28.49 Manufacture of other machine tools

114

C28.91 Manufacture of machinery for metallurgy

115

C28.92 Manufacture of machinery for mining, quarrying

and construction

116

C28.93 Manufacture of machinery for food, beverage and

tobacco processing

117

C28.94 Manufacture of machinery for textile, apparel and

leather production

118

C28.95 Manufacture of machinery for paper and

paperboard production

119

C28.96 Manufacture of plastics and rubber machinery

120

C28.99 Manufacture of other special-purpose machinery

n.e.c.

121

C29.10 Manufacture of motor vehicles

122

C30.11 Building of ships and floating structures

123

C30.12 Building of pleasure and sporting boats

124

C30.20 Manufacture of railway locomotives and rolling

stock

125

C30.91 Manufacture of motorcycles

126

C30.92 Manufacture of bicycles and invalid carriages



for the financial period ended 31 December 2024

110

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

127

C30.99 Manufacture of other transport equipment n.e.c.

128

C33.12 Repair of machinery

129

C33.15 Repair and maintenance of ships and boats

130

C33.17 Repair and maintenance of other transport

equipment

131

D35.11 Production of electricity

132

D35.12 Transmission of electricity

133

D35.13 Distribution of electricity

134

D35.21 Manufacture of gas

135

D35.22 Distribution of gaseous fuels through mains

136

D35.30 Steam and air conditioning supply

137

E36.00 Water collection, treatment and supply

138

E37.00 Sewerage

139

E38.11 Collection of non-hazardous waste

140

E38.21 Treatment and disposal of non-hazardous waste

141

E38.32 Recovery of sorted materials

142

E39.00 Remediation activities and other waste

management services

143

F41.10 Development of building projects

144

F41.20 Construction of residential and non-residential

buildings

150

145

F42.11 Construction of roads and motorways

146

F42.12 Construction of railways and underground railways

147

F42.13 Construction of bridges and tunnels

148

F42.21 Construction of utility projects for fluids

149

F42.22 Construction of utility projects for electricity and

telecommunications

150

F42.91 Construction of water projects

151

F42.99 Construction of other civil engineering projects

n.e.c.



for the financial period ended 31 December 2024

111

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM +

CCA + WTR + CE +

PPC + BIO)

152

F43.11 Demolition

153

F43.12 Site preparation

154

F43.13 Test drilling and boring

155

F43.21 Electrical installation

156

F43.22 Plumbing, heat and air-conditioning installation

157

F43.29 Other construction installation

158

F43.31 Plastering

159

F43.32 Joinery installation

160

F43.33 Floor and wall covering

161

F43.34 Painting and glazing

162

F43.39 Other building completion and finishing

163

F43.91 Roofing activities

164

F43.99 Other specialised construction activities n.e.c.

165

H49.10 Passenger rail transport, interurban

166

H49.20 Freight rail transport

167

H49.31 Urban and suburban passenger land transport

168

H49.32 Taxi operation

169

H49.39 Other passenger land transport n.e.c.

170

H49.41 Freight transport by road

171

H49.50 Transport via pipeline

172

H50.10 Sea and coastal passenger water transport

173

H50.20 Sea and coastal freight water transport

174

H50.30 Inland passenger water transport

175

H50.40 Inland freight water transport

176

H52.21 Service activities incidental to land transportation



for the financial period ended 31 December 2024

112

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES

(SUBJECT TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

177

H52.22 Service activities incidental to water transportation

178

H53.10 Postal activities under universal service obligation

179

H53.20 Other postal and courier activities

180

J59.11 Motion picture, video and television programme

production activities

181

J59.12 Motion picture, video and television programme

post-production activities

182

J59.13 Motion picture, video and television programme

distribution activities

183

J59.14 Motion picture projection activities

184

J59.20 Sound recording and music publishing activities

185

J60.10 Radio broadcasting

186

J60.20 Television programming and broadcasting activities

187

J61.10 Wired telecommunications activities

188

J61.20 Wireless telecommunications activities

189

J61.30 Satellite telecommunications activities

190

J61.90 Other telecommunications activities

191

J62.01 Computer programming activities

192

J62.02 Computer consultancy activities

193

J62.03 Computer facilities management activities

194

J62.09 Other information technology and computer service

activities

195

J63.11 Data processing, hosting and related activities

196

K65.12 Non-life insurance

197

K65.20 Reinsurance

198

L68.10 Buying and selling of own real estate

199

L68.20 Rental and operating of own or leased real estate

200

L68.31 Real estate agencies

201

L68.32 Management of real estate on a fee or contract

basis



for the financial period ended 31 December 2024

113

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

202

M71.11 Architectural activities

203

M71.12 Engineering activities and related technical

consultancy

204

M71.20 Technical testing and analysis

205

M72.11 Research and experimental development on

biotechnology

206

M72.19 Other research and experimental development on

natural sciences and engineering

207

M72.20 Research and experimental development on social

sciences and humanities

208

N77.11 Rental and leasing of cars and light motor vehicles

209

N77.12 Rental and leasing of trucks

210

N77.21 Rental and leasing of recreational and sports

goods

211

N77.34 Rental and leasing of water transport equipment

212

N77.39 Rental and leasing of other machinery, equipment

and tangible goods n.e.c.

213

P85.10 Pre-primary education

214

P85.20 Primary education

215

P85.31 General secondary education

216

P85.32 Technical and vocational secondary education

217

P85.41 Post-secondary non-tertiary education

218

P85.42 Tertiary education

219

P85.51 Sports and recreation education

220

P85.52 Cultural education

221

P85.53 Driving school activities

222

P85.59 Other education n.e.c.

223

P85.60 Educational support activities

224

Q87.10 Residential nursing care activities

225

Q87.20 Residential care activities for mental retardation,

mental health and substance abuse

226

Q87.30 Residential care activities for the elderly and

disabled



for the financial period ended 31 December 2024

114

Convenience translation in English of the original Romanian version

continued: 2 GAR sector information - Turnover based

(RON

Thousands)

BREAKDOWN BY SECTOR - NACE 4 DIGITS LEVEL (CODE AND

LABEL)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC +

BIO)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

NON-FINANCIAL CORPORATES (SUBJECT

TO NFRD)

GROSS CARRYING AMOUNT

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCA)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (WTR)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CE)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (PPC)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (BIO)

OF WHICH

ENVIRONMENTALLY

SUSTAINABLE (CCM

+ CCA + WTR + CE +

PPC + BIO)

227

Q87.90 Other residential care activities

228

R90.01 Performing arts

229

R90.02 Support activities to performing arts

230

R90.03 Artistic creation

231

R90.04 Operation of arts facilities

232

R91.01 Library and archives activities

233

R91.02 Museums activities

234

R91.03 Operation of historical sites and buildings and

similar visitor attractions

235

R91.04 Botanical and zoological gardens and nature

reserves activities

236

S95.21 Repair of consumer electronics

237

S95.22 Repair of household appliances and home and

garden equipment



for the financial period ended 31 December 2024

115

Convenience translation in English of the original Romanian version

3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)

% (COMPARED TO TOTAL COVERED ASSETS IN THE

DENOMINATOR)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

14.38%

0.95%

0.70%

0.21%

0.00%

Financial undertakings

0.27%

0.00%

Credit institutions

0.27%

0.00%

Loans and advances

0.27%

0.00%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.00%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

0.33%

0.25%

0.00%

0.21%

0.00%

Loans and advances

0.33%

0.25%

0.00%

0.21%

0.00%

Debt securities, including UoP

Equity instruments

Households

13.77%

0.70%

Of which: loans collateralised by residential

immovable property

13.42%

0.70%

Of which: building renovation loans

0.35%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

14.38%

0.95%

0.70%

0.21%

0.00%



for the financial period ended 31 December 2024

116

Convenience translation in English of the original Romanian version

continued: 3 GAR KPI (stock) - Capex based - % (compared to total covered assets in the denominator)

% (COMPARED TO TOTAL COVERED ASSETS IN THE

DENOMINATOR)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT

SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION

OF TOTAL

ASSETS

COVERED

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

0.00%

14.38%

0.95%

0.70%

0.21%

11.12%

Financial undertakings

0.27%

0.00%

0.62%

Credit institutions

0.27%

0.00%

0.58%

Loans and advances

0.27%

0.00%

0.58%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.00%

0.04%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

0.00%

0.34%

0.25%

0.00%

0.21%

0.39%

Loans and advances

0.00%

0.34%

0.25%

0.00%

0.21%

0.39%

Debt securities, including UoP

Equity instruments

Households

13.77%

0.70%

10.11%

Of which: loans collateralised by

residential immovable property

13.42%

0.70%

9.85%

Of which: building renovation loans

0.35%

0.25%

Of which: motor vehicle loans

Local governments financing

0.00%

Housing financing

Other local government financing

0.00%

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

0.00%

14.38%

0.95%

0.70%

0.21%

73.16%



for the financial period ended 31 December 2024

117

Convenience translation in English of the original Romanian version

3 GAR KPI (stock) - Turnover based - % (compared to total covered assets in the denominator)

31.12.2024

% (COMPARED TO TOTAL COVERED ASSETS IN THE

DENOMINATOR)

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

14.18%

0.77%

0.70%

0.07%

0.00%

Financial undertakings

0.27%

0.00%

Credit institutions

0.27%

0.00%

Loans and advances

0.27%

0.00%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.00%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

0.14%

0.08%

0.00%

0.07%

0.00%

Loans and advances

0.14%

0.08%

0.00%

0.07%

0.00%

Debt securities, including UoP

Equity instruments

Households

13.77%

0.70%

Of which: loans collateralised by residential

immovable property

13.42%

0.70%

Of which: building renovation loans

0.35%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

14.18%

0.77%

0.70%

0.07%

0.00%



for the financial period ended 31 December 2024

118

Convenience translation in English of the original Romanian version

continued: 3 GAR KPI stock - Turnover based - % (compared to total covered assets in the denominator)

31.12.2024

% (COMPARED TO TOTAL COVERED ASSETS IN THE

DENOMINATOR)

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT

SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION

OF TOTAL

ASSETS

COVERED

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

0.00%

14.18%

0.77%

0.70%

0.07%

11.12%

Financial undertakings

0.27%

0.00%

0.62%

Credit institutions

0.27%

0.00%

0.58%

Loans and advances

0.27%

0.00%

0.58%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.00%

0.04%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertakings

0.00%

0.14%

0.08%

0.00%

0.07%

0.39%

Loans and advances

0.00%

0.14%

0.08%

0.00%

0.07%

0.39%

Debt securities, including UoP

Equity instruments

Households

13.77%

0.70%

10.11%

Of which: loans collateralised by

residential immovable property

13.42%

0.70%

9.85%

Of which: building renovation loans

0.35%

0.25%

Of which: motor vehicle loans

Local governments financing

0.00%

Housing financing

Other local government financing

0.00%

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

0.00%

14.18%

0.77%

0.70%

0.07%

73.16%



for the financial period ended 31 December 2024

119

Convenience translation in English of the original Romanian version

4 GAR KPI flow - Capex based - % (compared to flow of total eligible assets)

% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

20.90%

0.84%

0.76%

0.05%

Financial undertakings

1.20%

0.01%

0.00%

Credit institutions

1.20%

0.01%

0.00%

Loans and advances

1.20%

0.01%

0.00%

Debt securities, including UoP

Equity instruments

Other Financial corporation

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertaking

0.16%

0.07%

0.05%

Loans and advances

0.16%

0.07%

0.05%

Debt securities, including UoP

Equity instruments

Households

19.54%

0.76%

Of which: loans collateralised by residential

immovable property

19.54%

0.76%

Of which: building renovation loans

0.00%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

20.90%

0.84%

0.76%

0.05%



for the financial period ended 31 December 2024

120

Convenience translation in English of the original Romanian version

continued: 4 GAR KPI flow - Capex based - % (compared to flow of total eligible assets)

% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION

OF TOTAL NEW

ASSETS

COVERED

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT

SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

0.00%

20.90%

0.84%

0.76%

0.05%

22.83%

Financial undertakings

1.20%

0.01%

0.00%

2.97%

Credit institutions

1.20%

0.01%

0.00%

2.93%

Loans and advances

1.20%

0.01%

0.00%

2.93%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.04%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertaking

0.00%

0.16%

0.07%

0.05%

0.37%

Loans and advances

0.00%

0.16%

0.07%

0.05%

0.37%

Debt securities, including UoP

Equity instruments

Households

19.54%

0.76%

19.48%

Of which: loans collateralised by

residential immovable property

19.54%

0.76%

19.48%

Of which: building renovation loans

0.00%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

0.00%

20.90%

0.84%

0.76%

0.05%

22.83%



for the financial period ended 31 December 2024

121

Convenience translation in English of the original Romanian version

4 GAR KPI flow - Turnover based - % (compared to flow of total eligible assets)

% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

20.81%

0.79%

0.76%

0.03%

Financial undertakings

1.20%

0.01%

0.00%

Credit institutions

1.20%

0.01%

0.00%

Loans and advances

1.20%

0.01%

0.00%

Debt securities, including UoP

Equity instruments

Other Financial corporation

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertaking

0.07%

0.03%

Loans and advances

0.07%

0.03%

Debt securities, including UoP

Equity instruments

Households

19.54%

0.76%

Of which: loans collateralised by residential

immovable property

19.54%

0.76%

Of which: building renovation loans

0.00%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

20.81%

0.79%

0.76%

0.03%



for the financial period ended 31 December 2024

122

Convenience translation in English of the original Romanian version

continued: 4 GAR KPI flow - Turnover based - % (compared to flow of total eligible assets)

% (COMPARED TO FLOW OF TOTAL ELIGIBLE ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION

OF TOTAL NEW

ASSETS

COVERED

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

GAR - Covered assets in both numerator and

denominator

Loans and advances, debt securities and equity

instruments not HfT eligible for GAR calculation

20.81%

0.79%

0.76%

0.03%

22.83%

Financial undertakings

1.20%

0.01%

0.00%

2.97%

Credit institutions

1.20%

0.01%

0.00%

2.93%

Loans and advances

1.20%

0.01%

0.00%

2.93%

Debt securities, including UoP

Equity instruments

Other Financial corporation

0.04%

Of which: investment firms

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: management companies

Loans and advances

Debt securities, including UoP

Equity instruments

Of which: insurance undertakings

Loans and advances

Debt securities, including UoP

Equity instruments

Non-Financial undertaking

0.07%

0.03%

0.37%

Loans and advances

0.07%

0.03%

0.37%

Debt securities, including UoP

Equity instruments

Households

19.54%

0.76%

19.48%

Of which: loans collateralised by residential

immovable property

19.54%

0.76%

19.48%

Of which: building renovation loans

0.00%

Of which: motor vehicle loans

Local governments financing

Housing financing

Other local government financing

Collateral obtained by taking possession:

residential and commercial immovable

properties

Total GAR assets

20.81%

0.79%

0.76%

0.03%

22.83%



for the financial period ended 31 December 2024

123

Convenience translation in English of the original Romanian version

5 KPI off-balance sheet exposures flow - Capex based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-

SHEET ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

Financial guarantees (FinGuar KPI)

37.42%

17.83%

0.07%

12.89%

0.15%

0.01%

0.00%

Assets under management (AuM KPI)

continued: 5 KPI off-balance sheet exposures flow - Capex based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-

SHEET ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS

FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Financial guarantees (FinGuar KPI)

37.57%

17.85%

0.07%

12.89%

Assets under management (AuM KPI)

5 KPI off-balance sheet exposures flow - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

Financial guarantees (FinGuar KPI)

27.20%

6.55%

0.07%

4.87%

0.14%

0.02%

Assets under management (AuM KPI)



for the financial period ended 31 December 2024

124

Convenience translation in English of the original Romanian version

continued: 5 KPI off-balance sheet exposures flow - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Financial guarantees (FinGuar KPI)

27.34%

6.57%

0.07%

4.87%

Assets under management (AuM KPI)

5 KPI off-balance sheet exposures stock - Capex based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

Financial guarantees (FinGuar KPI)

29.86%

14.69%

0.06%

8.39%

0.14%

0.03%

0.01%

0.41%

0.09%

Assets under management (AuM KPI)

22.25%

11.07%

0.64%

5.77%

1.35%

0.32%

0.14%

0.25%

continued: 5 KPI off-balance sheet exposures stock - Capex based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Financial guarantees (FinGuar KPI)

3.68%

34.96%

14.81%

0.06%

8.40%

Assets under management (AuM KPI)

1.57%

2.76%

0.03%

28.21%

11.40%

0.64%

5.91%



for the financial period ended 31 December 2024

125

Convenience translation in English of the original Romanian version

5 KPI off-balance sheet exposures stock - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CLIMATE CHANGE MITIGATION (CCM)

CLIMATE CHANGE ADAPTATION (CCA)

WATER AND MARINE RESOURCES (WTR)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE OF

PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

OF WHICH USE OF

PROCEEDS

OF WHICH ENABLING

Financial guarantees (FinGuar KPI)

22.01%

5.71%

0.05%

3.63%

0.13%

0.03%

0.00%

0.36%

Assets under management (AuM KPI)

15.94%

7.19%

0.44%

4.25%

1.15%

0.14%

0.05%

0.13%

continued: 5 KPI off-balance sheet exposures stock - Turnover based - % (compared to total eligible Off-Balance-Sheet assets)

% (COMPARED TO TOTAL ELIGIBLE OFF-BALANCE-SHEET

ASSETS)

31.12.2024

CIRCULAR ECONOMY (CE)

POLLUTION (PPC)

BIODIVERSITY AND ECOSYSTEMS (BIO)

TOTAL (CCM + CCA + WTR + CE + PPC + BIO)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY RELEVANT SECTORS

(TAXONOMY-ELIGIBLE)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING

TAXONOMY RELEVANT SECTORS (TAXONOMY-

ALIGNED)

PROPORTION OF TOTAL COVERED ASSETS FUNDING TAXONOMY

RELEVANT SECTORS (TAXONOMY-ALIGNED)

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

ENABLING

OF WHICH USE

OF PROCEEDS

OF WHICH

TRANSITIONAL

OF WHICH

ENABLING

Financial guarantees (FinGuar KPI)

6.61%

30.65%

5.75%

0.05%

3.63%

Assets under management (AuM KPI)

2.39%

2.96%

0.07%

22.65%

7.33%

0.44%

4.31%



for the financial period ended 31 December 2024

126

Convenience translation in English of the original Romanian version

Additional disclosure on Nuclear and Gas related activities

1 Nuclear and fossil gas related activities - Green Assets Ratio - Stock

NUCLEAR ENERGY RELATED ACTIVITIES

YES/NO

4.26

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative

electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle

4.27

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce

electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as

well as their safety upgrades, using best available technologies

4.28

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or

process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear

energy, as well as their safety upgrades

YES

FOSSIL GAS RELATED ACTIVITIES

YES/NO

4.29

The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce

electricity using fossil gaseous fuels

4.30

The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and

power generation facilities using fossil gaseous fuels

YES

4.31

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that

produce heat/cool using fossil gaseous fuels

YES



for the financial period ended 31 December 2024

127

Convenience translation in English of the original Romanian version

2 Taxonomy-aligned economic activities (denominator) - CapEx based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.26 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.27 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.28 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.29 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.30 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.31 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator)

- Amount and proportion of other taxonomy-aligned

economic activities not referred to in rows 1 to 6

above in the denominator of the applicable KPI

579,150

0.95%

579,150

0.95%

Taxonomy-aligned economic activities (denominator)

- Total applicable KPI

579,150

0.95%

579,150

0.95%



for the financial period ended 31 December 2024

128

Convenience translation in English of the original Romanian version

2 Taxonomy-aligned economic activities (denominator) - Turnover based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.26 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.27 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.28 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.29 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.30 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator) -

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.31 of Annexes I and II to

Delegated Regulation 2021/2139 in the denominator of

the applicable KPI

Taxonomy-aligned economic activities (denominator)

- Amount and proportion of other taxonomy-aligned

economic activities not referred to in rows 1 to 6

above in the denominator of the applicable KPI

474,341

0.77%

474,341

0.77%

Taxonomy-aligned economic activities (denominator)

- Total applicable KPI

474,341

0.78%

474,341

0.78%



for the financial period ended 31 December 2024

129

Convenience translation in English of the original Romanian version

3 Taxonomy-aligned economic activities (numerator) - CapEx based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.26 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.27 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.28 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.29 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.30 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.31 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of other taxonomy-aligned

economic activities not referred to in rows 1 to 6

above in the numerator of the applicable KPI

579,150

100.00%

579,150

100.00%

Total amount and proportion of taxonomy-aligned

economic activities in the numerator of the applicable

KPI

579,150

100.00%

579,150

100.00%



for the financial period ended 31 December 2024

130

Convenience translation in English of the original Romanian version

3 Taxonomy-aligned economic activities (numerator) - Turnover based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.26 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.27 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.28 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.29 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.30 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of taxonomy-aligned economic

activity referred to in Section 4.31 of Annexes I and II to

Delegated Regulation 2021/2139 in the numerator of the

applicable KPI

Amount and proportion of other taxonomy-aligned

economic activities not referred to in rows 1 to 6

above in the numerator of the applicable KPI

474,341

100.00%

474,341

100.00%

Total amount and proportion of taxonomy-aligned

economic activities in the numerator of the applicable

KPI

474,341

100.00%

474,341

100.00%



for the financial period ended 31 December 2024

131

Convenience translation in English of the original Romanian version

4 Taxonomy-eligible but not taxonomy-aligned economic activities - CapEx based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.26 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.27 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.28 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.29 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.30 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

31,409

0.05%

31,409

0.05%

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.31 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

22,435

0.04%

22,435

0.04%

Amount and proportion of other taxonomy-eligible

but not taxonomy-aligned economic activities not

referred to in rows 1 to 6 above in the denominator of

the applicable KPI

8,174,696

13.34%

8,174,694

13.34%

Total amount and proportion of taxonomy eligible

but not taxonomy-aligned economic activities in the

denominator of the applicable KPI

8,228,540

13.52%

8,228,538

13.52%



for the financial period ended 31 December 2024

132

Convenience translation in English of the original Romanian version

4 Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover based

(RON Thousands)

ECONOMIC ACTIVITIES

AMOUNT AND PROPORTION

TOTAL (CCM + CCA)

CLIMATE CHANGE MITIGATION

(CCM)

CLIMATE CHANGE ADAPTATION

(CCA)

AMOUNT

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.26 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.27 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.28 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.29 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.30 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

10,470

0.02%

10,470

0.02%

Amount and proportion of taxonomy-eligible but not

taxonomy-aligned economic activity referred to in Section

4.31 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

11,965

0.02%

11,965

0.02%

Amount and proportion of other taxonomy-eligible

but not taxonomy-aligned economic activities not

referred to in rows 1 to 6 above in the denominator of

the applicable KPI

8,193,620

13.37%

8,193,613

13.37%

0.00%

Total amount and proportion of taxonomy eligible

but not taxonomy-aligned economic activities in the

denominator of the applicable KPI

8,216,055

13.50%

8,216,048

13.50%

0.00%



for the financial period ended 31 December 2024

133

Convenience translation in English of the original Romanian version

5 Taxonomy non-eligible economic activities

(RON Thousands)

ECONOMIC ACTIVITIES

TURNOVER

CAPEX

AMOUNT

PERCENTAGE

AMOUNT

PERCENTAGE

Amount and proportion of economic activity referred to in row 1

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.26 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of economic activity referred to in row 2

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.27 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of economic activity referred to in row 3

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.28 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of economic activity referred to in row 4

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.29 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of economic activity referred to in row 5

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.30 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of economic activity referred to in row 6

of Template 1 that is taxonomy-non-eligible in accordance with

Section 4.31 of Annexes I and II to Delegated Regulation

2021/2139 in the denominator of the applicable KPI

Amount and proportion of other taxonomy-non-eligible

economic activities not referred to in rows 1 to 6 above in

the denominator of the applicable KPI

52,577,773

85.82%

52,459,020

85.62%

Total amount and proportion of taxonomy-non-eligible

economic activities in the denominator of the applicable

KPI

52,577,773

85.82%

52,459,020

85.62%

E1 - Climate change

Strategies

E1-1 - Transition plan for climate change mitigation

In line with the effort sustained in previous years, in 2024 UniCredit Group SpA adopted a Transition Plan to support the achievement of Net Zero

targets for financed and own emissions and to turn commitments into action. The plan was developed mainly in line with the requirements of the Net

Zero Banking Alliance (NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ), thus responding to the requirements of the CSRD on the E1

climate change standard.

The funded emissions targets, pursued through the Transition Plan and defined for six of the most carbon-intensive sectors, are aligned with the

principles and recommendations set by the NZBA, international standards, best market practice and the 1.5°C pathways

UniCredit SpA Group's ambition is to become a Net Zero bank by 2050 and, in order to move in this direction, intermediate targets for 2030 have been

defined. For more details, please see section E1-4 Climate change mitigation and adaptation targets

The targets have been set considering the UniCredit SpA Group as a whole, in line with its commitment to the NZBA. This approach reflects the belief

in the importance of collective responsibility and alignment at UniCredit SpA Group level when addressing global challenges such as climate change.

By adopting a centralized framework, UniCredit SpA Group aims to encourage the coordination of efforts across all countries in which it operates,

capitalize on synergies between UniCredit SpA Group subsidiaries and maintain a common strategic direction

The Net Zero targets for own emissions (market-based Scope 1 and 2) and financed emissions (Scope 3, category 15) are in line with the objectives

of the Paris Agreement.



for the financial period ended 31 December 2024

134

Convenience translation in English of the original Romanian version

In particular, none of UniCredit SpA Group's subsidiaries is excluded from the EU benchmarks aligned to the Paris Agreement

On a local level, the Group has undertaken to contribute to the objectives and commitments of UniCredit SpA Group. The adaptation of these objectives

and their approval by the Bank's Management has started and is expected to be finalized in the next reporting period

Decarbonization levers and key actions

Own emissions (Scope 1 and 2, market-based)

Although financed emissions represent the largest part of UniCredit SpA Group's environmental impact, managing the operational footprint is essential

to achieve the Net Zero targets.

UniCredit SpA Group's goal is to achieve Net Zero for its own emissions (Scope 1 and 2, market based) by 2030.

The main levers for the Net Zero transition include aquisition of renewable energy, space optimization, energy efficiency measures and transformation

of heating systems. More details on implemented and planned actions can be found in the section on climate change policies (E1-3 Actions and

resources related to climate change policies)

Financed emissions

Financed emissions account for the largest part of UniCredit SpA Group's, and hence the Group's local, environmental impact, therefore reducing

them is considered essential to becoming a Net Zero bank

This is done by working with portfolio clients to define sector-specific strategies to reduce impacts.

The Group has implemented Net Zero strategies since 2024 on the following priority sectors from a locally specific perspective:

Oil and Gas

For the oil and gas sector, traditional business models are under increasing pressure as the effects of climate change worsen and energy security

becomes even more relevant. While investments in clean energy projects are on the rise, customized solutions are needed depending on geography,

uptake industry and infrastructure availability. For this reason, engaging industry will be essential in the coming decades. A key strategic challenge for

oil and gas companies is to align existing skills and capital with the new requirements of the energy transition

In this context, oil and gas players have more opportunities to play a significant role in the energy transition, which is why the Group is supporting the

industry's transition on several fronts:

 Engaging with clients to educate them about transition and make them aware of the importance of clear transition plans as a prerequisite

for funding transition projects

 Rebalancing the loan portfolio

o supporting customers who invest in alternative and more sustainable fuels

o Phase out funding for carbon-intensive activities

 Collaboration on sectoral-led initiatives and new projects for sector technology innovation, even when solutions are not yet fully mature

 Assisting clients in diversifying their activities, helping them to address sector challenges related to the energy crisis, such as the need to

ensure energy security

At Group level, we also rely on the analysis and involvement of UniCredit SpA Group, which believes that this sector is fundamental to the expansion

of crucial technologies such as hydrogen, hydrogen derivatives, biofuels and carbon capture, utilization and storage (CCUS), and therefore promotes

sector initiatives that facilitate their growth and diffusion

For the past three years, UniCredit SpA Group has sponsored the World Hydrogen Congress, which brings together thousands of experts and

professionals, encouraging knowledge sharing and innovation in this emerging industry. Since 2021, it is also a member of the European Alliance for

Clean Hydrogen, set up by the European Commission to support the development of green hydrogen projects to boost the energy transition. These

initiatives are important for UniCredit Group SpA to ensure the best position to scale this technology in all the markets in which it operates, including

Romania.

Biofuels are a cornerstone of achieving the European Green Deal objectives and support the renewable energy targets by fostering energy

independence. This technology also plays an active role in the decarbonisation targets of other European directives such as the Renewable Energy

Directives, which highlight the importance and set quotas for advanced feedstocks when replacing fossil fuels in transport and other industries.

-

biomethane has the lowest carbon abatement cost compared to other renewable fuels, making it a highly efficient technology.

In line with its strategy to support the energy transition, UniCredit SpA Group has supported a number of infrastructure funds, such as DWS, MEAG

and Igneo, in the acquisition and development of their biogas and biomethane portfolios, which aim to expand biofuel production and target advanced

feedstocks that promote the development of the green fuels industry.

The experience with these projects allows UniCredit SpA Group subsidiaries to financially support solid projects throughout Europe, including Romania.

Power Generation



for the financial period ended 31 December 2024

135

Convenience translation in English of the original Romanian version

In Power Generation, the Group's strategy is primarily focused on supporting clients in the transition from fossil fuel-based energy production to more

sustainable energy sources (e.g. renewables). Industry experts work with clients who want to refocus their business model and those who wish to

invest further in renewable energy projects.

A concrete example are entities in the utilities sector that need to rebalance their portfolio of activities/assets towards more sustainable technologies.

The Group can also serve players in the renewable energy sector through project finance initiatives, particularly in wind and photovoltaics, as well as

advisory activities, in coordination with the ESG Advisory function of UniCredit SpA Group.

Automotive

The automotive sector is a pillar of the global economy and at the same time a major contributor to climate change. Road transport in Europe accounts

for about one fifth of GHG emissions. Europe, driven by its ambitious 'Fit for 55' legislation targets, is expected to electrify rapidly as all new cars sold

in the EU will have to be zero-emission by 2035 (Source: europa.eu). However, some European companies have backed away from car electrification

targets, citing challenges such as legislative uncertainties, rising production costs and increased competition.

The Group's strategy for the automotive sector aims to support customers' transition and their objectives, helping them to take advantage of new

market opportunities along their value chain (including electric car battery production, infrastructure management, etc.) as they move to low-emission

vehicles. We rely on the experience of UniCredit SpA Group, which has started working with a number of clients, including some of the most important

car manufacturers on the market, to finance specific projects entirely dedicated to the production of electric vehicles, such as financing a new dedicated

factory. UniCredit SpA Group's holistic industry approach ("In Motion") combines the expertise of all specialists along the entire automotive value

chain, from natural resources to recycling, with the support of investments in new technologies to support the sector in its transformation towards zero-

emission mobility.

The deep industry knowledge and expertise available within UniCredit SpA Group also brings increased confidence to the Group in Romania when

working with our clients to finance these new technologies

Steel

The Group is in the process of implementing the Net Zero strategy for the Steel sector, based on the analysis and considerations of UniCredit SpA

Group.

Decarbonizing the steel industry to Net Zero requires joint efforts from all stakeholders, including regulators, producers and end-customers, to adopt

a unified standard, which is why industry-led initiatives are essential

Steel contributed more than 7% to global CO2 emissions, while demand is expected to continue to grow, classifying it as one of the hard-to-reduce

sectors. UniCredit SpA Group sees this as an essential step in helping the steel industry transition to a greener future, as it continues to support clients

in achieving their ambitions and engages in strategic industry discussions on the development of real investment projects

At the same time, recognizing the importance of collaboration between the financial sector and the steel industry, UniCredit SpA Group is a signatory

to the Sustainable Steel Principles, which was the result of the collaboration of the Steel Climate Aligned Finance Working Group facilitated by the

RMI Climate Aligned Finance Centre. The Principles have helped to establish a sector-specific methodology, access to robust data and a common

platform for measuring and publishing information, which is essential for customer engagement and activation in the real economy.

Therefore, The Group aims to support the decarbonization of the entire steel value chain and actively engages with customers who want to switch

from traditional polluting technology to cleaner production modes that incorporate a multitude of solutions, from hydrogen-based technologies to

electrification of production.

The Group works closely with UniCredit SpA Group experts on these initiatives. We continue to support our clients in their ambitions and engage in

industry-wide strategic discussions around the development of concrete investment projects

The Sustainability Statement of UniCredit Group SpA also details in a structured way other sectors in scope:

 Shipping

 Commercial Real Estate

 Residential Real Estate

and, as the strategies for its subsidiaries are defined, the Group will make all the steps to adopt them and integrate them into specific processes.

At the same time, also for these sectors, in discussions with our clients, we rely on the expertise of UniCredit SpA Group to identify the best financing

strategy to accelerate their transition

Locally, we are also monitoring the progress of the housing sector's regulatory framework and incentive scheme and will continue to support customers

who want to reduce the carbon footprint of their homes by providing a dedicated product offering. In addition, we encourage the collection of energy

performance certificates from our customers, as this is also relevant for improving the quality of our data and improving our calculation methodologies

for the housing sector

Resources to support the UniCredit Transition Plan



for the financial period ended 31 December 2024

136

Convenience translation in English of the original Romanian version

In terms of operational and capital expenditures (OpEx and CapEx) to support the transition plan, UniCredit SpA Group has set up a dedicated Net

Zero project, which was started in 2022 and is coordinated by a multidisciplinary team. More than 150 experts from ESG, Finance, Risk Management,

Business and Digital functions, including subsidiaries, are involved in this project, whose role is to identify, implement and monitor the key actions

needed to define and support the UniCredit SpA Group's transition strategy, as well as to define the strategies and implementation timelines for its

subsidiaries, such as Romania

Throughout 2024, dedicated training sessions were organized for functions and subsidiaries relevant to the Net Zero goal. Thus, also locally, Group

employees in relevant functions were involved in six hours of training, including the basics of Net Zero, the methodology for assessing customers'

transition plans, customers' Net Zero engagement strategies along with the Net Zero implications for the lending process and transition funding.

The volume of financial resources invested in ICT infrastructures for the Action Plan is insignificant.

Aligning the Transition Plan with the Strategy

Within UniCredit SpA Group, including in Romania, customers are at the heart of the decision-making process and actions are directly influenced by

their needs. UniCredit SpA Group's, and therefore the Group's, responsibility is to support our customers in their own fair and equitable transition as

we progress towards our ESG objectives

The Group's ESG Strategy contributes to the Net Zero commitment and Transition Plan of UniCredit SpA Group, and is based on both the new ESG

Strategic Framework and the UniCredit SpA Group ESG Strategy

UniCredit SpA Group is working to increasingly integrate Net Zero into core banking processes such as financial, risk and business processes. As of

2023, UniCredit SpA Group has embedded Net Zero into existing planning processes through target setting, sharing and monitoring activities, assigning

clear responsibilities within the existing governance framework. UniCredit SpA Group has also incorporated Net Zero key performance indicators in

the Risk Appetite Framework (RAF)

Locally, during 2025, the Group will establish dedicated Net Zero KPIs within its Risk Appetite Framework (RAF). In addition to ensuring the right

organizational commitment, we are also aligning our remuneration policy to the Net Zero targets. For more details on our remuneration policy, please

see the ESRS1 section.

UniCredit SpA Group's Transition Plan focuses on continuing and strengthening customer support, accelerating their transition and providing them

with appropriate advice and tools, as well as financing solutions tailored to their needs. Clients and communities are also supported by financing

renewable energy projects and energy efficiency efforts.

Both at the UniCredit SpA Group level and locally within the Group, business functions are focused on supporting clients that are more advanced in

their decarbonization strategy and on engaging clients that are still at an early stage of their transition process. Therefore, a specific methodology and

process based on a dedicated Climate and Environment Questionnaire has been developed in order to assess and group customers according to their

transition process. In addition, sectoral policies have been implemented committing the Group to stop financing controversial high carbon emitting

activities such as thermal coal-fired power generation and the highest impact operations in the oil and gas industry (e.g. oil sands, hydraulic fracturing,

ultra-deepwater drilling, Arctic mining, etc.) and to phase out similar funding that was provided in the past before the policies came into effect.

Policies are continuously updated to ensure that the latest developments in related risks are taken into account and managed appropriately

The UniCredit SpA Group Transition Plan was approved by the CEO of UniCredit SpA Group at the Group Executive Committee meeting and reviewed

by the Board of Directors in February 2024. The same formal process was followed for the approval and revision of the Net Zero interim targets for

2030 prior to the disclosure

The local adaptation of the Transition Plan by the Group is in preparation and should be finalized in the next reporting period.

Progress in implementation of the Transition Plan

Throughout the year, UniCredit SpA Group turned commitment into action, involving all relevant functions in all the countries in which it operates,

towards the Net Zero transition plan. For more details, please see section E1-4 Targets related to climate change mitigation and adaptation

Starting from the inaugural plan, approved in 2023, the activities identified on the basis of UniCredit SpA Group's ESG strategy, regulatory

developments and stakeholder expectations have been updated. The plan has been adapted to take into account the new Net Zero sectors (i.e. steel,

commercial real estate, residential real estate and shipping), as UniCredit SpA Group aims to support customers in these sectors in their transition

process. The UniCredit SpA Group believes that it is essential to continue the momentum in this dynamic context and to properly manage all emerging

issues in order to achieve the Net Zero objectives

In 2024, UniCredit SpA Group has made significant progress in its journey towards Net Zero in terms of implementation plan, governance and

stakeholder dialog and has made preparations for the implementation of the Transition Plan in the countries where it operates, including at the level

of UniCredit Romania

Plan



for the financial period ended 31 December 2024

137

Convenience translation in English of the original Romanian version

In order to operationalize the objectives, UniCredit SpA Group has established a cross-functional implementation plan, which defines how Net Zero

considerations are integrated into all core activities and decision making, focusing on the following key components

1. Target setting - structurally incorporating Net Zero into the planning process and targets, both at UniCredit SpA Group level and locally at

subsidiary level, including Romania

2. Monitoring - effective tracking of progress against objectives and, in the event of deviations, identifying the most appropriate remedial

action

3. Risk management - the appropriate management of the various risks (reputational risk, climate and environmental risk and credit risk)

related to clients' transition to sustainable business models

4. Products and services - truly supporting customers in their transition to Net Zero

5. Supporting tools - providing relevant information for carrying out activities in this space.

1. Target setting

The target setting process is an essential element of aligning with the requirements set out in the NZBA. The process involved a cross-functional

working group with active support from ESG, risk management, finance and business functions

UniCredit Group SpA initially set a set of interim targets for 2030 for the Oil & Gas, Power and Automotive sectors, and then added new interim targets

for the Steel sector in January 2024, with those for the Maritime Transport and Commercial Real Estate sectors to be set in July 2024, together with

the 2022 baseline for the Residential Real Estate sector in 2024.

For more details, please see section E1-4 Climate change mitigation and adaptation targets

To strengthen the strategic direction of UniCredit SpA Group, the planning process was adapted to incorporate the new commitments, so that once

the 2030 targets were set, they were distributed across divisions and subsidiaries

In Romania, the Group is in the process of implementing the targets for the locally relevant sectors (Oil and Gas, Electricity, Automotive and Steel),

which will be available for the next reporting period.

2. Monitoring

UniCredit SpA Group has established a dedicated process to track the evolution of Net Zero key performance indicators against baseline targets. This

is essential for efficient and timely management of the loan portfolio in line with NZBA requirements. The Net Zero monitoring process requires close

collaboration between all functions involved in Net Zero (Risk Management, Financial, ESG, Digital and Business) given the complexity of the process

of calculating, setting and distributing targets

The process involves both tracking the evolution of exposures on existing customers and regularly updating climate data to calculate climate impacts.

Following the implementation of the new monitoring process, starting in 2024, business functions and subsidiaries, including Romania, receive regular

reports on the evolution of Net Zero impacts, including all the basic factors needed to manage the Net Zero portfolio.

The Group receives regular monitoring reports on locally relevant sectors: from 2024 for the Oil and Gas, Power Generation and Auto sectors and

from the beginning of 2025 for the Steel sector.

3. Risk management

Following the commitments on sustainability and Net Zero, continuing and building on previous efforts to incorporate climate and environmental risks

in recent years, UniCredit SpA Group has started integrating Net Zero considerations into the Risk Management Framework for the three priority

sectors: Oil & Gas, Power Generation and Automotive

In concrete terms, it was done by:

 updating the oil and gas sector policy by integrating Net Zero provisions as a driver for assessing and analyzing reputational risks

 introducing specific key performance indicators linked to our Net Zero objectives in the Risk Appetite Framework (RAF)

 Launch more comprehensive qualitative guidelines to incorporate Net Zero commitments into credit risk strategies

 Define and incorporate Net Zero customer strategies into the lending process

During 2024, UniCredit SpA Group strengthened its approach, evolving and extending the components of the risk management framework described

above to new sectors.

Specifically, Net Zero's customer strategies have aimed to continually tailor the approach to the needs and stages that customers are in, identifying

transition leaders, customers who are aligning to transition, and customers who are laggards vis-à-vis transition. This approach allowed for

differentiated engagement strategies depending on customer group and sector, ranging from maintaining/expanding our relationship with the leaders

to actively engaging aligning customers and phasing out support to those laggards. In all cases, UniCredit SpA Group considers green and transition

finance as a key lever to support the transition of our clients, especially for those who are not yet leaders in the transition process.



for the financial period ended 31 December 2024

138

Convenience translation in English of the original Romanian version

To ensure that the approach is based on solid ground and that UniCredit SpA Group, and consequently the Group actively support our clients

e, and to strategically

engage with them on their decarbonisation strategy.

Based on internationally recognized frameworks and initiatives on transition planning (e.g. GFANZ, CDP, CA100+), UniCredit SpA Group has

developed a cross-sector questionnaire, measuring qualitative and quantitative elements to assess the completeness of its clients' transition plans,

including current and forward-looking key indicators such as historical emissions, targets, risk management, governance and strategy in place.

Based on the coverage of these indicators, questions and answers are converted into a qualitative score on a scale from 0% to 100% that determines

three possible ratings (transition strategy developed, transition strategy in early stage and transition strategy absent). In 2024, UniCredit SpA Group

started testing this approach with pilot cases and plans to extend it to all customers in our Net Zero sectors. This approach is a fundamental part of

the Net Zero engagement strategy. It also facilitates discussions with existing and potential clients on new opportunities to finance the transition and

mitigate potential risks

Moreover, in 2024 the Group locally approved Net Zero strategies for customers in the priority sectors (Oil & Gas, Power Generation and Auto) and

incorporated them into the lending process.

4. Products and services

The UniCredit SpA Group supports many of its clients with dedicated products such as green loans (aligned to market standards such as the EU

Taxonomy or ICMA), green financing in partnership with public entities at local and European level, sustainability linked lending (SLL) and many others.

Supporting clients with dedicated transition finance has become essential to achieve Net Zero targets

At the end of 2023 UniCredit SpA Group established its own internal definition of transition finance based on the recommendations of the European

Commission and included it in the ESG Product Guidelines, which is applied in all countries where UniCredit SpA Group operates, including Romania.

In 2024, the Group implemented the ESG Product Guidelines, which define a comprehensive methodology for the homogenous classification and

reporting of ESG products and services, as well as eligibility criteria and, at the same time, safeguards against the risks of greenwashing and

socialwashing.

The guidance also requires clients to have third-party certified transition plans in place to access funding for transition purposes to ensure that the

necessary funding is dedicated to eligible transition initiatives

Finally, to effectively identify which of our products are most effective for our clients, we will continue to leverage our dedicated ESG functions, such

as our ESG Advisory team, which helps colleagues across the business network to analyze clients' ESG needs and identify the most appropriate

products to support them

To ensure that we identify the most appropriate solutions for our clients, the Group actively participates in the development and local adaptation of

transition financing and advisory programs.

5. Supporting tools

In order to provide all involved functions with the relevant Net Zero information and methodologies needed to effectively implement the Transition Plan,

UniCredit SpA Group is constantly improving its support tools, including by introducing new functionalities, for example

 Introducing functionality to assess customers' transition plans into existing tools

 Display relevant Net Zero data by client (including impact, cluster and recommended strategy) leveraging on existing dashboards

 Simulate the impact of Net Zero at single transaction and portfolio level through dedicated tools

 identification and segregation of transactions aimed at supporting clients' transition, based on the internal definition of transition finance

(based on European Commission recommendations and included in the ESG Product Guidelines)



for the financial period ended 31 December 2024

139

Convenience translation in English of the original Romanian version

The tools are being gradually rolled out locally across the Group from 2024 and are available to business functions, being support within the credit

process.

Moreover, as of March 2023, UniCredit SpA Group has joined the Open-es partnership, an alliance bringing together entrepreneurial and financial

networks. Through Open-es, UniCredit SpA Group has strengthened its support to clients in their journey towards a sustainable business model, with

an innovative, digital platform that provides an ESG score, provided by the Cerved Rating Agency, and enables the tracking of clients' decarbonization

trajectory

All the additional tools and neIw functionalities described above have been designed and refined over the last two years, with the involvement of cross-

functional working groups from ESG, Risk Management, Business and Digital.

At the end of 2024, the Group started the implementation of the Open-es partnership at local level.

Governance

To support the commitment to Net Zero, in 2022 UniCredit SpA Group has launched a dedicated Net Zero project which is coordinated by a cross-

functional team, bringing together teams from ESG, Finance, Risk Management, Business and Digital functions and aims to identify and implement

the key actions needed to define and support the Transition Plan

Net Zero considerations are increasingly being incorporated into core processes such as planning, risk management and business processes as a

strategic component of the Transition Plan. At the same time, Net Zero key performance indicators are being incorporated into the Risk Appetite

Framework (RAF), as discussed in the Risk Management section.

At local level, the Group's ESG function is responsible for the implementation of the Net Zero framework, ensuring the necessary capacities and

relevant skills. As far as our clients are concerned, we rely both on the local expertise built up over the past years and on the ESG functions at UniCredit

SpA Group level.

Our training has focused on key skills and knowledge necessary for Net Zero decision making, including basic training on Net Zero fundamentals,

methodology for evaluating client transition plans, Net Zero engagement strategies and their implications for the lending process, and transition

financing and its applicability to Net Zero clients. We plan to offer new courses to meet the learning needs arising from the expansion of our goals and

sectors

Dialogue with stakeholders

UniCredit SpA Group is a signatory of the Net Zero Banking Association (NZBA) and actively participates in the working groups that contribute to the

new thematic standards and guidelines. In addition, an active dialog is maintained with policy makers and regulators on Net Zero through industry

associations such as the Institute of International Finance (IIF), the Association for Financial Markets in Europe (AFME) and the European Banking

Federation (EBF), which provide information and suggestions on the role of financial institutions in achieving climate goals, the development of

transition plans, and the framework for transition financing

ESG Day is an important framework for strengthening dialog with stakeholders. In 2024, UniCredit SpA Group organized the second edition of the

ESG Day "A challenged future: choosing the path ahead": the event, with over 13,000 participants, was structured as an experience to offer concrete

solutions to customers. The session entitled "A zero-sum game? Resolving sustainability trade-offs", which hosted relevant guests from the energy

sector, highlighted the need to manage conflicting interests as part of the transition through meaningful action, balancing environmental, social and

biodiversity issues

ESG Day was also organized locally in Romania, through a parallel event with physical presence and over 120 participants. The local event was

attended by clients as well as academics, NGOs, supranational institutions and experts in the field. In addition to launching the "Skills for Transition"

program, the Group launched the postgraduate course "ESG Reporting and Sustainable Finance" (in partnership with the West University of Timisoara)

and presented the 2024 editions of ESG Journey and ESG Lab.

More details are available in section S3-2 - Processes for engaging affected communities on impacts.

Impact risk and opportunity management

The climate-related and environmental risks

E1- Climate Change:

Climate change has become increasingly important in recent years and this is reflected in global frameworks such as the Paris Agreement and the UN

2030 Agenda for Sustainable Development. Specifically, the process of identifying and assessing climate change impacts, risks and opportunities has

been based on the recognition that climate change has consistently been among the significant issues for the Bank, both internally and in terms of



for the financial period ended 31 December 2024

140

Convenience translation in English of the original Romanian version

POTENTIAL CLIMATE-

RELATED RISKS

TIME HORIZON

MAIN POTENTIAL IMPACTS

SPECIFIC ACTIONS

OVERARCHING ACTIONS

financing. In parallel, the Bank promotes awareness of climate-related issues among its clients and its commitment is materialized by supporting

energy efficiency initiatives and renewable energy financing projects.

As described in the Strategy chapter, UniCredit's approach to climate and other environmental issues is based on tangible actions that generate direct

and indirect impacts. We are committed to limiting negative impacts and generating positive impacts to preserve natural capital for the benefit of our

communities as well as ourselves

Our strategic approach is based on the concept of double materiality, which considers both an inside-out and an outside-in perspective.

The inside-out perspective: involves managing the direct and indirect environmental impacts of our operations and lending

Indirect impacts - accompanying our customers in their green transition journey by

 assessing and monitoring the exposure of our portfolio to most climate-related sectors

 identifying and assessing climate impacts

 adopting a sectoral policy framework

 Defining the path to Net Zero for emissions in the portfolio

Direct impacts - reducing our environmental footprint by

 Driving our own emissions behavior towards Net Zero

 purchasing electricity from renewable sources

 improving energy and space efficiency

 promoting resource efficiency

The outward looking inward perspective: involves preparing to measure the trade consequences of climate stress and the associated socio-

economic transition and to seize emerging opportunities by

 execution of our Group strategy

 Proper management of climate and environmental risks in line with our Risk Appetite Framework (RAF) and the climate stress testing

requirement

The table below provides an overview of each identified climate risk, its potential impact, the corresponding time horizons (short, medium and long

term) and the actions taken to monitor and mitigate these risks.

Transition risks

Changes in or

introduction of public

policies and/or

environmental

regulations

Short and medium/long-

term

Reduction of business for

corporate clients with

potential drawbacks on

creditworthiness/

solvency

Financial implications

arising from

environmental/ESG

regulations and GHG

emission limits and/or

taxes applied to clients

operating in specific

economic sectors

Reduction of Group profits

deriving from

concentration on

sectors more sensitive

to climate-related risks

Inclusion of ESG risks

considering both

counterparty scoring

(including the use of an

internally developed

questionnaire) and

energy performance

certificates (EPC) when

assessing credit

applications

Enhancement of Market

and Liquidity risk

framework

to incorporate

the assessment,

monitoring and control of

ESG risks

Integration of industry

steering signals within

the Credit Risk

Definition of data

governance processes

and related IT

investments to integrate

ESG risks into the risk

management framework

Participation of UniCredit

SpA Group in

international working

groups and

commitments related to

climate, such as the Net

Zero Banking Alliance,

stakeholder

engagement initiatives

and active collaboration

with policy makers

Risk identification process

and materiality

assessment, including



for the financial period ended 31 December 2024

141

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POTENTIAL CLIMATE-

RELATED RISKS

TIME HORIZON

MAIN POTENTIAL IMPACTS

SPECIFIC ACTIONS

OVERARCHING ACTIONS

Transition risks

Technological changes

Short and medium/long-

term

Increase in costs for

corporate clients with

potential drawbacks on

creditworthiness/

solvency

Strategies framework,

based on relevant

Climate &

Environmental (C&E)

factors

stress tests, to evaluate

the significance of

climate- related risks in

the short, medium and

long-term horizons

Transition risks

Changes in customer/

consumer preferences

Short and medium/long-

term

Reduction of business for

corporate clients with

potential drawbacks on

creditworthiness/

solvency

Potential changes to the

offering of products and

services to clients

Inclusion of specific KPIs

related to transition and

physical risks within the

Risk Appetite

Framework. The risk

appetite is then

cascaded to more

granular levels via risk

strategies and policies

Promoting a sustainable

culture within the

organisation by

developing ESG training

courses and workshops



for the financial period ended 31 December 2024

142

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POTENTIAL CLIMATE-

RELATED RISKS

TIME HORIZON

MAIN POTENTIAL IMPACTS

SPECIFIC ACTIONS

OVERARCHING ACTIONS

Physical risks

Acute

Extreme weather

events, such as floods,

droughts, heavy

rainfalls, heatwaves,

fires and hail

Chronic

Chronic weather

events, such as

variations in average

temperatures and sea

level rise

Short and medium/long-

term

Financial implications

resulting from

corporate /retail

clients being

damaged by

extreme weather

events, potentially

impacting their

creditworthiness/

solvency

Potential damage



infrastructure and

the potential

disruption of

activities

Increase in energy

supply costs due to

higher

heat/electricity

demand

Inclusion of ESG risks

considering

counterparty scoring

Monitoring of physical

risks both on

counterparties within

portfolio and

individual collaterals

Definition of data

governance

processes and

related IT

investments to

integrate ESG risk

into the risk

management

framework

Participation of

UniCredit SpA

Group in

international

working groups

and

commitments

related to climate,

such as the Net

Zero Banking

Alliance,

stakeholder

engagement

initiatives and

active collaboration

with policymakers

Potential fires, driven

by rising

temperatures,

affecting areas in

proximity to the



Potential impact of sea

level rise on

buildings located

near the sea

Reduced productivity

due to higher

temperatures

Risk identification

process and

materiality

assessment,

including stress

tests, to evaluate the

significance of

climate-related risks

in the short, medium

and long-term

horizons

Inclusion of specific

KPIs related to

transition and

physical risks within

the Risk Appetite

framework. The risk

appetite is then

cascaded to more

granular levels via

risk strategies and

policies

Promoting a

sustainable culture

within the

organisation by

developing ESG

training courses and

workshops



for the financial period ended 31 December 2024

143

Convenience translation in English of the original Romanian version

Climate Risk Management

The s from climate-

related risks. To achieve this goal, the Bank is integrating climate and environmental factors into its risk management processes and procedures.

Climate Risk management encompasses the identification, measurement, and monitoring of these risks as well as the implementation of mitigation

measures. The Bank actively engages and supports its corporate clients in transitioning to a lower carbon business model, fully exploiting green

business opportunities. Furthermore, the Bank aims to assist its clients in achieving a just transition, ensuring fairness throughout the process.

Risk Identification

identification process covers ESG risks dimensions, where E includes Climate Change.

The Bank conducts an annual risk identification process which is a comprehensive framework to proactively identify all potential risks the bank may

e list of the quantitative and qualitative

risks to which the Bank is or may be exposed. The risk identification process enables Bank to assess which risks are, or are likely to be, material

considering their exposures. Material risks are determined annually using a quantitative approach that involves assessing the risk level against the

materiality threshold.

 expectations, the

nsition risk drivers, considering that



Environmental, Social & Governance (ESG) risks pertain to any adverse financial consequences that may arise for the Bank due to the existing or

prospective impacts of ESG factors on its clients or invested assets:

 Climate and Environmental (C&E) factors are related to the quality and functioning of the natural environment and its systems and include

factors such as climate change, biodiversity, energy consumption, pollution and waste management.

 Social and Governance factors, for which the Bank assigned an impact on reputational risk, revolve around the rights, well-being and

interests of individuals and communities and include governance arrangements for the environmental and social factors in the policies and

procedures of clients.

In coherence with the "Recommendations of the Task Force on Climate-related Financial Disclosures" (2017), climate-related risks can be divided into

two major categories: (i) risks related to the transition to a lower-carbon economy and (ii) risks related to the physical impacts of climate change,

described in detail below.

Transition risks refer to the risks arising from the transition to a lower-carbon economy, which may entail extensive policy, legal, technology, and

market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, pace, and focus of these

changes, transition risks can pose different levels of financial and reputational risk for organisations.

 policy and legal risks stemming from continuously evolving policy actions, attempting to either constrain actions that contribute to the

adverse effects of climate change or seeking to promote adaptation to climate change, and from litigation or legal risks;

 technology risk stemming from technological improvements or innovations that support the transition to a lower-carbon, energy-efficient

economic system and that can have a significant impact on organisations to the extent that new technology replaces old systems and

disrupts some parts of the existing economic system;

 market risk stemming from the potential shifts in supply and demand for certain commodities, products and services;

UniCredit SpA Group

signinged (2022)

the Finance for

Biodiversity Pledge

(FfB) and

participated as

member to the

working table on

Biodiversity of the

UNEP FI (United

Nations Environment

Programme Finance

Initiative)



for the financial period ended 31 December 2024

144

Convenience translation in English of the original Romanian version

    from the

transition to a lower-carbon economy.

Physical risks refer to the risks related to the physical impact of climate change. These types of risk can be event driven (acute) or long-term shifts

(chronic) in climate patterns and, as such, their effects can be felt both in the short and medium/long-term horizon.

 acute physical risks are event-driven, including increased severity of extreme weather events (e.g., droughts, floods, etc.);

 chronic risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures).

The connections between climate risk drivers and the risks faced by banks are referred to as transmission channels. The likelihood and magnitude of

the impact of climate risk drivers can be affected by a number of additional variables. These include: the geographic location of the bank, the assets

or exposures involved, the interactions and interdependencies between transmission channels and climate risk drivers that can amplify impacts and

mitigating measures that can reduce or offset impacts.

agement framework. The

figure below illustrates the climate-related risk drivers, relevant transmission channels and risk types that may be affected.

IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities

Integration of climate risk into risk framework - short/medium/long term impacts

With particular reference to the identification and monitoring of Climate Change, an annual portfolio materiality assessment, integrated into the Double

eraction with strategy and

       -related risk drivers which may materially impact the portfolio at single risk category level,

leveraging on common metrics and a unique threshold for risks and time horizons, through scenario analysis. For each risk and under the short- (12

months), medium- (2030) and long-term (up to 2050), the metrics are defined according to an annualized unexpected loss concept, while the threshold

for a risk driver to be identified as material is set consistently with the internal ICAAP materiality threshold.

The set of climate scenarios considered for the analysis is provided by a qualified external provider and is meant to assess and quantify potential

vulnerabilities for the short and medium/long-term horizons. The main climate assumptions embedded in the scenarios in terms of transition policies

ge pathways to properly

assess the impact of physical and transition risk drivers. The scenarios are extended with a more comprehensive set of variables (climate and macro-



CLIMATE-RELATED RISK

DRIVERS

Physical risk drivers

 Acute

 Chronic

Transition to low carbon Economy

risk drivers

 Policy changes

 Technological changes

 Behavioural/consumer

preferences changes

 Client or community perception

changes

TRANSMISSION

CHANNELS

 Carbon price/carbon tax

 New climate-related regulations

 Stranded assets

 Damages to property

 Shifts in prices and asset values

 Increased volatility of asset prices

 Lower asset performance

 Operational disruption

 Productivity changes

 Losses of business opportunity

 Dispute, claims

 Interest rates level

 Changes in  habits

 Changes in  expectations

 Political decisions

 Energy Performance Certificates

 Insurance availability/affordability/

pricing

RISK TYPES POTENTIALLY

IMPACTED

 Credit Risk

 Market Risk

 Operational Risk

 Reputational Risk

 Business Risk

 Real Estate Risk

 Inter-risk diversification



for the financial period ended 31 December 2024

145

Convenience translation in English of the original Romanian version

In particular, a central scenario (namely, Baseline), which considers the current Transition policies, the central macro-economic outlook and climate

assumptions similar to the International Energy Agency (IEA) STEPS scenario incorporating policies deemed sufficiently credible to materialize into

action, as well as two polarized stressed scenarios with very low probability of occurrence are considered. To account for the pure climate risk impact,

a Baseline Counterfactual scenario is considered, removing from the Baseline scenario any impact deriving from climate risk.

-risk scenario analysis are described below.

The outcome on the Baseline scenario, shows the low magnitude of transition and physical risks in all the three considered horizons.

As described above, the portfolio materiality assessment is the starting point allowing to identify the risk drivers which shall be included in the overall

risk management framework to properly manage, monitor and mitigate them.

Within the overall risk management framework, the potential impacts of climate risks have been incorporated in methodology IFRS9 provisioning and

into the Internal Capital Adequacy Assessment Process to evaluate the capital adequacy of the bank relative to climate-related risks. The latter,

performed through scenario analysis, envisages the full coverage of risk types (e.g., credit risk, market risk, etc) and the integration of forward-looking

elements. The impact on capital need estimates shows that the Ba-, medium- and long-term.

The integration of transition risk and physical risk into RAF and into credit portfolio is described in the sections below. Moreover, additional details are

reported also for Financial and Non-Financial risks, considering their relevance for UniCredit group.

Integration of climate risk into RAF

he risk capacity a bank is

-term and long-term str

Supervisory Board.

The Risk Appetite Framework (RAF) is composed of three key elements:

 Risk Appetite Statement (RAS) - provides a strategic view of and guidance on the target risk profile and is expressed via qualitative

statements;

 Risk Appetite Dashboard - quantitative KPIs with related targets and risk tolerance thresholds for proactive risk steering;

 Risk Strategies - ensure the cascading of the Risk Appetite to more granular levels via operative indicators, limits and controls.

The Bank has in place a dedicated Risk Appetite Statement, including also Climate & Environmental (C&E) risks, incorporating 

commitment to assist its clients in a just and fair transition and the continuous integration of C&E risks within the Risk Management framework.

Dedicated quantitative C&E risk related KPIs have been included in the Risk Appetite since 2024, addressing both transitional and physical C&E risks.

As of 2024, the following C&E KPIs are included in the Risk Appetite and quarterly monitored at Bank/Group level:

 High Transition risk exposure KPI - 

transition path towards a lower-carbon economy, based on information retrieved through Climate and Environmental Questionnaire during

credit application.

 Physical risk KPI - designed to measure potential damages that extreme climate-related acute physical risks events could cause to the



ENERGY DISORDER

Physical risk stressed scenario.

Narrative: Increased protectionism in energy,

whose demand primarily met with fossil fuels,

and other strategic sectors on top of no

effective policy actions to address climate

change, resulting in high emissions and

severe temperature increase

The scenario also considers physical damage

estimates attributed to changes in temperature

volatility and the increasing likelihood of acute

events.

DELAYED TRANSITION

Transition risk stressed scenario.

Narrative: policies are introduced in 2030,

starting the transition. The delayed start

implies that a more stringent policy is

required to achieve similar climate outcomes

by 2050, resulting in greater economic

impacts. Aggressive and uncertain carbon

taxation policies cause substantial

inflationary pressures, stranded assets and

financial instability. Government carbon tax

revenues are sufficient to cover the fiscal

costs of the transition

BASELINE

Central scenario.

Narrative: Projection of commitment and

measures currently adopted by different

countries. Climate assumptions aligned





for the financial period ended 31 December 2024

146

Convenience translation in English of the original Romanian version

As of the 2025 RAF, the KPI Net Zero defined on the following 3 priority sectors with the same metrics used to set 2030 targets (financed emissions

and physical intensity), to steer accordingly the portfolio :

 Oil & Gas: Financed Emissions (MtCO2e)

 Power generation: Physical intensity (gCO2e/kWh)

 Automotive: Physical intensity (gCO2/vkm)

Specifically, in 2025, specific additional KPIs will be monitored at UniCredit SpA Group level for Residential Real Estate (no RAF target/thresholds),

being the 2030 target not externally communicated as for other sectors.

Being an integral part of the Group Risk Appetite monitoring process, C&E KPIs are subject to an escalation process (in the case of risk threshold

breaches) with related corrective/mitigation actions to be defined, when needed. The Supervisory Board is informed of the breach and remedy actions

(if any) on a quarterly basis in the periodical information sharing process.

In the following sections, the integration of transition risk and physical risk into credit portfolio will be further described. Additional details are reported

also for Financial and Non-Financial risks.

Integration of transition risk into credit portfolio  Credit Risk strategy and counterparty level

The Bank has been working on the identification, measurement, monitoring and mitigation of transition risk. The transition risk of the portfolio is

measured with different metrics, including the distribution of the credit portfolio by industry.

A comprehensive approach has been adopted to assess and manage transition risk; the Risk Management Framework (RAF) defined is fully consistent

with the RAF and is based on three pillars:

 specific reputational risk policies set--

 dedicated Industry steering signals, based on relevant C&E factors included in the Credit Risk Strategies framework;

 assessment at single client level, leveraging also on a dedicated C&E questionnaire.

In particular, the Credit Risk Strategies, reviewed at least once a year, are an important tool for ensuring inclusion of the relevant C&E factors in the

credit risk strategy of corporate clients. Industry steering signals (underweight, neutral, overweight) and related industry limits embed all relevant C&E

factors, leveraging a heatmap based on harmonised transition risk scores (integrating C&E questionnaire where available, on a selected portion of the

clients) by economic activity.

nnaire is based on a

set of both cross-industry questions (in total 11 considering the different sections) and industry-specific questions (an additional two for specific

sectors), measuring qualitative and quantitative current and forward-looking key indicators across the following three main drivers.

The three main drivers of the C&E questionnaire are:

 C&E exposure - the five questions allow an analysis of the current level of exposure of the Economic Group under assessment: (i) level of

Greenhouse Gas (GHG) emission (Scopes 1, 2 and 3); (ii) water consumption, (iii) energy consumption; (iv) waste production and recycling;

 C&E vulnerability - the four questions allow an analysis of the climate change management maturity level on a forward-looking basis,

t;

 Economic impact - the two questions allow an analysis of the potential impacts on corporate client financial and industrial performance in

terms of cost and revenues.

Three steps are applied in order to determine the questionnaire result as shown below:

1 QUESTIONNAIRE

11 cross-industry and 2 industry-

specific C&E related qualitative-

quantitative questions

3 RESULTS AND MATRIX

The sum of weighted score positions

each counterpart on the Transition

Risk Assessment matrix

2 SCORING & WEIGHTING

Questions and answers converted into

homogeneous scores on a scale from 1

to 5 and weighted by relevance

enabling differentiation



for the financial period ended 31 December 2024

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In detail:

 calculation of question-specific indicators based on the answers provided (a penalty system is in place and applied when information could

not be retrieved);

 conversion of indicators, related to single questions, to standardize the scores of different responses and guarantee comparability of results;

 weighting of question-specific scores according to a pre-defined table (that takes into account the relevance of the questions) and calculation

of the summary score for the different dimensions:

 sum of question-specific scores (and penalties if necessary) for each question in the Exposure cluster; the result is plotted on the vertical

axis of the matrix;

 sum of question-specific scores (and penalties if necessary) for each question in the Vulnerability cluster; the result is plotted on the

horizontal axis of the matrix;

 determination of C&E score ratings (1-Low; 2-Medium- Low; 3-Medium-High; 4-High Risk), as shown in the matrix below.

Scoring methodology matrix

In order to guarantee the robustness of the model and the correctness of the data collected, specific controls have been put in place and a mask

dedicated to the uploading of documents used by the relationship manager to collect the data has been set up in order to verify the sources and

correctness of the information. The results of the climate and environmental assessment are integrated in the credit application, allowing the decision

maker to effectively take climate and environmental factors into account during the credit decision phase.

A specific process, factoring in transition risk and physical risk evaluation (together with reputational risk and Net Zero whenever relevant), has been

implemented in order to address the inclusion of Climate and Environmental considerations into the overall evaluation of the client. Leveraging on

transition risk score, the process application results in specific strategies (in terms of eligible products) to steer the corporate portfolio's exposure

fostering the clients' green transition and reducing at th

More in details, in case the client is subject to high or very high transition risk, the strategy foresees prevalence or exclusivity of ESG related products,

respectively. Outcome of physical risk assessment at counterparty level is meant to complement the strategy with the request of physical risk mitigation

action whenever available.

Transition risk at collateral level

With the aim of measuring transition risk associated with assets accepted as collateral to fulfil regulatory obligations (Pillar 3, EU Taxonomy, Stress

Tests) and meet managerial needs, a collection initiative of Energy Performance Certification (EPC) data has been conducted:

 for the stock, where the data could not be punctually retrieved, the Bank leveraged on external specialised providers, which developed an

estimation model.

 for the new flows, the following transition risk KPIs are collected and properly taken in consideration during origination phase:

o Energy Performance Certification label (EPC);

o Primary Energy Demand (PED) measured as kWh/sqm;

o CO2 emissions;

o Energy Performance Certification label issuance year.



for the financial period ended 31 December 2024

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Convenience translation in English of the original Romanian version

Such information has been integrated into the ESG Global IT Infrastructure and is available on the local mortgage platforms at the origination stage.

Physical risk in the credit portfolio

Physical risk is carefully monitored for both counterparties within the Bank's portfolio and individual collateral assets. This involves the assessment of

a wide range of hazard events, with particular attention given to the following:

 material hazard events related to physical risk at counterparty level; and

 material hazard events related to physical risk at collateral level.

Material hazard events related to physical risk at counterparty level:

TYPE OF PHYSICAL

RISK (ACUTE/

CHRONIC)

Acute

MATERIAL

PHYSICAL RISK

HAZARD EVENT

Landslides

DESCRIPTION OF

THE PHYSICAL RISK

HAZARD EVENT

Risk of landslide events,

long historical data

METRIC/APPROACH

Annual probability of

event with high severity

SPATIAL

RESOLUTION

grid 200

metres/census

cell

SOURCE

Third party Data &

Bundesanstalt für

Geowissenschaften

und Rohstoffe &

Istituto di Ricerca per

la Protezione

Idrogeologica

Acute

Floods

Risk of flood events,

related to waterways and

heavy rain events,

predictive model

Annual probability of

event with high

severity, return period 50y

grid 100

metres/census cell

Third party Data &

Istituto Superiore per

la Protezione e la

Ricerca Ambientale

(ISPRA)

Acute

Wind (Extreme

wind-related

events)

Probability of extreme wind

events based

on storm footprint,

measured on Beaufort

scale, return period 50y

Annual probability of

extreme events (11-12

Beaufort scale)

grid H3

Third party Data

Acute

Wildfire

Risk classes depending

on days with high fire risk

subject to the type of

environment in which the

company is located,

Representative

Concentration Pathways

(RCP) 4.5 scenario

Average days/year with

high fire risk, subject to

type of environment

grid 4 kilometres

Third party Data &

European Space

Agency (ESA)

Data &

Copernicus Data

Acute

Extreme waves

(extreme waves,

storm surges)

Probability of having storm

surges and high energy

waves

Wave height in RCP 8.5

with a return period

of 50y

grid 25 kilometres

Third party Data

Acute

Frost occurrence

Probability of cold events

(frost, even of short

duration), predictive model

Average number of

events by years

grid 10 kilometres

Third party Data

Acute

Heat

occurrence

Probability of hot events

(even of short duration),

predictive model

Average number of

events by years

grid 10 kilometres

Third party Data



for the financial period ended 31 December 2024

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Convenience translation in English of the original Romanian version

Material hazard events related to physical risk at collateral level:

TYPE OF PHYSICAL

RISK (ACUTE/

CHRONIC)

Chronic

MATERIAL

PHYSICAL RISK

HAZARD EVENT

Sea level rise

DESCRIPTION OF

THE PHYSICAL RISK

HAZARD EVENT

Estimates the sea level

with various

meteorological models

METRIC/APPROACH

Sea level rise

hazard zones defined on

Elevation Index (driven

by coastal topography)

and sea level rise Index

(driven by sea level rise).

The sea level rise hazard

information is available

for different scenarios

SPATIAL

RESOLUTION

30 metres

resolution for

flooding hazard by

sea level rise

globally

SOURCE

Third party data: Sea

level rise zones were

modelled based on

high- resolution

elevation data from

elevation model and

sea level rise

projections from

climate models

TYPE OF PHYSICAL

RISK (ACUTE/

CHRONIC)

Acute

MATERIAL

PHYSICAL RISK

HAZARD EVENT

Heat waves

DESCRIPTION OF

THE PHYSICAL RISK

HAZARD EVENT

Probability of heat waves

(extreme hot event > 3

days), historical data

METRIC/APPROACH

Number of events (>

3 days) observed in a

60y period

SPATIAL

RESOLUTION

grid 10 kilometres

SOURCE

Third party Data

Acute

Aridity

Probability of aridity

phenomena (ratio

precipitation/

evaporation), predictive

model

Mean annual precipitation

(P)/mean annual

evapotranspiration (ETP)

grid 500 metres

Third party Data

Chronic

Rainfall soil

erosion

Severity of soil erosion due

to rainfall, scenario RCP

4.5

R factor

grid H3

Third party Data

Chronic

Shoreline

erosion

Score representing the

erosion compared to the

present, RCP 4.5

Meter of erosion,

scenario RCP4.5 in

2050

grid 200 metres

Third party Data

Chronic

Sea level rise

Estimates the sea level

with various

meteorological models

Max wave height in

2050, return period in

50y

grid 25 kilometres

Third party Data



for the financial period ended 31 December 2024

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Convenience translation in English of the original Romanian version

Acute

Flood:

 River Floods

 Flash Floods

 River floods: Risk of

river flood events,

related to waterways

and heavy rain events

 Flash floods are short-

term events which can

be produced by

multiple thunderstorms

with heavy rain over

one area

 River floods: global

climate model and

global land surface

models estimate

changes in peak

water runoff at

hydrological basin

resolution. These

changes in peak

runoff are then used

to scale current river

flood maps.

