(ao TRASTBANK PRIVATE JOINT-STOCK BANK «TRUSTBANK» Consolidated financial statement for the year ended 31 December 2020 and Independent auditor's opinion (Translated from Russian language)ao cm ca ciycy oo USB eTrustbanks and ts subsidiary ‘Consolideted feancilsalement forthe year ondod 31 December 2020 Content Indopondent Auettors opinion Consolidated statement of fnancial postion Consolidated statement of profit and loss and other comprehensive income Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements 1 Primary activity 2 The economic environment in which the Group operates 3 Principles of reporting 4 Important assessment and professional judgement 5. Transition to new or revised standards and interpretations 6 Key principlas of accounting poticy 7 Cash and cash equivalents 8 Mandatory reserve in CBU 9 Due from other banks 10° Loans and advances to customers 11 Investment financial assets 12. Investments in an associate 13. Fixed assets and intangible assets 14 Other assets 18 Dusto other banks 16 Customer deposits 17 Other borrowings 18 Olver labilties 19° Share copital 20 Interest income and expense 21. Fees and commission received and paid 22 Other operating income 23 Administrative and other operating expenses 24 Income tax 25. Eamings per share 26 Contingent financial abilities 27 Related party transactions 28 Fair value 29° Capital management 30. Risk management 34 Segment information Pages " 12 “4 16 16 7 a7 40 50 Qsaeres 58 59 6 1 61 Bases cy Cy 73 74 85e GrantThornton An instinct for growth ‘AO 000 «Grant Thornton» Pecnyenuka Yaderucray, 100128, Tauxerr, yn. Aan, 1A Ten: +998 71) 230-4543 ‘anc: +998 (71) 244-4749 “Grant Thornton” AO LLC 1A Abay Sir, Tashkent, 100128, Republic of Uzbekistan Tol: +098 (71) 230-45.43, Fax: +998 (71) 24-47-43, W. wn grantthomnton.uz Independent Auditor’s opinion ‘To shareholders and the Supervisory Board of PJSB «Trustbank» Opinion ‘We have audited the consolidated financial statements of Private Joint-Stock Bank "Trustbank" (hereinafter referred to as the “Bank”) and its subsidiary (hereinafter collectively referred to as the “Group”, which consist of the consolidated statement of financial position as at 31 December 2020 and the consolidated statement of profit and loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year ended on that date and the notes to the consolidated financial statements, including a summary of key accounting policies. In our opinion, the accompanying consolidated financial statements present fairly in all material respects the financial position of the Group as at 31 December 2020, as well as its financial results and cash flows for the year ended on that date, in accordance with International Financial Reporting Standards (IFRS). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities in accordance with these standards are described further in the section " Auditor's responsibility for auditing consolidated financial statements" of our opinion. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the schedille in the Code of Ethics of Professional ‘Accountants of the International Ethics Standards Board for Accountants (PATESB Code) and ethical requirements applicable to our audit of the financial statements in the Republic of Uzbekistan, and we have fulfilled our ethical responsibilities in accordance with these requitements, We belicve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Member of Grant Thornton InternationalEC aa 1 a 9 ome = 3 om 0 0 q l I I I 2 GrantThornton An instinct for growth” Key audit matters Key audit matters are matters that, in our professional judgment, were the most significant for our audit of the financial statements for the current period, These issues were considered in the context of our audit of the financial statements as a whole and in the formation of our opinion on these statements, and we do not express a separate opinion on these issues. Key audit matters What audit procedures were performed regarding the key audit matter Provision for credit losses on loans to customers, as well as on credit related commitments Due to the matetiality of the provision for impairment of loans and advances to customers and credit related liabilities forthe financial position of the Group, as well as due to the complexity and necessity to apply judgments in estimating expected credit losses in accordance with the new IFRS 9 Financial Instruments This issue is one of the key audit questions. Itis necessary to apply judgment to determine 2 significant increase of exedit risk from the date of initial recognition, both on an individual and on & portfolio