Gránit Bank Introduction 2024

Introduction 2024

Dear Reader!

Fourteen years ago, when 100% branchless banking seemed unthinkable, Gránit Bank was the first bank in Hungary to adopt a digital business model, and @me has proven us right.

Star@ng as a greenfield bank 14 years ago, Gránit Bank has grown to become the 8th largest bank in Hungary and has been profitable since its fourth year of opera@on. The reinvested earnings ensure that shareholder value con@nues to grow, the Bank maintains its compe@@ve advantage and year aHer year comes up with market-leading financial solu@ons that oHen lead the way globally and in Europe.

I believe that innova@on and constantly evolving technology will always be key factors in the future of banking. Today, it is clear that the mobile phone in our hands can be our bank, making everyday financial transac@ons quick, easy, cost-effec@ve and offering a high customer experience, while maintaining the personal touch of having a bank teller available from anywhere on VideoBank. Our goal is to con@nue to enter the market with cuQng-edge financial innova@ons that are sustainable and responsive to our customers' needs, introducing them to experien@al banking.

This belief in innova@on has not only been forward-looking, but has also delivered real, measurable results, as evidenced by the Bank's sustainable growth and profitability above the market average as well as the 60 awards that have been given to the Bank for its performance since its founda@on. All these achievements could not have been achieved without the trust of the Bank's shareholders and clients, and the excellent and crea@ve work of my team, for which I am extremely grateful.

I know that the choice of a bank is based on trust, and at Gránit Bank we have been working for fourteen years to ensure that our current and future customers feel that they come first, every moment, through con@nuous value crea@on.

Éva Hegedüs

Chairperson-CEO

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

HUNGARIAN BRAND

Gránit Bank, which started operations as a greenfield bank in May 2010, is owned by Hungarian investors.

DIGITAL BANK

Providing customized financial services to businesses and private individuals via digital channels.

CUSTOMER EXPERIENCE

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

SUSTAINABLE GROWTH

A dynamic increase in customer volume market share. Profitable operation for the tenth consecutive year, continuously expanding equity and high cost-efciency.

1. OUR FUNDAMENTAL PRINCIPLES

Gránit Bank aims to ofer the most modern online banking solutions and digital financial services to its customers on both domestic and cross-border markets in order to provide an outstanding customer experience in terms of convenience, security and speed while achieving efciency of operation and becoming a stable partner to value-creating businesses.

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 trust and long-term customer relations

‣ Clear and transparent communication on all channels

‣ Reliable and consistent operations, secure financial services

CUSTOMER-CENTERED INNOVATIONS

‣ Market-leading digital banking services tailored to customer needs and delivering high customer experience

‣ Developments are designed to make everyday financial transactions convenient, fast and sustainable by delivering branch-free digital banking

EFFICIENT OPERATION

‣ Streamlined organisation, efcient local decision-making

‣ Transparent operation, structured, predictable, conservative processes

2. OUR STRATEGY

DIGITAL, GREEN FINANCIAL SERVICES, CONSERVATIVE LENDING

Gránit Bank is Hungary’s first 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-efective solutions

Using innovative electronic banking and financial services to develop simple, convenient, and cost-efective solutions for retail customers, providing outstanding customer experience and serving the goal of sustainability.

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

Providing comprehensive financial and financing solutions for business customers.

THREE

STRATEGIC PILLARS

INNOVATIVE DIGITAL BANKING SERVICES

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

CONSERVATIVE VALUES

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

HIGH LIQUIDITY, COST-EFFICIENT OPERATION

The Bank’s business model ensures high liquidity and cost-efcient operation, ofering sustained favourable conditions for customers.

OUR VALUES FOR 3.

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.