The projections are

available in different

scenarios

 Flash floods: the flash

flood map is based on

meteorological data, as

well as soil, terrain and

hydrographic data

(slope and flow

accumulation). The

meteorological data

includes the amount,

variability, and extreme

behaviour of rainfall

 River floods: 30

metres

 Flash floods:

approximately

250 metres

Third party data:

 River floods:

Geoweb natural

hazard maps

 Flash floods:

soil-sealing maps

(detected by

looking at

impervious

surfaces),

curvature (from

global multi-

resolution terrain

elevation data),

slope and flow

accumulation (from

conditioned terrain

data)

as modifiers to

generate the final

flash flood map

TYPE OF PHYSICAL

RISK (ACUTE/

CHRONIC)

Acute

MATERIAL

PHYSICAL RISK

HAZARD EVENT

Storms

DESCRIPTION OF

THE PHYSICAL RISK

HAZARD EVENT

Storms (including

blizzards, dust and

sandstorms):

extratropical storms and

storm surges

METRIC/APPROACH

 Extratropical storms:

The main variables of

the exposure analysis

are forward

wind, maximum wind

speed, minimum central

pressure, radius of

maximum wind speeds,

track of the centre (eye)

in 3 to 6 hourly

intervals

 Storm surges: multiple

wave heights are

simulated for each

coast and the

maximum expansion

calculated. Wind

speeds and bathymetry

data were also taken

into account

SPATIAL

RESOLUTION

 Extratropical

storms:

approximately 5

kilometres

 Storm surges:

approximately

30 metres

SOURCE

Third party data



for the financial period ended 31 December 2024

151

Convenience translation in English of the original Romanian version

Acute

WildFire

Risk classes depending

on days with high fire risk

subject to the type of

environment in which the

company is located, RCP

4.5 scenario

Fire Weather Index

(FWI) combining the

probability of

ignition, the speed and

likelihood of fire spread

and the availability of fuel.

Approximately 1

kilometre

Third party data:

modelled according to

daily information on

temperature,

precipitation, humidity

and wind

Acute

Hail

Heavy hailstorms are

usually triggered by wide

cold fronts. Occasionally,

local hot weather

thunderstorms  a result

of intense insolation over

land or mountain slopes 

also lead to severe

localized hailstorms.

Global standardized

records of

meteorological data.

hailstorm map is

based on a number

of atmospheric

conditions with the

potential to create a

hailstorm. The

following parameters

were taken into

account for the

calculation:

 



 





Average annual

potential height of

fall of hail [m]

Third party data

Financial Risk

With regards to financial risks (market risk, liquidity risk and counterparty credit risk), several concrete initiatives have been implemented over the

last years to further integrate C&E risk into the financial risk management framework. The key pillars of the approach followed include:

 an overall methodological approach for incorporating C&E drivers within the Financial Risk framework has been refined within UniCredit

SpA Group, leveraging on a combination of assessment methodologies. The methodological framework measures transition and physical

risks within the Financial Risk relevant perimeter. For this purpose, both internal (transition) risk scores as well as externally sourced

scores are applied.

 exposure to Stress Test on dedicated climate scenarios are monitored regularly;

 the assessment of C&E drivers is planned to be incorporated into the process for evaluating new financial products.

In April 2022, the market risk stress testing program was enhanced with a dedicated climate risk scenario which extends the ECB short-term

disorderly transition scenario. Moreover, since October 2022, the monthly reporting and monitoring framework has been enhanced by incorporating

transition and physical risks and in December 2022 the Climate risk stress test scenarios were further increased. In September 2024 the Baseline

Counterfactual scenario, which does not include any impact from Climate risk, was introduced. This scenario is used to identify the climate risk which

may materially impact the portfolio in the Stressed Scenarios, as well as in the Baseline scenario, by neutralizing the pure macro-economic outlook

from the estimates.

The materiality for financial risk is assessed via the standard ICAAP framework as described earlier and is complemented by further concentration

analyses and stress scenarios. Based on these assessments, combined also with qualitative considerations on the Gr

appears to be no materiality of climate & environmental drivers on market risk exposures.

Similarly, the outcome of the liquidity impact of climate risks reveals a limited materiality of the exposures to these risks also in ILAAP.

Climate risk could cause material net cash outflows or depletion of liquidity buffers, mainly stemming from the financial impact on the held assets of a

 indirectly, from the process of adjustment towards a



for the financial period ended 31 December 2024

152

Convenience translation in English of the original Romanian version

lower-carbon and more environmentally sustainable economy (i.e., transition risk). According to the definition of physical and transitional risk, the

transmission of climate risk to liquidity comes through the following channels:

 Counterbalancing Capacity (CBC): risk premia on securities of carbon-intensive issuers (transitional risk) or issuers particularly exposed to

extreme climate events (physical risk) could increase, deteriorating the market value of the liquidity buffer;

 Deposits: withdrawals of deposits mainly due to high liquidity needs and credit losses that could stem from corporate clients with high CO2

emissions, which could have to adapt their technologies and production plants to more carbon-neutral economies (transitional risk) or from

customers hit by severe weather events (physical risk), which reduce profitability and potentially increase credit risk and liquidity needs;

 Undrawn credit and liquidity facilities, whose usage might increase for the same reasons listed for deposits;

 Market valuation changes on derivatives transactions climate related price shocks and increased market volatility may result in increased

derivative exposures and related margin-calls.

Additionally, the transition risk might appear if the Group itself fails in adapting its practices to the new climate regulations, thus leading to reputational

impacts. Such a risk is regularly monitored through the name crisis scenario of the liquidity stress test.

In order to assess the materiality of the liquidity risk arising from climate factors related with deposits and committed lin

classified according to a climate risk score defined through an internal questionnaire or acquired by external information providers. A stressed liquidity

outflow ratio (from granted committed lines or from outstanding deposits) is applied on those customers labelled with high or medium high risk: the

underlying assumptions of the impact analysis is that these customers will have increased liquidity needs comparable to those simulated in the severe

internal liquidity stress test analysis.

The potential deterioration or the value of the counterbalancing capacity or the change in the value of derivatives (generating margin calls) is estimated

by applying specific climate scenarios to the most relevant market variables (the same scenarios used in the ICAAP analysis).

The above-described effects are applied to the operative maturity ladder and the liquidity coverage ratio to assess the climate risk impact on the short-

term perspective. Similarly, the effects are applied to the net stable funding ratio to simulate the structural liquidity changes produced by the above-

described simulations.

The resulting impact is compared with the internal inherent risk severity thresholds.

In general, longer-term effects (on the balance sheet structure) are low both for transitional and physical risk, as the liquidity structure of the Group

balance sheet is sound and ensures enough time to absorb potential climate related changes. In case physical risk materializes the channel through

which the risk would transmit to liquidity is mostly from the potential deposit outflows.

As far as the short-term effects (direct impacts on liquidity) are concerned, the exposure to physical risk is classified as medium-low: the impact of

deposit outflows has a higher weight on short term metrics.

Also, for transitional risks the impacts are negligible on the longer-term horizon. Short-term metrics are instead more impacted both by the potential

higher usage of deposits from customers with high or medium high exposure to transition risk and from the potential margin calls connected with the

higher volatility of commodity prices. The overall impact for the Group will remain anyway medium low, according to the internal severity scale. Both

for physical and transitional risks the identified impacts (classified as medium-low) can be easily absorbed by the liquidity buffers available in the

Group.

Non-financial risk

Non-financial risks can be influenced by environmental factors in general and by climate change in two ways:

 Reputational risk: Risk for the Group of being perceived and criticised for supporting activities and projects through its financial products

and services that can harm the environment and contribute to worsening climate change scenario;

 Operational risk: Risk for the Group of facing temporary disruption or unavailability of key premises (e.g. data centres, operational centres,

headquarters) or for the discontinuity of services provided third-parties due to adverse extreme climate conditions.

The Group has implemented adequate processes to mitigate the above-mentioned risks.

With regards to reputational risk, the Group defines Reputational Risk as the current or prospective risks of negatively affecting/diminishing the

                 lients,

shareholders/investors, regulators, employees, debtholders, market analysts, civil society, NGOs, media and other relevant parties.

The management of reputational risk relies on:

 setting clear general rules and guidelines for:

o defining the profile of business relationships (with clients as well as with other relevant counterparties such as suppliers) and

operations (mainly financial support, but also investments and other financial products and services offered) that the Group is

available to manage and develop;



for the financial period ended 31 December 2024

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o defining the profile of what the Group does not consider to be in line with its foundation principles and reputational standards.

These rules and guidelines are designed to ensure alignment with laws, internal and external regulations, best practices within

the sector and reflect the risk appetite and the sensitivity of the Group;

 setting additional specific rules and guidelines for sectors considered sensitive (Coal, Oil & Gas, Defence, Nuclear, Mining, Water

Infrastructures) and contributing to the Group commitments for specific topics (Rainforest, Tobacco, Human Rights, Natural

Capital/Biodiversity);

 requiring the evaluation of the conformity to the rules and guidelines mentioned above;

 ensuring compliance with the rules mentioned above for each operation in scope to sensitive sector requirements, performing a specific

Reputational Risk Assessment involving the dedicated Reputational Risk function and other specialist/competent functions (e.g., ESG,



 setting conditions, controls or limitations, where deemed necessary, in order to reduce the material residual Reputational Risk for Group,

regardless of the sector applied for the analysed case;

 independently from the sector, evaluation of the liability/litigation risk that can derive from supporting a deal which could produce a negative

environmental or social impact, when the deal is under the Equator Principles (EP) framework;

 taking the right decisions at the right level of authority in cases of potential reputational risk.

rovisions and rules

described in specific internal regulations listed below for addressing the risks associated to six «sensitive sectors»:

In addition, the Group has signed specific commitments regarding its exit from the tobacco industry and from activities that favour deforestation or

forest degradation, this also being applicable for our Group.

The inclusion/addition of a sector among the sensitive ones and the provisions of the existing ones are renewed on a continuous basis, taking into

account the evolution of the market and the sensitivity of the Group towards these sectors.

For each sensitive sector, the internal regulatory framework covers the following aspects:

the scope of the sector (type of subjects and activities);

the forbidden activities (activities that the Group is not willing to support with its financial products and services, e.g., controversial weapons, nuclear

weapons, coal-related activities, oil and gas activities in the Arctic region);

the classification of clients:

i) Class A - clients completely in line with the provisions of the applicable regulatory framework and for which the Group is willing to provide full

financial support;

ii) Class B - clients that are partially in line with positive transitions and moving in line with the applicable regulatory framework. The Group is willing

to support these clients with its financial products and services, refraining from providing other types of financial products and services that do

not align with the transition towards more sustainable practices;

COAL

MINING

OIL & GAS

WATER INFRASTRUCTURE

NUCLEAR

(for energy generation)

Fossil Fuel

Environmental

Sensitive

Group Reputational Risk Framework

DEFENCE

(including nuclear weapons)

ALL THE SECTOR / ALL THE RELATIONSHIPS



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iii) Class C - the Group

is not willing to provide any kind of financial support. In these cases, a phase-out of the business relationship may be considered.

The Group has defined a process for assessing Reputational Risk, identifying cases where a dedicated assessment is necessary.

The decision-making structures responsible for assessing cases of reputational risk can vary according to their relevance and to the alignment with

the policy provisions. Cases that envisage a specific relevance in terms of Reputational Risk are brought to the attention and decision of the Local

Non-Financial Risks Committee (LNFRC). Cases where reputational risks are deemed to be of significant relevance are submitted to the Holding

company for further validation (Non Binding Opinion - NBO).

Any unplanned and unforeseen situations related to a specific relationship or deal and not aligned with the standard provisions of the policy are

evaluated case by case. Expert judgement is required for evaluating the alignment of the case with Group general principles on Reputational Risk.

Any decisions must diligently consider the provisions of the applicable policy and the characteristics and context of the case under examination.

In order to assess the resilience of third-party service providers with regard to climate change, the third-party assessment (performed during onboarding

of new suppliers, then every year) has been enhanced by also considering the business continuity plans adopted to manage potential adverse climate

events.

We have identified several potential opportunities arising from the transition to a low-carbon economy that have an impact on

both Group business and operations. These opportunities are described in the table below:

E1-2 - Policies related to climate change mitigation and adaptation

The UniCredit SpA Group's, and by extension the Group's, commitment to Net Zero emissions is promoted through specific climate change policies

that address the significant impacts, risks and opportunities resulting from the assessment of double materiality:

Impact

 the generation of direct and indirect greenhouse gas emissions (Scope 1 and 2)



for the financial period ended 31 December 2024

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 generation of indirect GHG emissions produced in the value chain as a result of business activities carried out by actors in the downstream

value chain (Scope 3 - category 15 only)

 the generation of indirect GHG emissions in the value chain as a result of the trading activities of upstream and downstream value chain

actors (Scope l 3 - All categories except financed emissions)

 Promoting climate change awareness and commitments and accelerating the green transition by supporting energy efficiency initiatives

and renewable finance projects among counterparties

Risks

 Credit risk: the impact on the credit risk portfolio due to deterioration in customers' creditworthiness as a result of acute and chronic event

damage to customers' facilities and production plants and to the decline in the recoverable amount/market value of collateral as a result of

acute and chronic event damage

Opportunities

 investments in implementing green/environmental projects

 creating new products and services to support customers in the transition towards their decarbonization goals

 investing in/financing green technologies (start-ups) and possibly accessing new markets (e.g. carbon trading)

At the local level, the Group has taken on the UniCredit SpA Group's commitments on climate change mitigation, with specific regulations in place.

In particular, the Smart Office Workplace Rule focuses on optimizing energy consumption and reducing greenhouse gas emissions in bank offices.

Sector policies (covering civil nuclear infrastructure, coal, defense, mining, oil and gas, tobacco and water, and civil nuclear infrastructure) address

climate change adaptation and mitigation strategies in the Group's loan portfolio: these policies aim to manage the GHG emissions financed and

mitigate risks associated with the financial stability of clients who may be affected by climate-related events that could damage their production facilities

and reduce the market value or recoverability of collateral. In addition, the ESG Product Guidelines include a comprehensive methodology for

classifying and reporting ESG offerings, with a focus on energy efficiency financing, renewable energy deployment and climate change mitigation and

adaptation initiatives: this represents an opportunity for the Group to invest in green projects while creating new ESG products

For more details on climate-related policies, please refer to the MDR-P section Policies adopted to manage material sustainability issues.

E1-3 - Climate change policy actions and resources

The types of decarbonization levers for both own and financed emissions are addressed in section E1-1 - Transition Plan for Climate Change

Mitigation.

Net Zero progress and planned actions

Financed emissions

In this report, we do not include local targets for funded emissions (Scope 3, category 15) due to methodological limitations and limited data availability.

We are focused on developing the necessary mechanisms for robust reporting and alignment with future regulations. We will review this decision as

the reporting framework becomes clearer and more applicable.

Own emissions

In 2024, the Group's greenhouse gas emissions from its own operations amounted to: 1,189 tCO2e (Scope 1); 108 tCO2e (market-based Scope 2);

1,310 tCO2e (location-based Scope 2); 1,763 tCO2e (Scope 3 - excluding category 15). For this Communication, comparisons with historical data are

not possible as this is the first local report.

Indeed, we adhere to the same standards that we expect from our partners and have set well-defined targets to limit our environmental footprint, in

particular reducing greenhouse gas emissions from our own operations. This includes reducing energy consumption mainly through space optimization

measures, purchasing electricity from renewable sources, improving the energy efficiency of our premises and data centers, and transforming our

heating systems by switching from fossil fuels to more sustainable sources.

With a hybrid way of working, we have optimized our head office footprint by vacating selected buildings and creating newly renovated spaces, while

improving the occupancy of our premises during holiday periods.

In most of our buildings, we continue to work to strengthen our energy efficiency efforts.

Furthermore, we seek to improve the management of heating, ventilation and air conditioning (HVAC) and lighting, optimizing both energy consumption

and workplace comfort.

The Group's Guidelines for Dedicated Energy Management Measures, launched in late 2022 in response to the global energy crisis, allow for continued

reductions in our energy consumption through specific actions, including reduced heating and cooling system operating hours, sustainable temperature

benchmarks and reduced lighting time.



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What's more, sourcing renewable energy is a crucial step on our journey to Net Zero in terms of own emissions. For example, in 2024, 98.5% of

purchased electricity consumed in operationally controlled premises came from renewables.

UniCredit SpA Group's target is set at Net Zero for its own emissions (market-based Scopes 1 and 2) by 2030. Within the premises we occupy, our

efforts to achieve this target consist in reducing as much as possible our own operational consumption and in purchasing energy from green/renewable

sources.

In 2024, at UniCredit SpA Group level, a total cash--mentioned related actions in

the real estate portfolio.

 real estate buildings

impacting on the Net Zero own emissions target.

Including at local level, we will continue to work on the following levers:

 space optimization;

 energy efficiency;

 electricity purchased from certified renewable energy sources.

It should be noted that the financial resources allocated to the action plan (CapEx), mainly related to the insignificant ICT investments, are accounted

for under "100. Intangible fixed assets". The amount of CapEx related to the actions reported above is reflected in the table "9.6 Tangible fixed assets

used in operations: annual changes", Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets, while the related operating

expenses (OpEx) are reflected in the table "12.5 - Other administrative expenses: breakdown", Notes to the consolidated accounts, Part C -

Consolidated profit and loss account.

The availability of ICT resources and human resources is crucial for carrying out activities related to the following key components of our implementation

plan as described above. Lack or misallocation of identified resources could jeopardize the success or feasibility of the action plan.

Our action plan was funded from the Information and Communication Technology budget and the Human Resources budget.

The current financial resources referred to in the previous paragraph relate mainly to CapEx, which is reflected in the table "9.6 Property, plant and

equipment used in operations: annual changes", Notes to the consolidated accounts, Part B - Consolidated balance sheet - Assets.

Metrics and targets

E1-4 - Climate change mitigation and adaptation objectives

Commitments to regional and global alliances have been made, as for most European banking groups, at UniCredit SpA Group level. This means that

the targets set for achieving Net Zero emissions are set at UniCredit SpA Group level for some of the most polluting sectors, aligned with the principles

and guidance presented by the Net-Zero Banking Alliance (NZBA), international standards, market best practices and trajectories to limit warming to

1.5°C

The Net Zero targets have been defined taking into consideration the UniCredit SpA Group as a whole, in line with the commitment to the NZBA. The

approach reflects our belief in the importance of collective responsibility and consistency at Group level when addressing global challenges such as

climate change. By adopting a centralized framework, we aim to promote coherence in our efforts, capitalize on synergies between Group entities and

maintain a unified strategic direction. Naturally, Romania, being part of the UniCredit SpA Group, has adhered to its objectives.

At the UniCredit SpA Group level, we have committed to the following steps towards our climate change mitigation and adaptation targets

Net Zero targets on own emissions

As part of the NZ Commitment, UniCredit SpA Group has committed to Net Zero emissions across its operations (market-based Scopes 1 and 2) by

2030, with no intermediate targets. This goal is compatible with limiting global warming to 1.5°C and aligned with the Paris Agreement.

At UniCredit SpA Group level, a working group has been set up to publish information on the target and monitor our Net Zero trajectory. Also, by

organizing training programs on Net Zero emissions and involving UniCredit SpA Group's Real Estate and Strategy and ESG functions, it is ensuring

that awareness of this fundamental goal is raised among employees. This has provided colleagues with an excellent opportunity to gain knowledge

and insights on how to jointly contribute to achieving Net Zero, both for UniCredit SpA Group and all relevant stakeholders.

Renewable energy supply is a crucial step on the road to Net Zero in terms of its own emissions, along with space optimization, energy efficiency and

heating system transformation. In addition to sourcing renewable energy, UniCredit SpA Group is committed to improving the space and energy



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efficiency of its buildings. Moreover, over the next few years, a significant number of fossil fuel heating systems will be converted to high-efficiency

electric heat pumps or district heating. Therefore, our Net Zero target enables the management of significant climate impacts, risks and opportunities

and is aligned with climate policy objectives. For further details please see MDR-P in ESRS 2.

According to the UniCredit SpA Group strategy, the most effective way to manage emissions is to report emissions from facilities over which we have

complete control. Therefore, with regard to our own emissions, in the light of the Net Zero strategy, the segmentation of the inventory of premises in

use is applied, distinguishing between those assets for which we have operational control and those for which we do not. Consequently, emissions

from leased assets for which there is no operational control are not reported in Scope 1 and/or Scope 2 emissions and are reported in Scope 3

emissions.

At local level, the Group supports UniCredit SpA Group's commitment to the Net Zero targets.

Net Zero targets on financed emissions

The actions and progress on emissions financed towards UniCredit SpA Group's Net Zero 2030 interim targets are reported in the UniCredit SpA

Group Sustainability Statement for each sector and refer to 2023, in line with the latest climate data available to clients. The Net Zero targets are

aligned with climate-related policy objectives (for more details see the MDR-P table).

The process of defining the baseline scenario and targets involved a large cross-functional working group, with support from ESG, Risk Management,

Finance and Business functions. It involved the development of a dedicated internal methodology to calculate the emissions baseline and project its

potential future trajectory, based on Net Zero market benchmarking practices (SBTi, PCAF, IEA) and sectoral guidelines (e.g. by NZBA). It has also

required gathering new information from external and internal data sources and using tools to model the future evolution of funded emissions.

According to NZBA, science-based decarbonization scenarios were used. In selecting a baseline scenario for defining intermediate targets for 2030,

the main considerations were: the level of ambition of the scenario (i.e. whether it aligns with the Paris Agreement temperature targets), the credibility

of the scenario provider, the possibility of calculating geographical breakdown and the level of detail provided for customization.

The UniCredit SpA Group has referred to the International Energy Agency's (IEA) Net Zero 1.5°C scenarios, deriving, where necessary and possible,

sector-specific benchmarks (e.g. IEA NZ 2050 for oil and gas, power generation, cars, steel and shipping) and the CRREM v.2.01 scenario for

commercial real estate (also aligned to the 1.5°C reduction), adapted to the UniCredit SpA Group portfolio and geographical areas

The year 2021 was chosen as base year as UniCredit SpA Group became a member of the Net Zero Banking Alliance in that year. For funded

emissions, the 2021 and 2022 baselines defined so far have been confirmed and do not require any adjustment. The UniCredit SpA Group's targets

are also monitored on an annual basis and the Group is part of the monitoring process.

For more details on UniCredit SpA Group's decarbonization targets, please refer to the UniCredit SpA Group Sustainability Statement, section E1-

4 Climate change mitigation and adaptation objectives

E1-5 - Energy consumption and energy mix

Energy consumption and mix

ENERGY CONSUMPTION AND MIX

31.12.2024

a) Total fossil energy consumption (MWh)

8,682

Share of fossil sources in total energy consumption (%)

50.43%

b) Consumption from nuclear sources (MWh)

Share of consumption from nuclear sources in total energy consumption (%)

i) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal

waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)

ii) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources

(MWh)

8,535

iii) The consumption of self-generated non-fuel renewable energy (MWh)

c) Total renewable energy consumption (MWh)

8,535

Share of renewable sources in total energy consumption (%)

49.57%

Total energy consumption (MWh)

17,217



for the financial period ended 31 December 2024

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of which: high climate impact sector

ENERGY CONSUMPTION AND MIX

31.12.2024

1) Fuel consumption from coal and coal products (MWh)

2) Fuel consumption from crude oil and petroleum products (MWh)

3) Fuel consumption from natural gas (MWh)

6,097

4) Fuel consumption from other fossil sources (MWh)

5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)

2,585

6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)

8,682

Share of fossil sources in total energy consumption (%)

7) Consumption from nuclear sources (MWh)

Share of consumption from nuclear sources in total energy consumption (%)

8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal

waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)

9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources

(MWh)

10) The consumption of self-generated non-fuel renewable energy (MWh)

11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)

Share of renewable sources in total energy consumption (%)

Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)

Energy intensity per net revenue for high climate impact sectors

ENERGY INTENSITY PER NET REVENUE FOR HIGH CLIMATE IMPACT SECTORS

31.12.2024

Total energy consumption from activities in high climate impact sectors per net

revenue from activities in high climate impact sectors (MWh/RON million)

Connectivity of energy intensity based on net revenue with financial reporting information

million RON

31.12.2024

Net revenue from activities in high climate impact sectors used to calculate energy intensity

Net revenue (other)

3,479

Total net revenue (Financial statements)

3,479

The biogenic CO2 emissions from the combustion or biodegradation of biomass, biofuel, biogas or other bioenergy sources from Scope 1 consumed

by the Group shall be 0 tCO2e.

As regards biogenic CO2 emissions from the combustion or biodegradation of biomass, biofuel, biogas or other sources of bioenergy sources, these

sources, and therefore emissions, are not relevant to the sector in which our Group operates.

E1-6 - Gross emissions Scope 1,2,3 and total GHG emissions

GHG intensity based on net revenue

GHG INTENSITY BASED ON NET REVENUE

31.12.2024

Total GHG emissions (location-based) per net revenue (tCOeq/RON million)

1,220.05

Total GHG emissions (market-based) per net revenue (tCOeq/RON million)

1,219.70



for the financial period ended 31 December 2024

159

Convenience translation in English of the original Romanian version

Total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3

RETROSPECTIVE

31.12.2024

Scope 1 GHG emissions

Gross Scope 1 GHG emissions (tCOeq)

1,189

Scope 2 GHG emissions

Gross location-based Scope 2 GHG emissions (tCOeq)

1,310

Gross market-based Scope 2 GHG emissions (tCOeq)

108

Significant scope 3 GHG emissions

Total Gross indirect (Scope 3) GHG emissions (tCOeq)

4,242,041

1. Purchased goods and services

1.1.Cloud computing and data center services

2. Capital goods

5. Waste generated in operations

6. Business travel

153

7. Employee commuting

670

8. Upstream leased assets

839

13. Downstream leased assets

15. Investments

4,240,278

Total GHG emissions

Total GHG emissions (location-based) (tCOeq)

4,244,540

Total GHG emissions (market-based) (tCOeq)

4,243,338

It should be noted that no operating controls were identified for any of the entities consolidated using the equity method. All entities controlled but not

consolidated for reasons of financial significance (for further details, reference is made to the notes to the consolidated accounts, Part A - Accounting

policies, Section 3 - Scope and methods of consolidation) have been considered as not significant and from a sustainability perspective.

UniCredit SpA Group's targets set for achieving net-zero emissions in some of the most carbon-intensive sectors are aligned with the principles and

guidelines outlined by the Net-Zero Banking Alliance (NZBA), international standards, market best practices and the 1.5°C warming pathways.

Our greenhouse gas inventory of own emissions applies the operational control approach. Scope 1 therefore includes emissions from sources owned

or controlled by the Group, which include direct energy consumption, road travel and refrigerant leakage. Scope 2 includes emissions from electricity,

steam and heating/cooling purchased and consumed by equipment or systems owned or controlled by the Group. Scope 3 includes emissions from

the consumption of copying paper; purchased Information and Communications Technology services; purchased IT equipment and furniture; employee

home working; business air and rail travel; glass, paper, cardboard, cardboard, box and plastic disposal; operation of upstream and downstream

leased assets, calculated taking into account the market-based method.

The sources of emission factors applied to our greenhouse gas inventory are reported below, broken down by Scope.

Scope 1:

 DEFRA, UK Government greenhouse gas conversion factors for company reporting (2024), for stationary combustion, business travel and

refrigerant leakage.

Scope 2:

 DEFRA, UK Government greenhouse gas conversion factors for company reporting (2024), for district heating;

location-based method and market-based method where applicable;

 Association of Emission Agencies (AIB), 2023 European Residual Mixes, V.1.0 (2024), for electricity consumption, market-based method

(for EU countries). The AIB does not report emission factors for gases other than CO2, so market-based Scope 2 emissions are expressed

in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent),

as inferred from the relevant technical literature; International Tracking Standard Foundation, (I-REC(E) Residual Mix (2023 data), for

electricity consumption, market-based method (non-EU countries). Emission factors for gases other than CO2 are not reported, so market-

based emissions are expressed in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG

emissions (CO2 equivalent), as inferred from the relevant technical literature;



for the financial period ended 31 December 2024

160

Convenience translation in English of the original Romanian version

 2024 Green-e® Residual Mix Residual Mix Emissions Rates (2022 Data), for electricity consumption, market-based method (for the U.S.).

Emission factors for non-CO2 gases are not reported, so the market-based Scope 2 emissions are expressed in tons of CO2; however, the

percentage of methane and nitrous oxide has a negligible effect on total greenhouse gas emissions (CO2 equivalent) as inferred from the

relevant technical literature.

Scope 3 (except category 15):

 CEPI, CEPI statistics (2023), for copy paper usage;

 EUROSTAT - Environmental Statistics and Accounts; Sustainable Development (Consumption Based Accounting Tool; 2023), for

purchased ICT services, IT equipment and furniture;

 DEFRA, UK Government Greenhouse Gas Conversion Factors for company reporting (2024) for business travel, waste disposal and home

working;

Sources of emission factors for energy consumption at leased assets not under operational control:

 DEFRA, Greenhouse gas conversion factors for company reporting (2024), for stationary combustion and district heating consumption;

 Association of Emission Agencies (AIB), 2023 European Residual Mixes, V.1.0 (2024), for electricity consumption, market-based method

(for EU countries). AIB does not report emission factors for gases other than CO2, so the related market-based emissions are expressed

in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent),

UniCredit SpA Group, for electricity consumption, if applicable, i.e. if no residual mix is available;

 The International Tracking Standard Foundation, (I-REC(E) Residual Mix, (2023 data), for electricity consumption, market-based method

(non-EU countries). Emission factors for gases other than CO2 are not reported, therefore the associated market-based emissions are

expressed in tons of CO2; however, the percentage of methane and nitrous oxide has a negligible effect on total GHG emissions (CO2

equivalent) as deduced from the relevant technical literature;

 2024 Green-e® Residual Mix Residual Mix Emissions Rates (2022 Data), for electricity consumption, market-based method (for the U.S.).

Emission factors for non-CO2 gases are not reported, so the market-based Scope 2 emissions are expressed in tons of CO2; however, the

percentage of methane and nitrous oxide has a negligible effect on total greenhouse gas emissions (CO2 equivalent) as inferred from the

relevant technical literature.

Currently, for our own operations, this circumstance does not appear to be applicable as we do not have a different reporting period from our value

chain entities. The information we use to calculate GHG emissions for own operations is based on consumption or expenditure data.

None of the emission calculations are based on primary greenhouse gas emission data.

Scope 3 GHG emission categories that have been excluded

Category 3, Fuel and energy-related activities not included in Scope 1 or Scope 2: this category is not considered sufficiently relevant in view of the

use of energy as a financial institution.

Category 4, Upstream transmission and distribution: as a financial institution, this category is not considered sufficiently relevant to be calculated.

Category 9, Downstream transmission and distribution: as a financial institution, this category is not considered sufficiently relevant to be

calculated.

Category 10, Processing of products sold: as a financial institution, this category is not considered sufficiently relevant to be calculated.

Category 11, Use of products sold: as a financial institution, this category is not considered sufficiently relevant to be calculated.

Category 12, End-of-life treatment of products sold: as a financial institution, this category is not considered sufficiently relevant to be calculated.

Category 14, Franchises: we have no franchises

Reporting limitations taken into account and calculation methods for estimating greenhouse gas emissions Aim 3

The perimeter for calculating categories 1, 2, 5, 8 and 13 is aligned with the perimeter of the financial statements. For categories 6 and 7, the perimeter

corresponds to legal entities that have at least one full-time equivalent employee (FTE). Methodological reference for the calculation of Scope 3

(for categories other than category 15) is GHG Protocol, Technical Guidance for Calculating Scope Emissions. Category 1, Purchased Goods and

Services: Includes emissions from paper consumption for which the average data method has been applied; purchased ICT services for which the

expenditure-based method has been applied; and relative emissions estimated based on the expenditure for purchased ICT services as reported in

our financial statements. While emissions from copier paper consumption are typically not particularly significant for our organization, this source was

nonetheless included in continuity with our greenhouse gas inventory accounting in prior years.



for the financial period ended 31 December 2024

161

Convenience translation in English of the original Romanian version

Category 2, Capital Goods: Includes emissions from purchases of IT equipment, electronics and furniture, for which the expense-based method has

been applied, and the relative emissions estimated based on the respective expenses for the goods purchased as reported in our financial statements.

Category 5, Waste generated in operations: Includes emissions from the disposal of paper, cardboard, plastic, cans and glass, for which the waste

type-specific method has been applied. While emissions from waste disposal are typically not particularly significant to our organization, this source

has nonetheless been included in continuity with our greenhouse gas inventory accounting in previous years.

Category 6, Business Travel: Includes emissions from business travel by air and rail, for which the distance-based method was applied in both cases.

Air travel data were categorized into long (more than 3,700 km), medium (more than 1,000 km - less than 3,700 km) and short (less than 1,000 km)

distances.

Category 7, Employee commuting: Includes only home-work emissions for which the average data method has been applied. Emissions are calculated

based on hours of home-based work performed by employees during the year as recorded in our HR systems. GHG Protocol, Technical Guidance for

calculating Scope 3 emissions indicates that emissions from employees working remotely can be accounted for under this category, although a specific

calculation methodology is not detailed.

Category 8, Upstream Leased Assets: Includes emissions from energy consumption at the upstream assets used by UniCredit Group that are not

under operational control. It also includes emissions from energy consumption at the level of assets owned by the Group, but for which we do not have

operational control over the relative energy sources, such as condominium heating. The asset-specific method and, where appropriate, the average

data method have been applied.

Category 13, Downstream leased assets: Includes emissions from third party energy consumption at the level of assets owned by the Group. The

asset-specific method and, where appropriate, the average data method have been applied.

Category 15 is the most relevant category in Scope 3 for the Group in terms of estimated GHG emissions and the magnitude of counterparty

exposures. The information related to Category 15 - Funded Emissions is also disclosed in Template 1 of the Implementing Regulation 2022/2453;

according to this Regulation, institutions disclose their total funded emissions (Scope 1, 2, 3) and provide the related estimate associated with the

lending and investment activities of the institutions.

Scope 3 emissions (category 15 - financed emissions related to non-financial corporations): the Group uses the UniCredit SpA Group's

calculation methodology which has based its calculation of its financed emissions on the collection of counterparty information (also with the support

of an external provider). UniCredit SpA Group has collected and determined greenhouse gas emissions information in accordance with the PCAF's

Global Standard for Accounting and Reporting of Greenhouse Gas Emissions, in accordance with the following methodologies:

 reported emissions: data disclosed directly by the company in publicly available documents (non-financial statements, sustainability

reports);

 Estimated emissions: data estimated using methodologies aligned with market best practice.

The estimation procedure is based on official data from public sources (Eurostat) on emission intensity, expressed in tons of CO2 per euro of value

added value added, broken down by NACE code and European country. This coefficient is further refined by integrating, where available, more detailed

data for specific NACE/Ateco codes (source: ISPRA / Single Registry for the Emissions Trading Scheme). As part of this refinement process sector

averages derived from the reported data are also used when homogeneous and statistically meaningful samples are available.

Emission intensity per euro of value added is then recalibrated to obtain a measure of intensity per euro of income. Finally, the resulting sectoral

coefficient is applied to the revenue of each enterprise to determine the estimated emissions

The indicators used were chosen according to market practices.



for the financial period ended 31 December 2024

162

Convenience translation in English of the original Romanian version

E1-7 - GHG removals and mitigation projects financed by carbon credits



E1-8 - I Internal carbon pricing

The Group does not apply internal carbon pricing schemes.

E3 - Water and marine resources

Impact, risk and opportunity management

E3-1 - Water and marine resources policies

UniCredit SpA Group's commitment to address water issues is steadily taking shape, although it has not yet materialized into a dedicated policy to

cover the significant impact resulting from the Double Materiality Assessment (DMA) on promoting awareness and commitments on water consumption

and withdrawal at customer level.

However, UniCredit SpA Group, in its continuous monitoring of the market and stakeholder expectations, has identified six sensitive sectors for which

it has adopted an additional dedicated set of provisions and rules described in specific internal regulations. Within our sector-specific regulations,

water management is given particular consideration through the assessment of potential environmental impacts based on internationally recognized

standards.

UniCredit SpA Group is also committed to this theme by adhering to internationally recognized standards. Among others, UniCredit SpA Group has

been committed to the Equator Principles (EP) since their inception in 2003. The EP represent a financial industry benchmark for determining,

assessing and managing social and environmental risks in projects. For projects in non-designated countries, they are based on the IFC Performance

Standards on Environmental and Social Sustainability and the World Bank Group's Environmental, Health and Safety Guidelines, together with World

Bank standards. Water and marine resources topics are addressed in several performance standards, take Resource Efficiency and Pollution

Prevention and Biodiversity Conservation and Sustainable Management of Living Natural Resources.

The UniCredit SpA Group's commitment is also assumed at the local level and, in addition to the regulations dedicated to water infrastructure (large

dams), for example, specific assessments are carried out to limit the risks associated with the Group's reputation:

 The mining industry regulation aims to assess environmental damage or degradation, including loss of habitats and biodiversity, as well

as groundwater, surface water, sediment, soil and air contamination.

 Oil and gas regulations do not allow upstream activities in ultra-deep waters (more than 1500 meters / 5000 feet)

 The Civil Nuclear Regulation provides guidelines and standards, based on those accepted by industry and other stakeholders and

representing best practice, to address the specific challenges posed by the nuclear sector and to minimize the social and environmental

risks associated with the financing of nuclear energy activities, paying particular attention to, inter alia, groundwater.

In addition, the ESG Product Guidelines, implemented in 2024, aims to establish a consistent and comprehensive methodology for categorizing and

reporting ESG offerings, as well as preventing the risks of greenwashing and socialwashing. The Group aims to identify new business opportunities

while contributing to positive impacts.

ESG Product Guidelines provide a classification of green loans. From 2025 onwards, we also consider loans that finance economic activities, contribute

substantially to one or more of the environmental objectives and aligned with the EU Taxonomy criteria or ICMA principles as 'green' (until 2024 only

climate change mitigation and adaptation objectives were considered):

 Climate change mitigation;

 Adapting to climate change;

 Sustainable use and protection of water and marine resources;

 Transition to a circular economy;

 Pollution prevention and control;

 Protect and restore biodiversity and ecosystems.

E3-2 - Actions and resources related to water and marine resources



for the financial period ended 31 December 2024

163

Convenience translation in English of the original Romanian version

At the UniCredit SpA Group level, the study and analysis of environmental factors, in addition to those related to climate, has been started, given the

interconnectedness of impacts and dependencies on natural capital, and progress in this area is constantly communicated to the Group.

Because nature-related assessment is at an early stage for the banking industry as a whole, with limitations in terms of data availability across factors

and sectors, lack of commonly agreed indicators and methodologies (e.g. scenarios, in 2024, UniCredit SpA Group defined an assessment to identify

the industries most at risk from nature-related risks in terms of impact on natural capital and dependence on natural factors.

In addition, as described in E1, to determine the extent to which the Group's credit clients are exposed to climate and environmental risks, the climate

and environmental questionnaire is used, which includes key qualitative and quantitative, current and prospective indicators. With respect to nature-

related factors, the Group will evaluate the revision of the Climate and Environmental Issues Questionnaire in line with the enhanced impact

assessment.

The Group recognizes the importance of the water industry and related activities which, if not managed responsibly, can have a negative impact on

biodiversity, the environment and the communities involved. The relevance of the sector is all the more important in the current context, where climate

change remains one of the greatest threats facing the planet, and for the relevant contribution to achieving the Net Zero targets assumed by UniCredit

SpA Group, and implicitly by the Group in Romania. Therefore, large dams and hydropower plants could play a key role in the path towards energy

transition.

With specific relevance to this topic, the water infrastructure regulation defines criteria for identifying the topics and activities in the scope, as well as

the process, roles and responsibilities for conducting reputational and ESG risk assessments, with the aim of assessing the specific situation and

characteristics of each topic or activity related to water infrastructure.

Metrics and targets

E3-3 - Objectives related to water and marine resources

The Group does not currently have water and marine resource targets, as it applies the rules included in other standards of conduct as follows. As

part of its commitment to the Equator Principles (EP), the UniCredit SpA Group applies the globally accepted World Bank Standards for applicable

projects. In addition to the rules set by the IFC Industrial Sector Guidelines, the IFC General EHS Guidelines define stringent requirements for

wastewater, ambient water quality and water conservation.

E4 - Biodiversity and ecosystems

Strategy

E4-1 - Transition plan and consideration of biodiversity and ecosystems in the Strategy and Business

Model

In 2024, UniCredit SpA Group carried out an assessment to identify which industries are most at risk from nature in terms of impact on natural capital

and dependence on natural factors. The results are still at an early stage given data availability. In order to assess the improvement of the

assessment methodology, UniCredit SpA Group is constantly monitoring the evolution of industry practices/standards as well as the availability of

credible data at client level.

In the context of its ESG strategy, UniCredit SpA Group is starting to assess potential risks and business opportunities related to natural capital.

During 2024, a specific analysis was carried out at UniCredit SpA Group level to understand the state of natural capital and biodiversity in the countries

where UniCredit SpA Group is present. The aim is to support the identification of potential business opportunities for local subsidiaries based on key

dimensions such as water, soil, air and specific aspects of biodiversity: ecosystems and people. This exercise has provided insight into opportunities

with a positive approach to nature that can contribute to business development and customer transition. Thus, specific working groups will be set up

to start assessing business opportunities, also involving experts from subsidiaries, including Romania.

Please see the Managing Impacts, Risks and Opportunities section of E3 - Water and Marine Resources for more details.

In 2025, the Group's ESG strategy follows the UniCredit SpA Group's strategy and commitments, without taking some specific local measures on

biodiversity and ecosystems.



for the financial period ended 31 December 2024

164

Convenience translation in English of the original Romanian version

Impact, risk and opportunity management

E4-2 - Policies related to biodiversity and ecosystems

In 2024, the Group adopted the ESG Product Guidelines with the aim of establishing a consistent and comprehensive methodology for classifying and

reporting ESG offerings. The Group is willing to reach out to new business opportunities while preventing the risks associated with greenwashing and

socialwashing

The document is reviewed periodically to modify or include additional eligible activities and/or criteria based on market trends or business needs and

to comply with regulatory requirements. Policy implementation is led by the Group's ESG function.

In line with the ESG Product Guidelines, we consider as "green" loans that finance economic activities, contributing substantially to one or more of the

environmental objectives of the EU taxonomy criteria (including objective 6 on the protection and restoration of biodiversity and ecosystems).

We are committed to protecting natural capital by providing sustainable financing solutions to clients and minimizing the environmental impact of our

direct operations. Avoiding operations in protected areas in order to preserve biodiversity, as well as combating deforestation and forest degradation

are fundamental principles for the Group.

The principles are formalized in the Declaration on Natural Capital and Biodiversity, published by UniCredit SpA Group in 2024.

In addition, within our sectoral regulations, particular attention to habitat loss and biodiversity is taken into account in terms of potential

environmental impacts based on internationally recognized standards. For example:

 The mining industry regulation aims to assess the potential environmental and social impact of the Group's mining finance transactions

and, through the implementation of appropriate management and mitigation measures by the Group's clients or partners, to limit the risks

associated with the Group's reputation. Environmental damage or degradation, including loss of habitat and biodiversity and contamination

of groundwater, surface water, sediments, soil and air are considered.

 The regulation of the oil and gas sector takes into account the increasing negative impact that both unconventional and Arctic oil and

gas activities have on the climate system and is made accountable to society and future generations in terms of environmental conservation

(resource/ecosystem quality) as well as human health and pollution.

 The regulation on the civil nuclear sector provides guidelines and standards, based on those accepted by industry and other

stakeholders, representing best practice, to address the specific challenges of the nuclear sector and to minimize the social and

environmental risks associated with the financing of nuclear energy activities, paying particular attention to, inter alia, habitat and biodiversity

loss.

 The Water Infrastructure (Large Dams) Regulation aims to assess and mitigate risks to the Group's reputation, with a particular focus on

habitat and biodiversity loss.

UniCredit SpA Group's desire to protect ecosystems is further evidenced in its commitment to tropical forests. The objective of our commitment to

tropical forests is to ensure that our business does not favor deforestation or forest degradation, unless appropriately mitigated. We will not provide

financial services to clients directly involved (including indirectly in the case of specific projects) in: illegal logging; timber logging in violation of traditional

and civil rights; timber extracted from forests where high conservation values are threatened by industry; or forests illegally converted to illegal

plantation or illegal use of fire. This commitment covers all proposed transactions with a potential impact on tropical forests.

The Group currently has no policies in place for agricultural practices. However, the Group will evaluate the possible development of internal

recommendations on these practices. There are also no sustainable practices or policies adopted in the area of oceans or seas.

The ESG Product Guidelines enables the Group to create and promote innovative financial products focused on green and sustainable investments,

thereby contributing to the protection of natural capital, biodiversity and land use conservation.

E4-3 - Actions and resources related to biodiversity and ecosystems



for the financial period ended 31 December 2024

165

Convenience translation in English of the original Romanian version

Protecting biodiversity requires close collaboration between financial and non-financial institutions to achieve tangible results. The UniCredit SpA

Group is the first Italian bank to sign the Financing for Biodiversity Pledge (FfBP). FfBP members call for and commit to take ambitious action

on biodiversity to reverse nature loss this decade. This will be achieved through collaboration, engaging relevant counterparts and assessing our

own impact on biodiversity. The UniCredit SpA Group has also contributed to the first research paper on the climate-nature nexus entitled "Unlocking

the biodiversity-climate nexus". This paper sets out the key pillars, linking the issues of climate change and impacts on nature." In September 2024,

UniCredit SpA Group also contributed to the "Finance for Nature Positive" discussion paper led by the Finance for Biodiversity Foundation (FfB) and

UNEP FI. This discussion paper aims to solicit suggestions from the financial sector on a proposed working model for Finance for Nature Positive,

including definitions and associated practices.

The UniCredit SpA Group is also a member of the Nature Working Group of the United Nations Environment Programme Financing Initiative

(UNEP FI), linked to the Principles for Responsible Banking (PRB). The UniCredit SpA Group is the only Italian bank - among 34 international

counterparts - to have contributed to the publication of the "PRB Nature Target Setting Guidance". This guidance is designed for banks to define their

ambitions in the field of nature, in particular for PRB signatories that have identified nature as one of their most significant impact areas, in order to

fulfill their PRB target setting commitments. It provides a set of model targets, particularly at the practice level, which will be adjusted and improved

over time as more banks gain experience in this area. It reflects the objectives and targets of the Global Biodiversity Framework (GBF), which

demonstrates the global commitment of governments to take urgent and meaningful action to address nature and biodiversity loss.

Dialogue with stakeholders is fundamental. This is why external views are always taken into account in setting UniCredit SpA Group guidelines and

policies.

UniCredit SpA Group follows and participates in discussions at European level on regulatory frameworks (e.g. deforestation, agriculture). The UniCredit

SpA Group is a member of the IIF Sustainable Finance Nature Expert, a platform designed to address nature issues and to support active advocacy

efforts related to nature initiatives. In 2024, the UniCredit SpA Group contributed to the IIF Nature Finance Report: responding to nature risks and

opportunities.

Following the strengthening of UniCredit SpA Group's engagement with NGOs and civil society in general, dedicated initiatives have been carried out

with leading organizations to assess any gaps they have identified in UniCredit SpA Group's strategic ESG positioning and to highlight UniCredit SpA

Group's improvements in the area of sustainability, focusing on significant topics such as biodiversity, Net Zero and policy updates.

Moreover, the commitment also applies to internal stakeholders, as it is fundamental for UniCredit SpA Group to spread awareness on biodiversity.

This is why it has created a specific training course available to all employees, including those in Romania, from 2025. Biodiversity is also included in

the Skills for Transition training program also available locally, including in Romanian, which provides training for the workforce of the Group's corporate

clients, offering specific learning pathways to address the skills gap in this area. Training courses started to be offered in November 2024 via a digital

platform.

As mentioned in the Reputational Risk Policy, the Group applies a set of minimum requirements for accepted transactions, also in accordance with

the specific rules applicable at UniCredit SpA Group level. No financial product or service offered by the Group shall involve or affect the following:

 

 

 

 

 

 

The Group does not provide any financial support or services for activities that do not comply with the UN Declaration on the Rights of Indigenous

Peoples.

Environmental and social risk assessments are guided by our sustainability policies and our commitment to human rights. In particular, UniCredit

SpA Group, and by extension the Group locally, does not support any of the following activities, as also outlined in the Rainforest

Commitment:

 Operations involving human rights violations;

 Operations in or immediately adjacent to UNESCO World Heritage sites, unless the activities predate the designation of UNESCO affiliation;

 Operations in or directly affecting areas formally protected for conservation purposes (i.e. IUCN protected areas I-IV) or those proposed for

such designation;

 Operations in or directly affecting wetlands on the Ramsar List.

E-4-4 - Biodiversity and ecosystems targets







for the financial period ended 31 December 2024

166

Convenience translation in English of the original Romanian version

E5 - Resource use and circular economy

Impact, risk and opportunity management

E5-1 - Resource use and circular economy policies

Resource use and circular economy policies

The Group considers circularity a significant aspect to be promoted to its customers. The Group's commitment to the circular economy stems from the

realization that sustainability is a core corporate responsibility and contributes to the business in the long term by addressing the environmental issues

that need to be addressed today. However, the Group's commitment to the circular economy has not yet materialized into a dedicated policy to address

the following significant impacts resulting from the double materiality analysis process:

 The contribution to high inflow and use of resources, and to high waste by sectors such as construction, power generation, manufacturing

and the waste-intensive sectors in which the Group's customers operate.

 Promoting awareness of commitments related to waste production and waste management.

The UniCredit SpA Group has started to analyze sectors considered controversial, based on ongoing discussions in various international working

groups. The aim is to assess the development of a cross-sectoral policy to address the disruption of the use of virgin resources in funded sectors.

At Group level, waste management is addressed in sectoral regulations with the aim of regulating waste production and disposal, mitigating negative

environmental impacts. For example:

 The civil nuclear sector regulation applies to any specific transaction, whatever its subject matter, related to nuclear waste processing

activities;

 The Mining Industry Regulations apply to activities related to the development, construction and operation of facilities for the mining,

processing and transportation of ores, as well as supporting infrastructure such as tailings and other waste management facilities.

Circular economy aspects are also considered in the ESG Product Guidelines. The Group has not currently committed to a specific circular economy

policy.

E5-2 - Actions and resources related to the use of e-resources and the circular economy

Actions and resources related to resource use and the circular economy

In terms of resource use and circular economy, the Group is aligned with the UniCredit SpA Group's commitments and is regularly informed of progress.

UniCredit SpA Group has carried out and promoted awareness and engagement actions and activities aimed at raising awareness among its

customers on circularity and waste production and management.

UniCredit SpA Group's commitment to circularity is also mentioned in the Statement on Natural Capital and Biodiversity published in May 2024. The

Natural Capital Framework developed by UniCredit SpA Group also mentions circularity as a factor for achieving the Net Zero targets. The circular

economy can significantly contribute to a just and equitable transition for customers in various ways, including through financing, consultancy, but also

by creating synergies and establishing partnerships.

In December 2022, the UniCredit SpA Group signed a membership agreement with the Ellen MacArthur Foundation, a pioneer and leader charity in

circularity topics at international level. The participation to working groups organized by the charity has a double materiality: on the one hand the

UniCredit SpA Group has access to a specific know-how focused on circular economy; on the other hand, the Bank established new contacts and

made networking with companies belonging to other sectors, identifying specific needs and assessing how it can support them in their green transition.

In 2023, UniCredit SpA Group started to participate in a working group conceived and proposed by UNEP FI, in which other banks are also participating,

with the aim of developing a position paper on the link between climate and circular economy, complemented by an operational guide and supplements

dedicated to priority sectors (Buildings/Construction, Textiles). These guidelines also include some concrete actions that banks can implement to

support their clients and promote circularity. The full set prepared by UNEP FI, with input from other banks, was published in July 2024. In September

2024, UNEP FI launched the second phase of the working group, which aims to carry out a detailed analysis of other sectors

The UniCredit SpA Group is starting to analyze the sectors considered controversial (Fashion/Textiles) - based on ongoing discussions in the various

international working groups in which it participates - to assess the development of a cross-sectoral policy to address the disruption of the use of virgin

resources in the financed sectors.



for the financial period ended 31 December 2024

167

Convenience translation in English of the original Romanian version

In February 2024, UniCredit SpA Group organized a webinar entitled "Straight ahead with circularity", exploring the shift from linear to circular business

models in various sectors, discussing the future challenges and opportunities offered by the transition. The event targeted customers and experts from

the oil and gas, steel and fashion sectors, who attended the webinar to discuss the feasibility of implementing circular business models.

During the third panel of the ESG Day event organized by UniCredit SpA Group in November 2024, the importance of the principles of the circular

economy (reuse, recycling) and the relevance of the life cycle of products was highlighted. This type of event promotes debates on sustainability and

encourages the adoption of resilient and sustainable business models in various sectors, highlighting the correlation between circular actions, the fight

against climate change, the preservation of natural capital and the promotion of healthy and inclusive economies.

The UniCredit SpA Group has set several ambitions on different streams:

 The realization of an internal training path on circularity, which will be available to all employees, including those in Romania, from the

beginning of 2025, to support customers in the best way;

 External training for customers embracing circular business models and processes: the circular economy is also included in the Skills for

Transition training program, also available in Romania for the Group's customers

 Business opportunities to be capitalized, developed and proposed to customers to support them in their green transition. The UniCredit

SpA Group has started to carry out a first analysis of the sectors considered a priority in terms of their energy consumption, including the

development of a sector thermal map.

In order to determine the extent to which clients financed by UniCredit SpA Group, including the Group's clients, are exposed to climate and

environmental risks, the questionnaire on climate and environmental issues includes a series of questions covering different sectors (11 in total,

considering the different sections) and a series of sector-specific questions (2 further questions), aiming to assess both qualitative and quantitative

key indicators, both current and prospective, in the following three main areas:

 C&E Exposure: the 5 questions allow to analyze the current level of exposure of the Economic Group in question:

(i) greenhouse gas emissions (Scope 1, 2 and 3);

(ii) water consumption;

(iii) energy consumption;

(iv) waste production and recycling;

 C&E vulnerability: the 4 questions allow us to analyze the level of maturity in climate change management from a prospective

perspective:

(i) the company's investment plan to transition to a lower emission business model;

(ii) target to reduce greenhouse gas emissions;

 Economic impact: the 2 questions allow you to analyze the potential impact on the financial and production performance of corporate

clients in terms of costs and revenues.

The outcome of the transition risk assessment is the main determinant for incorporating climate and environmental considerations into the annual

initiation/review process. For this purpose, a dedicated operational regulation has been designed and submitted for implementation to UniCredit SpA

Group subsidiaries, which takes into account transition risk and physical risk assessment (together with reputational risk and Net Zero, where

applicable). Based on the transition risk score, the application of the process translates into specific strategies (in terms of suitable products) to manage

the exposure of the corporate portfolio, favoring the green transition of clients while reducing the Group's exposure to climate and environmental risk.

Specifically, where the client is assigned a high or very high transition risk score, the strategy involves the prevalence or exclusivity of green products.

In terms of physical risk, the outcome of the customer-level assessment is taken into account to integrate the strategy with the demand for actions to

reduce physical risk whenever deemed necessary.

The Group has implemented the ESG Product Guidelines and climate and environmental risk assessment in the credit process and complies with the

UniCredit SpA Group commitments.

E-5-3 - Objectives related to resource use and circular economy







for the financial period ended 31 December 2024

168

Convenience translation in English of the original Romanian version

Social information

S1 - Own labour force

Impact, risk and opportunity management

The UniCredit SpA Group, and therefore the Group, operates in accordance with the Universal Declaration of Human Rights, which states that "every

individual and every organ of society, including business enterprises, shall strive by teaching and education to promote respect for human rights and

freedoms and by progressive measures, national and international, to secure their universal and effective recognition and observance".

Our aim is to support communities to grow, delivering the best for all stakeholders, unlocking the potential of people, businesses and communities,

both in Romania and across Europe.

We want to hold ourselves to the highest possible standards so that we do the right thing for our customers and society, reflecting and respecting the

views of our stakeholders in our business and decision-making.

We recognise that any economic and business activity can have both positive and negative impacts on human rights. We are therefore constantly

working to establish a reliable and inclusive approach that enables us to manage human rights impacts and risks and minimise potential human rights

violations.

In this respect, actively involving and listening to all stakeholders` feedback is a fundamental element in the way we do our work. We encourage the

transparent expression of views and put in place measures to provide quick and effective responses. Specifically, we provide clear mechanisms for

handling complaints (see also section G1-1 - Business Conduct Policies and Corporate Culture)

Effective risk assessment and monitoring requires adequate knowledge at all levels of our organisation. For this reason, we adopt a common and

consistent learning approach to risk management, including human rights risks.







Data reporting for persons not in employment will be realised in terms of the number of persons in employment at the end of the period 31.12.2024

The categories are as follows:

 Leasing of personnel: individuals whose labour force is leased to UniCredit Bank Romania, through an external agency (ex ProHuman

APT), for a limited period of time.

We consider as part of our labour force the following categories:

 Internal staff: Number of individual labour contracts with our local legal entities. If there are double contracts, they have been counted twice.

This number excludes all categories of external staff:

 persons delegated to other banks/group companies

 Leave without pay

 Interns

S1-1 - Policies related to own labour force

The Group's policies comprehensively address and manage the material impacts and opportunities identified through the local Double Materiality

Assessment process.

Impacts:

 Promotion of employee well-being through the implementation of dedicated well-being activities and benefits within a healthy and stimulating

working environment.

 Positive contribution to the objectives of ensuring equal opportunities, secure employment, generation of quality employment, the payment

of adequate wages also through the promotion of social dialogue, collective bargaining agreements and workers' associations.

 inked to

personalised growth and evaluation objectives (e.g. career development plans).



for the financial period ended 31 December 2024

169

Convenience translation in English of the original Romanian version

 Contribution to the development of young talents through partnerships with national and international Universities, collaborations with

communities in the IT and tech sector, often with a focus on women and creation of employee networks on several diversity traits.

 Respect for diversity and promotion of an inclusive work environment through anti-discrimination activities and initiatives.

 Increase in digital skills, knowledge, and opportunities of employees.

Opportunities:

 Becoming an employer of choice with widespread diversity, a culture of inclusion and concrete work-life balance solutions which encompass

a flexible approach.

 

 Ensure and guarantee transparent performance review systems and professional growth plans for the Group's entire population,

empowering employees to thrive and unlock their potential.

Our HR policies are intended to be a central reference for all rules and processes of the People & Culture function. They create the framework by

which we ensure that the management of people and organisational culture is carried out consistently and by which we create the conditions for all

individuals to have the professional competencies necessary to carry out the responsibilities assigned to them.

Key focus areas include:

 Well-Being, Inclusion, and Respect: Fostering a supportive, inclusive, and healthy work environment that values diversity, encourages a

sense of belonging, empowers employees to thrive, and ensures dedicated channels for reporting unacceptable behaviors, maintaining a

respectful and safe workplace for all.

 Fair Opportunities: Ensuring equal opportunities for all employees based on merit and inclusive practices, while promoting social dialogue.

 Skill Building and Development: Enhancing employee skills through tailored training programs, upskilling, and career development plans.

The commitment to respect human rights is the guiding principle of UniCredit SpA Group's approach and implicitly of the Group towards the interests

of people inside and outside the organisation. The commitment is inspired by internationally recognised declarations, conventions, standards,

principles and guidelines and ensures that human rights are guaranteed to all.

The Group requires its employees to help create and maintain a respectful, safe and inclusive work environment in which differences in gender identity,

age, race, ethnicity, sexual orientation, ability, origin, religious or ethical value system and political beliefs or any other category protected by law in

the local jurisdiction are accepted and promoted.

The Group's commitment to creating an inclusive environment incorporates endeavours that promote the well-being of our employees and help them

to effectively manage personal and professional challenges. We support our employees and their families at all stages of their lives, offering benefits

designed to improve their work-life balance.

This aligns with our aim to improve the working environment and create a stronger sense of inclusion and belonging, which will ensure a better

quality of life at work.

Our employees have selected our values of Integrity, Ownership and Caring because they represent our Culture.

 Integrity means doing the right thing. We are honest, truthful and transparent. We do the right thing - even when no one notices us.

 Taking ownership - we honour our promises and take responsibility for our actions and commitments. We are empowered to

make decisions and learn from failures. We speak up - to express an idea, an opinion or when we see something wrong

 Care - we care about our customers, our communities and each other. We are eager to help each other and for our people to thrive.

We treat each other with respect and value our differences

As a financial services provider, our most important asset is our highly educated and skilled workforce. Thus, we do not use child or forced labour in

our business practices and we fully comply with the UN Principles on Business and Human Rights and the Romanian labour laws.

Within the Group, we recognise that a fair and diverse workforce is essential to our business, creating a fairer and more inclusive working environment.

We believe that when Diversity, Equity and Inclusion (DEI) works in harmony, great things happen:

 people feel respected and valued for their contributions, directly enhancing productivity.

 people experience a sense of belonging, connection, and shared pride, positively impacting well-being.

 people feel free to express their views and ideas, fueling creativity and innovation.

 people sense their potential is recognised, unlocking talent and boosting performance and job satisfaction.

These foundations position us as an employer of choice by fostering a diverse workforce, an inclusive culture, and tangible work-life balance solutions.

This approach drives sustainable business growth while delivering value to our clients, communities, and shareholders.

Our approach to diversity emphasizes understanding, accepting, and valuing individual differences. We foster equity throughout the organisation in

recruitment, development, retention and our products and services. Inclusion is rooted in respect and accessibility, ensuring a barrier-free environment

where everyone has a voice and is encouraged to thrive.



for the financial period ended 31 December 2024

170

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In line with the Joint Declaration on "Equal Opportunities and Non-Discrimination" (signed in 2009), UniCredit SpA Group reiterates the strategic

importance of creating a culture of inclusion, ensuring equal opportunities.

Moreover, by signing the Global Framework Agreement with UNI Global Union for Human Rights and Fundamental Labour Rights, the UniCredit SpA

Group strengthens its commitments to fight discrimination against minorities, especially when it is based on racial issues.

The Group aligns with the UniCredit SpA Group's commitments and since 2019 in Romania we have adopted in our local procedures the principles of

the Global Policy against Harassment, Sexual Misconduct, Bullying and Retaliation, which have been detailed under applicable local legislation. The

Group's rule related to anti-harassment in the workplace leads to greater awareness of unacceptable behaviour and promotes a culture of open

expression where all employees feel listened to and protected when reporting any suspected misconduct.

In addition, our DEI principles support the transformation of our culture, increasing transparency and providing direction on how we approach positive

change, regardless of any diversity currents. The principles are much more than a set of rules that we must follow; they are part of our mindset. The

expected behaviours are embedded in everything we do: in our interactions inside and outside the workplace.

Our Code of Conduct underscores inclusion principles, focusing on objectivity, competence, professionalism, and equal opportunity in people-

related processes while providing procedures to address discrimination, mobbing, or bullying, both internally and in external relations

Within the framework set out in the Group Remuneration Policy, we are committed to the principle of equal pay, ensuring fair treatment in terms of

remuneration according to the role covered, scope of responsibilities, performance and contribution to business results, regardless of gender identity,

age, race, ethnicity, sexual orientation, ability and cultural background. We adopt gender-neutral remuneration and incentive policies that contribute

to the pursuit of real equality among staff. Through these we ensure that equal work is rewarded equally, giving people access to the same opportunities

regardless of their diversity.

Working to achieve gender parity at all organisational levels is a key component of our DEI approach at UniCredit, reflecting our belief in the

transformative power of gender diversity, not only within our organisation but also in society as a whole.

 pledge, solidifying our commitment to

gender equality and DE&I on our corporate agenda, with specific goals and frameworks for meaningful progress.

In Romania we adhere to the above commitments, local policies are aligned with those of UniCredit SpA Group, as well as with local legislation in

force and in progress of implementation at local level, and are made available to our entire workforce as it is, for example, the local norm related to

the fight against harassment at the workplace.

We are dedicated to challenging biases, micro-aggressions, and stereotypes, cultivating a Culture of inclusion.

DEI principles apply to every stage of the employee journey, from recruitment and onboarding to learning, development, performance management,

and compensation, ensuring unbiased, merit-based decisions and pay equality, irrespective of diversity traits:

 Recruitment: We strive for a gender-balanced, bias-free recruitment process, removing discriminatory or non-inclusive language from job

descriptions to encourage diverse applicants.

 Onboarding: New joiners receive comprehensive support, tools and opportunities to help them fully realize their potential.

 Learning and Development: We provide equal learning opportunities to ensure all employees can meet business priorities. Training

focuses on inclusive leadership, psychological safety, trust, recognizing and addressing unconscious bias, preventing harassment,

misconduct, bullying, and retaliation.

 Performance Management: We maintain consistent performance standards with gender-balanced and diverse succession planning and

promotion pathways.

 Compensation: Compensation is based on merit and aligned with DE&I goals, promoting pay equality and diversity commitments across

all levels.

Specifically, the recruiting process fosters the development of young talents through partnerships with universities and collaborations with

communities in the IT and tech sectors, with an emphasis on diversity and inclusion. This approach allows the Group to cultivate a diverse workforce,

strengthen its talent pipeline, drive innovation, and support its long-term talent acquisition goals.

For information on policies, see the section 'MDR-P Policies adopted to manage material sustainability issues'

Fostering a safe and respectful working environment

Although the Double Materiality Assessment showed that the Group has only a positive material impact on its workforce, we are committed to protecting

our people.

The Group is committed to ensuring and guaranteeing the respect of human rights, the principles and values of the Code of Ethics and Code of

Conduct andin the numerous regulations implemented.

This commitment, aimed at avoiding potential negative impacts on the workforce, consists of specific channels for employees, identified in the Group

Norm against harassment, sexual misconduct, bullying and retaliation. These channels allow us to manage and monitor the specific situations People

& Culture function oversees.

The intention of the Norm is to prevent, detect, take necessary measures and continuously monitor harassment, sexual misconduct, bullying and

retaliation, including by providing support to persons reporting misconduct against retaliation. The essential content of this regulation consists of:



for the financial period ended 31 December 2024

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 a clear definition of behaviour (such as harassment, sexual misconduct, bullying, retaliation, discrimination) against which the Group is

expressly committed to, in line with our principles and values;

 Defining a reporting process through dedicated channels (such as whistleblowing mechanism, line manager, People & Culture function)

 the process of investigating reported cases

 protection and assistance measures for people affected by inappropriate behaviour

S1-2 - Process of involving own workers and workers' representatives on the impact

In 2021, the UniCredit SpA Group's Culture and DEI function engaged several colleagues and employee representatives from across the organisation

to define UniCredit's values of Integrity, Ownership and Caring for others. This process involved meetings, surveys and focus groups alongside a

Culture Diagnostic to assess the current state and set a direction for Culture transformation to support UniCredit SpA Group's strategic industrial plan:

UniCredit Unlocked

UniCredit Group's Culture and DEI function aims to transform culture into a core driver for achieving UniCredit Unlocked's strategic goals. UniCredit

SpA Group has mobilised volunteer Culture Sponsors and Champions to support this transformation. As of today, there is representation across all

13 countries and every Competence Line where UniCredit operates, with 24 Culture Sponsors paired with 28 Culture Champions. In Romania we are

therefore proud to be part of all these initiatives, represented by Culture Sponsors 

At Group level, through our representatives, we design and execute local initiatives to inspire and accelerate culture transformation within teams and

collaborate with the UniCredit SpA Group Culture and DEI Function on a regular basis through various initiatives, including Culture Bootcamps,

UniCredit SpA Group-wide Culture Days, and CEO Culture Progress meetings with the UniCredit SpA Group`s CEO. The frequency of these

engagements varies depending on the project, from bi-monthly to quarterly. The first point of engagement was the Culture Bootcamp, designed to

prepare volunteers for their roles.

Also, at Group level, we conduct internal surveys to measure employee satisfaction following specific events, training sessions and other activities in

order to guide improvements to these initiatives. We use various platforms, vetted for cybersecurity and privacy, to collect employee information

through surveys, helping us to manage the potential and actual impact on staff.

At UniCredit SpA Group, and implicitly within the Group, we believe that social dialogue contributes to creating value over time by strengthening our

ability to collaborate, listen and understand employees' needs. The commitment to continuously improve social dialogue throughout the UniCredit SpA

Group led to the creation in 2007 of an international body, the UniCredit European Works Council (UEWC), composed of representatives of

employees in the countries where it is present. The Group therefore also has representatives in the UEWC.

The UniCredit European Works Council (UEWC) reflects the UniCredit SpA Group's commitment to constantly improve the level of social dialogue in

each geography and to ensure that employees' rights to information and consultation are consistently respected. UEWC represents employees of

UniCredit SpA Group subsidiaries in which it owns at least 50% of the share capital in the EU Member States and other European countries.

It reinforces UniCredit SpA Group's European identity, fosters social cohesion, and promotes constructive dialogue between management and

employees.

Main functions of the UEWC:

 Information sharing: Central management provides timely and relevant data on significant transnational issues affecting employees

across multiple countries.

 Consultation: UEWC members engage in dialogue with the management of UniCredit Group SpA on its measures, providing their views

and feedback to support  Group SpA in empowering accountable and sustainable progress in the best interest of our

employees, customers and communities

In Romania, we remain committed to improving social dialogue, while workers' interests are represented by trade unions, in accordance with applicable

labour legislation and local industrial relations systems. Representation of workers and dialogue with their trade union representatives is carried out in

accordance with applicable local legislation and trade union agreements in force. The group enables workers' representatives to carry out trade union

activities in accordance with applicable local legislation and current trade union agreements.

Within the Group there are clear policies in place to protect against retaliation against individuals who use dedicated channels to report concerns,

needs or irregularities identified in the organisation's work. These policies are available to all employees on the internal platform (intranet) and are also

included in the standard induction programme for new employees as well as in the regular annual compliance training sessions.

Over the years, the UniCredit SpA Group has strengthened social dialogue through various Joint Declarations, covering Training, Learning, and

Professional Development (2008); Equal Opportunities and Non-Discrimination (2009); Responsible Sales (2015); Work-Life Balance (2019); and

Remote Work (2020). This commitment was further reinforced in 2019 by signing a Global Framework Agreement (GFA) with UNI Global Finance, the

global trade union for the banking and insurance sectors. All these are incorporated into local policies and regulations.

Effectiveness of engagement



for the financial period ended 31 December 2024

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For various initiatives, such as training, events and meetings, feedback collection is a key step. The goal is to gather ideas and suggestions for

continuous improvement. For example, at the executive development level, surveys assess the quality of delivered programmes to refine future

editions. This process involves clustering feedback to identify actionable improvements.

The UniCredit SpA Group, and by extension the Group, is committed to addressing the needs of vulnerable and marginalised groups within its

workforce, including people with disabilities and people from culturally diverse backgrounds. Employee networks are voluntary groups of employees,

with over 1,000 active members at UniCredit SpA Group level, who come together on the basis of shared identity or life experiences, strengthening

community involvement.