bass, as well as for the caleulation of expected credit losses. The assessment of the increase in credit risk is based on the zelative change in credit ratings, the duration of overdue debts and other objective and subjective factors. The choice Of thresholds at which an increase of credit tisk is recognized as significant, such as the magnitude of deterioration in a credit rating, is also subjective. ‘The calculation of expected credit losses includes valuation techniques that use significant unobservable input data and factors, such as intemal credit ratings, a well as comprehensive statistical modeling and expert jadgment. ‘These methods are used to determine the probability of efaalt based on available historical data and. external information. To calculate expected credit losses in respect of significant financial assets tat have been individually impacted by a credit impaiment, itis requited to analyze financial and non-financial information, and extensive use of assumptions. Estimation of fature cash flows is based on such ‘material unobservable baseline data as the borrower's curréat and projected financial indicators, the value ofthe collateral and an estimate of the likelihood of possible scenatios. The use of other modeling teciniques, assumptions and forecasts can lead to significantly different estimates, of the provision for expected credit losses. In the process of our audit, we paid special attention to the following: assessment of credit ‘isk models and assumptions used to determine key parameters for provisioning and expected ‘credit losses on a portfolio; assessment of management's judgments regarding the identification of a significant increase of credit tisk on both of an individual and portfolio basis, using quantitative and qualitative ctitcria; testing of expected future cash flows, including cash lows from collateral, in respect of significant loans and advances to customers and credit related commitments. One audit procedares included an assessment of ‘the methodology for calculation of expected credit losses developed by the Group in ‘accordance with IERS 9, for estimation of provision for impairment of loans and advances to customers, 5 well as ctedit related ‘commitments. We evaluated the rationality of the ‘credit tisk factors and the thtesholds chosen by ‘management to determine a significant increase in credit tisk on both of an individual and portfolio ‘basis. We assessed the sequence of application of the criteria selected by management at the reporting date ‘When testing the impairment calculated on a portfolio basis, we analyzed the underlying statistical models, key input data and assumptions, 2s well s forward-looking information used to calculate expected credit Josses. For selected significant loans, we conducted an audit of internal credit ratings, ctedit rsk factors and classification by stages. In collaboration with valuation specialists, we ‘analyzed assumptions about future cash Blows for selected matetial corporate loans, including the value of the collateral and the likelihood of possible scenarios. We reviewed the results of a ‘Group that was subsequently tested on the models used for IFRS 9.ouock m= ono Os a ao MS oc m o = a » GrantThornton An instinct for growth Information on the provision for expected credit losses in respect of loans and advances to customers, as well as credit related commitments presented in Notes 10, 18 and 30 to the consolidated financial statements. Valuation of loans and advances to customers at fair value theough profit or loss ‘We focused on this issue in connection with the ‘During oar audit, we paid special attention to the materiality of the amount and the subjective nature assessment of the key methodologies, formulas of the valuation of loans and advances to and source of information sed by the Group for customers, measured a: fair vale through profic or the astessment, fr cheir compliance with IFRS. ee ‘We tested modes for evaluating our selected ‘The fie value ofthese loans is estimated using _—_—loans. Our work included an assesament of complex valuation models that use data that are not whether the models and the data used ate ‘observable on the market, including data that reflect acceptable, the repetition of individual the credit quality of customers, interest rate curves, calculations, as well as vasious analytical and and volatility. other procedures. Note 10 and 30 to the consolidated financial statements provide detailed information about the ‘measurement of loans and advances to customers at fair value through profit of loss. Other information “Management