Gránit Bank Introduction 2024

Introduction 2024

CONTENT

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Foreword

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Our fundamental principle

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Our strategy

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Our values

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Key milestones in implementing the digital business model

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Results

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ESG values

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Our awards and prizes

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Our management

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Ownership structure

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Gránit Banking Group

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Dear Reader!

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

Star ng as a green eld bank 14 years ago, Gránit Bank has grown to become the 8th largest bank in Hungary and has been pro table 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 a er year comes up with market-leading nancial solu ons that o en 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 nancial transac ons quick, easy, cost-e ec ve and o ering 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 cu ng-edge nancial 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 pro tability 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 rst, every moment, through con nuous value crea on.

Éva Hegedüs

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”.

SUSTAINABLE GROWTH A dynamic increase in customer volume market share. Pro table operation for the tenth 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 on both domestic and cross-border markets 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 trust and long-term customer relations ‣ Clear and transparent communication on all channels ‣ Reliable and consistent operations, secure nancial services

CUSTOMER-CENTERED INNOVATIONS

‣ Market-leading digital banking services tailored to

customer needs and delivering high customer experience

‣ Developments are designed to make everyday nancial transactions convenient, fast and sustainable by delivering branch-free 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 goal 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

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

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3. OUR VALUES

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 a ordable, instant foreign currency exchange without bank charges, at the FX mid-market exchange rate updated every ve 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 sel e 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

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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

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4. KEY MILESTONES IN IMPLEMENTING THE DIGITAL BUSINESS MODEL

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

Gránit iSMS about banking transactions

Full account opening via VideoBank

Lock function for card locking and unlocking

The launch of VideoBank

New eBank with built-in spending analysis

The establishment of Gránit Bank

2010

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2012

2014

2015

2016

2017

2018

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

Launch of Google Pay

Buy and sell government bonds on VideoBank

Launch of Apple Pay

2019

Full account opening with sel e and digital card service

Payment request and payment by QR code on mobile

2020

Eco Calculator in eBank showing CO2 emissions accompanying card spending

100% digital Baby Loan application

2021

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4. KEY MILESTONES IN IMPLEMENTING THE DIGITAL BUSINESS MODEL

Paying bills digitally

Digital Baby Loan 2.0 application within 30 minutes

Gránit FairPay Innovative payment solution based on instant payment request

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

2022

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*

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

Integration of investment services into the eBank app*

2023

2024

*2024 H2

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5. RESULTS

DYNAMIC GROWTH ALREADY FOR FOURTEEN YEARS

STABLE RESULTS

DYNAMIC GROWTH

Pro t before tax in 2023:

Balance sheet at 31.12.2023:

HUF 22 billion

HUF 1,274 billion

Pro table operation for

Average annual growth of

10 years

46%

HIGH PROFITABILITY

EFFICIENT OPERATION

Return on equity

Close to

ROE: 28.4%

100%

Non-performing loan ratio

NPL: 0.02% Cost/income ratio

C/I: 34.5%*

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

1.11%*

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

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Pro table

16.78%

46.71%

from the 4th nancial year

Total capital adequacy ratio

loan/deposit ratio (including re nancing)

Balance sheet total 2010-2023 HUF billion 1400 1 274

1167 1 019

933

CAGR* 46.5%

700

687 574

467 307

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13 7 2010 május 2011

51

73 2013

142

152

2015

354

398

228

2017

2019

2021

2023

*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 cost/total assets ratio is signi cantly lower than the banking sector average*

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

-1.1%

2.2%

1.1% Financial sector 31.12.2023

Gránit Bank 31.12.2023

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

Cost-to-income ratio lower than the sector

ROAE**

Cost to income ratio

-9.4%

43.9%

1.37x

34.5%

28.8% 21.1% Financial sector 31.12.2023

Gránit Bank 31.12.2023

Financial sector 31.12.2023

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

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Gránit Bank 31.12.2023

Gránit Bank grew at a signi cantly higher rate than the sector in 2023 Growth rate

(Dec. 2023 / Dec. 2022) Retail deposit

Gránit Bank

Financial sector

9.1% -6.2%

Retail loan

22.2% 2.3%

Business deposit

39.8% 1.9%

Business loan + Bond Funding for Growth Scheme

6.7% 5.1% 25.1%

Balance sheet total

3.1% 31.12.2022*

With a consolidated balance sheet total of HUF 1,313 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 1,313 billion

Assets under management (AUM)

HUF 2,571 billion

Loans and bonds

HUF 512 billion

Pro t before tax

HUF 24,832 million

Pro t after tax

HUF 21,581 million

*Gránit Bank Ltd., Equilor Investment Ltd., Gránit Asset Management Ltd.

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6. ESG VALUES 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 sta 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 - certi ed by the Gold

Standard - for a orestation 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

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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 nancial 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.

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7. OUR AWARDS 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!

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FIRST PLACES IN THE BANK OF THE YEAR AWARD IN 2023

Easy and Convenient Banking Experience of the Year

Bank of the Year

2023

Youth Financial Solution of the Year

2023

Between 2012 and 2023, Gránit Bank received a total of

Acquisition Marketing Campaign of the Year

2023

2023

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

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awards

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

in the Mastercard

2021 Outstanding digital nancial 2022 organization trademark (Digital Success Programme)

Bank of the Year competition

2023 | Fastest Growing Digital Bank Hungary Global Banking and Finance Review

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8. OUR MANAGEMENT MEMBERS OF THE BOARD OF DIRECTORS

Éva Hegedüs Chairperson-CEO

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László Hankiss

Péter Jendrolovics

János Major

Judit Tóth

Deputy CEO

Deputy CEO

Deputy CEO

External member

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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8. OUR MANAGEMENT

DEPUTY CHIEF EXECUTIVES

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László Hankiss

Péter Jendrolovics

Strategy and Analysis Division

Retail Division

János Major

Zoltán Nagy

IT and Subsidiary Coordination

Compliance Division

Jenő Siklós

Zoltán Tölgyesi

Financial and Operations Division

Corporate Division

EXECUTIVE DIRECTORS

Zoltán Bede

Andrea Csicsáky

Dávid Géczi

Treasury Directorate

Chief of Cabinet

Corporate Division

Judit Kovács

Zsolt Lengyel

Zoltán Sándor

Acting executive director, IT Directorate

Risk Management and Methodology Directorate

Judit Udovecz

Judit Vincze

Finance and Economic Directorate

Retail Division

Back O

ce

Mihály Szabó-Ander Risk Management Directorate

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9. OWNERSHIP STRUCTURE

GRÁNIT BANK (31.12.2023)

44.83%

TiberisDigital Tanácsadó Ltd.

44,83%

32,32% 32.32% Gránit Bank Employee Ownership Programme

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

5,27% 5.27% E.P.M. Tanácsadó Ltd. 4,33% 4.33% Széchenyi Funds 0,46% 0.46% Other private investors

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10. GRÁNIT BANK GROUP

GRÁNIT BANK GROUP

50.01%

GRÁNIT BANK LTD.

91.16%

EQUILOR INVESTMENT LTD.

ASSET MANAGEMENT LTD.

Capital market services, nancial advice, asset management

Asset management, investment fund management, portfolio management

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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!