Macedonian Macroeconomic Data and Banking System Overview

Macroeconomic data and BANKING SYSTEM OF THE REPUBLIC OF NORTH MACEDONIA December 31, 2023

Macedonian macroeconomic environment (EUR millions; percentages) 4Q 2023 Credit rating of the state BB + outlook Stabile, Fitch, Credit rating agency confirmed the implementation of good policies, the stabile banking system and domestic currency and increased foreign reserves Key economic indicators 2021 2022 2023 Q1 23 Q2 23 Q3 23 Q4 23 Industrial production volume index External Trade (%) total import External Trade (%) total export Real GDP growth (%) Central Government Budget surplus/deficit (% GDP) Inflation (CPI%) Reference rate Current Account Bal. (EUR millions) Gross External Debt (EUR millions) Foreign Reserves (EUR millions) Foreign direct invest. (EUR millions) Unemployment (%) MKD/EUR 1,4 -0,3 0,7 0.1 1.5 0,7 0.7 9,648.1 6,969.8 12,125 8,300 11,149 8.323 2,759.6 2,126.1 2,778.1 2,125.6 2,708.0 1,988.6 2,900.5 2,082.3 Industrial production volume index 100.7 annual 4,5 -5.4 3,2 1.25 -329, 9.576,6 3.643,2 387.5 15,2 61,63 2.2 -4,5 14,2 4.75 -797,4 10,790 3.862,8 654,2 14,4 61,62 1 1.4 -0,4 16.1 5.5 92.8 0.9 -2.3 13.6 6 -124.9 11397.3 4.189,7 122.4 13,1 61.56 1 0.9 -1,6 9.4 6.3 -4,8 9,4 6.3 95.3 -0,5 11.5 6.3 239.2 Trade Import amounts 11.149 EUR millions Export amounts 8.323 EUR millions -111.7 11.463 4,538 206.2 13.0 61.49 11.463 4,538 523.1 13.1 61.56 11059.7 4.159,2 143.3 13,3 61.67 11072.09 3,901.7 GDP growth 1.0% 51.2 12.8 61.51 Inflation 9.4% Achieved levels Inflation CPI RN Macedonia / EU Forecast 03 23 FX Reserves 4.538 EUR millions 17.1% 16.7% 16.1% 20.0% 15.3% 14.5% 14.2% Reference rate 6.3% 13.6% 12.8% 12.2% 11.5% 10.7% 9.9% 9.4% 9.5% 10.0% 9.5% 3.2% Labour Market 9.2% 8.6% 8.5% 7.0% 6.9% 6.1% 5.5% 5.3% 5.2% 5.0% 4.3% 9/2023 0.0% 2.9% 10/2023 2.9% 12/2023 2.4% 11/2023 Rate of unemployment 13.1 12/2021 12/2022 01/2023 02/2023 3/2023 4/2023 5/2023 6/2023 7/2023 8/2023 Consumer Price Index (CPI) RN acedonia Forcast 10'23 NBRSM Consumer Price Index (CPI) EU Source : NBRM BASIC ECONOMIC INDICATORS FOR REPUBLIC OF NORTH MACEDONIA NBRM, ANNUAL REPORT 2023 NBRM, REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system The credit rating of the state: BB+' Ratings Affirmed; Outlook Stable Fitch, Credit rating agency source: www. fitchraitings.com (Rating Report Republic of North Macedonia October 07, 2023)

