Development Bank Quarterly Report (Form QRTLYRPT)

DOCUMENT OF THE EUROPEAN BANK

FOR RECONSTRUCTION AND DEVELOPMENT

INTERIM CONSOLIDATED FINANCIAL REPORT

At 31 March 2025

(UNAUDITED)

Table of contents

European Bank for Reconstruction and Development: Interim Financial Report at 31 March 2025

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Consolidated income statement

For the quarter ended 31 March 2025 (unaudited) and 31 March 2024 (unaudited)

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Consolidated statement of comprehensive income

For the quarter ended 31 March 2025 (unaudited) and 31 March 2024 (unaudited)

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Consolidated balance sheet

At 31 March 2025 (unaudited) and 31 December 2024 (audited)

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Consolidated statement of changes in equity

For the quarter ended 31 March 2025 (unaudited) and 31 March 2024 (unaudited)

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Consolidated statement of cash flows

For the period to 31 March 2025 (unaudited) and 31 March 2024 (unaudited)

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Explanatory notes

1. Establishment of the Bank

i Agreement Establishing the Bank

The European Bank for Reconstruction and Development ("the Bank"), whose principal office is located in London, is an international organisation formed under the Agreement Establishing the EBRD dated 29 May 1990 ("the Agreement"). At 31 March 2025, the Bank's shareholders comprised 75 countries, together with the European Union and the European Investment Bank.

ii Headquarters Agreement

The status, privileges and immunities of the Bank and persons connected with the Bank in the United Kingdom are defined in the Agreement and in the Headquarters Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Bank ("Headquarters Agreement"). The Headquarters Agreement was signed in London upon the commencement of the Bank's operations on 15 April 1991.

2. A summary of significant accounting policies

i Basis of preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through other comprehensive income, financial assets and financial liabilities held at fair value through profit or loss and all derivative contracts. In addition, financial assets and liabilities subject to amortised cost measurement which form part of a qualifying hedge relationship have been accounted for in accordance with hedge accounting rules.

ii Financial statements presentation

The financial statements are presented in a manner consistent with the Bank's audited financial statements for the year ended 31 December 2024.

The financial statements have been prepared on a going concern basis. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the period have been made, and the significant assumptions used in making accounting estimates are reasonable. The estimates made in these interim financial statements consider all known relevant and material information available at the time of their issuance as required by IFRS, and any contingent assets and liabilities have been disclosed in accordance with IFRS requirements. Management are not aware of any material deficiencies in either the design or operation of internal controls over financial reporting.

The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending 31 December 2025.

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3. Banking loan investments at amortised cost

At 31 March 2025 the Bank categorised 133 amortised cost loans as non-performing, with operating assets total €1,756 million (31 December 2024: 137 loans totalling €2,090 million). Specific impairment on these assets amounted to €897 million (31 December 2024: €969 million).

4. Banking loan investments at fair value through other comprehensive income

At 31 March 2025, the Bank categorised two fair value through other comprehensive income loan as non-performing, with operating assets total €136 million (31 December 2024: two loans totalling €136 million).

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5. Banking loan investments at fair value through profit or loss

At 31 March 2025, the Bank categorised seven fair value through profit or loss loans as non-performing, with operating assets total €102 million (31 December 2024: seven loans totalling €106 million). Net fair value losses on these assets amounted to €63 million (31 December 2024: €66 million).

6. Banking share investments at fair value through profit or loss

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7. Primary segment analysis

Business segments

The Bank's activities are primarily Banking and Treasury. Banking activities represent investments in projects that, in accordance with the Agreement, are made for the purpose of assisting the economies in which the Bank invests in their transition to open, market economies whilst fostering sustainable and inclusive growth and applying sound banking principles. The main investment products are loans, share investments and guarantees. Treasury activities include raising debt finance, investing surplus liquidity, managing the Bank's foreign exchange and interest rate risks and assisting clients in asset and liability management matters.

Information on the financial performance of Banking and Treasury operations is prepared regularly. On this basis, Banking and Treasury operations have been identified as the operating segments.

