Gránit Bank - Introduction (2023)

Introduction 2023

CONTENT

Foreword

1. Our fundamental principles 2. Our strategy 3. Our values 4. Key milestones in implementing digital business model

5.

6.

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8.

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4 8 10 12 16

Results

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Our awards and prizes

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Our management

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Ownership structure

27

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Dear Reader!

In 2010, the year Gránit Bank was founded, immediately after the global economic and nancial crisis, it was a very brave decision for Sándor Demján to found a bank. It is both an honour and an inspiration for me to be the founding co-owner and CEO from the very beginning, leading a value creation process that has introduced leading digital innovations and a high UX experience for customers.

Gránit Bank was practically born digital, so its innovative solutions are two to three years ahead of the market.

Based on the appearance of new technologies, the revolutionary development of technical tools and a customer base that is becoming increasingly open to nancial innovations, Gránit Bank was the rst in Hungary to implement a digital business model 13 years ago, serving its customers primarily through digital channels and smart devices.

Year after year, the Bank has introduced market-leading digital nancial solutions, often with world and Europe leading services, which enable customers to manage their everyday nancial transactions conveniently, quickly, easily, at competitive prices, and with a high customer experience.

In addition to unique nancial innovations for sustainability, another pillar of the digital business model is the conservative corporate and retail lending and liquidity management, which together ensure the Bank's long-term sustainability.

Gránit Bank's cutting-edge, innovative digital banking solutions and conservative corporate and retail lending result in e cient banking operations, which are re ected in nancial ratios that exceed the market average.

Thanks to its digital business model, Gránit Bank has become the fastest growing credit institution of the last decade and has been pro table since its fourth year of operation. The reinvested pro t after-tax ensures that shareholder value continues to grow, the Bank's competitive advantage is maintained, and we are always there for our customers where they need our services.

I believe we are on the right track, as con rmed by our above-market growth and pro tability, and the 53 awards we have received for our performance in the 13 years since we began our operation.

We could not have achieved all these results without the trust of our shareholders and customers, and the excellent creative work of my sta , for which I am extremely grateful. I know that banking is based on trust, and at Gránit Bank we have worked for more than 13 years to continuously create value so that our current and future customers feel that they come rst, every moment.

Éva Hegedüs

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Chairperson-CEO

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Gránit Bank was the rst in Hungary to implement a digital business model.

HUNGARIAN BRAND Gránit Bank, which started operations as a green eld bank in May 2010, is owned by Hungarian investors.

DIGITAL BANK Providing customized nancial services to businesses and private individuals via digital channels.

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CUSTOMER EXPERIENCE Fast, convenient, and secure nancial services with favourable conditions, easily accessible anywhere and anytime. This is the concept of “The bank of the future now.”

DYNAMIC GROWTH A dynamic increase in customer volume market share. Pro table operation for the ninth consecutive year, continuously expanding equity and high cost-e

ciency.

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1. OUR FUNDAMENTAL PRINCIPLES

Gránit Bank aims to o er the most modern online banking solutions and digital nancial services to its customers in order to provide an outstanding customer experience in terms of convenience, security and speed while achieving e ciency of operation and becoming a stable partner to value-creating businesses.

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COMMITTED SHAREHOLDERS AND MANAGEMENT Shareholders and the management are motivated by increasing the Bank’s shareholder value and improving customer satisfaction.

CUSTOMER RELATIONS BASED ON CONFIDENCE

‣ Mutual con dence and long-term customer relations ‣ Solutions tailored to customer needs ‣

Fast, convenient, and secure nancial services

‣ Business-based approach ‣ Supporting our customers’ activities

CUSTOMER-CENTRED INNOVATIONS

‣ Market leading digital banking services with a high customer experience.

‣ The improvements will serve both convenient and fast everyday banking and sustainability through the implementation of branchless digital banking.

EFFICIENT OPERATION

‣ Streamlined organisation, e cient local decision-making. ‣ Transparent operation, structured, predictable, conservative processes.