is responsible for other information, Other information incindes information contained in the annual report, but does not include the consolidated financial statements and out audit report about it. (Our view of the financial statements does not apply to other information, and we will not provide conclusion with assurance of any form regarding this information, Ina view of conducting our audit of the finencial statements, out responsibilty is to review other information and consider whether there arc significant discrepancies between other information and the financial statements or our knowledge gained dasing the audit and whether other information contains other significent distortion. Lf, based on the work we have catried out, we conclude that other information contains a matesial misstatement, we must report this fact, . Responsibility of the Management and Those Changed with Corporate Governance for the Consolidated Financial Statements “Management is responsible for the preparation and fais presentation of consolidated financial statements in accordance with IFRS and for such internal control system as management determines is necessary to enable the preparation of the consolidated financial statements that is free from material misstatements, due to fraud ot errors. In preparing the consolidated financial statements, management is responsible for assessing the ability of the Group to continue as a going concem, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group o: to cease operations, or has no scalisti alternative but to do so. "The management and those charged with governance ate responsible for oversecing the preparation of the consolidated financial statements of the Group,co a ca cic I oO eee ec ce cI masala mo ® GrantThornton An instinct for growth” Auditor's responsibility for auditing consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to fraud or error, and to issuc an auditor's report that includes our opinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect @ matetial misstatement when it exists. Misstatements can atise from fraud or error and are considered material if, individually ot on the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these, consolidated financial statements. ‘As past of an audit conducted in accotdance with International Standards on Auditing, we apply professional judgment to retain professional skepticism throughout the audit. In addition, we perform the following: © identify and assess the risks of material misstatement of consolidated financial statements due to fraud ot extor; develop and conduct audit procedures in response to these risks; we obtain audit evidence that is sufficient and appropsiate to serve as a basis for expressing our opinion. The tisk of non-detection of ‘material as a result of unfair acts is higher than the tisk of not detecting a significant distortion as a result of an error, since unfair acts may include conspiracy, fraud, intentional omission, mistepresentation of information or actions bypassing the internal control systema; © get an understanding of the internal control system that is selevant to the audit, in otder to develop audit procedures that are appropriate for the circumstances, but aot for the purpose of expressing an opinion ‘on the effectiveness of the Group's internal control system ‘¢ assess the proper nature of the accounting policies applied and the teasonableness of accounting «estimates and the corresponding disclosure of information prepared by management; ‘* make a conclusion about the legitimacy of management's use of the assumption of business continuity, ‘and on the basis of the obtained audit evidence - the conclusion whether there is «significant “uncertainty in connection with events or conditions that may raise significant doubts in the ability of the ‘Group to continue its business continuously, If we conclude that there i significant uncertainty, we ‘must draw attention to our disclosure in the consolidated financial statements, of, if such disclosure is inappropriate, modify out opinion. Our conclusions are based on the audit evidence received before the date of our audit repost, Howeves, fature events or conditions may lead to the Group losing the ability to continue its business continuously, ‘assess the presentation of the consolidated financial statements in genera, its stractare and content, inclading disclosure of information, as well as whether the consolidated financial statements present the ‘underlying operations and events in a manner that ensures their reliable representation; ‘obtain sufficient appropriate audit