TAILORED SOLUTIONS FOR BUSINESSES

WE MAKE BANKING EASY FOR YOU WITH OUR BANK ACCOUNT SERVICE

‣ Customised account management conditions, favourable account packages

‣ End-to-end online account opening process via VideoBank

‣ Attractive fixed-term deposit conditions for all maturities

WE PROVIDE FINANCING TO HELP YOU ACHIEVE YOUR GOALS

‣ Flexible financing 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, Baross Gábor Loan Program)

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 at several hotels

INNOVATIVE AND DIGITAL SOLUTIONS FOR RETAIL CUSTOMERS

FINANCES MOVED TO MOBILE

‣ Instant foreign currency account opening and foreign currency card application for existing customers in the app

‣ Highly afordable, instant foreign currency exchange without bank charges, at the FX mid-market exchange rate updated every five minutes in the app

‣ Instantly usable digital debit card, with debit card control, and access to all card details and PIN code in the app

‣ Monthly spending and income overview on mobile phone along with spending analysis

‣ Splitting expenses with payment request, QR code scanning, and check deposit digitally

‣ Family package - for parent and child with Family app unique on the market

COMPLETE BANK ACCOUNT MANAGEMENT

‣ Bank account opening from home with selfie in mobile app or via VideoBank and the contract is ready in minutes

‣ Possibility of a free bank account and debit card up to the age of 26

‣ Attractive deposit terms for 1-24 months also from mobile app

WE PROVIDE FINANCING TO HELP YOU ACHIEVE YOUR GOALS

‣ For buying, building, expanding or renovating a home with a digital application for a market housing loan

‣ Disbursement of state-subsidized loan products

‣ Baby Loan from 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 bonds purchases by opening a securities account in the app or via VideoBank

‣ Secure payment with Google Pay and Apple Pay

‣ Banking from anywhere on desktop or mobile phone via VideoBank

‣ Calculate and submit a home insurance quote from the app

4. IN IMPLEMENTING THE DIGITAL BUSINESS MODEL

Gránit iSMS about banking transactions

The launch of VideoBank

The establishment of Gránit Bank

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

New eBank with built-in spending analysis 2010

Lock function for card locking and unlocking

Full account opening via VideoBank

Buy and sell government bonds on VideoBank

Full account opening with selfie and digital card service

Digital mortgage lending with online pre-qualification (Home Calculator)

Launch of Google Pay

Launch of Apple Pay

Eco Calculator in eBank showing CO2 emissions accompanying card spending 2019

Payment request and payment by QR code on mobile

100% digital Baby Loan application

Gránit FairPayInnovative payment solution based on instant payment request

Paying bills digitally

Digital Baby Loan 2.0application within 30 minutes

Opening of securities account + buy and sell government bonds in eBank

Home insurance calculator in the eBank app

Instant foreign currency account opening in the app

Netcard*

Currency exchange at mid-market exchange rate

Credit card*

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

Instant application of HUF and FX debit card + showing PIN code in eBank

Integration of investment services into the eBank app*

2022

2024

5.

RESULTS

DYNAMIC GROWTH ALREADY FOR FOURTEEN YEARS

Profit before tax in 2023: STABLE RESULTS

Profitable operation for

DYNAMIC GROWTH

Balance sheet at 31.12.2023: HUF 1,274 billion

EFFICIENT OPERATION HUF 22 billion 10 years

HIGH PROFITABILITY

Return on equity

Average annual growth of 46%

Non-performing loan ratio

Operating costs as a percentage of balance sheet total Close to 100% high quality portfolio ROE: 28.4% NPL: 0.02%

Cost/income ratio C/I: 34.5%*

1.11%*

*Excluding bank tax, extra profit tax and financial transaction tax

Gránit Bank's operating cost cost/total assets ratio is significantly lower than the banking sector average*

Operating costs as a proportion of the balance sheet total (%)

Gránit Bank's profit after tax (ROAE) significantly higher than the market average

Gránit Bank grew at a significantly higher rate than the sector in 2023

Growth rate (Dec. 2023 / Dec. 2022)

Business loan + Bond Funding for Growth Scheme

With a consolidated balance sheet total of HUF 1,313 billion, Gránit Banking Group is a major player in the Hungarian financial sector, ofering universal banking services, investment services and asset management

ESG VALUES 6.