Macedonian Banking sector 4Q 2023 state owned 4% annual change (%) quarterly change (%) Greece 24% in millions of denars domestic shareholders 19% 12/2022 3/2023 6/2023 9/2023 12/2023 Total assets of the Banking system 699,060 703,789 684,255 675.891 746,739 9.1% 6.1% Loans 422,522 419.129 430,213 432,312 440,560 4.3% 1.9% Deposits 493,955 490.137 509,826 516,317 539,602 9.2% 4.5% Switzerland 1% Capital & reserves 84,361 87.996 89,731 92,561 92,910 10.1% 0.4% Bulgaria 5% PARTICIPATION OF FOREIGN CAPITAL Slovenia 15% 78.8% ASSETS 746,739 77.7% 76.3% 75.4% 75.4% 703,789 699,060 Turkey 17% 74.4% 684,255 675,891 72.9% Germany 4% Austria 12% 2017 2018 2019 2020 2021 2022 2023 12/2022 3/2023 6/2023 9/2023 12/2023 Financial intermediation Financial intermediation 88.8 85.2 85.2 83.7 83.3 The Banking sector consists of 13 active banks, 5 large (amounts 605,076 Mio. Den.) 81% in total assets, 3 medium (amounts 96,104 Mio. Den.) 12% in total assets, 5 small (amounts 45,560 Mio. Den.) 6% % in total assets and 2 saving houses. The level of financial intermediation measured by: he ratio of total assets and GDP is 88.8% which indicates the dominant position of banks in the financial system Total deposits from non-financial sector/GDP is 64.2% Total gross loans to non-financial sector/GDP is 52.4% 64.2 62.5 61.5 60.7 60.7 Participation of foreign capital 78,8% 52.6 52.4 52.3 51.9 51.2 Total assets of the Banking system registered the amount of 746.739 Mio. Den., increased by 9.1% annual and 6.1% quarterly, which is supported by the growth of the deposit by 9.2% annual and 4.5% quarterly and the capital position of the banks which increased by 10.1% annual, 0.4% quarterly. Total loans increased by 4.3% annual, 1.9% quarterly. Source NBRSM, Department for financial stability, Last revision to GDP figures (at current prices): 07.12.2023 12/2022 3/2023 6/2023 9/2023 12/2023 NBRM, ANNUAL REPORT 2023 Assets/GDP Deposities/GDP Loans/GDP

Macedonian Banking sector Assets 4Q 2023 Liquidity Coverage Ratio Liquidity Coverage Ratio Asset structure ( (accordance with requirements of Basel III accordance with requirements of Basel III) ) 275.3% 273.8% 269.5% 268.4% Highly liquid assets 32% 263.5% other assets 8% 86% 86% 84% 84% 82% 164.4% 161.3% 161.3% 158.8% 158.0% 65% 62% 61% 60% 58% CREDIT EXPOSURE 59 % 12/2022 3/2023 6/2023 9/2023 12/2023 Liquidity coverage ratio EU 52% 50% 49% 48% 47% 12/2022 3/2023 Liquid assets /to total short-term liabilities Liquid assets /deposite from households Loan-to-deposit ratio LDR 6/2023 9/2023 12/2023 In structure of total assets highly liquid assets participates by 32%* participates by 59% while the rest of 8% is other assets. Stabile participation of liquid assets confirm the appropriate liquidity risk management by banks and the satisfactory resilience to the assumed extreme liquidity outflows Liquidity Coverage Ratio 263.5%, which is almost three times higher than the regulatory minimum of 100% UROZONE LCR 164.4% Liquid assets / Assets 32% Liquid assets / Short-term liabilities 52% Liquid assets /Deposits households 65% Loans/Deposits ratio LDR 82% * Methodology for calculation of LCR is in accordance with requirements of Basel III accord. total credit exposure ** Liquid assets: cash,treasury bills, government bonds *** Non-financial sub.: state, non-financial companies, households, nonprofit ins. and nonresidents Source: NBRM, REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system NBRM, ANNUAL REPORT 2023 European Central Bank Banking supervision www.bankingsupervision.europa.eu/home/html/index.en.html Liquid assets/Assets Liquid assets/Assets Loans/Assets Loans/Assets 61% 59% 62% 62% 62% 32% 31% 30% 30% 29% 12/2022 3/2023 6/2023 9/2023 12/2023

Macedonian Banking sector Loans 4Q 2023 in millions of denars Loans - households LOANS Structure of loans Structure of loans Car loans 0,15% 440,560 50% 51% 51% 51% 51% 432,312 430,213 real estate loans 34 % 422,522 419,129 49% 48% 48% 48% 48% Credit cards & consumer loans 64 % 12/2022 3/2023 6/2023 9/2023 12/2023 12/2022 3/2023 6/2023 9/2023 12/2023 NON.FIN.COM HOUSHOLDS annual change (%) Total loans amounts 440.560 Mio. DEN. increased by 4.3% annual or 1.9 % quarterly Households' loans: consumer loans and credit cards increased by 4.6% annual or 1.6% quarterly Real estate loans, increased by 10.2% annual or 3.3% quarterly Car loans increased by 11.3% annual or 4.7% quarterly Our banks have also paid attention to raising awareness about green loans as a form of financing that enables borrowers to invest exclusively in projects that make a substantial environmental impact, including climate- related projects, improve the energy efficiency, support investments in green technologies, materials and solutions, support investments in renewable energy sources, control and prevention of pollution and protection of the environment. Green Loans - households amount 1.224 Mio. DEN, 0,5% households *According to World Bank quarterly change (%) Loans - households 12/2022 3/2023 6/2023 9/2023 12/2023 Consumer loans and credit cards 149,922 150,485 153,337 154,434 156,865 4.6% 1.6% Car loans 362 356 370 385 403 11.3% 4.7% in total Loans to Real estate loans 76,393 77,935 80,246 81,525 84,196 10.2% 3.3% other 3,459 3,416 3,323 3,366 3,331 -3.7% -1.0% Source: REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA , Indicators on the banking system, annex 9 Total 230,136 232,192 237,276 239,710244,795 6.4% 2.1% Green loans Weighted interest rates on granted loans INTEREST RATES ON TOTAL GRANTED LOANS (Denar and foreign currency) 12/2022 3/2023 6/2023 9/2023 12/2023 1.308 1.115 1,187 1.186 1.224 -6,4.% 3.2% 4,44 5,04 5,12 5.49 5.47