evidence relating to the financial information of the orgenization or activities within the Group in order to express an opinion on the consolidated financial statements. We are responsible for the management, control and conduct of the Group's andit. We remain fally responsible for out audit opinion. ‘We collaborate with persons responsible for corporate governance, inchading, among other things, information on the planned scope and! timing of the aucit, as well as significant comments on the andit results, including significant deficiencies in the internal control system that we identify in the course of the audit. We also provide the Management and those responsible for corporate govesnance with a statement that we 1have complied with all relevant ethical requirements regarding independence and informed these individeals about al relationships and other iseues that can reasonably be considered to affect the independence of the auditor. And if itis reqeited - on appropriate precautions.2 Grant Thornton An instinct for growth’ From those questions that we brought fo the attention of the Management and to those responsible for corporate governance, we identify issues that were most essential to the audit of the consolidated financial statements for the current period and, therefore, are considered as key audit issues. We describe these issues in our audit report, except when public disclosure of information on these matters is prohibited by law ot ‘regulation. In extremely rare cases, we conclude that information on any matter should not be ‘communicated in our report, since it can be reasonably assumed that the negative consequences of ‘communicating such information will exceed the socially significant benefits. Shoodil Nosirov Partner Qualification centficate of the auditor for conducting bank audits No, 13/1 dated 24 July 2017, issued by the Central Bank of the Republic of Uzbekistan. Mo, fgneet Vherucben bed C 26 March 2020 ‘Tashkent, UzbekistanPSB «Trustbanks and its subsidiary Notes tothe Consolsated finance! statement forth year ended 31 December 2020 Consolidated statement of financial position 6 (in thousands UZS) 34 December 34 December pees) 2020 2019 Assets Cash and cash equivalents i 1 2730800081 008 205 560 Mandatory reserves in CBU 8 142 993 242 87 746 644 ‘Due from other banks 8 69 530 356 30 544 003, Loans and aavances to customers 10 2320784322 © 1797215358 Investment franca’ assets 1 645 649.435, 288 544 592 westmenis in an associate @ 94 248 147 26 603 788 Income tax advances payments - 1651 680 Deterred tax asset 24 9.040 903 4-839 895 Fhoed assets and intangible assets 3 211 839.070 154 122.695 Othe: assets 4 45 547 139, 41 250 588 Total assets 4703730695 3326616813 Labitties ‘Due to other banks, 8 190770773 72367 728 Customer deposits 6 3634546215 2671 929634 (ther borrowings 7 2 070 447 75 048 892 Other abies 6 25 624.400 22047 137 Total labiities seas oz0aee 2844 303.391 Equity ‘Share capital 0 361 961 733 228 961 733 ‘Share premium 1B 442022 059 73 864 358 Retained eamings and funds 256 726 069, 184.595 331, Total equity 760 709 864 495 421 422 ‘otal abilities and equity 4703730695 3326 814813 26 March 2020 ‘Toe oes om pages fom 1110 88 area ital part of heen iran ater‘PSB aTrustbanks and its subsidiary 7 Notes tothe Canselted facial statement for the year ended 31 December 2020 {in thousands UzS) Consolidated statement of profit and loss and other comprehensive income Fortho yoar For the year ended Notes fended 31 econ teas! “31 December 2019 Interestincome calculate atthe efectve interest rate 2 471 380 069, 313 592 928 (ther intrest income 20 69235 774 ‘31008 711 Interest expense calculated atthe effective interest rate 20 ers74 727) (62.680 738) ther intrest expenses 20 (@.078 507) (472 044) Not interest income 1464 532 609 288-445 898 Provision for credit losses on debi fancal assets 79,10 (63.810 943) (12595 055) Net income / (expense fem intial recognition of financial instruments and loan modifications tot epee ee) 18 081 2) [Not intorest income aftor provision for ered losses 397 919 244 256 768 744 ee and commission income a 137 937 480 119 400515 Commission expenses. a (18302 201), (45018 743) "Net income / (expenses) from operations in foreign curenoy ‘2nd trom revaluation o foreign currency pzeets ia aos 620) ‘The shave of the financial result of the associate 2 18.028 676 14.601 300 Recovery (creation) of a provision for credit losses on creat ayes (pation) 18 (4707 958) (1.073.600), PProvsion for other assets “ 12712) (196 518) ‘Other operating income 2 1.074 008 8.973221 ‘Acgrinistative and olher operating expenses: 23 (199.038 761) (160 226 286) Income betore tax ‘357 648 608 230 675 282 Income tax expense 24 56 942 938) (45 784 256) Net income forthe year 300 602 268 184 791 037 Other comprohonsive incom: Securities cased as measured at fair vale through other ‘comprehensive income - equ insiuments riz oop) 585/123) Income tx relating to components of comprehensive income. 