Key initiatives include partnering with NGOs to understand the challenges facing these communities, implementing secure reporting channels and

using HR data analytics to track workforce diversity and pay equity. We emphasise inclusive recruitment, accessible workplace practices such as

flexible working options and anti-discrimination policies, and ongoing training on inclusion.

For learning initiatives, one of the main steps of the process is to collect feedback at the end of specific learning courses/programmes in order to

collect ideas, suggestions, pointers for continuous improvement from the users involved. Surveys are in place to assess the perceived quality of the

programmes delivered with the aim to improve/adjust them for future editions. An example of this process is to collect the contributions received,

grouping them together to facilitate the identification of future improvements to be implemented (where appropriate)

We are committed to ensuring and guaranteeing respect for human rights, the principles and values of the Code of Ethics and Code of Conduct

through our company policies.

This commitment, designed to avoid potential negative impacts on the workforce, consists of specific employee channels identified in local

procedures. These channels allow us to manage and monitor the specific situations that local labour laws oversee. As part of ongoing social

dialogue, the company collects feedback from colleagues and through their representatives/trade union to implement, improve and modify company

processes and work environment where possible.

                    



 

 

G1-1 - Business conduct policies and corporate culture

 



S1-4 - Taking action on the material impact on own labour force and approaches to mitigate material

risks and pursuing material opportunities related to own labour force, and the effectiveness of these

actions

Promoting inclusion and well-being within the

We are committed to creating an inclusive culture where every employee feels a sense of belonging.

To promote awareness and celebrate Diversity, Equity and Inclusion (DEI), we organise DEI and Well-being Days, which mark events such as

International Women's Day, World Health Day, World Day for Cultural Diversity, World Mental Health Day. These celebrations reflect our commitment

to DEI and our goal to build a truly inclusive workplace.

Concrete actions in place

We are committed to promoting a barrier-free workplace where all employees have a voice and a sense of belonging. Our Diversity, Equity and

Inclusion (DEI) strategy is integrated throughout the employee lifecycle, promoting behaviours and initiatives that foster an equitable and inclusive

culture.

 Comprehensive parental leave and family support - we offer a minimum standard of parental support, along with flexible working

arrangements. Additional welfare benefits for child-related activities emphasise our support for parents throughout their careers.

 Inclusive culture programmes - promoting inclusive language, recruitment practices, reducing unconscious bias and celebrating diversity.

DEI specific training is required by role, launched in 2023 and hosted on the MyLearning platform. Training was allocated at launch to all

active employees and is now allocated to all new employees. In 2024 we reported over 300 hours of training on this topic to 585 employees.

At the same time, the PLUS platform makes over 1,300 materials on the topic available to everyone.

 Mentoring programme - aims to improve diverse representation of leaders and cultivate an inclusive environment for talent.



for the financial period ended 31 December 2024

173

Convenience translation in English of the original Romanian version

 The holistic approach to Well-being encompasses physical, mental, social, financial and career well-being. Resources such as the

Well-being Navigator, an interactive guide with tools and tips, digital learning tools on stress and burnout, menopause, dementia, and a

dedicated playlist on key well-being topics are available on the Learning Plus platform for all colleagues in the Group to support prioritisation

of well-being at all stages of life. Additional initiatives (e.g. WeCare conferences, Somatic Flow programme, blood donation campaigns

etc.) support the Group framework, encourage a positive working environment, focusing on caring and emotional health. This

comprehensive approach reinforces our DEI commitment and promotes a culture of caring and connectedness



We use a robust monitoring framework to evaluate the effectiveness of our DEI and learning initiatives. This includes monitoring specific metrics and

key performance indicators, conducting regular feedback gathering sessions and benchmarking against industry standards. On the DEI side, regular

reporting ensures transparency and accountability, with management assessed on progress against DEI targets during performance reviews. Similarly,

learning and development activities are systematically recorded in our learning management system (now MyLearning), ensuring comprehensive

monitoring and evaluation. These approaches collectively encourage continuous improvement, enabling us to generate meaningful impact and support

a culture of inclusion and growth.

By 2024, significant investments have been made in training and development and to narrow the gender pay gap for non-demographic purposes.

Our workforce reflects a wide diversity of backgrounds, emphasising our commitment to an inclusive and international environment.

l work, ensuring fair

remuneration based on role, responsibilities and contributions, without discrimination within diversity.

Investing in training and development for our colleagues: the UniCredit SpA Group dedicates resources to promote a favourable and inclusive

environment that enhances well-being and supports professional growth. UniCredit University, the UniCredit SpA Group's learning and development

framework, and also UniCredit University Romania offer structured programmes of leadership and functional expertise for professional and personal

growth. Partnerships with educational institutions support career development and lifelong learning. Work-life balance solutions, including flexible

working arrangements and wellness/well-being resources, further support our employees. These initiatives strengthen our position as an employer of

choice.











                       

           



Regarding the trade union approach, please see section S1-2 - The process of involving your own workers and workers' representatives on impact

above.











Building a positive working environment

Our people are our greatest asset. We are committed to creating a positive, safe and collaborative work environment, ensuring equal opportunities

and supporting personal growth through a comprehensive wellness/well-being framework. We are constantly striving to create a balanced environment

that prioritises the health and general wellbeing of our colleagues, offering support in the moments that matter most. We offer initiatives based on

respect and commitment to create a positive work environment where everyone can express themselves at their best and find resources for their

needs. Flexible work solutions, targeted wellness offers and initiatives address diverse needs and promote a healthy workplace.

EmpoweringU - Navigate your well-being - is the well-being navigator at UniCredit SpA Group level, which includes an extensive offering of

resources for each pillar of overall health and well-being (mental, physical, career, social, financial).

We provide our colleagues with additional resources such as learning episodes on stress, burnout, menopause and other similar topics on the

MyLearning platform, which offers valuable information developed in collaboration with external experts.

Locally, our specific welfare programmes include:



for the financial period ended 31 December 2024

174

Convenience translation in English of the original Romanian version

 Mental Well-Being: WeCare Programme - focusing on emotional challenges and solutions to challenges; Somatic Flow Programme - a

somatic approach to managing stress, anxiety and other challenging emotions, offering access to resources (professional and support

materials) and an informal group where sharing views and experiences is encouraged; dedicated app subscriptions facilitating access to

podcasts and audio books addressing mental health; Internal coaching programme for colleagues and teams

 Physical Well-Being: private medical subscriptions, discounts on sports activities, health and care offers/discounts in co-operation with

various partners (e.g. glasses, physical therapy, etc.).

 Career Well-Being: Jobs on Friday - a bi-monthly newsletter promoting career opportunities across all our entities in Romania, learning

programmes for managers (e.g. U-Lead), future managers (e.g. GrowToLead) or general development, learning platforms such as

MyLearning and PLUS - offering valuable resources for personal and professional growth, Internal Coaching Community, Trainers

Community

 Social Well-Being: birthday day off and extra days off for unforeseen situations, WinTogether Programme where colleagues volunteer for

colleagues to shape our working environment, themed campaigns - Easter and Christmas, Culture Roadshow & Culture Day events, flexible

working hours, social support when faced with difficult personal situations.

 Financial Well-Being: financial education webinars (topics such as: investments, retirement planning, saving for children's education, etc.),

Compensation and benefits package (13th salary, bonuses for Easter and Christmas and for Children's Day for those with children).

Through this well-being framework, the Group aims to be an employer of choice, attracting and retaining talent by promoting an inclusive culture e and

offering diverse initiatives to ensure equal treatment for all its employees.

EDGE certification and DEI recognition

Being a champion of gender diversity, equity and inclusion is an integral part of our culture and reinforces our commitment to a clear set of principles

and values as a crucial component of our continued business success. The rich diversity within our team creates the inclusive environment needed to

deliver the best solutions to our growing client base across Europe.

UniCredit Group SpA is the first pan-European bank to achieve Global EDGE certification, recognising its work in the field of gender equity and

inclusion. EDGE certification is the leading global standard for Diversity, Equity and Inclusion (DEI), centred on a gender and intersectional equity

approach in the workplace. It provides a holistic framework against which organisations are measured globally

This certification, which covers 10 countries, including Romania, positions UniCredit Group SpA as a global leader in the promotion of DEI.

To achieve this certification, UniCredit SpA Group banks, including UniCredit Bank Romania, underwent a rigorous third-party assessment in terms of

representation in the line of succession, pay equity, effectiveness of policies and practices, and inclusiveness of the Group's culture.





Programmes and champions of culture

Organisational culture: we continued to implement initiatives that support our organisational culture through local and group events dedicated to

promoting and reinforcing the Group's Culture and Values: Culture Roadshow, UniCredit Culture Day, WinTogether programme dedicated to

improving the working environment.

More information is detailed in section S1-2 The process for involving own workers and workers' representatives on impacts

Training and development

We have developed other initiatives to support individual and organisational growth - some key elements:

 Employer Value Proposition: updating UniCredit's employer brand positioning to align with the Group's purpose and values

 Leadership development programmes:

 



 







for the financial period ended 31 December 2024

175

Convenience translation in English of the original Romanian version

        





 







o ESG Programmes: In 2024, we raised awareness of ESG impacts through dedicated learning programmes attended by over

1,000 colleagues, some of whom have also achieved internationally accredited certifications. Also in 2024, we partnered with

the West University of Timisoara to create a postgraduate course to support the development of specialists in ESG reporting

and sustainable finance, "ESG Reporting and Sustainable Finance" , a programme launched in 2024.

o Internal Trainers Community: supporting the development of soft skills, by approaching dedicated learning sessions on topics

such as Maximising personal and professional effectiveness; Rediscovering the value of feedback, Emotional Intelligence, Public

Speaking, First Time Manager, Design Thinking; Agile; Self-leadership, Change Management and Conflict Management etc

o Internal coaching community: we are actively building an internal coaching culture, relying on the support of fellow coaches,

involved in individual coaching sessions and team coaching sessions and launching the Coaching Talks initiative, to raise

awareness of the benefits of coaching as a development tool for achieving personal and professional goals.

o Access to the PLUS [People Learning and UpSkilling] platform, an aggregator of over 30 external learning platforms,

bringing together over 80,000 internal and external learning resources, was another tool available to support the culture of

lifelong learning

o Events and partnerships: working with universities and recognising good practice by receiving awards such as Top Employer.

o Specific programmes: Organise tailor-made internship programmes, offering students the opportunity to start a career in

finance and banking through a blended learning experience consisting of both theoretical and practical parts. The programme

aims to support students' successful transition into the business environment. The whole programme is viewed through a

developmental perspective and we support interns as they develop professionally, focusing on enhancing their skills.

In 2022, UniCredit SpA Group established UniCredit University, initially launched in Italy before expanding to all countries and functions. This global

learning and development framework provides a common and transparent approach to training and development opportunities across the UniCredit

SpA Group, including within the Group, in line with our aim to empower our people to progress.

The main objective of UniCredit University is to strengthen learning as a tool for professional and personal development among the Group's employees,

with a focus on supporting the crucial phases of the employees' career cycle: onboarding, upskilling, reskilling and offboarding.

UniCredit University's mission, in line with our aim to support our people to progress and reach their full potential, is:

 Expand training opportunities, diversify the range of programmes available to all employees.

 Develop specific training pathways to enhance role-specific competences, thereby improving employees' knowledge and skills to better

respond to changing customer needs.

Stimulating the commitment of colleagues by offering new professional development opportunities..

UniCredit University is accessible to all Group employees and is structured to provide a personalised learning offer through learning programmes

differentiated by target groups (e.g. new employees, colleagues with managerial roles, experts in certain areas, etc.) , roles, levels of responsibility. It

works through three main channels:

 

                   



 



The training content is aligned with our strategy and is designed to ensure the sustainable growth of our Group in the areas of leadership, digital, risk

management, ESG, wellbeing/wellbeing, generational mix and future skills through continually updated roles to meet the evolving needs of our clients.

The content is defined to provide employees with a personalised and continuous learning experience that aligns with both their current role

requirements and future skills needs. Furthermore, these are complemented by annual mandatory training programmes that serve as an important

lever for preventing and mitigating risks, securing the internal and external reputation of the organisation and spreading the risk culture at all levels of

the organisation.



for the financial period ended 31 December 2024

176

Convenience translation in English of the original Romanian version

The Group's local learning offering - UniCredit University Romania - is designed to support business strategy by addressing local needs and priorities.

The learning programmes and actions, included under the UniCredit University umbrella, are established through a structured annual process: needs

are identified through dedicated meetings with colleagues from the Group's structures, analysed and transposed into training and learning solutions

and then delivered to our employees.

Learning initiatives are designed and delivered by external and internal experts, an approach that ensures is coherent and relevant:

 Our Well-being programmes focus on positively impacting on physical, mental, social, professional and financial well-being, with flexible

working policies to improve the quality of working life.

 Development opportunities, inclusive leadership programmes, community engagement actions and transparent communication channels

build trust and collaboration, fostering a diverse and inclusive work environment.

 Our recruitment process supports youth development through partnerships with universities, emphasising diversity and inclusion. This

strategy strengthens UniCredit's talent pipeline, supporting innovation, inclusion and long-term talent acquisition goals.

We are committed to building a better future for all stakeholders by championing diversity and equality at all levels of our organisation. Our primary

objective is to realise the full potential of our people by promoting a positive and inclusive working environment. This approach ensures sustainable

growth, new business opportunities, and a cohesive work environment focused on productivity, personal and professional well-being, and the

continuous engagement of people. At UniCredit, we are striving to create value for everyone, everywhere. We look forward to continuing this journey

together and achieving our shared goals keeping our Values of Integrity, Ownership and Caring at the centre of everything we do.







                





    















Anti-Harassment in the Workplace Rule 

                   







 



Metrics and targets

S1-5 - Objectives related to managing significant negative impacts, promoting positive impacts and

managing significant risks and opportunities

For UniCredit, diversity, equity and inclusion are strategic assets, and investments in diversity, equity and inclusion have led to steady growth and new

business opportunities, representing a powerful driver for innovation and creativity as well as an overall improvement in the working climate. We are

committed to fostering a culture that empowers colleagues and provides them with the environment to grow and develop, enhances the company's

reputation and strengthens the attraction and retention of talented people .

By fostering a diverse, inclusive and positive environment, the Group enhances organisational success and individual well-being, aligning with

sustainable growth and stakeholder expectations.



for the financial period ended 31 December 2024

177

Convenience translation in English of the original Romanian version

S1-6 - Characteristics of enterprise workers

The total number of employees is expressed as the number of employees at the end of the period (31 December of the reporting year) as

well as the average number of employees calculated as the average between the number of employees at the end of the reporting year

and the number of employees at the end of the previous year. The figures are taken from the systems in place at group level and use

actual data not estimates. The total workforce figures at the end of the period are the same as those reported in the financial statements.

The indicators have not been subject to independent verification by an external body.

Information on employee head count by gender

GENDER

NUMBER OF EMPLOYEES

(HEAD COUNT)

NUMBER OF EMPLOYEES

(HEAD COUNT - ANNUAL

AVERAGE)

Male

925

917

Female

2,564

2,594

Other

Not reported

Total employees

3,489

3,511

Employee head count in countries where the undertaking has at least 50 employees representing at least 10% of its total number of

employees

COUNTRY

NUMBER OF EMPLOYEES

(HEAD COUNT)

NUMBER OF EMPLOYEES

(HEAD COUNT - ANNUAL

AVERAGE)

Romania



for the financial period ended 31 December 2024

178

Convenience translation in English of the original Romanian version

Information on employees by contract type, broken down by gender (head count)

HEAD COUNT

FEMALE

MALE

OTHER

NOT REPORTED

TOTAL

Number of employees (head count)

2,564

925

3,489

Number of employees (head count - annual average)

2,594

917

3,511

Number of permanent employees (head count)

2,470

895

3,365

Number of permanent employees (head count -

annual average)

2,489

888

3,377

Number of temporary employees (head count)

124

Number of temporary employees (head count - annual

average)

105

134

Number of non-guaranteed hours employees (head

count)

Number of non-guaranteed hours employees (head

count - annual average)

Number of full-time employees (head count)

2,543

907

3,450

Number of full-time employees (head count - annual

average)

2,574

904

3,478

Number of part-time employees (head count)

Number of part-time employees (head count - annual

average)

Information on employees by contract type, broken down by region (head count)

HEAD COUNT

ROMANIA

Number of employees (head count)

3,489

Number of employees (head count - annual average)

3,511

Number of permanent employees (head count)

3,365

Number of permanent employees (head count - annual average)

3,377

Number of temporary employees (head count)

124

Number of temporary employees (head count - annual average)

134

Number of non-guaranteed hours employees (head count)

Number of non-guaranteed hours employees (head count - annual average)

Number of full-time employees (head count)

3,450

Number of full-time employees (head count - annual average)

3,478

Number of part-time employees (head count)

Number of part-time employees (head count - annual average)



NUMBER AND RATE OF EMPLOYEE TURNOVER

TOTAL

Employees who have left undertaking

(497)

Turnover rate

-14.1%

Number of employees previous year

3,532









for the financial period ended 31 December 2024

179

Convenience translation in English of the original Romanian version





S1-7 - Characteristics of workers who are not employees in the enterprise's own workforce

For those who are not employed we will report the data in HC; The categories are:













The indicators have not been subject to independent verification by an external body.

S1-8 - Coverage of collective bargaining and social dialogue

Collective bargaining coverage and social dialogue

COLLECTIVE BARGAINING COVERAGE

SOCIAL DIALOGUE

COVERAGE RATE

EMPLOYEES  EEA (FOR

COUNTRIES WITH >50

EMPLOYEES

REPRESENTING > 10%

TOTAL EMPLOYEES)

EMPLOYEES  NON-EEA

(ESTIMATE FOR REGIONS

WITH >50 EMPLOYEES

REPRESENTING > 10%

TOTAL EMPLOYEES)

WORKPLACE

REPRESENTATION (EEA

ONLY)(FOR COUNTRIES

WITH >50 EMPLOYEES

REPRESENTING > 10%

TOTAL EMPLOYEES)

0-19%

20-39%

40-59%

60-79%

80-100%

România









for the financial period ended 31 December 2024

180

Convenience translation in English of the original Romanian version











At national level, workers' interests are represented by trade unions in accordance with applicable labour law and social dialogue. Representation of

workers and dialogue with their trade union representatives is carried out in accordance with applicable local legislation and trade union agreements

in force. The company shall permit workers' representatives to engage in trade union activities in accordance with applicable local law and applicable

trade union agreements

In Romania, we remain committed to improving social dialogue, where workers' interests are represented by trade unions in accordance with applicable

labour law and social dialogue. 



The indicators have not been subject to independent verification by an external body.

S1-9 - Diversity indicators

Gender distribution at top management level

NUMBER OF EMPLOYEES

AT TOP MANAGEMENT

LEVEL

PERCENTAGE OF

EMPLOYEES AT TOP

MANAGEMENT LEVEL BY

GENDER

Male

42.11%

Female

57.89%

Total

100.0%

Employee distribution by Age Group

NUMBER OF EMPLOYEES (HEAD COUNT) BY AGE GROUP

NUMBER OF EMPLOYEES

Under 30 years old

623

17.86%

30-50 years old

2,305

66.06%

Over 50 years old

561

16.08%

The data and indicators presented have not been subject to independent assurance by an external body.

S1-10 - Adequate salaries

All colleagues receive adequate salaries. Adequate salaries are defined in accordance with collective agreements where such agreements exist. In

countries where collective agreements are not applicable, adequate wages are defined as the prevailing 'minimum wage' set by local regulations.

In UniCredit Bank Romania, the minimum wage as well as potential wage increases are defined and periodically reviewed through collective labour

agreements signed at bank level and also at sector/bank level in Romania, being above the national minimum wage. As a result, there are no salaries

below these negotiated levels

The indicators have not been subject to independent verification by an external body.

S1-11 - Social Protection

All colleagues are covered by social protection through national programmes in accordance with local laws.

The indicators have not been subject to independent verification by an external body.



for the financial period ended 31 December 2024

181

Convenience translation in English of the original Romanian version

S1-12 - People with disabilities

A person with a disability is someone whose health condition limits their ability to carry out certain activities, such as movement, work or social

inclusion.

Employees with disabilities

NUMBER OF EMPLOYEES

TOTAL

Employees with disabilities

Total number of employees

3,489

Percentage of employees with disabilities

The indicators have not been subject to independent verification by an external body.

S1-13 - Training and skills development indicators

Training hours are defined as time devoted to training and skills development, including classroom and virtual sessions, online courses, workshops,

certification programmes, educational opportunities. The indicator does not include time developing courses .

To calculate the training hours per employee, broken down by gender, we divide the total training hours recorded during the reporting period by the

number of employees of each gender. All UniCredit employees are included in these analyses, thus fulfilling the CSRD requirements for consistent

and transparent reporting of training and development data. The metrics have not been independently verified by an external body. The percentage

of employees participating in performance appraisals is calculated using the total number of employees in S1-6 as the denominator. This total includes

employees who are not eligible for appraisal but continue to be part of the workforce, thus preventing the measure from reaching 100%. Since all

persons in the excluded categories are counted as non-participants, the rate does not reflect only those who are eligible and participate in assessments.

The number of hours for the "Other" category will not be reported due to data confidentiality rules. The indicators have not been subject to independent

verification by an external body.

Training and skills development indicators by gender

TOTAL NUMBER OF

EMPLOYEES

TOTAL NUMBER OF

EMPLOYEES THAT

PARTICIPATED IN

REGULAR

PERFORMANCE AND

CAREER DEVELOPMENT

REVIEWS

PERCENTAGE OF

EMPLOYEES THAT

PARTICIPATED IN

REGULAR

PERFORMANCE AND

CAREER DEVELOPMENTS

REVIEWS

Male

925

890

96.2%

Female

2,564

2,285

89.1%

Other

Total

3,489

3,175

91.0%

Average number of training hours by gender

TOTAL NUMBER OF

EMPLOYEES

TOTAL NUMBER OF

TRAINING HOURS

AVERAGE NUMBER OF

TRAINING HOURS PER

EMPLOYEE

Male

925

23,404

Female

2,564

63,321

Other

Total

3,489

86,725

The data and indicators presented have not been subject to independent assurance by an external body.



for the financial period ended 31 December 2024

182

Convenience translation in English of the original Romanian version

S1-15 - Work-life balance indicators

Percentage of entitled employees that took family-related leave by gender

NUMBER OF ENTITLED

EMPLOYEES THAT TOOK

FAMILY-RELATED LEAVE

PERCENTAGE OF

ENTITLED EMPLOYEES

THAT TOOK FAMILY-

RELATED LEAVE

Male

189

30.24%

Female

436

69.76%

Total

625

100.00%

At UniCredit, all employees have the right to take family leave. We guarantee employees the right to family leave, as outlined in our employment

policies, handbooks and contractual terms. This commitment aligns with applicable labour regulations and supports our CSRD obligations by promoting

a supportive and inclusive work environment. The indicators have not been subject to independent assurance by an external body.

S1-16 - Compensation indicators (pay gap and total compensation)

The unadjusted pay gap calculated as (average gross hourly average hourly gross salary level of male employees - average gross hourly average

salary level of female employees/average gross hourly average salary level of male employees) x 100) valid for the Local Group is 23.39%

The total compensation ratio of the highest paid employee to the median Group employee is 16 as of December 2024

To calculate the median salary, all legal entities were requested to provide a comprehensive dataset including total pay, which consists of gross salary

and variable compensation.

Average total employee remuneration includes fixed and variable compensation and has been calculated taking into account the annual gross salary

for all employees.

The total annual remuneration of the highest paid employee includes fixed, variable equity compensation at fair value .

The data and indicators presented have not been subject to independent assurance by an external body.

S1-17 - Incidents, complaints and serious human rights impacts

Number of incidents of discrimination and number of complaints

31.12.2024

Total number of incidents of discrimination

Total number of complaints filed through channels for people in own workforce to raise concerns

Total number of complaints filed to National Contact Points for OECD Multinational Enterprises

In the context of the Anti-Harassment Rule in force, 8 complaints were received and investigated in UniCredit Bank Romania in 2024, none of them

were upheld and therefore no disciplinary sanctions were imposed for these complaints.













The data and indicators presented have not been subject to independent assurance by an external body.



for the financial period ended 31 December 2024

183

Convenience translation in English of the original Romanian version

S2 - Value chain workers

Impact, risk and opportunity management

S2-1 -Policies related to value chain workers

UniCredit SpA Group recognises the importance of human rights, including in its relationship with its value chain. Respecting and guaranteeing human

rights is addressed by UniCredit SpA Group through its Human Rights Commitment, which covers the material impact resulting from the DMA.

Awareness and dissemination of the culture of ethics and human rights (child and forced labour) by business partners and other stakeholders increases

accountability and fair practices along the value chains.



 

 

 

 

 

 





                   





    



 

 

 

 

The Group continuously assesses human rights impacts and risks, taking into account UniCredit SpA Group's operations and activities, the external

environment (e.g. country risks), international developments (e.g. development of laws, principles and standards), and the results of stakeholder

engagement activities.

Evaluation is a continuous process realised thanks to the contribution of all functions that assess the Group's impacts and risks, including human

rights, in their daily activities.

There are no significant negative impacts, material risks and opportunities to be disclosed.

The Human Rights Commitment applies to UniCredit partners and their employees as indirect social actors. The Commitment encourages awareness

and dissemination of a culture of ethics and human rights among UniCredit's stakeholders, while enhancing accountability and fair practices along the

value chains.

UniCredit SpA Group recognises the importance of a follow-up system to ensure that human rights requirements are monitored. Potential cases of

human rights violations are identified and the negative impact on human rights is properly managed and, if situations exist, that is addressed.

In addition, in 2023, UniCredit SpA published a Declaration on the Modern Slavery and Human Trafficking Act, addressing human trafficking, forced

labour and child labour: The Declaration is intended to disseminate our culture of ethics and respect for human rights. Group

Locally, we follow the UniCredit SpA Group framework and have carried out Double Materiality Assessment (DMA), taking into account the Group's

impact in the value chain, aiming to make a positive contribution to the objectives of ensuring equal opportunities, fair working hours, health and safety

conditions and adequate wages by promoting social dialogue. In addition, developing young talent and promoting gender equality, inclusive and non-

discriminatory practices that avoid violence against workers in the value chain is an important part of the Bank's long-term objective.



for the financial period ended 31 December 2024

184

Convenience translation in English of the original Romanian version

For more details on the UniCredit SpA Group Statement on the Modern Slavery Act and the UniCredit SpA Group Commitment on Human Rights,

please refer to "MDR-P policies adopted to manage material sustainability issues".

S2-2 - Engagement processes with value chain workers on impact

At present, we do not have any specific engagement processes in place that target our clients' workers.

S2-3 - Processes to address negative impacts and channels through which value chain workers raise

concerns

We do not currently have a specific channel for raising concerns dedicated to our clients' workers.

S2-4 - Taking action on material impacts on workers in the value chain and approaches to managing

material risks and pursuing material opportunities related to workers in the value chain, and the

effectiveness of these actions

We do not currently have any specific actions targeting our clients' workers, as they are not a direct target of our activities. We are therefore not in a

position to take direct action in relation to them.

Metrics and targets

S2-5 - Objectives related to managing significant negative impacts, promoting positive impacts and

managing significant risks and opportunities

We do not currently have any specific actions targeting our clients' workers, as they are not a direct target of our activities. We are therefore not in a

position to take direct action in relation to them.

S3 - Affected communities

Impact, risk and opportunity management

S3-1 -Policies related to affected communities

The Group's relationship with affected communities is evidenced by existing policies that address material impacts and opportunities arising from the

DMA process:

Impacts:

 Contributions to various social causes with positive socioeconomic impacts such as education, health, and community development

programmes;

 Improving access to credit and disseminating financial culture in the communities, with a focus on supporting younger and more

vulnerable and/or low-income groups through dedicated products and services in order to enhance economic development and investor

confidence.

Opportunities:

 Strategic community partnerships, collaborations with local organisations, industry and professionals' associations and community groups

to create sustainable and impactful programmes;

 Improvement of relationships / consolidation of positioning within territories and communities of reference through the promotion of initiatives

of financial inclusion targeting vulnerable groups;

 Establish and promote employee volunteering programmes that contribute to the well-being and development of local communities and

support associations and projects in the area;

 Increase in market share through the expansion of product offerings with positive social impact, such as those related to the third sector;

 Opportunities for the Bank to gain an improved image among competitors and attract socially conscious investors, if it is able to anticipate

and react to political and societal changes.



for the financial period ended 31 December 2024

185

Convenience translation in English of the original Romanian version

As far as UniCredit SpA Group is concerned, the Human Rights Commitment also applies to the affected communities, guaranteeing that the human

rights of communities are respected in line with the generally accepted international instruments. As highlighted in the general section, our Commitment

is aligned with internationally recognized instruments, including the UN Guiding Principles on Business and Human Rights, ILO Declaration on

Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises that involve affected communities. There have been no

cases of non-compliance with reference to affected communities.



The UniCredit SpA Group strives to make a positive contribution in the countries where we operate, going beyond business conduct based on best

practices to actively contribute to the well-being and advancement of the people. This includes acknowledging and promoting the importance of human

rights and related topics among communities.

The long-standing tradition of supporting communities is based on the strong link between cultural and economic investment, sustainability and social

inclusion, fostering a sense of belonging and promoting shared knowledge and dialogue, art, music and sport. Through strategic partnerships,

sponsorship and specific projects, UniCredit SpA Group endeavours to make them more accessible, with an emphasis on engaging younger

generations. At UniCredit SpA Group, but also at Group level, we respond to emergencies by putting our bank's expertise and infrastructure at the

service of our communities.

Through the UniCredit Foundation, UniCredit is committed to supporting education across Europe and making a genuine impact on the prospects of

young people. Investing in education is a linchpin for ensuring comprehensive growth and development across society and fostering a better future

for individuals and their communities.

As responsible financial habits are fundamental to stimulating real cultural change and community development, UniCredit also develops a range of

financial education programmes and tools across Group countries in order to improve the personal financial management skills of our citizens. This is

also the case in Romania, where the Group implements the UniCredit Foundation's financial education programmes, but also develops and implements

local ones.

In line with UniCredit's values, the Foundation is also dedicated to involving Group employees in social initiatives. This involves matching their

donations and supporting local communities in times of crisis or need. As formalised in our internal practices, the Group promotes employee-involved

volunteer programmes that contribute to the well-being and development of local communities.

As part of its product offering, the Group has a positive impact on communities through social finance, with the aim of providing access to financial

services for vulnerable groups and supporting companies to become more socially orientated.

As emphasised in the ESG Product Guidelines, the perimeter of social finance consists of four categories:

 Inclusive Financing, which aims at including those at risk of economic and social exclusion through microcredit;

 Impact Financing, which supports projects and initiatives that, in addition to generating economic returns, have objectives of positive,

tangible, and measurable social impacts;

 Social Housing, which supports real estate and urban interventions that aims to help low-income people to access decent housing at

affordable prices;

 Loans with high impact on society, such as loans to Not for profit organizations, loans to religious bodies, loans supporting the

realization of health and social infrastructures.

For more information on the policies described, please see section MDR-P - Policies adopted to manage significant sustainability issues

S3-2 - Processes to involve affected communities on impacts



We continually involve communities in our activities, involving different stakeholders in different initiatives and also organising specific events to

strengthen our links with territories, social partners and communities. The frequency of engagement depends on the type of initiative organised.

Following specific events and initiatives, we always seek suggestions from the stakeholders involved to gather their views.

The ESG Director, the Identity & Communication Director and the People & Culture Director are the most senior roles with responsibility for ensuring

engagement with communities.

The perspective of the affected communities is obtained in particular with reference to the stakeholders who are likely to be mainly affected by the

impact (i.e. vulnerable groups such as people on low incomes, people at risk of social and financial exclusion, young people and students, people with

disabilities, women, the elderly, etc.).



for the financial period ended 31 December 2024

186

Convenience translation in English of the original Romanian version

To ensure sustainable progress in communities, we capitalise on our social contribution - focusing on specific projects related to youth, education and

just transition. This is in line with our commitment to promote the financial inclusion of clients and vulnerable people, as outlined in the PRB report.





Working with NGOs

We have strengthened our engagement with NGOs and civil society in general, carrying out dedicated initiatives where appropriate to address any

identified gaps in our strategic ESG positioning and to highlight the Group's improvements on material sustainability themes such as just and fair

transition and decarbonisation. Throughout the year, we worked continuously with NGOs to:

 sharing our objectives and concerns on the green transition

 their participation in bank surveys and engagement questionnaires

 interaction on relevant reports and round tables

 their involvement in our stakeholder engagement initiatives (for exemple, ESG Day)









Engaging with the community

ESG Day

On 14 November 2024, UniCredit organised the second edition of ESG Day: 'A challenged future: choosing the path ahead-day event

focussed on our clients and provided a framework to discuss challenging sustainability issues and trade-offs in with a view to defining concrete

solutions. Over 13,000 participants joined the event, either online or in person at ten different UniCredit SpA Group locations.

The event served as a forum to review and assess the concrete solutions available to us as we seek to address a range of pressing challenges. How

can we go about solving the trade-off between environmental and social concerns? How can we balance profit and sustainability? And how can we

best accompany our clients as they navigate a complex transition? We probed into all of this and more through a series of panels, with expert speakers

challenging the status quo without losing focus on the importance of building this path together.

Locally, we had a parallel event with a physical presence at our headquarters, with over 120 participants (mostly corporate clients) and covered topics

such as our ESG strategy and social commitments, an open dialogue on ESG risks and opportunities and a seminar dedicated to clients working in

the agri-food sector, focusing on innovation.

(for more information: ESG Day - UniCredit)

ESG Day at local level introduced:

 Skills for Transition, a social programme, fully funded by UniCredit Group SpA.

It delivers strategic training to young people, including students and those not in education, employment or training (NEETs), and companies

expected to be impacted by the green transition, helping them to develop the skills they need to meet the demands of a changing

environment whilst generating a measurable social impact

The initiative is firmly in line with the UniCredit SpA Group's commitment to promote a just and fair transition, along with its continued

support for education - a key factor for Europe's future. Together, they are part of the Group's stated aim to empower its communities to

progress

The Skills for Transition programme was launched in 2024 and runs in six countries of the UniCredit SpA Group: Italy, Germany, Bulgaria,

Czech Republic, Slovakia and Romania.

 ESG Journey, a local programme organised by The Social Innovation Solutions, fully supported by the Group, which is part of our

commitment to work with our clients for a just transition and represents a series of events dedicated to the entrepreneurial environment in

Romania. In 2024, the programme consisted of a tour in 8 cities: Bucharest, Timisoara, Oradea, Brasov, Constanta, Iasi, Craiova and Cluj,

where we met with over 800 corporate companies and other stakeholders from the respective regions and openly discussed the risks and

opportunities that the transition to a sustainable economy brings.

 







 













for the financial period ended 31 December 2024

187

Convenience translation in English of the original Romanian version

       

    







                





As part of our social commitment, in 2024 we deployed 2 financial education programmes - Start Major, Smart Leo.

In 2024 we had over 5,500 beneficiaries in the programmes we supported locally - Start Major (5th edition) and Smart Leo (1st edition).

Start Major is a programme implemented by The Social Incubator Association, fully supported by the Group, which aims to contribute to the formation

of a generation of young people well prepared for the challenges of professional and independent life. The programme offers a comprehensive and

structured approach, divided into three core modules. Each module offers young people in vocational and technical education not only theoretical

concepts but also practical experiences and real development opportunities. The programme includes:

 Module I - Financial education: training in responsible management of financial resources, giving young people a solid foundation for a

stable financial life.

 Module II - Career and Employability: developing the skills needed to integrate into the labour market, including CV development, interview

preparation and career planning.

 Module III - Entrepreneurship: Practical workshops and camps that cultivate entrepreneurship, providing applied experience in developing

business ideas.





In November and December, the three-day Module III entrepreneurship camps took place, where young people develop their business knowledge,

working with trainers to develop and implement innovative ideas. The end of the year also brings the Pitch Day competition, a culminating moment

where teams will present their business ideas and compete for prizes, preparing for a secure and independent professional future.

Through Start Major, young people learn how to manage their personal finances, plan their professional future and build a relevant and sustainable

career. The programme not only prepares them to find their place in today's economy, but also gives them the chance to become tomorrow's leaders

- people who can think strategically, make informed financial decisions and actively contribute to their communities.

Smart Leo is a programme run in partnership with the Dean Lions Club Association, which aims to increase the number of young people benefiting

from basic financial literacy, raise awareness of environmental and sustainability issues, and help young people develop ideas and implement business

projects related to sustainability. In 2024 the programme reached a total of 787 beneficiaries in its first edition. The programme was developed in four

phases:

 Stage 1 - Train the trainers - financial education basics and introduction to sustainability;

 Stage 2 - financial education and sustainability training

 Stage 3 - the training camp organised for a selected number of 20 beneficiaries willing to deepen their knowledge and develop a sustainable

business project;

 Stage 4 - pitch day and selection of winning projects.

In 2024 we increased the number of volunteers and ~1,000 hours were spent volunteering in programmes dedicated to our communities,

also supporting initiatives within the UniCredit Foundation (e.g. Teach for All, Junior Achievement, etc.)

The Group has consistently supported financial literacy and entrepreneurship programmes in the fields of arts and culture as well as business and

education, with a focus on supporting young people as well as entrepreneurs. To this end, the bank has been involved in projects that have provided

support and grants to entrepreneurs in the framework of a digital entrepreneurship education platform, contributed to the development of

entrepreneurial residencies and joined numerous entrepreneurship education actions. Projects supported include: RomanESTI - digital platform for

entrepreneurship education and grants, F&B Business Accelerator, Brand Minds Conference, Techsylvania International Conference in Cluj Napoca,

The Entrepreneurs Tours - series of national educational conferences, scale-up and mentoring programmes organised by Endeavor Romania, etc.

At local level, educational partnerships continued, such as the Brio Challenge (Maths and Olympiads) organised by the Brio National Assessment

Association, the music education programme "Classic is Fantastic" organised by the George Enescu Philharmonic, Start Major - Social Incubator

Association, Diploma Festival - for graduates of vocational faculties, programmes such as "For the Schools of the Future", from the Values in Education

Association, 'Vocational Compass' - Edu Act Association, Future Career Days in Universities - Alaturi de Voi Association, Chess in School - Gambitul

- - Bookland Association, support for the

organisation of the Dare to Learn Conference dedicated to teachers - Dialog for Education Association, university scholarships, students - Merci

Charity Boutique Association; music scholarships - Royal Margaret Foundation of Romania, educational project in schools about posture - #staidrept

- Kineto Bebe Association, educational programme for seniors in the field of cyber security - Romanian Institute for Active Ageing, supports educational



for the financial period ended 31 December 2024

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programmes in universities (such as: West University of Timisoara, Technical University Cluj-Napoca, Ovidius University Constanta, Faculty of

Economics and Business Administration, Galati, ASE Bucharest, Faculty of Automatics and Computers, etc.).

Social and health projects

The Group contributed alongside other organisations with humanitarian reconstruction support for the people affected by the catastrophic floods in

Galati, allocating substantial funds to 3 organisations involved at local level: Volunteer for Life, Fundatia Inima de Copil, Habitat for Humanity

Association.

Volunteer for Life - "Together for Galati" programme represented a convoy of humanitarian aid with supplies: mattresses, beds, linen, sanitary and

personal hygiene materials, as well as the participation of dozens of volunteers who worked for over 60 days on reconstruction, supporting the flood-

affected population in the localities of Galati county, helping people to clean their homes and to repair as much as possible.

Inima de Copil Foundation - support for the relocation and provision of supplies for the day care centre for children in Pechea, affected by the floods

in Galati county.

Habitat for Humanity Romania Association - intervention for the reconstruction/repair of 400 of the most affected households; damage assessment

and support to the most vulnerable families with social rental accommodation and technical assistance.

orts centre in Deva, as well as

a new Stomatologic Social dental surgery, support for the causes of the "Zi de Bine Association" (among which we list some: the setting up of the

Medical-Educational Centre for Young People and Adolescents with Addictions, C.R.E.A.A.A.Ti.V., at the Voila Psychiatric Hospital in Campina, free

workshops for seniors at the Community Day Centre in Bucharest, the provision of a dedicated area and the creation of a recreation space for patients

at the "Dr. Victor Gomoiu" Children's Hospital, as well as the organisation of a camp for children with eating disorders, the organisation of an anti-

bullying education camp for children, etc.).

We have also continued to support projects of organisations focused on autism (Invingem Autismul), oncology (APCAO), social integration - Concordia

Humanitarian Organisation, Casa Buna - Roma children, Real Help - with a professional retraining programme for disadvantaged groups, Merci Charity

Boutique Association - dental treatment for children from disadvantaged backgrounds, support for sick children or children living in extreme poverty -

SOS Children's Villages, Hospice Casa Sperantei and many others.

We are also involved in the area of health education conferences, such as Human is the New Normal and Well Well (educational conference series).

Environmental projects

In 2024 we planted trees together with the Plant Good Deeds Association and with the support of over 50 UniCredit volunteers.

Sports projects





S3-3 - Remedial processes to address negative impacts and channels for affected communities to

voice their concerns

G1-1 - Business Conduct Policies and Corporate Culture 



S3-2 - Processes for involving affected communities on impacts 

S3-4 - Taking action on the material impact on affected communities and approaches to manage

material risks and tracking material opportunities related to affected communities, and the

effectiveness of these actions

We support communities and vulnerable individuals, for whom we offer a wide range of financial education programmes to raise awareness of

economic issues and reduce social gaps. We continuously support communities through our strategy, focussing on social finance, our own social

contribution to our communities and the support we provide to our people.



for the financial period ended 31 December 2024

189

Convenience translation in English of the original Romanian version

The effectiveness of all our initiatives is tracked in different ways depending on the specific intervention under consideration. This is mainly through

suggestion sessions, ad-hoc surveys, interviews, satisfaction questionnaires, workshops, engagement events and awareness campaigns.













In 2024, the Group offered a wide range of benefits to low-income and vulnerable people, as follows:

 a product dedicated to financially vulnerable customers (net monthly income < EUR 600 according to local legislation) who do not have

nd an

attached debit card, with multiple benefits included free of charge (entries, payments, cash deposits and withdrawals at ATM and cashier,

Direct Debit, balance enquiry)

 a product dedicated to pensioners that includes a lei account and an attached debit card with free basic transactions (e.g. deposits,

payments in lei via digital channels, cash withdrawals at ATMs, direct debit)

 a dedicated product for customers receiving benefits or social allowances, including an account in lei and EUR and an attached debit card,

with free basic transactions (cash withdrawals, payments in lei via digital channels, cash withdrawals at ATMs, direct debit)

 a product dedicated to citizens coming from Ukraine or customers of Ukrainian nationality (available only for in-stock customers from 1

March 2024) - including a RON, EUR and USD account and an attached debit card with multiple benefits included free of charge (free cash

in, payments, cash deposits and withdrawals at ATMs and cashier, direct debit, balance inquiry)

Young people

A dedicated offer for customers up to 24 years, including a RON account and an attached debit card, with free basic transactions (cash in, RON

payments through digital channels, ATM cash withdrawals, direct debit)

People with disabilities

All the new plastics issued (PI and LE) contain the notch for the visually impaired to separate debit, credit and prepaid cards.

Microcredit for micro-entrepreneurs at risk of financial exclusion

Offer with a personalised service model supporting people at risk of financial exclusion, micro-entrepreneurs and start-ups.

Our model of microcredit services supports micro-entrepreneurs and builds their skills through a end-to-end process, from business plan development

to early-stage business support and leveraging local and international partnerships.



ompanies providing

training to their current or future employees, organisations active in the skills, education and training sectors, and organisations providing ancillary

services to skills, education and training to develop a continuous development market for inclusion, social and educational funding.

The purpose of "Skills and Education" guarantee transactions is:

(a) support the employee training, apprenticeship and skills transformation efforts undertaken by European enterprises by providing funding for

upskilling and utilising the skills set of the workforce, thereby contributing to increased competitiveness and productivity while maintaining the jobs of

employees; or

(b) improving access to funding for both existing and new European organisations active in the field of skills, training and education or developing

projects in the field of education, with the aim of stimulating their development, growth and internationalisation, and significantly improving the

ecosystem and delivery of education, training and skills services; or

(c) supporting the development and/or implementation of ancillary services for skills, training and education, including enabling/coordinating entities'

support services, e.g. platforms and other digital tools, including those targeting individual learning accounts (ILAs), recognition and accreditation

services, student housing, student finance solutions.





 to those customers

who need them most - Start-ups and Freelancers - and for whom the most important resources when starting a business are the time and energy

needed to grow. The package includes one current account in lei and one in foreign currency (EUR or USD), a business debit card, internet banking

applications, and a selection of essential transactions (cash or non-cash), all free of charge. What's more, they offer a unique cash-back feature,

depending on the turnover of their accounts, whereby they can offset some of the fees charged for services or transactions not included in the package.



for the financial period ended 31 December 2024

190

Convenience translation in English of the original Romanian version



 

 

 

 





                  



We have a responsibility to give back, to educate and to help build society. The relationship between the Group and the communities in which it

operates has evolved naturally as the Bank actively engages in projects year after year with a long tradition of supporting culture, out of the belief that

this is a way to promote social and economic progress, as well as to encourage dialogue on innovation, social cohesion and a sense of belonging. In

the cultural area, UniCredit has been and continues to be one of the most active supporters, assuming the role of long-term partner.

One of the longest-running projects in which the Group has been involved over the years is the Sibiu International Theatre Festival (FITS), which

reached its 31st edition in 2024, a true cultural landmark in Romania and worldwide.

In 2024, Romania will inaugurate its Pavilion located in the Giardini della Biennale, at La Biennale di Venezia. The project, which represented Romania

at the 60th edition of the most important event dedicated to contemporary art in the world, belongs to t

labour". The group has been supporting Romanian artists exhibiting in Venice for over 10 years, continuing to contribute to the creative industries and

Romanian culture.

The group also supported the Sonnabend Exhibition at the National Museum of Art of Romania, the Ioana Nemes Exhibition at the National Museum

of Contemporary Art, the Turn Signals Exhibition in Bucharest by Faber Timisoara, the Museum Night, the launch of the album 

SCULPTURA dupa", a retrospective of Romanian sculpture in the last 50 years, etc.

on to financial

support, we organised education and support modules for young people in the creative industries.

In the area of film, we supported the production Flavours of Romania, season 3, a Netflix production coordinated by Charly Ottley, which showcases

areas of our country and represents a great opportunity to increase the notoriety of our country in Europe and beyond. Also with our support, Les Films

de Cannes a Bucarest, one of the most awaited film festivals in Bucharest and Timisoara, took place. A series of festivals complemented UniCredit's

presence in the communities in which it operates: Weekend Sessions, SoNoRo, Garana Jazz Festival, Brezoi Festival, JAZZx TM, Wild Experience

Fest, Art and Design Square, RAD Fair, Babel FAST Targoviste, Shakespeare Festival in Craiova and others.







where UniCredit SpA Group operates





 









 











In 2024 the Foundation oversaw the implementation of 26 non-profit organizations projects selected and funded through the 2022-2023 Calls for

Education.

 













for the financial period ended 31 December 2024

191

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

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

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











S3-2 - Processes for engaging affected communities on impact 

S3-2 - Processes to engage

affected communities on impact







Metrics and targets

S3-5 - Objectives related to managing significant negative impacts, promoting positive impacts and

managing significant risks and opportunities

We do not currently have objectives related to promoting positive impact and managing material risks and opportunities.

In addition, negative effects are not applicable.

S4 -Consumers and end-users

Impact, risk and opportunity management

S4-1 -Consumer and end-user policies

The Group recognises that the financial sector plays an important role in the economy, ensuring stable markets and providing financial support to our

society. Banks also have an important social function that goes far beyond lending. They act as one of the engines of social progress and help

customers and communities to make significant progress towards a more sustainable, inclusive and equitable society in the long term. Our principles

towards our clients are formalised in our policies, which address the impacts, risks and opportunities arising as material during the DMA process:

Impacts:

 Ensure the Group transformation of the distribution and production model, making it more sustainable through greater digitalisation, the

creation of new technologies, the access to information, the adoption of cloud solutions, the use of AI.

 Breach and loss of customer data and poor cybersecurity management.

 Informed decisions to customers through transparent, neutral and fair advice, also providing the possibility to express their feedbacks.

 Increased and improved customer satisfaction and end-users experience by meeting their expectations.

Risks:

 Operational risk: Risk of operating losses due to unauthorized access to customer data (data Breach) with the purpose of obtaining a

personal advantage and due to cyber attacks.



for the financial period ended 31 December 2024

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 Reputational risk: failure to meet the consumers and end-guarantee the customers' data integrity that may lead to

negative impacts.

Opportunities:

 Creation of a long-term relationship with customers through a strong and safe ICT systems.

 Expansion of market shares and improvement of retention thanks to the implementation of solutions, products and digital / innovative

services.

 Enhance client loyalty and retention through the optimization of corporate assets in terms of privacy and data security and quality

information.

 Enhancement of relationships with clients and shareholders through clear and transparent communication.

Within the Group, the Human Rights Commitment also applies to our clients and is regularly updated to ensure compliance with key international

standards and norms (such as the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights

at Work or the OECD Guidelines for Multinational Enterprises).

In 2024, there were no cases of non-compliance with these rules in relation to customers.

Our financial and sales activities must responsibly respond to customer needs, leveraging the skills and professional conduct of our employees, the

best products and services, our streamlined business model based on the Group's values of Integrity, Ownership and Caring, and the alignment

between the incentive system and the achievement of long-term value creation and sustainable results. Our Code of Conduct formalises our

commitment to ensuring that our clients receive clear, neutral and fair advice and transparent communication, while providing the opportunity to voice

their suggestions. The Group has mechanisms in place (e.g. whistleblowing procedures, handling of customer complaints, etc.) that enable us to

collect information about stakeholders' suggestions and grievances in relation to the Group's practices and any negative impact we may have caused

or contributed to through our own activities. We analyse processes from the customer's perspective, for example, identifying redundancies that could

be eliminated and ways in which we could improve the customer experience across all channels. All data and suggestions collected are analysed to

help us redesign processes and improve operations to better meet customer needs. At Group level, our complaint management system enables us to

identify sources of concern and resolve them promptly to the satisfaction of our customers.

Whistleblowing is our system for reporting illegitimate behaviour. See Section G1-1 - Business Conduct Policies and Corporate Culture for more

details.

Also at UniCredit SpA Group level, a tangible example of commitment is the Joint Declaration on "Responsible Sales" signed with the European Works

Council. The Declaration defines the common fundamental principles on which the behaviour underpinning UniCredit SpA Group's commercial

approach must be based. These principles are geared towards achieving sustainable strategic objectives and maintaining high environmental labour

standards.

The Group aims to meet customer expectations by providing innovative solutions, including the development of customised financial products and

services designed for customers and the wider community, while addressing the needs of vulnerable individuals and specific customer segments, as

outlined in the ESG Product Guidelines.

The Group is committed to the following principles/rights relevant to all categories of the Group's stakeholders, including customers, both individuals

and businesses, with particular attention to those who are socially and economically vulnerable.

Privacy and data protection

As formalised in the Privacy Rule and the Customer Protection Rule on banking products , the Group is aware of the importance of respecting the

privacy of its stakeholders (e.g. personal data and confidential information of employees and customers), including the disclosure of such information

to third parties. Our approach to data privacy and data protection is in compliance with local laws and regulations governing the subject matter and

applies to all forms of personal data, regardless of the stakeholder to whom it relates and/or the channel through which it was received. To mitigate

the risks of data breaches, we use appropriate administrative, technical, physical and security measures to meet legal requirements and to protect

personal data against loss, theft and unauthorised access, use or alteration. This approach increases customer loyalty and retention by optimising

corporate assets.

Sanctions

The Group is firmly committed to comply with all applicable sanctions regulations. In addition, the Group may decide to introduce additional restrictions

on business activities involving certain countries, organisations, persons, entities or goods, regardless of whether they are subject to a particular

sanction imposed by a country or an international organisation.

UniCredit recognises that certain sectors and activities require a tailored approach to ensure that transactional and related risks are comprehensively

understood and managed. For this reason, the Group has incorporated in its reputational risk policies the principles related to international agreements,

es) considering their

compliance and alignment as a minimum requirement for the client relationship, avoiding potential social and environmental impacts. By implementing

appropriate management and mitigation measures, UniCredit Group aims to minimise the risks associated with the transactions or projects financed



for the financial period ended 31 December 2024

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for its clients and counterparties. In terms of the application of sector policies, we have developed specific reputational risk assessment systems/tools,

some of which assess human rights aspects, to assess and track client risks and performance.

S4-2 - Processes to involve consumers and end-users on impacts

Engaging with our customers

Our strategic plan uses as KPIs Net Promoter Score (NPS) as the main predictor of customer loyalty and satisfaction score to assess customer

satisfaction at different points of interaction with the Bank/Group.

Since 2020, we have developed a comprehensive programme of listening to the voice of the customer to capture customer suggestions about our

products, channels and services, as well as to identify the key drivers and pain points impacting the relationship.

The results of the customer listening programme are carefully monitored, analysed and regularly discussed with the business lines and branch network,

and form the basis for streamlining and improving processes and products to ensure and maintain high levels of customer satisfaction and loyalty.

In Romania, NPS scores remained broadly stable, with a slight decrease for individuals +53 (-4% compared to 2023) and a very high score for

corporates +71 (+72 in 2023).

The Close the Loop programme is also implemented for our relationship surveys, because by contacting customers immediately after receiving their

suggestions, we are able to better address the issues raised.The Close the Loop programme offers the possibility to solve on the spot various issues

complained about in the relationship with the bank, which contributes to increasing customer satisfaction and loyalty. Thus, this programme offers the

opportunity to transform a detractor, dissatisfied and in danger of closing the relationship with the bank, into a promoter, loyal customer who would

recommend the bank to his acquaintances.

After years of experience and knowledge gained by collecting information from customers and prospects, in 20Banca has defined an integrated

approach with a benchmarking study that gives us insight into customer and prospect perceptions of their overall experience with the bank, reputation

and other indicators related to products, channels and services. It allows:

 fair comparison between the Bank and its competitors due to random selection of customers by the research provider (no customer lists provided

by the Bank)

 a single and comparable view across countries and segments of how the Bank is perceived.

In terms of the results of these market studies, in 2024 the Bank managed to be the best in class in both Individuals and Small and Medium Corporates,

11 points ahead of the competition for Individuals and +19 for Small and Medium Corporates

The results of the surveys and studies carried out in order to measure the level of customer satisfaction as well as their positioning in relation to the

main competitors are regularly transmitted to all the areas concerned and are used to create concrete actions aimed at improving processes, products,

launching new products, campaigns addressed to customers for cross sell and retention, etc.

S4-3 -Processes to remedy negative impacts and channels through which consumers and end-users

can raise concerns

The Group has mechanisms in place to collect information about stakeholders' suggestions and grievances with reference to UniCredit SpA Group's

practices and any negative impact we may have caused or contributed to through our own activities (e.g. whistleblowing policy that allows both

employees and third parties to report their concerns in good faith, handling of customer complaints, complaints procedure, etc). The whistleblowing

policy also applies to customers. For additional information, please refer to Section G1-1 -Business Conduct Policies and Corporate Culture and

Section S4-1 -Consumer and End User Policies

For general references, please refer to the UniCredit SpA Group's Human Rights Commitment.

Cybersecurity incident management activities aim to ensure the prompt detection and appropriate response to cybersecurity incidents, minimising

negative impact and helping to ensure the best possible levels of confidentiality, integrity and availability of information. Security incidents are managed

through strong detection processes and single points of contact based on the capabilities of the Security Operations Centre). In addition, training and

awareness activities are in place.

S4-4 - Taking action on significant impacts on consumers and end-users, as well as approaches to

managing material risks and pursuing material opportunities related to consumers and end-users, and

the effectiveness of such actions

There is an internal IT&C security incident framework in place, which includes roles and responsibilities for the management of security and ICT

incidents. If a security event is detected, it is categorised, communicated, escalated, resolved and reported appropriately. The process is directly linked

to crisis management to ensure that appropriate levels of communication and support are achieved when required. Following incidents, eradication

activities are defined to minimise the possibility of recurrence.

Training and awareness are described in Initiative B.1 Promoting a security culture, as well as in internal regulations and rules available to employees

on responding to security incidents,



for the financial period ended 31 December 2024

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

     





Main updates related to the Digital Risk regulatory framework in 2024:

 clear and concise definition of digital risk

 specific provisions for monitoring digital risk indicators

 Update the digital risk register, including third party risk in line with the evolution of digital risks

 Improvements to second level controls

 Continuous alignment with digital risk skills in line with industry standards required for staff across the group





                   



Reporting digital risks

The results of the level-two controls are reflected in the digital risk reporting section, enabling structured and comprehensive information aimed at

providing an independent, summarised and managerial assessment of the digital risks to which the bank is exposed. The main results are discussed

quarterly in the relevant local committees.

Some specific assessments have also been updated in the internal regulatory framework (Cyber and ICT Risk Management Framework and ICT

Process and Project Risk Assessment):

 The Operational Risk and Related Controls Self-Assessment (RCSA) has been extended to digital end-to-end processes

 The Cyber Security Risk Assessment (Cyber SRA) has been integrated with the related assessment of obsolete software and enhanced

to allow for automation within the level 2 control process.

Third party cyber security risk

Monitor the implementation of the IT&C third party security risk control framework, including escalation processes where necessary (residual

high/medium-high risk).

Review the risks for outsourcing and non-outsourcing arrangements of critical or important contracts in accordance with the Non-Financial Risk

Control Framework Standard on Outsourcing and Third Party Arrangements.



The new strategy has been issued to all subsidiaries directly controlled by UniCredit SpA Group.

At the local level, the Digital Strategy has been developed in line with the UniCredit SpA Group strategy, with the Industrial Business Plan at its centre,

which incorporates the bank's ESG initiatives. The local Digital Strategy was approved by the Management Board in November 2024.

The new digital strategy includes:

 continuous improvement and implementation of the global ESG infrastructure used to collect, enrich and aggregate granular ESG data,

supporting clients in their decarbonisation journey in terms of transition

 Integrate ESG KPIs into the bank's lending and pricing process, using a harmonised set of tools across countries and integrate ESG

applications with local underwriting tools and core systems services

To support the ESG strategy and initiatives, provided with digital infrastructure and KPIs for lending and pricing processes, the new digital strategy

includes the following actions:

 360° sustainable lending: covering a wide range of ESG indicators

 Integrated Strategic Empowerment: future ESG integrations in operations

 Support customer-financed emission reductions in line with Net Zero targets.

In line with the purpose of the 2024 sustainability report - focussing on impacts and opportunities for consumers and users - UniCredit Digital

highlights five key areas for action:



for the financial period ended 31 December 2024

195

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 Digital banking solutions using innovative technologies such as cloud computing, AI, UX, etc.

 Security

 Data and AI

 

 











           





























                 









A. 3) Key Action: Digital Accessibility

Description: In recent years, the European Union, in an effort to reduce fragmentation in the EU accessibility framework, has adopted the European

Accessibility Act (EAA) (EU DIRECTIVE 2019/882), while in Romania this regulation has been translated into Law 232/2020. This law targets the

private sectors and requires that essential products (digital and physical) placed on the market and services provided after June 2025 must be

accessible to persons with disabilities, including consumer banking services.

UniCredit is committed to providing a seamless experience for all its customers and therefore aims to implement the provisions of the digital

accessibility legislation by updating its digital products.

A. 4) Key Action: Mobile Digital Integration - Effortless digital integration for new customers - anytime, anywhere

Description: The Mobile Digital Onboarding solution enables new individual customers to open a current account with their debit card attached

seamlessly through the UniCredit Bank Mobile B@nking app. It provides a complete digital experience with identity verification using video tools, a

streamlined enrolment process for electronic signature and an enhanced customer experience while ensuring security, compliance and architectural

reliability.

Launch: November 2023; Development roadmap continues with additional features to further enhance the user journey and broaden customer

segments

Key benefits:

 Customer identification is simpler and faster using the video-selfie identification process

 The electronic signature is seamless, using QES and OTP disposable

 The enrolment session can be held at the request of the clients (resumption at a later available date)

 Less documentation required to be opened and validated



for the financial period ended 31 December 2024

196

Convenience translation in English of the original Romanian version

 Easy activation of the Mobile B@nking app at the end of the on-boarding process, where the customer can easily access additional

digital products and services (e.g. personal loan, credit cards)

 Instant collection of suggestions available

 Modern technology utilising microservices, ensuring scalability and easy reusability

 Enhanced security









 Promoting security culture

 Support business transformation in a secure way

 Further securing the Digital Foundation



                  





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Convenience translation in English of the original Romanian version

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





 













The Responsible AI Governance Programme will be built on the Responsible AI Principles (structured around key pillars and designed to achieve

specific objectives, from establishing a clear governance framework to improving AI literacy throughout the organisation).



Modernizing our infrastructure via dedicated initiative for obsolescence management

                



















Description: Learning opportunities designed for people working in the perimeter of the Digital Information Desk. The pathways have been designed

to meet the needs of each role and enhance related skills. Particular attention is dedicated to improving technical skills and developing soft skills.

In 2024, we used e-learning platforms - i.e. self-paced learning, allowing everyone to benefit from the content available there. These platforms offer a

high degree of flexibility, allowing access to training materials according to each user's needs and covering both technical and behavioural needs.

The e-learning platforms utilised are Udemy, MyLearning and our PLUS group platform, pathways designed with business experts to focus on useful

topics to improve the everyday work experience.

In addition, classrooms (virtual and/or face-to-face) run by internal and/or external teachers are organised to meet specific learning needs and

demands.



Description:Within the UniCredit SpA Group, and implicitly the Group, through Digital University and also Udemy, PLUS and MyLearning, we offer a

variety of learning products to reach everyone in the Group, using different channels and tools to fulfil different needs and ambitions.



for the financial period ended 31 December 2024

198

Convenience translation in English of the original Romanian version

At the Group level, the range of formats used for digital knowledge sharing spans from our most popular product, Digital Pitch (live web-streamed

presentations by external or in-house experts in cutting-edge technologies), to Tune-up (team calls by SMEs covering highly technical topics with an

extended Q&A session), which is new for 2024.

Matrics and targets

S4-5 - Objectives related to managing significant negative impacts, promoting positive impacts and

managing significant risks and opportunities

Security incidents and other cybersecurity KPIs have been established for internal monitoring purposes. They do not represent formal targets to be

achieved under the ESG and Digital Strategy.

The Principles for Responsible Banking (PRB) commitment on health and financial inclusion

As a signatory bank of the PRB Commitment on Health and Financial Inclusion, we have set new targets for 2025 related to the customer group we

have identified as our most relevant strategic focus, namely young people (i.e. people aged 17-30).

In the first real data collection for the selected indicators in 2024, we analysed the figures and processes in detail, implementing specific reporting

tools to collect and consolidate them. In order to align the figures and ensure consistency across countries, some adjustments were necessary, which

led to a change in the previously communicated official targets. The new targets are more challenging for both indicators, estimating higher growth

compared to the baseline.

SMART Objectives:

 Indicator CS028: Percentage of young customers with two or more active financial products in different categories, with Bank = actual

17.15% (2024), target 21% (2025)

 Indicator CS036: Percentage of new young customers per month = 30% actual (2024); target 32.1% (2025)

These objectives, increasing the financial inclusion of young clients, also positively affect the community (see chapter S-3: Affected Communities).

Governance information

G1 - Conducting business

Impact, risk and opportunity management

G1-1 -Business behaviour policies and corporate culture

UniCredit's corporate culture is built on business conduct policies that address the significant impacts, risks and opportunities arising from the

process of analysing double materiality:

Impacts:

 Contribution to the creation of an environment of fair competition, encouraging businesses to compete based on innovation and efficiency

rather than aggressive tax practices and reducing national tax evasion.

 Maximum generation of value and its distribution to shareholders/stakeholders.

 Awareness and dissemination of the culture of ethics, by management, employees, business partners and other stakeholders in own

operations.

 Ensure solid relationships with its suppliers and respect of agreed terms.

 Prevent the possible events of corruption and/or bribery through the training activities involving employees, top management and other

relevant stakeholder.

Risks:

 Operational Risk: The risk of money laundering, sanctions violations, bribery and corruption, and KYC failure.



for the financial period ended 31 December 2024

199

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Opportunities:

 Improvement in the quality of products and services purchased through a more sustainable supply chain and certified products

(incorporating minimum environmental criteria).

 Enhancement of reputation through investing in the development of innovative tools to manage, monitor and prevent corruption and bribery.

At the centre of our corporate culture is our Code of Ethics and Code of Conduct, which serve as the basis for all our actions and decisions. These

documents are not just formalities; they embody our commitment to integrity, transparency and respect in every aspect of our operations. We believe

that adherence to these principles is essential to promote trust among stakeholders and ensure long-term sustainability.

Our culture is part of the UniCredit SpA Group's strategic plan - UniCredit Unlocked, of which Romania is an integral part. In order to understand our

culture, we conducted an employee survey, interviews with senior management functions and focus groups with target audiences. Our objective is to

shape collective behaviour by focusing on the values chosen by our employees: Integrity, Ownership and Caring (for others).

UniCredit Spa Group has implemented various tools to promote our culture, including:

 Culture Network across all branches and strands, led by Sponsors and Champions of Culture. We created the Culture Network in June 2022 to

ensure that cultural initiatives are actively implemented. 13 countries, including Romania, and 11 group events are represented by a Culture

Sponsor (24 people), paired with a Culture Champion (28 people) who is leading the transformation of our culture by defining and implementing

local initiatives. They are extending their reach by engaging colleagues at a local level - now numbering over 1,500 colleagues.

 Culture-focused awareness and learning initiatives to create alignment around our values and work on inclusive solutions in all aspects of our

working lives. Since October 2022, more than 50 workshops and training sessions have been organised across the UniCredit SpA Group in

various countries and group functions, reaching more than 4,000 colleagues. Culture workshops are ongoing and are part of staff training. In

2024, group-wide Culture Boo tcamp, a new training format for managers focussing on culture, values and wellbeing/well-being, was developed.

The format was delivered for the first time in May, with over 50 colleagues now tasked with implementing the altelier locally, from 2025.

 Culture Day and Culture Roadshow in all entities. Under the umbrella of UniCredit Group SpA we organised Culture Day to celebrate our culture.

Culture Day took place in June 2024, and was a event organised in Munich, which was live-streamed and watched by 15,000 colleagues. In

parallel, at the local level we organised the "Cultural Treasure Hunt", aiming to familiarise colleagues with departmental activities in the spirit of

our values: Integrity, Ownership and Caring, involving around 1,500 colleagues.

 The Cultural Roadshow started, at UniCredit SpA Group level, at the end of 2022, and in Romania 2024 marked the organisation of the first

event of its kind.

 Meetings in Branches - Culture Jour Fixe in Branches were organised in 2023 to promote our values on Culture Day, and in 2025 we will take

the concept further to take our cultural transformation even further.

Organisational culture is changing, both in our day-to-day interactions and by emb embedding values at key points in the employee lifecycle. Group

and local management teams are leading this effort, and their commitment is essential. The Group CEO & DCEO along with the Culture Champion

attend regular meetings such as the CEO Cultural Progress Meeting. Management is always kept informed of developments and invited to key events.

The Sponsor, Culture Champion and our local network propose and implement cultural transformation initiatives relevant to Romania.

We actively contribute to actions , promoting ethical behaviour and setting clear standards, with the aim of

creating a working environment where responsibility and collaboration individual and collective success.

Within the Group, the Bank's Management Board and Supervisory Board play a crucial role in shaping and overseeing business behaviour. In

particular, the Management Board and the Supervisory Board approve the Group's Code of Conduct, which involves principles that all employees

and third party partners must adhere to in order to ensure high standards of professional conduct and integrity in relation to their work in or on behalf

of the Group.

The Code of Conduct has been written in line with the Group's values - integrity, ownership and caring - which drive our aim to deliver exceptional

performance and have a positive impact on our customers, shareholders, communities and people. At Group level, our mindset is to "win the right way

and together", putting our values at the centre of our decision-making and everything we do.

The Group's professional conduct is also driven by top management through the implementation of an annual "Tone from the top" programme. The

programme focuses on promoting compliance and risk awareness throughout the bank. Each year, top managers select a set of themes based on

risk factors that are sponsored and cascaded throughout the Group population.

In accordance with the applicable provisions, in the period prior to its renewal, the Management and Supervisory Boards shall determine the qualitative

and quantitative composition ("theoretical profile") considered optimal for the effective fulfilment of its tasks. In particular, the areas of competence

recommended in the latest theoretical profile included a specific area of competence on Legal/Regulatory/AML/Compliance, obtained through an

appropriate number of years of relevant functions in a financial services institution.



for the financial period ended 31 December 2024

200

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The Supervisory Board and the Management Board shall have an adequate number of members and an appropriate composition (in terms of

knowledge, skills, experience and number of independent members) in order to achieve effective coordination of all operations from a management

and control perspective.

The composition of the current Management Board and Supervisory Board corresponds qualitatively and quantitatively to the theoretical profile and

fulfils the appropriate requirements set out in the current provisions.

The composition of the Supervisory Board and the Management Board, respectively, should collectively ensure that they have the appropriate

knowledge, skills and experience to be able to:

 cover all areas of activity of the Group.

 understand the Group's activities, including the main risks.

 present their views and influence the decision-making process within the governing body.

 fulfil its responsibilities, including making appropriate decisions, taking into account the Group's business model, risk appetite, strategy

and the markets in which it operates.

The members of the Management Body shall be selected on the basis of professional knowledge and appropriate seniority, taking into account the

requirements of representativeness as well as the need to ensure a constructive dialogue within the related management body; the structure of the

bank's management body shall generally reflect sufficiently relevant professional experience. In this respect, collectively, in the case of the Supervisory

Board and the Management Board respectively, there is an adequate understanding of the areas for which the members are jointly and severally

responsible and of the competences for effective management and supervision of the Group, including the following:

 the Group's business and the main risks associated with it, including the risks of money laundering and terrorist financing;

 each of the bank's significant activities;

 relevant areas of sector/financial expertise, including financial and capital markets, solvency and modelling;

 accounting and financial reporting;

 risk management, compliance and internal audit;

 information technology and security;

 local, regional and global markets, as appropriate;

 the legal and regulatory environment;

 leadership skills and experience;

 the ability to plan strategically;

 management of national groups and risks associated with group structures;

 risks relevant to medium and long-term sustainability, current or previous exposure to sustainability issues

The Group is committed to ensuring compliance with our founding rules and has therefore developed a wide range of channels that promote our ethical

behaviour.

Whistleblowing is set out in a specific internal regulation - Policy on Reporting of Unacceptable Conduct - Whistleblowing In order to promote a

corporate culture based on ethical behaviour and good corporate governance, the policy regulates the reporting of unacceptable behaviour by

employees within the bank/group.

The policy is designed to:

 

 

The management of this process is designed to ensure the greatest possible protection and confidentiality of the identity of the whistleblower and the

accused person and to prevent any possible retaliatory or discriminatory behaviour in response to the report.

At the local level, the Compliance Department identifies the person in charge of the internal violation reporting system ("Whistleblower Champion"), in

the person of the Compliance Director for ensuring that the procedure is followed correctly.

The Group provides the following channels for employees and third parties to make whistleblowing reports, anonymously if desired:

           



 

 









 



 

 

 

 





for the financial period ended 31 December 2024

201

Convenience translation in English of the original Romanian version





 

The Group is committed to providing all employees with up-to-date and mandatory training on issues relating to the reporting of unacceptable

behaviour, relevant procedures to follow as well as the possible consequences in the event of misconduct. And to promote a culture of corporate

compliance, ethical conduct and good corporate governance, recognising the importance of a Whistleblowing (WB) Policy to govern the reporting of

unacceptable behaviour by employees and third parties.

Information about internal channels, process description and external channels provided by the local competent authority is available to third parties

on the bank's and UCLC's website and for employees and in the whistleblowing section of the bank's intranet. Local competent authorities could

activate dedicated whistleblowing reporting channels. European Directive 2019/1937 provides that whistleblowers may provide information about

breaches through external channels, after using internal whistleblowing channels or by reporting directly through external whistleblowing channels, if

the conditions set out in local legislation are met. The Whistleblower may also contact the competent local Authority in particular when he/she believes

that a Report will/will not be/is not taken seriously by the Bank, in accordance with Law 361/2022 on the protection of persons reporting breaches in

the public interest

The Annual Warning Report is approved by the Bank's Management Board and Supervisory Board and will be available to all employees.