Segment performance

The segment information for the operating segments for the periods ended 31 March 2025 and 31 March 2024 is as follows:

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8. Fair value of financial assets and liabilities

Classification and fair value of financial assets and liabilities

Fair Value Estimation Techniques

The Bank's balance sheet approximates to fair value in all financial asset and liability categories, with the exception of loan investments at amortised cost.

The amortised cost instruments held within placements with and advances to credit institutions, other financial assets, amounts owed to credit institutions, and other financial liabilities are all deemed to have amortised cost values approximating their fair value, being primary simple, short-term instruments. They are classified as having Level 2 inputs (see fair value hierarchy, below) as the Bank's assessment of their fair value is based on the observable market valuation of similar assets and liabilities.

The fair value of amortised cost debt securities is determined using Level 2 inputs, employing valuation techniques appropriate to the market and industry of each investment. The primary valuation techniques used are quotes from brokerage services and discounted cash flows. Techniques used to support these valuations include industry valuation benchmarks and recent transaction prices.

Banking loan investments whereby the objective of the Bank's business model is to hold these investments to collect the contractual cash flow, and the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest, are recognised at amortised cost. The fair value of these loans was calculated using Level 3 inputs by discounting the cash flows at a year end interest rate applicable to each loan and further discounting the value by an internal measure of credit risk.

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Debts evidenced by certificates represents the Bank's borrowings raised through the issuance of commercial paper and bonds. The fair value of the Bank's issued bonds is determined using discounted cash flow models and therefore relies on Level 3 inputs. Due to the short-tenor nature of commercial paper, amortised cost approximates fair value. The fair value of the Bank's issued commercial paper is determined based on the observable market valuation of similar assets and liabilities and therefore relies on Level 2 inputs.

Fair value hierarchy

IFRS 13 specifies classification of fair values on the basis of a three-level hierarchy of valuation methodologies. The classifications are determined based on whether the inputs used in the measurement of fair values are observable or unobservable. These inputs have created the following fair value hierarchy:

The table below provides information at 31 March 2025 about the Bank's financial assets and financial liabilities measured at fair value. Financial assets and financial liabilities are classified in their entirety based on the lowest level input that is significant to the fair value measurement.

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The table below provides a reconciliation of the fair values of the Bank's level 3 financial assets and financial liabilities for the period ended 31 March 2025.

Level 3 - sensitivity analysis

The table below presents the level 3 financial instruments carried at fair value at 31 March 2025, the main valuation models/techniques used in the valuation of these financial instruments and the estimated increases or decreases in fair value based on reasonably possible alternative assumptions:

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The EBRD Shareholder Special Fund

The Rules of the EBRD Shareholder Special Fund require submission of the financial statements to the Board of Directors on a quarterly basis.

Statement of comprehensive income

For the quarter ended 31 March 2025 (unaudited) and 31 March 2024 (audited)

Balance Sheet

At 31 March 2025 (unaudited) and 31 December 2024 (audited)

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The EBRD Shareholder Special Fund

Statement of changes in contributors' resources

For the period ended 31 March 2025 (unaudited) and 31 March 2024 (audited)

Statement of cash flows

For the period to 31 March 2025 (unaudited) and 31 March 2024 (audited)

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The EBRD Shareholder Special Fund

Explanatory notes

The creation of the EBRD Shareholder Fund ("the Fund") was approved by the Board of Directors ("the Board") of the Bank on 15 April 2008 and is administered, inter alia, in accordance with the Agreement Establishing the Bank and under the terms of Rules and Regulations of the Fund. The Fund became operational after the Governors of the Bank adopted the 2007 Net Income Allocation Resolution during its Annual General Meeting on 18-19 May 2008.

The Fund was established in accordance with Article 18 of the Agreement Establishing the Bank. The Fund is not part of the ordinary capital resources of the Bank, but the privileges and immunities available to the Bank are extended to the Fund. The objective of the Fund is to broaden the scope and deepen the intensity of the Bank's transition impact in support of the Bank's key priorities.

These interim financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss. The financial statements have been prepared on a going concern basis.

The financial statements are presented in a manner consistent with the Fund's audited financial statements for the year ended 31 December 2024.

The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending 31 December 2025.

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This represents amounts for which the Fund has contracted but for which the transaction or service was not performed at the period end.

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