SUSTAINABILITY IN GRÁNIT BANK'S OPERATIONS

ECOLOGICAL FOOTPRINT

In 2023, the Bank's ecological footprint was negligible:

‣ 25 thousand tonnes of CO2 emissions were avoided

‣ 16.9 million A4 sheets of paper were saved

‣ 11 thousand trees were saved

‣ The staf are involved in the community planting of hundreds of saplings every year in partnership with the 10 Million Trees Foundation

ECOLOGICAL MINDSET

The Bank also promotes ecological thinking among its customers and young people:

‣ Through the Eco Calculator, 4 thousand trees have been planted by customers

‣ 100% of bank card were made of environmentally friendly materials

‣ Supported a competition to design the school garden of the future in partnership with the Foundation for School Gardens

CARBON NEUTRAL OPERATION

Gránit Bank is carbon neutral:

‣ Since 2020, it has been using credits - certified by the Gold Standard - for aforestation projects to neutralize its CO2 emissions as determined by the Scope 1 and Scope 2 calculation

‣ In 2023, the bank purchased credits through the Nicaforest reforestation programme, which contributes to the protection of 490 hectares of native vegetation

SOCIAL RESPONSIBILITY

Based on its corporate social responsibility strategy, Gránit Bank continued in 2023 to support objectives that improve the quality of life and promote inclusion for a wide range of people.

DONATION

The Hungarian Interchurch Aid is a strategic partner of Gránit Bank, and in the framework of the cooperation the Bank supports the needy with donations, as well as the programmes of the "Safe Beginning Children's House" in Kaposvár through the donations of its employees.

SUPPORTING SPORT

Gránit Bank sponsors the athletes and mass sports events of the Hungarian Canoe Federation under a multi-year framework agreement and is a major sponsor of the Hungarian Water Polo Federation.

PATRONAGE OF ART

For more than 10 years, the Bank has been the main sponsor of outstanding exhibitions at the Museum of Fine Arts. In 2023, it was the main sponsor of the exhibition "Renoir - The Painter and his Models", which enabled around a quarter of a million visitors to view the world-famous works. In 2023, the Bank supported the exhibition "The Sounds of Silence" by Karolina Sávolt.

FINANCIAL EDUCATION

The Bank works with educational institutions to promote financial education from primary schools to universities. Financial education is also supported by strategic agreements with the University of Szeged, Károli Gáspár Reformed University, Eszterházy Károly Catholic University, University of Miskolc, University of Public Service, Széchenyi István University and Óbuda University.

OUR AWARDS 7. AND PRIZES

Others also believe we are on the right track. Gránit Bank’s performance has been recognised with 60 awards over the 14 years since its establishment!

FIRST PLACES IN THE BANK OF THE YEAR AWARD IN 2023

Between 2012 and 2023, Gránit Bank received a total of in the Mastercard Bank of the Year competition

Other key awards and prizes:

2011 | Most Innovative Bank in Hungary (World Finance)

2014 | Bank of the Year in Hungary (The European) 2017 | Financial institution of the Year (Figyelő TOP 200)

2021 Outstanding digital financial 2022 organization trademark (Digital Success Programme) 2023 | Fastest Growing Digital Bank

and Finance

OUR MANAGEMENT 8.

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

MEMBERS OF THE SUPERVISORY BOARD

Sándor Nyúl Chairman

Dr. Judit Gubuznai

Gyuláné Lajtos

István Vida

István Árkovics Member Member Member Member

DEPUTY CHIEF EXECUTIVES

László Hankiss

Strategy and Analysis Division

Péter Jendrolovics

Retail Division

János Major

IT and Subsidiary Coordination

Zoltán Nagy

Compliance Division

Jenő Siklós

Financial and Operations Division

Zoltán Tölgyesi

Corporate Division

EXECUTIVE DIRECTORS

Zoltán Bede

Treasury Directorate

Judit Kovács

Back Ofce

Mihály Szabó-Ander

Risk Management Directorate

Andrea Csicsáky

Chief of Cabinet

Zsolt Lengyel

Acting executive director, IT Directorate

Judit Udovecz

Finance and Economic Directorate

Dávid Géczi

Corporate Division

Zoltán Sándor

Risk Management and Methodology Directorate

Judit Vincze

Retail Division

CONTACT

PERSONAL ADMINISTRATION THROUGH VIDEOBANK:

‣ Link: https://vbclient.granitbank.hu

ONLINE LOAN ADMINISTRATION:

‣ Baby 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:

‣ Lechner Branch: 1095 Budapest, Lechner Ödön fasor 8.

‣ Open: Mon-Fri: 8.30 a.m. – 4.00 p.m.

‣ WESTEND Branch: Westend City Center, 1. emelet, Hild József Sétány 24.

‣ Open: Mon-Fri: 10.00 a.m. - 6.00 p.m.

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, 2024. All rights reserved!