To achieve our ethical standards, training and education are key elements in enhancing awareness of business behaviour and preventing possible

corruption or bribery.

The Compliance function, in collaboration with the People & Culture function, is responsible for the development of compliance risk training. A targeted

approach is applied to training courses (including mandatory training) which are available through a common Group platform to all employees at Group

level. The training courses are assigned to Group employees in accordance with their roles and responsibilities (including new hires) and are planned

to be completed within a certain time period (typically 60 days from the start date).

Each course is regularly updated according to new/updated regulatory requirements, internal rules, and business needs.

In 2024, 6 compliance training courses were developed to strengthen business conduct capacity: Financial Sanctions Management: key principles of

the sanctions framework, Unfair Commercial Practices, Integrity Warnings, Anti-Bribery and Corruption, 2024 Group Board of Directors Training

Programme - Insider Information Management and Confidentiality Assurance Measures, Anti-Money Laundering and Financial Sanctions (OFAC

Programme), Financial Sanctions - mandatory classroom training (target audience defined by UniCredit SpA Group). In addition to the UniCredit SpA

Group courses, the local compliance function disseminated in 2024 to a specific target audience: Local Benchmark Regulation Training 2024 (BMR).







The Bank has defined the areas most at risk in terms of corruption/bribery as defined in the internal regulation as follows:

 Relations with civil servants

 Business gifts and hospitality

 Third party involvement and donations/sponsorships/subscriptions

 Human resources activities

 Mergers and acquisitions

G1-2 - Management of relations with suppliers

The purpose of the internal procedure "Procedure regarding the circuit, approval, registration and payment/collection of invoices/memos for services

and goods", which regulates the procurement process, is to describe the rules regarding the flow of invoices issued by Romanian and foreign suppliers

of goods and services.

Budget officers must obtain all necessary information to verify the invoice against the contract/purchase requisition and the goods delivered and/or

service rendered. Based on the approval authority, the Budget Owner, the Cost Management Department representative and other responsible officers

approve the recording and payment of invoices. The usual payment term is 30 days, applicable to all vendors regardless of the service rendered.

As part of our supplier qualification process, suppliers are checked through a questionnaire as to whether they comply with the UN's 10 fundamental

principles, environmental legislation and that they are not involved in legal proceedings for environmental or labour law violations. Suppliers must meet

certain minimum sustainability requirements and are selected in accordance with the standards of the various International Labour Organisation

conventions relating to fundamental human rights, including child labour, freedom of association, working conditions and health and safety.

At the supplier level, the criteria are integrated into an overall supplier evaluation process, in accordance with the Supplier Qualification Process

Procedure.



for the financial period ended 31 December 2024

202

Convenience translation in English of the original Romanian version

UniCredit has a supplier qualification process that aims to check suppliers on compliance, sustainability and economic and financial aspects.

Qualification is done for centralised procurements related to "on purpose" categories (those managed centrally through procurement) and amounts

above EUR 5,000. Suppliers who successfully complete the qualification process can be used in procurement processes. As part of the review,

suppliers are asked to:

 confirm that they comply with the applicable legislation and respect International Labour Organisation standards in all their locations

 confirm that the company's management is not being prosecuted for alleged offences of corruption or tax fraud

 declare that they are not involved in any legal proceedings for infringement of environmental or labour law

 is committed to the 10 fundamental principles of the UN Global Compact.

 confirm that they have an environmental policy that is consistent with the fundamental principles of the group's environmental policy or in any

case commit themselves to comply with our environmental policy.

G1-3 - Prevention and detection of corruption and bribery

 The Bank adopts a zero-tolerance policy towards acts of corruption. The Bank's approach to combating corruption is set out in the Bank's

dedicated Anti-Corruption Policy, published on the Bank's website, together with the related Operational Rule. The Bank's policy is reviewed

periodically. Whenever the local operating rules are stricter than those in the Group Policy, the stricter local rules apply.

 The Anti-Bribery and Anti-Corruption Programme includes the following measures to prevent, identify, report, address and investigate concerns

related to possible cases of corruption and/or bribery:

 Implementation of detailed internal regulations on risk areas such as dealing with public officials, business gifts and hospitality, third party

employment, donations, sponsorships, human resources practices, and mergers and acquisitions activities.

 With regard to gifts and business hospitality, a system has been implemented whereby gifts and business hospitality above the defined thresholds

must be documented and approved by at least the line manager, ensuring that these benefits are double-checked.

 For third party involvement and provision of donations, sponsorships and membership fees, a tool has been introduced to support due diligence

on third parties and recipients of these contributions. This tool has enabled the creation of an anti-corruption register of third party suppliers used

by the Bank and the automation of the due diligence processes to combat corruption in the decentralised framework.

 Independent second-level controls are carried out by a dedicated compliance function.

 Compliance risk assessments and internal audit assessments in the areas of anti-bribery and anti-corruption are regularly reported to the internal

control committees.

 Mandatory web-based training is provided.

 Appoint an Anti-Corruption Officer who, among other responsibilities, advises on anti-corruption issues, implements policies, analyses individual

cases and, depending on the scope and size of the case, participates in investigations of potential corruption incidents. The Anti-Corruption

Officer is part of the independent compliance department, ensuring prompt investigation and assessment of cases, objectively and independently

of the management chain involved.

 Potential acts of corruption can also be reported in accordance with the Whistleblowing Policy.

The Bank publishes anti-bribery and anti-corruption regulations through its internal regulatory platform, which is accessible to all employees. An

excerpt of the Bank's Anti-Money Laundering and Anti-Corruption Policy is published on the Bank's official portal with the main guidelines.

The basis of the training is a web-based course covering ABC risk areas to be conducted by all employees. In addition, the Group offers classroom

workshops on selected topics, organises dedicated information sessions for selected units and/or directly contacts interested employees centrally to

provide more detailed information. 100% of risk functions are covered by training programmes.

All new members of the Supervisory Board and the Executive Board, as well as new members of management positions, receive induction training

covering the ABC.

Please see section G1-1 - Business Conduct Policies and Corporate Culture for more details.

Metrics and targets

The Group has zero tolerance for corruption and prohibits it in any form, direct or indirect. No specific targets are defined.

The Internal Control System ensures the monitoring of the effectiveness of ABC policies and actions.

G1-4 - Confirmed incidents of corruption or bribery

There were no incidents of corruption or bribery reported within the Group in 2024 and consequently no fines have been accounted for fines for

violation of anti-corruption and anti-bribery laws.

G1-6 -Payment practices



for the financial period ended 31 December 2024

203

Convenience translation in English of the original Romanian version

The most relevant category is administrative and logistical services, which comprises approximately 58% of the Group's annual administrative

expenses relevant for the analysis. These are followed by other expenses and information and communication technology expenses, which contribute

approximately 36% of the administrative expenses analysed. The remaining 6% of categories are not individually relevant.

It should be noted that, at the date of this document, there are no ongoing legal proceedings associated with late payments.

Please see section G1-2 - Supplier Relationship Management for more details.

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

UniCredit Bank S.A.

Consolidated and Separate

Financial Statements

for the financial year ended

31 December 2024

prepared in accordance with International

Financial Reporting Standards as endorsed

by European Union and with the provisions

of Order 27/2010 issued by

National Bank of Romania

Contents

 ................................................................................................................................................................................

Consolidated and separate statement of comprehensive income ...................................................................................................................... 1

Consolidated and separate statement of financial position ................................................................................................................................ 3

 ......................................................................................................... 6

Consolidated and separate statement of cash flows ......................................................................................................................................... 12

Notes to financial statements ........................................................................................................................................................................... 14

1. REPORTING ENTITY ............................................................................................................................................................................................ 14

2. BASIS OF PREPARATION .................................................................................................................................................................................... 16

3. MATERIAL ACCOUNTING POLICIES .................................................................................................................................................................... 18

4. RISK MANAGEMENT .......................................................................................................................................................................................... 56

5. USE OF ESTIMATES AND JUDGEMENTS ........................................................................................................................................................... 147

6. ACCOUNTING CLASSIFICATION AND FAIR VALUE OF FINANCIAL ASSETS/LIABILITIES ...................................................................................... 162

7. NET INTEREST INCOME .................................................................................................................................................................................... 173

8. NET FEES AND COMMISSIONS INCOME .......................................................................................................................................................... 174

9. NET INCOME FROM TRADING AND OTHER FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT AND LOSS .................................... 175

10. DIVIDENDS INCOME ........................................................................................................................................................................................ 176

11. PERSONNEL EXPENSES .................................................................................................................................................................................... 176

12. DEPRECIATION AND AMORTISATION .............................................................................................................................................................. 179

13. OTHER ADMINISTRATIVE COSTS ...................................................................................................................................................................... 179

14. OTHER OPERATING COSTS............................................................................................................................................................................... 180

15. NET IMPAIRMENT LOSSES ON FINANCIAL INSTRUMENTS ............................................................................................................................... 180

16. NET PROVISIONS LOSSES ................................................................................................................................................................................. 180

17. INCOME TAX .................................................................................................................................................................................................... 181

18. CASH AND CASH EQUIVALENTS ....................................................................................................................................................................... 182

19. FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS ................................................................................................... 182

20. LOANS AND ADVANCES TO BANKS .................................................................................................................................................................. 184

21. LOANS AND ADVANCES TO CUSTOMERS ......................................................................................................................................................... 184

22. NET FINANCIAL LEASE RECEIVABLES ................................................................................................................................................................ 187

23. FINANCIAL ASSETS HELD AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME................................................................................ 190

24. FINANCIAL ASSETS (DEBT INSTRUMENTS) AT AMORTIZED COST .................................................................................................................... 191

25. INVESTMENTS IN SUBSIDIARIES ...................................................................................................................................................................... 192

26. PROPERTY, PLANT AND EQUIPMENT ............................................................................................................................................................... 195

27. INTANGIBLE ASSETS ......................................................................................................................................................................................... 199

28. DEFERRED TAX ASSETS AND LIABILITIES .......................................................................................................................................................... 201

29. OTHER FINANCIAL AND NON-FINANCIAL ASSETS ............................................................................................................................................ 203

30. DERIVATIVES ASSETS/LIABILITIES DESIGNATED AS HEDGING INSTRUMENTS.................................................................................................. 205

31. DEPOSITS FROM BANKS .................................................................................................................................................................................. 207

32. LOANS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS .......................................................................................................................... 207

33. DEBTS ARISING FROM FINANCING ACTIVITIES ................................................................................................................................................ 207

34. DEPOSITS FROM CUSTOMERS ......................................................................................................................................................................... 208

35. DEBT SECURITIES ISSUED ................................................................................................................................................................................. 209

36. SUBORDINATED LIABILITIES ............................................................................................................................................................................. 209

37. PROVISIONS ..................................................................................................................................................................................................... 210

38. OTHER LIABILITIES ........................................................................................................................................................................................... 210

39. ISSUED CAPITAL ............................................................................................................................................................................................... 211

40. OTHER RESERVES ............................................................................................................................................................................................. 212

41. RELATED PARTY TRANSACTIONS ..................................................................................................................................................................... 213

42. COMMITMENTS AND CONTINGENCIES ........................................................................................................................................................... 215

43. OPERATING SEGMENTS ................................................................................................................................................................................... 217

44. IFRS 16 -  ............................................................................................................................................................. 224

45. SUBSEQUENT EVENTS ..................................................................................................................................................................................... 230







CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Interest income using effective interest rate		4,303,032	3,720,308	3,933,561	3,399,485
method
Other interest income		319,175	246,577	8	15
Interest expense		(2,237,543)	(1,859,985)	(1,863,639)	(1,584,043)
Net interest income	7	2,384,664	2,106,900	2,069,930	1,815,457
Fee and commission income		957,929	827,876	864,639	749,236
Fee and commission expense		(433,048)	(334,880)	(399,153)	(316,951)
Net fee and commission income	8	524,881	492,996	465,486	432,285
Net income from instruments at fair value through profit and loss	9	500,484	424,639	500,484	424,701
Net gain/(loss) from foreign exchange		(12,767)	85,044	(30,435)	65,217
Fair value adjustments in hedge accounting		(3,410)	(7,616)	(3,410)	(7,616)
Net gain/(loss) from derecognition of financial		23,088	93,229	3,958	83,005
assets measured at amortised cost
Net gain/(loss) from derecognition of financial		(788)	(11,979)	(788)	(11,979)
assets measured at FVTOCI
Dividend income	10	4,949	3,868	4,949	3,868
Other operating income		103,302	12,540	76,075	12,780
Operating income		3,524,403	3,199,621	3,086,249	2,817,718
Personnel expenses	11	(617,624)	(566,521)	(549,339)	(500,259)
Depreciation and impairment of tangible	12	(103,057)	(105,279)	(95,584)	(96,996)
assets
Amortization and impairment of intangible assets	12	(64,250)	(63,272)	(59,002)	(56,700)
Other administrative costs	13	(647,394)	(434,778)	(605,778)	(400,423)
Other operating costs	14	(45,056)	(32,262)	(25,683)	(21,549)
Operating expenses		(1,477,381)	(1,202,112)	(1,335,386)	(1,075,927)
Net impairment (losses) / reversals on financial instruments	15	(82,046)	(293,577)	1,767	(212,789)
Losses on modification of financial assets		3	65	3	65
Net operating income		1,964,979	1,703,997	1,752,633	1,529,067
Net impairment losses on non-financial assets		(1,112)	(449)	(1,112)	(449)
Net provision gains/ (losses)	16	(12,745)	(967)	(13,547)	(99)
Profit before tax		1,951,122	1,702,581	1,737,974	1,528,519
Income tax expense	17	(317,124)	(264,198)	(281,077)	(234,643)
Net profit for the reporting period		1,633,998	1,438,383	1,456,897	1,293,876
Attributable to:
Equity holders of the parent company		1,612,348	1,423,187	-	-
Non-controlling interests		21,650	15,196	-	-

CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Other comprehensive income, net of tax:
Items that will not be reclassified
subsequently to profit or loss:
Re-measurement of defined benefit liability		177	(1,520)	177	(1,520)
Revaluation of property, plant and equipment	28iii)	1,752	5,280	1,752	5,280
Movement in investment revaluation reserve	28i)	11,384	13,953	8,864	6,534
for equity instruments at FVTOCI
Income tax relating to items that will not be reclassified subsequently to profit or loss		(1,806)	(1,947)	(1,403)	(760)
Total items that will not be reclassified		11,507	15,766	9,390	9,534
subsequently to profit or loss
Items that may be reclassified subsequently
to profit or loss:
Movement in reserve for debt instruments at FVTOCI:
Gains/(losses) arising during the period	28i)	(17,639)	87,284	(17,639)	87,284
Reclassification of (gains)/losses included	28i)	788	11,979	788	11,979
in profit or loss
Net changes in cash flow hedging reserve:
Gains/(losses) arising during the period	28ii)	228	1,119	228	1,119
Reclassification of (gains)/losses included	28ii)	232	66	232	66
in profit or loss
Income tax relating to items that may be reclassified subsequently to profit or loss		2,644	(15,933)	2,644	(15,933)
Total items that may be reclassified		(13,747)	84,515	(13,747)	84,515
subsequently to profit or loss
Other comprehensive income, net of tax		(2, 240)	100,281	(4,357)	94,049
Total comprehensive income		1,631,758	1,538,664	1,452,540	1,387,925
Attributable to:
Shareholders of parent  company		1,610,108	1,523,468	-	-
Non-controlling interests		21,650	15,196	-

The consolidated and separate financial statements were approved by the Management Board on February 19,

2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mrs. Dimitar Todorov

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Assets:
Cash and cash equivalents	18	19,510,086	20,106,053	19,509,849	20,105,745
Financial assets at fair value through profit or loss	19	126,219	97,712	126,219	97,712
Derivatives assets designated as hedging	30	165,600	242,560	165,600	242,560
instruments
Loans and advances to banks at amortized cost	20	185,383	142,096	185,383	142,096
Loans and advances to customers at amortized	21	41,495,113	36,196,421	38,362,383	33,892,452
cost
Net lease receivables	22	5,089,369	4,305,696	2,243	7,300
Debt instruments at amortized cost	24	10,597,046	9,647,214	10,597,046	9,647,214
Other financial assets at amortized cost	29	558,523	558,257	487,910	497,953
Financial assets at fair value through other comprehensive income	23	2,073,384	2,026,525	2,061,099	2,016,760
Investment in subsidiaries	25	-	-	143,116	143,116
Property, plant and equipment	26	156,574	171,348	155,316	169,000
Right of use assets	44	208,374	254,151	201,750	242,889
Intangible assets	27	495,127	424,876	472,707	406,108
Current tax assets		6,754	22,059	-	-
Deferred tax assets	28	50,866	57,961	41,810	49,686
Other assets	29	311,932	419,432	63,600	51,504
Total assets		81,030,350	74,672,361	72,576,031	67,712,095
Liabilities:
Financial liabilities at fair value through profit	19	50,884	120,253	50,884	120,253
or loss
Derivatives liabilities designated as hedging	30	158,242	202,404	158,242	202,404
instruments
Deposits from banks	31	1,782,107	1,240,982	1,782,107	1,240,982
Loans from banks	32	8,534,591	6,406,673	732,566	584,966
Deposits from customers	34	52,106,032	50,955,312	52,740,216	51,002,566
Debt securities issued	35	5,760,287	4,002,296	5,760,287	4,002,296
Other financial liabilities at amortized cost	38	1,251,140	1,185,038	1,137,670	1,149,294
Subordinated liabilities	36	841,862	952,073	841,862	842,632
Lease liabilities	44	205,074	255,803	200,208	250,414
Current tax liabilities		51,911	18,736	50,994	18,546
Provisions	37	190,382	206,162	212,720	226,903
Other non-financial liabilities	38	341,203	346,087	238,840	207,970
Total liabilities		71,273,715	65,891,819	63,906,596	59,849,226

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Equity
Share capital	39	1,177,748	1,177,748	1,177,748	1,177,748
Share premium account	39	621,680	621,680	621,680	621,680
Cash flow hedging reserve		(6,119)	(6,506)	(6,119)	(6,506)
Reserve on financial assets at fair value through other comprehensive income		(17,745)	(13,185)	(26,093)	(19,416)
Revaluation reserve on property, plant and equipment		24,294	22,500	24,294	22,500
Other reserves	40	473,230	432,942	473,230	432,942
Retained earnings		7,291,155	6,369,744	6,404,695	5,633,921
Total equity for parent company		9,564,243	8,604,923	8,669,435	7,862,869
Non-controlling interest		192,392	175,619	-	-
Total equity		9,756,635	8,780,542	8,669,435	7,862,869
Total liabilities and equity		81,030,350	74,672,361	72,576,031	67,712,095

The consolidated and separate financial statements were approved by the Management Board on February 19,

2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

31.12.2024		Reserve on	Group	Revaluation
		financial assets	Cash	of					Non-
in RON thousands	Share	at fair value	flow	property,	Other	Share	Retained	Total	Controlling	Total
	capital	through other	hedging	plant and	reserves	premium	earnings		Interest
		comprehensive	reserve	equipment
		income
Balance at 31 December 2023	1,177,748	(13,185)	(6,506)	22,500	432,942	621,680	6,369,744	8,604,923	175,619	8,780,542
Comprehensive income for the year
Net profit for the year	-	-	-	-	-	-	1,612,348	1,612,348	21,650	1,633,998
Other comprehensive income net of tax
Revaluation of property, plant and equipment, net of tax	-	-	-	1,794	-	-	-	1,794	-	1,794
Net change in fair value of financial assets	-	(4,560)	-	-	-	-	-	(4,560)	-	(4,560)
through other comprehensive income, net of tax
Net change in cash flow hedging reserve, net of tax	-	-	387	-	-	-	-	387	-	387
Actuarial gains/(losses) on defined benefit	-	-	-	-	139	-	-	139	-	139
liability/pension plans
Total other comprehensive income	-	(4,560)	387	1,794	139	-	-	(2,240)	-	(2,240)
Total comprehensive income for the year	-	(4,560)	387	1,794	139	-	1,612,348	1,610,108	21,650	1,631,758
Transactions with shareholders
Transfer to other reserves	-	-	-	-	40,149	-	(40,149)	-	-	-
Dividends distributed	-	-	-	-	-	-	(646,938)	(646,938)	-	(646,938)
Other movements	-	-	-	-	-	-	(3,850)	(3,850)	(4,877)	(8,727)
Balance at 31 December 2024	1,177,748	(17,745)	(6,119)	24,294	473,230	621,680	7,291,155	9,564,243	192,392	9,756,635

The consolidated and separate financial statements were approved by the Management Board on February 19, 2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2023

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

31.12.2023		Reserve on	Group
		financial assets	Cash	Revaluation	Other				Non-
in RON thousands	Share	at fair value	flow	of property,	reserve	Share	Retained	Total	Controlling	Total
	capital	through other	hedging	plant and	s	premium	earnings		Interest
		comprehensive	reserve	equipment
		income
Balance at 31 December 2022	1,177,748	(108,424)	(7,501)	17,177	399,973	621,680	4,981,500	7,082,153	160,422	7,242,575
Comprehensive income for the year
Net profit for the year	-	-	-	-	-	-	1,423,187	1,423,187	15,196	1,438,383
Other comprehensive income net of tax
Revaluation of property, plant and equipment, net of tax	-	-	-	5,323	-	-	-	5,323	-	5,323
Net change in fair value of financial assets
through other comprehensive income, net of tax	-	95,239	-	-	-	-	-	95,239	1	95,240
Net change in cash flow hedging reserve, net	-	-	995	-	-	-	-	995	-	995
of tax
Actuarial gains/(losses) on defined benefit	-	-	-	-	(1,277)	-	-	(1,277)	-	(1,277)
liability/pension plans
Total other comprehensive income	-	95,239	995	5,323	(1,277)	-	-	100,280	1	100,281
Total comprehensive income for the year	-	95,239	995	5,323	(1,277)	-	1,423,187	1,523,467	15,197	1,538,664
Transactions with shareholders
Transfer to other reserves	-	-	-	-	34,246	-	(34,246)	-	-	-
Other movements	-	-	-	-	-	-	(697)	(697)	-	(697)
Balance at 31 December 2023	1,177,748	(13,185)	(6,506)	22,500	432,942	621,680	6,369,744	8,604,923	175,619	8,780,542

The consolidated and separate financial statements were approved by the Management Board on February 19, 2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

31.12.2024

Bank

In RON thousands

capital

Reserve on

financial assets

at fair value

through other

comprehensive

income

Cash flow

hedging

reserve

Revaluation

of property,

plant and

equipment

Other

reserves

premium

Retained

earnings

Total

Balance at 31 December 2023

1,177,748

(19,416)

(6,506)

22,500

432,942

621,680

5,633,921

7,862,869

Comprehensive income for the year

Net profit for the year

1,456,897

Other comprehensive income net of tax

Revaluation of property, plant and equipment, net of

tax

1,794

Net change in fair value of financial assets through

other comprehensive income, net of tax

(6,677)

Net change in cash flow hedging reserve, net of tax

387

Actuarial gains/(losses) on defined benefit

liability/pension plans

139

Total other comprehensive income

(6,677)

387

1,794

139

(4,357)

Total comprehensive income for the year

(6,677)

387

1,794

139

1,456,897

1,452,540

Transactions with shareholders

Transfer to other reserves*

40,149

(40,149)

Dividends distributed*

(646,938)

Other movements

964

Balance at 31 December 2024

1,177,748

(26,093)

(6,119)

24,294

473,230

621,680

6,404,695

8,669,435

* According to the decision of the General Meeting of Shareholders of 11 April 2024, it was decided to allocate a part of the Bank's net profit for 2023 (1,293,876 RON thousands) in the form of dividends

amounting to 646,938 RON thousands, to the reinvested profit reserve (exempt from the payment of the profit tax according to art. 22 of Law 227/2015) of an amount of 40,149 RON thousands and to reinvest

of the net profit remained undistributed amounting to 606,789 RON thousands.

The consolidated and separate financial statements were approved by the Management Board on February 19, 2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2023

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

31.12.2023

Bank

In RON thousands

capital

Reserve on

financial assets

at fair value

through other

comprehensive

income

Cash flow

hedging

reserve

Revaluation

of property,

plant and

equipment

Other

reserves

premium

Retained

earnings

Total

Balance at 31 December 2022

1,177,748

(108,424)

(7,501)

17,177

399,973

621,680

4,374,995

6,475,648

Comprehensive income for the year

Net profit for the year

1,293,876

Other comprehensive income net of tax

Revaluation of property, plant and equipment, net of

tax

5,323

Net change in fair value of financial assets through

other comprehensive income, net of tax

89,008

Net change in cash flow hedging reserve, net of tax

995

Actuarial gains/(losses) on defined benefit

liability/pension plans

(1,277)

Total other comprehensive income

89,008

995

5,323

(1,277)

94,049

Total comprehensive income for the year

89,008

995

5,323

(1,277)

1,293,876

1,387,925

Transactions with shareholders

Transfer to other reserves*

34,246

(34,246)

Other movements

(704)

Balance at 31 December 2023

1,177,748

(19,416)

(6,506)

22,500

432,942

621,680

5,633,921

7,862,869

* According to the decision of the General Meeting of Shareholders of 27 March 2023, it was decided to allocate a part of the Bank's net profit for 2022 (879,240 RON thousands) to the reinvested profit reserve

(exempt from the payment of the profit tax according to art. 22 of Law 227/2015) of an amount of 34,246 RON thousands and to reinvest of the net profit remained undistributed amounting to 844,994 RON

thousands.

The consolidated and separate financial statements were approved by the Management Board on February 19, 2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 December 2023

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Profit for the reporting period before tax	17	1,951,122	1,702,581	1,737,974	1,528,519
Adjustments for non-cash items:
Depreciation and amortization of property, plant and equipment and of intangible assets	12	167,307	168,551	154,586	153,696
Net impairment losses on financial		218,523	407,734	136,006	301,957
instruments
Fair value (gain)/loss on derivatives and other financial assets held for trading		(67,951)	40,765	(67,951)	40,765
Other items for which the cash effects are investing or financing		(7,341)	45,948	(6,115)	16,719
Accrued interest and unwinding effect		(94,316)	100,116	(107,409)	78,224
Impairment of assets and provisions		42,453	(17,053)	2,298	(18,716)
FX impact		50,413	(46,283)	45,101	(56,691)
Other noncash items		20,077	45,961	29,715	11,861
Operating profit before changes in operating		2,280,287	2,448,320	1,924,205	2,056,334
assets and liabilities
Change in operating assets:
Decrease/(Increase) in financial assets at fair value through profit and loss		(20,749)	52,115	(20,749)	52,115
Acquisition of debt instruments at amortized		(882,966)	(740,261)	(882,966)	(740,261)
cost
Decrease/(Increase) in loans and advances to banks		(43,744)	255,982	(43,744)	255,982
Decrease/(Increase) in loans and advances to customers		(5,529,301)	(3,689,868)	(4,576,152)	(3,073,840)
Decrease/(Increase) in lease investments		(837,875)	(548,075)	(2,243)	(7,260)
Decrease/(Increase) in other assets		166,192	(474,512)	2,733	(250,562)
Change in operating liabilities:
Increase/(Decrease) in deposits from banks		543,019	187,563	543,019	187,563
Increase/(Decrease) in deposits from customers		1,367,911	5,299,988	1,636,855	5,467,316
Increase/(Decrease) in other liabilities		19,946	(81,045)	(5,290)	(88,664)
Income tax paid		(259,325)	(256,056)	(239,514)	(233,293)
Net cash from/ (used in) operating activities		(3,196,605)	2,454,151	(1,663,846)	3,625,430
Investing activities
Proceeds on disposal of financial assets at fair value through other comprehensive income		530,322	359,980	530,322	359,980
Acquisition of financial assets at fair value through other comprehensive income		(573,453)	(360,786)	(573,453)	(360,786)
Proceeds on disposal of property, plant and equipment		-	1,243	-	1,243
Acquisition of property, plant and equipment		(146,095)	(139,653)	(136,124)	(132,617)
and intangible assets
Dividends received		5,276	4,305	5,276	4,305
Net cash used in investing activities		(183,9 50)	(134,9 11)	(173,979)	(127,875)

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 December 2024

The accompanying notes form an integral part of these consolidated and separate financial statements.

Convenience translation in English of the original Romanian version.

		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Financing activities
Dividends paid		(641,610)	(704)	(641,610)	(704)
Proceeds from bonds issued		1,944,054	480,000	1,944,054	480,000
Payments of bonds issued		(183,500)	-	(183,500)	-
Repayments of loans from banks		(3,322,287)	(3,349,718)	(205,845)	(264,648)
Drawdowns from loans from banks		5,119,179	4,265,962	348,121	-
Repayments of subordinated liabilities		(109,430)	-	-	-
Repayment of the lease liabilities	44	(80,708)	(82,492)	(78,181)	(79,988)
Net cash from/ (used in) financing activities		2,725,698	1,313,048	1,183,039	134,660
Net increase/(decrease) in cash and cash		(654,8 57)	3,632,288	(654,786)	3,632,215
equivalents
Cash and cash equivalents at 1 January - gross value		20,112,188	16,459,052	20,111,879	16,458,822
Effect of foreign exchange rate changes		58,104	20,848	58,104	20,842
Cash and cash equivalents at 31 December - gross value	18	19,515,435	20,112,188	19,515,197	20,111,879
Impairment allowance		(5,349)	(6,135)	(5,348)	(6,134)
Cash and cash equivalents at 31 December - net value	18	19,510,086	20,106,053	19,509,849	20,105,745
Cash flow from operating activities include:		Group		Bank
In RON thousands	Note	31.12.2024	31.12.2023	31.12.2024	31.12.2023
Interest received		4,459,984	3,809,279	3,805,792	3,300,754
Interest paid		(1,960,124)	(1,523,852)	(1,640,035)	(1,276,291)

The consolidated and separate financial statements were approved by the Management Board on February 19,

2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

1. REPORTING ENTITY

The UniCredit Group (the “Group”) consists of UniCredit Bank S.A. (the “Bank”) as mother company and its

subsidiaries, UniCredit Consumer Financing IFN S.A. (“UCFIN”), UniCredit Leasing Corporation IFN S.A (“UCLC”)

and UniCredit Insurance Broker S.R.L. (“UCIB”). These consolidated financial statements comprise the Bank and

its subsidiaries.

UniCredit Bank S.A. (the “Bank”), having its current registered office at 1F, Expozitiei Boulevard, District 1,

Bucharest, Romania was established as a Romanian commercial bank on 1 June 2007 upon the merger by

acquisition of the former UniCredit Romania S.A. (the absorbed bank) by Banca Comerciala HVB Tiriac S.A. (the

absorbing bank) and is licensed by the National Bank of Romania to conduct banking activities.

The Bank provides retail and commercial banking services in Romanian Lei (“RON”) and foreign currency for

private individuals and companies. These include: accounts opening, domestic and international payments,

foreign exchange transactions, working capital finance, medium and long term credit facilities, retail loans,

bank guarantees, letter of credits and documentary collections.

UniCredit Bank S.A. is directly controlled by UniCredit SpA (Italy), with registered office in Milano, Piazza Gae

Aulenti, 3.

The Bank is exercising direct and indirect control over the following subsidiaries:

• UniCredit Consumer Financing IFN S.A. („UCFIN”), having its current registered office at 1F, Expozitiei

Boulevard, 6th floor, District 1, Bucharest, Romania, provides consumer finance loans to individual clients.

The Bank has a shareholding of 50.10% in UCFIN since January 2013.

• UniCredit Leasing Corporation IFN S.A. ("UCLC"), having its headquarters in 1F, Expozitiei Boulevard, 1

, 7

and 8

floor, District 1, Bucharest, Romania, provides financial leasing services to corporate clients and

individuals. UCLC, the former associate, has become the Bank's subsidiary since April 2014 when the Bank

gained indirect control of 99.95% (direct control: 99.90%). The Bank's indirect controlling interest as of 31

December 2024 is 99.98% (direct control: 99.96%) as a result of the merger by absorption of UniCredit

Leasing Romania SA ("UCLRO") by UCLC finalized in June 2015, the date at which UCLRO was absorbed by

UCLC.

• UniCredit Insurance Broker S.R.L. (“UCIB”), having its current registered office at 1F, Expozitiei Boulevard,

floor, District 1, Bucharest, Romania, intermediates insurance policies related to leasing activities to

legal entities and individuals, and became a subsidiary of the Bank beginning with 31 December 2020. The

Bank has an indirect controlling interest of 99.98% through UCLC that owns 100% UCIB.

As at 31 December 2024 the Group carried out its activity in Romania through its Head Office located in

Bucharest and through its network, having 169 branches/Bank 166 branches (31 December 2023: Group 168

branches/Bank 166 branches) in Bucharest and in the country.

UniCredit Bank S.A. is directly consolidated by UniCredit SpA (Italy) which is the ultimate parent of the Group,

with registered office in Milano, Piazza Gae Aulenti, 3, and a copy of Financial Statements of the UniCredit

S.p.A. can be found at following address: https://www.unicreditgroup.eu/en/investors/financial-

reporting/financial-reports.html.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

2. BASIS OF PREPARATION

a. Statement of compliance

Th separate financial statements of the Bank and the consolidated financial statements of the UniCredit Group

have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as endorsed by

the European Union and with provisions of Order 27/2010 issued by National Bank of Romania for approval of

accounting regulations in accordance with International Financial Reporting Standards as endorsed by

European Union, with subsequent amendments.

The separate financial statements of the Bank and the consolidated financial statements of the UniCredit Group

are prepared on a going concern basis, as management is satisfied that the Group has adequate resources to

continue as a going concern for the foreseeable future. In making this assessment, management has considered

a wide range of information including projections of profitability, regulatory capital requirements and funding

needs. The assessment also includes consideration of reasonably possible downside economic scenarios and

their potential impacts on the profitability, capital and liquidity of the Group.

b. Basis of measurement

The consolidated and separate financial statements have been prepared as follows:

Items

Measurement basis

Financial instruments at fair value through profit or loss

Fair value

Loans and advances to customers

Amortized cost

Financial assets (debt instruments) at amortized cost

Amortized cost

Financial assets at fair value through other comprehensive income

Fair value

Lands and buildings

Revaluated amount

Other fixed assets and intangible assets

Cost

Derivatives designated as hedging instruments

Fair value

Financial assets and financial liabilities designated as hedged items in

qualifying fair value hedging relationships

Amortized cost adjusted for

hedging gain or loss

c. Functional and presentation currency

The consolidated and separate financial statements are presented in Romanian Lei (“RON”), which is the

functional and presentation currency. All values are rounded to the nearest RON thousands, except when

otherwise indicated. The tables in these consolidated and separate financial statements may contain rounding

differences.

d. Use of estimates and judgements

The preparation of the consolidated and separate financial statements requires management to make

judgements, estimates and assumptions that affect the application of policies and reported amounts of assets

and liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognized in the period in which the estimate is revised if the revision affects only that period or in the

period of the revision and future periods if the revision affects both current and future periods.

In particular, information about significant areas of estimation uncertainty and critical judgments made by

management in applying accounting policies that have the most significant effect on the amount recognized in

the consolidated and separate financial statements are described in notes 4 and 5.

e. Foreign currency

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the

transaction.

Monetary assets and liabilities denominated in foreign currencies at the end of reporting period are translated

to RON at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are

recognized in the income statement.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are

translated using the exchange rate at the date of the transaction.

Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are

translated to RON at foreign exchange rates ruling at the dates when the fair value was determined.

2. BASIS OF PREPARATION (continued)

e) Foreign currency (continued)

The exchange rates of major foreign currencies were:

Currencies

31 December 2024

31 December 2023

Variation

Euro (EUR)

1: RON 4.9741

1: RON 4.9746

-0.01%

Dollar USA (USD)

1: RON 4.7768

1: RON 4.4958

6.25%

f. Accounting for the effect of hyperinflation

Romania has previously experienced relatively high levels of inflation and was considered to be

hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”). IAS 29

requires that the financial statements prepared in the currency of a hyperinflationary economy to be restated

in terms of the measuring unit current at the end of reporting period (i.e. non-monetary items are restated

using a general price index from the date of acquisition or contribution). As the characteristics of the economic

environment of Romania indicate that hyperinflation has ceased, effective from 1 January 2004, the Group no

longer applies the provisions of IAS 29.

Accordingly, the amounts expressed in the measuring unit current at 31 December 2003 are treated as the

basis for the carrying amounts in these consolidated and separate financial statements.

g. Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an investee if and only if the investor has

all of the following elements:

• power over the investee, the investor has existing rights that give it the ability to direct the relevant

activities (the activities that significantly affect the investee's returns);

• exposure, or rights, to variable returns from its involvement with the investee;

• the ability to use its power over the investee to affect the amount of the investor's returns.

In assessing control, potential voting rights that presently are exercisable or convertible are taken into account.

The financial statements of subsidiaries are included in the consolidated and separate financial statements

from the date that control commences until the date that control ceases.

As of 31 December 2024 and 31 December 2023, the Group consists of the Bank and its subsidiaries UCFIN,

UCLC and UCIB.

Non-controlling interest are measured initially at their proportionate share of the acquiree’s identifiable net

assets at the date of acquisition.

Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity

transactions.

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and

any related non-controlling interest and other components of equity. Any resulting gain or loss is recognised in

profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.

Transactions eliminated on consolidation

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Intra-group balances and transactions, and any unrealized gains arising from intra-group transactions have

been eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions

with associates are eliminated to the extent of the Group’s interest in the enterprise. Unrealized gains arising

from transactions with associates are eliminated against the investment in the associate. Unrealized losses are

eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

3. MATERIAL ACCOUNTING POLICIES

The accounting policies described below have been applied consistently over the periods presented in these

consolidated and separate financial statements and have been consistently applied within the Group.

a. Financial instruments – initial recognition and initial measurement

Purchases or sales of financial assets that require delivery of assets within the time frame generally established

by regulation or convention in the marketplace are recognized on the settlement date, i.e. the date on which

the agreement is settled by delivery of assets that are subject of the agreement.

Any change in the fair value of the asset to be received during the period between the trade date and the

settlement date is not recognized for assets carried at cost or amortized cost (other than impairment losses).

For assets carried at fair value, however, the change in fair value shall be recognized in profit or loss or in other

comprehensive income, as appropriate.

Derivatives are recognized on trade date basis, i.e. the date that the Group commits to purchase or sell the

asset.

A financial asset or a financial liability is measured initially at fair value plus transaction costs that are directly

attributable to its acquisition/issue (for an item which is not at fair value through profit or loss).

b. Financial instruments - Classification

Business model analysis was performed by mapping the areas of activity of the Group and the allocation of

each particular business model. In this respect, the business fields that make up the Group's portfolio have

been attributed business models "held to collect" or "held to collect and sell", depending on the ownership

intentions and way of managing the portfolios.

The business areas that compose the Group's trading portfolio have been assigned an "other" business model

in order to reflect trading intentions.

For the purposes of classifying financial instruments in the categories envisaged by IFRS9, the business model

analysis is complemented by an analysis of contractual flows ("SPPI Test").

In this regard, the Group has developed systems and processes to analyse the portfolio of debt securities and

loans in place and assess whether the characteristics of contractual cash flows allow for measurement at

amortized cost (“held-to-collect” portfolio) or at fair value with effect on comprehensive income (“held-to-

collect and sell” portfolio). The analysis in question is carried out both by contract and by defining specific

clusters based on the characteristics of the transactions and using a specific internally developed tool ("SPPI

Tool") to analyse the contract features with respect to IFRS 9 requirements.

In application of the rules, the Group's financial assets and liabilities have been classified as follows:

Financial assets

At inception date, a financial asset is classified in one of the following categories:

• at fair value through profit or loss - held for trading (see note 3.b1.i);

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• designated at fair value through profit or loss (see note 3.b1.iii);

• at fair value through Other Comprehensive Income (see note 3.b3);

• at amortised cost (see note 3.b2).

Financial liabilities

At inception date, a financial liability is classified in one of the following categories:

• measured at amortised cost (see note 3.b2);

• at fair value through profit or loss - held for trading (see note 3.b1.ii);

• designated at fair value through profit and loss (see note 3.b1.iii).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

b. Financial instruments - Classification (continued)

b1. Financial assets and financial liabilities at fair value through profit and loss account

(i) Financial assets held for trading

A financial asset is classified as held for trading if it is:

• acquired or incurred principally for the purpose of selling or repurchasing it in the short term;

• part of a portfolio of identified financial instruments that are managed together and for which there is

evidence of a recent actual pattern of short-term profit-taking;

• a derivative contract not designated under hedge accounting, including derivatives with positive fair value

embedded in financial liabilities other than those valued at fair value with recognition of income effects

through profit or loss.

As other financial instruments, on initial recognition, at settlement date, a held-for-trading financial asset is

measured at its fair value, usually equal to the amount paid, excluding transaction costs and revenue, which

are recognized in profit and loss although directly attributable to the financial assets. Trading book derivatives

are recognized at trade date. After initial recognition these financial assets are measured at their fair value

through profit or loss.

(i) Financial assets held for trading (continued)

A derivative is a financial instrument or other contract that has all three of the following characteristics:

• its value changes in response to the change in a specified interest rate, financial instrument price,

commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other

variable (usually called the ‘underlying’) provided that in case of non-financial variable, this is not specific of

one of the parties to the contract;

• it requires no initial net investment or an initial net investment that is smaller than would be required for

other types of contracts that would be expected to have a similar response to changes in market factors;

• it is settled at a future date.

An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative

host contract, with the effect that some of the cash flows of the combined instrument vary in a way similar to

a stand-alone derivative. When a hybrid contract contains a host that is a financial liability or a contract that is

not in the scope of IFRS 9, the hybrid contract is assessed to determine whether the embedded derivative(s) is

(are) required to be separated from the host contract (bifurcated) in accordance with IFRS 9.

An embedded derivative is separated from financial liabilities other than those measured at fair value through

profit or loss and from non-financial instruments, and is recognized as a derivative, if:

• the economic characteristics and risks of the embedded derivative are not closely related to those of the

host contract;

• a separate instrument with the same terms as the embedded derivative would meet the definition of a

derivative; and

• the hybrid (combined) instrument is not measured entirely at fair value through profit or loss.

When an embedded derivative is separated, the host contract is accounted for according to its accounting

classification.

(ii) Financial liabilities held for trading

Financial liabilities held for trading include:

• derivatives that are not designated as hedging instruments;

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• obligations to deliver financial assets borrowed by a short seller (i.e. an entity that sells financial assets it

does not yet own);

• financial liabilities issued with an intention to repurchase them in the short term;

• financial liabilities that are part of a portfolio of financial instruments considered as a unit and for which

there is evidence of a recent pattern of trading.

3. MATERIAL ACCOUNTING POLICIES (continued)

b. Financial instruments - Classification (continued)

b1. Financial assets and financial liabilities at fair value through profit and loss account (continued)

(ii) Financial liabilities held for trading (continued)

Financial liabilities held for trading, including derivatives, are measured at fair value on initial recognition and

during the life of the transaction.

The Group has trading instruments at 31 December 2024 and 31 December 2023: held for trading financial

instruments, derivative assets and derivative liabilities incurred in transactions with customers and

economically covered with back - to - back transactions within UniCredit SpA Group.

(iii) Financial assets and financial liabilities designated at fair value through profit and loss account

A non-derivative financial asset can be designated at fair value through profit and loss account if the

designation avoids accounting mismatches that arise from measuring assets and associated liabilities according

to different measurement criteria.

Financial liabilities, like financial assets, may also be designated, according to IFRS 9, on initial recognition as

measured at fair value through profit and loss account, provided that:

• this designation eliminates or considerably reduces an accounting or measurement inconsistency that

would arise from the application of different methods of measurement to assets and liabilities and related

gains or losses; or

• a group of financial assets, financial liabilities or both are managed and measured at fair value under risk

management or investment strategy which is internally documented with the entity’s key management

personnel.

This category may also include financial liabilities represented by hybrid (combined) instruments containing

embedded derivatives that otherwise should have been separated from the host contract. Financial assets and

liabilities presented in this category are measured at fair value at initial recognition and for the life of the

transaction.

The Group designates financial assets and liabilities at fair value through profit and loss when either:

• the assets and liabilities are managed, evaluated and reported internally on a fair value basis;

• the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise; or

• the asset or liability contains an embedded derivative that significantly modifies the cash flows that would

otherwise be required under the contract.

As of 31 December 2024 and 31 December 2023, the Group did not designate any assets or liabilities at fair

value through profit and loss.

(iv) Other financial assets mandatorily at fair value

A financial asset is classified as financial asset mandatorily at fair value if it does not meet the conditions, in

terms of business model or cash flow characteristics, for being measured at amortized cost or at fair value

through other comprehensive income.

The following type of assets can be classified in this portfolio:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• debt instruments, securities and loans for which the business model is neither held to collect nor held to

collect and sell but which are not part of the trading portfolio;

• debt instruments, securities and loans with cash flows that are not solely payment of principal and interest;

• units in investment funds;

• equity instruments for which the Group does not apply the option granted by the standard of valuing these

instruments at fair value through other comprehensive income.

3. MATERIAL ACCOUNTING POLICIES (continued)

b. Financial instruments - Classification (continued)

b1. Financial assets and financial liabilities at fair value through profit and loss account (continued)

(iv) Other financial assets mandatorily at fair value (continued)

The Group classified as financial assets mandatorily at fair value through profit and loss account (FVTPL) the

portfolio of VISA Inc Series C preferred shares. The fair value is estimated using the methodology provided by

the parent company UniCredit SpA and is based on the closing price of VISA Inc. common shares quoted on

New York Stock Exchange. VISA Inc shares class C are classified as “Debt Instruments – Financial assets at fair

value through profit and loss” at the date of the conversion. Please see note 19 for presentation and additional

details.

b2. Financial assets and financial liabilities at amortized cost

A financial asset is classified within the financial assets measured at amortized cost if:

• its business model is held to collect;and

• its cash flows are solely the payment of principal and interest.

Financial assets at amortised cost include loans and receivables with customers and banks, lease receivables

and other financial assets such as sundry debtors, amounts in transit from customers and amounts in transit

from banks.

On initial recognition, at settlement date, financial assets at amortized cost are measured at fair value, which

is usually equal to the consideration paid, plus transaction costs and income directly attributable to the

instrument.

After initial recognition at fair value, these assets are measured at amortized cost which requires the

recognition of interest on an accrual basis by using the effective interest rate method over the duration of the

loan.

The Group enters into reverse repo transactions, which represent origination of loans collateralised with

securities. These transactions, which often occur between two banks, are essentially collateralized loans. The

difference between the original purchase price and the buyback price of the respective securities, along with

the timing of the transaction (often overnight), equates to interest paid by the seller to the buyer.

The consideration paid in a reverse repo transaction is accounted for as a loan, which is subsequently measured

at amortised cost using the effective interest rate. The underlying asset is not recognised in the Group's

financial statements.

Financial liabilities measured at amortized cost comprise financial instruments (other than liabilities held for

trading or those designated at fair value) representing the various forms of third-party funding and other

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

financial liabilities i.e. amounts in transit from customers and from other banks and amounts to be paid to

suppliers.

These financial liabilities are recognized at settlement date initially at fair value, which is normally the

consideration received less transaction costs directly attributable to the financial liability. Subsequently these

instruments are measured at amortized cost using the effective interest method.

The difference between the total amount received and the initial fair value of the embedded derivative is

attributed to the host contract.

Securities in issue are recognized net of repurchased amounts; the difference between the carrying value of

the liability and the amount paid to buy it in is recognized into profit and loss. Subsequent disposal by the issuer

is considered as a new issue which doesn’t produce gains or losses.

The Bank holds business model of “held to collect” (HTC), being dedicated for fixed income portfolio. The

holdings pertain to the Replicating Portfolio, as the respective financial assets are associated to a particular

product (Free funds and Non-maturing deposits) and the intention of the Bank is to hold those financial assets

until maturity, designating them for the purpose of stabilizing the net interest income of the Bank in a multiyear

horizon.

The accounting for the HTC fixed income portfolio is done in accordance with IFRS 9, being measured at

amortized cost.

3. MATERIAL ACCOUNTING POLICIES (continued)

b. Financial instruments - Classification (continued)

b2. Financial assets and financial liabilities at amortized cost (continued)

With reference to sales, these are usually not compatible with a business model “held to collect” because it

would put in doubt the actual intention of the entity to held the instruments to collect interests and principal

cash flows. As a result, there is a presumption that debt instruments classified as HTC are held until maturity

or repayment. However, the following kind of sales do not jeopardize the business model held to collect:

• sales that do not determine the accounting derecognition of the financial assets such as in repo contracts;

• sales that occur as a result of a deterioration in credit standing of the financial assets;

• sales that are not significant in value (regardless of the frequency);

• sales that are made close to the maturity of the respective T-Bill;

• sales that are infrequent.

b3. Financial assets at fair value through comprehensive income

A debt instrument is classified as at fair value through comprehensive income if:

• its business model is held to collect and sell;

• its cash flows are solely the payment of principal and interest.

This category also includes equity instruments for which the Group applies the option granted by the standard

of valuing the instruments at fair value through other comprehensive income.

On initial recognition, at settlement date, a financial asset is measured at fair value, which is usually equal to

the amount paid, plus transaction costs and revenues directly attributable to the instrument.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

After initial recognition, the interests accrued on interest-bearing instruments are recorded in the income

statement at amortized cost using effective interest rate method.

The gains and losses arising from changes in fair value are recognized in the Statement of comprehensive

income and shown under Revaluation reserves in shareholders' equity.

Impairment losses are recorded in the income statement with counterparty in the statement of comprehensive

income and shown under Revaluation reserves in shareholders' equity.

In the event of disposal, the accumulated profits and losses are recorded in the income statement in respect

of debt instruments.

With respect to equity instruments, earnings and losses arising from changes in fair value are recognized in the

statement of comprehensive income and are presented in the revaluation reserves in equity. In the case of

disposal, the accumulated profits and losses are recorded in other reserves in shareholders’ equity.

In accordance with the provisions of IFRS9, no impairment losses on equity instruments are recognized in the

income statement.

c. Financial assets and liabilities – modification and de-recognition

Modifications of financial instruments which cause a change in contractual conditions are accounted for

depending on the significance of the contractual change itself.

When renegotiations are not considered significant the gross exposure is re-determined through the

calculation of the present value of cash flows following the renegotiation at the original effective interest rate.

The difference between the gross exposure before and after renegotiation, adjusted to consider changes in the

related loan loss provision, is recognized in P&L as modification gain or loss.

3. MATERIAL ACCOUNTING POLICIES (continued)

c. Financial assets and liabilities modification and de-recognition (continued)

Conversely, renegotiations achieved both by amending the original contract or by closing the old one and

opening a new one, are considered significant when there is a substantial modification of the terms of the

instrument. A substantial modification may be indicated by several factors, including: a change in the currency,

the modified terms are no longer solely payment of principal and interest, replacement of the original debtor

with a new debtor, or present value of the new cash flows discounted at the original effective interest rate

differs from the present value of the original cash flows by more than 10%.

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset

expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in

which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in

transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or

expired.

The Group enters into transactions whereby it transfers assets recognised on its statement of financial position

but retains either all risks or rewards of the transferred assets or a portion of them. If all or substantially all

risks and rewards are retained, then the transferred assets are not derecognised from the balance sheet.

Asset transfers with the retention of all or most significant risks and benefits are, for example, securities lending

or sale transactions with a redemption clause.

The Group entered into several transactions with UniCredit SpA and other entities within UniCredit Group SpA

whereby:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• either UniCredit SpA directly financed some corporate customers, while the Group undertook the role of

agent or security agent and payment agent; or

• the Group transferred to UniCredit SpA by means of novation agreements the outstanding amount of

certain loans already granted to Romanian corporate customers and also undertook the role of security

agent and payment agent.

For most contracts concluded with UniCredit SpA, there is a risk participation agreement by which the Group

is obliged to indemnify UniCredit SpA against costs, loss or liability suffered by UniCredit SpA in connection

with the relevant contracts to the extent of an agreed percentage of the relevant amounts and up to a limit

agreed on a case by case basis.

Loans financed by UniCredit SpA are not recognized in the Group's financial statements (see Note 42 –

“Commitments and contingencies”) because the Group has transferred the right to receive cash from these

loans, has not retained substantially all the risks and rewards of ownership, and has relinquished control of the

asset.

The direct decrease of loans value (write-off) represents the operation of diminishing directly the gross loan

value fully covered by impairment allowances and their transfer in the off-balance sheet accounts, where they

are monitored until recovered. At the time of depletion, the legal actions for recovery of receivables, the off-

balance sheet is removed.

d. Purchased or Originated Credit Impaired - POCI

The amortized cost and the interest income generated by these assets are calculated by considering, in the

estimate of future cash flows, the expected credit losses over the entire residual duration of the asset.

This expected loss of credit is subject to a periodic review, resulting in recognition of impairment or write backs.

When on initial recognition an exposure, presented in “Financial assets at fair value through comprehensive

income” or “Financial assets at amortized cost”, is non-performing, it is qualified as “Purchased Originated

Credit Impaired- POCI”.

3. MATERIAL ACCOUNTING POLICIES (continued)

d. Purchased or Originated Credit Impaired – POCI (continued)

Besides impaired assets acquired, the Group identified as POCI those credit exposures that arise from

restructuring impaired exposures that led to the provision of new funding as significant either in absolute terms

or in relative terms compared to the original exposure.

e. Amortised cost measurement

The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is

measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using

the effective interest method of any difference between the initial amount recognised and the maturity

amount, minus any reduction for impairment.

f. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date in the principal or, in its absence the most

advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-

performance risk.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

When available, the Group measures the fair value of an instrument using the quoted price in an active market

for that instrument. A market is regarded as active if transactions for the asset or liability take place with

sufficient frequency and volume to provide pricing information on an ongoing basis.

If a market for a financial instrument is not active, the Group establishes fair value using a valuation technique.

Valuation techniques include using recent arm’s length transactions between knowledgeable, willing parties (if

available), reference to the current fair value of other instruments that are substantially the same, discounted

cash flow analyses and option pricing models.

The chosen valuation method should consider as much as possible the available market information, rely less

on the Group's estimates, include all factors that market participants take into account in pricing and be in in

line with the accepted economic methodologies used to determine the prices of financial instruments.

The data on which valuation techniques are based should reasonably reflect market expectations and assess

the intrinsic risk-benefit factors of the rated financial instrument.

The best evidence of fair value of financial instruments at initial recognition is the transaction price, i.e. the fair

value of the consideration given or received, unless the fair value of the instrument is evidenced by comparison

with other observable current market transactions in the same instrument or based on a valuation technique

whose variables include observable data from the market and unobservable inputs were the case may be

applicable.

The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first

date on which the amount could be required to be paid.

When the fair value cannot be reliably estimated, unquoted equity instruments that do not have a quoted

market price in an active market are measured at cost and periodically tested for impairment.

g. Identification and measurement of impairment

(i) General topics

Loans and debt securities classified as financial assets at amortized cost, financial assets at fair value through

comprehensive income (with the exception of equity instruments), lease receivables and relevant off-balance

sheet exposures are subject to the impairment requirements of IFRS9.

In this regard, these instruments are classified in stage 1, stage 2 or stage 3 according to their absolute or

relative credit quality compared to initial recognition. Specifically:

• stage 1: includes (i) newly issued or acquired credit exposures, (ii) exposures for which credit risk has not

significantly increased since initial recognition, (iii) exposures having low credit risk (low credit risk

exemption);

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(i) General topics (continued)

• stage 2: includes credit exposures that, although performing, have seen their credit risk significantly

increasing since initial recognition;

• stage 3: includes impaired credit exposures.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

For exposures in stage 1, impairment is equal to the expected loss calculated over a time horizon of up to one

year. For exposures in stages 2 or 3, impairment is equal to the expected loss calculated over a time period

corresponding to the entire duration of the exposure.

In order to meet the requirements of the standard, the Group has developed specific models to calculate

expected loss based on PD, LGD and EAD parameters, used for regulatory purposes and adjusted in order to

ensure consistency with the accounting regulations. In this context “forward looking” information was included

through the elaboration of specific scenarios.

The Stage Allocation model is a key aspect of the accounting model required to calculate expected credit

losses.The Stage Allocation model is based on a combination of relative and absolute elements.

The main elements are:

• transfer logic quantitative internal model developed: Lifetime PD from the reporting date is being

considered together with the lifetime PD as of the origination date valid for the rezidual maturity from the

reporting date and related quantile level in order to assess if stage 2 is applicable; quantitative model is being

aplied as developed on sub portfolios such as: Group wide models (multinationals, sovereign, banks, project

finance) and Local Models: private indiviuals, corporate with turnover above 3 Mio EUR, retail micro and small

corporate with tunover below 3 Mio EUR and corporate real estate. In order to properly capture the risk

underlying from revolving facilities, a behavioral maturity model has been developed for revolving facilities;

• absolute elements such as the law requirements (e.g. 30 days past-due);

• additional internal evidence (e.g. Forborne classification, Watch List 2, Watch List 1 - not applied for real

estate with reimbursement not directly linked to income from commercial spaces rental and group wide clients,

clients managed withing Restructuring and Workout units);

• additional criteria for stage 2 allocation such as: obligors with high PD such as 20%, threefold increase in

lifetime PD (compared to origination, if PD reaches a level of more than 3 times);

• a 3 months probation period meaning the exposures can return to Stage 1 only if a minimum time

permanence of 3 months in stage 2 was registered.

• all cases with PD at reporting date lower than 0.3% would be subject to LCRE (low credit risk exception) and

kept under Stage 1 if no other qualitative triggers for stage 2 are active.

Regarding debt securities, the Group choose the application of the low credit risk exemption on investment

grade securities. Therefore, on securities portfolio, considering the fact that the instruments are under

investment grade, a classification under stage 1 is performed (from quantitative approach). Still, in case of

presence of any qualitative criteria, the transactions must be allocated to stage 2.

Allowances for impairment of loans and receivables are based on the present value of expected cash flows of

principal and interest. In determining the present value of future cash flows, the basic requirement is the

identification of estimated collections, the timing of payments and the discount rate used.

The amount of the loss on impaired exposures classified as non-performing loans and unlikely to pay, according

to the categories specified below, is the difference between the carrying amount and the present value of

estimated cash flows discounted at the effective interest rate of the financial asset.

For all fixed rate positions, the interest rate thus determined is kept constant in subsequent financial years,

while for floating rate positions the interest rate is updated according to contractual terms.

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(i) General topics (continued)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

If the effective interest rate cannot be found, or if finding it would be excessively burdensome, the rate that

best approximates it is applied, also recurring to “practical expedients” that do not alter the substance and

ensure consistency with the international accounting standards.

The time horizon for recovery is estimated based on business plans or forecasts based on historical recovery

experience observed for similar classes of loans, considering the customer segment, the type of loan, the type

of security and any other factors considered relevant.

Also, the impairment on impaired exposures was calculated as required by IFRS 9 to include (i) the adjustments

necessary to arrive at the calculation of a point-in-time and forward-looking loss; and (ii) multiple scenarios

applicable to this type of exposure.

(ii) Parameters and risk definitions used for calculating value adjustments

As mentioned in the previous paragraph, the Group has developed specific models for calculating the expected

loss; such models are based on the parameters of PD, LGD and EAD and on the effective interest rate. In

particular:

• the PD (Probability of Default), represents the probability of occurrence of an event of default of the credit

exposure, in a defined time lag (i.e. 1 year);

• the LGD (Loss Given Default), represents the percentage of the estimated loss, and thus the expected rate

of recovery, at the date of occurrence of the default event of the credit exposure;

• the EAD (Exposure at Default), represents the measure of the exposure at the time of the event of default

of the credit exposure;

• the Effective interest rate is the discount rate that expresses of the time value of money.

Such parameters are calculated based on the corresponding parameters used for regulatory purposes, with

specific adjustments in order to ensure consistency between accounting and regulatory treatment despite

different regulatory requirements. Main adjustments were in regard of:

• removing conservatism required for regulatory purposes;

• introducing “point-in-time” adjustments to replace “through-the-cycle” adjustments required for regulatory

purposes;

• including “forward looking” information;

• expanding credit risk parameters to a multiannual perspective.

With reference to lifetime PD, through-the-cycle PD curves obtained by adjusting observed cumulated default

rates were calibrated in order to reflect point-in-time and forward-looking forecasts on portfolio default rates.

The recovery rate incorporated in LGD over the cycle has been adjusted to eliminate conservatism and to reflect

the current trend in recovery rates as well as expectations of future discounted rates at the effective interest

rate or best approximation.

Both PD and LGD models incorporates, starting with 2024 financials, additional effects related to climate risk

in order to better reflect within ECL computation the overall risk on each perimeter.

The lifetime EAD has been obtained by extending the 1 year regulatory or managerial model, removing margin

of conservatism and including expectation about future drawing levels.

With reference to the qualitative component of the model for stage allocation, the Bank has adopted a

statistical approach based on a quantiles regression whose objective is to define a threshold in terms of

maximum variation acceptable between the PD at the time of origination and the PD assessed at the reporting

date. The variable objective of the regressive model is thus the change between the PD at the reporting date

compared to the one at the date of origination while the explicative variables are factors such as the age of the

transaction, the PD at the date of origination, etc.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(ii) Parameters and risk definitions used for calculating value adjustments (continued)

A key component of the model is the definition of the quantile that identifies the amount of Stage 2 expected

on average in the long-run and that affects the determination of the threshold of change in PD after which the

transaction is classified in Stage 2. The average quantile in the long run is determined based on the expected

average of deterioration of the portfolio determined by the rate of defaults as in any other deterioration stage

(i.e.: 30 days past due).

The amount of exposures classified in Stage 2 at each reporting date will be around the quantile identified for

the long run based on the economic conditions at the time and on the future expectations about the evolution

of the economic cycle.

With reference to stage 3, it should be noted that it includes impaired exposures corresponding to the

aggregate Non-Performing Exposures as ITS EBA (EBA/ ITS/ 2013/ 03/ rev1 24/7/2014).

EBA has defined as “Non-Performing” exposures that meet one or both of the following criteria:

• material exposures more than 90 days past due;

• exposures for which the bank values that is unlikely that the debtor would pay in full his credit obligations

without recurring to enforcement and realization of collaterals, regardless of past due exposures and the

number of days the exposure is past due.

Starting with 2021, the Bank implemented the new definition of default, in accordance with the requirements

of EBA Guide GL / 2016/07 on the application of the definition of default and in conjunction with the

requirements of the NBR Regulation no. 5/2013 on prudential requirements for credit institutions, with

subsequent amendments and completions.

The significance threshold of the obligations from past due loans was aligned, at the level set up by Regulation

no. 5/2018 amending and supplementing the Regulation of the National Bank of Romania no. 5/2013 regarding

prudential requirements for credit institutions, as follows:

The materiality threshold for credit obligations past due, for retail exposures:

a) the level of the relative component of the materiality threshold is 1 %;

b) the level of the absolute component of the materiality threshold is 150 lei;

The materiality threshold for credit obligations past due, for exposures other than retail exposures:

a) the level of the relative component of the materiality threshold is 1 %;

b) the level of the absolute component of the materiality threshold is 1 000 lei;

During 2021, PD models on all segments were recalibrated with new DOD (using historical data restated with

new default rules) and implemented within dedicated rating systems.

(iii) Prospective information for the calculation of value adjustments

The expected credit loss deriving from the parameters described in the previous paragraph considers

macroeconomic forecasts through the application of multiple scenarios to the “forward looking” components

in order to compensate the partial non-linearity naturally present in the correlation between macroeconomic

changes and credit risk. Specifically, the non-linearity effect was incorporated through the estimation of an

overlay factor directly applied to the portfolio Expected Credit Loss.

The process defined to include macroeconomic multiple scenarios is fully consistent with macroeconomic

forecast processes used by the Group for additional risk management objectives (as for example processes

adopted to calculate expected credit losses from macroeconomic forecasts based on EBA stress test and ICAAP

Framework) and also took advantage of independent UniCredit Research function. The starting point was

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

therefore fully aligned while the application is differentiated in order to comply with different requirements

using internal scenarios only.

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(iii) Prospective information for the calculation of value adjustments (continued)

In particular, UniCredit Group has selected three macroeconomic scenarios to determine the forward looking

component, a baseline scenario, a positive scenario and a negative scenario. The probabilities are set for 31

December 2024 at 60% for the baseline scenario, 35% for the negative scenario and 5% for the positive scenario

(31 December 2023: 60% for the baseline scenario, 40% for the negative scenario and 0% for the positive

scenario).

The baseline scenario (“Baseline”) is the main scenario and, indeed, is expected to be the one with the highest

likelihood of occurrence and is coherent with the assumptions used in the planning processes. The positive and

the negative scenario represent alternative occurrences, either better or worse when compared to the baseline

scenario in terms of evolution of the economies of the countries where the Group operates.

The baseline scenario (probabilities set at 60%): it is the main reference scenario, which embeds the

perspective of economic growth for the next quarters. Private consumption will remain the biggest growth

driver, while investment will contribute more to growth in 2025, especially if public investment picks up with

the help of more EU funds. Labor markets have remained tight, supported by strong domestic demand. CEE

governments have limited fiscal space to stimulate growth in this case as they are expected to tighten their

budget deficits.

A period of disinflation is foreseen for 2025, which together with declining core market rates creates space for

central banks in the region to cut rates. Disinflation stalled in most CEE economies during the summer of 2024

as the supportive impact of food prices started to decline. Fiscal risks and the divergence between goods and

services inflation justify a cautious approach.

Wage growth will continue to outpace inflation, continuing to growth in real terms in 2025 but more slowly

than in 2024.

In terms of policy rates, Central Banks in the region are in different phases of monetary policy loosening. For

Romania, the expectation is that the National Bank will lower rates to 5% in 2025.

The table below summarizes the main macroeconomic indicators included in the baseline economic scenarios

used at 31 December 2024:

Country

Macroeconomic scenario

Base scenario

2025

2026

2027

Romania

Real GDP, yoy % change

1.9

2.5

3.0

Romania

Inflation (CPI) yoy, eop

4.5

3.4

3.0

Romania

Unemployment rate, %

5.6

5.4

Romania

Short term rate, eop

4.7

4.2

4.0

Romania

Long-term interest rates 10y (%)

7.0

6.7

6.5

Romania

House Price Index, yoy % change

5.0

4.5

5.0

The table below summarizes the main macroeconomic indicators included in the baseline economic scenarios

used at 31 December 2023:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Country

Macroeconomic scenario

Base scenario

2024

2025

2026

Romania

Real GDP, yoy % change

3.2

4.1

Romania

Inflation (CPI) yoy, eop

5.7

4.2

3.5

Romania

Unemployment rate, %

5.5

5.0

4.7

Romania

Short term rate, eop

5.7

4.0

3.0

Romania

Long-term interest rates 10y (%)

6.0

5.5

5.0

Romania

House Price Index, yoy % change

4.0

5.0

4.7

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(iii) Prospective information for the calculation of value adjustments (continued)

The Negative Scenario (“Downturn scenario”) has a probability set at 35%

This scenario embeds stressed macro-economic conditions, assuming that an escalation of geopolitical tensions

in the Middle East and Ukraine leads to higher oil and natural gas prices, while causing shortages and delays in

delivery times as pressure on supply chains increases.

The growth shock to CEE countries is around -1.8pp, in 2025, -2.9pp in 2026, and -1pp in 2027 compared to the

baseline, with a cumulative shock of around -5.7pp on average. Most economies experience a contraction in

2026, and a recovery in 2027. The scenario assumes: on average half of cumulative growth shocks will come

from the spillovers from the eurozone while the rest is caused by country-specific factors, a higher

unemployment rate in particular in 2026 and 2027 compared to the baseline and also a disinflationary shock.

The scenario assumes short-term rates to be lower compared to the baseline in all years as central banks reduce

interest rates to counter the impact of the shock on the economy and inflation returns to target. Risk-off

sentiment towards emerging markets will be putting upside pressure on bond yields. Falling inflation and

recovery in growth could help yields decline in particular in 2027, although they will likely remain higher

compared to the levels in the baseline. Thus, in this scenario yields curves are expected to steepen faster than

in the baseline scenario.

Currencies with variable exchange rates are at more depreciated level compared to the baseline in all years

due to the risk-off environment. RON depreciation estimation is not very high since the expectation is for

Romanian National Bank to intervene in FX markets to prevent faster weakening.

The table below summarizes the main macroeconomic indicators included in the adverse economic scenarios

used at 31 December 2024:

Country

Macroeconomic scenario

Adverse scenario

2025

2026

2027

Romania

Real GDP, yoy % change

0.1

-0.5

2.0

Romania

Inflation (CPI) yoy, eop

4.3

3.0

2.9

Romania

Unemployment rate, %

6.2

6.8

6.7

Romania

Short term rate, eop

4.2

3.5

3.3

Romania

Long-term interest rates 10y (%)

6.8

7.2

6.8

Romania

House Price Index, yoy % change

4.2

2.6

4.8

The table below summarizes the main macroeconomic indicators included in the adverse economic scenarios

used at 31 December 2023:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Country

Macroeconomic scenario

Adverse scenario

2024

2025

2026

Romania

Real GDP, yoy % change

-1.1

2.7

4.8

Romania

Inflation (CPI) yoy, eop

7.5

3.5

Romania

Unemployment rate, %

6.8

6.4

6.1

Romania

Short term rate, eop

5.7

4.0

3.0

Romania

Long-term interest rates 10y (%)

6.5

5.3

5.0

Romania

House Price Index, yoy % change

3.7

4.4

5.0

The Positive Scenario has a probability set at 5%.

The scenario embeds the perspective that CEE region experiences robust GDP growth exceeding 3% annually

in average from 2025 to 2027 (+2.6 pts above the baseline), fueled by stronger trade integration with Western

Europe, increased foreign direct investments, and expanded EU structural funds targeting infrastructure and

innovation. Inflation in CEE countries moderate to 3-4% annually, reflecting improved supply chain efficiencies

and stable energy prices. Governments successfully manage localized inflationary pressures through targeted

fiscal measures and investment in domestic energy production.

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(iii) Prospective information for the calculation of value adjustments (continued)

Central banks in the region adopt a gradual normalization of interest rates, keeping them by 50-100 basis points

above the baseline over three years. While maintaining a pro-growth stance, policymakers focus on ensuring

macroeconomic stability and continued foreign investment inflows.

Currencies in the CEE region are stable against both the euro and the dollar, reflecting robust economic

performance and investor confidence.

The table below summarizes the main macroeconomic indicators included in the positive economic scenarios

used at 31 December 2024:

Country

Macroeconomic scenario

Positive scenario

2025

2026

2027

Romania

Real GDP, yoy % change

2.6

3.7

3.6

Romania

Inflation (CPI) yoy, eop

5.1

3.4

3.1

Romania

Unemployment rate, %

5.4

4.9

4.8

Romania

Short term rate, eop

4.7

4.2

4.0

Romania

Long-term interest rates 10y (%)

7.5

7.4

7.1

Romania

House Price Index, yoy % change

5.3

5.0

5.5

The forecasts in terms of changes in the “Default rate” and in the “Recovery Rate” provided by the Stress Test

functions are included within the PD and LGD parameters during calibration. Credit parameters indeed, are

normally calibrated over a horizon that considers the entire economic cycle (“Through-the-cycle – TTC”), it is

thus necessary a “Point-in-time – PIT” calibration and a “Forward-looking – FL” one that allows to reflect in

those credit parameters the current situation and the expectations about the future evolution of the economic

cycle.

In this regard, the PD parameter is calculated through a normal calibration procedure, such as logistic

regression, using as anchorage point an arithmetic average among the latest default rates observed on the

portfolio and the insolvency rates foreseen by the Stress Test function. The PD determined in such way will lose

his through the cycle nature in favor of a Point in time and Forward looking philosophy.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

The LGD parameter is made Point in time through a scalar factor that allows taking into account the ratio

between average recoveries throughout the period and recoveries achieved in previous years. The inclusion of

forecast within the LGD parameter is performed by adjusting the yearly “recovery rate” implicit in this

parameter to take into account the expectations of variations of recovery rates provided by the Stress Test

function.