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2. OUR STRATEGY DIGITAL, GREEN FINANCIAL SERVICES, CONSERVATIVE LENDING

Gránit Bank is Hungary’s rst digital bank, with market-leading solutions which:

‣ make banking easier as well as more convenient and sustainable.

‣ can be combined with personal consulting on request.

‣ provide customised and cost-e ective solutions.

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Using innovative electronic banking and nancial services to develop simple, convenient, and cost-e ective solutions for retail customers, providing outstanding customer experience and serving the target of sustainability.

Providing sustained favourable conditions for customers with the help of a cost-e ective business model implemented through digital devices and options, ensuring the bank’s stable operation in the long-term.

Providing comprehensive nancial and nancing solutions for business customers.

THREE STRATEGIC PILLARS INNOVATIVE DIGITAL BANKING SERVICES

CONSERVATIVE VALUES

HIGH LIQUIDITY, COST-EFFICIENT OPERATION

With the spread and opportunities of smart and mobile devices, the management of nances rises to a new level.

Beside innovation, the Bank’s operation focuses on conservative lending.

The Bank’s business model ensures high liquidity and cost-e cient operation, o ering sustained favourable conditions for customers.

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3. OUR VALUES FOR BUSINESSES, RETAIL CUSTOMERS

Gránit Bank is a reliable partner to value-creating businesses.

Gránit Bank’s innovative digital solutions make banking easier for retail customers.

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TAILORED SOLUTIONS FOR BUSINESSES

WE MAKE BANKING EASY FOR YOU WITH OUR BANK ACCOUNT SERVICE

‣ Customised account management conditions, favourable account packages.

‣ Comprehensive electronic banking services – innovative solutions. ‣ Attractive xed-term deposit conditions for all maturities.

WE PROVIDE FINANCING TO HELP YOU ACHIEVE YOUR GOALS

‣ Flexible nancing solutions tailored to customer needs – competent professionals, quick decision-making.

‣ Broad product palette for all lending purposes (investment loan,

working capital loan, overdraft, revolving credit, project loan, etc.).

‣ The full range of subsidised credit facilities (Széchenyi loans, Eximbank loans, MFB Point products).

SECURITY AND CONVENIENCE

‣ Wide range of treasury services - market foreign exchange, government bond trading, hedging, private banking .

‣ Business Premium card – travel insurance up to HUF 50 million, use

of the premium Mastercard Lounge and the Fast Lane at Liszt Ferenc International Airport, discounts from the Maternity Private Clinic’s services.

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3. OUR VALUES

INNOVATIVE AND DIGITAL SOLUTIONS FOR RETAIL CUSTOMERS

WE MAKE BANKING EASY FOR YOU WITH OUR BANK ACCOUNT SERVICE

‣ You can open your bank account from your mobile phone or any mobile device, even from home, either on VideoBank or by taking a sel e, and the contract is ready in minutes.

‣ Account and credit card control, instant credit card application from your mobile phone.

‣ Monthly expense and income overview on mobile phone. ‣ Attractive deposit terms for 1-24 months via mobile app, VideoBank and NetBank.

FULL ONLINE BANKING SERVICES ON VIDEOBANK, NETBANK, EBANK

‣ More convenient payment of utility bills from a bank account, cost sharing with payment request, payment by QR code, digital card service, xed monthly fee account packages with completely free transactions.

‣ Package for family nances - for parent and child with the unique on market Family app.

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WE PROVIDE FINANCING TO HELP YOU ACHIEVE YOUR GOALS

‣ For home purchase, construction, extension, renovation: home loan with online application.

‣ State loan mediation: CSOK and home loan with interest rate subsidies.

‣ Childbirth Incentive Loan application to contract is completely online.

‣ General purpose mortgage loan. ‣ Overdraft as safety reserve.

SECURITY AND CONVENIENCE

‣ Gránit Platinum and Metal card: advanced travel insurance with coverage up to HUF 50 million, airport VIP lounge access.