in millions of denars Macedonian Banking sector Loans 4Q 2023 Loans of non with with48% 48%, , increased by 3.6 increased by 3.6% % annual, and 3.1% quarterly Loans structure structureby economic activity of by economic activity ofnon financial companies financial companies : non- -financial companies financial companies participate participate pollution and protection of the environment. Green Loans of non-financial com. amount 18.639 Mio. DEN 8.6% in total Loans of non-financial companies According last macroeconomic ESG indicators have been identified as transition risks: the following climate sensitive activities: Fossil fuels Utilities Energy-intensive sectors Buildings Transportation Agriculture According to World Bank Source: REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA , Indicators on the banking system, annex 9 Loan concentration by climate policy relevant sectors Agriculture non- - Transportation Buildings Our banks have also paid attention to raising awareness about green loans as a form of financing that enables borrowers to invest exclusively in projects that make a substantial environmental impact, including climate- related projects, improve the energy efficiency, support investments in green technologies, materials and solutions, support investments in renewable energy sources, control and prevention of Energy-intensive sectors Utilities Fossil fuels TOTAL Climate Policy Relevant Sectors 2022 2021 2020 2019 2018 2017 Loan concentration by economic activity -non-financial annual change (%) quarterly change (%) companies 12/2022 3/2023 6/2023 9/2023 12/2023 Industry 64,130 63,036 63,747 62,932 61,214 -4.5% -2.7% 41,136 41,840 Construction 40,073 39,959 43,768 9.2% 4.6% Electricity, gas, steam and air conditioning supply 19,385 20,196 16,233 15,594 21,678 33.5% 7.3% 78,829 77,253 Trade 81,170 78,841 82,010 9.2% 6.2% Transport and storage 20,337 21,125 21,249 21,187 21,509 5.8% 1.5% other 44,573 45,495 46,672 44,483 46,062 3.3% 3.5% Total 266,516 264,049 271,108 267,891 276,240 3.6% 3.1% Green Loans 14,081 14,600 16,596 17,763 18,639 32.4% 4.9%

Macedonian Banking sector Loans 4Q 2023 Non-performing loans / Total loans 2.89% Indicators for the quality of credit portfolio 2.87% 2.85% 2.82% 2.77% annual change (pp) quarterly change (pp) -0.12% -0.05% Non-performing loans / Total loans 2.30% 2.27% 2.27% 2.26% 2.24% 0.72% 0.67% NPL Coverage with impairment 12/2022 3/2023 6/2023 9/2023 12/2023 Non performing loans (NPL) EU Rate of non-performing loans 2.77%, reduced by (-0,12) pp annual and (-0.05) pp quarterly, participation of NPL ,households 35%, non-financial companies 64% EUROZONE 2,30% NPL Coverage - Coverage of non-performing loans with impairment (non- financial companies) 70,10% increased by 0,72 pp annual or 0,67 pp quarterly EUROZONE 40.58% Coverage - Coverage of non-performing loans with impairment 71.06% 70.42% 70.10% 69.43% 69.38% 42.03% 41.94% 41.11% 40.86% 40.58% Source: NBRM, REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system, annex 5 NBRM, ANNUAL REPORT 2023 European Central Bank Banking supervision 12/2022 3/2023 6/2023 9/2023 12/2023 Coverage with impairment EU