Geopolitical overlay resulting from Russia-Ukraine crisis

In order to factor-in into the LLP the risks underlying the sharp rise in energy costs, inflation and interest rates

for both corporate and retail it has been decided to include starting with 2022 Financial Reporting a specific

managerial overlay. The adoption of this overlay is a complementary measure to the IFRS9 models that, by

their structure, have been already properly and directly proving to recognize the effect of geo-political crises.

Considering the unresolved uncertainty on energy prices and high interest rate featuring the current

international landscape, the Geopolitical overlays were kept in 2023 and 2024. Specifically, the macro-

economic context which led to the introduction of the Geo-political overlay, has evolved and is still

characterized by a high level of uncertainty mainly due to the heightened Geo-political tensions in the Middle

East, but also due to the persistence of the Ukraine-Russian conflict.

These tensions are specifically making energy prices more uncertain and consequently also inflation.

As of 31 December 2024, the geopolitical overlay amount to 94.5 million RON on standalone basis and 152.3

million RON on consolidated basis (31 December 2023: 120 million RON on standalone basis and 184 million

RON on consolidated basis), additional impact in LLP, and is broken-down according to the following

components:

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(iii) Prospective information for the calculation of value adjustments (continued)

- Corporate energy-intensive industry sectors prone to be more affected by spill-over effects linked to Russia -

Ukraine crisis, specifically affecting the energy supply and related price soaring.

- Retail clients, for: (i) floating rate mortgages (not having overdue instalments), given the sensitiveness in this

context of increasing interest rate / inflation, and (ii) at least 1 unpaid instalment on their exposures, considered

a perimeter with already difficulties in payments and as such particularly vulnerable in this specific contingency.

Commercial Real Estate Financing / IPRE / Construction perimeter Overlay

In light of interest rates steadily remaining on higher level and plunging of real estate assets value due to

contractions of the sector, an increasing Real Estate Risk has been arisen leading Commercial Real Estate

financing perimeter as particularly vulnerable in case of stressed severe evolution of scenario, both in terms

of:

• Default risk due to impacted debt repayment capacity as a consequence of higher interest rates, impacting

also refinancing of real estate loans.

• Recovery risk due to lower values of real estate assets.

In order to factor-in into the LLP the above mentioned downside risks strongly affecting Commercial Real Estate

Financing / IPRE / Construction perimeter a new overlay was introduced starting from YE 2023. The CREF

overlay has the aim to get ready in case of severe stressed evolution of the scenario such to make this perimeter

potentially affected in a significant way in light of its expected higher vulnerability.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

As of 31 December 2024, the CREF overlay amount to 89.1 million RON on standalone basis and 123.6 million

RON on consolidated basis (31 December 2023: 80 million RON on standalone basis and 110 million RON on

consolidated basis), additional impact in LLP stock.

As far as the calculation and recurrent recalibration of geopolitical and CREF overlays is concerned, credit

exposures belonging to the respective categories are identified according to their specific features. Starting

from this, satellite models are run by applying - as macro-economic conditions - the Multi Year Plan recessive

scenario to determine the adjustment to be applied to the default rate. Such adjusted default rate is then

applied to the relevant categories to estimate the expected new inflows of defaulted exposure, whose LLPs are

then calculated according to the average coverage rate applied to Unlikely to Pay.

Between the recurrent recalibrations, a monthly maintenance is being applied to the computed overlay

amounts, by releasing any amount of overlay which is connected to new inflows into default, as in case of new

defaults higher ECL is being registered.

Bullet and balloon methodology

Bullet and balloon products are defined as the products for which the payment of principal (or a significant part

of the initial principal granted) is performed at end of the maturity of the financial instrument, whereas the

payment of interests (or payment of the interest and low level of principal) is performed during amortization

schedule.

In order to cope with the characteristics of the Bullet / Balloon products, a correction to the PD Lifetime is

applied by keeping fixed the full maturity at inception (thus sterilizing the time effect assuming that the lifetime

riskiness does not reduce as time passes, as per amortizing loan). In this way the PD Lifetime results higher thus

recognizing:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

g. Identification and measurement of impairment (continued)

(iii) Prospective information for the calculation of value adjustments (continued)

Bullet and balloon methodology (continued)

- the significant loan payment close to maturity -> the adoption of higher PD Lifetime will be prone to make

higher the allocation in Stage 2. Furthermore, the EAD fractioning has been removed since these products are

characterized by a significant loan payment close to maturity.

- the potential re-financing risk -> by keeping fixed the PD Lifetime over the initial full maturity, that will be

representative of the lifetime risk over the full maturity of the instrument, the risk of a re-financing at portfolio

level will be inherently considered.

The impact of this change was only on Bank standalone side of 35.9 million RON additional LLP as of December

2022, implemented via a dedicated overlay (with no stage reclassification). Following final granular

implementation performed in 2023 (including also stage reclassification), additional LLP charge of 5.9 million

RON was booked.

Individual Assessment for Performing Exposures

Starting with June 2023, UniCredit Bank implemented a dedicated methodology for ECL individual assessment

for significant exposures, in order to better capture within final ECL the characteristics of this perimeter. The

additional LLP impact as of June, 2023 was of 18.5 million RON extra charge for the identified perimeter.

h. Derivatives held for risk management purposes and hedge accounting

Derivative financial instruments include interest rate options and exchange rate options, interest rate swaps,

currency swaps and forward transactions. The positive fair value of the derivatives is carried as asset and the

negative fair value is carried as liability.

Derivatives held for risk management purposes include all derivative assets and liabilities that are not classified

as trading assets or liabilities. Derivatives held for risk management purposes are measured at fair value in the

statement of financial position.

On initial designation of the hedge, the Group formally documents the relationship between the hedging

instrument(s) and hedged item(s), including the risk management objective and strategy in undertaking the

hedge, together with the method that will be used to assess the effectiveness of the hedging relationship. The

Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, as

to whether the hedging instruments are expected to be highly effective in offsetting the changes in the cash

flows of the respective hedged items during the period for which the hedge is designated. The Group makes

an assessment for a cash flow hedge of a forecast transaction, as to whether the transaction is highly probable

to occur and presents an exposure to variations in cash flows that could ultimately affect profit or loss.

The treatment of changes in their fair value depends on their classification into the following categories:

(i) Fair value hedges

When a derivative is designated as hedging instrument within a fair value hedge relationship for an asset or

liability or firm commitment that may affect the income statement, changes in the fair value of the financial

instrument derivative are recognized immediately in the income statement together with changes in the fair

value of the hedged instrument that are attributable to the hedged risk in the same position in the income

statement and other comprehensive income as hedged items.

If the hedging derivative expires or is sold, terminated or exercised, or the hedge no longer meets the criteria

for fair value hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued

prospectively.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

h. Derivatives held for risk management purposes and hedge accounting (continued)

(i) Fair value hedges (continued)

However, if the derivative is novated to a central counterparty by both parties because of laws or regulations

without changes in its terms except for those that are necessary for the novation, then the derivative is not

considered as expired or terminated. Any adjustment until the discontinuity of the hedged item for which the

effective interest rate method is used is recorded in the income statement as part of its effective interest rate

recalculated over the remaining lifetime.

The Group started to apply fair value hedge accounting starting with 2013. The Group designated interest rate

swap contracts as hedging instruments and certain financial assets at fair value through other comprehensive

income of the Group as hedged items.

Starting with June 2021, the Group/the Bank implemented Macro Fair Value Hedging in the context of

replicating portfolio hedging of non-maturing deposits (the aim of a Macro hedge relationship is to offset

changes in fair value of the hedged item included into a generic fixed rate portfolio of liabilities). The Group/the

Bank applies requirements of IAS 39 Financial Instruments for Macro Fair Value Hedge transactions.

(ii) Cash flow hedges accounting

When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable

to a particular risk associated with a recognised asset or liability or highly probable forecast transaction that

could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in

other comprehensive income (“OCI”) and presented in the hedging reserve within equity. Any ineffective

portion of changes in the fair value of the derivative is recognised immediately in profit or loss. The amount

recognised in the hedging reserve is reclassified from OCI to profit or loss as a reclassification adjustment in

the same period as the hedged cash flows affect profit or loss, and in the same line item in the statement of

profit or loss and OCI.

If the hedging derivative expires or is sold, terminated or exercised, or the hedge no longer meets the criteria

for cash flow hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued

prospectively. However, if the derivative is novated to a central clearing counterparty by both parties as a

consequence of laws or regulations without changes in its terms except for those that are necessary for the

novation, then the derivative is not considered expired or terminated. If the hedged cash flows are no longer

expected to occur, then the Group immediately reclassifies the amount in the hedging reserve from OCI to

profit or loss. For terminated hedging relationships, if the hedged cash flows are still expected to occur, then

the amount accumulated in the hedging reserve is not reclassified until the hedged cash flows affect profit or

loss; if the hedged cash flows are expected to affect profit or loss in multiple reporting periods, then the Group

reclassifies the amount in the hedging reserve from OCI to profit or loss on a straight-line basis.

(iii) Other non-trading derivatives

When a derivative is not held for trading, and is not designated in a qualifying hedging relationship, all changes

in its fair value are recognized immediately in profit or loss.

(iv) Embedded derivatives

Derivatives may be embedded in another contractual arrangement (a “host contract”). The Group accounts for

hybrid contracts that contain a host that is an asset by applying the classification and measurement

requirements of IFRS 9 Financial instruments to the entire hybrid contract. If a hybrid contract contains a host

that it is not an asset within the scope of IFRS 9 Financial instruments, The Group will separate the embedded

derivative if and only if:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

h. Derivatives held for risk management purposes and hedge accounting (continued)

(iv) Embedded derivatives (continued)

(a) the economic characteristics and risks of the embedded are not closely related to the economic

characteristics and risks of the host;

(b) a separate instrument with the same terms as the embedded derivative would meet the definition of

a derivative; and

Separated embedded derivatives are accounted for depending on their classification (i.e. at fair value through

profit or loss) and are presented in the statement of financial position under Derivatives assets at fair value

through profit or loss and derivatives liabilities at fair value through profit or loss.

When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable

to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction that

could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in

“Other comprehensive income”. Any ineffective portion of changes in the fair value of the derivative is

recognized immediately in profit or loss.

If the hedging derivative expires or is sold, terminated, or exercised, or the hedge no longer meets the criteria

for cash flow hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued

prospectively. In a discontinued hedge of a forecast transaction the cumulative amount recognized in “Other

comprehensive income” from the period when the hedge was effective is reclassified from equity to profit or

loss as a reclassification adjustment when the forecast transaction occurs and affects profit or loss. If the

forecast transaction is no longer expected to occur, then the balance in “Other comprehensive income” is

reclassified immediately to profit or loss as a reclassification adjustment.

The Group designated certain interest rate swaps as hedging instruments and deposits from banks and from

customers of the Bank as hedged items. For hedge accounting purposes, only instruments that involve an

external party to the Group (or intra-group transactions directly replicated with third parties outside the Group)

are designated as hedging instruments.

i. Non-Current Assets Classified as Held for Sale / Discontinued Operations

A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered

principally from the sale rather than from continuing use; the asset (or disposal group) must be available for

immediate sale in its current state only under the normal conditions for the sale of those assets (or disposal

groups) and the sale is highly probable.

In order for the sale to be highly probable, the Group's management must be engaged in a plan to sell the asset

(or disposal group), and an active program to find a buyer is launched and the plan must be completed. The

asset (or disposal group) must be actively promoted for sale at a reasonable price in relation to its current fair

value. In addition, the sale should be expected to qualify for recognition as a completed sale within one year

from the date of classification and actions required to complete the plan should indicate that it is unlikely that

significant changes to the plan will be made or that the plan will be withdrawn.

A discontinued operation is a component of an entity that either has been disposed of, or is classified as held

for sale, and:

• represents a separate major line of business or geographical area of operations;

• is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of

operations; or

• is a subsidiary acquired exclusively with a view to resale.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

i. Non-Current Assets Classified as Held for Sale / Discontinued (continued)

The Group measures a non-current asset (or disposal group) classified as held for sale at the lower of it carrying

amount and fair value less costs to sell. For the period the asset is classified as held for sale the depreciation

ceases and is tested periodically for impairment.

The non-current asset is reclassified out of non-current assets held for sale when it is sold or the conditions to

be recognized as held for sale are no longer met.

The repossessed assets of UniCredit Leasing Corporation IFN ("UCLC") represent assets recovered or available

for sale in the current business activity, in accordance with IFRS 5. As a result, they are presented in the “Non-

current assets held for Sale” category under Other non-financial assets and are valued at the minimum between

cost and net realisable value.

j. Interest

Interest income and expenses are recognized in profit or loss using the effective interest rate method. The

effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts

through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the

carrying amount of the financial asset or liability. When calculating the effective interest rate, the Group

estimates future cash flows considering all contractual terms of the financial instrument.

Once a financial asset or a group of similar financial assets has been written down as a result of an impairment

loss, interest income is thereafter recognized using the rate of interest used to discount the future cash flows

for the purpose of measuring the impairment loss on the net loan.

The calculation of the effective interest rate includes all fees and points paid or received that are an integral

part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to

the acquisition or issue of a financial asset or liability.

Interest income and expenses presented in the Statement of comprehensive income include:

a) interest on financial assets and financial liabilities measured at amortized cost calculated on an

effective interest basis;

b) effective portion of fair value changes in qualifying hedging derivatives designated in cash flow hedges

of variability in interest cash flows, in the same period that the hedged cash flows affect interest

income/expense.

k. Fees and commissions

Fees and commission income and expense that are integral to the effective interest rate on a financial asset or

liability are included in the measurement of the effective interest rate.

Fees and commissions income and other operating income are accounted for in the income statement as the

Group satisfies the performance obligation embedded in the contract, according to “IFRS15 Revenue from

Contracts with Customers” rules. In particular:

• if the performance obligation is satisfied at a specific moment (“point in time”), the related revenue is

recognized in income statement when the service is provided;

• if the performance obligation is satisfied over-time, the related revenue is recognized in income statement

in order to reflect the progress of satisfaction of such obligation.

The Group provides banking services to retail and corporate customers, including account management,

provision of overdraft facilities, foreign currency transactions, credit card and servicing fees. Fees for ongoing

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

account management are charged to the customer's account on a monthly basis. Transaction-based fees for

interchange, foreign currency transactions and overdrafts are charged to the customer's account when the

transaction takes place. Servicing fees are charged on a monthly basis and are based on fixed rates reviewed

annually by the Group.

Revenue from account service and servicing fees is recognised over time as the services are provided. Revenue

related to transactions is recognised at the point in time when the transaction takes place.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

k. Fees and commissions (continued)

The Group's investment banking segment provides various finance-related services, including loan

administration and agency services, administration of a loan syndication, execution of client transactions with

exchanges and securities underwriting. However, if a customer terminates the contract before December 31,

then, upon termination, the fee for the services provided up to now is charged. Transaction-based fees for

administration of a loan syndication, execution of transactions, and securities underwriting are charged during

the tenor of the transaction, according to the terms of the facility agreement.

If the timing of cash-in is not aligned to the way the performance obligation is satisfied, the Group accounts for

a contract asset or a contract liability for the portion of revenue accrued in the period or to be deferred in the

following periods.

The amount of revenues linked to fees and commissions income and other operating income is measured based

on contractual provisions. If the amount contractually foreseen is subject, totally or partially, to variability, a

revenue has to be booked based on the most probable amount that the Group expects to receive. Such amount

is determined on the basis of all facts and circumstances considered relevant for the evaluation, that depend

on the type of service provided and, in particular, on the presumption that it is not highly probable that the

revenue recognised will be significantly reversed. Nevertheless, for the services provided by the Group such a

variability is not usually foreseen.

“Accrued income” includes the contract assets recognized in accordance with IFRS15. In this context accrued

income represents the portion of the performance obligation already satisfied through the services provided

by the Group and that will be settled in the future periods in accordance with contractual provisions.

“Deferred income” includes the contract liabilities recognised in accordance with IFRS15.

Deferred income represents the portion of performance obligations not yet satisfied through the services

provided by the Group but already settled during the period or in previous periods. The majority of this amount

relates to performance obligations expected to be satisfied by the following year end reporting date.

The Group also provides finance lease services granted mainly to finance purchases of cars, trucks and trailers,

equipment and real estate for which related income from fees and commissions are accounted for in the profit

and loss account as the Group fulfils the performance obligation incorporated in the contract. Commissions

earned if the performance obligation is satisfied at a specific moment (“point in time”) are recognized in income

statement when the service is provided; in this category are also included commissions from the intermediation

of the insurance related to the leasing contracts. Commissions earned if the performance obligation is satisfied

over-time are recognized in income statement as the services are provided or during the commitment period;

in this category are included fees for the monthly administration of a financial lease or credit, other fees for

services offered separately from the financing offered (GAP- guaranteed asset protection insurance service -

by which it will compensate the good, in case of total damage in the first 3 years, at its purchase value, road

assistance service). Transaction revenues (as in the case of early termination of leases/credit) are recognized

at the time of the transaction.

l. Net income from trading and other financial instruments at fair value through profit and loss

Net trading income includes all gains and losses from changes in the fair value of financial assets and financial

liabilities held for trading. The Group has chosen to present all fair value changes of trade assets and liabilities,

including any income or expense with interest and dividends.

These items are also impacted by valuation adjustments when using a certain valuation technique such as: fair

value adjustments and additional valuation adjustments. Fair value adjustment is an adjustment that considers

non-performance risk (the own credit risk – DVA or the credit risk of the counterparty to transaction – CVA OIS

- expected difference from collateralized deals). The additional value adjustments are adjustments that take

into account measurement of uncertainty (e.g. when there has been a significant decrease in the volume or

level of activity when compared to normal market activity for the asset or liability, or similar assets or liabilities,

and the Group has determined that the transaction price or quoted price does not represent fair value).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

m. Dividends

Dividend income is recognized in the income statement on the date that the dividend is declared. Dividends

are treated as an appropriation of profit in the period they are declared and approved by the General Assembly

of Shareholders.

n. Leases

(i) Leases as lessor

Finance lease contracts where the Group is the lessor that substantially transfer all risks and benefits related

to ownership over the leased asset to the lessee, are accounted for in accordance with IFRS 16 Leases.

Lessors classify leases as operating or financial. A lease is classified as a finance lease if it substantially transfers

all the risks and rewards incidental to the ownership of an underlying asset. Otherwise, a lease is classified as

an operating lease. For finance leases, a lessor recognizes financial income over the lease term, based on a

pattern that reflects a constant periodic rate of return on net investment. The lessor recognizes operating lease

payments as income on a straight-line basis or, if more representative of the pattern in which the profit from

the use of the underlying asset is diminished, another systematic basis.

(ii) Leases as leasee

At commencement, the lessor recognizes a finance lease receivable at an amount equal to its net investment

in the lease, which comprises the present value of the lease payments and any unguaranteed residual value

accruing to the lessor. The present value is calculated by discounting the lease payments and any unguaranteed

residual value, at the interest rate implicit in the lease.

A lease receivable is recognized over the leasing period at present values of minimum lease payments which

are to be made by the lessee to the Group, using the implicit interest rate and including the guaranteed residual

value. The resulted entire income from lease is included in the caption “Interest income” in the statement of

comprehensive income.

Regarding the accounting treatment applied by the lessee, IFRS16 provides for all types of leases the

recognition of an asset representing the right of use of the underlying asset, at the same time as recognizing a

liability for future payments resulting from the lease contract.

At initial recognition, the asset is measured at the amount of lease liability plus payments made before the

lease commencement date, initial direct costs, minus lease incentives received and plus eventually costs of

restoring the asset to the initial state. After initial recognition, the right of use will be measured based on the

rules on assets regulated by IAS 16 or IAS 40 and hence applying the cost model, less accumulated depreciation

and any accumulated impairment losses. The right of use assets are depreciated over the duration of the lease

contract.

The Group has decided, as allowed by the standard, not to apply the provisions of IFRS 16 for intangible assets,

short term lease agreements with a term of less than 1 year and those with a low value of the asset (less than

EUR 5,000).

As a result, the Standard applies to contracts for the lease of tangible assets other than short-term assets

and/or for which the underlying asset is of low value, such as property/office space, machinery, office

equipment and other assets.

In order to calculate the lease liability related to the right to use the asset, the Group updates the future lease

payments at an appropriate discount rate. In order to estimate the relevant incremental borrowing rate to be

used for discounting purposes, the Group considers the UniCredit Group SpA secured funding curve, adjusted

for country risk premium (the Country Funding Adjustment (CFA)). The CFA considers the differential cost of

funding linked to the country funding market perception. In order to determine the fixed interest rate, for the

relevant tenor, the Group applies the Cross Currency Swap (fixed vs floating) between EURO and that currency

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

for non-EUR denominated cash flows, while for EUR-denominated cash flows, the Group applies the IRS for

EURIBOR 3M.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

n. Leases (continued)

In this respect, the future leasing payments to be updated are determined on the basis of the net VAT

provisions as a result of the obligation to pay the tax at the moment the invoice is issued by the lessor and not

when the contract is entered into leasing.

In order to make this calculation, lease payments must be discounted using an implicit interest rate of the

contract, or, if this is not available, at an incremental borrowing rate. The latter is established based on the cost

of financing the liabilities of a similar duration and a guarantee similar to those implied in the lease.

In order to determine the lease term, it is necessary to consider the periods that cannot be cancelled in the

contract, the period when the lessee has the right to use the asset support, also taking into account the renewal

of the options if the tenant is reasonably entitled to renewal.

The re-measurement may occur as a result of either modification of the contract or by a change in the lease

term not arising from a change in the lease contract. These latter changes shall be accounted for by re-

measuring the lease liability by discounting the revised expected cash flows either at the original or at revised

incremental borrowing rate depending on the reason for re-measurement.

o. Equity investments

(i) Subsidiaries

Subsidiaries are entities controlled directly or indirectly (through other subsidiaries) by the Bank. An investor

controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with

the investee and has the ability to affect those returns through its power over the investee.

The Bank has consolidated the financial statements of its subsidiaries in accordance with IFRS 10 “Consolidated

Financial Statements”.

The Bank accounts for all its subsidiaries at cost in its separate financial statements in accordance with IAS 27,

Separate financial statements.

(ii) Investment in associates

Associates are those entities in which the Group has significant influence, but no control, over the financial and

operating policies.

The Group has no investment in associates as of 31 December 2024 and as of 31 December 2023.

(iii) Equity instruments

The Group holds minor shareholdings in other entities providing auxiliary financial services that are classified

as Financial assets at fair value through other comprehensive income (FVTOCI).

p. Income tax

The income tax expense for the year comprises current tax and deferred tax. Income tax is recognized in the

income statement or in "Other comprehensive income" if the tax relates to "Other comprehensive income".

Current income tax and deferred tax are recognized in profit or loss in the income statement except for tax on

items that are recognized in the current period directly in equity accounts, such as earnings / losses on financial

assets at fair value through other comprehensive income assets, changes in the fair value of cash flows for

hedging instruments whose net change is recognized net of tax directly in 'Other comprehensive income'.

Current tax is the tax payable on the profit for the period, determined on the basis of the percentages applied

at the balance sheet date and all adjustments relating to the previous periods.

Deferred tax is calculated using the balance sheet method for those temporary differences that arise between

the tax base for the calculation of tax on assets and liabilities and their carrying amount used for reporting in

the financial statements. Deferred tax is calculated on the basis of the expected manner of realization or

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

settlement of the carrying amount of assets and liabilities using the tax rates provided by the applicable

legislation that is applicable at the reporting date.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

p. Income tax (continued)

The deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be

available to allow for the asset to be offset. The deferred tax asset is reviewed at each reporting date and is

diminished to the extent that the related tax benefit is unlikely to occur.

Additional taxes arising from the distribution of dividends are recognized on the same date as the dividend

payment obligation.

The corporate tax rate used to calculate the current and deferred tax was 16% at 31 December 2024 (31

December 2023: 16%).

Starting with fiscal year 2024, the Group fell within the scope of the newly designed Pillar Two regulation.

The Pillar Two regulation provides for an international framework of rules aimed at ensuring that the worldwide

profits of multinational groups are subject to tax at a rate not lower than 15% in every jurisdiction in which the

groups operate.

The rules have been firstly designed by the Inclusive Framework of the OECD and then implemented in the

European Union through the EU Council Directive 2022/2523 of 14 December 2022 (“Pillar 2 Directive”).

In Romania, the law transposing the provisions of Pillar 2 Directive was published in January 2024, through Law

431/2023. In a nutshell, the Pillar Two rules provide that, if in certain jurisdictions where the UniCredit Group

operates the effective tax rate (given by the ratio between adjusted accounting results and adjusted corporate

income taxes paid in that jurisdiction) falls below 15%, then the UniCredit Group will be required to pay an

additional tax (so-called top-up tax) to reach the 15% tax rate threshold.

The relevant set of rules also provides for a transition period in which the in-scope multinational groups may

avoid undergoing the complex effective tax rate calculation required by the new piece of legislation. In

particular, the Pillar Two legislation provides for a transitional safe harbor (“TSH”) that applies for the first three

fiscal years following the entry into force of the relevant regulation; the TSH relies on simplified calculations

and three kinds of alternative tests. Where at least one of the TSH tests is met for a jurisdiction in which the

UniCredit Group operates, the top-up tax due for such jurisdiction will be deemed to be zero. A test is met for

a jurisdiction where:

1. revenue and profit before tax are below, respectively, EUR 10 million and EUR 1 million (the de minimis

test);

2. the Effective Tax Rate (i.e. ETR) equals or exceeds an agreed rate (the ETR test, 15% for FY 2024); or

3. the profit before tax does not exceed an amount calculated as a percentage of tangible assets and

payroll expense (the routine profits test).

The technical aspects brought by this law are of high complexity, the additional tax calculation models that

could result due to the application of these rules being different from the traditional methods of calculating

the corporate income tax, in this case being based, as general rule, on indicators included in the consolidated

financial statements of groups of companies. However, the methodological norms for the application of the

law are to be published within twelve months of the entry into force of Law 431/2023.

q. Offsetting

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position

when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle

on a net basis, or realize the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis only when permitted by the accounting standards, or for

gains and losses arising from a group of similar transactions such as the Group’s trading activity.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

r. Cash and cash equivalents

Cash and cash equivalents include cash, current accounts with central banks, nostro accounts, loans and

advances to other banks with an original maturity of less than 90 days and are recorded at amortized cost in

the statement of financial position.

Cash and cash equivalents do not have a significant risk of change in fair value and are used by the Group to

manage its short-term liabilities.

s. Property and equipment

(i) Initial recognition and measurement

All items of property, plant and equipment are initially recognized at cost.

Cost includes expenditures that are directly attributable to the acquisition of the asset. When parts of an item

of property or equipment have different useful lives, they are accounted for as separate items (major

components) of property, plant and equipment.

(ii) Subsequent measurement

Land and buildings are carried at a revaluated amount, being its fair value at the date of the revaluation less

any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made semi-annually, as per UniCredit SpA instructions. The fair value of land and buildings is

usually determined from market-based evidence by appraisal undertaken by professionally qualified valuators.

If an asset's carrying amount is increased as a result of a revaluation, the increase is recognized in other

comprehensive income and accumulated in equity under “Other reserves”. However, the increase is recognized

in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in

profit or loss.

If an asset's carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or

loss. However, the decrease is recognized in other comprehensive income to the extent of any credit balance

existing in the revaluation surplus in respect of that asset. The decrease recognized in other comprehensive

income reduces the amount accumulated in equity under “Other reserves”.

For the other items of property, plant and equipment the cost model is used, in accordance with IAS 16

Property, plant and equipment. After initial recognition, computers and equipment, motor vehicles, furniture

and other assets are carried at cost less any accumulated depreciation and any accumulated impairment losses.

(iii) Subsequent costs

The Group recognizes in the carrying amount of an item of property, plant and equipment the cost of

replacing part of such an item when that cost is incurred if it is probable that the future economic benefits

embodied with the item will flow to the Group and the cost of the item can be measured reliably. All other

costs are recognized in the income statement as an expense as incurred.

(iv) Depreciation

Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each

part of an item of property, plant and equipment. Land is not depreciated. Leased assets are depreciated over

the shorter of the lease term and their useful lives.

The estimated rates of depreciation are as follows:

Buildings:

- property

2% per year

- improvements (rentals)

6.25% - 100% per year

Office equipment and furniture

6.00% - 25% per year

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Computer equipment

25% per year

Depreciation methods, useful lives and residual values are reassessed at the reporting date.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

t. Intangible assets

(i) Recognition

An intangible asset is an identifiable non-monetary asset without physical substance which is expected to be

used for a period longer than one year and from which economic benefits will flow to the entity.

Intangible assets are mainly goodwill, software, brands and intangibles as list of customers.

Intangible assets, other than goodwill, are carried at acquisition cost, including any costs incurred to put the

respective asset into function, less accumulated amortization and related impairment loss.

The acquisition costs and those for put into operation of IT systems acquired are capitalized including all costs

incurred to bring the respective systems fully operational.

Costs associated with developing or maintaining computer software programs are recognized as an expense

when incurred. Costs that are directly associated with the production of identifiable and unique software

products controlled by the Bank, and that will probably generate economic benefits exceeding costs beyond

one year, are recognized as intangible assets. Direct costs include software development employee costs and

an appropriate portion of relevant overheads.

(ii) Subsequent expenditure

Subsequent expenditure on capitalized intangible assets is capitalized only when it increases the future

economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as

incurred.

(iii) Amortisation

Amortization is charged to the income statement on a straight-line basis over the estimated useful life of the

software, from the next month after the date that it is available for use.

The estimated useful lives are:

• for software: 3-7 years;

• for list of customers: 5 years;

• for licenses: contractual lifetime, maximum 5 years.

u. Impairment of non – financial assets

The carrying amount of the Group’s assets, other than deferred tax assets, is reviewed at each reporting date

to determine whether there is any objective indication of impairment. If any such indication exists, the asset’s

recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an

asset exceeds its recoverable amount. Impairment losses are recognized in the income statement.

v. Provisions

A provision is recognised in the statement of financial position when the Group has a present legal or

constructive obligation, whose value can be measured reliable, as a result of a past event, and it is probable

that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions

are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market

assessments of the time value of money and, where appropriate, the risks specific to the liability.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

w. Financial guarantees and loan commitments

Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder

for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of

a debt instrument.

The liability for financial guarantees is initially recognized at fair value and is amortized over the life of the

financial guarantee. The liability for financial collateral is then measured at the highest of the amortized amount

and the loss allowance determined in accordance with IFRS 9. Financial guarantees are disclosed in Note 42

from the consolidated and separate financial statements.

The Group has entered into transactions with the UniCredit SpA Group and other entities within the UniCredit

SpA Group for loans to non-bank clients funded by such entities within the UniCredit SpA Group (see Note 42).

In accordance with the risk-sharing arrangements related to such loans, the Group shall indemnify the

UniCredit Group SpA and the other entities within the UniCredit Group SpA as set out in Note 3 (c).

The provisions for these financial guarantees are determined using the Group's internal methodology for

assessing impairment of loans and advances to customers and are presented in the Provisions category

within the consolidated and separate financial position.

x. Employee benefits

(i) Short term service benefits

Short-term employee benefits include wages, salaries, bonuses and social security contributions. Short-term

employee benefits are recognised as expense when services are rendered. The Group includes in short-term

benefits the accruals for the employees’ current year profit sharing payable within following months after the

end of the year.

(ii) Other long-term employee benefits

Based on internal practice and policies, the Group has an obligation to pay to retiring employees a benefit

equivalent of two salaries as at retirement date. The Group’s net obligation in respect of the retirement benefit,

i.e. the defined benefit obligation is established by a qualified actuary taking into account the estimated salary

at the date of retirement and the number of years served by each individual. The actuarial valuation involves

making assumptions about discount rates, future salary increases and mortality rates. The benefit is discounted

to determine its present value, using as discount rate the yield on government bonds that have maturity dates

approximating the terms of the Group’s obligations.

(iii) Share-based payment transactions

The Group has in place incentive plans for its senior management, consisting in stock options and performance

shares which provide that UniCredit SpA (“the Parent”) shares will be settled to the grantees. The cost of this

scheme is supported by the Group and not by its Parent, and as a consequence it is recognised as an employee

benefit expense.

At Group level the expense is recognised against a liability which is measured at fair value.

The fair value of stock options is determined using the Hull and White Evaluation Model. Measurement inputs

include share price on measurement date, exercise price, volatility (historical daily average volatility for a

period equal to the duration of the vesting period), exit rate (annual percentage of Stock Options forfeited due

to termination), dividend yield (last four years average dividend-yield, according to the duration of the vesting

period).

The economic value (fair value) of Performance Shares, representing UniCredit SpA free ordinary shares to be

granted on the achievement of performance targets set at Group and Division level in the Strategic Plan

approved by the Board of UniCredit SpA, is measured considering the share market price at the grant date less

the present value of the future dividends related to the period from the grant date to the share settlement

date. Input parameters are

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

x. Employee benefits (continued)

(iii) Share-based payment transactions (continued)

market price (arithmetic mean of the official market price of UniCredit SpA ordinary shares during the month

preceding the granting Board resolution) and economic value of vesting conditions (present value of the future

dividends related to the period from the grant date to the share settlement date). The Group operates both

equity and cash settled share incentive plans.

(iv) Termination benefits

Termination benefits are recognised as an expense when the Group is demonstrably committed, without

realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal

retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary

redundancy. Termination benefits for voluntary redundancy are recognised as an expense if the Group has

made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of

acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date,

than they are discounted to their present value.

y. Segment reporting

An operating segment is a component of an entity:

(a) that engages in business activities from which it may earn revenues and incur expenses;

(b) whose operating results are regularly reviewed by the entity's chief operating decision maker to make

decisions about resources to be allocated to the segment and assess its performance; and

The main reporting format for operational segmentation is based on the internal reporting structure of

business segments, which reflects management responsibilities in the Group. Segment results that are reported

to Group management include items directly attributable to a segment and items that can reasonably be

allocated to that segment.

Unallocated items mainly comprise tangible and intangible assets and tax liabilities or assets.

For the purpose of optimal management of activities, the Group is organized into the following operating

segments:

• Retail - the Bank provides individuals (except Private Banking customers) and small and medium-sized

enterprises a large range of financial products and services, including loans (mortgages, personal loans,

overdrafts, credit card facility and funds transfer), savings, payment services and transactions with

securities. UCFIN is also included under “Retail” segment;

• Corporate Investment Banking(“CIB”) - The Group provide services and products through the Global

Banking Transactions Division (including payment services, trade finance, liquidity management),

Finance Direction (develops and offers financing products - Factoring, Real Estate Investments,

European Funds - is also actively involved in initiating, structuring and promotion of specialized

financing transactions, syndications and other specialized investment banking transactions, overflow

portfolio management and financial analysis for complex and high-risk transactions), Corporate

Financial Consulting Corporation (management consulting for merger and acquisition companies, to

finance capital markets or other financial advisory services) and the Treasury Department. The services

are provided to corporate clients, medium-sized companies, large companies, international

companies, real estate companies, public sector and financial institutions.

• Private Banking („PB”) – It focuses on individual clients and families with significant investments and /

or VIP (VIP). The segment offers personalized banking products and services, including Asset

Management and Custody solutions;

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

3. MATERIAL ACCOUNTING POLICIES (continued)

y. Segment reporting (continued)

• Leasing - The Group, through UCLC, provides financial leasing contracts mainly for financing purchases

of cars, transport vehicles, equipments and real estate. Rental contracts are mainly concluded in EUR,

USD and RON, and are granted for a period of between 1 and 15 years, the transfer of ownership of

the leased assets being made at the end of the lease;

• Other - segment (“Other”) comprises of all elements not assigned to above mentioned segments such

as equity investments, taxes and Assets and Liabilities Management (“ALM”) activities.

z. Bank Levies

Starting with 2024, according to the Romanian Tax Code, banks in Romania are obliged to pay the state budget

a tax on turnover. The % applied on turnover, for 2024 and 2025 is 2%, while from 2026 the applicable rate is

1%.

With regards to this “turnover”, legislation details the calculation of turnover as the sum of:

- interest income;

- dividend income;

- fee and commission income;

- gains or losses from derecognition of financial assets and liabilities not measured at fair value though

profit and loss, net;

- net income on financial assets and liabilities held for trading, net;

- net gains and losses on financial assets mandatory at fair value;

- net gains and losses on financial assets and liabilities designated at fair value, net;

- gains or losses from hedge accounting, net;

- foreign exchange gains or losses;

- gains or losses on disposals on nonfinancial assets, net;

- other operating income.

Analysis has been performed with regards to the classification of the tax as either being in the scope of IAS 12

Income tax, or a levy in scope of or IFRIC 21. Considering that the tax is not based on taxable profit, the Bank

concluded that the turnover tax is a levy, in scope of IFRIC 21.

aa. New Standards and Interpretations

Initial application of new amendments to the existing standards effective for the current reporting period

The following new and amended standards issued by the International Accounting Standards Board (IASB) and

adopted by the EU are effective for the current reporting period:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• Non-current Liabilities with Covenants - Amendments to IAS 1;

• Classification of Liabilities as Current or Non-Current - Amendments to IAS 1;

• Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7;

• Lease Liability in a Sale and Leaseback - Amendments to IFRS 16.

The adoption of these amendments to the existing standards has not led to any material changes in the Group’s

financial statements.

3. MATERIAL ACCOUNTING POLICIES (continued)

aa. New Standards and Interpretations (continued)

Standards and amendments to the existing standards issued by IASB and adopted by the EU but not yet

effective

At the date of authorisation of these financial statements, the following amendment to the existing standards

issued by the International Accounting Standards Board (IASB) and not yet effective was adopted by the

European Union.

• Lack of exchangeability (Amendments to IAS 21);

New standards and amendments to the existing standards issued by IASB but not yet adopted by the EU

At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the International

Accounting Standards Board (IASB) except for the following new standards and amendments to the existing

standards, which were not endorsed for use in EU as at publishing date of these financial statements:

• Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and

IFRS 7);

• Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7);

• IFRS 18 Presentation and Disclosure in Financial Statements;

• IFRS 19 Subsidiaries without Public Accountability: Disclosures;

• Annual Improvements to IFRS Standards – Volume 11;

• Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to

IFRS 10 and IAS 28.

The Group has decided not to adopt these new standards in advance before the date of entry into force.

The Group anticipates that the adoption of these new standards and amendments to the existing standards

will have no material impact on the financial statements of the Group in the period of initial application.

Hedge accounting for a portfolio of financial assets and liabilities whose principles have not been adopted by

the EU remains unregulated.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT

a) Introduction and overview

The risks are managed through a continuous process of identification, measurement and monitoring,

depending on the risk limits, segregation of duties and other controls.

The Group has exposure to the following significant risks:

• Credit risk (includes the risk for lease receivables);

• Market risks, including interest rate risk in the banking book (IRRBB);

• Liquidity risk;

• Operational risks;

• Reputational risk;

• Business risk;

• Real estate risk;

• Strategic risk;

• Risk of excessive leverage;

• Compliance risk;

• Inter-concentration risk.

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,

policies and processes for measuring and managing risk, and the Group’s management of capital.

b) Risk management framework

Objectives regarding risk management are correlated with the overall strategic objectives of the Group:

• Adequate and prudent management of risks and in particular, of significant risks;

• Increase of loan portfolio in a selective manner and achievement of a balanced structure of customers

segments;

• Diversification of products;

• Maintaining of sustainable profitability level;

• Reduction, as much as posible, the negative impact generated both by the current geopolitical context and

by the increased utilities prices;

• Simplification of the credit flow related to the retail customer segment and implementation of adequate

controls for the identification and quantification of the related risks;

• Identify optimum solutions adapted to the clients’ needs which are confronting with the negative effects

of economic-financial crisis;

• Training the Group’s employees such that to offer quality services to the clients;

• Integrating locally of the Group standards through internal regulations and procedures.

Risk Management Framework within the Bank is ensured through the existence of:

• Risk culture;

• Risk appetite;

• Policies, procedures and processes;

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• Independent Risk Management Function

• Policy for approval of new products and significant changes.

4. RISK MANAGEMENT (continued)

b) Risk management framework (continued)

The culture regarding the risks within the Group is integrated and defined overall, being based on complete

understanding of risks the Group is confronting with and of the manner they are managed, having a

tolerance/risk appetite of the Group.

The Groups’ strategic objectives include also the development of sound culture regarding the management of

risks, extended both at the management level and also to the business lines with responsibilities in risk

management area, by identifying through the set of activities performed and for each significant activity, of

the ratio between risks and profits which Group considers acceptable within the conditions of a prudent and

healthy ongoing business performance.

The Group aims to develop a holistic framework for the management of significant risks – credit risk, market

risk, liquidity risk, operational risk with all its subcategories including legal risk, conduct risk, ICT ("Information

and communication technology") and Security risk, reputational risk, business risk, strategic risks, real estate

investment risk, risk of excessive leverage, compliance risk and inter-concentration risk.

The framework for risk management is based on:

• definition and set up of basic principles, of policies, procedures, limits and related controls for managing

the risks;

• well defined and documented reporting framework, which includes regular and transparent reporting

mechanisms, so that the management body, risk managemnet committee benefit by reports in a timely,

accurate, concise, understandable and meaningful manner reports, and can share relevant information

about the identification, measurement or assessment, monitoring and management of risks;

• appropriate methodologies for identifying, measurement and evaluation of risks including both forward-

looking and backward-looking tools;

• an organized structure specialized in the management and control of risks;

• specific strategies and techniques for risk measuring and monitoring.

The framework for management of significant risks is transposed clearly and transparently in internal norms,

procedures, including manuals and codes of conduct, making a distinction between the overall standards

applicable to all employees and the rules applied specifically to certain categories of personnel.

The governing structures playing the role in risks’ management are:

The Supervisory Board has overall responsibility for the establishment and oversight of the Bank’s risk

management framework and to approve the Bank’s risk profile.

The Management Board implements the risk management strategy and policies approved by Supervisory

Board regarding the management for significant risks.

The Operative Risk Management Committee set up by Supervisory Board plays advisory role for the governing

bodies’ decisions in regard with specific domains in order to document de decisions that will be taken by the

Supervisory Board, evaluates and transmits to the Supervisory Board recommendations on the assigned

attributions and facilitates the development and implementation of a solid framework for internal

governance/activity management.

Implementation of the strategy for significant risks management at the Group level for the development and

monitoring the policies for risks management is achieved through the following committees having

responsibilities regarding risk management:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

• Risk Management Operative Committee;

• Financial Risk Committee;

• Transactional Committee, with the two sessions: (i)Credit Subcommittee and (ii) Special Credit

Subcommittee;

• Non-Financial Risk Committee

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

b) Risk management framework (continued)

• Fraud Risk Management Permanent Working Group;

• Operational Risk Permanent Work Group;

• Non-Performing Exposures Permanent Working Group.

The Audit Committee is responsible for monitoring compliance with UniCredit Group’s risk management

policies and procedures, and for reviewing the adequacy of the risk management framework in relation to the

risks faced by the Group. The Audit Committee is assisted in these functions by Internal Audit. Internal Audit

undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which

are reported to the Audit Committee.

c) Credit risk

(i) Credit risk management

The Group’s policies for risk management are set up to identify and analyze the risks faced by the Group, to set

up the adequate limits for risk and control, as well as to monitor the risks and respecting the limits. Policies and

systems for risks management are periodically reviewed in order to present the changes in market conditions,

products and services provided. The Group, through standards and procedures for management and training,

is targeting to develop a constructive and disciplined environment within all employees to understand their

roles and obligations.

Credit risk represents the risk that an unexpected change of the credit quality of counterparty might generate

a change in the value of the credit exposure towards it. This change in the credit exposure value might be due

to the default of the counterparty, that is not able to respect its contractual obligations or by the reduction of

the credit quality of the counterparty: this latest case is more relevant in assets subject to mark to market and

classified in the trading book.

The Group has set up processes for risk management and has tools for identification, measurement, monitoring

and control of the credit risk.

The Group’s policy for the risk management promotes a set of principles and coherent practices, oriented

toward the following objectives:

• Identifying, measurement and adequathly management both of credit risk in general, and sub-categories

of credit risk in particular;

• Set up a framework and adequate parameters for credit risk;

• Promoting and operating a healthy and sound process for granting loans;

• Promoting and maitaining an adequate process for management, measurement and monitoring of loans;

• Maintaining and continuing to apply prudent lending policies and standards, in order to assure an adequate

quality of loans both at the level of the entire portfolio and at the level of each customer segment;

• Ensuring a permanent control over the quality of granted loans portfolios.

Credit risk management is performed taking into account both individual loans and also entire portfolio and

includes the quantitative and qualitative aspects related to risks.

The Group evaluates mainly the solvency of the entity/ client which requests the loan facility. This evaluation

is focused mainly on establishment of the manner in which the entity that is requesting the loan facility can

respect its obligations by paying them autonomously, irrespective whether additional guarantees are provided

or not (repayment capacity).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk

Throughout the “Exposure to credit risk” notes and disclosures, “Group” includes UniCredit Bank S.A. (“Bank”),

UniCredit Consumer Financing IFN S.A. (“UCFIN”) and UniCredit Leasing Corporation IFN S.A. (“UCLC”) for loans

to customers, both for on balance sheet exposures and off balance sheet exposures. Lease receivables,

belonging to UniCredit Leasing Corporation IFN S.A. are separately reported due to the fact that the business

model and the related credit risk drivers are significantly different as compared to the Bank’s and UCFIN’s.

Throughout this chapter all the amounts contain the effect of Interest adjustments for impaired loans (IRC).

As such, gross value of the loans and allowance for impairment are presented including IRC.

• Loans and advances to customers, on and off balance – Asset Quality

Group

In RON thousands

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

As of 31 of December 2024

Gross exposure

55,003,232

11,268,217

1,581,998

67,853,447

On balance

34,381,508

7,744,749

1,382,613

43,508,870

Off balance

20,621,724

3,523,468

199,385

24,344,577

Allowance for impairment

(399,914)

(726,834)

(1,041,791)

(2,168,539)

On balance

(377,845)

(680,145)

(955,767)

(2,013,757)

Off balance

(22,069)

(46,689)

(86,024)

(154,782)

Carrying amount

54,603,318

10,541,383

540,207

65,684,908

On balance

34,003,663

7,064,604

426,846

41,495,113

Off balance*

20,599,655

3,476,779

113,361

24,189,795

As of 31 of December 2023

Gross exposure

46,693,057

11,918,022

1,271,857

59,882,936

On balance

28,142,464

8,866,748

1,093,282

38,102,494

Off balance

18,550,593

3,051,274

178,575

21,780,442

Allowance for impairment

(373,697)

(844,421)

(870,222)

(2,088,340)

On balance

(333,767)

(790,773)

(781,533)

(1,906,073)

Off balance

(39,930)

(53,648)

(88,689)

(182,267)

Carrying amount

46,319,360

11,073,601

401,635

57,794,596

On balance

27,808,697

8,075,975

311,749

36,196,421

Off balance*

18,510,663

2,997,626

89,886

21,598,175

*) Carrying amount for off balance includes the provisions booked in balance sheet in line ”Provisions”.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk

• Loans and advances to customers, on and off balance – Asset Quality (continued)

Bank

RON thousands

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

As of 31 of December 2024

Gross exposure

51,943,008

10,673,819

1,442,351

64,059,178

On balance

31,628,805

7,191,933

1,245,210

40,065,948

Off balance

20,314,203

3,481,886

197,141

23,993,230

Allowance for impairment

(274,997)

(627,831)

(979,783)

(1,882,611)

On balance

(253,571)

(581,525)

(868,469)

(1,703,565)

Off balance

(21,426)

(46,306)

(111,314)

(179,046)

Carrying amount

51,668,011

10,045,988

462,568

62,176,567

On balance

31,375,234

6,610,408

376,741

38,362,383

Off balance*

20,292,777

3,435,580

85,827

23,814,184

As of 31 of December 2023

Gross exposure

44,457,035

10,961,618

1,155,803

56,574,456

On balance

26,529,406

7,974,395

979,084

35,482,885

Off balance

17,927,629

2,987,223

176,719

21,091,571

Allowance for impairment

(282,859)

(698,424)

(816,785)

(1,798,068)

On balance

(242,850)

(645,497)

(702,086)

(1,590,433)

Off balance

(40,009)

(52,927)

(114,699)

(207,635)

Carrying amount

44,174,176

10,263,194

339,018

54,776,388

On balance

26,286,556

7,328,898

276,998

33,892,452

Off balance*

17,887,620

2,934,296

62,020

20,883,936

*) Carrying amount for off balance includes the provisions booked in balance sheet in line ”Provisions”.

• Loans and advances to banks at amortised cost - from asset quality point of view are disclosed in note 20.

• Financial assets at fair value through other comprehensive income - from asset quality point of view are

disclosed in note 23.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk

• Lease receivables, on balance – Assets Quality

UCLC (UniCredit Leasing Corporation)

In RON thousands

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

As of 31 of December 2024

Gross exposure

4,516,700

583,522

321,189

5,421,411

On balance

4,516,700

583,522

321,189

5,421,411

Allowance for impairment

(124,460)

(32,800)

(174,782)

(332,042)

On balance

(124,460)

(32,800)

(174,782)

(332,042)

Carrying amount

4,392,240

550,722

146,407

5,089,369

On balance

4,392,240

550,722

146,407

5,089,369

As of 31 of December 2023

Gross exposure

4,089,095

287,854

247,980

4,624,929

On balance

4,089,095

287,854

247,980

4,624,929

Allowance for impairment

(111,201)

(34,098)

(173,934)

(319,233)

On balance

(111,201)

(34,098)

(173,934)

(319,233)

Carrying amount

3,977,894

253,756

74,046

4,305,696

On balance

3,977,894

253,756

74,046

4,305,696

Loan portfolio is assessed for credit risk based on internal rating models. Customers are assigned with a certain

rating notch which indicates the one-year probability of default. Rating notches are mapped to the UniCredit

Group wide Master Scale. The Master Scale provides a standard rating scale for the entire UniCredit Group loan

portfolio and also ensures comparability with rating scales from external rating agencies, based on the one-

year probabilities of default assigned to each rating notch (calibration).

The Master Scale contains 10 rating classes, which are subdivided in 27 rating notches. Customers in the rating

notches 1+ to 8 are expected to default only with a low probability and are defined as non-impaired customers.

Rating notches 8-, 9 and 10 contains impaired customers in accordance with regulatory definitions for impaired

clients.

The Group’s overall risk exposure is disclosed according to the amount of identifiable impairment into four

main categories: individually significant impaired, other impaired loans, past due but not impaired and neither

past due nor individually impaired according to the internal rating of the Group and the past due status.

Impaired loans (including leasing receivables)

Loans and receivables are impaired and an impairment adjustment is incurred when an objective impairment

evidence exist as a result of:

• one or many triggers which appeared after initial recognition of the investment (default events);

• that default event has an impact on estimated future cash flow of the asset which can be reliable measured.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk

Individually significant impaired loans

Individually significant impaired loans comprise significant private individuals and companies with turnover

lower than 3 Mio EUR (having exposure more than EUR 250,000) which have at least one default event, as

defined in the Bank’s internal procedures, and significant corporate clients with turnover above 3 Mio EUR

(having exposure more than EUR 1 million) with grade 8, 9 or 10, as defined in the internal rating of the Bank;

these two categories are individually assessed by the Group.

For all of them, the collaterals are divided between property, goods, and assignment of receivables and other.

Other collateral includes pledge on stocks, machinery, cash and financial risk insurance.

Individually significant not impaired (performing) loans

Individually significant not impaired (performing) loans comprise significant private individuals and companies

with turnover lower than 1 Mio EUR (having exposure more than RON 15 Mio) that are not impaired, as defined

in the Bank’s internal procedures, and significant corporate clients with turnover above 1 Mio EUR (having

exposure more than RON 30 Mio) with grades between 5 and 8, as defined in the internal rating of the Bank;

these two categories are also individually assessed starting with 2023 by the Group.

Neither past due nor individually impaired

It includes all exposures not classified in the above categories and considered to be all performing.

Other impaired loans

Other impaired loans include all private individuals’ exposures which are more than 90 days overdue and

corporate and retail micro clients’ exposures with grade 8-, 9 and 10 which are not individually significant.

Past due but not impaired loans

Loans for which contractual interest or principal payments are past due but the Group believes that impairment

is not appropriate on the basis of the level of security/collateral available and / or the stage of collection of

amounts owed to the Group.

Allowances for impairment

The Group establishes an allowance for impairment losses based on the internal methodology as described in

note 3g (i).

Restructured exposures are loan contracts for which restructuring measures have been applied; these are

closely monitored by the Group.

Any modification of assets given to debtor that is facing or about to face financial difficulties in meeting financial

commitments represents a concession granted to the borrower (forbearance), which wouldn’t have been

granted if the debtor wouldn’t be in financial difficulties.

A concession refers to one of the following actions:

• a change in previous terms and conditions of a contract under which it is considered that the debtor cannot

meet due to the financial difficulties (“problem asset”), in order to allow a sufficient capacity to service the

debt, which would have not been granted if the debtor had not been in financial difficulty;

• a total or partial refinancing of a contract related to a problem asset, which would have not been granted

the debtor had not been in financial difficulty.

A concession may generate a loss for the lender.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk

The replacement operations of the performing assets, that have been found objective evidence of impairment,

lead to consider these exposures as problem assets only if there is a negative impact on the estimated future

cash flows of the financial asset or group of financial assets that can be reliably estimated.

The contractual amount outstanding on financial assets that were written off during the year ended 31

December 2024 and that are still subject to enforcement activity is RON thousands 31,191 (2023: RON

thousands 260,221). The total contractual amount of loans written off and still subject to enforcement activity

is, as at 31 December 2024, RON thousands 1,219,443 (31 December 2023: RON thousands 1,370,959).

Collateral

To a large degree, the Group’s exposure is in the form of traditional loans to non-financial companies and

households. These loans may be secured by collateral (e.g., a mortgage on property or a charge over securities,

movable property or receivables) or guarantees (usually provided by individuals or legal entities). Any form of

collateral serves only as additional security for the secured loan and as such is taken into account at the time

the creditworthiness of the entity requesting the credit facility is assessed. In order to protect against

fluctuations in the market value of assets assigned to the Group as collateral, the value of the collateral should

generally provide an adequate margin in excess of the current value of such assets, and this margin is properly

adjusted as a function of the intrinsic characteristics of these assets.

When assessing collateral, special emphasis is placed on the enforceability of the collateral and its

appropriateness. With regard to the former, as required by the BIS III Capital Accord the collateral obtained

must be valid, effective and binding for the collateral provider, and it must be enforceable with respect to third

parties in all jurisdictions, including in the event of the insolvency or receivership of the borrower and/or the

collateral provider.

Due to the importance of this requirement, including for the purposes of mitigating the capital requirement for

credit risk, the application procedure and related processes governing this area are particularly strict, to ensure

that the documents obtained are complete and according to the procedure at a standalone level.

With regard to appropriateness, collateral is said to be appropriate when it is qualitatively and quantitatively

sufficient with respect to the amount and nature of the credit facility, provided there are no significant risk

elements associated with the provider of security.

The tables below present for the Group the breakdown of loans to customers by business segment and asset

quality types, including also the allocated collaterals for the respective asset quality classes, separately for on

balance sheet exposures and off balance sheet exposures.

The value of collaterals presented in the following tables from this chapter represents the market value capped

at individual loan exposure level and further more adjusted (haircuts applied) as per internal procedures.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Group

RON thousands

Total out of

which*:

Corporate

Retail Micro

Private

Individuals

Private

banking

Individually significant impaired

loans

Stage 3

1,025,510

926,775

42,211

56,524

Gross amount

1,025,510

926,775

42,211

56,524

Allowance for impairment

(744,088)

(665,034)

(24,641)

(54,413)

Carrying amount

281,422

261,741

17,570

2,111

Value of collateral

201,436

165,546

14,972

20,918

Property

99,240

78,623

1,032

19,585

Goods

38,374

24,211

13,663

500

Other collateral

63,822

62,712

277

833

Other not individually impaired

loans

Stage 3

357,103

66,562

52,772

237,769

Gross amount

357,103

66,562

52,772

237,769

Allowance for impairment

(211,679)

(31,292)

(29,459)

(150,928)

Carrying amount

145,424

35,270

23,313

86,841

Value of collateral

185,018

38,524

21,523

124,971

Property

146,800

17,174

8,973

120,653

Goods

6,864

1,433

4,936

495

Other collateral

31,354

19,917

7,614

3,823

Past due but not individually

impaired loans

Stage 1

180,671

83,933

68,277

28,456

Stage 2

281,115

42,721

73,342

164,509

543

Gross amount

461,786

126,654

141,619

192,965

548

Allowance for impairment

(61,130)

(5,853)

(7,117)

(48,145)

(15)

Carrying amount

400,656

120,801

134,502

144,820

533

Neither past due nor individually

impaired loans

Stage 1

33,518,855

21,376,935

1,585,085

10,540,818

16,017

Stage 2

5,406,707

3,318,147

281,918

1,798,914

7,728

Gross amount

38,925,562

24,695,082

1,867,003

12,339,732

23,745

Allowance for impairment

(817,811)

(429,838)

(54,775)

(332,531)

(667)

Carrying Amount

38,107,751

24,265,244

1,812,228

12,007,201

23,078

Significant loans individually

assessed

Stage 1

681,982

Stage 2

2,056,927

Gross amount

2,738,909

Allowance for impairment

(179,049)

Carrying Amount

2,559,860

Total carrying amount

41,495,113

27,242,916

1,987,613

12,240,973

23,611

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2023

Group

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Individually significant impaired

loans

Stage 3

775,085

684,364

49,402

41,319

Gross amount

775,085

684,364

49,402

41,319

Allowance for impairment

(589,734)

(513,005)

(37,322)

(39,407)

Carrying amount

185,351

171,359

12,080

1,912

Value of collateral

591,263

574,118

8,571

8,574

Property

67,955

57,242

2,747

7,966

Goods

359,140

354,156

4,984

Other collateral

164,168

162,720

840

608

Other not individually impaired

loans

Stage 3

318,197

50,179

34,349

233,669

Gross amount

318,197

50,179

34,349

233,669

Allowance for impairment

(191,799)

(25,511)

(22,008)

(144,280)

Carrying amount

126,398

24,668

12,341

89,389

Value of collateral

184,878

25,786

18,703

140,389

Property

157,208

12,622

9,459

135,127

Goods

6,062

3,694

2,077

291

Other collateral

21,608

9,470

7,167

4,971

Past due but not individually

impaired loans

Stage 1

1,358,481

1,159,457

126,429

72,595

Stage 2

812,230

309,242

68,573

434,415

Gross amount

2,170,711

1,468,699

195,002

507,010

Allowance for impairment

(153,069)

(37,369)

(7,702)

(107,998)

Carrying amount

2,017,642

1,431,330

187,300

399,012

Neither past due nor individually

impaired loans

Stage 1

25,705,367

15,975,832

1,615,234

8,107,953

6,348

Stage 2

6,622,756

4,359,717

167,956

2,075,132

19,951

Gross amount

32,328,123

20,335,549

1,783,190

10,183,085

26,299

Allowance for impairment

(817,385)

(449,243)

(32,721)

(334,349)

(1,072)

Carrying Amount

31,510,738

19,886,306

1,750,469

9,848,736

25,227

Individually significant not impaired

(performing) loans

Stage 1

1,078,616

Stage 2

1,431,762

Gross amount

2,510,378

Allowance for impairment

(154,086)

Carrying Amount

2,356,292

Total carrying amount

36,196,421

23,869,955

1,962,190

10,339,049

25,227

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Group

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Off balance - Loan commitments

Stage 1

15,401,414

14,414,893

589,263

392,192

5,066

Stage 2

2,857,381

2,678,289

57,833

118,245

3,014

Stage 3

51,523

45,975

2,187

3,326

Gross amount

18,310,318

17,139,157

649,283

513,763

8,115

Allowance for impairment

(58,382)

(54,496)

(1,952)

(1,887)

(47)

Off balance - Letters of credit

Stage 1

200,242

199,177

1,065

Stage 2

76,733

Gross amount

276,975

275,910

1,065

Allowance for impairment

(5,416)

(5,415)

(1)

Off balance - Guarantees issued

Stage 1

5,020,068

4,986,565

23,552

9,951

Stage 2

589,354

587,586

1,708

Stage 3

147,862

147,480

382

Gross amount

5,757,284

5,721,631

25,642

9,951

Allowance for impairment

(90,984)

(90,707)

(149)

(127)

(1)

31.12.2023

Group

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Off balance - Loan commitments

Stage 1

13,631,418

12,793,038

536,014

298,183

4,183

Stage 2

2,316,578

2,118,367

34,332

160,180

3,699

Stage 3

62,003

56,261

3,079

2,628

Gross amount

16,009,999

14,967,666

573,425

460,991

7,917

Allowance for impairment

(83,522)

(78,728)

(1,819)

(2,929)

(46)

Off balance - Letters of credit

Stage 1

184,485

Stage 2

30,391

Gross amount

214,876

Allowance for impairment

(987)

Off balance - Guarantees issued

Stage 1

4,734,690

4,716,469

18,103

118

Stage 2

704,305

698,857

4,362

120

966

Stage 3

116,572

115,608

874

Gross amount

5,555,567

5,530,934

23,339

328

966

Allowance for impairment

(97,758)

(97,329)

(219)

(66)

(144)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present both for the Bank and for the Group the breakdown of loans to customers by

business segment and asset quality types based on the DPD as prescribed by article 178 of CRR and EU

Delegate Regulation No. 2018/171 from 19 October 2017, including also the allocated collaterals for the

respective asset quality classes of credit-impaired exposure, separately for on balance sheet exposures and

off balance sheet exposures.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

31.12.2024

Bank

RON thousands

Total out of

which*:

Corporate

Retail Micro

Private

Individuals

Private

banking

Individually significant impaired

loans

Stage 3

985,476

926,775

3,280

55,421

Gross amount

985,476

926,775

3,280

55,421

Allowance for impairment

(721,465)

(665,034)

(2,604)

(53,827)

Carrying amount

264,011

261,741

676

1,594

Value of collateral

187,273

165,546

1,309

20,418

Property

99,240

78,623

1,032

19,585

Goods

24,211

Other collateral

63,822

62,712

277

833

Other not individually impaired

loans

Stage 3

259,734

66,562

41,325

151,847

Gross amount

259,734

66,562

41,325

151,847

Allowance for impairment

(147,004)

(31,292)

(25,649)

(90,063)

Carrying amount

112,730

35,270

15,676

61,784

Value of collateral

179,935

38,524

16,935

124,476

Property

146,800

17,174

8,973

120,653

Goods

1,781

1,433

348

Other collateral

31,354

19,917

7,614

3,823

Past due but not individually

impaired loans

Stage 1

94,732

83,933

7,355

3,439

Stage 2

152,254

42,721

17,963

91,027

543

Gross amount

246,986

126,654

25,318

94,466

548

Allowance for impairment

(30,375)

(5,853)

(4,904)

(19,603)

(15)

Carrying amount

216,611

120,801

20,414

74,863

533

Neither past due nor individually

impaired loans

Stage 1

30,852,091

23,488,936

505,039

6,842,099

16,017

Stage 2

4,982,752

3,297,664

194,386

1,482,974

7,728

Gross amount

35,834,843

26,786,600

699,425

8,325,073

23,745

Allowance for impairment

(625,672)

(431,104)

(36,891)

(157,010)

(667)

Carrying amount

35,209,171

26,355,496

662,534

8,168,063

23,078

Significant loans individually

assessed

Stage 1

681,982

Stage 2

2,056,927

Gross amount

2,738,909

Allowance for impairment

(179,049)

Carrying amount

2,559,860

Total carrying amount

38,362,383

29,333,168

699,300

8,306,304

23,611

4. RISK MANAGEMENT (continued)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2023

Bank

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Individually significant impaired

loans

Stage 3

733,736

684,364

8,053

41,319

Gross amount

733,736

684,364

8,053

41,319

Allowance for impairment

(557,815)

(513,005)

(5,403)

(39,407)

Carrying amount

175,921

171,359

2,650

1,912

Value of collateral

586,180

574,118

3,488

8,574

Property

67,856

57,242

2,648

7,966

Goods

354,156

Other collateral

164,168

162,720

840

608

Other not individually impaired

loans

Stage 3

245,348

50,179

29,476

165,693

Gross amount

245,348

50,179

29,476

165,693

Allowance for impairment

(144,271)

(25,511)

(19,471)

(99,289)

Carrying amount

101,077

24,668

10,005

66,404

Value of collateral

183,107

25,786

17,223

140,098

Property

157,208

12,622

9,459

135,127

Goods

4,291

3,694

597

Other collateral

21,608

9,470

7,167

4,971

Past due but not individually

impaired loans

Stage 1

1,238,129

1,159,457

29,104

49,568

Stage 2

723,597

309,242

44,136

370,219

Gross amount

1,961,726

1,468,699

73,240

419,787

Allowance for impairment

(122,098)

(37,369)

(6,585)

(78,144)

Carrying amount

1,839,628

1,431,330

66,655

341,643

Neither past due nor individually

impaired loans

Stage 1

24,212,661

17,947,004

438,170

5,821,139

6,348

Stage 2

5,819,036

4,359,095

142,682

1,297,308

19,951

Gross amount

30,031,697

22,306,099

580,852

7,118,447

26,299

Allowance for impairment

(612,163)

(449,353)

(20,297)

(141,441)

(1,072)

Carrying amount

29,419,534

21,856,746

560,555

6,977,006

25,227

Individually significant not impaired

(performing) loans

Stage 1

1,078,616

Stage 2

1,431,762

Gross amount

2,510,378

Allowance for impairment

(154,086)

Carrying amount

2,356,292

Total carrying amount

33,892,452

25,840,395

639,865

7,386,965

25,227

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Bank

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Off balance - Loan commitments

Stage 1

15,093,463

14,766,475

244,276

77,646

5,066

Stage 2

2,815,799

2,677,495

45,387

89,903

3,014

Stage 3

49,279

45,975

2,187

1,082

Gross amount

17,958,541

17,489,945

291,850

168,631

8,115

Allowance for impairment

(56,694)

(54,346)

(1,485)

(816)

(47)

Off balance - Letters of credit

Stage 1

200,242

199,177

1,065

Stage 2

76,733

Gross amount

276,975

275,910

1,065

Allowance for impairment

(5,416)

(5,415)

(1)

Off balance - Guarantees issued

Stage 1

5,020,498

4,986,995

23,552

9,951

Stage 2

589,354

587,586

1,708

Stage 3

147,862

147,480

382

Gross amount

5,757,714

5,722,061

25,642

9,951

Allowance for impairment

(116,936)

(116,659)

(149)

(127)

(1)

31.12.2023

Bank

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Private

banking

Off balance - Loan commitments

Stage 1

13,008,026

12,700,816

228,717

74,310

4,183

Stage 2

2,252,527

2,118,367

33,153

97,308

3,699

Stage 3

60,147

56,261

2,934

917

Gross amount

15,320,700

14,875,444

264,804

172,535

7,917

Allowance for impairment

(81,709)

(78,573)

(1,427)

(1,663)

(46)

Off balance - Letters of credit

Stage 1

184,485

Stage 2

30,391

Gross amount

214,876

Allowance for impairment

(987)

Off balance - Guarantees issued

Stage 1

4,735,118

4,716,897

18,103

118

Stage 2

704,305

698,857

4,362

120

966

Stage 3

116,572

115,608

874

Gross amount

5,555,995

5,531,362

23,339

328

966

Allowance for impairment

(124,939)

(124,510)

(219)

(66)

(144)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present the breakdown of lease receivables by business segment and asset quality types,

including also the allocated collaterals for the respective asset quality classes.

31.12.2024

UCLC (UniCredit Leasing Corporation)

RON thousands

Total out of

which*:

Corporate

Retail Micro

Private

Individuals

Individually significant impaired loans

Stage 3

220,353

33,049

185,364

1,940

Gross amount

220,353

33,049

185,364

1,940

Allowance for impairment

(141,731)

(19,111)

(121,215)

(1,405)

Carrying amount

78,622

13,938

64,149

535

Value of collateral

100,907

12,968

87,403

536

Property

24,598

Vehicles and equipment

52,699

12,968

39,195

536

Other collateral

23,610

Other not individually impaired loans

Stage 3

100,836

502

97,924

2,410

Gross amount

100,836

502

97,924

2,410

Allowance for impairment

(33,051)

(342)

(31,777)

(932)

Carrying amount

67,785

160

66,147

1,478

Value of collateral

62,724

160

61,223

1,341

Vehicles and equipment

62,724

160

61,223

1,341

Past due but not individually impaired

loans

Stage 1

12,685

12,589

Stage 2

177,193

5,104

166,356

5,733

Gross amount

189,878

5,104

178,945

5,829

Allowance for impairment

(10,815)

(83)

(10,669)

(63)

Carrying amount

179,063

5,021

168,276

5,766

Neither past due nor individually impaired

loans

Stage 1

4,504,015

373,882

4,043,661

86,472

Stage 2

406,329

27,073

375,815

3,441

Gross amount

4,910,344

400,955

4,419,476

89,913

Allowance for impairment

(146,445)

(19,633)

(126,195)

(617)

Carrying Amount

4,763,899

381,322

4,293,281

89,296

Total carrying amount

5,089,369

400,441

4,591,853

97,075

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2023

UCLC (Unicredit Leasing Corporation)

RON thousands

Total out of

which:

Corporate

Retail Micro

Private

Individuals

Individually significant impaired loans

Stage 3

191,251

35,846

154,215

1,190

Gross amount

191,251

35,846

154,215

1,190

Allowance for impairment

(152,293)

(53,410)

(97,693)

(1,190)

Carrying amount

38,958

(17,564)

56,522

Value of collateral

62,310

8,324

53,986

Property

19,815

Vehicles and equipment

16,447

8,324

8,123

Other collateral

26,048

Other not individually impaired loans

Stage 3

56,729

54,239

2,490

Gross amount

56,729

54,239

2,490

Allowance for impairment

(21,641)

(20,561)

(1,080)

Carrying amount

35,088

33,678

1,410

Value of collateral

30,976

29,581

1,395

Vehicles and equipment

30,976

29,581

1,395

Past due but not individually impaired

loans

Stage 1

99,029

1,429

91,902

5,698

Stage 2

66,260

64,801

1,459

Gross amount

165,289

1,429

156,703

7,157

Allowance for impairment

(4,351)

(80)

(4,200)

(71)

Carrying amount

160,938

1,349

152,503

7,086

Neither past due nor individually impaired

loans

Stage 1

3,990,066

322,402

3,592,451

75,213

Stage 2

221,594

22,510

198,468

616

Gross amount

4,211,660

344,912

3,790,919

75,829

Allowance for impairment

(140,948)

(19,107)

(121,363)

(478)

Carrying Amount

4,070,712

325,805

3,669,556

75,351

Total carrying amount

4,305,696

309,590

3,912,259

83,847

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present the breakdown of loans and advances to customers by risk grades, separately for

on balance sheet exposures and off balance sheet exposures.

