Overview of North Macedonian Macroeconomic Environment and Banking Sector

Macroeconomic data and Banking system of the Republic of North Macedonia March 31, 2023

Macedonian macroeconomic environment Key economic indicators 2020 2021 2022 1Q 2023 Credit rating of the state BB + outlook Stabile, Standard & Poor s confirmed the implementation of good policies, the stabile banking system and domestic currency and increased foreign reserves Industrial production volume index External Trade (%) total import External Trade (%) total export Real GDP growth (%) Central Government Budget surplus/deficit (% GDP) Inflation (CPI%) Current Account Bal.(Mio EUR) Gross External Debt (Mio EUR) Foreign Reserves (Mio EUR) Foreign direct invest. (Mio EUR) Unemployment(%) MKD/EUR -9,5 % -9.7 -9.9 -4,7 -8.1 1.2 -318 8.536,1 3.359,87 154.7 16,40 61,69 1,4 % 26.9 20.5 4,0 -5.4 3,2 -366.4 9.576,6 3.643,28 387.5 -0,3% 25,8 19,9 2.1 -4,5 14,2 -772,4 10.855,8 3.862,86 670,2 0.1 2.9 9.6 2,1 -0,4 16.1 122,5 Industrial production volume index 100.1 annual 11,079.82 4.159,2 113,7 - 61.69 Trade Import amounts 170 121 Mio MKD, increased 2.9% annual, Export amounts 131 114 Mio MKD, increased 9,6% annual, 15,2 61,63 14,4 61,49 GDP growth 2.1% Achieved levels Achieved levelsInflation CPI RN Macedonia CPI RN Macedonia Inflation 17.1% 16.9% Inflation 16.1% (last change 11.3% 31.5.2023) 16.1% 14.2% FX Reserves 4.159,2Mio EUR 13.0% 11.3% Reference rate 4.75% *6% (last change 21.6.2023 ) 12/2022 01/2023 02/2023 3/2023 4/2023 5/2023 The credit rating of the state: BB+' Ratings Affirmed; Outlook Stable Fitch Ratings, Credit rating agency Source: www.fitchratings.com Rating Report April 15, 2023 Labour Market Rate of unemployment 14,4% (31.12.2022) Source : NBRM BASIC ECONOMIC INDICATORS FOR REPUBLIC OF NORTH MACEDONIA

Macedonian Banking sector 1Q 2023 state owned 4% annual change (%) quarterly change (%) Greece 23% in millions of denars domestic shareholders 20% 3/2022 6/2022 9/2022 12/2022 3/2023 Total assets of the Banking system 635,968 643,906 657,256 684,255 675.891 6.3% -1.2% Loans 393,812 404,440 411,696 422,522 419.129 6.4% -0.8% Deposits 454,700 455,635 469,603 493,955 490.137 7.8% -0.8% Switzerland 1% Capital & reserves 76,626 79,655 82,731 84,361 87.996 14.8% 4.3% Bulgaria 5% PARTICIPATION OF FOREIGN CAPITAL Slovenia 18% ASSETS 77.72% 684,255 675,891 76.29% 75.41% 75.37% 657,256 74.36% Turkey 14% 643,906 635,968 72.89% Germany 4% Austria 11% 3/2022 6/2022 9/2022 12/2022 3/2023 2017 2018 2019 2020 2021 2022 Financial intermediation 87.6 86.4 86.1 83.2 82.1 90.0 The Banking sector consists of 13 active banks, 5 large (amounts 548.011 Mio.Den.) 81% in total assets, 3 medium (amounts 85.440 Mio. Den.) 13% in total assets, 5 small (amounts 42.439 Mio.Den.) 6% % in total assets and 2 saving houses. The level of financial intermediation measured by: he ratio of total assets and indicates the dominant position of banks in the financial system Total deposits from non-financial sector/GDP is 59,6% Total gross loans to non-financial sector/GDP is 50,9% 80.0 GDP is 82,1 % which 62.6 62.1 70.0 61.7 59.6 58.9 60.0 Participation of foreign capital 77,72% 50.0 54.2 54.1 53.2 Total assets of the Banking system registered the amount of 675.891 Mio. Den., increased by 6.3% annual and (-1.2%) quarterly, which is supported by the growth of the deposit by 7.8% annual and (-0.8%) quarterly and the capital position of the banks which increased by 14.8 % annual, 4.3% quarterly. Total loans increased by 6.4 % annual, (-0.8%) quarterly. 52.2 50.9 40.0 3/2022 6/2022 9/2022 12/2022 3/2023 Source NBRSM, Department for financial stability, Last revision to GDP figures (at current prices): 05.6.2023. Total assets/GDP Total deposits from non-financial sector/GDP Total gross loans to non-financial sector/GDP