22412 73.625 Total other comprehensive income (loss) 189.648) (294 800) “Total comprehensive income for the year 300 612 622, 184 496 537 Approved and signed on behalf of the management of the Group: The woes on page from 15 88 ae on intra prt of the comida fineniel aemonteISB eTrustbanks and ts sudsciary Netes tothe Consoetedfnencia statement er the year ended 31 December 2020 (in thousands U28) Consolidated statement of changes in equity Retained share coptal STH garings and Teal egy » funds Balance as at {January 2019 ter 9e1709 4s so7915 98315810307 275.458, Net near forthe year : = 184791057 104701 057 Other comprehensive neome z = (204500) (204 500) Total comprehonsive income forthe year : 186496537 184496 537 Increase in equty 5000000 25 868.443 91966443 Dh seloed on ordinary shares z > 8219151) (8219151) Didends declared on preter shares = 2 6.450) (450) Return of unpatd ividende Z : 5505, 5585 Balance as at 31 December 2019 was 9e1739 79064368 _—tensosaa1 485424 472, Net near forthe year : = 300602268 300602 268 Other campechensive Income : : (69646) (09.45) Total comprehensive income forthe year é son 512622 300 512672 Increase inequity 195000000 68187 701 = 203157701 Diiends detored on onary shares 7 + 28380178) 228380 178) Dhicends declared on pofered shares : 0.450) 8450, Retum of unpaid idends z b 17 738 Balance a at 31 December 2020 361961793 42022059 258726059 760709851 Approved and signed on behalf ofthe management ofthe Group: ». “Te notes om pages from 11 88 ara inal part of thse ems anil statements2IO oO eee oa 3 c USB aTrustbanko and tis subsiiany ‘Notes tothe Consaidated financial statement foro year ended 31 December 2020 Consolidated statement of cash flows 8 (in thousands UZS) Fortheyearended For the oar ondod ‘31 December 2020 __31 December 2018 Cash flow from operating activities Interest received 512.608 481 298 402 200 Interest paid (73308211) (63 162 963) Fee and Corrission rocoived 195 620 560 +119 066 805 Commissions paid (19 763 996) (18.229 445) Net Inoame from operations in foreign currency (62955 476) (10 863 650) ther operating income 1.974 004 6.373.221 Stattcosts (119789 208) (@9 126.216) Adinisraive and other operating expenses (67423 189) sors 1come tax paid (67427 510) (62.908 222) en nantes 248 873 328 165 521 208 et gncrease) / decrease n operating assets Mandatory recervos in CBU 44763 402 12.60370 Dus from otter barks (29905 253) 6519031 Loans and advances to customers : (623.568 964) (478447 760) Other assots (6296 551) (10.088 260) et increase /(decrease) in operating bites us to ether banks. 110-405 046 45245 471 (Customer deposts 962.616 281 928 757 781 OtberHabtes arr 272 15653 787 Net cash flow trom operating activities 16362 760 ‘81021 008 Cash flow from investing activities Investment secures purchased (@29731 832) (227 128 706) Investment secures repaid 466-780 000, +130 907 853 Investment in an associate 41 700 000) : ‘Acquistion of fired assets and Inangibe assets (75383 228) (60 699 289) Revenue ttm sale of fixed assets ex 722 414.492 ‘Net cash flow tram investing activities (489 362 436) (146 449 654) "Te noes pg fro 110 88a a inal pat of thes ensldatedfornielUaemntISB eTrustbanks andits subsidiary 10 Notes fo the Conzolidated franca statement for the year ended 31 December 2020, (n thousands UZS) Consolidated statement of cash flows (Continue) Forthe year ended For the year ended ‘34Docombor 202031 Dacember 2018 ‘Cash flow from financing activites ‘Debt secures repald : (477 185) (Other borrowings recelved 00 000 39.021 544 (Other borrowings repaid (000 000), (18.937 000) Dividends paid (25228 927) (6352 708) ‘Not eas flow from financing activities (29725 927) 16 254 651 Theft changer necange rts on can ed een a aoeasal fesecz Pe "Net change In cash and cash equivalonts 367 456 936 (6 130 936), Cash and cash equivalents atthe beginning ofthe reporting year 906 659 645 992 790 581 ‘Gash and cash equivalents atthe end ofthe reporting year 1274116 681 906 659 645, For the value of cash and cash equivalents at the end of the period less the provision for expected credit, losses see Note 7. “Approved and signed on behalf of the management of the Group; “Te notes om pages from 1110 88 ara itera pat ofthese costed anil ttoments,