‣ Government securities purchases by opening a securities account through VideoBank and app.

‣ Banking from anywhere via VideoBank, desktop PC, mobile phone.

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4. KEY MILESTONES IN IMPLEMENTING THE DIGITAL BUSINESS MODEL

Lock function for card locking and unlocking

The launch of VideoBank

2012

2014

Gránit iSMS about banking transactions

2015

2016

Full account opening via VideoBank

2017

The rst MDES-based next generation mobile payment on Android devices

Launch of Apple Pay

2018

2019

New eBank with built-in spending analysis Buy and sell government bonds on VideoBank

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Discounted foreign exchange rate charts in eBank app*

Full account opening with sel e and digital card service

100% digital Childbirth Incentive Loan application

Family app to manage family nances and open an account online from the age of 6

2020

2021

2022

Payment request and payment by QR code on mobile

Digital mortgage lending with online pre-quali cation (Home Calculator)

Paying bills digitally

2023

Instant HUF debit and FX* card application and card details + PIN code disclosure in eBank app

Launch of Google Pay Buy government bonds in eBank app *Coming soon

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Eco Calculator showing CO2 emissions accompanying credit card spending in eBank

5. RESULTS

DYNAMIC GROWTH ALREADY FOR THIRTEEN YEARS.

STABLE RESULTS

DYNAMIC GROWTH

Pro t before tax in 2022:

Balance sheet at 31.12.2022:

HUF 13 billion

HUF 1,019 billion

Pro table operation for

Average annual growth of

9 years

48.0%

HIGH PROFITABILITY

EFFICIENT OPERATION

Return on equity

Close to

ROE: 25.2%

100%

Non-performing loan ratio

NPL: 0.02% Cost/income ratio

C/I: 34.9%*

high quality portfolio Operating costs as a percentage of balance sheet total

0.87%*

*Excluding bank tax, extra pro t tax and nancial transaction tax

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Pro table

~20.5%

~53.3%

from the 4th nancial year

Total capital adequacy ratio

loan/deposit ratio (including re nancing)

Balance sheet total 2010-2022 HUF billion 1200 1 019

1000 800 686

142x 48.31%*

600 400

302

574 353

398

228

200 33

51

73

142

152

13 2010 2011 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

*Annual average growth

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Gránit Bank has excellent liquidity and credit quality and a high capital adequacy ratio.

5. RESULTS

Gránit Bank's operating cost per total assets ratio is signi cantly lower than the banking sector average Operating costs as a proportion of the balance sheet total The bar chart shows Gránit Bank's operating cost / balance sheet total (31 December 2022).

*Operating costs excluding bank tax, extra pro t tax and nancial transaction tax

1.6%

0.9%

Financial sector 31.12.2022

Cost-to-income ratio lower than the sector

ROAE**

Cost to income ratio

25.2%

40.4%

Financial sector 31.12.2022 **Pro t after tax

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-5.6% 34.9%

11.7%

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Gránit Bank 31.12.2022

Gránit Bank's pro t after tax (ROAE) signi cantly higher than the market average

2.2x

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-0.7%

Gránit Bank 31.12.2022

Financial sector 31.12.2022

Gránit Bank 31.12.2022

Gránit Bank grew at a signi cantly higher rate than the sector in 2022 Growth rate

(Dec. 2022 / Dec. 2021)

Financial sector

Gránit Bank

8.6%

Retail deposit

-0.3%

Retail loan

19.7% 6.1%

Business deposit

81.6% 7.4%

Business loan + Bond Funding for Growth Scheme

29.5% 15.9% 48.4%

Balance sheet total

17.6% 31.12.2022*

With a consolidated balance sheet total of HUF 1,063 billion, Gránit Banking Group is a major player in the Hungarian nancial sector, o ering universal banking services, investment services and asset management.

Balance sheet total

HUF 1,063 billion

Assets under management (AUM)

HUF 1,326 billion

Loans and bonds

HUF 453 billion

Pro t before tax

HUF 13,758 billion

Pro t after tax

HUF 11,838 billion

*Gránit Bank Zrt., Equilor Befektetési Zrt.