Macedonian Banking sector Assets Liquidity Coverage Ratio Liquidity Coverage Ratio Liquidity Coverage Ratio Liquidity Coverage Ratio (Methodology for calculation of LCR is in accordance with requirements of Basel III accord) Asset structure Highly liquid assets 29% LCR RN kedonija LCR U other assets 8% 88.8% 87.7% 86.6% 85.5% 85.5% 273.77 269.5 258.89 255.20 61.2% 61.1% 58.1% 57.9% 57.7% 247.41 48.2% 47.7% 47.3% 46.0% 45.7% CREDIT EXPOSURE 62 % 167.39 3/2022 6/2022 9/2022 12/2022 3/2023 164.32 161.99 161.46 Liquid assets /to total short-term liabilities (contractual maturity) Liquid assets /to deposites from households Loans/Deposites In structure of total assets highly liquid assets participates by 29%*, total credit exposure participates by 62% 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 269,5 %, which is almost three times higher than the regulatory minimum of 100% Liquid assets / Assets 29% Liquid assets / Short-term liabilities 47,3% Liquid assets /Deposits households 57,9% Loans/Deposits 86% * Methodology for calculation of LCR is in accordance with requirements of Basel III accord. Liquid assets/ Liquid assets/A Assets Loans/Assets Loans/Assets ssets ** Liquid assets: cash,treasury bills, government bonds *** Non-financial sub.: companies, households, nonresidents state, nonprofit non-financial ins. 29% 29% 29% 30% 30% and Source: NBRM, REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA , Indicators on the banking system 63% 63% 62% 62% 62% (Methodology for calculation of LCR is in accordance with requirements of Basel III accord) 3/2022 6/2022 9/2022 12/2022 3/2023

Macedonian Banking sector Loans 1Q 2023 in millions of denars Loans - households Credit portfolio Credit portfolio LOANS 51.02% 50.66% 50.66% 50.57% 422,522 Car loans 0,16% 419,129 50.02% 411,696 404,440 real estate loans 33 % 393,812 48.57% 48.42% 48.38% 48.32% 47.96% Credit cards & consumer loans 65 % 3/2022 6/2022 9/2022 12/2022 3/2023 3/2022 6/2022 9/2022 12/2022 3/2023 NON.FIN.COM HOUSHOLDS annual change (%) Total loans amounts 419.129 Mio. DEN. increased by 6,13% annual or 0.89% quarterly. Households' loans: consumer loans and credit cards increased by 3.95% annual or 0,38% quarterly Real estate loans, increased by 11,14% annual or 2.02% quarterly car loans increased by 52.78% annual or (-1.59%)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 1.115 Mio.DEN,0,6% in total Loans to households *According to World Bank quarterly change (%) Loans - households 3/2022 6/2022 9/2022 12/2022 3/2023 Consumer loans and credit cards 144,773 147,721 148,748 149,922 150,485 3.95% 0.38% Car loans 233 230 335 362 356 52.78% -1.59% Real estate loans 70,121 72,409 74,182 76,393 77.935 11.14% 2.02% other 3,646 3,607 3,535 3,459 3,416 -6.29% -1.25% Source: REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA , Indicators on the banking system, annex 9 Total 218,772 223,967 226,800 230,136 232,192 6.13% 0.89% Green loans 1,346 1,373 1,382 1.308 1.115 -17.16% -14.76% Weighted interest rates on granted loans INTEREST RATES ON TOTAL GRANTED LOANS (Denar and foreign currency) 3/2022 6/2022 9/2022 12/2022 3/2023 4.30 4.27 4,35 4,44 5,04