31.12.2024

Group

RON thousands

Loans and advances to

customers at amortized

cost (on balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing

(low risk)

0% - 0.306%

3,703,547

260,172

3,963,719

Grades 4-6: performing

(medium risk)

0.307%-4.965%

29,449,655

5,086,879

34,536,534

Grades 7-8: performing (in

observation &

substandard)

4.966%-99.99%

1,220,522

2,270,157

3,490,679

Grade 8: impaired

100%

1,285,227

Grade 9: impaired

100%

4,346

Grade 10: impaired

100%

93,040

Unrated

100%

7,784

127,541

135,325

Total gross amount

34,381,508

7,744,749

1,382,613

43,508,870

Loss allowance

(377,845)

(680,145)

(955,767)

(2,013,757)

Carrying amount

34,003,663

7,064,604

426,846

41,495,113

31.12.2023

Group

RON thousands

Loans and advances to

customers at amortized

cost (on balance)

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3 : performing

(low risk)

0% - 0.306%

3,528,657

163,497

3,692,154

Grades 4-6: performing

(medium risk)

0.307%-

4.965%

23,574,153

6,729,980

30,304,133

Grades 7-8 : performing (in

observation & substandard)

4.966%-

99.99%

1,012,683

1,878,611

2,891,294

Grade 8: impaired

100%

1,063,407

Grade 9: impaired

100%

Grade 10: impaired

100%

29,809

Unrated

100%

26,971

94,660

121,631

Total gross amount

28,142,464

8,866,748

1,093,282

38,102,494

Loss allowance

(333,767)

(790,773)

(781,533)

(1,906,073)

Carrying amount

27,808,697

8,075,975

311,749

36,196,421

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Group

RON thousands

Loans and advances to

customers at amortized cost

(off balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing (low

risk)

0% - 0.306%

6,324,071

878,760

7,202,831

Grades 4-6: performing

(medium risk)

0.307%-4.965%

13,975,506

2,037,774

16,013,280

Grades 7-8: performing (in

observation & substandard)

4.966%-99.99%

282,812

603,118

885,930

Grade 8: impaired

100%

187,735

Grade 10: impaired

100%

11,650

Unrated

100%

39,335

3,816

43,151

Total gross amount

20,621,724

3,523,468

199,385

24,344,577

Loss allowance

(22,069)

(46,689)

(86,024)

(154,782)

31.12.2023

Group

RON thousands

Loans and advances to

customers at amortized

cost (off balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing

(low risk)

0% - 0.306%

6,875,810

231,129

7,106,939

Grades 4-6: performing

(medium risk)

0.307%-4.965%

11,335,423

2,497,278

13,832,701

Grades 7-8 : performing (in

observation & substandard)

4.966%-99.99%

276,724

318,722

595,446

Grade 8 : impaired

100%

177,712

Grade 9: impaired

100%

Grade 10: impaired

100%

855

Unrated

100%

62,636

4,145

66,781

Total gross amount

18,550,593

3,051,274

178,575

21,780,442

Loss allowance

(39,930)

(53,648)

(88,689)

(182,267)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Bank

RON thousands

Loans and advances to

customers at amortized cost

(on balance)

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3: performing (low

risk)

0% - 0.306%

5,904,275

259,174

6,163,449

Grades 4-6: performing

(medium risk)

0.307%-4.965%

25,094,995

4,836,268

29,931,263

Grades 7-8: performing (in

observation & substandard)

4.966%-99.99%

621,751

2,083,043

2,704,794

Grade 8: impaired

100%

1,163,652

Grade 9: impaired

100%

4,346

Grade 10: impaired

100%

77,212

Unrated

100%

7,784

13,448

21,232

Total gross amount

31,628,805

7,191,933

1,245,210

40,065,948

Loss allowance

(253,571)

(581,525)

(868,469)

(1,703,565)

Carrying amount

31,375,234

6,610,408

376,741

38,362,383

31.12.2023

Bank

RON thousands

Loans and advances to

customers at amortized

cost (on balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing

(low risk)

0% - 0.306%

5,572,379

160,322

5,732,701

Grades 4-6: performing

(medium risk)

0.307%-4.965%

20,461,371

6,183,506

26,644,877

Grades 7-8 : performing (in

observation & substandard)

4.966%-99.99%

469,816

1,619,626

2,089,442

Grade 8 : impaired

100%

971,453

Grade 9: impaired

100%

Grade 10: impaired

100%

7,565

Unrated

100%

25,840

10,941

36,781

Total gross amount

26,529,406

7,974,395

979,084

35,482,885

Loss allowance

(242,850)

(645,497)

(702,086)

(1,590,433)

Carrying amount

26,286,556

7,328,898

276,998

33,892,452

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

Bank

RON thousands

Loans and advances to

customers at amortized cost

(off balance)

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing (low

risk)

0% - 0.306%

6,699,270

873,668

7,572,938

Grades 4-6: performing

(medium risk)

0.307%-4.965%

13,323,960

2,012,499

15,336,459

Grades 7-8: performing (in

observation & substandard)

4.966%-99.99%

251,638

595,090

846,728

Grade 8: impaired

100%

185,491

Grade 10: impaired

100%

11,650

Unrated

100%

39,335

629

39,964

Total gross amount

20,314,203

3,481,886

197,141

23,993,230

Loss allowance

(21,426)

(46,306)

(111,314)

(179,046)

31.12.2023

Bank

RON thousands

Loans and advances to

customers at amortized cost

(off balance)

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing (low

risk)

0% - 0.306%

6,824,609

220,924

7,045,533

Grades 4-6: performing

(medium risk)

0.307%-4.965%

10,785,796

2,453,502

13,239,298

Grades 7-8 : performing (in

observation & substandard)

4.966%-99.99%

254,590

311,340

565,930

Grade 8 : impaired

100%

175,856

Grade 9: impaired

100%

Grade 10: impaired

100%

855

Unrated

100%

62,634

1,457

64,091

Total gross amount

17,927,629

2,987,223

176,719

21,091,571

Loss allowance

(40,009)

(52,927)

(114,699)

(207,635)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2024

UCLC (UniCredit Leasing Corporation)

In RON thousands

Lease receivables (on balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing (low risk)

0.02%-0.26%

1,310

1,381

Grades 4-6: performing (medium

risk)

0.36%-4.28%

3,729,858

385,903

4,115,761

Grades 7-8: performing (in

observation & substandard)

5.73%-73.50%

786,771

196,309

983,080

Grade 8: impaired

100%

225,205

Grade 10: impaired

100%

95,984

Total gross amount

4,516,700

583,522

321,189

5,421,411

Loss allowance

(124,460)

(32,800)

(174,782)

(332,042)

Carrying amount

4,392,240

550,722

146,407

5,089,369

31.12.2023

UCLC (Unicredit Leasing Corporation)

In RON thousands

Lease receivables (on balance)

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing (low

risk)

0.02%-0.26%

44,041

Grades 4-6: performing

(medium risk)

0.36%-4.28%

3,455,978

208,046

3,664,024

Grades 7-8 : performing (in

observation & substandard)

5.73%-73.50%

589,076

79,808

668,884

Grade 8 : impaired

100%

183,261

Grade 9: impaired

100%

1,966

Grade 10: impaired

100%

62,753

Total gross amount

4,089,095

287,854

247,980

4,624,929

Loss allowance

(111,201)

(34,098)

(173,934)

(319,233)

Carrying amount

3,977,894

253,756

74,046

4,305,696

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present the breakdown of loans and advances to banks by risk grades, separately for on

balance sheet exposures and off balance sheet exposures.

31.12.2024

RON thousands

Group/Bank

Loans and advances to banks at

amortized cost

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3: performing (low risk)

0% -

0.306%

184,568

832

185,400

Total gross amount

184,568

832

185,400

Loss allowance

(17)

Carrying amount

184,551

832

185,383

Gross amount - off balance

1,673,805

1,360,490

3,034,295

Loss allowance - off balance

(172)

(369)

(541)

31.12.2023

Group/Bank

RON thousands

Loans and advances to banks at

amortized cost

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3: performing (low risk)

0% - 0.306%

142,107

Total gross amount

142,107

Loss allowance

(11)

Carrying amount

142,096

Gross amount - off balance

2,446,777

Loss allowance - off balance

(10)

The two tables above are the same also for the Bank.

Loans and advances to banks at amortized

cost

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Investment-grade

185,383

142,096

185,383

142,096

Total

185,383

142,096

185,383

142,096

The analysis is based on the ratings issued by Standard & Poor, if available, or by Moody's and Fitch converted

to the nearest equivalent on the Standard & Poor rating scale.

The investment-grade category includes loans to banks for which the debtor has the following ratings: A+, A,

A-, BBB+, BBB, BBB-, BAA1 and BAA3.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present the breakdown of financial assets at fair value through other comprehensive income

by risk grades.

31.12.2024

Group

RON thousands

Financial assets at fair value

through other comprehensive

income

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3: performing (low

risk)

0% - 0.306%

2,074,378

Total fair value

2,074,378

Loss allowance

(994)

Carrying amount

2,073,384

31.12.2023

Group

RON thousands

Financial assets at fair value

through other comprehensive

income

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 - Lifetime

ECL

Stage 3 -

Lifetime

ECL

Total

Grades 1-3 : performing (low

risk)

0% - 0.306%

2,027,385

Total fair value

2,027,385

Loss allowance

(860)

Carrying amount

2,026,525

31.12.2024

Bank

RON thousands

Financial assets at fair value

through other comprehensive

income

IFRS 9 12-

month PD

ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing (low risk)

0% - 0.306%

2,062,093

Total fair value

2,062,093

Loss allowance

(994)

Carrying amount

2,061,099

31.12.2023

Bank

RON thousands

Financial assets at fair value

through other comprehensive

income

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing (low

risk)

0% - 0.306%

2,017,620

Total fair value

2,017,620

Loss allowance

(860)

Carrying amount

2,016,760

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below present the breakdown of debt instruments at amortized cost by risk grades.

31.12.2024

Group/Bank

RON thousands

Debt instruments at

amortized cost

IFRS 9 12-month

PD ranges

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3: performing (low

risk)

0% - 0.306%

10,603,106

Total gross amount

10,603,106

Loss allowance

(6,060)

Carrying amount

10,597,046

31.12.2023

Group/Bank

RON thousands

Debt instruments at amortized

cost

IFRS 9 12-

month PD

ranges

Stage 1 12-month

ECL

Stage 2 -

Lifetime

ECL

Stage 3 -

Lifetime ECL

Total

Grades 1-3 : performing (low

risk)

0% - 0.306%

9,651,897

Total gross amount

9,651,897

Loss allowance

(4,683)

Carrying amount

9,647,214

The two tables above are the same also for the Bank.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

• Concentration of credit risk related to loans and advances to customers

The Group monitors concentrations of credit risk by sector of activity, client segment, products, ratings,

geographical area on a quarterly basis. An analysis of concentrations of credit risk by industry at the reporting

date is shown below:

Group

Loans to customers at amortised cost - ON balance

31.12.2024

31.12.2023

Private entities (including individuals)

12,851,283

10,991,382

Retail Micro

G Commerce - wholesale and retail

855,063

865,009

C Manufacturing

133,775

122,870

A Agriculture - forestry - fisheries

319,918

348,576

F Construction and civil engineering

84,402

72,571

H Transport and storage services

526,631

491,420

Other services

183,816

161,497

Total Retail Micro

2,103,605

2,061,943

Corporate

G Commerce - wholesale and retail

7,415,633

7,004,751

C Manufacturing

6,129,523

5,595,385

K Financial and insurance institutions

1,423,987

1,249,549

O Public administration and defence; social

security insurance

2,231,193

1,898,420

F Construction and civil engineering

2,127,525

1,564,746

Other services

9,226,121

7,736,318

Total Corporate

28,553,982

25,049,169

Total

43,508,870

38,102,494

Allowance for impairment

(2,013,757)

(1,906,073)

Carrying amount

41,495,113

36,196,421

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

• Concentration of credit risk related to loans and advances to customers (continued)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Group

Loans to customers at amortised cost - OFF balance

31.12.2024

31.12.2023

Private entities (including individuals)

531,889

470,202

Loans commitments

Retail Micro

G Commerce - wholesale and retail

453,063

392,142

C Manufacturing

51,819

55,024

F Construction and civil engineering

35,265

30,069

A Agriculture - forestry - fisheries

33,359

36,233

M Professional, scientific and technical activities

20,602

15,527

Other industries

55,175

44,430

Total Retail Micro

649,283

573,425

Corporate

G Commerce - wholesale and retail

4,082,711

3,877,490

C Manufacturing

3,190,916

3,769,233

D Production and supply of electricity, gas, steam

and air conditioning

2,606,327

1,563,275

F Construction and civil engineering

1,974,405

1,771,429

K Financial and insurance institutions

903,498

726,817

Other industries

4,381,300

3,259,422

Total Corporate

17,139,157

14,967,666

Total loans commitments

17,788,440

15,541,091

Letters of credit

Retail Micro

M Professional, scientific and technical activities

1,065

Total Retail Micro

1,065

Corporate

G Commerce - wholesale and retail

137,634

148,064

C Manufacturing

107,190

51,614

F Construction and civil engineering

31,086

7,057

Other industries

8,141

Total Corporate

275,910

214,876

Total letters of credit

276,975

214,876

Financial guarantees

Retail Micro

D Production and supply of electricity, gas, steam

and air conditioning

5,102

1,064

M Professional, scientific and technical activities

4,106

5,025

N Administrative and support service activities

3,181

2,956

G Commerce - wholesale and retail

2,992

4,193

F Construction and civil engineering

2,949

2,294

Other industries

7,312

7,807

Total Retail Micro

25,642

23,339

Corporate

G Commerce - wholesale and retail

1,860,728

1,701,810

F Construction and civil engineering

1,700,871

1,223,201

D Production and supply of electricity, gas, steam

and air conditioning

842,891

1,184,749

C Manufacturing

564,795

413,954

M Professional, scientific and technical activities

240,470

358,181

Other Industries

511,876

649,039

Total Corporate

5,721,631

5,530,934

Total financial guarantees

5,747,273

5,554,273

TOTAL Off balance sheet

exposure for loans to customers

24,344,577

21,780,442

Allowance for impairment

(154,782)

(182,267)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

• Concentration of credit risk related to loans and advances to customers (continued)

Bank

Loans to customers at amortised cost - ON balance

31.12.2024

31.12.2023

Private entities (including individuals)

8,651,100

7,771,545

Retail Micro

G Commerce - wholesale and retail

233,093

212,152

C Manufacturing

123,382

112,136

A Agriculture - forestry - fisheries

101,046

106,331

F Construction and civil engineering

78,600

69,561

H Transport and storage services

66,292

51,520

Other services

166,935

139,921

Total Retail Micro

769,348

691,621

Corporate

G Commerce - wholesale and retail

7,297,714

6,914,522

C Manufacturing

6,129,523

5,595,385

K Financial and insurance institutions

3,641,071

3,325,283

O Public administration and defence; social

security insurance

2,231,193

1,898,420

F Construction and civil engineering

2,126,926

1,563,326

Other services

9,219,073

7,722,783

Total Corporate

30,645,500

27,019,719

Total

40,065,948

35,482,885

Allowance for impairment

(1,703,565)

(1,590,433)

Carrying amount

38,362,383

33,892,452

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

Bank

Loans to customers at amortised cost - OFF balance

31.12.2024

31.12.2023

Private entities (including individuals)

186,757

181,746

Loan commitments

Retail Micro

G Commerce - wholesale and retail

98,397

88,742

C Manufacturing

49,052

51,365

F Construction and civil engineering

35,265

30,069

A Agriculture - forestry - fisheries

33,359

36,233

M Professional, scientific and technical

activities

20,602

15,527

Other industries

55,175

42,868

Total Retail Micro

291,850

264,804

Corporate

G Commerce - wholesale and retail

3,959,527

3,744,971

C Manufacturing

3,190,916

3,769,233

D Production and supply of electricity, gas,

steam and air conditioning

2,606,327

1,563,275

F Construction and civil engineering

1,974,405

1,771,429

K Financial and insurance institutions

1,377,470

767,114

Other industries

4,381,300

3,259,422

Total Corporate

17,489,945

14,875,444

Total loans commitments

17,781,795

15,140,248

Letters of credit

Retail Micro

M Professional, scientific and technical

activities

1,065

Total Retail Micro

1,065

Corporate

G Commerce - wholesale and retail

137,634

148,064

C Manufacturing

107,190

51,614

F Construction and civil engineering

31,086

7,057

Other industries

8,141

Total Corporate

275,910

214,876

Total letters of credit

276,975

214,876

Financial guarantees

Retail Micro

D Production and supply of electricity, gas,

steam and air conditioning

5,102

1,064

M Professional, scientific and technical

activities

4,106

5,025

N Administrative and support service activities

3,181

2,956

G Commerce - wholesale and retail

2,992

4,193

F Construction and civil engineering

2,949

2,294

Other industries

7,312

7,807

Total Retail Micro

25,642

23,339

Corporate

G Commerce - wholesale and retail

1,860,728

1,701,810

F Construction and civil engineering

1,700,871

1,223,201

D Production and supply of electricity, gas,

steam and air conditioning

842,891

1,184,749

C Manufacturing

564,795

413,954

M Professional, scientific and technical

activities

240,470

358,181

Other Industries

512,306

649,467

Total Corporate

5,722,061

5,531,362

Total financial guarantees

5,747,703

5,554,701

TOTAL Off balance sheet

exposure for loans to customers

23,993,230

21,091,571

Allowance for impairment

(179,046)

(207,635)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

• Concentration of credit risk related to lease receivables

UCLC (UniCredit Leasing Corporation)

Lease receivables at amortised cost - ON balance

31.12.2024

31.12.2023

Private entities (including individuals)

100,092

86,666

Retail Micro

G Commerce - wholesale and retail

919,803

762,507

F Construction and civil engineering

879,165

731,316

H Transport and storage services

604,869

564,586

C Manufacturing

495,749

471,001

M Professional, scientific and technical

activities

358,448

308,889

OTHER Other industries

1,623,675

1,317,777

Total Retail Micro

4,881,709

4,156,076

Corporate

F Construction and civil engineering

111,613

74,881

C Manufacturing

101,112

119,594

G Commerce - wholesale and retail

74,252

83,931

N Administrative and support service

activities

73,326

58,734

J Information and communication

25,240

3,690

OTHER Other industries

54,067

41,357

Total Corporate

439,610

382,187

Total

5,421,411

4,624,929

Allowance for impairment

(332,042)

(319,233)

Carrying amount

5,089,369

4,305,696

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements of on balance exposures of the Group’s financial assets are summarized in the below tables.

31.12.2024

Group

RON thousands

Loans and advances to customers at

amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2023

28,142,464

8,866,748

1,093,282

38,102,494

Changes in the gross amount

-Transfer to stage 1

3,249,587

(3,224,660)

(24,927)

-Transfer to stage 2

(2,913,872)

2,930,648

(16,776)

-Transfer to stage 3

(353,342)

(319,936)

673,278

-Changes due to modifications of exposure

(1,421,307)

(446,692)

(161,269)

(2,029,268)

New financial assets originated or

purchased

12,960,106

1,438,750

65,210

14,464,066

Financial assets that have been closed

(5,301,063)

(1,505,992)

(192,621)

(6,999,676)

Write-offs

(53,603)

Other changes

18,935

5,883

24,857

Gross amount as at 31 December 2024

34,381,508

7,744,749

1,382,613

43,508,870

Loss allowance as at 31 December 2024

(377,845)

(680,145)

(955,767)

(2,013,757)

Carrying amount as at 31 December 2024

34,003,663

7,064,604

426,846

41,495,113

The movements of the Group’s loss allowances of financial assets are summarized as follows:

31.12.2024

Group

RON thousands

Loss allowance – Loans and advances to

customers at amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2023

(333,767)

(790,773)

(781,533)

(1,906,073)

Changes in the loss allowance

-Transfer to stage 1

(253,236)

235,468

17,768

-Transfer to stage 2

40,286

(49,605)

9,319

-Transfer to stage 3

10,605

47,977

(58,582)

-Increases due to change in credit risk

(1,840)

(139,194)

(308,948)

(449,982)

-Decreases due to change in credit risk

166,384

7,457

507

174,348

Write-offs

53,603

-Changes due to modifications of exposure

98,385

(4,959)

32,518

125,944

New financial assets originated or

purchased

(183,442)

(139,963)

(43,851)

(367,256)

Financial assets that have been closed

78,802

153,556

123,475

355,833

Foreign exchange and other movements

(22)

(109)

(43)

(174)

Loss allowance as at 31 December 2024

(377,845)

(680,145)

(955,767)

(2,013,757)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2023

Group

RON thousands

Loans and advances to customers at

amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Of which:

POCI

Financial

Assets*

Total

Gross amount as at 31 December

2022

26,218,761

7,344,476

1,139,951

9,161

34,703,188

Changes in the gross amount

-Transfer to stage 1

1,152,032

(1,146,639)

(5,393)

-Transfer to stage 2

(3,934,694)

3,992,779

(58,085)

-Transfer to stage 3

(176,498)

(302,957)

479,455

-Changes due to modifications of

exposure

(1,272,233)

(700,122)

(200,874)

(9,161)

(2,173,229)

New financial assets originated or

purchased

11,847,706

1,636,019

161,084

13,644,809

Financial assets that have been

closed

(5,739,160)

(1,973,370)

(179,511)

(7,892,041)

Write-offs

(246,281)

Other changes

46,548

16,562

2,936

66,046

Gross amount as at 31 December

2023

28,142,464

8,866,748

1,093,282

38,102,494

Loss allowance as at 31 December

2023

(333,767)

(790,773)

(781,533)

(1,906,073)

Carrying amount as at 31 December

2023

27,808,697

8,075,975

311,749

36,196,421

*) Purchased or Originated Credit Impaired – POCI

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

31.12.2023

Group

RON thousands

Loss allowance – Loans and advances

to customers at amortized cost (on

balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Of which:

POCI

Financial

Assets*

Total

Loss allowance as at 31 December

2022

(317,295)

(677,225)

(859,417)

(812)

(1,853,937)

Changes in the loss allowance

-Transfer to stage 1

(98,902)

95,754

3,148

-Transfer to stage 2

62,003

(104,008)

42,005

-Transfer to stage 3

3,930

57,107

(61,037)

-Increases due to change in credit risk

(310)

(201,964)

(208,638)

(410,912)

-Decreases due to change in credit

risk

51,064

35,591

1,455

88,110

Write-offs

246,267

-Changes due to modifications of

exposure

82,376

65,697

83,319

812

231,392

New financial assets originated or

purchased

(186,180)

(191,577)

(115,114)

(492,871)

Financial assets that have been

closed

70,063

131,048

88,674

289,785

Foreign exchange and other

movements

(516)

(1,196)

(2,195)

(3,907)

Loss allowance as at 31 December

2023

(333,767)

(790,773)

(781,533)

(1,906,073)

*) Purchased or Originated Credit Impaired – POCI

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements, for Group, in loan commitments, letters of credit and financial guarantees of financial assets

are summarized as follows:

31.12.2024

Group

RON thousands

Loan commitments, letters of credit and financial

guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2023

18,550,593

3,051,274

178,575

21,780,442

Changes in the gross amount

-Transfer to stage 1

1,690,932

(1,689,238)

(1,694)

-Transfer to stage 2

(2,115,026)

2,115,551

(525)

-Transfer to stage 3

(6,829)

(79,613)

86,442

-Changes due to modifications of exposure

(3,926,085)

(437,783)

(66,817)

(4,430,685)

New financial assets originated or purchased

6,448,552

559,022

4,134

7,011,708

Write-offs

(39,872)

(9,447)

(742)

(50,061)

Other changes

19,459

13,702

33,173

Gross amount as at 31 December 2024

20,621,724

3,523,468

199,385

24,344,577

Loss allowance as at 31 December 2024

(22,069)

(46,689)

(86,024)

(154,782)

Carrying amount as at 31 December 2024

20,599,655

3,476,779

113,361

24,189,795

The movements, for Group, in loss allowances for off balance exposures is summarized as follows:

31.12.2024

Group

RON thousands

Loss allowance – Loan commitments, letters of

credit and financial guarantees

Stage 1 12-month

ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2023

(39,930)

(53,648)

(88,689)

(182,267)

Changes in the loss allowance

-Transfer to stage 1

(28,914)

28,669

245

-Transfer to stage 2

4,930

(4,952)

-Transfer to stage 3

3,704

(3,728)

-Increases due to change in credit risk

(326)

(21,047)

(22,910)

(44,283)

-Decreases due to change in credit risk

26,917

1,101

103

28,121

-Changes due to modifications of exposure

22,489

10,098

29,004

61,591

New financial assets originated or purchased

(7,339)

(11,017)

(202)

(18,558)

Write-offs

215

130

404

Foreign exchange and other movements

188

210

Loss allowance as at 31 December 2024

(22,069)

(46,689)

(86,024)

(154,782)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements, for Group, in off balance sheet exposures are summarized as follows:

31.12.2023

Group

RON thousands

Loan commitments, letters of credit and financial

guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2022

16,474,846

3,312,110

235,927

20,022,883

Changes in the gross amount

-Transfer to stage 1

1,244,830

(1,244,524)

(306)

-Transfer to stage 2

(1,463,687)

1,479,126

(15,439)

-Transfer to stage 3

(31,378)

(33,935)

65,313

-Changes due to modifications of exposure

(3,402,922)

(908,604)

1,372

(4,310,154)

New financial assets originated or purchased

5,722,660

450,185

7,748

6,180,593

Write-offs

(22,722)

(7,824)

(116,404)

(146,950)

Other changes

28,967

4,740

364

34,071

Gross amount as at 31 December 2023

18,550,593

3,051,274

178,575

21,780,442

Loss allowance as at 31 December 2023

(39,930)

(53,648)

(88,689)

(182,267)

Carrying amount as at 31 December 2023

18,510,663

2,997,626

89,886

21,598,175

The movements, for Group, in loss allowances for off balance exposures is summarized as follows:

31.12.2023

Group

RON thousands

Loss allowance – Loan commitments, letters of

credit and financial guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2022

(25,832)

(39,533)

(164,322)

(229,687)

Changes in the loss allowance

-Transfer to stage 1

(23,338)

23,271

-Transfer to stage 2

3,508

(12,856)

9,348

-Transfer to stage 3

103

253

(356)

-Increases due to change in credit risk

(87)

(27,873)

(24,897)

(52,857)

-Decreases due to change in credit risk

19,880

8,706

28,659

-Changes due to modifications of exposure

1,586

1,291

9,434

12,311

New financial assets originated or purchased

(15,892)

(7,037)

(2,006)

(24,935)

Write-offs

83,719

83,828

Foreign exchange and other movements

251

414

Loss allowance as at 31 December 2023

(39,930)

(53,648)

(88,689)

(182,267)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below presents, for the Group, the analysis of the movements during the year per class of assets:

31.12.2024

Group

RON thousands

Stage 1 - 12 month ECL

Loans and

advances to

banks

Debt and

equity

investment

securities at

FVTOCI

Debt

instruments

at amortized

cost

Gross amount as at 31 December 2023

142,107

2,027,385

9,651,897

Changes in the gross amount

Changes due to modifications of exposure

(23,503)

7,413

900,269

New financial assets originated or purchased

101,236

661,031

1,226,036

Financial assets that have been closed

(35,058)

(623,033)

(1,175,096)

Other changes

618

1,582

Gross amount as at 31 December 2024

185,400

2,074,378

10,603,106

Loss allowance as at 31 December 2024

(17)

(994)

(6,060)

Carrying amount as at 31 December 2024

185,383

2,073,384

10,597,046

31.12.2024

Group

RON thousands

Stage 1 - 12 month ECL

Loss

allowance –

Loans and

advances to

banks

Loss

allowance –

Debt and

equity

investment

securities at

FVTOCI

Loss

allowance –

Debt

instruments

at amortized

cost

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

Changes in the loss allowance

-Changes due to modifications of exposure

(1,276)

New financial assets originated or purchased

(6)

(171)

(657)

Financial assets that have been closed

556

Foreign exchange and other movements

(3)

Loss allowance as at 31 December 2024

(17)

(994)

(6,060)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below presents, for the Group, the analysis of the movements during the year per class of assets:

31.12.2023

Group

RON thousands Stage 1 - 12 month ECL

Loans and

advances to

banks

Debt and

equity

investment

securities at

FVTOCI

Debt

instruments

at amortized

cost

Gross amount as at 31 December 2022

400,135

1,923,186

8,859,380

Changes in the gross amount

Changes due to modifications of exposure

(108,056)

132,745

(15,426)

New financial assets originated or purchased

992

414,919

2,161,794

Financial assets that have been closed

(151,177)

(445,810)

(1,353,851)

Other changes

213

2,345

Gross amount as at 31 December 2023

142,107

2,027,385

9,651,897

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

Carrying amount as at 31 December 2023

142,096

2,026,525

9,647,214

31.12.2023

Group

RON thousands Stage 1 - 12 month ECL

Loss

allowance –

Loans and

advances to

banks

Loss

allowance –

Debt and

equity

investment

securities at

FVTOCI

Loss

allowance –

Debt

instruments

at amortized

cost

Loss allowance as at 31 December 2022

(680)

(668)

(2,414)

Changes in the loss allowance

-Decreases due to change in credit risk

-Changes due to modifications of exposure

(1,399)

New financial assets originated or purchased

(282)

(1,138)

Financial assets that have been closed

632

268

Foreign exchange and other movements

(1)

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements of on balance exposures of the Bank’s financial assets are summarized as follows:

31.12.2024

Bank

RON thousands Loans and advances to customers

at amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime

ECL

Stage 3 -

Lifetime

ECL

Total

Gross amount as at 31 December 2023

26,529,406

7,974,395

979,084

35,482,885

Changes in the gross amount

-Transfer to stage 1

2,823,623

(2,801,809)

(21,814)

-Transfer to stage 2

(2,610,661)

2,623,549

(12,888)

-Transfer to stage 3

(316,842)

(272,332)

589,174

-Changes due to modifications of exposure

(722,113)

(353,366)

(142,332)

(1,217,811)

New financial assets originated or purchased

10,285,216

1,234,207

46,463

11,565,886

Financial assets that have been closed

(4,378,779)

(1,218,594)

(153,484)

(5,750,857)

Write-offs

(39,032)

Other changes

18,955

5,883

24,877

Gross amount as at 31 December 2024

31,628,805

7,191,933

1,245,210

40,065,948

Loss allowance as at 31 December 2024

(253,571)

(581,525)

(868,469)

(1,703,565)

Carrying amount as at 31 December 2024

31,375,234

6,610,408

376,741

38,362,383

The movements, for Bank, in loss allowances of financial assets are summarized as follows:

31.12.2024

Bank

RON thousands Loss allowance – Loans and

advances to customers at amortized cost (on

balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2023

(242,850)

(645,497)

(702,086)

(1,590,433)

Changes in the loss allowance

-Transfer to stage 1

(196,481)

180,499

15,982

-Transfer to stage 2

33,996

(41,162)

7,166

-Transfer to stage 3

9,283

34,427

(43,710)

-Increases due to change in credit risk

(1,830)

(137,631)

(299,286)

(438,747)

-Decreases due to change in credit risk

165,810

7,260

507

173,577

Write-offs

39,032

-Changes due to modifications of exposure

24,630

6,282

49,721

80,633

New financial assets originated or purchased

(95,116)

(87,268)

(30,764)

(213,148)

Financial assets that have been closed

49,010

101,674

95,015

245,699

Foreign exchange and other movements

(23)

(109)

(46)

(178)

Loss allowance as at 31 December 2024

(253,571)

(581,525)

(868,469)

(1,703,565)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

100

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

31.12.2023

Bank

RON thousands

Loans and advances to customers at

amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Of which:

POCI

Financial

Assets*

Total

Gross amount as at 31 December

2022

25,188,398

6,403,296

1,042,083

9,161

32,633,777

Changes in the gross amount

-Transfer to stage 1

713,363

(709,939)

(3,424)

-Transfer to stage 2

(3,715,358)

3,768,891

(53,533)

-Transfer to stage 3

(158,267)

(259,098)

417,365

-Changes due to modifications of

exposure

(594,265)

(595,793)

(182,129)

(9,161)

(1,372,187)

New financial assets originated or

purchased

10,247,570

1,127,550

143,176

11,518,296

Financial assets that have been

closed

(5,203,544)

(1,777,073)

(141,109)

(7,121,726)

Write-offs

(246,281)

Other changes

51,509

16,561

2,936

71,006

Gross amount as at 31 December

2023

26,529,406

7,974,395

979,084

35,482,885

Loss allowance as at 31 December

2023

(242,850)

(645,497)

(702,086)

(1,590,433)

Carrying amount as at 31 December

2023

26,286,556

7,328,898

276,998

33,892,452

*) Purchased or Originated Credit Impaired – POCI

The movements, for Bank, in loss allowances of financial assets are summarized as follows:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

101

31.12.2023

Bank

RON thousands Loss allowance –

Loans and advances to customers at

amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Of which:

POCI

Financial

Assets*

Total

Loss allowance as at 31 December

2022

(248,052)

(542,730)

(788,451)

(812)

(1,579,233)

Changes in the loss allowance

-Transfer to stage 1

(56,500)

54,371

2,129

-Transfer to stage 2

53,565

(93,264)

39,699

-Transfer to stage 3

3,156

41,339

(44,495)

-Increases due to change in credit risk

(40)

(201,930)

(200,094)

(402,064)

-Decreases due to change in credit

risk

50,037

35,525

1,455

87,017

Write-offs

246,267

-Changes due to modifications of

exposure

24,000

60,922

86,785

812

171,707

New financial assets originated or

purchased

(119,956)

(96,481)

(103,174)

(319,611)

Financial assets that have been

closed

51,458

97,948

59,992

209,398

Foreign exchange and other

movements

(518)

(1,197)

(2,199)

(3,914)

Loss allowance as at 31 December

2023

(242,850)

(645,497)

(702,086)

(1,590,433)

*) Purchased or Originated Credit Impaired – POCI

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

102

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements, for Bank, in loan commitments, letters of credit and financial guarantees of financial assets

are summarized as follows:

31.12.2024

Bank

RON thousands

Loan commitments, letters of credit and financial

guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2023

17,927,629

2,987,223

176,719

21,091,571

Changes in the gross amount

-Transfer to stage 1

1,653,385

(1,652,068)

(1,317)

-Transfer to stage 2

(2,093,412)

2,093,786

(374)

-Transfer to stage 3

(6,221)

(79,069)

85,290

-Changes due to modifications of exposure

(3,522,917)

(435,385)

(67,124)

(4,025,426)

New financial assets originated or purchased

6,336,280

553,697

3,935

6,893,912

Other changes

19,459

13,702

33,173

Gross amount as at 31 December 2024

20,314,203

3,481,886

197,141

23,993,230

Loss allowance as at 31 December 2024

(21,426)

(46,306)

(111,314)

(179,046)

Carrying amount as at 31 December 2024

20,292,777

3,435,580

85,827

23,814,184

The movements, for Bank, in loss allowances for off balance exposures is summarized as follows:

31.12.2024

Bank

RON thousands Loss allowance – Loan

commitments, letters of credit and financial

guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2023

(40,009)

(52,927)

(114,699)

(207,635)

Changes in the loss allowance

-Transfer to stage 1

(28,451)

28,246

205

-Transfer to stage 2

4,905

(4,911)

-Transfer to stage 3

3,685

(3,708)

-Increases due to change in credit risk

(173)

(21,047)

(22,910)

(44,130)

-Decreases due to change in credit risk

26,808

1,101

103

28,012

-Changes due to modifications of exposure

22,553

10,225

29,871

62,649

New financial assets originated or purchased

(7,103)

(10,866)

(183)

(18,152)

Foreign exchange and other movements

188

210

Loss allowance as at 31 December 2024

(21,426)

(46,306)

(111,314)

(179,046)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

103

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements, for Bank, in loan commitments, letters of credit and financial guarantees of financial assets

are summarized as follows:

31.12.2023

Bank

RON thousands Loan commitments, letters

of credit and financial guarantees

Stage 1 12-month

ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2022

15,959,999

3,224,433

233,799

19,418,231

Changes in the gross amount

-Transfer to stage 1

1,200,183

(1,200,183)

-Transfer to stage 2

(1,452,316)

1,467,409

(15,093)

-Transfer to stage 3

(30,910)

(33,525)

64,435

-Changes due to modifications of exposure

(3,414,245)

(908,815)

694

(4,322,366)

New financial assets originated or purchased

5,635,951

433,164

7,588

6,076,703

Write-offs

(115,068)

Other changes

28,967

4,740

364

34,071

Gross amount as at 31 December 2023

17,927,629

2,987,223

176,719

21,091,571

Loss allowance as at 31 December 2023

(40,009)

(52,927)

(114,699)

(207,635)

Carrying amount as at 31 December 2023

17,887,620

2,934,296

62,020

20,883,936

The movements, for Bank, in loss allowances for off balance exposures is summarized as follows:

31.12.2023

Bank

RON thousands Loss allowance – Loan

commitments, letters of credit and financial

guarantees

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Loss allowance as at 31 December 2022

(25,046)

(44,686)

(163,671)

(233,403)

Changes in the loss allowance

-Transfer to stage 1

(23,185)

23,185

-Transfer to stage 2

3,492

(12,762)

9,270

-Transfer to stage 3

102

5,653

(5,755)

-Increases due to change in credit risk

(87)

(27,829)

(45,767)

(73,683)

-Decreases due to change in credit risk

19,872

8,706

28,651

-Changes due to modifications of exposure

1,438

1,317

9,519

12,274

New financial assets originated or purchased

(16,686)

(6,583)

(1,991)

(25,260)

Write-offs

83,372

Foreign exchange and other movements

251

414

Loss allowance as at 31 December 2023

(40,009)

(52,927)

(114,699)

(207,635)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

104

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below presents, for the Bank, the analysis of the movements during the year per class of assets:

31.12.2024

Bank

RON thousands Stage 1 - 12 month ECL

Loans and

advances to banks

Debt and equity

investment

securities at

FVTOCI

Debt instruments

at amortized cost

Gross amount as at 31 December 2023

142,107

2,017,620

9,651,897

Changes in the gross amount

Changes due to modifications of exposure

(23,503)

4,893

900,269

New financial assets originated or purchased

101,236

661,031

1,226,036

Financial assets that have been closed

(35,058)

(623,033)

(1,175,096)

Other changes

618

1,582

Gross amount as at 31 December 2024

185,400

2,062,093

10,603,106

Loss allowance as at 31 December 2024

(17)

(994)

(6,060)

Carrying amount as at 31 December 2024

185,383

2,061,099

10,597,046

31.12.2024

Bank

RON thousands Stage 1 - 12 month ECL

Loss allowance – Loans

and advances to banks

Loss allowance – Debt

and equity investment

securities at FVTOCI

Loss allowance –

Debt instruments

at amortized cost

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

Changes in the loss allowance

-Changes due to modifications of exposure

(1,276)

New financial assets originated or

purchased

(6)

(171)

(657)

Financial assets that have been closed

556

Foreign exchange and other movements

(3)

Loss allowance as at 31 December 2024

(17)

(994)

(6,060)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

105

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The tables below presents, for the Bank, the analysis of the movements during the year per class of assets:

31.12.2023

Bank

RON thousands Stage 1 - 12 month ECL

Loans and

advances to banks

Debt and equity investment

securities at FVTOCI

Debt

instruments

at amortized

cost

Gross amount as at 31 December 2022

400,135

1,920,840

8,859,380

Changes in the gross amount

Changes due to modifications of exposure

(108,056)

125,326

(15,426)

New financial assets originated or

purchased

992

414,919

2,161,794

Financial assets that have been closed

(151,177)

(445,810)

(1,353,851)

Other changes

213

2,345

Gross amount as at 31 December 2023

142,107

2,017,620

9,651,897

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

Carrying amount as at 31 December 2023

142,096

2,016,760

9,647,214

31.12.2023

Bank

RON thousands Stage 1 - 12 month ECL

Loss allowance –

Loans and advances

to banks

Loss allowance – Debt

and equity investment

securities at FVTOCI

Loss allowance –

Debt instruments

at amortized cost

Loss allowance as at 31 December 2022

(680)

(668)

(2,414)

Changes in the loss allowance

-Decreases due to change in credit risk

-Changes due to modifications of exposure

(1,399)

New financial assets originated or

purchased

(282)

(1,138)

Financial assets that have been closed

632

268

Foreign exchange and other movements

(1)

Loss allowance as at 31 December 2023

(12)

(860)

(4,683)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

106

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements of on balance exposures for the lease receivables are summarized as follows:

31.12.2024

UCLC (UniCredit Leasing Corporation)

RON thousands Loans and advances to customers at

amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime

ECL

Stage 3 -

Lifetime

ECL

Total

Gross amount as at 31 December 2023

4,089,095

287,854

247,980

4,624,929

Changes in the gross amount

-Transfer to stage 1

58,153

(56,224)

(1,929)

-Transfer to stage 2

(338,382)

344,128

(5,746)

-Transfer to stage 3

(92,746)

(63,393)

156,139

-Changes due to modifications of exposure

(952,755)

(124,595)

(81,568)

(1,158,918)

New financial assets originated or purchased

2,217,658

214,505

43,083

2,475,246

Financial assets that have been closed

(464,323)

(18,753)

(18,944)

(502,020)

Write-offs

(17,826)

Gross amount as at 31 December 2024

4,516,700

583,522

321,189

5,421,411

Loss allowance as at 31 December 2024

(124,460)

(32,800)

(174,782)

(332,042)

Carrying amount as at 31 December 2024

4,392,240

550,722

146,407

5,089,369

The movements in loss allowances for on balance exposures for the lease receivables are summarized as

follows:

31.12.2024

UCLC (UniCredit Leasing Corporation)

RON thousands Loss allowance – Loans and

advances to customers at amortized cost (on

balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Loss allowance as at 31 December 2023

(111,201)

(34,098)

(173,934)

(319,233)

Changes in the loss allowance

-Transfer to stage 1

(4,807)

4,080

727

-Transfer to stage 2

8,227

(11,338)

3,111

-Transfer to stage 3

3,669

3,199

(6,868)

-Increases due to change in credit risk

(34)

(3,419)

(36,559)

(40,012)

-Decreases due to change in credit risk

3,011

5,325

8,385

Write-offs

17,826

-Changes due to modifications of exposure

28,696

12,435

11,762

52,893

New financial assets originated or purchased

(60,796)

(10,509)

(17,386)

(88,691)

Financial assets that have been closed

8,764

1,522

26,475

36,761

Foreign exchange and other movements

Loss allowance as at 31 December 2024

(124,460)

(32,800)

(174,782)

(332,042)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

107

4. RISK MANAGEMENT (continued)

c) Credit risk (continued)

(ii) Exposure to credit risk (continued)

The movements of on balance exposures for the lease receivables are summarized as follows:

31.12.2023

UCLC (Unicredit Leasing Corporation)

RON thousands Loans and advances to customers

at amortized cost (on balance)

Stage 1 12-

month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime ECL

Total

Gross amount as at 31 December 2022

3,328,331

481,910

270,024

4,080,265

Changes in the gross amount

-Transfer to stage 1

291,517

(288,722)

(2,795)

-Transfer to stage 2

(138,306)

188,707

(50,401)

-Transfer to stage 3

(36,711)

(57,207)

93,918

-Changes due to modifications of exposure

(821,477)

(54,645)

(47,740)

(923,862)

New financial assets originated or purchased

1,833,033

66,222

14,107

1,913,362

Financial assets that have been closed

(367,292)

(48,411)

(21,060)

(436,763)

Write-offs

(8,073)

Gross amount as at 31 December 2023

4,089,095

287,854

247,980

4,624,929

Loss allowance as at 31 December 2023

(111,201)

(34,098)

(173,934)

(319,233)

Carrying amount as at 31 December 2023

3,977,894

253,756

74,046

4,305,696

The movements in loss allowances for on balance exposures for the lease receivables are summarized as

follows:

31.12.2023

UCLC (Unicredit Leasing Corporation)

RON thousands Loss allowance – Loans

and advances to customers at amortized

cost (on balance)

Stage 1 12-month ECL

Stage 2 -

Lifetime ECL

Stage 3 -

Lifetime

ECL

Total

Loss allowance as at 31 December 2022

(76,458)

(29,225)

(185,889)

(291,572)

Changes in the loss allowance

-Transfer to stage 1

(13,427)

12,663

764

-Transfer to stage 2

2,329

(37,069)

34,740

-Transfer to stage 3

446

6,314

(6,760)

-Increases due to change in credit risk

(211)

(3,075)

(44,884)

(48,170)

-Decreases due to change in credit risk

9,541

21,701

31,243

Write-offs

8,073

-Changes due to modifications of

exposure

5,069

1,632

14,695

21,396

New financial assets originated or

purchased

(46,603)

(8,103)

(6,582)

(61,288)

Financial assets that have been closed

8,102

1,061

11,882

21,045

Foreign exchange and other movements

Loss allowance as at 31 December 2023

(111,201)

(34,098)

(173,934)

(319,233)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

108

4. RISK MANAGEMENT (continued)

d) Liquidity risk

The liquidity risk is the probability of the bank falling short of its due payments resulting from its contractual

relations with clients and third parties. Under normal conditions of market functioning, the liquidity risk may

materialize also through the need for the bank to pay a premium over market rates to be able to access

liquidity. Among the main potential generators of liquidity risk are liquidity mismatch risk, liquidity contingency

risk, market liquidity risk.

In line with the UniCredit parent Group’s liquidity framework, the main goal of the Bank’s overall liquidity

management is to keep the liquidity exposure at such a level that the bank is able to honor its payment

obligations on an on-going basis, but also during a crisis without jeopardizing its franchise value or its brand’s

name.

The main goal of the Bank’s overall liquidity management is to keep the liquidity exposure at such a level that

the bank is able to honor its payment obligations on an on-going basis, but also during a crisis without

jeopardizing its franchise value or its brand’s name, being in line with the UniCredit parent Group’s liquidity

framework

Hence, two main operating models for the liquidity management are defined: Going Concern Liquidity

Management and the Contingent Liquidity Management.

From a liquidity risk governance perspective, the Bank keeps two layers of Managing Bodies acting as strategic

decision taking functions and Operational units acting as operative liquidity management functions, i.e. ALM &

Funding, Financial Risk and Treasury, respectively.

The short-term liquidity management of the Bank aims to maintain a sustainable equilibrium between cash

inflows and cash outflows representing the fundamental condition for the purpose of assuring the normal

operational continuity of the banking business.

In accordance with the strategic goal of self-sufficient funding, Bank’s medium and long term funding strategy

is centered on a well-diversified funding base by:

• encouraging sticky client deposits;

• development of strategic funding through own bonds issues and supranational funding.

The liquidity cost benefit allocation is an important part of the liquidity management framework. Liquidity is a

scarce resource and accordingly a proper management of costs and benefits is essential in order to support

sound and sustainable business models. Therefore, the Bank has put in place proper funds transfer pricing

mechanism.

Key measures used by the Group for measuring liquidity risk are:

• the daily short-term liquidity report, through which cash inflows and outflows mainly coming from inter-

bank transactions are monitored;

• the structural liquidity ratios/gaps, used to assess the proportion of medium-long term assets sustained

with stable funding;

• regulatory indicators: the Bank has to comply with the limits imposed by National Bank of Romania, such

as the liquidity indicator calculated according to NBR Regulation no. 25/2011, Liquidity coverage ratio, Net

stable funding ratio, Additional liquidity monitoring metrics;

• other key indicators for the management of liquidity and funding needs used to assess the liquid assets,

the concentration of funding, the way in which loans to customers are financed by commercial funding.

The Group sets the limit and triggers levels for the main indicators used to measure the liquidity risk and in

case a breach is observed or anticipated, specific requested actions are taken for correcting the structure of

the asset and liability mix of the Group.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

109

A regular stress testing assessment is done in order to evaluate the liquidity position of the Group. In case of a

deteriorating position, liquidity stress tests are one of the main metrics in order to support management’s

decisions before and also during stress situations. In particular, liquidity stress test results are useful in order

assess the “right” sizing and composition of a liquidity buffer on a regular basis. As such, liquidity stress testing

serves as an essential tool of assessment of the liquidity risk in an on-going basis, rather than in a crisis situation

only.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

110

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

An analysis of financial assets and liabilities of the Group as at 31 December 2024 presented at carrying amount by residual contractual maturity at the reporting

date is presented below:

31.12.2024

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

19,510,086

Financial assets at fair value through profit or loss

29,967

13,412

29,247

44,818

8,775

126,219

Derivatives assets designated as hedging instruments

50,516

5,240

19,938

89,906

165,600

Loans and advances to banks

131,413

53,970

185,383

Loans and advances to customers

3,932,634

13,162,321

14,987,457

9,412,701

41,495,113

Net Lease receivables

122,875

1,300,145

3,467,829

198,520

5,089,369

Debt instruments at amortized cost

36,465

1,068,328

4,585,850

4,906,403

10,597,046

Financial assets at fair value through other comprehensive

income

87,529

469,917

1,231,182

244,048

40,708

2,073,384

Other financial assets

525,865

356

32,302

558,523

Total financial assets

24,427,350

16,073,689

24,353,805

14,896,396

49,483

79,800,723

Financial liabilities at fair value through profit or loss

3,189

4,017

30,604

13,074

50,884

Derivatives liabilities designated as hedging instruments

7,127

47,209

103,906

158,242

Deposits from banks

1,384,717

160,736

236,654

1,782,107

Loans from banks and other financial institutions, including

subordinated liabilities

665,231

2,949,012

5,728,670

33,540

9,376,453

Debt securities issued

20,227

4,305,032

1,435,028

5,760,287

Deposits from customers

46,945,339

5,055,036

105,657

52,106,032

Other financial liabilities

1,250,377

645

118

1,251,140

Leasing Liabilities

20,470

37,299

123,840

23,465

205,074

Total financial liabilities

50,276,450

8,226,972

10,577,784

1,609,013

70,690,219

Liquidity surplus/ (shortfall)

(25,849,100)

7,846,717

13,776,021

13,287,383

49,483

9,110,504

Adjustment for investment securities available for

refinancing*

1,945,147

(469,917)

(1,231,182)

(244,048)

Liquidity surplus/ (shortfall) adjusted**

)

(23,903,953)

7,376,800

12,544,839

13,043,335

49,483

9,110,504

)

As part of its liquidity management the Group holds treasury bills and bonds which can easily be converted into cash in case of increasing liquidity risk. Also, most of these securities are available for

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

111

refinancing in order to ensure quick access to funds.

)

Moreover, following the historical analyzes carried out regarding current accounts and deposits attracted from customers with maturity up to three months, the Bank concluded that these exposures

tend to be extended and represent a stable source of financing for the bank, not being repaid according to the contractual due dates.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

112

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

31.12.2024

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Gross nominal

flow

Commitments

Irrevocable commitments given outflow

(4,814,783)

Issued financial guarantees outflow

(8,724,198)

Commitments surplus/ (shortfall)

(13,538,981)

The table disclosed above shows the discounted cash flows of the Group, including financial guarantee contracts, and unrecognized loan commitments on the basis

of their earliest possible contractual maturity.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

113

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

An analysis of financial assets and liabilities of the Group as at 31 December 2023 presented at carrying amount by residual contractual maturity at the reporting

date is presented below:

31.12.2023

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

20,106,053

Financial assets at fair value through profit or loss

18,881

3,106

16,063

44,839

14,823

97,712

Derivatives assets designated as hedging instruments

86,864

6,976

60,009

88,711

242,560

Loans and advances to banks

4,269

56,402

81,425

142,096

Loans and advances to customers

3,827,158

11,322,085

13,079,957

7,967,221

36,196,421

Net Lease receivables

81,069

1,128,707

2,943,557

152,363

4,305,696

Debt instruments at amortized cost

4,355,378

5,291,836

9,647,214

Financial assets at fair value through other comprehensive

income

332,925

1,088,830

575,446

29,324

2,026,525

Other financial assets

532,579

25,678

558,257

Total financial assets

24,989,798

12,517,276

21,650,897

14,120,416

44,147

73,322,534

Financial liabilities at fair value through profit or loss

32,118

17,570

24,828

45,737

120,253

Derivatives liabilities designated as hedging instruments

16,448

758

20,732

164,466

202,404

Deposits from banks

661,939

579,043

1,240,982

Loans from banks, including subordinated liabilities

237,009

2,850,015

4,226,408

45,314

7,358,746

Debt securities issued

3,761,028

241,268

4,002,296

Deposits from customers

45,354,545

5,221,316

379,451

50,955,312

Other financial liabilities

1,183,864

429

745

1,185,038

Leasing Liabilities

19,977

53,811

140,736

41,279

255,803

Total financial liabilities

47,505,900

8,143,899

9,132,971

538,064

65,320,834

Liquidity surplus/ (shortfall)

(22,516,102)

4,373,377

12,517,926

13,582,352

44,147

8,001,700

Adjustment for investment securities available for

refinancing*

1,664,276

(1,088,830)

(575,446)

Liquidity surplus/ (shortfall) adjusted**

)

(20,851,826)

4,373,377

11,429,096

13,006,906

44,147

8,001,700

*) As part of its liquidity management the Group holds treasury bills and bonds which can easily be converted into cash in case of increasing liquidity risk. Also, most of these securities are available for

refinancing in order to ensure quick access to funds.

)

Moreover, following the historical analyzes carried out regarding current accounts and deposits attracted from customers with maturity up to three months, the Bank concluded that these exposures

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

114

tend to be extended and represent a stable source of financing for the bank, not being repaid according to the contractual due dates.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

115

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

31.12.2023

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Gross nominal

flow

Commitments

Irrevocable commitments given outflow

(4,076,213)

Issued financial guarantees outflow

(8,087,724)

Commitments surplus/ (shortfall)

(12,163,937)

The table disclosed above shows the discounted cash flows of the Group, including financial guarantee contracts, and unrecognized loan commitments on the basis

of their earliest possible contractual maturity.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

116

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

An analysis of financial assets and liabilities of the Bank as at 31 December 2024 presented at carrying amount by residual contractual maturity at the reporting

date is presented below:

31.12.2024

Bank

In RON thousands

Up to 3 months

3 months to 1 year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

19,509,849

Financial assets at fair value through profit or loss

29,967

13,412

29,247

44,818

8,775

126,219

Derivatives assets designated as hedging instruments

50,516

5,240

19,938

89,906

165,600

Loans and advances to banks

131,413

53,970

185,383

Loans and advances to customers

3,750,461

12,016,986

13,084,624

9,510,312

38,362,383

Net Lease receivables

887

909

447

2,243

Debt instruments at amortized cost

36,465

1,068,328

4,585,850

4,906,403

10,597,046

Financial assets at fair value through other comprehensive

income

87,529

469,917

1,231,182

244,048

28,423

2,061,099

Other financial assets

487,910

Total financial assets

24,084,997

13,628,762

18,951,288

14,795,487

37,198

71,497,732

Financial liabilities at fair value through profit or loss

3,189

4,017

30,604

13,074

50,884

Derivatives liabilities designated as hedging instruments

7,127

47,209

103,906

158,242

Deposits from banks

1,384,717

160,736

236,654

1,782,107

Loans from banks and other financial institutions, including

subordinated liabilities

76,717

311,452

1,186,259

1,574,428

Debt securities issued

20,227

4,305,032

1,435,028

5,760,287

Deposits from customers

47,579,523

5,055,036

105,657

52,740,216

Other financial liabilities

1,137,670

Leasing Liabilities

19,626

35,375

121,742

23,465

200,208

Total financial liabilities

50,208,569

5,586,843

6,033,157

1,575,473

63,404,042

Liquidity surplus/ (shortfall)

(26,123,572)

8,041,919

12,918,131

13,220,014

37,198

8,093,690

Adjustment for investment securities available for

refinancing*

1,945,147

(469,917)

(1,231,182)

(244,048)

Liquidity surplus/ (shortfall) adjusted**

)

(24,178,425)

7,572,002

11,686,949

12,975,966

37,198

8,093,690

*) As part of its liquidity management the Bank holds treasury bills and bonds which can easily be converted into cash in case of increasing liquidity risk. Also, most of these securities are available for

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

117

refinancing in order to ensure quick access to funds.

)

Moreover, following the historical analyzes carried out regarding current accounts and deposits attracted from customers with maturity up to three months, the Bank concluded that these exposures

tend to be extended and represent a stable source of financing for the bank, not being repaid according to the contractual due dates.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

118

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

31.12.2024

Bank

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Gross nominal

flow

Commitments

Irrevocable commitments given outflow

(4,814,783)

Issued financial guarantees outflow

(8,724,198)

Commitments surplus/ (shortfall)

(13,538,981)

The table disclosed above shows the discounted cash flows of the Group, including financial guarantee contracts, and unrecognized loan commitments on the basis

of their earliest possible contractual maturity.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

119

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

An analysis of financial assets and liabilities of the Bank as at 31 December 2023 presented at carrying amount by residual contractual maturity at the reporting

date is presented below:

31.12.2023

Bank

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

20,105,745

Financial assets at fair value through profit or loss

18,881

3,106

16,063

44,839

14,823

97,712

Derivatives assets designated as hedging instruments

86,864

6,976

60,009

88,711

242,560

Loans and advances to banks

4,269

56,402

81,425

142,096

Loans and advances to customers

3,722,039

10,051,972

12,049,021

8,069,420

33,892,452

Net Lease receivables

1,465

3,439

2,396

7,300

Debt instruments at amortized cost

4,355,378

5,291,836

9,647,214

Financial assets at fair value through other comprehensive

income

332,925

1,088,830

575,446

19,559

2,016,760

Other financial assets

497,953

Total financial assets

24,770,141

10,121,895

17,653,122

14,070,252

34,382

66,649,792

Financial liabilities at fair value through profit or loss

32,118

17,570

24,828

45,737

120,253

Derivatives liabilities designated as hedging instruments

16,448

758

20,732

164,466

202,404

Deposits from banks

661,939

579,043

1,240,982

Loans from banks, including subordinated liabilities

79,406

126,201

1,221,991

1,427,598

Debt securities issued

3,761,028

241,268

4,002,296

Deposits from customers

45,701,830

5,204,216

96,521

51,002,566

Other financial liabilities

1,149,294

Leasing Liabilities

19,419

51,341

138,375

41,279

250,414

Total financial liabilities

47,660,454

5,400,086

5,842,518

492,750

59,395,807

Liquidity surplus/ (shortfall)

(22,890,313)

4,721,809

11,810,604

13,577,502

34,382

7,253,985

Adjustment for investment securities available for

refinancing*

)

1,664,276

(1,088,830)

(575,446)

Liquidity surplus/ (shortfall) adjusted**

)

(21,226,037)

4,721,809

10,721,774

13,002,056

34,382

7,253,985

refinancing in order to ensure quick access to funds.

)

Moreover, following the historical analyzes carried out regarding current accounts and deposits attracted from customers with maturity up to three months, the Bank concluded that these exposures

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

120

tend to be extended and represent a stable source of financing for the bank, not being repaid according to the contractual due dates.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

121

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

31.12.2023

Bank

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Gross nominal

flow

Commitments

Irrevocable commitments given outflow

(4,116,510)

Issued financial guarantees outflow

(8,088,152)

Commitments surplus/ (shortfall)

(12,204,662)

The table disclosed above shows the discounted cash flows of the Group, including financial guarantee contracts, and unrecognized loan commitments on the basis

of their earliest possible contractual maturity.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

122

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

Future cash flows of financial liabilities

The maturity profile of the Group’s financial liabilities at 31 December 2024 and 31 December 2023 which is based on contractual undiscounted future payments

are listed below:

31.12.2024

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

Total

contractual

amount

Financial liabilities at fair value through profit or loss

996,552

829,736

65,603

28,407

1,920,298

Derivatives liabilities designated as hedging instruments

879

9,518

15,434

25,831

Deposits from banks

1,387,457

173,349

243,269

1,804,075

Loans from banks and other financial institutions, including subordinated

liabilities

763,325

3,273,787

6,303,736

34,409

10,375,257

Deposits from customers

46,992,778

5,166,718

114,942

52,274,438

Debt securities issued

59,126

365,720

5,561,643

1,570,153

7,556,642

Other financial liabilities

1,250,377

645

118

1,251,140

Leasing Liabilities

20,476

37,311

123,844

23,465

205,096

Total financial liabilities

51,470,970

9,847,266

12,422,673

1,671,868

75,412,777

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

123

31.12.2023

Group

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

Total

contractual

amount

Financial liabilities at fair value through profit or loss

1,079,200

32,723

7,537

9,301

1,128,761

Derivatives liabilities designated as hedging instruments

1,220

10,855

12,082

Deposits from banks

666,197

21,445

608,008

1,295,650

Loans from banks and other financial institutions, including subordinated

liabilities

356,359

3,180,399

4,885,855

47,013

8,469,626

Deposits from customers

45,423,471

5,378,962

422,770

51,225,203

Debt securities issued

50,782

272,856

4,886,427

366,028

5,576,093

Other financial liabilities

1,183,864

429

745

1,185,038

Leasing Liabilities

19,977

53,811

140,736

41,279

255,803

Total financial liabilities

48,781,070

8,940,632

10,962,933

463,621

69,148,256

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

Future cash flows of financial liabilities (continued)

Maturity profile of financial liabilities at 31 December 2024 and 31 December 2023 which is based on contractual undiscounted future payments are listed below:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

124

31.12.2024

Bank

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

Total

contractual

amount

Financial liabilities at fair value through profit or loss

996,552

829,736

65,603

28,407

1,920,298

Derivatives liabilities designated as hedging instruments

879

9,518

15,434

25,831

Deposits from banks

1,387,457

173,349

243,269

1,804,075

Loans from banks and other financial institutions, including subordinated

liabilities

90,876

382,479

1,376,691

1,850,046

Deposits from customers

47,626,961

5,166,718

114,942

52,908,621

Debt securities issued

59,126

365,720

5,561,643

1,570,153

7,556,642

Other financial liabilities

1,137,670

Leasing Liabilities

19,626

35,375

121,742

23,465

200,208

Total financial liabilities

51,319,147

6,953,377

7,493,408

1,637,459

67,403,391

31.12.2023

Bank

In RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

Total

contractual

amount

Financial liabilities at fair value through profit or loss

1,079,200

32,723

7,537

9,301

1,128,761

Derivatives liabilities designated as hedging instruments

1,220

10,855

12,082

Deposits from banks

666,197

21,445

608,008

1,295,650

Loans from banks and other financial institutions, including subordinated

liabilities

97,219

198,195

1,443,078

1,738,492

Deposits from customers

45,767,983

5,349,285

110,467

51,227,735

Debt securities issued

50,782

272,856

4,886,427

366,028

5,576,093

Other financial liabilities

1,149,294

Leasing Liabilities

19,419

51,341

138,375

41,279

250,414

Total financial liabilities

48,831,314

5,925,852

7,204,747

416,608

62,378,521

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

125

4. RISK MANAGEMENT (continued)

d) Liquidity risk (continued)

An analysis of notional amounts of the Group’s and the Bank’s derivative financial assets/liabilities by residual contractual maturity at the reporting date is presented

below:

31.12.2024

Group/ Bank

In RON thousands

Carrying amount

Gross nominal

inflow /(outflow)

Less than 1

month

1 to 3 Months

3 months to 1

year

1-5 years

Over 5 years

Derivative assets

84,553

87,815

16,610

17,713

28,780

19,561

5,151

Outflow

291,819

(3,735,593)

(852,415)

(1,214,445)

(1,585,923)

(52,637)

(30,173)

Inflow

207,266

3,823,408

869,025

1,232,158

1,614,703

72,198

35,324

Derivative liabilities

(209,126)

(42,628)

(1,722)

(3,052)

12,818

(31,446)

(19,226)

Outflow

(50,884)

(1,946,128)

(560,090)

(437,340)

(829,736)

(75,121)

(43,841)

Inflow

(158,242)

1,903,500

558,368

434,288

842,554

43,675

24,615

31.12.2023

Group/ Bank

In RON thousands

Carrying amount

Gross nominal

inflow /(outflow)

Less than 1 month

1 to 3 Months

3 months to 1

year

1-5 years

Over 5 years

Derivative assets

76,982

78,450

2,756

13,729

5,610

12,162

44,193

Outflow

340,272

(2,545,215)

(774,097)

(1,309,862)

(440,134)

(12,328)

(8,794)

Inflow

263,290

2,623,665

776,853

1,323,591

445,744

24,490

52,987

Derivative liabilities

(322,657)

(78,364)

(900)

(9,996)

(2,243)

(19,181)

(46,044)

Outflow

(120,253)

(1,140,843)

(240,301)

(840,119)

(32,730)

(18,392)

(9,301)

Inflow

(202,404)

1,062,479

239,401

830,123

30,487

(789)

(36,743)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

126

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

127

4. RISK MANAGEMENT (continued)

e) Market risk

Market risk is the risk that changes in market prices, such as interest rate, equity prices, foreign exchange rates

and credit spreads (not relating to changes in the obligor’s/ issuer’s credit standing) will affect the Group’s

income or the value of its holdings of financial instruments. The objective of market risk management is to

manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

Management of Market Risk

Organizational structure

The Supervisory Board lays down strategic guidelines for taking on market risks by calculating, depending on

the propensity to risk and objectives of value creation in proportion to risks assumed, capital allocation for all

business segments, in compliance with UniCredit Group strategies.

The Risk Management Committee provides advice and recommendations in respect of decisions taken by the

Chief Executive Officer and in drawing up proposals made by the Chief Executive Officer to the Directorate or

the Supervisory Board with regards to the following:

• guidance as to the methods to be used to realize models for the measurement and monitoring of Group

risks;

• the Group’s risk policies (identification of risk, analysis of the level of propensity to risk, definition of

capital allocation objectives and the limits for each type of risk, assignment of related functional

responsibilities to the relevant departments and divisions);

• corrective action aimed at rebalancing the Group’s risk positions.

The overall authority for market risk is delegated towards Financial Risk Committee. The Market Risk unit

ensures the measurement and monitoring of risks assumed in accordance with the guidelines set out by

UniCredit Group.

Asset and Liability Management (“Finance”) unit, in coordination with Markets Trading manages strategic and

operational Balance sheet management, with the objective of ensuring a balanced asset position and the

operating and financial sustainability of the Group’s growth policies on the loans market, optimizing the

Group’s exchange rate, interest rate and liquidity risk.

The Group separates its exposure to market risk between trading and non-trading portfolios. Trading portfolio

is held by Markets Trading unit, and includes positions arising from market making and proprietary position

taking, together with most financial assets that are managed on a fair value basis. Also, all foreign exchange

risk is transferred and sold down by Assets and Liability Management to the Markets Trading unit. Accordingly,

the foreign exchange position is treated as part of the Group’s trading portfolios for risk management purposes.

Exposure to market risk – Value at Risk Tool

The main tool used to measure and control market risk exposure is Value at Risk (VaR). VaR is the maximum

estimated loss that will arise on the entire portfolio over a specified period of time (holding period) from an

adverse market movement with a specified probability (confidence level).

The VaR model used by the Group is based upon a 99 percentage confidence level and assumes a 1 day holding

period. Use of a 1-day time-horizon makes it possible to make an immediate comparison between

profits/losses realized..

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

128

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

Exposure to market risks – Value at Risk Tool (continued)

Although VaR is an important tool for measuring market risk, the assumptions on which the model is based do

give rise to some limitations, including the following:

- A 1 day holding period assumes that it is possible to hedge or dispose of positions within that period. This

is considered to be a realistic assumption in almost all cases but may not be the case in situations in which

there is severe market illiquidity for a prolonged period.

- A 99 percent confidence level does not reflect losses that may occur beyond this level. Even within the

model used there is a one percent probability that losses could exceed the VaR.

- VaR is calculated on an end-of-day basis and does not reflect exposures that may arise on positions during

the trading day.

- The use of historical data as a basis for determining the possible range of future outcomes may not always

cover all possible scenarios, especially those of an exceptional nature.

- The VaR measure is dependent upon the Group’s position and the volatility of market prices. The VaR of

an unchanged position reduces if the market price volatility declines and vice versa.

The Group uses a VaR warning limit for total market risk and banking book and a limit for trading book; this

limit is subject to review and approval by UniCredit Group and ALCO. VaR is measured daily by a common

system throughout the UniCredit Group; data is automatically upload from the core banking system and other

front office systems.

A summary of the VaR position of the Group and of the Bank is as follows:

31.12.2024

Grup

Bank

in EUR

thousands

At 31

December

Average

Maximum

Minimum

At 31

December

Average

Maximum

Minimum

Foreign

currency

risk

120

121

Interest

rate risk

3,723

3,710

4,946

3,083

3,900

3,631

4,697

3,078

Credit

spread risk

12,778

10,062

12,814

8,781

12,778

10,062

12,814

8,781

Overall

11,250

8,543

11,398

6,420

11,306

8,444

11,456

6,363

31.12.2023

Grup

Bank

in EUR

thousands

At 31

Decembe

Average

Maximu

Minimum

At 31

Decembe

Average

Maximu

Minimum

Foreign

currency risk

192

188

Interest rate

risk

4,680

4,732

6,473

3,575

4,637

4,639

6,534

3,322

Credit spread

risk

10,372

14,283

18,238

10,284

10,372

14,283

18,238

10,284

Overall

9,738

14,139

17,698

9,496

9,476

14,160

17,902

9,441

The limitations of the VaR methodology are recognized by supplementing VaR limits with other position and

sensitivity limit analyses. The Group uses a range of stress tests to model the financial impact of a variety of

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

129

exceptional market scenarios on the Group’s positions..

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

130

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

Foreign exchange (FX) analysis

The FX net open position limits are assigned by the Group and are lower than the prudential limits imposed by

the National Bank of Romania.

The limits are expressed in EUR equivalent and the exposure to the limits is monitored on a daily basis by

Market Risk department.

The table shows the average usage of the limits during 2024 and 2023, which correlate also with the stable FX

VaR figure.