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6. OUR AWARDS AND PRIZES

Others also believe we are on the right track!

Gránit Bank’s performance has been recognised with 53 awards over the 13 years since its establishment!

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BANK OF THE YEAR AWARDS 2022

Between 2012 and 2022, Gránit Bank received a total of

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Other key awards and prizes: 2011 | Most Innovative Bank in Hungary (World Finance) 2014 | Bank of the Year in Hungary (The European)

awards

2017 | Financial institution of the Year (Figyelő TOP 200)

in the Mastercard

Bank of the Year competition

2021, 2022 | Superbrands (Superbrands Hungary) 2021, 2022 | Outstanding digital nancial organization trademark (Digital Success Programme)

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7. OUR MANAGEMENT MEMBERS OF THE BOARD OF DIRECTORS

Éva Hegedüs Chairperson-CEO

László Hankiss

Péter Jendrolovics

János Major

Judit Tóth

Deputy CEO

Deputy CEO

Deputy CEO

External member

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MEMBERS OF THE SUPERVISORY BOARD

Sándor Nyúl Chairman

István Árkovics

Dr. Judit Gubuznai

Gyuláné Lajtos

István Vida

Member

Member

Member

Member

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7. OUR MANAGEMENT

DEPUTY CHIEF EXECUTIVES

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Jenő Siklós

László Hankiss

Financial and Operations Division

Strategy and Analysis Division

Zoltán Nagy

Zoltán Tölgyesi

Compliance Division

Corporate Division

Péter Jendrolovics

János Major

Retail Division

IT and Subsidiary Coordination

8. OWNERSHIP STRUCTURE

GRÁNIT BANK (22.03.2023)

44.83%

TiberisDigital Tanácsadó Ltd.

36.08% 36,08% Gránit Bank Employee Ownership Programme

7.28% Pannónia Pension Fund 7,28% Gondoskodás 5.50% MBH 5,50% Pension Fund

4.33% 4,33% KMVKT* 1.52% 1,52% E.P.M. Tanácsadó Ltd. 0,46% 0.46% Other private investors

*Venture Capital Fund managed by Széchenyi Funds 27

CONTACT PERSONAL ADMINISTRATION THROUGH VIDEOBANK:

‣ Link: https://vbclient.granitbank.hu ONLINE LOAN ADMINISTRATION:

‣ Childbirth Incentive Loan: https://granitbank.hu/lakossag/hitelek/babavaro/ ‣ Mortgage: https://granitbank.hu/lakossag/hitelek/jelzaloghitel/ OVER-THE-PHONE ADMINISTRATION:

‣ Telephone customer service : +36 1 510 0527; +36 70 960 9871 BRANCH SERVICE:

‣ Central Customer Service : 1095 Budapest, Lechner Ödön fasor 8. ‣ Open: Mon-Fri: 8.30-16.00 ‣ WESTEND Branch: Westend City Center, 1. emelet, Hild József Sétány 24. ‣ Open: Mon-Fri: 10.30-18.00 Website:

‣ Link: https://granitbank.hu/

IMPRESSUM Published by: Gránit Bank Responsible publisher: FinTech Group Ltd. Editor in charge: Gábor Lemák Lector: Szilvia Egri The publication was produced with the participation of:

László Hankiss, deputy CEO Andrea Csicsáky, managing director Emília Papp, Head of Communication and PR Contact: Emília Papp Head of Communication and PR E-mail: papp.emilia@granitbank.hu

The illustrations used in this publication are licensed to Adobe Systems Software Ltd. under a subscription agreement between FinTech Group Ltd. and Adobe Systems Software Ireland Ltd. The illustrations, photographs and logos in this publication are protected by copyright. The use of illustrations, photos and logos is prohibited. Any use of all or part of the content requires the prior written permission of Granit Bank.

Gránit Bank, 2023. All rights reserved!