Macedonian Banking sector Loans 1Q 2023 Loan concentration by economic activity Loans of non participate with participate with48% annual, and (-0.93%) quarterly Loans structure structureby economic activity of by economic activity of non non- -financial companies financial companies : non- -financial companies financial companies 48%, , increased by 4.95 increased by 4.95% % 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 of non-financial com. amount 14.600 Mio.DEN 6.9% in total Loans of non- financial companies According to World Bank Other Transport and storage Trade Trade 30%, increased by 4.37% annual or (-2.87%) quarterly Electricity, gas, steam and air conditioning supply Industry 24%, increased by 3.5% annual or(-1.71%) quarterly Construction Industry Construction 15%, reduced by (-0.20%) annual, (-0.28)quarterly Source: REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA , Indicators on the banking system, annex 9 0 20,000 40,000 60,000 80,000 100,000 Our banks have also paid attention to raising awareness about green loans as a 3/2023 12/2022 9/2022 6/2022 3/2022 in millions of denars annual change (%) quarterly change (%) Loan concentration by economic activity -non- financial companies 3/2022 60,906 6/2022 60,170 9/2022 58,988 12/2022 64,130 3/2023 63,036 Industry 3.50% -1.71% Construction 40,039 39,717 40,117 40,073 39,959 -0.20% -0.28% Electricity, gas, steam and air conditioning supply Trade 11,660 75,540 17,733 14,018 76,939 18,338 15,772 77,340 18,933 16,233 81,170 20,337 15,594 78,841 21,125 33.74% 4.37% 19.13% -3.94% -2.87% 3.87% Transport and storage Other 45,706 45,083 44,099 44,573 45.495 -0.46% 2.07% Total 251,584 254,265 255,249 266,516 264,049 4.95% -0.93% Green loans 9,454 9,565 11,494 14.081 14.600 54.43% 3.69%

Macedonian Banking sector Loans 1Q 2023 Non Non- -performing loans performing loans NPL NPL 3.3% 3.2% 3.1% 2.89% 2.85% Indicators for the quality of credit portfolio annual change (pp) quarterly change (pp) 2.51% 2.35% 2.30% 2.28% - 0.24 - 0.04 Non-performing loans / Total loans Rate of non-performing loans (non-financial companies) 4.6 1.7 03/2022 06/2022 09/2022 12/2022 03/2023 NPL cedonija NPL EU NPL COVERAGE Rate of non-performing loans 2.85%, reduced by (-0,24) pp annual and (-0.04) pp quarterly, participation of NPL ,households 34%, non-financial companies 65% 71.06% NPL Coverage - Coverage of non-performing loans with impairment (non- financial companies) 71.06% increased by 4.6 pp annual or 1.7 pp quarterly 69.4% 67.6% Source: NBRM REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system, annex 5 European Central Bank Banking supervision https://www.bankingsupervision.europa.eu/home/html/index.en.html 66.4% 66.0% 0 1 2 3 4 5 6