Foreign exchange (FX) Open Position of the Bank is as follows:

Group

in EUR thousands

31.12.2024

31.12.2023

Limits (EUR

equivalent)

Average usage

Limits (EUR

equivalent)

Average usage

EUR

45,000

35.75%

40,000

24.26%

USD

5,000

6.85%

5,000

6.58%

Bank

in EUR thousands

31.12.2024

31.12.2023

Limits (EUR

equivalent)

Average usage

Limits (EUR

equivalent)

Average usage

EUR

45,000

35.37%

40,000

23.98%

USD

5,000

6.10%

5,000

6.11%

Exposure to market risks – Interest Rate Gap tool

Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved

limits for repricing bands. ALCO is the monitoring body for compliance with these limits and it is assisted by

Market Risk in its day to day monitoring activities.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

131

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

A summary of the Group’s interest rate gap position on interest earning assets and liabilities, based on the earlier date between contractual maturity and repricing

date, as at 31 December 2024, is presented below:

31.12.2024

Group

in RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

19,510,086

Financial assets held for trading

38,743

13,412

29,247

36,042

117,444

Derivatives assets designated as hedging instruments

50,516

5,240

19,938

89,906

165,600

Loans and advances to banks

131,413

53,970

185,383

Loans and advances to customers

20,963,534

7,339,069

12,378,607

813,903

41,495,113

Net Lease receivables

3,650,587

93,025

1,327,240

18,517

5,089,369

Debt instruments at amortized cost

36,465

1,068,328

4,585,850

4,906,403

10,597,046

Financial assets at fair value through other

comprehensive income

115,951

469,917

1,231,184

215,624

2,032,676

Other financial assets

525,865

356

32,302

558,523

Total financial assets

45,023,160

9,043,317

19,604,368

6,080,395

79,751,240

Financial liabilities at fair value through profit or loss

3,189

4,017

30,604

13,074

50,884

Derivatives liabilities designated as hedging instruments

7,127

47,209

103,906

158,242

Deposits from banks

1,782,107

Loans from banks and other financial institutions,

including subordinated liabilities

5,685,787

943,609

2,684,383

62,674

9,376,453

Deposits from customers

46,945,339

5,055,036

105,657

52,106,032

Debt securities issued

4,032,629

1,727,658

5,760,287

Other financial liabilities

1,250,377

645

118

1,251,140

Leasing Liabilities

24,016

35,678

121,915

23,465

205,074

Total financial liabilities

59,730,571

7,766,643

2,989,886

203,119

70,690,219

Interest sensitivity surplus / (shortfall)

(14,707,411)

1,276,674

16,614,482

5,877,276

9,061,021

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

132

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

A summary of the Group’s interest rate gap position on interest earning assets and liabilities, based on the earlier date between contractual maturity and repricing

date, as at 31 December 2023, is presented below:

31.12.2023

Group

in RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

20,106,053

Financial assets held for trading

18,881

3,106

16,063

44,839

82,889

Derivatives assets designated as hedging instruments

86,864

6,976

60,009

88,711

242,560

Loans and advances to banks

142,096

Loans and advances to customers

18,638,079

7,028,437

10,217,998

311,907

36,196,421

Net Lease receivables

3,055,049

71,476

1,085,526

93,645

4,305,696

Debt instruments at amortized cost

4,355,378

5,291,836

9,647,214

Financial assets at fair value through other

comprehensive income

332,924

1,088,831

575,446

1,997,201

Other financial assets

558,257

Total financial assets

42,796,107

7,109,995

16,965,901

6,406,384

73,278,387

Financial liabilities at fair value through profit or loss

32,118

17,570

24,828

45,737

120,253

Derivatives liabilities designated as hedging instruments

16,448

758

20,732

164,466

202,404

Deposits from banks

1,219,073

21,909

1,240,982

Loans from banks, including subordinated liabilities

5,616,626

1,102,481

568,005

71,634

7,358,746

Deposits from customers

45,335,750

5,204,215

415,347

50,955,312

Debt securities issued

3,029,309

972,987

4,002,296

Other financial liabilities

1,185,038

Leasing Liabilities

24,449

51,662

138,413

41,279

255,803

Total financial liabilities

56,458,811

7,371,582

1,167,325

323,116

65,320,834

Interest sensitivity surplus / (shortfall)

(13,662,704)

(261,587)

15,798,576

6,083,268

7,957,553

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

133

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

A summary of the Bank’s interest rate gap position on interest earning assets and liabilities, based on the earlier date between contractual maturity and repricing

date, as at 31 December 2024, is presented below:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

134

31.12.2024

Bank

in RON thousands

Up to 3 months

3 months to 1 year

1-5 years

Over 5 years

No fixed maturity

Total carrying

amount

Cash and cash equivalents

19,509,849

Financial assets held for trading

38,743

13,412

29,247

36,042

117,444

Derivatives assets designated as

hedging instruments

50,516

5,240

19,938

89,906

165,600

Loans and advances to banks

131,413

53,970

185,383

Loans and advances to customers

20,510,734

6,914,168

10,035,449

902,032

38,362,383

Net Lease receivables

887

909

447

2,243

Debt instruments at amortized cost

36,465

1,068,328

4,585,850

4,906,403

10,597,046

Financial assets at fair value through

other comprehensive income

115,951

469,917

1,231,184

215,624

2,032,676

Other financial assets

487,910

Total financial assets

40,882,468

8,525,944

15,902,115

6,150,007

71,460,534

Financial liabilities at fair value through

profit or loss

3,189

4,017

30,604

13,074

50,884

Derivatives liabilities designated as

hedging instruments

7,127

47,209

103,906

158,242

Deposits from banks

1,782,107

Loans from banks and other financial

institutions, including subordinated

liabilities

1,574,428

Deposits from customers

47,579,523

5,055,036

105,657

52,740,216

Debt securities issued

4,032,629

1,727,658

5,760,287

Other financial liabilities

1,137,670

Leasing Liabilities

19,626

35,375

121,742

23,465

200,208

Total financial liabilities

56,136,299

6,822,086

305,212

140,445

63,404,042

Interest sensitivity surplus / (shortfall)

(15,253,831)

1,703,858

15,596,903

6,009,562

8,056,492

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

135

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

A summary of the Bank’s interest rate gap position on interest earning assets and liabilities, based on the earlier date between contractual maturity and repricing

date, as at 31 December 2023, is presented below:

31.12.2023

Bank

in RON thousands

Up to 3 months

3 months to 1

year

1-5 years

Over 5 years

No fixed

maturity

Total carrying

amount

Cash and cash equivalents

20,105,745

Financial assets held for trading

18,881

3,106

16,063

44,839

82,889

Derivatives assets designated as hedging instruments

86,864

6,976

60,009

88,711

242,560

Loans and advances to banks

142,096

Loans and advances to customers

18,544,689

7,066,916

7,869,118

411,729

33,892,452

Net Lease receivables

7,300

Debt instruments at amortized cost

4,355,378

5,291,836

9,647,214

Financial assets at fair value through other

comprehensive income

332,924

1,088,831

575,446

1,997,201

Other financial assets

497,954

497,953

Total financial assets

39,594,357

7,076,998

13,531,495

6,412,561

66,615,410

Financial liabilities at fair value through profit or loss

32,118

17,570

24,828

45,737

120,253

Derivatives liabilities designated as hedging instruments

16,448

758

20,732

164,466

202,404

Deposits from banks

1,219,073

21,909

1,240,982

Loans from banks, including subordinated liabilities

1,427,598

Deposits from customers

45,701,830

5,204,216

96,521

51,002,566

Debt securities issued

3,029,309

972,987

4,002,296

Other financial liabilities

1,149,294

Leasing Liabilities

19,419

51,341

138,375

41,279

250,414

Total financial liabilities

52,595,089

6,268,781

280,456

251,482

59,395,807

Interest sensitivity surplus / (shortfall)

(13,000,732)

808,217

13,251,039

6,161,079

7,219,603

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

136

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

The following table shows the yearly average interest rates obtained or offered during 2024:

31.12.2024

Grup

Bank

RON

EUR

USD

RON

EUR

USD

Average

Assets

Current accounts with the National

Bank of Romania

0.79%

0.14%

0.79%

0.14%

Loans and advances to banks

5.85%

3.61%

5.12%

5.85%

3.61%

5.12%

Debt securities

5.20%

2.31%

5.20%

2.31%

Loans and advances to customers

8.30%

5.90%

8.05%

7.72%

6.02%

8.05%

Net lease receivables

8.15%

4.95%

0.00%

Liabilities

Deposits from banks

5.32%

4.60%

5.13%

5.32%

4.60%

5.13%

Deposits from customers

5.58%

2.92%

4.04%

5.58%

2.92%

4.04%

Loans from banks

6.90%

4.36%

0.00%

7.13%

0.34%

0.00%

Subordinated loans

7.69%

The following table shows the yearly average interest rates obtained or offered during 2023:

31.12.2023

Group

Bank

RON

EUR

USD

RON

EUR

USD

Average

Assets

Current accounts with the National

Bank of Romania

0.74%

0.06%

0.74%

0.06%

Loans and advances to banks

4.49%

3.16%

4.79%

4.49%

3.16%

4.79%

Debt securities

4.45%

2.22%

4.45%

2.22%

Loans and advances to customers

8.88%

5.34%

7.78%

8.54%

5.57%

7.78%

Net lease receivables

6.88%

3.51%

8.15%

0.00%

Liabilities

Deposits from banks

5.09%

4.36%

5.23%

5.09%

4.36%

5.23%

Deposits from customers

6.48%

2.29%

3.95%

6.48%

2.29%

3.95%

Loans from banks

3.97%

3.98%

0.00%

7.58%

1.00%

0.00%

Subordinated loans

6.59%

6.75%

The interest rates related to the local currency and the major foreign currencies as at 31 December 2024 and

31 December 2023 were as follows:

Currencies

Interest rate

31.12.2024

31.12.2023

RON

Robor 3 months

5.92%

6.22%

RON

Robor 6 months

5.98%

6.27%

RON

Benchmark index for loans granted to consumers – daily value

5.75%

6.02%

EUR

Euribor 3 months

2.71%

3.91%

EUR

Euribor 6 months

2.85%

3.86%

USD

SOFR 3 month

4.49%

5.63%

USD

SOFR 6 months

4.49%

5.69%

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

137

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

138

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

The amounts of assets and liabilities held in RON and in foreign currencies for the Group as at 31 December 2024 are presented below:

31.12.2024

Group

in RON thousands

RON

USD

EUR

Other

Total

Financial assets

Cash and cash equivalents

7,199,630

995,935

11,255,243

59,278

19,510,086

Financial assets at fair value through profit or loss

56,139

10,001

60,065

126,219

Derivatives assets designated as hedging instruments

68,564

97,016

165,600

Loans and advances to banks

94,628

90,755

185,383

Loans and advances to customers

25,217,155

430,715

15,847,225

41,495,113

Net Lease receivables

59,416

5,029,953

5,089,369

Debt instruments at amortized cost

10,597,046

Financial assets at fair value through other comprehensive income

1,463,043

610,341

2,073,384

Other financial assets

447,705

2,421

108,322

558,523

Total financial assets

45,203,326

1,439,092

33,098,920

59,385

79,800,723

Financial liabilities

Financial liabilities at fair value through profit or loss

16,628

1,342

32,900

50,884

Derivatives liabilities designated as hedging instruments

72,492

85,750

158,242

Deposits from banks

794,818

2,940

984,349

1,782,107

Loans from banks and other financial institutions at amortized cost

3,664,141

4,870,450

8,534,591

Subordinated liabilities

841,862

Deposits from customers

32,040,492

2,090,473

17,809,168

165,899

52,106,032

Debt securities issued

1,727,658

4,032,629

5,760,287

Other financial liabilities

667,053

70,797

500,831

12,459

1,251,140

Lease liabilities

1,152

1,443

202,479

205,074

Total financial liabilities

38,984,434

2,166,995

29,360,418

178,372

70,690,219

Net financial assets/(liabilities)

6,218,892

(727,903)

3,738,502

(118,987)

9,110,504

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

139

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

The amounts of assets and liabilities held in RON and in foreign currencies for the Group as at 31 December 2023 are presented below:

31.12.2023

Group

in RON thousands

RON

USD

EUR

Other

Total

Financial assets

Cash and cash equivalents

10,178,439

987,460

8,871,330

68,824

20,106,053

Financial assets at fair value through profit or loss

16,187

15,882

65,630

97,712

Derivatives assets designated as hedging instruments

15,424

227,125

242,560

Loans and advances to banks

110,721

31,375

142,096

Loans and advances to customers

21,186,969

384,607

14,624,835

36,196,421

Net Lease receivables

92,323

4,213,289

4,305,696

Debt instruments at amortized cost

9,647,214

Financial assets at fair value through other comprehensive income

1,417,896

608,629

2,026,525

Other financial assets

499,216

13,477

45,554

558,257

Total financial assets

43,164,389

1,401,521

28,687,767

68,857

73,322,534

Financial liabilities

Financial liabilities at fair value through profit or loss

10,450

1,181

108,609

120,253

Derivatives liabilities designated as hedging instruments

15,892

186,473

202,404

Deposits from banks

420,691

820,291

1,240,982

Loans from banks

2,376,794

4,029,879

6,406,673

Subordinated liabilities

952,073

Deposits from customers

32,173,241

2,102,418

16,483,232

196,421

50,955,312

Debt securities issued

1,161,995

2,840,301

4,002,296

Other financial liabilities

641,296

61,086

466,728

15,928

1,185,038

Lease liabilities

2,010

1,917

251,876

255,803

Total financial liabilities

36,802,369

2,166,641

26,139,462

212,362

65,320,834

Net financial assets/(liabilities)

6,362,020

(765,120)

2,548,305

(143,505)

8,001,700

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

140

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

The amounts of assets and liabilities held in RON and in foreign currencies for the Bank as at 31 December 2024 can be analysed as follows:

31.12.2024

Bank

in RON thousands

RON

USD

EUR

Other

Total

Financial assets

Cash and cash equivalents

7,200,570

995,935

11,254,066

59,278

19,509,849

Financial assets at fair value through profit or loss

56,139

10,001

60,065

126,219

Derivatives assets designated as hedging instruments

68,564

97,016

165,600

Loans and advances to banks

94,628

90,755

185,383

Loans and advances to customers

22,179,768

430,715

15,751,882

38,362,383

Net Lease receivables

2,243

Debt instruments at amortized cost

10,597,046

Financial assets at fair value through other comprehensive income

1,450,758

610,341

2,061,099

Other financial assets

377,093

2,421

108,321

487,910

Total financial assets

42,024,566

1,439,092

27,974,689

59,385

71,497,732

Financial liabilities

Financial liabilities at fair value through profit or loss

16,628

1,342

32,900

50,884

Derivatives liabilities designated as hedging instruments

72,492

85,750

158,242

Deposits from banks

794,818

2,940

984,349

1,782,107

Loans from banks and other financial institutions at amortized cost

701,999

30,568

732,567

Subordinated liabilities

841,862

Deposits from customers

32,441,046

2,090,492

18,042,779

165,899

52,740,216

Debt securities issued

1,727,658

4,032,629

5,760,287

Other financial liabilities

571,056

70,797

483,358

12,459

1,137,670

Lease liabilities

1,118

1,443

197,647

200,208

Total financial liabilities

36,326,815

2,167,014

24,731,842

178,372

63,404,043

Net financial assets/(liabilities)

5,697,751

(727,922)

3,242,847

(118,987)

8,093,689

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

141

4. RISK MANAGEMENT (continued)

e) Market risk (continued)

The amounts of assets and liabilities held in RON and in foreign currencies for the Bank as at 31 December 2023 can be analysed as follows:

31.12.2023

Bank

in RON thousands

RON

USD

EUR

Other

Total

Financial assets

Cash and cash equivalents

10,178,131

987,460

8,871,330

68,824

20,105,745

Financial assets at fair value through profit or loss

16,187

15,882

65,630

97,712

Derivatives assets designated as hedging instruments

15,424

227,125

242,560

Loans and advances to banks

110,721

31,375

142,096

Loans and advances to customers

19,198,448

384,607

14,309,387

33,892,452

Net Lease receivables

7,300

Debt instruments at amortized cost

9,647,214

Financial assets at fair value through other comprehensive income

1,408,131

608,629

2,016,760

Other financial assets

438,987

13,477

45,479

497,953

Total financial assets

41,013,243

1,401,437

24,166,255

68,857

66,649,792

Financial liabilities

Financial liabilities at fair value through profit or loss

10,450

1,181

108,609

120,253

Derivatives liabilities designated as hedging instruments

15,892

186,473

202,404

Deposits from banks

420,691

820,291

1,240,982

Loans from banks

479,018

105,948

584,966

Subordinated liabilities

842,632

Deposits from customers

32,439,373

2,102,566

16,264,206

196,421

51,002,566

Debt securities issued

1,161,995

2,840,301

4,002,296

Other financial liabilities

633,438

61,078

438,850

15,928

1,149,294

Lease liabilities

1,239

1,917

247,258

250,414

Total financial liabilities

35,162,096

2,166,781

21,854,568

212,362

59,395,807

Net financial assets/(liabilities)

5,851,147

(765,344)

2,311,687

(143,505)

7,253,985

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

142

4. RISK MANAGEMENT (continued)

f) Strategic risk

Strategic risk is part of the risks which are evaluated qualitatively within the evaluation process of risks initiated

by UniCredit Group and by the Bank.

Strategic risk is analysed taking into account the following:

• risk of changes in the business environment;

• risk of unsatisfactory implementation of decision;

• risk of lack of reaction.

The following three parameters are analyzed for the above risks: probability, severity and exposure.

The Group has implemented internal regulations and specific mechanisms for managing strategic risk.

g) Compliance risk

In accordance with the legal provisions and UniCredit Group policies, the management of compliance risk is

performed by Compliance Function within UniCredit Bank SA through:

• providing advice on the provisions of the legal and regulatory framework and on the standards the Bank

needs to meet;

• assessing the possible impact of any changes of the legal and regulatory framework on the Bank’s activities;

• verifying that new products and procedures are in compliance with the regulatory framework;

• performing second level controls in the areas under Compliance Function’s competence, based on specific

control methodologies;

• evaluating, measuring and monitoring of compliance risk in the areas under Compliance Function’s

competence, as well as through appropriate reporting to the governing bodies of the Bank;

• managing the relationship with regulatory authorities, either directly by Compliance Function, or together

with other functions within the Bank.

h) Taxation risk

The Group is committed to ensure sustainable performance of tax risk management maintaining an efficient,

effective and transparent tax function within the organization. The Group strictly complies with the legal norms

regarding taxes and duties. Differences between IFRS accounting treatment and fiscal requirements have been

carefully identified and analysed, resulting in proper recognition of deferred tax effects in the financial

statements.

The Group is focused permanently on monitoring the transfer price risks, including the proper documentation

of intragroup transactions, through a proactive approach. Tax liabilities of the Group are opened to a general

tax inspection for a period of five years.

i) Environmental, social and governance factors (ESG)

Environmental, social and governance (ESG) factors are key factors in measuring the sustainability and social

impact of a financial institution. ESG factors are those environmental, social or governance elements that can

have a positive effect or negative impact on the bank's financial performance or solvency.

In the last years, UniCredit Bank has undertaken several actions to integrate progressively climate and

environmental risks into the risk management framework through the two types of risks: transition risk and

physical risk, by establishing specific methodologies and applying international regulatory standards in force.

Regarding the financial performance of borrowers, the issues associated with climate change can materialize

in the following risks:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

143

• physical risk generated by the physical effects of climate change;

• transition risk generated by the transition to a low carbon economy and resistance to climate change.

In order to incorporate and adequately assume the risk, generated by climate change, the Bank has increased

the

4. RISK MANAGEMENT (continued)

i) Environmental, social and governance factors (ESG) (continued)

level of granularity related to each sectors, at the level of each industry, considering that the impact generated

may be different from one subcategory to another within the same industry.

Integration of climate risk into risk framework into overall risk management framework, was achieved through:

(i) Integration of climate risk into Risk Appetite Framework (RAF) in the following documents:

• Risk Appetite Statement (RAS), that provides a strategic view of and guidance on the target risk profile;

• Risk Appetite Dashboard, which includes quantitative KPIs for transition risk score and physical risk for

which risk thresholds were established for a proactive risk steering;

• Risk Strategies, which ensure the cascading of the Risk Appetite to more granular levels via operative

indicators, limits and controls.

(ii) Integration of transition risk into credit portfolio through Corporate Credit Risk Strategy and Counterparty

level. The transition risk of the portfolio is measured with different metrics, also including the distribution of

the credit portfolio by industry. Thus, a comprehensive approach has been developed to assess and manage

transition risk and  the Risk Management framework defined is consistent with RAF and is based on 3 pillars:

• specific reputation risk policies set-up;

• dedicated Industry steering signals, based on relevant C&E factors included in the Credit Risk Strategies

framework;

• assessment at single client level, leveraging a dedicated C&E questionnaire.

Leveraging on transition risk score, the process application results in specific strategies (in terms of eligible

products) to steer the corporate portfolio's exposure as to manage climate and environmental risks.

More in details, in case the client is assigned high transition risk score, the strategy foresees prevalence or

exclusivity of ESG products.

Outcome of physical risk assessment at counterparty level is meant to complement the strategy with the

request of physical risk mitigation action whenever deemed necessary.

(iii) Evaluation of Transition risk at collateral level, which was achieved by measuring the risk associated  with

assets accepted as collateral to fulfill regulatory obligations (Pillar 3, EU Taxonomy, Stress Tests) and meet

managerial needs:

• for the stock, whereas the data couldn’t be punctually retrieved, the Bank leveraged on Group external

specialized providers, which developed an estimation model;

• for the new flows, the following transition risk KPIs are collected and properly taken in consideration during

origination phase.

Such information has been integrated into the ESG Global IT Infrastructure and is available on the local

platforms at the origination stage.

(iv)  Physical risk in the credit portfolio physical risk is monitored for collateral assets portfolio. This involves the

assessment of a wide range of hazard events. Local guidelines have been updated to integrate transition risk

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

144

KPIs into collateral evaluation - the appraiser is delegated to evaluate, based on own independent assessment,

the extent of transition risk (leveraging on EPC) and to embed this component in the overall assessment and

final value assigned to the collateral.

j) Capital management

The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market

confidence and to sustain future development of the business. The impact of the level of capital on

shareholders’ return is also recognized and the Group aims to maintain a balance between the higher returns

that may be possible with greater gearing and the advantages and security afforded by a sound capital position.

The Group has complied the capital requirements imposed by the National Bank of Romania through specific

legislation.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

145

4. RISK MANAGEMENT (continued)

j) Capital management (continued)

Regulatory capital

Starting with January 2014, Romanian banking system has applied the provisions of Regulation (EU) No

575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit

institutions and investment firms and amending Regulation (EU) No 648/2012 and the provisions of Regulation

no.5/2013 regarding prudential requirements for the credit institutions issued by National Bank of Romania.

By application of the above mentioned requirements, the structure of own funds is redefined, as well as the

eligibility criteria for the equity instruments to be included in the Tier 1 Own Funds – Base, Supplementary and

Tier 2 Own funds. New liquidity and capital indicators are defined which have to be monitored above the

minimum capital requirements specified by the respective regulations.

Credit Risk

In July 2012, National Bank of Romania (“NBR”) authorized the Bank to calculate the credit risk capital

requirement under Foundation IRB Approach for the following categories of clients: corporate (except for real

estate clients), multinationals, banks and securities industries. For the rest of the portfolios, the Group is still

applying the Standardized Approach. In 2020, the Bank received the approval for the application of the

permanent partial use of the standardized approach for non-banking financial institutions.

Market Risk

The Bank calculates the capital requirements for market risk for the held for trading portfolio using the standard

method in accordance with Regulation (EU) No 575/ 2013 of the European Parliament and of the Council of 26

June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation

(EU) No 648/ 2012.

Operational Risk

UniCredit Group developed an internal model under the Advanced Measurement Approach (AMA) for the

assessment of capital requirements for operational risk. The capital at risk method used for AMA calculation is

obtained by modelling internal loss data, integrated with external loss data (operational loss events collected

from the international consortium ORX), scenario generated data (a set of hypothetical, yet foreseeable,

extreme operational loss events used to integrate internal and external loss data in the high impact/low

frequency range) and key operational risk indicators. The AMA capital requirement is estimated at a 99,9%

confidence level.

Own Funds

Tier 1 own funds includes: equity instruments, share premiums,retained earnings, other items of

comprehensive income, other reserves and a series of deductions (losses of the financial period, intangible

assets, deferred tax asset which is based on future profits, negative amounts which results from the calculation

of expected values and other adjustments required by laws). Tier 2 own funds includes subordinated loans (for

the Bank only).

Capital allocation

The allocation of capital between specific operations and activities is, to a large extent, driven by optimization

of the return achieved on the capital allocated. The amount of capital allocated to each business segment is

determined as a percentage established by the UniCredit Group of the risk weighted assets.

k) Turnover

The Group has started to apply the requirements of NBR Regulation No 5/2013 regarding prudential

requirements for credit institutions since January 2014.

The Group turnover at 2024 is RON thousands 6,121,870 (2023: RON thousands 5,346,779), which is computed

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

146

and presented in accordance with provisions of art. 644 of the above mentioned Regulation no 5/2013 and

consists of Operating income items excluding interest expense and fee expense.

The Bank turnover at 2024 is RON thousands 5,275,916 (2023: RON thousands 4,669,914), which is computed

and presented in accordance with provisions of art. 644 of the above mentioned Regulation no 5/2013 and

consists of Operating income items excluding interest expense and fee expense.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

147

5. USE OF ESTIMATES AND JUDGEMENTS

The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within

the next financial year. Estimates and judgements are periodically evaluated and are based on historical

experience and other factors, including expectations of future events that are believed to be reasonable under

the circumstances.

a) Key sources of estimation uncertainty

Allowances for loan losses

The Group reviews its loan portfolios to assess impairment at least on a monthly basis. In determining whether

an impairment loss should be recorded in the income statement, the Group makes judgments as to whether

there is any observable data indicating that there is a measurable decrease in the estimated future cash flows

from a portfolio of loans before the decrease can be identified with an individual loan in that portfolio. This

evidence may include observable data indicating that there has been an adverse change in the payment status

of borrowers in a group, or national or local economic conditions that correlate with defaults on assets in the

group.

The loan impairment assessment considers the visible effects on current market conditions on the individual/

collective assessment of loans and advances to customers’ impairment. The Group has estimated the

impairment loss provision for loans and advances to customers based on the internal methodology harmonized

with UniCredit SpA policies. Because of the uncertainties on the local financial markets regarding assets

valuation and operating environment of the borrowers, that Group’s estimate could be revised after the date

of the approval of the consolidated financial statements.

The sensitivity was estimated as the ratio of:

- the difference between the ECL estimated under the alternative scenario (Adverse) or positive scenario and

the one under the baseline;

- the GDP deviations (on 3 years cumulative basis) between adverse or positive and baseline scenarios (in %

points).

The Implied assumptions are:

- GDP forecast (over 3 years) is assumed to be the most relevant economic factor as indicator of scenario

severity;

- the GDP of Romania is considered for the calculation of the sensitivity.

ECL vs GDP% sensitivity is a peculiar metric under the Group Wide framework (Group Wide are referring to

models built for portfolios with similar features Group Wide, as such: multinational companies, project finance,

banks, sovereign, etc), in the sense that such a metric has to be interpreted under the context that GW

portfolios are cross country vs. GDPs are country level vs. Portfolio Granularity not being homogeneously

allocated cross country; that is why in case of the residual GW portfolio managed by Romania might be the

case that the macro model does not make the link with the Romania GDP but with the countries having the

main portfolio portion (e.g. Italy GDP); therefore by synthetic assignment a sensitivity metric relevant for the

countries having residual portfolio can be associated with the link subject for main countries GDP, and in this

case for Romania portfolio the sensitivity vs Italy GDP was considered to be plausible.

The results considering the up to date IFRS9 scenarios and portfolio are the following:

- for 1 point of GDP drop (cumulated over 3 years) the ECL is estimated to increase by approximate 71 mln RON

(+0.6%) / (31 December 2023: ECL was estimated to increase by approximate 80 mln RON (+0.6%);

- for 1 point of GDP rise (cumulated over 3 years) the ECL is estimated to decrease by approximate 33 mln RON

(-0.6%) / (31 December 2023: positive scenario was not considered).

3-year Cumulated GDP

ECL Amount

ECL Difference vs

Baseline (RON

mln)

% ECL

Difference vs

Baseline

ECL Sensitivity vs 3-

year cum GDP (RON

mln)

% ECL Sensitivity vs

3-year cum GDP

(RON mln)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

148

Repor

ting

Date

Baseli

Neg

ative

Posi

tive

Baseli

Nega

tive

Positi

Negat

ive

Positi

Negat

ive

Posit

ive

For 1

GDP

point

drop (3-

year

cumulat

ed basis)

For 1

GDP

point

rise (3-

year

cumulat

basis)

For 1

GDP

point

drop (3-

year

cumulat

basis)

For 1

GDP

point

rise (3-

year

cumulat

basis)

31.12

.2024

7.5

1.6

10.3

1,943

2,014

1,910

-33

-2%

-12

0.6%

-0.6%

31.12

.2023

11.8

6.4

2,463

2,544

0.6%

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

149

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

a) Key sources of estimation uncertainty (continued)

Sensitivity analysis for assets at fair value through other comprehensive income (2024-2023).

The fair value of financial assets at fair value through other comprehensive income is directly dependent on

the market yield variable and its changes impact the financial position and the net assets of the Group.

In case the market yield varies by +/-10 percent, the negative reserve recorded as at 31 December 2024 on

financial assets at fair value through other comprehensive income would vary as follows:

31.12.2024

Bank

In Thousand RON

Market Yield -10%

Market Yield +10%

Financial assets at fair value through other

comprehensive income denominated in RON

137,130

(137,130)

Financial assets at fair value through other

comprehensive income denominated in EUR

59,996

(59,996)

Financial assets at fair value through other

comprehensive income

197,126

(197,126)

In case the market yield varies by +/-10 percent, the negative reserve recorded as at 31 December 2023 on

financial assets at fair value through other comprehensive income would vary as follows:

31.12.2023

Bank

In Thousand RON

Market Yield -10%

Market Yield +10%

Financial assets at fair value through other

comprehensive income denominated in RON

134,796

(134,796)

Financial assets at fair value through other

comprehensive income denominated in EUR

59,789

(59,789)

Financial assets at fair value through other

comprehensive income

194,585

(194,585)

b) Critical accounting judgments in applying the Group’s accounting policies

Financial assets and liabilities classification

The Group’s accounting policies provide scope for assets and liabilities to be designated on inception into

different accounting categories.

The classification and measurement of financial assets depends on the results of the SPPI and the business

model test (please see financial assets sections of note 3). The Group determines the business model at a level

that reflects how groups of financial assets are managed together to achieve a particular business objective.

This assessment includes judgement reflecting all relevant evidence including how the performance of the

assets is evaluated and their performance measured, the risks that affect the performance of the assets and

how these are managed and how the managers of the assets are compensated.

Monitoring is part of the Group’s continuous assessment of whether the business model for which the

remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has

been a change in business model and so a prospective change to the classification of those assets.

When classifying financial assets or liabilities as “derivative assets / liabilities held for risk management”, the

Group has determined that it meets the description set out in accounting policy 3 h).

Qualifying hedge relationships

In designating financial instruments in qualifying hedge relationships, the Group has determined that it expects

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

150

the hedges to be highly effective over the period of the hedging relationship. In accounting for derivatives as

cash flow hedges, the Group has determined that the hedged cash flow exposure relates to highly probable

future cash flows.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

151

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

b) Critical accounting judgments in applying the Group’s accounting policies (continued)

Determining fair values

The fair value of financial instruments that are not traded in an active market (for example, unlisted treasury

securities and certificates of deposit) is determined by using appropriate valuation techniques in situations

where adequate valuations techniques can be identified. The valuation techniques are chosen among those

commonly used by market participants, once it has been demonstrated they provide reliable estimates of

prices obtained in actual market transactions, while maximizing the use of observable market data. The Group

uses its judgment to select the valuation method and make assumptions that are mainly based on market

conditions existing at each reporting date. For situations where adequate valuations techniques cannot be

identified, the fair value of the financial instruments that are not traded on an active market are estimated to

be equal to their carrying amount.

The classification of FVTOCI assets between quoted and unquoted financial instruments is presented below:

31.12.2024

Group

Bank

In Thousand RON

Listed*

Unlisted

Total

Listed*

Unlisted

Total

Debt securities at fair value through other

comprehensive income

1,832,549

200,127

2,032,676

1,832,549

200,127

2,032,676

Equity instruments at fair value through

other comprehensive income

40,708

28,423

Total assets held at fair value through

other comprehensive income

1,832,549

240,835

2,073,384

1,832,549

228,550

2,061,099

*) Listed financial instruments are those quoted on organized and regulated capital market

31.12.2023

Group

Bank

In Thousand RON

Listed*

Unlisted

Total

Listed*

Unlisted

Total

Debt securities at fair value through other

comprehensive income

1,802,133

195,068

1,997,201

1,802,133

195,068

1,997,201

Equity instruments at fair value through

other comprehensive income

29,324

19,559

Total assets held at fair value through

other comprehensive income

1,802,133

224,392

2,026,525

1,802,133

214,627

2,016,760

*) Listed financial instruments are those quoted on organized and regulated capital market

The Group measures fair values using the following fair value hierarchy that reflects the significance of the

inputs used in making the measurements:

•

Level 1: Quoted market price (unadjusted) in an active market for an identical instrument to which the

Bank has access at the measurement date. A quoted price on an active market provides the most reliable

evidence for fair value and is applied (as for example the price) or indirect without other adjustments in

determining the fair value anytime available.

•

Level 2: Valuation techniques based on observable inputs, either directly (i.e., as prices) or indirectly (i.e.,

derived from prices). This category includes instruments valued using: quoted market prices in active

markets for similar instruments; quoted prices for identical or similar instruments in markets that are

considered less than active; or other valuation techniques where all significant inputs are directly or

indirectly observable from market data.

•

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments

where the valuation technique includes inputs not based on observable data and the unobservable inputs

are often based on internal assumptions corroborated by few, if any, external observations.

When inputs used to measure the fair value of an asset or a liability are categorized within different levels of

the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair

value hierarchy as the lowest level input that is significant to the entire measurement. Assessing the

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

152

significance of a particular input to the entire measurement requires judgement, taking into account factors

specific to the asset or the liability. IFRS13 does not provide specific guidance on how to evaluate inputs’

significance; it is then deemed appropriate, in some cases, to assess it through sensitivity analysis.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

153

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents the fair value of financial instruments measured at fair value, by the level in the fair value hierarchy into which the fair value measurement

is categorized as of 31 December 2024:

31.12.2024

Group

In RON thousands

Level 1

Level 2

Level 3

Total fair value

Total book

value

Trading assets

Financial assets held for trading at fair value through profit or loss

32,891

84,002

551

117,444

Derivatives financial instruments designated as hedging instruments

165,600

Total trading assets

32,891

249,602

551

283,044

Financial assets at fair value through other comprehensive income

Debt instruments

1,797,314

235,362

2,032,676

Equity instruments (minority holdings)

40,708

Total assets at fair value through other comprehensive income

1,797,314

235,362

40,708

2,073,384

Non-transactional financial assets mandatorily at fair value through profit

or loss

VISA Shares

8,775

Total assets at fair value through profit or loss

8,775

Liabilities designated for trading and for hedging

Financial liabilities at fair value through profit or loss

50,332

552

50,884

Derivatives financial instruments designated at hedging instruments

158,242

Total liabilities designated for trading and for hedging

208,574

552

209,126

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

154

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents the fair value of financial instruments measured at fair value, by the level in the fair value hierarchy into which the fair value measurement

is categorized as of 31 December 2023:

31.12.2023

Group

In RON thousands

Level 1

Level 2

Level 3

Total fair value

Total book value

Trading assets

Financial assets held for trading at fair value through profit or loss

76,568

6,292

82,890

82,889

Derivatives financial instruments designated as hedging instruments

242,560

Total trading assets

319,128

6,292

325,450

325,449

Financial assets at fair value through other comprehensive income

Debt instruments

1,768,213

228,989

1,997,202

1,997,201

Equity instruments (minority holdings)

29,324

Total assets at fair value through other comprehensive income

1,768,213

228,989

29,324

2,026,526

2,026,525

Non-transactional financial assets mandatorily at fair value through

profit or loss

VISA Shares

14,823

Total assets at fair value through profit or loss

14,823

Liabilities designated for trading and for hedging

Financial liabilities at fair value through profit or loss

119,839

417

120,256

120,253

Derivatives financial instruments designated at hedging instruments

202,405

202,404

Total liabilities designated for trading and for hedging

322,244

417

322,661

322,657

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

155

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents the fair value of financial instruments measured at fair value, by the level in the fair value hierarchy into which the fair value measurement

is categorized as of 31 December 2024:

31.12.2024

Bank

In RON thousands

Level 1

Level 2

Level 3

Total fair value

Total book

value

Trading assets

Financial assets held for trading at fair value through profit or loss

32,891

84,002

551

117,444

Derivatives financial instruments designated as hedging instruments

165,600

Total trading assets

32,891

249,602

551

283,044

Financial assets at fair value through other comprehensive income

Debt instruments

1,797,314

235,362

2,032,676

Equity instruments (minority holdings)

28,423

Total assets at fair value through other comprehensive income

1,797,314

235,362

28,423

2,061,099

Non-transactional financial assets mandatorily at fair value through profit

or loss

VISA Shares

8,775

Total assets at fair value through profit or loss

8,775

Liabilities designated for trading and for hedging

Financial Liabilities at fair value through profit or loss

50,332

552

50,884

Derivatives financial instruments designated as hedging instruments

158,242

Total liabilities designated for trading and hedging

208,574

552

209,126

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

156

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents the fair value of financial instruments measured at fair value, by the level in the fair value hierarchy into which the fair value measurement

is categorized as of 31 December 2023:

31.12.2023

Bank

In RON thousands

Level 1

Level 2

Level 3

Total fair value

Total book value

Trading assets

Financial assets held for trading at fair value through profit or loss

76,568

6,292

82,890

82,889

Derivatives financial instruments designated as hedging instruments

242,560

Total trading assets

319,128

6,292

325,450

325,449

Financial assets at fair value through other comprehensive income

Debt instruments

1,768,213

228,989

1,997,202

1,997,201

Equity instruments (minority holdings)

19,559

Total assets at fair value through other comprehensive income

1,768,213

228,989

19,559

2,016,761

2,016,760

Non-transactional financial assets mandatorily at fair value through

profit or loss

VISA Shares

14,823

Total assets at fair value through profit or loss

14,823

Liabilities designated for trading and for hedging

Financial Liabilities at fair value through profit or loss

119,839

417

120,256

120,253

Derivatives financial instruments designated as hedging instruments

202,405

202,404

Total liabilities designated for trading and hedging

322,244

417

322,661

322,657

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

157

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents an analysis of the movement of financial instruments held at fair value classified as Level 3, for the year ended 31 December 2024:

31.12.2024

Group

In RON thousands

Balance at

December

2023

Gains /

Losses from

instruments

at fair value

through

profit and

loss

Gains / Losses

from

instruments

measured at

fair value

through other

comprehensive

income

Additions

Disposals (-)

Foreign

Currency

Exchange

Effect

Balance at

December

2024

Financial assets held for trading

6,292

(44)

2,422

(8,119)

551

Financial assets held for trading at fair value through profit or

loss

6,292

(44)

2,422

(8,119)

551

Non-transactional financial assets mandatorily at fair value

through profit or loss

14,823

1,771

(6,404)

(1,415)

8,775

VISA Shares

14,823

1,771

(6,404)

(1,415)

8,775

Financial assets at fair value through other comprehensive

income

29,324

11,384

40,708

Equity instruments (minority holdings)

29,324

11,384

40,708

Total assets

50,439

1,727

4,980

2,422

(8,119)

(1,415)

50,034

Financial liabilities designated for trading

417

(44)

2,428

(2,249)

552

Derivatives financial instruments

417

(44)

2,428

(2,249)

552

Total liabilities

417

(44)

2,428

(2,249)

552

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

158

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents an analysis of the movement of financial instruments held at fair value classified as Level 3, for the year ended 31 December 2023:

31.12.2023

Group

In RON thousands

Balance at

December

2022

Gains /

Losses from

instruments

at fair value

through

profit and

loss

Gains / Losses

from

instruments

measured at

fair value

through other

comprehensive

income

Additions

Disposals (-)

Foreign

Currency

Exchange

Effect

Balance at

December

2023

Financial assets held for trading

(178)

9,848

(3,385)

6,292

Financial assets held for trading at fair value through profit

or loss

(178)

9,848

(3,385)

6,292

Non-transactional financial assets mandatorily at fair value

through profit or loss

11,932

3,248

(357)

14,823

VISA Shares

11,932

3,248

(357)

14,823

Financial assets at fair value through other comprehensive

income

17,158

12,166

29,324

Equity instruments (minority holdings)

17,158

12,166

29,324

Total assets

29,097

3,070

12,166

9,848

(3,385)

(357)

50,439

Financial liabilities designated for trading

(154)

4,033

(3,471)

417

Derivatives financial instruments

(154)

4,033

(3,471)

417

Total liabilities

(154)

4,033

(3,471)

417

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

159

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

160

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents an analysis of the movement of financial instruments held at fair value classified as Level 3, for the year ended 31 December 2024:

31.12.2024

Bank

In RON thousands

Balance at

December

2023

Gains /

Losses from

instruments

at fair value

through

profit and

loss

Gains / Losses

from

instruments

measured at

fair value

through other

comprehensive

income

Additions

Disposals (-)

Foreign

Currency

Exchange

Effect

Balance at

December

2024

Financial assets held for trading

6,292

(44)

2,422

(8,119)

551

Financial assets held for trading at fair value through profit or

loss

6,292

(44)

2,422

(8,119)

551

Non-transactional financial assets mandatorily at fair value

through profit or loss

14,823

1,771

(6,404)

(1,415)

8,775

VISA Shares

14,823

1,771

(6,404)

(1,415)

8,775

Financial assets at fair value through other comprehensive

income

19,559

8,864

28,423

Equity instruments (minority holdings)

19,559

8,864

28,423

Total assets

40,674

1,727

2,460

2,422

(8,119)

(1,415)

37,749

Financial liabilities designated for trading

417

(44)

2,428

(2,249)

552

Derivatives financial instruments

417

(44)

2,428

(2,249)

552

Total liabilities

417

(44)

2,428

(2,249)

552

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

161

5. USE OF ESTIMATES AND JUDGEMENTS (continued)

The table below presents an analysis of the movement of financial instruments held at fair value classified as Level 3, for the year ended 31 December 2023:

31.12.2023

Bank

In RON thousands

Balance at

December

2022

Gains /

Losses from

instruments

at fair value

through

profit and

loss

Gains / Losses

from

instruments

measured at

fair value

through other

comprehensive

income

Additions

Disposals (-)

Foreign

Currency

Exchange

Effect

Balance at

December

2023

Financial assets held for trading

(178)

9,848

(3,385)

6,292

Financial assets held for trading at fair value through profit or

loss

(178)

9,848

(3,385)

6,292

Non-transactional financial assets mandatorily at fair value

through profit or loss

11,932

3,248

(357)

14,823

VISA Shares

11,932

3,248

(357)

14,823

Financial assets at fair value through other comprehensive

income

14,812

4,747

19,559

Equity instruments (minority holdings)

14,812

4,747

19,559

Total assets

26,751

3,070

4,747

9,848

(3,385)

(357)

40,674

Financial liabilities designated for trading

(154)

4,033

(3,471)

417

Derivatives financial instruments

(154)

4,033

(3,471)

417

Total liabilities

(154)

4,033

(3,471)

417

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

162

6. ACCOUNTING CLASSIFICATION AND FAIR VALUE OF FINANCIAL ASSETS/LIABILITIES

The table below sets out the Group’s carrying amounts of each class of financial assets and liabilities, and their fair values.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

163

31.12.2024

Group

In RON thousands

Fair

value

level

At fair value

through

profit or

loss - held

for trading

amortized

cost

Financial assets

held at fair value

through other

comprehensive

income

Designated

at fair value

through

profit or

loss

Total carrying

amount

Fair value

Cash and cash equivalents

19,510,086

Financial assets at fair value through profit or loss

32891

Financial assets at fair value through profit or loss

84,002

Financial assets at fair value through profit or loss

9,326

Derivatives assets designated as hedging instruments

165,600

Loans and advances to banks at amortized cost

185,383

182,061

Loans and advances to customers at amortized cost

41,495,113

40,768,827

Net lease receivables

5,089,369

4,896,968

Debt instruments at amortized cost

10,491,352

9,885,197

Debt instruments at amortized cost

105,694

99,587

Financial assets at fair value through other comprehensive

income

1,797,314

Financial assets at fair value through other comprehensive

income

235,362

Financial assets at fair value through other comprehensive

income

40,708

Other financial assets at amortized cost

558,523

Total financial assets

291,819

77,435,520

2,073,384

79,800,723

78,266,452

Financial liabilities at fair value through profit or loss

50,332

Financial liabilities at fair value through profit or loss

552

Derivatives liabilities designated as hedging instruments

158,242

Deposits from banks

1,782,107

Loans from banks, including subordinated liabilities

9,376,453

Debt securities issued

5,760,287

Deposits from customers

52,106,032

Other financial liabilities at amortized cost

1,251,140

Lease liabilities

205,074

Total financial liabilities

209,126

70,481,093

70,690,219

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

164

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

165

6. ACCOUNTING CLASSIFICATION AND FAIR VALUE OF FINANCIAL ASSETS/LIABILITIES (continued)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

166

31.12.2023

Group

In RON thousands

Fair

value

level

At fair value

through

profit or loss

- held for

trading

At amortized

cost

Financial assets

held at fair value

through other

comprehensive

income

Designated

at fair value

through

profit or

loss

Total

carrying

amount

Fair value

Cash and cash equivalents

20,106,053

Financial assets at fair value through profit or loss

76,567

Financial assets at fair value through profit or loss

21,115

Derivatives assets designated as hedging instruments

242,560

Loans and advances to banks at amortized cost

142,096

139,628

Loans and advances to customers at amortized cost

36,196,421

35,548,171

Net lease receivables

4,305,696

4,105,532

Debt instruments at amortized cost

9,541,268

9,134,940

Debt instruments at amortized cost

105,946

117,074

Financial assets at fair value through other comprehensive

income

1,768,213

Financial assets at fair value through other comprehensive

income

228,988

Financial assets at fair value through other comprehensive

income

29,324

Other financial assets at amortized cost

558,257

Total financial assets

340,272

70,955,737

2,026,525

73,322,534

72,076,452

Financial liabilities at fair value through profit or loss

119,836

Financial liabilities at fair value through profit or loss

417

Derivatives liabilities designated as hedging instruments

202,404

Deposits from banks

1,240,982

1,239,905

Loans from banks, including subordinated liabilities

7,358,746

7,357,504

Debt securities issued

4,002,296

Deposits from customers

50,955,312

50,910,995

Other financial liabilities at amortized cost

1,185,038

Lease liabilities

255,803

Total financial liabilities

322,657

64,998,177

65,320,834

65,274,198

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

167

6. ACCOUNTING CLASSIFICATION AND FAIR VALUE OF FINANCIAL ASSETS/LIABILITIES (continued)

The table below sets out the Bank’s carrying amounts of each class of financial assets and liabilities, and their fair values.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

168

31.12.2024

Bank

In RON thousands

Fair

value

level

At fair value

through

profit or

loss - held

for trading

amortized

cost

Financial assets

held at fair value

through other

comprehensive

income

Designated

at fair value

through

profit or loss

Total

carrying

amount

Fair value

Cash and cash equivalents

19,509,849

Financial assets at fair value through profit or loss

32891

Financial assets at fair value through profit or loss

84,002

Financial assets at fair value through profit or loss

9,326

Derivatives assets designated as hedging instruments

165,600

Loans and advances to banks at amortized cost

185,383

182,061

Loans and advances to customers at amortized cost

38,362,383

37,674,973

Net lease receivables

2,243

Debt instruments at amortized cost

10,491,352

9,885,197

Debt instruments at amortized cost

105,694

99,587

Financial assets at fair value through other comprehensive

income

1,797,314

Financial assets at fair value through other comprehensive

income

235,362

Financial assets at fair value through other comprehensive

income

28,423

Other financial assets at amortized cost

487,910

Total financial assets

291,819

69,144,814

2,061,099

71,497,732

70,194,738

Financial liabilities at fair value through profit or loss

50,332

Financial liabilities at fair value through profit or loss

552

Derivatives liabilities designated as hedging instruments

158,242

Deposits from banks

1,782,107

Loans from banks, including subordinated liabilities

1,574,428

Debt securities issued

5,760,287

Deposits from customers

52,740,216

Other financial liabilities at amortized cost

1,137,670

Lease liabilities

200,208

Total financial liabilities

209,126

63,194,916

63,404,042

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

169

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

170

6. ACCOUNTING CLASSIFICATION AND FAIR VALUE OF FINANCIAL ASSETS/LIABILITIES (continued)

The table below sets out the Bank’s carrying amounts of each class of financial assets and liabilities, and their fair values.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

171

31.12.2023

Bank

In RON thousands

Fair

value

level

At fair value

through

profit or loss

- held for

trading

At amortized

cost

Financial assets

held at fair

value through

other

comprehensive

income

Designated

at fair value

through

profit or

loss

Total carrying

amount

Fair value

Cash and cash equivalents

20,105,745

Financial assets at fair value through profit or loss

76,567

Financial assets at fair value through profit or loss

21,115

Derivatives assets designated as hedging instruments

242,560

Loans and advances to banks at amortized cost

142,096

139,628

Loans and advances to customers at amortized cost

33,892,452

33,303,615

Net lease receivables

7,300

Debt instruments at amortized cost

9,541,268

9,134,940

Debt instruments at amortized cost

105,946

117,074

Financial assets at fair value through other comprehensive

income

1,768,213

Financial assets at fair value through other comprehensive

income

228,988

Financial assets at fair value through other comprehensive

income

19,559

Other financial assets at amortized cost

497,953

Total financial assets

340,272

64,292,760

2,016,760

66,649,792

65,663,287

Financial liabilities at fair value through profit or loss

119,836

Financial liabilities at fair value through profit or loss

417

Derivatives liabilities designated as hedging instruments

202,404

Deposits from banks

1,240,982

1,239,905

Loans from banks, including subordinated liabilities

1,427,598

1,426,357

Debt securities issued

4,002,296

Deposits from customers

51,002,566

50,958,249

Other financial liabilities at amortized cost

1,149,294

Lease liabilities

250,414

Total financial liabilities

322,657

59,073,150

59,395,807

59,349,172

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

172

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

173

7. NET INTEREST INCOME

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Interest income

Interest and similar income arising from:

Loans and advances to customers*

2,918,824

2,663,346

2,549,363

2,342,526

Treasury bills and bonds at fair value through

other comprehensive income

96,674

84,174

96,674

84,174

Debt instruments at amortized cost

471,612

376,220

471,612

376,220

Current accounts and placements with banks

796,387

582,913

796,377

582,910

Hedging derivatives

19,535

13,655

19,535

13,655

Total interest income calculated using the

effective interest method

4,303,032

3,720,308

3,933,561

3,399,485

Other interest income - Net Lease receivables

319,175

246,577

Total interest income

4,622,207

3,966,885

3,933,569

3,399,500

Interest expense

Interest expense and similar charges arising

from:

Deposits from customers

1,257,624

1,087,338

1,264,967

1,089,452

Loans from banks

497,167

385,609

116,365

108,118

Deposits from banks

37,020

32,120

37,020

32,120

Repurchase agreements

1,808

426

1,808

426

Interest related to the bonds issued

372,811

297,562

372,811

297,562

Hedging derivatives

61,781

49,754

61,781

49,754

Negative interest on financial assets

Debt from leasing operations

8,824

6,714

8,379

6,149

Defined benefit obligations

508

462

508

462

Total interest expense

2,237,543

1,859,985

1,863,639

1,584,043

Net interest income

2,384,664

2,106,900

2,069,930

1,815,457

*) Interest income as at December 2024 includes expenses with interest adjustments related to credit-impaired financial assets in the

total amount of RON thousands 38,788 (31 December 2023: RON thousands 27,074) for the Group and RON thousands 18,668 (31

December 2023: RON thousands 15,722) for the Bank.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

174

8. NET FEES AND COMMISSIONS INCOME

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Fees and commissions income

Payments transactions

606,131

517,077

606,131

517,077

Risk participation fee (refer to Note 42)

Guarantees and letters of credit

61,695

48,305

61,695

48,305

Loan administration

74,010

79,109

32,852

31,977

Commissions from other types of financial

services

124,231

99,989

140,674

128,972

Commissions from insurance intermediation

83,009

74,239

14,434

13,748

Commissions on securities transactions

8,853

9,146

8,853

9,146

Total fees and commission income

957,929

827,876

864,639

749,236

Out of which commissions from contracts

with clients according to IFRS 15

868,757

736,321

779,456

677,418

Fees and commission expense

Inter-banking fees

214,319

171,626

214,123

171,403

Payments transactions

157,999

115,605

149,907

109,147

Commitments and similar fees

422

332

422

332

Intermediary agents fees

15,326

12,397

6,816

5,854

Other

44,982

34,920

27,885

30,215

Total fees and commissions expense

433,048

334,880

399,153

316,951

Net fees and commissions income

524,881

492,996

465,486

432,285

Disaggregation of fee and commission income

31.12.2024

Group

In RON thousands

CIB

Leasing

Retail &

Treasury

Other

Total

Transaction and banking services

422,256

62,967

285,564

(20)

12,257

783,024

Financing Services

107,124

28,509

27,850

163,483

Asset management, custody and

administration, out of which:

5,995

5,427

11,422

Commissions from assets under

custody

5,987

567

6,554

Commissions from assets under

management

4,860

4,868

Total fees and commission income

535,375

91,476

318,841

(20)

12,257

957,929

31.12.2023

Group

In RON thousands

CIB

Leasing

Retail &

Treasury

Other

Total

Transaction and banking services

360,357

55,024

239,768

(18)

9,762

664,893

Financing Services

92,827

24,825

35,434

153,086

Asset management, custody and

administration, out of which:

5,195

4,702

9,897

Commissions from assets under

custody

5,188

491

5,679

Commissions from assets under

management

4,211

4,218

Total fees and commission income

458,379

79,849

279,904

(18)

9,762

827,876

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

175

8. NET FEES AND COMMISSIONS INCOME (continued)

31.12.2024

Bank

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Transaction and banking services

422,256

319,209

(20)

741,481

Financing Services

107,124

4,612

111,736

Asset management, custody and

administration, out of which:

5,995

5,427

11,422

Commissions from assets under

custody

5,987

567

6,554

Commissions from assets under

management

4,860

4,868

Total fees and commission income

535,375

329,248

(20)

864,639

31.12.2023

Banca

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Transaction and banking services

360,357

272,414

(18)

9,762

642,515

Financing Services

92,827

3,997

96,824

Asset management, custody and

administration, out of which:

5,195

4,702

9,897

Commissions from assets under

custody

5,188

491

5,679

Commissions from assets under

management

4,211

4,218

Total fees and commission income

458,379

281,113

(18)

9,762

749,236

9. NET INCOME FROM TRADING AND OTHER FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT

AND LOSS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Net gains from foreign exchange operations

(including FX derivatives)

488,646

402,087

488,646

402,149

Net gains / (losses) from other interest

derivatives

3,705

2,281

3,705

2,281

Net income / (losses) from trading bonds

5,447

9,874

5,447

9,874

Net gains / (losses) from other derivatives

(102)

Net income from trading financial

instruments held at fair value through profit

or loss

497,824

414,140

497,824

414,202

Net gains from non-transactional financial

instruments held at fair value through profit

or loss

2,660

10,499

2,660

10,499

Net income from financial instruments held at

fair value through profit or loss

500,484

424,639

500,484

424,701

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

176

10. DIVIDENDS INCOME

The Group received dividends from the following companies:

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Transfond S.A.

4,308

3,399

4,308

3,399

Biroul de Credit S.A.

641

469

641

469

Total dividends income

4,949

3,868

4,949

3,868

*) Revenue from dividends on Visa shares is reported under earnings on non-trading financial assets, measured at fair value through

profit or loss.

11. PERSONNEL EXPENSES

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Wages and salaries

579,078

535,936

516,204

473,507

Social security charges, unemployment

fund and health fund

17,354

16,204

15,560

14,542

Share-base payment

2,330

3,795

2,330

3,795

Other (income)/costs

18,862

10,586

15,245

8,415

Total

617,624

566,521

549,339

500,259

The number of employees of the Group at 31 December 2024 was 3,268 (31 December 2023: 3,290). The

number of employees of the Bank at 31 December 2024 was 2,953 (31 December 2023: 2,964).

The Group's key management personnel has the final and general responsibility for the Group and is

represented by the institutional bodies with administration and management role corresponding to the dualist

administration system, respectively:

• The Group's management in its supervisory function, represented by the Supervisory Board, which

fulfills its role of supervision and monitoring of the management decision-making process;

• The senior management/Directorate represented by the members of the Management Board, natural

persons who exercise management functions within the Group and are empowered with the current

management activity of the Group and are responsible for its fulfillment towards the Group

management in its supervisory function;

• Staff members with managerial responsibility over the institution’s control functions (Internal Audit,

Risk Management, Compliance and other functions as locally defined) or material business units or for

specific topics (e.g. accounting policies, finance, human resources);

• Staff members with managerial responsibilities for specific risk categories, including voting members

within relevant Committees, credit risk exposures, authority on certain transactions and authority on

the introduction of new products.

Key management personnel compensation comprised the following:

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Short-term employee benefits

38,776

32,421

32,157

25,889

Share-based payments

2,330

3,795

2,330

3,795

Total

41,106

36,216

34,487

29,684

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

177

11. PERSONNEL EXPENSES (continued)

Qualitative information

1. Description of payment agreements based on own equity instruments

1.1 Outstanding instruments

Group Medium & Long Term Incentive Plans for selected employees of Group subsidiaries include the

following category:

• Equity-Settled Share Based Payments (Equity-Settled SBP), which provide for the delivery of shares.

The category, Equity-Settled SBP, includes the following grants of:

• Group Executive Incentive System (Bonus Pool) that offer to eligible Group executives and relevant

employees identified following regulatory rules, a bonus structure composed by upfront (following the

moment of performance evaluation) and deferred payments in cash and in UniCredit ordinary shares, to be

paid over a period of ranging from 1 to 7 years. This payment structure will guarantee the alignment to

shareholder interest and will be subjected to corporate malus conditions (which applies in case specific

profitability, capital and liquidity thresholds are not met at both Group and country/division level),

individual malus and claw back conditions (as legally enforceable) according to the plan rules (both non-

market vesting conditions);

• Long Term Incentive 2017-2019 that offers to eligible executives and key players of the Group an incentive

100% based on ordinary UniCredit shares, subject to 3-years deferral and to malus and claw-back

conditions, as legally enforceable, according to the plan rules. The plan is structured on 3-years performance

period, aligned to the UniCredit strategic plan and provides for the allocation of an award based on gateway

conditions on profitability, liquidity, capital and risk position and a set of performance conditions focused on

Group targets, aligned with Transform 2019;

• Long Term Incentive 2020-2023 that provides for the allocation of incentives based on free ordinary shares,

subject to the achievement of specific performance conditions to the Strategic Plan Team 23. The Plan is

structured over a four-year performance period, consistent with UniCredit's Strategic Plan, and provides for

the granting of the possible award in 2024. The award is subject to a 4-year deferral period, after the

performance period, and to the respect during the performance period of the minimum conditions of

profitability, capital requirements and liquidity as well as positive assessment of Risk Appetite Framework.

According to Banca d’Italia and EBA requirements and to further strengthen the governance framework, the

Plan includes rules of compliance breaches management, as well as their related impact on remuneration

components, through the application of malus and claw-back clauses.

It is also noted that, according to Banca d’Italia Circular 285 (as of 17

December 2013 and subsequent

updates concerning “Remuneration and incentive policies and practices”), the equity-settled share based

payments, represented by deferred payments in UniCredit ordinary shares not subject to vesting conditions,

are used for the settlement of the so-called golden parachute (e.g. severance) for the relevant employees.

1.2 Measurement model

1.2.1 Group Executive Incentive System (Bonus Pool)

The economic value of performance shares, for the category Equity-Settled SBP, is measured considering the

share market price at the grant date less the present value of the future dividends during the vesting period.

Economic and net equity effects will be accrued on a basis of instruments’ vesting period.

Group Executive Incentive System “Bonus Pool 2023” – Share

The new Group Incentive System 2023 is based on a bonus pool approach, aligned with regulatory

requirements and market practices, which defines:

• sustainability, through direct link with entity results and alignment with relevant risk categories, using

specific indicators linked to risk-appetite framework;

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

178

• the definition of a bonus pool at Group level, with cascading at divisional level consistently with segment

reporting disclosure, based on the actual divisional performance adjusted considering quality and risk

indicators as well as cost of capital;

11. PERSONNEL EXPENSES (continued)

• bonuses allocated to executives and other relevant employee, identified on a basis of regulatory provisions,

embedded in CRD V and in Commission Delegated Regulation (EU) 923/2021 and to other specific roles

identified according to local regulations;

• payment structure has been defined in accordance with regulatory provisions qualified by Directive

2013/36/EU (CRD IV) and further updates and will be distributed in a period of maximum seven years by

using a mix of shares and cash.

All profit and loss and net equity effects related to the plan will be booked during the vesting period.

The plan is divided into clusters, each of which can have three or six installments of share-based payments

spread over a period defined according to plan rules.

1.2.2 Long Term Incentive Plan 2017-2019

The economic value of performance shares is measured considering the share market price at the grant date

less the present value of the future dividends during the vesting period.

The plan is divided into clusters, based on the beneficiary position, each of which can have from one to four

installments of share-based payments spread over a period defined according to plan rules.

1.2.3 Long Term Incentive Plan 2020-2023

The economic value of performance shares is measured considering the share market price at the grant date

less the present value of the future dividends during the vesting period.

The plan is divided into clusters, based on the beneficiary position, each of which can have from one to five

installments of share-based payments spread over a period defined according to plan rules.

Quantitative information

1. Other Information

Effects on Profit and Loss

All Share-Based Payment granted after 7 November 2002 whose vesting period ends after 1 January 2005 are

included within the scope of the IFRS2.

Financial information related to share-based payments.

RON thousands

2024

2023

Total

Costs

4,318

6,897

- connected to Equity Settled Plans

2,408

3,880

- connected to Cash Settled

1,910

3,017

- Paid amount to UniCredit S.p.A. related to Equity Settled plans

2,393

2,570

- Paid amount to employees related to Cash Settled

2,562

2,298

- Accrued Debts towards UniCredit S.p.A.

8,841

8,829

- Accrued Debts towards employees related to Cash Settled

5,012

5,652

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

179

12. DEPRECIATION AND AMORTISATION

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Depreciation expenses related to tangible

assets

26,166

29,315

25,025

27,936

Depreciation expenses related to the rights of

use (please see Note 3n and Note 45)

75,335

76,224

69,003

69,320

Net expenses/(income) from write-off of

property, plant and equipment

1,556

(260)

1,556

(260)

Depreciation expenses of intangible assets

51,757

63,272

46,518

56,700

Net expenses/(income) from disposal of

intangible assets

12,493

12,484

Total

167,307

168,551

154,586

153,696

13. OTHER ADMINISTRATIVE COSTS

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Office space expenses (rental, maintenance,

other)

59,031

52,978

54,157

49,558

IT services

217,470

186,770

210,385

179,825

Contributions to resolution funds and deposit

guarantee schemes

35,579

59,998

35,579

59,998

Other taxes and duties

114,774

8,741

114,774

8,741

Communication expenses

24,717

20,390

22,473

18,251

Advertising and promotional expenses

66,895

48,829

52,555

39,403

Consultancy, legal and other professional

services

15,490

15,963

10,788

11,733

Materials and consumables

18,521

12,198

17,421

10,982

Personnel training and recruiting

4,444

4,101

3,360

2,911

Insurance expenses

4,634

4,526

4,443

4,386

Other

85,839

20,284

79,843

14,635

Total

647,394

434,778

605,778

400,423

The increase in amount under “Other taxes and duties” is due to the tax on turnover, implemented starting

with 2024, which generated a total expense of RON thousands 105,518.

The services provided to the Group and the Bank by the auditing firm KPMG Audit SRL and other companies

from their group, without VAT, were as follows:

in RON thousands

Group

Bank

amounts without VAT

2024 related

fees

2023 related

fees

2024 related

fees

2023 related

fees

Audit of the statutory financial statements

3,163

2,157

2,086

1,165

Other assurance services

1,878

766

1,878

766

Other non-audit services

1,387

1,093

Other tax services

Total

5,041

4,322

3,964

3,024

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

180

14. OTHER OPERATING COSTS

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Expenses with third party services for recovery

of assets

10,539

8,055

Net income/expenses regarding repossessed

assets

3,191

(2,230)

Other operating expenses

31,326

26,437

25,683

21,549

Total

45,056

32,262

25,683

21,549

Other operating costs is represented mainly by amounts used to cover customers debtor balance and account

administration fees, penalties charged by Visa for early termination the contract, integration costs related to

merger with Alpha Bank Romania, stamp duties, fees and other judicial expenses related to litigation files,

expenses related to repossessed goods for leasing activities.

15. NET IMPAIRMENT LOSSES ON FINANCIAL INSTRUMENTS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Net provision charges for loans and advances

to customers (Note 21)

188,432

365,747

129,151

286,857

Net provision charges for banks

(801)

3,192

(789)

3,226

Net provision charges for securities

1,513

2,460

1,513

2,460

Loans written-off

852

765

852

765

Net provision charges for lease receivables

(Note 22)

22,665

26,827

Recoveries from loans previously written-off

(110,228)

(63,776)

(110,228)

(63,776)

Net provisions charges for other financial

instruments

6,714

5,230

6,131

9,414

Net provision release for off-balance loan

commitments and contingencies

(27,101)

(46,868)

(28,397)

(26,157)

Net Impairment losses on financial

instruments

82,046

293,577

(1,767)

212,789

The variation in provisions on 31.12.2024 versus 31.12.2023 is mainly determined by different methodological

changes implemented during the two years (2023 and 2024), but also by slight improvement in FLIs used in

calculation in 2024 vs 2023. While in 2023 the most important methodological change was determined by the

implementation of commercial real estate overlay leading to an LLP charge, in 2024 the most important

methodological change was determined by stage 2 allocation probation period rules applied, generating a LLP

release.

16. NET PROVISIONS LOSSES

In RON thousands

Group

Bank

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Net provision charges/(releases) for litigations

(Note 37)

(1,580)

(5,117)

(768)

(5,477)

Other net charges of provisions (Note 37)

14,325

6,084

14,315

5,576

Net (gains)/losses from provisions

12,745

967

13,547

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

181

17. INCOME TAX

The reconciliation of profit before tax to income tax expense in the income statement is presented below:

Group

In RON thousands

31.12.2024

31.12.2023

Profit/ (Loss) before tax

1,951,122

1,702,581

Income tax calculated by applying regulatory

tax rate (16%)

-16.0%

(312,180)

-16.0%

(272,413)

Additional income tax expense - previous years

-0.4%

(7,292)

0.9%

14,897

Tax effect of non-deductible expenses

-6.1%

(118,162)

1.0%

16,316

Tax effect of non-taxable income

4.6%

90,081

-1.0%

(17,132)

Fiscal credit

2.0%

38,361

3.0%

50,480

Total income tax recalculated

-15.8%

(309,192)

-12.2%

(207,852)

Income tax as per income statement

-16.3%

(317,124)

-15.5%

(264,198)

Difference

(7,932)

(56,346)

Deferred tax

(7,932)

(56,346)

Bank

In RON thousands

31.12.2024

31.12.2023

Profit/ (Loss) before tax

1,737,974

1,528,519

Income tax calculated by applying regulatory

tax rate (16%)

-16.0%

(278,076)

-16.0%

(244,563)

Additional income tax expense - previous years

-0.4%

(7,553)

-0.5%

(7,553)

Tax effect of non-deductible expenses

-5.1%

(88,937)

-4.7%

(72,337)

Tax effect of non-taxable income

3.8%

66,854

4.1%

62,633

Fiscal credit

2.1%

35,751

2.3%

34,950

Total income tax recalculated

-15.6%

(271,961)

-14.8%

(226,870)

Income tax as per income statement

-16.2%

(281,077)

-15.4%

(234,643)

Difference

(9,116)

(7,773)

Deferred tax

(9,116)

(7,773)

The lower effective tax rate is generated by existence of fiscal credit obtained for sponsorship.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

182

18. CASH AND CASH EQUIVALENTS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Accounts at NBR

7,537,362

10,299,807

7,537,362

10,299,807

Cash (including cash in ATMs)

1,455,282

1,429,421

1,455,282

1,429,421

Short term Money Market placements with

banks

10,307,360

8,258,363

10,307,360

8,258,363

Current balances with other banks

215,431

124,597

215,193

124,288

Total gross value

19,515,435

20,112,188

19,515,197

20,111,879

Impairment allowance

(5,349)

(6,135)

(5,348)

(6,134)

Total net book value

19,510,086

20,106,053

19,509,849

20,105,745

The balance of current accounts with the National Bank of Romania represents the minimum reserve

maintained in accordance with the National Bank of Romania requirements. As of 31 December 2024, the

mandatory minimum reserve ratio was 8% (31 December 2023: 8%) for funds raised in RON and 5% (31

December 2023: 5%) for funds in foreign currency with residual maturity of less than 2 years, at the end of the

observation period. For liabilities having residual maturity over 2 years at the end of the observation period,

without reimbursement, conversion or early retirement clauses, mandatory minimum reserve ratio was set at

0% (31 December 2023: 0%).

19. FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

• Financial assets at fair value through profit or loss

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Derivatives

84,553

76,982

84,553

76,982

Investment securities held for

trading

32,891

5,907

32,891

5,907

VISA Shares*

8,775

14,823

8,775

14,823

Total

126,219

97,712

126,219

97,712

*) VISA Inc shares class C are classified as “Debt Instruments – Financial assets at fair value through profit and

loss” (as described in Note 3 b1) iv) and Note 3 o) iii).

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Investment-grade

116,077

87,733

116,077

87,733

No rating*

10,142

9,979

10,142

9,979

Total

126,219

97,712

126,219

97,712

*) The majority of these represent financial assets at fair value through profit or loss (derivatives contracts) for

which the counterparties are Romanian companies.

The analysis is based on the ratings issued by Standard & Poor, if available, or by Moody's and Fitch converted

to the nearest equivalent on the Standard & Poor rating scale..

The investment-grade category includes financial assets at fair value through profit or loss (derivatives

contracts, investment securities held for trading, VISA shares) for which the counterparties have the following

ratings: A+, A, A-, BBB+, BBB, BBB-, BAA1 and BAA3.

The Non-investment grade category includes financial assets at fair value through profit or loss for which the

counterparties have the following ratings: BB+, BB- and B+.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

183

The No-rating category includes financial assets at fair value through profit or loss for which the counterparties

have no ratings.

19. FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)

• Derivative assets/ liabilities

Group

Bank

31.12.2024

In RON thousands

Notional

amount

Present value

Notional

amount

Present value

Assets

Liabilities

Assets

Liabilities

Foreign currency Derivatives

Forward contracts

5,474,197

42,909

6,179

5,474,197

42,909

6,179

Purchased options

92,932

579

92,932

579

Sold options

92,932

579

92,932

579

Total foreign currency

derivatives

5,660,061

43,488

6,758

5,660,061

43,488

6,758

Interest rates derivatives

Interest Rate Swaps

1,990,915

39,565

42,624

1,990,915

39,565

42,624

Purchased options

102,750

1,500

102,750

1,500

Sold options

102,750

1,502

102,750

1,502

Total interest rate derivatives

2,196,415

41,065

44,126

2,196,415

41,065

44,126

Total

7,856,476

84,553

50,884

7,856,476

84,553

50,884

Group

Bank

31.12.2023

In RON thousands

Notional

amount

Present value

Notional

amount

Present value

Assets

Liabilities

Assets

Liabilities

Foreign currency Derivatives

Forward contracts

3,624,520

13,341

31,497

3,624,520

13,341

31,497

Purchased options

70,806

548

70,806

548

Sold options

548

Total foreign currency

derivatives

3,695,326

13,889

32,045

3,695,326

13,889

32,045

Interest rates derivatives

Interest Rate Swaps

2,308,193

61,535

86,602

2,308,193

61,535

86,602

Purchased options

111,900

1,558

111,900

1,558

Sold options

111,900

1,558

111,900

1,558

Total interest rate derivatives

2,531,993

63,093

88,160

2,531,993

63,093

88,160

Other derivatives on purchased

merchandise

347

Other derivatives on sold

merchandise

Total derivatives - merchandise

347

Total

6,227,666

76,982

120,253

6,227,666

76,982

120,253

As at 31 December 2024, the Bank has non-matured SPOT foreign currency transactions, as follows: assets

notional amount RON thousands 1,949,366 (as at 31 December 2023: RON thousands 1,550,064) and liabilities

notional amount RON thousands 1,949,220 (as at 31 December 2023: RON thousands 1,550,256). The net

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

184

present value for SPOT transactions amounted to RON thousands 146 (asset) (as at 31 December 2023: RON

thousands 192 (liability)).

20. LOANS AND ADVANCES TO BANKS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Loans to banks - non-residents

184,638

142,096

184,638

142,096

Loans to banks - residents

745

Total

185,383

142,096

185,383

142,096

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Investment-grade

185,383

142,096

185,383

142,096

Total

185,383

142,096

185,383

142,096

The analysis is based on the ratings issued by Standard & Poor, if available, or by Moody's and Fitch converted

to the nearest equivalent on the Standard & Poor rating scale.

The investment-grade category includes loans to banks for which the debtor has the following ratings: A+, A,

A-, BBB+, BBB, BBB-, BAA1 and BAA3.

For further details on the asset quality of this portfolio please see Note 4.c.(ii) – Loans and advances to banks.

21. LOANS AND ADVANCES TO CUSTOMERS

The Group’s commercial lending is concentrated on companies and individuals located mainly in Romania. The

below amounts show gross book value and provision for impairment after including IRC.