Macedonian Banking sector Liability s 4Q 2023 in millions of denars LIABILITIES STRUCTURE LIABILITIES STRUCTURE annual change (%) quarterly change (%) Liability's structure 12/2022 3/2023 6/2023 9/2023 12/2023 14% 14% 15% 16% 17% Deposits' 493,955 490.137 509,826 516,317 539,602 9.2% 4.5% 13% 13% 12% 13% 12% Capital & reserves 84.361 87.996 89,731 92,561 92,910 10.1% 0.4% Other liabilities 105,939 97,758 99,503 94,911 114,227 7.8% 20.4% 73% 73% 72% 71% 71% 684,255 675,891 699,060 703,789 746,739 9.1% 6.1% Total 12/2022 3/2023 6/2023 9/2023 12/2023 Deposits' Capital & reserves Other liabilities Capital adequacy ratio annual, or (-0.3) pp quarterly and likewise indicates on the capacity and coverage of the risks from Banks activity as well as stabile level on Banking sector solvency EUROZONE 15,73% In the structure amount 539.602 Mio. DEN are dominant that participate by 73%, regarding previous year are increased by 9.2% or 4.5% quarterly of liabilities, the deposits 18.36% 18.18% 19.00% 18.10% 18.04% 17.72% 18.00% 17.00% 16.00% Source: NBRM REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA Indicators on the banking system European Central Bank Banking supervision Capital & reserves amount 92.910 Mio. DEN., participate with 13%, increased by 10.1% annual, or 0.4% quarterly 15.00% 15.73% 15.72% 15.61% 15.53% 15.38% 14.00% 13.00% Capital adequacy ratio is 18,10% regarding previous year is increased by 0,4 pp and 12/2022 3/2023 6/2023 9/2023 12/2023 Capital adequacy ratio EU

Macedonian Banking sector Deposits Q 2023 Deposits structure Nonfinancial corporations participate with 28%, increased by 13.2% annual and 7.3% quarterly Deposits from households participate with 68%, increased by 7.8% annual and 4.1% quarterly in millions of denars 539,602 516,317 509,826 493,955 490,137 354,166 340,279 340,092 331,967 328,436 Source: NBRM REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA Indicators on the banking system Deposit's structure 167,385 155,949 150,250 annual change(%) quarterly change(%) 147,832 138,935 Total 9.2% 4.5% 12/2022 3/2023 6/2023 9/2023 12/2023 non.fin.com. 13.2% 7.3% households 7.8% 4.1% NON.FIN.COM. HOUSHOLDS TOTAL Household's annual7.8 % Weighted interest rates on received deposits 12/2022 3/2023 6/2023 9/2023 12/2023 Total deposits annual9.2 % INTEREST RATES ON TOTAL RECEIVED DEPOSITS (Denar and foreign currency) 0,86 1,11 1,40 1,59 1,79

Macedonian Banking sector Profitability indicators 4Q 2023 Operating costs / Total regular income (Cost-to-income ratio) Return on average assets (ROAA) Return on average equity (ROAE) 2.33% 61.19% 18.27% 60.36% 2.23% 2.50% 20.00% 17.58% 2.15% 17.05% 16.13% 2.00% 57.32% 57.02% 55.96% 2.00% 15.00% 12.24% 1.46% 1.50% 10.00% 47.80% 1.00% 10.04% 10.01% 9.56% 9.31% 43.69% 43.40% 0.65% 0.65% 43.21% 0.63% 0.62% 5.00% 7.68% 42.43% 0.50% 0.49% 0.00% 0.00% 12/2022 3/2023 6/2023 9/2023 12/2023 12/2022 3/2023 6/2023 9/2023 12/2023 12/2022 3/2023 6/2023 9/2023 12/2023 ROA EU ROE EU Cost-to-income ratio EU Banking sector has stabile rates of profitability measured by Return on average asset (ROAA) 2.00%, increased by 0.54 pp annual, or (-0,33) pp quarterly EUROZONE 0.63% Return on average equity (ROAE) 16,13%, increased by 3,89 pp annual or (-2,14) pp quarterly EUROZONE 9,31% 43,40% of total income cover operating costs of the Banks 70.68% of operating income is net interest income Source: NBR REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system European Central Bank Banking supervision Net interest income / operating income EU 70.72% 70.68% 70.40% 70.15% 62.62% annual change (pp) quarterly change (pp) Profitability 61.11% 60.56% 59.50% 58.71% Return on average assets (ROAA) 0.54% -0.33% 56.46% Return on average equity (ROAE) 3.89% -2.14% Cost-to-income ratio -4.40% 0.97% 12/2022 3/2023 6/2023 9/2023 12/2023 Net interest income / operating income 8.06% -0.04%