Macedonian Banking sector Liability s 1Q 2023 LIABILITIES STRUCTURE LIABILITIES STRUCTURE annual change (%) quarterly change (%) Liability's structure 3/2022 6/2022 9/2022 12/2022 3/2023 14% 15% 16% 16% 17% 13% 12% 13% 12% 12% Deposits' 454,700 455,635 469,603 493,955 490.137 7.8% -0.8% Capital & reserves 76,626 79,655 82.730 84.361 87.996 14.8% 4.3% 73% 72% 71% 71% 71% Other liabilities 104,642 108,616 104,923 105,939 97,758 -6.6% -7.7% 635,968 643,906 657,256 684,255 675,891 6.3% -1.2% Total 3/2022 6/2022 9/2022 12/2022 3/2023 in millions of denars Deposits' Capital & reserves Other liabilities Capital adequacy ratio Capital adequacy ratio 18.50% In the structure amount 490.137 Mio. DEN are dominant that participate by 73%, regarding previous year are increased by 7.8% or (-0.8%) quarterly. of liabilities, the deposits Capital adequacy ratio is 18.04% regarding previous year is increased by 0,04 pp annual, or 0.32% quarterly and likewise indicates on the capacity and coverage of the risks from Banks activity as well as stabile level on Banking sector solvency and 18.04% 18.00% 17.72% 17.71% 17.30% 17.50% Capital & reserves amount 87.996 Mio. DEN., participate with 13%, increased by 14.8% annual, or 4.3% quarterly. 17.00% 17.00% Source: NBRM REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA Indicators on thebanking system 16.50% 16.00% 3/2022 6/2022 9/2022 12/2022 3/2023

Macedonian Banking sector Deposits 1Q 2023 Deposits structure Deposits from households participate with 68%, increased by 8,79 % annual and 1,08% quarterly Nonfinancial corporations participate with 28%, increased by 5,39 % annual and (-6,02%) quarterly 600,000 500,000 400,000 300,000 Source: NBRM REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA Indicators on the banking system 200,000 100,000 - annual change (%) quarterly change (%) 3/2022 6/2022 9/2022 12/2022 3/2023 5.39% -6.02% non.fin.com 131,825 127,119 134,735 147,832 138,935 8.79% 1.08% households 305,135 311,774 317,586 328,436 331,967 7.79% -0.77% total 454,700 455,635 469,603 493,955 490,137 Household's annual8.79 % Weighted interest rates on received deposits 3/2022 6/2022 9/2022 12/2022 3/2023 Total deposits annual7.79 % INTEREST RATES ON TOTAL RECEIVED DEPOSITS (Denar and foreign currency) 0.70 0.67 0,70 0,86 1,11

Macedonian Banking sector Profitability indicators 1Q 2023 Return on average assets (ROAA) Return on average equity (ROAE) Cost-to-income 52.0% 50.4% 3/2023 3/2023 17.58% 2.23% 50.0% 48.0% 47.9% 12/2022 12.2% 47.8% 12/2022 1.46% 48.0% 9/2022 13.7% 9/2022 1.66% 46.0% 6/2022 14.3% 43.21% 6/2022 1.71% 44.0% 3/2022 14.0% 42.0% 3/2022 1.65% 40.0% 0.0% 5.0% 10.0% 15.0% 20.0% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 38.0% 03/2022 06/2022 09/2022 12/2022 3/2023 Banking sector has stabile rates of profitability measured by : Return on average asset (ROAA) 2.23%, increased by 0.58 pp annual, or 0.76 pp quarterly. Return on average equity (ROAE) 17.58%, increased by 3.62 pp annual or 5.34 pp quarterly 43.21% of total income cover operating costs of the Banks 70.39% of total incomeis net interest income Net interest income / total income 72.0% 70.39% Source: NBR REPORT ON RISKS IN THE BANKING SYSTEM OF THE REPUBLIC OF MACEDONIA, Indicators on the banking system 70.0% 68.0% annual change (pp) quarterly change (pp) 66.0% Profitability 64.0% 62.6% 62.6% 61.9% 0.58 0.76 Return on average assets (ROAA) 61.0% 62.0% 3.62 5.34 60.0% Return on average equity (ROAE) 58.0% -7.22 -4.59 Cost-to-income ratio 56.0% 3/2022 6/2022 9/2022 12/2022 3/2023 7.8 7.77 Net interest income / total income