The breakdown of loan portfolio by type of loan was as follows:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

185

Group

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2024

Mortgages

8,328,558

196,042

8,524,600

Personal loans and car loans

3,854,464

82,150

3,936,614

Credit cards and overdraft

340,896

14,296

355,192

Corporate loans

26,804,863

943,289

27,748,152

Retail Micro loans

2,040,568

96,791

2,137,359

Factoring, Discounting, Forfaiting

756,908

50,045

806,953

Loans and advances to customers before provisions

42,126,257

1,382,613

43,508,870

Less provision for impairment losses on loans

(1,057,990)

(955,767)

(2,013,757)

Net loans and advances to customers

41,068,267

426,846

41,495,113

Group

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2023

Mortgages

7,439,063

198,198

7,637,261

Personal loans and car loans

2,957,276

65,855

3,023,131

Credit cards and overdraft

285,377

10,805

296,182

Corporate loans

23,652,286

652,538

24,304,824

Retail Micro loans

2,011,461

83,881

2,095,342

Factoring, Discounting, Forfaiting

663,749

82,005

745,754

Loans and advances to customers before

provisions

37,009,212

1,093,282

38,102,494

Less provision for impairment losses on loans

(1,124,540)

(781,533)

(1,906,073)

Net loans and advances to customers

35,884,672

311,749

36,196,421

21. LOANS AND ADVANCES TO CUSTOMERS (continued)

The Bank’s commercial lending is concentrated on companies and individuals located in Romania mainly. The

breakdown of loan portfolio by type of loan was as follows:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

186

Bank

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2024

Mortgages

8,328,558

196,042

8,524,600

Personal loans and car loans

4,992

1,628

6,620

Credit cards and overdraft

109,504

9,601

119,105

Corporate loans

28,896,381

943,289

29,839,670

Retail Micro loans

724,395

44,605

769,000

Factoring, Discounting, Forfaiting

756,908

50,045

806,953

Loans and advances to customers before provisions

38,820,738

1,245,210

40,065,948

Less provision for impairment losses on loans

(835,096)

(868,469)

(1,703,565)

Net loans and advances to customers

37,985,642

376,741

38,362,383

Bank

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2023

Mortgages

7,439,063

198,198

7,637,261

Personal loans and car loans

8,260

1,884

10,144

Credit cards and overdraft

116,416

6,931

123,347

Corporate loans

25,622,836

652,538

26,275,374

Retail Micro loans

653,477

37,528

691,005

Factoring, Discounting, Forfaiting

663,749

82,005

745,754

Loans and advances to customers before provisions

34,503,801

979,084

35,482,885

Less provision for impairment losses on loans

(888,347)

(702,086)

(1,590,433)

Net loans and advances to customers

33,615,454

276,998

33,892,452

The movements in loan allowances for impairment are summarized as follows:

Group

in RON thousands

31.12.2024

31.12.2023

Balance at the 31st of December

1,906,073

1,853,937

Net impairment charge for the period (Note

15)

188,432

365,747

Foreign currency exchange effect

201

4,079

Release of allowances for impairment of loans

written-off and loans sold

(125,462)

(362,710)

Other adjustments

44,513

45,020

Final balance at 31 December

2,013,757

1,906,073

Bank

in RON thousands

31.12.2024

31.12.2023

Balance at the 31st of December

1,590,433

1,579,233

Net impairment charge for the period (Note

15)

129,151

286,857

Foreign currency exchange effect

178

3,914

Release of allowances for impairment of loans

written-off and loans sold

(59,844)

(322,970)

Other adjustments

43,647

43,399

Final balance at 31 December

1,703,565

1,590,433

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

187

22. NET FINANCIAL LEASE RECEIVABLES

The Group acts as lessor for the finance lease granted mainly to finance purchases of cars, trucks and trailers,

equipment and real estate. Lease contracts are mainly in EUR, USD and RON, and are offered for a period

between 1 and 15 years, transferring the ownership on the leased assets at the end of lease contract. The

interest is invoiced over the lease period using equal instalments. Lease receivables are guaranteed by the

goods leased and other guarantees.

The values below indicate the gross carrying amount and the adjustment for impairment including IRC. The

split of net lease receivable by stages and by maturities is presented in the following table below:

UCLC (Unicredit Leasing Corporation)

31.12.2024

in RON thousands

Total, of

which

Stage 1

Stage 2

Stage 3

Lease receivables up to one year, gross

1,971,530

1,580,264

227,619

163,647

Lease receivables 1-2 years, gross

1,600,497

1,355,236

165,955

79,306

Lease receivables 2-3 years, gross

1,145,686

985,397

120,215

40,074

Lease receivables 3-4 years, gross

714,950

626,723

67,549

20,678

Lease receivables 4-5 years, gross

331,095

285,763

33,202

12,130

Lease receivables over 5 years, gross

222,776

147,034

34,176

41,566

Total contractual undiscounted lease

payments receivable

5,986,534

4,980,417

648,716

357,401

Unearned finance income (future interest)

(565,123)

(463,717)

(65,194)

(36,212)

Total gross lease investment net of future

interest and unguaranteed residual value

5,421,411

4,516,700

583,522

321,189

Impairment allowance for lease receivables

(332,042)

(124,460)

(32,800)

(174,782)

Total net lease investment

5,089,369

4,392,240

550,722

146,407

UCLC (Unicredit Leasing Corporation)

31.12.2023

in RON thousands

Total, of which

Stage 1

Stage 2

Stage 3

Lease receivables up to one year, gross

1,751,073

1,515,657

104,885

130,531

Lease receivables 1-2 years, gross

1,380,638

1,253,786

80,451

46,401

Lease receivables 2-3 years, gross

982,187

891,131

55,284

35,772

Lease receivables 3-4 years, gross

611,007

551,609

39,072

20,326

Lease receivables 4-5 years, gross

293,133

262,510

19,831

10,792

Lease receivables over 5 years, gross

175,591

87,987

39,058

48,546

Total contractual undiscounted lease payments

receivable

5,193,629

4,562,680

338,581

292,368

Unearned finance income (future interest)

(568,700)

(473,585)

(50,727)

(44,388)

Total gross lease investment net of future interest and

unguaranteed residual value

4,624,929

4,089,095

287,854

247,980

Impairment allowance for lease receivables

(319,233)

(111,201)

(34,098)

(173,934)

Total net lease investment

4,305,696

3,977,894

253,756

74,046

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

188

22. NET FINANCIAL LEASE RECEIVABLES (continued)

The movements in impairment allowances for lease receivables are summarized as follows:

UCLC (Unicredit Leasing Corporation)

in RON thousands

31.12.2024

31.12.2023

Balance at the 31st of December

319,233

291,572

Net impairment charge for the period (Note

15)

22,665

26,827

Foreign currency exchange effect

(72)

(138)

Release of allowances for impairment of loans

written-off and loans sold

(17,826)

(8,073)

Unwinding effect on provisions

8,042

9,045

Balance at 31 December

332,042

319,233

The split between leas receivables on credit types was made as follows:

UCLC (Unicredit Leasing Corporation)

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2024

Leasing receivables - real estate assets

financed

298,830

74,132

372,962

Other leasing receivables - legal entities and retail:

Leasing receivables - vehicles financed

3,532,042

120,463

3,652,505

Leasing receivables - equipment for agriculture

financed

231,156

49,755

280,911

Leasing receivables - equipment for

construction financed

331,657

18,566

350,223

Leasing receivables - other equipment

financed

706,537

58,273

764,810

Leasing receivables before provisions

5,100,222

321,189

5,421,411

Less impairment allowance for lease

receivables

(157,260)

(174,782)

(332,042)

Net lease receivables

4,942,962

146,407

5,089,369

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

189

UCLC (Unicredit Leasing Corporation)

in RON thousands

Stage 1 and Stage 2

Stage 3

31.12.2023

Leasing receivables - real estate assets

financed

212,077

78,701

290,778

Other leasing receivables - legal entities and retail:

Leasing receivables - vehicles financed

2,973,489

98,146

3,071,635

Leasing receivables - equipment for agriculture

financed

239,962

13,370

253,332

Leasing receivables - equipment for

construction financed

285,577

6,161

291,738

Leasing receivables - other equipment

financed

665,844

51,602

717,446

Leasing receivables before provisions

4,376,949

247,980

4,624,929

Less impairment allowance for lease

receivables

(145,299)

(173,934)

(319,233)

Net lease receivables

4,231,650

74,046

4,305,696

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

190

23. FINANCIAL ASSETS HELD AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

The Group held the following financial assets at fair value through other comprehensive income:

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Investment securities held at fair value

through other comprehensive income

2,032,676

1,997,201

2,032,676

1,997,201

Equity investments (minority holdings)

40,708

29,324

28,423

19,559

Total

2,073,384

2,026,525

2,061,099

2,016,760

As at 31 December 2024, the Group included in investment securities held at fair value through other

comprehensive income bonds, T-bills issued by Romanian Government, bonds issued by the municipality of

Bucharest and bonds issued by the Ministry of Public Finance.

Group

Bank

in RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Investment-grade

2,032,676

1,997,201

2,032,676

1,997,201

No rating*

40,708

29,324

28,423

19,559

Total

2,073,384

2,026,525

2,061,099

2,016,760

*) It represent the equity investments (minority holdings) in companies incorporated in Romania.

The analysis is based on the ratings issued by Standard & Poor, if available, or by Moody's and Fitch converted

to the nearest equivalent on the Standard & Poor rating scale.

The investment-grade category includes financial assets at fair value through other comprehensive income for

which the debtor has the following ratings: A+, A, A-, BBB+, BBB, BBB-, BAA1 and BAA3.

The Non-investment grade category includes financial assets at fair value through other comprehensive income

for which the debtor has the following ratings: BB+, BB- and B+.

The No-rating category includes financial assets at fair value through other comprehensive income for which

the debtor has no ratings.

As at 31 December 2024 and 31 December 2023, there are no pledged on the investment securities held at fair

value through other comprehensive income.

The Group transferred to profit or loss during 2024 an amount of RON thousands -788 (2023: RON thousands

-11,979) representing net loss from disposal of financial assets at fair value through other comprehensive

income investment securities.

Equity investments

The Group held the following unlisted equity investments, financial assets held at fair value through other

comprehensive income as at 31 December 2024 and 31 December 2023:

31.12.2024

Group

In RON thousands

Nature of business

% Interest

held

Fair value

UniCredit Leasing Fleet Management

Operational leasing

9.99%

12,285

Transfond SA

Other financial services

8.04%

24,995

Biroul de Credit SA

Financial services

6.80%

3,428

Total

40,708

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

191

23. FINANCIAL ASSETS HELD AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (continued)

31.12.2023

Group

In RON thousands

Nature of business

% Interest

held

Fair value

UniCredit Leasing Fleet Management

Operational leasing

9.99%

9,765

Transfond SA

Other financial services

8.04%

17,334

Biroul de Credit SA

Financial services

6.80%

2,225

Total

29,324

The above mentioned companies are incorporated in Romania.

The Bank held the following unlisted equity investments classified as FVTOCI as at 31 December 2024 and 31

December 2023:

31.12.2024

Bank

In RON thousands

Nature of business

% Interest

held

Fair value

Transfond SA

Other financial services

8.04%

24,995

Biroul de Credit SA

Financial services

6.80%

3,428

Total

28,423

31.12.2023

Bank

In RON thousands

Nature of business

% Interest

held

Fair value

Transfond SA

Other financial services

8.04%

17,334

Biroul de Credit SA

Financial services

6.80%

2,225

Total

19,559

The above mentioned companies are incorporated in Romania.

24. FINANCIAL ASSETS (DEBT INSTRUMENTS) AT AMORTIZED COST

As at 31 December 2024, the Group and the Bank held debt instruments at amortized cost representing bonds

and T-bills issued by Romanian Government in amount of RON thousands 10,597,046 (31 December 2023 RON

thousands 9,647,214).

As at 31 December 2024, the debt instruments at amortized cost are pledged in amount of RON thousands

186,967 (31 December 2023: RON thousands 303,061).

As at 31 December 2024 and 31 December 2023 the Group and the Bank held debt instruments at amortized

cost included in the investment-grade category, having the rating “BBB-“ according to Standard & Poor.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

192

25. INVESTMENTS IN SUBSIDIARIES

Bank

31.12.2024

31.12.2023

In RON thousands

Nature of business

Country of

incorporation

% interest held

Carrying amount

% interest held

Carrying amount

UniCredit Consumer Financing IFN S.A.

Consumer finance

Romania

50.10%

64,767

50.10%

64,767

UniCredit Leasing Corporation IFN S.A.

Leasing services

Romania

99.98%

78,349

99.98%

78,349

Total

143,116

The following information is taken from the individual un-audited financial information for consolidation purpose of the subsidiaries, prepared in accordance with

the accounting policies of the UniCredit Group, which is based on the IFRS standards adopted by the European Union:

31.12.2024

Bank

In RON thousands

% Interest held

Total assets

Total liabilities

Operating income

Profit / (Loss)

31.12.2024

UniCredit Consumer Financing IFN S.A.

50.10%

4,249,408

3,864,278

171,070

43,325

UniCredit Leasing Corporation IFN S.A.

99.98%

7,197,019

6,344,713

276,421

139,366

31.12.2023

UniCredit Consumer Financing IFN S.A.

50.10%

3,213,257

2,861,675

166,489

30,397

UniCredit Leasing Corporation IFN S.A.

99.98%

6,384,436

5,673,698

226,751

125,874

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

193

25. INVESTMENTS IN SUBSIDIARIES (continued)

The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities

other than those resulting from the supervisory frameworks within which banking subsidiaries operate. The

supervisory frameworks require banking subsidiaries to keep certain levels of regulatory capital and liquid

assets, limit their exposure to other parts of the Group and comply with other ratios. The carrying amounts of

banking subsidiaries’ assets and liabilities are presented above.

The following table summarises the information relating to the Group’s subsidiary that has material non-

controlling interest, which is UniCredit Consumer Financing IFN S.A.:

UniCredit Consumer Financing IFN S.A.

Non-controlling percentage

49.90%

In RON thousands

2024

2023

Total assets

4,249,408

3,213,257

Total liabilities

3,864,278

2,861,675

Net assets

385,130

351,582

Carrying amount of non-controlling interest

192,180

175,439

Operating income

171,070

166,489

Profit / (Loss)

43,325

30,397

Total comprehensive income

43,325

30,397

Profit allocated to non-controlling interest

21,619

15,168

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

194

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

195

26. PROPERTY, PLANT AND EQUIPMENT

31.12.2024

Group

In RON thousands

Land and

buildings

Computers and

equipment

Motor vehicles

Furniture and

other assets

Assets in course

of production

Total

Cost

Balance at 1 January 2024

86,937

177,877

104,130

27,568

396,606

Additions

3,582

1,403

2,269

10,764

18,018

Revaluation - cancel cumulated depreciation

(6,784)

Revaluation*

2,894

Disposals

(1,051)

(79)

(516)

(9,437)

(11,083)

Balance at 31 December 2024

86,629

178,229

105,883

28,895

399,651

Depreciation and impairment losses

Balance at 1 January 2024

(680)

(160,867)

(58)

(63,653)

(225,258)

Charge for the year

(7,021)

(8,390)

(36)

(10,719)

(26,166)

Revaluation - cancel cumulated depreciation

6,784

Disposals

1,015

469

1,563

Balance at 31 December 2024

(917)

(168,242)

(15)

(73,903)

(243,077)

Carrying amounts

At 1 January 2024

86,257

17,010

40,477

27,568

171,348

At 31 December 2024

85,712

9,987

31,980

28,895

156,574

* The most recent revaluation for the land and builings class was performed by an external evaluator as of 31 December 2024. In accordance with the International Standards for Valuation, the estimation

of fair value was perfomed by the valuator using two alternative aprroaches, income approach and market approach, using the most approapriate one depending on the nature and purpose of each

element.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

196

26. PROPERTY, PLANT AND EQUIPMENT (continued)

31.12.2023

Group

In RON thousands

Land and

buildings

Computers and

equipment

Motor vehicles

Furniture and

other assets

Assets in course

of production

Total

Cost

Balance at 1 January 2023

76,456

184,162

152

106,063

26,513

393,346

Additions

10,440

1,326

1,694

14,176

27,636

Revaluation - cancel cumulated depreciation

(6,503)

Revaluation*

6,545

Disposals

(7,612)

(58)

(3,627)

(13,122)

(24,419)

Balance at 31 December 2023

86,937

177,877

104,130

27,568

396,606

Depreciation and impairment losses

Balance at 1 January 2023

(447)

(157,331)

(107)

(55,709)

(213,594)

Charge for the year

(6,787)

(11,105)

(9)

(11,414)

(29,315)

Revaluation - cancel cumulated depreciation

6,503

Disposals

7,569

3,470

11,148

Balance at 31 December 2023

(680)

(160,867)

(58)

(63,653)

(225,258)

Carrying amounts

At 1 January 2023

76,009

26,831

50,354

26,513

179,752

At 31 December 2023

86,257

17,010

40,477

27,568

171,348

* For the period ended December 31, 2023, the revaluation for the land and builings class was performed by an external evaluator. In accordance with the International Standards for Valuation, the

estimation of fair value was perfomed by the valuator using two alternative aprroaches, income approach and market approach, using the most approapriate one depending on the nature and purpose

of each element.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

197

26. PROPERTY, PLANT AND EQUIPMENT (continued)

31.12.2024

Bank

In RON thousands

Land and

buildings

Computers and

equipment

Motor vehicles

Furniture and

other assets

Assets in course

of production

Total

Cost

Balance at 1 January 2024

85,901

172,049

102,586

27,568

388,104

Additions

3,582

1,392

2,228

10,764

17,966

Revaluation - cancel cumulated depreciation

(6,784)

Revaluation*

2,894

Disposals

(1,028)

(486)

(9,437)

(10,951)

Balance at 31 December 2024

85,593

172,413

104,328

28,895

391,229

Depreciation and impairment losses

Balance at 1 January 2024

(156,100)

(63,004)

(219,104)

Charge for the year

(6,784)

(7,856)

(10,385)

(25,025)

Revaluation - cancel cumulated depreciation

6,784

Disposals

992

440

1,432

Balance at 31 December 2024

(162,964)

(72,949)

(235,913)

Carrying amounts

At 1 January 2024

85,901

15,949

39,582

27,568

169,000

At 31 December 2024

85,593

9,449

31,379

28,895

155,316

of fair value was perfomed by the valuator using two alternative aprroaches, income approach and market approach, using the most approapriate one depending on the nature and purpose of each

element.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

198

26. PROPERTY, PLANT AND EQUIPMENT (continued)

31.12.2023

Bank

In RON thousands

Land and

buildings

Computers and

equipment

Motor vehicles

Furniture and

other assets

Assets in course

of production

Total

Cost

Balance at 1 January 2023

75,420

178,642

104,528

26,513

385,103

Additions

10,440

997

1,685

14,176

27,298

Revaluation - cancel cumulated depreciation

(6,503)

Revaluation*

6,545

Disposals

(7,591)

(3,627)

(13,122)

(24,340)

Balance at 31 December 2023

85,901

172,049

102,586

27,568

388,104

Depreciation and impairment losses

Balance at 1 January 2023

(153,287)

(55,401)

(208,688)

Charge for the year

(6,503)

(10,359)

(11,074)

(27,936)

Revaluation - cancel cumulated depreciation

6,503

Disposals

7,547

3,471

11,018

Balance at 31 December 2023

(156,100)

(63,004)

(219,104)

Carrying amounts

At 1 January 2023

75,420

25,355

49,127

26,513

176,415

At 31 December 2023

85,901

15,949

39,582

27,568

169,000

* For the period ended December 31, 2023, the revaluation for the land and builings class was performed by an external evaluator. In accordance with the International Standards for Valuation, the

estimation of fair value was perfomed by the valuator using two alternative aprroaches, income approach and market approach, using the most approapriate one depending on the nature and purpose

of each element.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

199

27. INTANGIBLE ASSETS

31.12.2024

Group

In RON thousands

Intangible assets

Intangible assets in

progress

Total

Balance at 1 January 2024

481,081

211,215

692,296

Additions

7,679

127,000

134,679

Transfers

134,270

(134,270)

Disposals

(11,979)

(12,494)

(24,473)

Balance at 31 December 2024

611,051

191,451

802,502

Depreciation and impairment losses

Balance at 1 January 2024

(267,420)

Charge for the year

(51,757)

Disposals

11,802

Balance at 31 December 2024

(307,375)

Carrying amounts

At 1 January 2024

213,661

211,215

424,876

At 31 December 2024

303,676

191,451

495,127

31.12.2023

Group

In RON thousands

Intangible assets

Intangible assets in

progress

Total

Balance at 1 January 2023

400,497

207,153

607,650

Additions

8,636

118,441

127,077

Transfers

114,379

(114,379)

Disposals

(42,431)

Balance at 31 December 2023

481,081

211,215

692,296

Depreciation and impairment losses

Balance at 1 January 2023

(244,868)

Charge for the year

(63,272)

Disposals

40,719

Balance at 31 December 2023

(267,420)

Carrying amounts

At 1 January 2023

155,629

207,153

362,782

At 31 December 2023

213,661

211,215

424,876

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

200

27. INTANGIBLE ASSETS (continued)

31.12.2024

Bank

In RON thousands

Intangible assets

Intangible assets in

progress

Total

Balance at 1 January 2024

430,271

211,215

641,486

Additions

581

125,020

125,601

Transfers

134,270

(134,270)

Disposals

(10,828)

(12,485)

(23,313)

Balance at 31 December 2024

554,294

189,480

743,774

Depreciation and impairment losses

Balance at 1 January 2024

(235,378)

Charge for the year

(46,518)

Disposals

10,829

Balance at 31 December 2024

(271,067)

Carrying amounts

At 1 January 2024

194,893

211,215

406,108

At 31 December 2024

283,227

189,480

472,707

31.12.2023

Bank

In RON thousands

Intangible assets

Intangible assets in

progress

Total

Balance at 1 January 2023

353,408

207,153

560,561

Additions

118,441

Transfers

114,379

(114,379)

Disposals

(37,516)

Balance at 31 December 2023

430,271

211,215

641,486

Depreciation and impairment losses

Balance at 1 January 2023

(216,195)

Charge for the year

(56,700)

Disposals

37,516

Balance at 31 December 2023

(235,378)

Carrying amounts

At 1 January 2023

137,213

207,153

344,366

At 31 December 2023

194,893

211,215

406,108

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

201

28. DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and deferred tax liabilities at 31 December 2024 are attributable to the items detailed in

the table below:

31.12.2024

Group

Bank

In RON thousands

Assets

Liabilities

Net

Assets

Liabilities

Net

Net lease receivables

6,653

Other assets

874

Provisions, other debts, forecasted

expenses

53,205

517

52,688

49,569

Financial assets at amortised cost

970

Deferred tax asset/ (liability) at 16%

through profit and loss account

61,702

517

61,185

50,539

FVTOCI instruments

12,266

8,684

3,582

12,266

7,094

5,172

Derivative financial instruments held

for hedging

1,166

Tangible fixed assets revaluation

reserve

979

16,046

(15,067)

979

16,046

(15,067)

Deferred tax asset/ (liability) at 16%

through equity

14,411

24,730

(10,319)

14,411

23,140

(8,729)

Deferred tax asset/ (liability) at 16%

76,113

25,247

50,866

64,950

23,140

41,810

Deferred tax assets and deferred tax liabilities at 31 December 2023 are attributable to the items detailed in

the table below:

31.12.2023

Group

Bank

In RON thousands

Assets

Liabilities

Net

Assets

Liabilities

Net

Net lease receivables

5,212

Property, equipment and intangible

assets

979

10,338

(9,359)

979

10,338

(9,359)

Other assets

384

Provisions, other debts, forecasted

expenses

58,458

370

58,088

54,194

Financial assets at amortised cost

749

Deferred tax asset/ (liability) at 16%

through profit and loss account

65,782

10,708

55,074

55,950

10,338

45,612

FVTOCI instruments

11,410

8,735

2,675

11,410

7,548

3,862

Derivative financial instruments held

for hedging

1,239

Tangible fixed assets revaluation

reserve

1,027

(1,027)

1,027

(1,027)

Deferred tax asset/ (liability) at 16%

through equity

12,649

9,762

2,887

12,649

8,575

4,074

Deferred tax asset/ (liability) at 16%

78,431

20,470

57,961

68,599

18,913

49,686

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

202

28. DEFERRED TAX ASSETS AND LIABILITIES (continued)

Taxes recognized in other comprehensive income at 31 December 2024 are presented in the table below:

31.12.2024

Group

Bank

In RON thousands

Before

Tax

Deferred

Tax

Net of tax

Before

Tax

Deferred

Tax

Net of tax

FVTOCI reserve i)

(21,327)

3,582

(17,745)

(31,265)

5,172

(26,093)

Cash flow hedging reserve ii)

(7,285)

1,166

(6,119)

(7,285)

1,166

(6,119)

Revaluation reserve on property, plant

and equipment iii)

25,279

(985)

24,294

25,279

(985)

24,294

Taxes recognized in other comprehensive income at 31 December 2023 are presented in the table below:

31.12.2023

Group

Bank

In RON thousands

Before

Tax

Deferred

Tax

Net of tax

Before

Tax

Deferred

Tax

Net of tax

FVTOCI reserve i)

(15,860)

2,675

(13,185)

(23,278)

3,862

(19,416)

Cash flow hedging reserve ii)

(7,745)

1,239

(6,506)

(7,745)

1,239

(6,506)

Revaluation reserve on property, plant

and equipment iii)

6,419

(1,027)

5,392

6,419

(1,027)

5,392

i) The movements in the Reserve for financial assets at fair value through other comprehensive income at 31

December 2024 are presented below:

31.12.2024

Group

Bank

In RON thousands

Before

tax

Deferred

Tax

Net of tax

Before

tax

Deferred

Tax

Net of tax

January 1

(15,860)

2,675

(13,185)

(23,278)

3,862

(19,416)

Transfer to profit and loss

788

(126)

662

788

(126)

662

Net change in other comprehensive

income

(6,255)

1,033

(5,222)

(8,775)

1,436

(7,339)

December 31

(21,327)

3,582

(17,745)

(31,265)

5,172

(26,093)

The movements in the Reserve for financial assets at fair value through other comprehensive income at 31

December 2023 are presented below:

31.12.2023

Group

Bank

In RON thousands

Before

tax

Deferred

Tax

Net of tax

Before

tax

Deferred

Tax

Net of tax

January 1

(129,076)

20,652

(108,424)

(129,076)

20,652

(108,424)

Transfer to profit and loss

11,979

(1,917)

10,062

11,979

(1,917)

10,062

Net change in other comprehensive

income

101,237

(16,060)

85,177

93,819

(14,873)

78,946

December 31

(15,860)

2,675

(13,185)

(23,278)

3,862

(19,416)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

203

28. DEFERRED TAX ASSETS AND LIABILITIES (continued)

ii) The movements in the Cash flow hedging reserve at 31 December 2024 are presented below:

31.12.2024

Group

Bank

mii RON

Before

tax

Deferred

Tax

Net of tax

Before

tax

Deferred

Tax

Net of tax

1 January

(7,745)

1,239

(6,506)

(7,745)

1,239

(6,506)

Transfer to profit and loss

232

(37)

195

232

(37)

195

Net change in other comprehensive

income

228

(36)

192

228

(36)

192

31 December

(7,285)

1,166

(6,119)

(7,285)

1,166

(6,119)

The movements in the Cash flow hedging reserve at 31 December 2023 are presented below:

31.12.2023

Group

Bank

mii RON

Before tax

Deferred

Tax

Net of tax

Before tax

Deferred

Tax

Net of tax

January 1

(8,930)

1,429

(7,501)

(8,930)

1,429

(7,501)

Transfer to profit and loss

(11)

Net change in other comprehensive

income

1,119

(179)

940

1,119

(179)

940

December 31

(7,745)

1,239

(6,506)

(7,745)

1,239

(6,506)

29. OTHER FINANCIAL AND NON-FINANCIAL ASSETS

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

204

Group

Bank

In RON Thousand

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Other financial assets

Suspense accounts - banks

145,762

120,885

145,762

120,885

Suspense accounts - non-banks

222,895

319,511

222,895

319,511

Sundry debtors

134,758

124,578

61,982

60,604

Collateral deposits

2,190

1,846

2,190

2,212

Amounts receivables

73,030

11,353

74,827

14,461

Total gross amounts

578,635

578,173

507,656

517,673

Less impairment for sundry debtors

(20,112)

(19,916)

(19,746)

(19,720)

Total other financial assets

558,523

558,257

487,910

497,953

Other non-financial assets

Sundry debtors

20,116

19,957

21,385

19,927

Prepaid Expenses

177,639

342,517

48,162

36,376

Inventories (including repossessed assets)

33,405

9,772

Other

93,266

59,606

6,547

7,574

Total gross amounts

324,426

431,852

76,094

63,924

Less impairment for sundry debtors

(12,494)

(12,420)

(12,494)

(12,420)

Total other non-financial assets

311,932

419,432

63,600

51,504

Total other assets

870,455

977,689

551,510

549,457

The Group booked as prepayments, during 2024 and 2023 prepaid rents, local taxes, insurance for premises

and professional liability insurance (bankers’ blanket bond insurance).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

205

29. OTHER FINANCIAL AND NON-FINANCIAL ASSETS (continued)

Repossessed assets

The Group and the Bank have the following assets from workout process arisen during normal course of

business:

Group

In RON Thousand

Inventories*

Non-current

assets and

disposal

groups

classified as

held for

sale***

Property,

plant and

equipment**

Total

Balance at 31 of December 2023

9,533

1,343

10,876

Balance at 31 of December 2024

33,165

1,343

34,508

* Repossessed assets are presented in Inventories line – Other non-financial assets from Statement of Financial Position.

** Carrying amount of inventories-repossessed assests reclassified to Property, Plant and Equipment.

Inventories - Repossessed assets

Group

In RON Thousand

31.12.2024

31.12.2023

Gross value at 01 January

11,760

8,409

Additions

46,064

14,447

Disposals

(19,242)

(11,097)

Gross value at 31 December

38,582

11,760

Impairments

(5,417)

(2,226)

Carrying amount at 31 December

33,165

9,533

Impairments - Repossessed assets

Group

In RON Thousand

31.12.2024

31.12.2023

Balance at 01 January

2,226

2,174

Charges with impairments - repossessed assets

4,260

959

Release of impairments - repossessed assets

(1,069)

(906)

Balance at 31 December

5,417

2,226

30. DERIVATIVES ASSETS/LIABILITIES DESIGNATED AS HEDGING INSTRUMENTS

The Group uses interest rate swaps to hedge interest rate risks arising from customers’ deposits, loans and

securities.

The Group is hedging deposits from customers exposed to interest rate variability risk by designating specific

portfolios as hedged items into cash flow hedge relationships. The hedging instruments are interest rate swaps.

The risk hedged is the interest rate risk associated with floating EUR interest bearing deposits and borrowings.

In order to assess effectiveness the Group applies the hypothetical derivative method under cumulative dollar

offset method to measure both the retrospective and prospective effectiveness of the cash flow hedge

relationships. The effectiveness testing method applied compares the fair value of the hedging instruments

with the fair value of the hypothetical derivative instruments. The hypothetical derivative instruments are

constructed so that it has characteristics that match the critical characteristics of the hedged position and

hedging instrument in terms of notional amount, payment frequency and maturity.

Fair value hedge relationships are designated in order to hedge the risk free interest rate risks of bonds held

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

206

by the Group that are measured at fair value through other comprehensive income. The hedging instruments

used are interest rate swaps. Efficiency tests were performed at designation date and are performed on a

monthly basis during the tenor of the hedging relationship by comparing the fair value of the bonds with the

fair value of the interest rate swap.

30. DERIVATIVES ASSETS/LIABILITIES DESIGNATED AS HEDGING INSTRUMENTS (continued)

Fair value hedging relationships are also designated to limit the exposure of the Group to fixed risk free interest

rate risk of non-maturing deposits included in the behavioral model by using as hedging instrument an interest

rate swap. Effectiveness tests were performed at inception of the hedging designation and during the lifetime

of the hedging on a monthly basis by using a hypothetical derivative instrument replicating the non-maturing

deposits characteristics.

The fair values of derivatives designated as cash flow hedges (“CFH”) and fair value hedges (“FVH”) are:

Group

in RON thousands

31.12.2024

31.12.2023

CFH

Notional

Assets

Liabilities

Notional

Assets

Liabilities

Interest rate swap

10,495

(1,522)

10,934

(12,807)

Interest rate swap -

Revaluation

147,497

(10,684)

Total

157,992

(12,206)

10,934

(12,807)

Group

in RON thousands

31.12.2024

31.12.2023

FVH

Notional

Assets

Liabilities

Notional

Assets

Liabilities

Interest rate swap

520,664

21,131

520,716

242,560

(189,597)

Interest rate swap -

Revaluation

4,506,496

144,469

(146,036)

Total

5,027,160

165,600

(146,036)

520,716

242,560

(189,597)

The time periods in which the hedged cash flows are expected to occur and affect the statement of

comprehensive income are as follows:

Group

in RON thousands

31.12.2024

31.12.2023

Within 1 year

1-5 years

Over 5 years

Within 1

year

1-5 years

Over 5

years

Cash inflow

189

4,442

8,609

2,699

15,635

Cash outflow

(879)

(9,518)

(15,434)

(5,116)

(23,351)

As 31 December 2024, all cash flow and fair value hedge relationships have been assessed as effective.

For cash flow hedges reserve please refer to Note 28.

The amounts relating to items designated as hedged items at 31December 2024 and 31 December 2023 were

as follows:

in RON thousands

2024

2023

Assets

Liabilities

Assets

Liabilities

Debt instruments

504,044

489,369

Deposits and current accounts

6,087,103

5,420,935

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

207

31. DEPOSITS FROM BANKS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Term deposits

980,889

881,358

980,889

881,358

Sight deposits

801,218

359,624

801,218

359,624

Total

1,782,107

1,240,982

1,782,107

1,240,982

32. LOANS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Commercial Banks

7,677,347

5,671,409

Multilateral development banks

857,244

735,264

732,566

584,966

Total

8,534,591

6,406,673

732,566

584,966

As at 31 December 2024, the final maturity of loans varies from May 2025 to September 2030.

UniCredit Consumer Financing IFN S.A. has not withdrawn any loan from external counterparties during 2024.

UniCredit Leasing Corporation IFN S.A. withdrew a total amount of EUR 50 million during 2024 under a facility

granted by a commercial bank. The funds will be used for general purposes financing to final beneficiaries

including a green component.

UniCredit Bank S.A. withdrew a total amount of EUR 70 million during 2024 (two disbursements of

approximatively EUR 35 million each) under a facility approved in 2023 by the European Investment Bank (EIB)

and the funds were withdrawn for the purpose of granting loans to MSME and mid-capitalization companies

with focus on climate action and environmental sustainability projects.

33. DEBTS ARISING FROM FINANCING ACTIVITIES

The Group's liabilities arising from the financing activities for the years 2024 and 2023 are presented below:

2024

Group

In RON thousands

Balance at

01 January

Drawdown

Repayments

Accumulated

interest

Other

changes*

Balance at 31

December

Loans from banks

6,406,673

5,119,180

(3,322,286)

31,722

299,302

8,534,591

Debt securities issued

4,002,296

1,944,054

(183,500)

24,389

(26,952)

5,760,287

Subordinated liabilities

952,073

(109,430)

3,517

(4,298)

841,862

Lease liabilities

255,803

29,979

(80,708)

1,087

(1,087)

205,074

Total

11,616,845

7,093,213

(3,695,924)

60,715

266,965

15,341,814

*Other changes are the effect of the exchange rate change on the revaluation of balances.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

208

2023

Group

In RON thousands

Balance at

01 January

Drawdown

Repayments

Accumulated

interest

Other

changes*

Balance at

December

Loans from banks

5,653,932

4,265,962

(3,563,031)

32,920

16,890

6,406,673

Debt securities issued

3,502,834

480,000

24,673

(5,211)

4,002,296

Subordinated liabilities

945,604

4,121

2,348

952,073

Lease liabilities

198,403

134,971

(82,491)

1,245

3,675

255,803

Total

10,300,773

4,880,933

(3,645,522)

62,959

17,702

11,616,845

*Other changes are the effect of the exchange rate change on the revaluation of balances.

33. DEBTS ARISING FROM FINANCING ACTIVITIES (continued)

The Bank's liabilities arising from the financing activities for the years 2023 and 2022 are presented below:

2024

Bank

In RON thousands

Balance at 01

January

Drawdown

Repaymen

Accumulat

ed interest

Other

changes*

Balance at

December

Loans from banks

584,966

348,121

(205,845)

9,132

(3,808)

732,566

Debt securities issued

4,002,296

1,944,054

(183,500)

24,389

(26,952)

5,760,287

Subordinated liabilities

842,632

3,517

(4,287)

841,862

Lease liabilities

250,414

27,981

(78,181)

1,087

(1,093)

200,208

Total

5,680,308

2,320,156

(467,526)

38,125

(36,140)

7,534,923

*Other changes are the effect of the exchange rate change on the revaluation of balances.

2023

Bank

In RON thousands

Balance at 01

January

Drawdown

Repayments

Accumulated

interest

Other

changes

Balance at 31

December

Loans from banks

849,329

(264,648)

4,684

(4,399)

584,966

Debt securities issued

3,502,834

480,000

24,673

(5,211)

4,002,296

Subordinated liabilities

836,761

4,121

1,750

842,632

Lease liabilities

193,362

131,952

(79,988)

1,229

3,859

250,414

Total

5,382,286

611,952

(344,636)

34,707

(4,001)

5,680,308

*Other changes are the effect of the exchange rate change on the revaluation of balances.

34. DEPOSITS FROM CUSTOMERS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Term deposits

16,430,802

17,993,000

16,440,907

18,013,196

Payable on demand

34,510,585

31,956,699

35,135,042

31,988,882

Collateral deposits

1,164,623

1,005,603

1,164,245

1,000,478

Certificates of deposits

Total

52,106,032

50,955,312

52,740,216

51,002,566

As of 31 December 2024, retail clients (individuals and micro companies) represents 41% of the portfolio,

corporate accounts for 55% of the portfolio, while private banking clients represents 4% (31 December 2023:

retail clients 37%, corporate clients 59%, private banking clients 4%).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

209

35. DEBT SECURITIES ISSUED

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Debt securities issued

5,760,287

4,002,296

5,760,287

4,002,296

Total

5,760,287

4,002,296

5,760,287

4,002,296

In July 2017, the Bank issued RON denominated bonds in amount of RON 610,000 thousands with semi-annual

coupon payments and the following maturities: 3 years (UCB20), 5 years (UCB22) and 7 years (UCB24). The

debt issuance from July 2017 was aderred to by qualified investors. The initial nominal amount was

oversubscribed, and 61,000 debt instruments for the maturities listed above were issued in total.

Out of the initial maturities the 3 years one (ISIN ROUCTBDB022) matured in Q3 2020 (15 July 2020) and the 5

years one (ISIN ROUCTBDB030) matured in Q3 2022 (15 July 2022). The principal of RON 146,000 thousands

for UCB20 plus RON 280,500 thousands for UCB22 was repaid to the bondholders. UCB24 in amount of RON

183,500 thousands matured on 15th of July 2024.

35. DEBTS SECURITIES ISSUED (continued)

During November 2022, the Bank issued RON denominated bonds in amount of RON 488,500 thousands with

annual coupon payments and a 5 years maturity. The issuance was addressed to qualified investors and 977

debt instruments were issued each with 500,000 RON nominal value.

During November 2023, the Bank issued RON denominated bonds in amount of RON 480,000 thousands with

annual coupon payments and a 5 years maturity. The issuance was addressed to qualified investors and 960

debt instruments for the 5 years maturity were issued each with 500,000 RON nominal value.

During November 2024, the Bank issued RON denominated bonds in amount of RON 750,000 thousands with

annual coupon payments and a 5 years maturity. The issuance was addressed to qualified investors and 1500

debt instruments for the 5 years maturity were issued each with 500.000 RON nominal value.

The outstanding bonds issued in 2022, 2023 and 2024 are listed on the Bucharest Stock Exchange (UCB27,

UCB28 and respectively UCB29):

ISIN

BVB Code

Maturity

Notional amount in

RON thousands

Interest rate

RO3WU5H09299

UCB27

21-Dec-27

488,500

9.07% p.a.

ROG0M1EGXBN8

UCB28

24-Nov-28

480,000

7.82% p.a.

RO22LR2CLFI6

UCB29

22-Nov-29

750,000

7.67% p.a.

In order to cover the new internal minimum requirement for own funds and eligible liabilities (internal

Minimum Requirement for own funds and Eligible Liabilities – „MREL”) UniCredit Bank S.A. has issued several

senior non preferred bonds: 110 million EUR in December 2021, 160 milion EUR in June 2022 and 250 milion

EUR in December 2022. In 2024 UniCredit Bank S.A. issued two senior non preferred bonds: 100 milion EUR in

June and 140 milion EUR in September. The issuances were fully subscribed by UniCredit S.p.A. (the parent

company) following the Single Point of Entry Strategy adopted at UniCredit Group level and are not listed. All

the Senior Non preferred bonds have an initial maturity of 5 or 6 years with an issuer call option of the Bank

after 4 or 5 years (1 year prior to the maturity date).

In August 2022, UniCredit Bank S.A. has also issued a Tier 2 bond for the total amount of 48.5mn EUR with a

maturity of 10 years and an issuer call option of the Bank after 5 years. The bond was fully subscribed by

UniCredit S.p.A..

36. SUBORDINATED LIABILITIES

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

210

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

UniCredit SPA

841,862

842,632

841,862

842,632

UniCredit Bank Austria AG

109,441

Total

841,862

952,073

841,862

842,632

As of 31 December 2024, the following agreements were in place:

• subordinated debt from UniCredit SPA, Italy, in amount of in eq. RON thousands 241,244 (EUR thousands

48,500), with maturity in July 2027, beneficiary UniCredit Bank S.A.;

• subordinated debt from UniCredit SPA, Italy, in amount of in eq. RON thousands 596,892 thousands (EUR

thousands 120,000), with maturity in December 2027, beneficiary UniCredit Bank S.A..

Interest accrued amounts to eq. RON thousands 3,726 (EUR thousands 749).

The subordinated liabilities rank below other, more senior loans or securities with respect to claims on assets

or earnings. In case of borrower default, creditors/bondholders who own subordinated debt will not be paid

out until after senior creditors/bondholders are paid in full.

37. PROVISIONS

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Provision for financial guarantees

91,524

97,769

117,477

124,949

Provision for legal disputes

6,815

8,276

5,478

6,248

Provision for off-balance commitments

63,798

86,528

62,110

82,696

Other provisions

28,245

13,589

27,655

13,010

Total

190,382

206,162

212,720

226,903

The movements in provisions during the year were as follows:

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Balance at 31 December

206,162

250,064

226,903

250,737

Net expense/(release) with provision for

financial guarantees and off-balance

commitments

(28,329)

(25,092)

(28,397)

(26,157)

Net expense/(release) with provision for legal

disputes

(1,580)

(5,117)

(768)

(5,477)

Net expense/(release) with other provisions

14,325

6,082

14,315

5,574

FX effect

(1,424)

2,001

667

2,226

Reclassification of provisions off to on

balance*

1,228

(21,776)

Balance at 31 December

190,382

206,162

212,720

226,903

38. OTHER LIABILITIES

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

211

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Other financial liabilities

Suspense accounts - banks

571,854

539,442

571,854

539,442

Suspense accounts - non-banks

287,078

300,550

287,078

300,550

Accruals for third party services

159,431

138,499

150,740

129,740

Amounts payable to suppliers

94,695

90,213

13,101

34,101

Sundry creditors

138,082

116,334

114,897

145,461

Total other financial liabilities

1,251,140

1,185,038

1,137,670

1,149,294

Other non-financial liabilities

Deferred income

183,627

214,810

109,898

105,094

Payable to state budget

52,723

43,644

47,773

40,049

Amounts due to employees

85,390

68,621

79,518

61,293

Other

19,463

19,012

1,651

1,534

Total other non-financial liabilities

341,203

346,087

238,840

207,970

Total other liabilities

1,592,343

1,531,125

1,376,510

1,357,264

39. ISSUED CAPITAL

The statutory share capital of the Bank as at 31 December 2024 is represented by 48,948,331 ordinary shares

(31 December 2023: 48,948,331 ordinary shares) having a face value of RON 9.30 each. Out of the total shares,

8,187,547 shares were issued with a share premium of 75.93 RON / share. The total value of the share premium

is RON 621,680 thousands. Both the statutory capital and the share premium were fully paid.

The shareholders of the Bank are as follows:

Bank

31.12.2024

31.12.2023

UniCredit SpA

88.7298

98.6298

Alpha International Holdings Single Member S.A.

9.90000

Minority shareholders (individuals and legal entities)

1.3702

Total

100

On November 4th, 2024, after receiving all regulatory approvals, UniCredit S.p.A acquired 90.1% of the share

capital of local Alpha Bank Romania S.A. from majority shareholder Alpha International Holdings Single

Member S.A. in exchange of cash payment and share transfer of minority stake of 9.9% in UniCredit Bank S.A.

The share capital comprises of the following:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

212

Bank

In RON thousands

31.12.2024

31.12.2023

Statutory share capital

455,219

Effect of hyperinflation – IAS 29

722,529

Share capital under IFRS

1,177,748

40. OTHER RESERVES

The breakdown of other reserves is presented below:

Group

Bank

In RON thousands

31.12.2024

31.12.2023

31.12.2024

31.12.2023

Statutory general banking risks

115,785

Statutory legal reserve

91,044

Effect of hyperinflation – IAS 29

19,064

Actuarial (gain)/loss

(67)

(205)

(67)

(205)

Other reserves

247,404

207,254

247,404

207,254

Total

473,230

432,942

473,230

432,942

Reserves for general banking risks include amounts set aside for future losses and other unforeseen risks or

contingencies. These reserves are not distributable.

Statutory legal reserves represent the accumulated transfers from retained earnings built in accordance with

Company Law 31/1991, requiring to transfer maximum 5% of profit of the year, up to an amount equal to 20%

of statutory share capital. These reserves are not distributable. Since 31 December 2018 the legal reserve

recorded by the Bank reached the maximum level of 20% of the statutory share capital.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

213

41. RELATED PARTY TRANSACTIONS

The Group entered into a number of banking transactions with UniCredit S.p.A and with members of the

UniCredit Group in the normal course of business. These transactions were carried out on commercial terms

and conditions and at market rate.

The following transactions took place between Group and UniCredit S.p.A and its subsidiaries:

Group

In RON thousands

31.12.2024

31.12.2023

Parent

Company

Other related

entities

Parent

Company

Other related

entities

Derivative assets at fair value through profit or

loss

34,562

1,538

5,906

56,347

Derivatives assets designated as hedging

instruments

21,131

10,187

23,034

Short term Money Market placements with

banks

9,891,714

166,861

8,054,581

66,861

Loans and advances to banks

337

6,367

Loans and advances to customers

5,934

7,469

Other assets

17,697

6,345

13,479

3,943

Outstanding receivables

9,965,104

181,015

8,084,153

164,021

Derivative liabilities at fair value through profit

or loss

8,414

1,545

892

3,743

Derivatives liabilities designated as hedging

instruments

151,805

186,942

Current accounts

72,359

31,478

169,035

Deposit attracted

4,605

1,988

15,769

46,221

Loans received

5,719,546

329,535

3,804,562

412,324

Debts securities issued

4,032,629

2,840,301

Subordinated liabilities

841,862

842,632

109,441

Other liabilities

58,346

809

3,652

108,668

Outstanding payables

10,889,566

365,355

7,507,808

1,036,374

Interest income

308,243

578

252,046

942

Interest expense

(642,875)

(15,548)

(441,963)

(23,052)

Fee and commission income

2,142

7,405

1,753

7,554

Fee and commission expense

(146)

(1,637)

(136)

(1,381)

Other operating income

131

2,777

120

2,144

Operating expenses

(15,909)

(83,291)

(3,428)

(82,152)

Net revenue/(expense)

(348,414)

(89,716)

(191,608)

(95,945)

Commitments

1,354,802

282,957

1,366,361

338,922

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

214

41. RELATED PARTY TRANSACTIONS (continued)

Bank

In RON thousands

31.12.2024

31.12.2023

Parent

Company

Subsidiaries

Other

entities

Parent

Company

Subsidiaries

Other

entities

Derivative assets at fair value through

profit or loss

34,562

1,538

5,906

56,347

Derivatives assets designated as

hedging instruments

21,131

10,187

23,034

Short term Money Market

placements with banks

9,891,714

166,828

8,054,581

66,851

Loans and advances to banks

337

6,367

Loans and advances to customers

2,027,079

5,934

1,887,454

7,469

Other assets

17,697

4,040

6,310

13,479

10,407

7,939

Outstanding receivables

9,965,104

2,031,119

180,947

8,084,153

1,897,861

168,007

Derivative liabilities at fair value

through profit or loss

8,414

1,545

892

3,743

Derivatives liabilities designated as

hedging instruments

151,805

186,942

Current accounts

72,359

364,562

31,478

198,091

169,035

Deposit attracted

4,605

270,429

1,988

15,769

173,541

46,221

Loans received

285,227

342,765

Debts securities issued

4,032,629

2,840,301

Subordinated liabilities

841,862

842,632

Other liabilities

57,225

208

3,236

48,542

108,502

Outstanding payables

5,168,899

634,991

320,446

3,702,830

420,174

857,208

Interest income

308,243

114,740

572

252,046

85,135

936

Interest expense

(364,578)

(7,345)

(7,527)

(305,400)

(2,064)

(10,726)

Fee and commission income

2,142

36,246

7,405

1,753

34,985

7,554

Fee and commission expense

(146)

(1,623)

(136)

(1,376)

Other operating income

131

8,432

120

7,882

Operating expenses

(15,838)

197

(82,038)

(3,428)

160

(80,760)

Net revenue/(expense)

(70,046)

152,270

(83,140)

(55,045)

126,098

(84,298)

Commitments

100,811

474,390

282,957

171,949

40,716

338,922

Transactions with key management personnel

A number of banking transactions are entered into with key management personnel (executive management,

administrators and managers of the Group) in the normal course of business. These mainly include loans,

current accounts and deposits. The volumes of these transactions as of year ends are presented in the below

table:

Group

In RON thousands

2024

2023

Loans

6,013

7,242

Current accounts and deposits

6,886

9,673

Interest and similar income

113

144

Interest expenses and similar charges

(85)

(72)

In addition to wages, the Bank provides executive directors and executives with non-monetary benefits and

participation in the UniCredit Holding's options scheme. The UniCredit Group's Scheme of Compliance fully

complies with the Group's legal provisions and Compensation Policy.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

215

42. COMMITMENTS AND CONTINGENCIES

i) Off-balance-sheet commitments

At any time, the Group has outstanding commitments to extend credit. These commitments take the form of

approved loans and credit card limits and overdraft facilities. Outstanding loan commitments have a

commitment period that does not extend beyond the normal underwriting and settlement period of one month

to one year.

The Group provides financial guarantees and letters of credit to guarantee the performance of customers to

third parties. These agreements have fixed limits and generally extend for a period of up to one year.

Maturities are not concentrated in any period.

The contractual amounts of commitments and contingent liabilities are set out in the following table by

category. The amounts reflected in the table for commitments assume that amounts are fully advanced. The

amounts reflected in the table for guarantees and letters of credit represent the maximum accounting loss that

would be recognised at the end of reporting period if counterparties failed completely to perform as

contracted.

The breakdown for off balance sheet exposures by IFRS 9 stages is presented below:

Group

In RON thousands

Stage 1 and Stage

Stage 3

31.12.2024

Loan commitments

18,258,794

51,523

18,310,317

committed

4,842,809

7,234

4,850,043

uncommitted

13,415,985

44,289

13,460,274

Letters of credit

276,975

Guarantees issued

5,609,423

147,862

5,757,285

Gross amount

24,145,192

199,385

24,344,577

Allowance for impairment - Loan commitments

(36,010)

(22,372)

(58,382)

Allowance for impairment - Letters of credit

(5,416)

Allowance for impairment - Guarantees issued

(27,332)

(63,652)

(90,984)

Total loss allowance

(68,758)

(86,024)

(154,782)

Group

In RON thousands

Stage 1 and

Stage 2

Stage 3

31.12.2023

Loan commitments

15,947,997

62,004

16,010,001

committed

4,581,431

9,383

4,590,814

uncommitted

11,366,566

52,621

11,419,187

Letters of credit

214,876

Guarantees issued

5,438,994

116,571

5,555,565

Gross amount

21,601,867

178,575

21,780,442

Allowance for impairment - Loan commitments

(56,213)

(27,309)

(83,522)

Allowance for impairment - Letters of credit

(987)

Allowance for impairment - Guarantees issued

(36,378)

(61,380)

(97,758)

Total loss allowance

(93,578)

(88,689)

(182,267)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

216

42. COMMITMENTS AND CONTINGENCIES (continued)

i) Off-balance-sheet commitments (continued)

Bank

In RON thousands

Stage 1 and Stage

Stage 3

31.12.2024

Loan commitments

17,909,261

49,279

17,958,540

committed

4,493,276

4,990

4,498,266

uncommitted

13,415,985

44,289

13,460,274

Letters of credit

276,975

Guarantees issued

5,609,853

147,862

5,757,715

Gross amount

23,796,089

197,141

23,993,230

Allowance for impairment - Loan commitments

(34,641)

(22,053)

(56,694)

Allowance for impairment - Letters of credit

(5,416)

Allowance for impairment - Guarantees issued

(27,675)

(89,261)

(116,936)

Total loss allowance

(67,732)

(111,314)

(179,046)

Bank

In RON thousands

Stage 1 and

Stage 2

Stage 3

31.12.2023

Loan commitments

15,260,554

60,148

15,320,702

committed

3,893,988

7,527

3,901,515

uncommitted

11,366,566

52,621

11,419,187

Letters of credit

214,876

Guarantees issued

5,439,422

116,571

5,555,993

Gross amount

20,914,852

176,719

21,091,571

Allowance for impairment - Loan commitments

(54,664)

(27,045)

(81,709)

Allowance for impairment - Letters of credit

(987)

Allowance for impairment - Guarantees issued

(37,285)

(87,654)

(124,939)

Total loss allowance

(92,936)

(114,699)

(207,635)

The Bank acts as a security agent, payment agent and hedging agent for a series of loan contracts between

UniCredit Bank SpA and other entities within UniCredit Group as lender and Romanian companies as

borrowers. For each of these contracts there is a risk participation agreement by which the Bank is obliged to

indemnify UniCredit SpA or the other entities within UniCredit Group. The total amount of such risk

participation agreements in force as at 31 December 2024 is EUR 16,668,847 (31 December 2023: EUR

13,342,275).

As compensation for the financial guarantees assumed by the risk participation agreements and for providing

security and payment agent services to UniCredit SpA, the Bank receives the commissions paid by the

borrowers plus a portion of the interest margin collected from the borrowers. The Bank defers the commissions

collected upfront from the risk participation agreements over the time period that remains until the maturity

of the facilities.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

217

ii) Litigations

As of December 31st, 2024, there were 218 legal suits (31 December 2023: 279 legal suites) filed against the

Group, with total claims of RON thousands 23,937 (31 december 2023: RON thousands 29,321).

In the majority of lawsuits filed against the Group have as object financial claims regarding:

(i) abusive character in the loan contracts originated, related to fees and to the clauses which allow the Group

to unilaterally change the value of the interest rate;

(ii) other monetary claims (mostly „FNGCIMM” related – the National Credit Guarantee Fund for SMEs);

(iii) amounts as compensation not paid by the insurer for repairs of vehicles owned in financial leasing or

amounts representing the equivalent of the lack of use of the asset on a certain period or amounts representing

foreign exchange differences at the purchase price (for leasing activity).

42. COMMITMENTS AND CONTINGENCIES (continued)

ii) Litigii (continued)

As at 31 December 2024, the Group was involved in several litigations (as a defendant) for which, based on

legal advice, has assessed that a provision amounting to RON thousands 6,815 (31 December 2023: RON

thousands 8,276) is neceessary to be booked.

As of December 31st, 2024, there were 143 legal suits (31 December 2023: 199 legal suits), filed against the

Bank, with total claims of RON thousands 19,553 (31 December 2023: RON thousands 21,162) .

In the majority of lawsuits filed against the Bank have as object financial claims regarding:

(i) abusive character in the loan contracts originated, related to fees and to the clauses which allow the Bank

to unilaterally change the value of the interest rate;

As at 31 December 2024, the the Bank was involved in several litigations (as a defendant) for which, based

upon legal advice, has assessed that a provision amounting to RON thousands 5,478 (31 December 2023: RON

thousands 6,248) is necessary to be booked.

43. OPERATING SEGMENTS

The segment report format is based on the internal reporting structure of business segments, which reflects

management responsibilities in the Bank (Please refer to Note 3y).

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

218

43. OPERATING SEGMENTS (continued)

Segment reporting on Group’s income statements as of 31 December 2024:

31.12.2024

Group

In RON thousands

CIB

Leasing

Retail & PB

Treasury

Other

Total

Net interest income

1,303,450

143,929

952,504

18,225

(33,444)

2,384,664

Net fee and commission income

282,512

79,833

172,053

(14)

(9,503)

524,881

Net income from trading and other financial instruments which are not

at fair value through profit or loss

385,106

71,778

63,108

(618)

519,374

FX Gains/ (Losses)

(30,435)

17,748

(80)

(12,767)

Dividend income

35,000

(30,051)

4,949

Other operating income

1,626

37,627

70,888

(6,860)

103,302

Operating income

1,942,259

314,137

1,267,143

81,340

(80,476)

3,524,403

Operating expenses

(577,312)

(86,982)

(775,034)

(4,605)

(33,448)

(1,477,381)

Net impairment losses on financial instruments

6,190

(37,432)

(52,596)

1,792

(82,046)

Losses on modifications of financial assets

Net operating income

1,371,137

189,723

439,516

76,735

(112,132)

1,964,979

Net provision losses

563

239

(13,547)

(12,745)

Net impairment losses on non-financial assets

(1,112)

Profit before taxation

1,371,137

190,286

439,755

76,735

(126,791)

1,951,122

Income tax

(225,480)

(23,145)

(74,672)

(7,170)

13,343

(317,124)

Net profit

1,145,657

167,141

365,083

69,565

(113,448)

1,633,998

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

219

43. OPERATING SEGMENTS (continued)

Segment reporting on Group’s income statements of 31 December 2023:

31.12.2023

Group

In RON thousands

CIB

Leasing

Retail & PB

Treasury

Other

Total

Net interest income

1,201,929

135,390

859,325

(29,717)

(60,027)

2,106,900

Net fee and commission income

246,808

70,624

174,000

(1,132)

2,696

492,996

Net income from trading and other financial instruments which are not

at fair value through profit or loss

343,090

38,086

113,550

3,547

498,273

FX Gains/ (Losses)

65,217

19,903

(76)

85,044

Dividend income

30,000

(26,132)

3,868

Other operating income

5,528

5,905

8,675

(5)

(7,563)

12,540

Operating income

1,862,572

261,822

1,080,010

82,696

(87,479)

3,199,621

Operating expenses

(513,723)

(73,788)

(620,152)

(1,304)

6,855

(1,202,112)

Net impairment losses on financial instruments

(232,117)

(11,596)

(51,711)

1,847

(293,577)

Losses on modifications of financial assets

Net operating income

1,116,732

176,438

408,212

81,392

(78,777)

1,703,997

Net provision losses

(248)

(620)

(99)

(967)

Net impairment losses on non-financial assets

(449)

Profit before taxation

1,116,732

176,190

407,592

81,392

(79,325)

1,702,581

Income tax

(133,919)

(24,331)

(68,940)

(20,642)

(16,366)

(264,198)

Net profit

982,813

151,859

338,652

60,750

(95,691)

1,438,383

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

220

43. OPERATING SEGMENTS (continued)

Segment reporting on Bank’s income statements as of 31 December 2024:

31.12.2024

Bank

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Net interest income

1,303,450

781,697

18,225

(33,442)

2,069,930

Net fee and commission income

282,512

194,537

(14)

(11,549)

465,486

Net income from trading and other financial instruments which are not at fair

value through profit or loss

385,106

52,648

63,108

(618)

500,244

FX Gains/ (Losses)

(30,435)

Dividend income

4,949

Other operating income

1,626

74,279

149

76,075

Operating income

1,942,259

1,103,161

81,340

(40,511)

3,086,249

Operating expenses

(577,312)

(707,988)

(4,605)

(45,481)

(1,335,386)

Net impairment losses on financial instruments

6,190

(4,560)

137

1,767

Losses on modifications of financial assets

Net operating income

1,371,137

390,616

76,735

(85,855)

1,752,633

Net provision losses

(13,547)

Net impairment losses on non-financial assets

(1,112)

Profit before taxation

1,371,137

390,616

76,735

(100,514)

1,737,974

Income tax

(225,480)

(61,770)

(7,170)

13,343

(281,077)

Net profit

1,145,657

328,846

69,565

(87,171)

1,456,897

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

221

43. OPERATING SEGMENTS (continued)

Segment reporting on Bank’s income statements as of 31 December 2023:

31.12.2023

Bank

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Net interest income

1,201,929

704,271

(29,717)

(61,026)

1,815,457

Net fee and commission income

246,808

186,677

(1,132)

(68)

432,285

Net income from trading and other financial instruments which are not at fair

value through profit or loss

343,090

27,924

113,550

3,547

488,111

FX Gains/ (Losses)

65,217

Dividend income

3,868

Other operating income

5,528

7,145

(5)

112

12,780

Operating income

1,862,572

926,017

82,696

(53,567)

2,817,718

Operating expenses

(513,723)

(555,310)

(1,304)

(5,590)

(1,075,927)

Net impairment losses on financial instruments

(232,117)

13,695

5,633

(212,789)

Losses on modifications of financial assets

Net operating income

1,116,732

384,467

81,392

(53,524)

1,529,067

Net provision losses

(99)

Net impairment losses on non-financial assets

(449)

Profit before taxation

1,116,732

384,467

81,392

(54,072)

1,528,519

Income tax

(133,919)

(63,716)

(20,642)

(16,366)

(234,643)

Net profit

982,813

320,751

60,750

(70,438)

1,293,876

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

222

43. OPERATING SEGMENTS (continued)

Segment reporting on Group’s consolidated statement of financial position as of 31 December 2024:

31.12.2024

Group

In RON thousands

CIB

Leasing

Retail & PB

Treasury

Other

Total

Total assets

27,153,832

6,871,623

13,004,677

13,204,478

20,795,740

81,030,350

Total liabilities

28,692,743

5,005,000

27,381,705

1,309,685

8,884,582

71,273,715

Total equity

9,756,635

Total liabilities and equity

28,692,743

5,005,000

27,381,705

1,309,685

18,641,217

81,030,350

31.12.2023

Group

In RON thousands

CIB

Leasing

Retail & PB

Treasury

Other

Total

Total assets

23,803,090

6,193,568

11,075,543

10,995,731

22,604,429

74,672,361

Total liabilities

29,573,245

4,536,020

23,938,537

665,653

7,178,364

65,891,819

Total equity

8,780,542

Total liabilities and equity

29,573,245

4,536,020

23,938,537

665,653

15,958,906

74,672,361

Segment reporting on Bank’s separate statement of financial position as of 31 December 2024:

31.12.2024

Bank

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Total assets

27,153,832

9,029,061

13,204,478

23,188,660

72,576,031

Total liabilities

28,692,743

23,673,114

1,309,685

10,231,054

63,906,596

Total equity

8,669,435

Total liabilities and equity

28,692,743

23,673,114

1,309,685

18,900,489

72,576,031

Segment reporting on Bank’s separate statement of financial position as of 31 December 2023:

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

223

31.12.2023

Bank

In RON thousands

CIB

Retail & PB

Treasury

Other

Total

Total assets

23,803,090

8,051,958

10,995,731

24,861,316

67,712,095

Total liabilities

29,573,245

21,234,346

665,653

8,375,982

59,849,226

Total equity

7,862,869

Total liabilities and equity

29,573,245

21,234,346

665,653

16,238,851

67,712,095

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

224

44. IFRS 16 - „LEASE” (GROUP AS LESSEE)

The Group acts as the lessee in operating lease agreements for motor vehicles and rental of spaces. Leases are denominated in EUR, USD and RON and are signed

for a period between 1 and 15 years.

The tables below present the movement of the Right of Use as result of applying IFRS 16:

31.12.2024

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Balance at 1 January 2024

5,338

228,647

20,166

254,151

4,002

218,720

20,167

242,889

New Contracts

12,317

384

4,583

17,284

9,530

348

4,583

14,461

Contracts Modifications

(1,061)

13,335

12,274

(54)

13,457

13,403

Depreciation during the period (-)

(5,316)

(56,293)

(13,726)

(75,335)

(4,601)

(50,676)

(13,726)

(69,003)

Balance at 31 December 2024

11,278

186,073

11,023

208,374

8,877

181,849

11,024

201,750

31.12.2023

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Balance at 1 January 2023

11,163

156,508

31,560

199,231

7,966

141,829

31,561

181,356

New Contracts

627

8,656

1,323

10,606

519

5,768

1,323

7,610

Contracts Modifications

(352)

120,890

120,538

(218)

123,461

123,243

Depreciation during the period (-)

(6,100)

(57,407)

(12,717)

(76,224)

(4,265)

(52,338)

(12,717)

(69,320)

Balance at 31 December 2023

5,338

228,647

20,166

254,151

4,002

218,720

20,167

242,889

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

225

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

226

44. IFRS 16 -  (continued)

The table below presents the movement of the Lease Liability as result of applying IFRS 16:

31.12.2024

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Balance at 1 January 2024

6,315

229,620

19,868

255,803

4,108

226,438

19,868

250,414

Interest Expense

308

8,291

225

8,824

227

7,927

225

8,379

Lease Payments – Principal

(6,577)

(60,508)

(13,623)

(80,708)

(5,208)

(59,350)

(13,623)

(78,181)

Lease Payments – Interest

(291)

(8,255)

(226)

(8,772)

(210)

(8,114)

(226)

(8,550)

New Contracts

12,317

384

4,583

17,284

9,530

348

4,583

14,461

Contracts Modifications

(1,095)

13,568

12,475

(77)

13,596

13,521

FX Impact

171

(3)

168

(5)

172

(3)

164

Balance at 31 December 2024

10,977

183,271

10,826

205,074

8,365

181,017

10,826

200,208

31.12.2023

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Balance at 1 January 2023

11,647

155,961

30,795

198,403

7,998

154,569

30,795

193,362

Interest Expense

270

6,210

234

6,714

131

5,784

234

6,149

Lease Payments – Principal

(5,414)

(64,715)

(12,363)

(82,492)

(4,197)

(63,428)

(12,363)

(79,988)

Lease Payments – Interest

(252)

(5,113)

(236)

(5,601)

(129)

(4,999)

(236)

(5,364)

New Contracts

627

8,244

1,323

10,194

519

5,768

1,323

7,610

Contracts Modifications

(362)

124,826

124,464

(240)

124,582

124,342

FX Impact

(201)

4,207

115

4,121

4,162

115

4,303

Balance at 31 December 2023

6,315

229,620

19,868

255,803

4,108

226,438

19,868

250,414

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

227

44. IFRS 16 -  (continued)

The table below presents the amounts recognized in the Income statement for IFRS 16 related positions and amounts for leases not included in IFRS 16 related

positions (expenses relating to short-term leases and expenses relating to leases of low-value assets, excluding short-term leases of low-value assets).

31.12.2024

Group

Bank

mii RON

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Expenses with depreciation related to the rights of

use

(5,316)

(56,293)

(13,726)

(75,335)

(4,601)

(50,676)

(13,726)

(69,003)

Expenses with interest on lease liabilities

(308)

(8,291)

(225)

(8,824)

(227)

(7,927)

(225)

(8,379)

Expenses related to short-term leases not included in

IFRS 16 related positions

(142)

(2,868)

(3,010)

(2,868)

Expenses related to leases of low-value assets

excluding short-term lease of low-value assets not

included in IFRS 16 related positions

(1,677)

(1,667)

Total

(5,766)

(67,452)

(15,628)

(88,846)

(4,828)

(61,471)

(15,618)

(81,917)

31.12.2023

Group

Bank

mii RON

Cars

Lands and

buildings

Other

equipments

Total

Cars

Lands and

buildings

Other

equipments

Total

Expenses with depreciation related to the rights of

use

(6,100)

(57,407)

(12,717)

(76,224)

(4,265)

(52,338)

(12,717)

(69,320)

Expenses with interest on lease liabilities

(270)

(6,210)

(234)

(6,714)

(131)

(5,784)

(234)

(6,149)

Expenses related to short-term leases not included in

IFRS 16 related positions

(137)

(2,805)

(2,942)

(6)

(2,805)

(2,811)

Expenses related to leases of low-value assets

excluding short-term lease of low-value assets not

included in IFRS 16 related positions

(1,806)

Total

(6,507)

(66,422)

(14,757)

(87,686)

(4,402)

(60,927)

(14,757)

(80,086)

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

228

44. IFRS 16 -  (continued)

Amounts recognised in Statement of Cash Flows for IFRS 16 related positions and for leases not included in IFRS 16 related positions:

31.12.2024

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipment

Total

Cars

Lands and

buildings

Other

equipment

Total

Lease Payments – Principal

6,577

60,508

13,623

80,708

5,208

59,350

13,623

78,181

Lease Payments – Interest

291

8,255

226

8,772

210

8,114

226

8,550

Payments for short-term leases not

included in IFRS 16 related positions

142

2,868

3,010

2,868

Payments for leases of low-value

assets, excluding short-term lease of

low-value assets, not included in IFRS

16 related positions

1,677

1,667

Total cash outflow for leases

7,010

71,631

15,526

94,167

5,418

70,332

15,516

91,266

31.12.2023

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipment

Total

Cars

Lands and

buildings

Other

equipment

Total

Lease Payments – Principal

5,414

64,715

12,363

82,492

4,197

63,428

12,363

79,988

Lease Payments – Interest

252

5,113

236

5,601

129

4,999

236

5,364

Payments for short-term leases not

included in IFRS 16 related positions

137

2,805

2,942

2,805

2,811

Payments for leases of low-value

assets, excluding short-term lease of

low-value assets, not included in IFRS

16 related positions

1,806

Total cash outflow for leases

5,803

72,633

14,405

92,841

4,332

71,232

14,405

89,969

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

229

44. IFRS 16 -  (continued)

The table below presents the maturity analysis of the lease liability.

31.12.2024

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipment

Total

Cars

Lands and

buildings

Other

equipment

Total

Up to 3 months

2,091

15,485

2,899

20,475

1,511

15,217

2,899

19,627

3 months to 1 year

4,949

27,067

5,279

37,295

3,923

26,173

5,279

35,375

1 to 2 years

3,349

39,930

2,215

45,494

2,585

38,950

2,215

43,750

2 to 3 years

508

36,102

433

37,043

266

35,990

433

36,689

3 to 4 years

22,482

22,562

22,482

22,562

4 to 5 years

18,740

Over 5 years

23,465

Total

10,977

183,271

10,826

205,074

8,365

181,017

10,826

200,208

31.12.2023

Group

Bank

in RON thousands

Cars

Lands and

buildings

Other

equipment

Total

Cars

Lands and

buildings

Other

equipment

Total

Up to 3 months

1,401

15,451

3,124

19,976

1,117

15,178

3,124

19,419

3 months to 1 year

3,204

41,187

9,420

53,811

1,477

40,444

9,420

51,341

1 to 2 years

961

39,443

6,673

47,077

770

38,300

6,673

45,743

2 to 3 years

553

36,922

651

38,126

548

36,003

651

37,202

3 to 4 years

189

34,445

34,634

189

34,341

34,530

4 to 5 years

20,893

20,900

20,893

20,900

Over 5 years

41,279

Total

6,315

229,620

19,868

255,803

4,108

226,438

19,868

250,414

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 December 2024

Convenience translation in English of the original Romanian version.

230

45. SUBSEQUENT EVENTS

Following the announcement made on October 23

, 2023 and after receiving all regulatory approvals on

November 4

, 2024 UniCredit SpA successfully completed acquisition of 90.1% of the share capital of local Alpha

Bank Romania S.A. and from that day onwards Alpha Bank Romania S.A. became subsidiary of UniCredit SpA and

member of UniCredit Group.

Immediately after the acquisition a project was launched targeting a merger by absorption of Alpha Bank

Romania S.A. (absorbed company) into UniCredit Bank S.A. (absorbing company). On December 23

, 2024

General Meetings of Shareholders of both banks authorized respective governing bodies to undertake necessary

legal steps towards effectuating the merger. As a result, the Merger Plan was approved on January 30

, 2025,

signed on January 31

, 2025 and since February 12

, 2025 published on both Banks’ websites, in accordance

with applicable legal provisions. The merger is subject to regulatory approvals and is expected to have Effective

Date within August 2025.

The consolidated and separate financial statements were approved by the Management Board on February 19,

2025 and were signed on its behalf by:

Mrs. Mihaela Lupu Mr. Dimitar Todorov

Chief Executive Officer Executive Vice-President